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)	(F) Estimated amount of other compensation from the organization and related organizations
(1) TAYLOR TODD Chairman	10.00	X	X		0	0	0
(2) SAYEG THOMAS Vice Chairman	10.00	X	X		9,000	0	0
(3) WOODARD-KOZIMOR CAROL Director	5.00	X			14,455	0	0
(4) SCHUETTE DAN Director	5.00	X			15,000	0	0
(5) DEMPSEY DENNIS Director	5.00	X			0	0	0
(6) HOGGARD-GREEN JILL Director	5.00	X			0	0	0
(7) DOWNER DOUG Director	5.00	X			9,400	0	0
(8) HAKALA ROBERT MD Director	5.00	X			9,000	0	0
(9) COOK JOSH MD Director	5.00	X			18,288	0	0
(10) BUEHLER KNUTE MD Director	5.00	X			14,727	0	0
(11) MILLER LAURI Director	5.00	X			19,227	0	0
(12) GOULD ROBERT Director	5.00	X			0	0	0
(13) HAASE MEGAN Director	5.00	X			0	0	0
(14) DIEGEL JAMES A President/CEO	50.00	X	X		1,043,543	0	127,058
(15) SHEPARD KAREN M Sr. VP Finance/CFO	50		X		415,563		68,621
(16) BRYANT RON Corporate Secretary	50		X
(17) BOILEAU MICHEL MD EVP/CCO	50			X	298,071		44,796

(A) Name and business address	(B) Description of services	(C) Compensation
CASCADE MEDICAL IMAGING 1460 NE MEDICAL CENTER DR BEND,OR97701	Rent and MRI Services	14,088,801
SOUTH SOUND INPATIENT PHYSICIANS 2500 NE NEFF BEND,OR97701	Medical Services	2,275,662
PATHOLOGY ASSOCIATES MEDICAL LABORATORIE 110 WEST CLIFF AVENUE SPOKANE,WA99204	Medical Services	1,621,188
CENTRAL OREGON RADIATION ONCOLOGY 2500 NE NEFF RD BEND,OR97701	Physician Fees	1,817,707
CENTRAL OREGON MRI PO BOX 6059 BEND,OR97708	MRI services	3,253,906
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 85

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	270,550	270,550
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	4,440,576	0	4,440,576	0
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	312,551	0	312,551	0
7	Other salaries and wages	185,465,921	154,127,813	31,026,523	311,585
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	6,545,912	5,464,472	1,070,614	10,826
9	Other employee benefits .......	37,835,208	30,227,738	7,536,560	70,910
10	Payroll taxes ...........	14,180,181	11,572,368	2,582,592	25,221
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	553,421	6,141	547,280	0
c	Accounting ...........	298,548	0	298,548	0
d	Lobbying ...........
e	Professional fundraising. See Part IV, line 17..
f	Investment management fees ......	102,122	0	102,122	0
g	Other ..........	51,517,740	38,904,102	12,613,316	322
12	Advertising and promotion ....	1,647,191	292,578	1,352,667	1,946
13	Office expenses .......	60,144,312	54,036,712	6,094,080	13,520
14	Information technology ......	7,344,820	995,288	6,335,388	14,144
15	Royalties ..
16	Occupancy ...........	4,971,090	2,069,599	2,841,225	60,266
17	Travel ............	753,826	518,047	232,145	3,634
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	1,023,855	594,737	428,277	841
20	Interest ...........	12,850,126	0	12,850,126	0
21	Payments to affiliates .......	801,909	152,481	648,588	840
22	Depreciation, depletion, and amortization .....	31,886,517	29,226,886	2,659,631	0
23	Insurance ..............	3,237,975	2,514,006	723,969	0
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	Bad Debt Expense	26,522,319	26,442,895	79,424	0
b	Provider Tax	11,921,788	0	11,921,788	0
c	Medical Supplies	41,448,132	41,419,477	28,655	0
d
e
f	All other expenses
25	Total functional expenses. Add lines 1 through 24f	506,076,590	398,835,890	106,726,645	514,055
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 ..........	19,822,497	1	15,875,657
2	Savings and temporary cash investments .......	4,758,357	2	4,610,804
3	Pledges and grants receivable, net .........		3
4	Accounts receivable, net .........	72,100,637	4	79,729,146
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	298,787	5	110,555
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........		6
7	Notes and loans receivable, net .............		7	527,100
8	Inventories for sale or use ..............	5,106,768	8	9,365,196
9	Prepaid expenses and deferred charges ............	4,880,446	9	6,558,755
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	459,016,775
b	Less: accumulated depreciation. .....	10b	235,959,881	238,475,301	10c	223,056,894
11	Investments—publicly traded securities ..........	171,323,519	11	182,948,685
12	Investments—other securities. See Part IV, line 11 ......	22,148,805	12	21,561,720
13	Investments—program-related. See Part IV, line 11 ..	4,828,960	13	5,961,777
14	Intangible assets .........	5,169,841	14	5,146,091
15	Other assets. See Part IV, line 11 ...........		15
16	Total assets. Add lines 1 through 15 (must equal line 34)...	548,913,918	16	555,452,380
	17	Accounts payable and accrued expenses .	42,592,455	17	46,375,198
18	Grants payable ..........		18
19	Deferred revenue ..........	987,327	19	1,108,036
20	Tax-exempt bond liabilities ..........	162,177,079	20	159,908,129
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 ..	26,635,278	23	20,126,839
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.....	7,211,441	25	9,844,182
26	Total liabilities. Add lines 17 through 25.....	239,603,580	26	237,362,384
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	309,310,338	27	318,089,996
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 .....	309,310,338	33	318,089,996
34	Total liabilities and net assets/fund balances .....	548,913,918	34	555,452,380

- 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

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Other

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

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

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

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

Yes

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

11g(i)

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

11g(ii)

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

11g(iii)

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

Page 2

Part II

Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi)
(Complete only if you checked the box on line 5, 7, or 8 of Part I or if the organization failed to qualify under Part III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(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.	0

Section B. Total Support

Calendar year(or fiscal year beginning in)		(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..	0
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)) .........

0 %

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)		(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.)	0

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)) .........

0 %

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)) ......

0 %

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:	11000175
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

OMB No. 1545-0047

2011

Name of organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

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

Special Rules

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

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

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

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

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

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

Page 2

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

Page 3

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

Page 4

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

Name of organization
ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Part III

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

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

(a) No.
from
Part I

(b)
Purpose of gift

(d)
Description of how gift is held

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

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

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE 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

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

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
1a	Beginning of year balance ....	3,134,189	2,769,989	1,164,120
b	Contributions ........		91,464	1,574,539
c	Net investment earnings, gains, and losses ...	-49,509	307,398	113,584
d	Grants or scholarships .....	19,250	21,613	82,254
e	Other expenditures for facilities and programs ........	59,790
f	Administrative expenses ....	15,472	13,049
g	End of year balance ......	2,990,168	3,134,189	2,769,989

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

100.000 %

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)

Yes

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

3a(ii)

Yes

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

Yes

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

Part VI

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

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	4,731,212		4,731,212
b	Buildings ................	207,897,058	69,469,784	138,427,274
c	Leasehold improvements ............	942,222	441,095	501,127
d	Equipment ................	228,616,128	159,762,256	68,853,872
e	Other .................	16,830,155	6,286,746	10,543,409
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				223,056,894

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
Prof Liab Insurance		4,342,242
Cost report settlement estimated liabilities		4,448,921
Deferred Retirement & Executive Comp		348,562
Lease Liability		704,457
Liabilities related to collection of debt




Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		9,844,182
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
Pt V Line 4		ENDOWMENT FUNDS ARE REPORTED IN THIS SECTION BECAUSE THEY ARE HELD BY ST. CHARLES FOUNDATION, INC., A RELATED ENTITY OF SCHS. PERMANENTLY RESTRICTED ENDOWMENT FUNDS ARE PRIMARILY TO BE USED FOR CONTINUING EDUCATION SCHOLARSHIPS FOR CAREGIVERS AND THE PROFESSIONAL MEDICAL COMMUNITY, SUPPORT OF SCHS' COMMUNITY BENEFIT PROGRAMS, AND IN THE AREA OF GREATEST NEED. THE FLOYD DEMENT HOSPITAL TRUST FUND TESTAMENTARY TRUST IS ADMINISTERED BY THE UNION BANK OF CALIFORNIA UNDER A TRUST AGREEMENT WHICH PROV
Pt V Line 4		to the Foundation for charity care to be provided to SCMC-Bend.
Pt X		THE AUDITED FINANCIAL STATEMENTS CONTAIN THE FOLLOWING FOOTNOTE: THE CORPORATION HAS RECEIVED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE STATING THAT IT IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE EXCEPT FOR TAX ON UNRELATED BUSINESS INCOME. IT IS MANAGEMENT'S BELIEF THAT NONE OF ITS ACTIVITIES HAVE PRODUCED MATERIAL UNRELATED BUSINESS INCOME, AND THAT SCHS HAS OPERATED IN A MANNER THAT QUALIFIES IT FOR TAX-EXEMPT STATUS. ACCOUNTING PRINCI
Pt V Line 1g		THE TOTALS IN COLUMNS (A) AND (B) DO NOT MATCH THE TOTALS ON PART X LINE 29. THE AMOUNTS REPORTED IN SCHEDULE D PART V ARE ASSETS HELD BY A RELATED ORGANIZATION, ST. CHARLES FOUNDATION (SCF). THE ENDOWMENT FUNDS ARE REPORTED ON ST. CHARLES FOUNDATION INC.'S 990 ON PART X. THEY ARE NOT INCLUDED IN PART X OF THIS 990 BECAUSE, ALTHOUGH THE FOUNDATION IS A SEPARATE LEGAL ENTITY, IT IS INCLUDED IN THE CONSOLIDATED STATEMENTS OF SCHS BASED ON THE FACT THAT THE CORPORATION IS THE SOLE MEMBER OF THE FOU

Schedule D (Form 990) 2011

Additional Data

Software ID:	11000175
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Part I

Charity Care and Certain Other Community Benefits at Cost

Yes

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

Yes

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

Yes

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

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

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

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

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

Yes

100% 150% 200% Other

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

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

Yes

200% 250% 300% 350% 400% Other

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

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

Yes

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

Yes

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

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

	(b) Persons served (optional)	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Financial Assistance at cost (from Worksheet 1) ..	12,848	26,400,462		26,400,462	5.510 %
b Medicaid (from Worksheet 3, column a) .....	55,005	88,187,418	47,928,003	40,259,415	8.400 %
c Costs of other means-tested government programs (from Worksheet 3, column b) .
dTotal Financial Assistance and Means-Tested Government Programs .....	67,853	114,587,880	47,928,003	66,659,877	13.910 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	13,108	727,078	400	726,678	0.150 %
f Health professions education (from Worksheet 5) ..		963,127	281,236	681,891	0.140 %
g Subsidized health services (from Worksheet 6) ..
h Research (from Worksheet 7)
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....		1,713,022		1,713,022	0.360 %
jTotal Other Benefits ...	13,108	3,403,227	281,636	3,121,591	0.650 %
kTotal. Add lines 7d and 7j. ..	80,961	117,991,107	48,209,639	69,781,468	14.560 %

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

Schedule H (Form 990) 2011

Page

Part II

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

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing	6,670	6,670	0 %
2	Economic development	3,150	3,150	0 %
3	Community support
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy	16,106	16,106	0 %
8	Workforce development	58,606	58,606	0.010 %
9	Other
10	Total	84,532	84,532	0.010 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

13,022,459

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

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

Section B. Medicare

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

104,796,598

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

134,553,125

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

-29,756,527

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

Management Companies and Joint Ventures

(see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership%	(e) Physicians' profit % or stock ownership %
1CASCADE MEDICAL IMAGING LLC	Diagnostic Imaging	70.000 %		30.000 %
2CENTRAL OREGON MAGNETIC RESONANCE IMAGING	Magnetic Resonance Imaging	33.000 %		67.000 %
3HEART CENTER OF THE CASCADES LLC	Owns & manages a medical building	50.000 %		50.000 %
4CASCADE SURGICENTER LLC	Outpatient surgery	50.000 %	2.175 %	50.000 %
5INSTITUTE OF THE CASCADES LLC	Administration & Marketing	50.000 %		50.000 %
6CASCADE MEDICAL BUILDINGS LLC	Owns & manages a medical building	50.000 %	3.450 %	50.000 %
7CASCADE PROPERTY HOLDINGS LLC	Owns bare land for investment	50.000 %	2.705 %	50.000 %
8SEE PART VI
9
10
11
12
13

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?3 Name and address		Other (Describe)
1	ST CHARLES MEDICAL CENTER BEND 2500 NE NEFF RD BEND,OR97701	X	X		X
2	ST CHARLES MEDICAL CENTER REDMOND 1253 NW CANAL BLVD REDMOND,OR97756	X	X		X
3	PIONEER MEMORIAL HOSPITAL 1201 NE ELM ST PRINEVILLE,OR97754	X	X	X	X

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

ST CHARLES MEDICAL CENTER BEND

Name of Hospital Facility:

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 100% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 300% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

ST CHARLES MEDICAL CENTER REDMOND

Name of Hospital Facility:

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

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 100% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 300% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices.

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

PIONEER MEMORIAL HOSPITAL

Name of Hospital Facility:

Line Number of Hospital Facility (from Schedule H, Part V, Section A):3

				Yes	No
Community Health Needs Assessment (Lines 1 through 7 are optional for 2011)
1	During the tax year or any prior tax year, did the hospital facility conduct a community health needs assessment (“Needs Assessment”)? If “No,” skip to question 8. .....................		1
	If “Yes,” indicate what the Needs Assessment describes (check all that apply):
	a	A definition of the community served by the hospital facility
	b	Demographics of the community
	c	Existing health care facilities and resources within the community that are available to respond to the health needs of the community
	d	How data was obtained
	e	The health needs of the community
	f	Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups
	g	The process for identifying and prioritizing community health needs and services to meet the community health needs
	h	The process for consulting with persons representing the community’s interests
	i	Information gaps that limit the hospital facility’s ability to assess the community’s health needs
	j	Other (describe in Part VI)
2	Indicate the tax year the hospital facility last conducted a Needs Assessment: 20
3	In conducting its most recent Needs Assessment, did the hospital facility take into account input from persons who represent the community served by the hospital facility? If “Yes,” describe in Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted.		3
4	Was the hospital facility’s Needs Assessment conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI............................		4
5	Did the hospital facility make its Needs Assessment widely available to the public? ...........		5
	If “Yes,” indicate how the Needs Assessment was made widely available (check all that apply):
	a	Hospital facility’s website
	b	Available upon request from the hospital facility
	c	Other (describe in Part VI)
6	If the hospital facility addressed needs identified in its most recently conducted Needs Assessment, indicate how (check all that apply):
	a	Adoption of an implementation strategy to address the health needs of the hospital facility’s community
	b	Execution of the implementation strategy
	c	Participation in the development of a community-wide community benefit plan
	d	Participation in the execution of a community-wide community benefit plan
	e	Inclusion of a community benefit section in operational plans
	f	Adoption of a budget for provision of services that address the needs identified in the Needs Assessment
	g	Prioritization of health needs in the community
	h	Prioritization of services that the hospital facility will undertake to meet health needs in its community
	i	Other (describe in Part VI)
7	Did the hospital facility address all of the needs identified in its most recently conducted Needs Assessment? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs. ....		7
Financial Assistance Policy
	Did the hospital facility have in place during the tax year a written financial assistance policy that:
8	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?		8	Yes
9	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........		9	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 100% If "No," explain in Part VI the criteria the hospital facility used.

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

				Yes	No
10	Used FPG to determine eligibility for providing discounted care?.................		10	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 300% If "No," explain in Part VI the criteria the hospital facility used.
11	Explained the basis for calculating amounts charged to patients?.................		11	Yes
	If “Yes,” indicate the factors used in determining such amounts (check all that apply):
	a	Income level
	b	Asset level
	c	Medical indigency
	d	Insurance status
	e	Uninsured discount
	f	Medicaid/Medicare
	g	State regulation
	h	Other (describe in Part VI)
12	Explained the method for applying for financial assistance?...................		12	Yes
13	Included measures to publicize the policy within the community served by the hospital facility?.......		13	Yes
	If “Yes,” indicate how the hospital facility publicized the policy (check all that apply):
	a	The policy was posted on the hospital facility’s web site
	b	The policy was attached to all billing invoices
	c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
	d	The policy was posted in the hospital facility’s admissions offices
	e	The policy was provided, in writing, to patients upon admission to the hospital facility
	f	The policy was available upon request
	g	Other (describe in Part VI)
Billing and Collections
14	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......		14	Yes
15	Check all of the following collection actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
16	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the patient’s eligibility under the facility’s FAP?..........		16		No
	If “Yes,” check all actions in which the hospital facility or a third party engaged:
	a	Reporting to credit agency
	b	Lawsuits
	c	Liens on residences
	d	Body attachments
	e	Other similar actions (describe in Part VI)
17	Indicate which efforts the hospital facility made before initiating any of the actions checked in line 16 (check all that apply):
	a	Notified patients of the financial assistance policy upon admission
	b	Notified patients of the financial assistance policy prior to discharge
	c	Notified patients of the financial assistance policy in communications with the patients regarding the patients’ bills
	d	Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy
	e	Other (describe in Part VI)

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information (continued)

Section C. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?23
Name and address		Type of Facility (describe)
1	CASCADE MEDICAL IMAGING 1460 NE MEDICAL CENTER DR BEND,OR97701	Diagnostic Imaging Clinic
2	ST CHARLES CANCER CENTER - BEND 2100 NE WYATT CT BEND,OR97701	Outpatient Cancer Center
3	ST CHARLES CANCER CENTER - REDMOND 1541 N CANAL BLVD STE 103 REDMOND,OR97756	Outpatient Cancer Center
4	CASCADE SURGICENTER 2200 NE NEFF RD 100 BEND,OR97701	Surgery Center
5	ST CHARLES FAMILY CARE - REDMOND 211 NW LARCH AVE REDMOND,OR97756	Primary Care Clinic
6	SAGE VIEW PSYCHIATRIC CENTER 1885 NE PURCELL BLVD BEND,OR97701	Mental Health Services
7	CENTRAL OREGON MAGNETIC RESONANCE IMAGING 1460 NE MEDICAL CENTER DR BEND,OR97701	MRI Center
8	ST CHARLES SLEEP CENTER - BEND 2042 WILLIAMSON CT BEND,OR97701	Sleep Lab
9	MORE CARE CLINIC 1103 NE ELM ST PRINEVILLE,OR97754	Rural Health Clinic
10	ST CHARLES PULMONARY CLINIC 2275 NE DOCTORS DR BEND,OR97701	Lung Clinic
11	ST CHARLES OBGYN REDMOND 213 NW LARCH STE A REDMOND,OR97756	OB/GYN Clinic
12	ST CHARLES IMMEDIATE CARE 2600 NE NEFF RD BEND,OR97701	Immediate Care Clinic
13	ST CHARLES MEDICAL SUPPLY 2042 NE WILLIAMSON CT BEND,OR97701	Sleep Medical Equip Sales
14	BEHAVIORAL HEALTH - BEND 2542 COURTNEY DR BEND,OR97701	Behavioral Health Clinic
15	ST CHARLES SLEEP CENTER - REDMOND 655 NW JACKPINE AVE REDMOND,OR97756	Sleep Lab
16	HEART CENTER OF THE CASCADES 2500 NE NEFF RD STE 200 BEND,OR97701	Cardiac Rehab Clinic
17	ST CHARLES FAMILY CARE - SISTERS 615 ARROWLEAF TRAIL SISTERS,OR97759	Primary Care Clinic
18	ST CHARLES FAMILY CARE - BEND 2965 NE CONNERS AVE STE 127 BEND,OR97701	Primary Care Clinic
19	ST CHARLES ANTICOAGULATION CLINIC 2100 NE WYATT CT BEND,OR97701	Anticoag Clinic
20	ST CHARLES PULMONARY CLINIC - REDMOND 655 NW JACKPINE AVE REDMOND,OR97756	Lung Clinic
21	ST CHARLES LABORATORY SERVICES - BEND 2088 NE KIM LANE BEND,OR97701	Outpatient Lab
22	ST CHARLES LABORATORY SERVICES - REDMOND 1553 NW CANAL BLVD REDMOND,OR97756	Outpatient Lab
23	BEHAVIORAL HEALTH - REDMOND 767 NW CANAL BLVD REDMOND,OR97756	Behavioral Health Clinic

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

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

Identifier	ReturnReference	Explanation
Pt I Line 7		The costing methodology used was derived from SCHS's cost accounting
Pt I Line 7		system, which addresses all hospital-based patient segments. Non-
Pt I Line 7		hospital based segments include Home Health, inpatient psychiatric
Pt I Line 7		services, physician clinics, and rehab. A cost-to-charge ratio from the cost
Pt I Line 7		accounting system was used to calculate the cost of Financial Assistance in
Pt I Line 7		line 7a. Numbers reported in column (b) in lines 7a and 7b refer to the number
Pt I Line 7		of patient encounters.
Pt I Line 7 col (f)		The total expense from Form 990 Part IX Line 25 Column (A) was
Pt I Line 7 col (f)		$506,079,974. The Bad Debt Expense included in this amount was
Pt I Line 7 col (f)		$26,522,319. The remaining total expense of $479,557,655
Pt I Line 7 col (f)		was used for the purposes of calculating Line 7 Column (f).
Pt II		SCHS participates in educational development to promote continued
Pt II		availability of medical professionals in its community, which is essential
Pt II		to its ability to provide advanced medical care in the future. SCHS also
Pt II		partners with community health improvement organizations, which work to
Pt II		identify and provide resources for areas of highest need in its communities.
Pt III Line 4		The costing methodology used for determining amounts reported in
Pt III Line 4		lines 2 and 3 was derived from SCHS's cost accounting system.
Pt III Line 4		Discounts and payments are posted to patient accounts before
Pt III Line 4		accounts are written off to bad debt, and only the net receivable
Pt III Line 4		that is deemed uncollectable is included in the calculation for lines 2 and 3.
Pt III Line 4		Text of financial statement footnote:
Pt III Line 4		Patient Accounts Receivable, Allowance for Doubtful Accounts, and Other
Pt III Line 4		Receivables: The collection of receivables from third-party payors
Pt III Line 4		and patients is SCHS's primary source of cash and is critical to its
Pt III Line 4		operating performance. When SCHS provides care to patients, it does not
Pt III Line 4		require collateral; however, it maintains an estimated allowance for
Pt III Line 4		doubtful accounts. Additionally, SCHS adjusts accounts receivable
Pt III Line 4		balances to estimated collectible balances based on the terms of contracts in
Pt III Line 4		place with third-party payors. The primary collection risks relate
Pt III Line 4		to uninsured patient accounts and patient accounts for which the primary
Pt III Line 4		insurance payor has paid, but patient responsibility amounts (generally
Pt III Line 4		deductibles and co-payments) remain outstanding. The allowance for
Pt III Line 4		doubtful accounts is estimated based primarily upon SCHS's historical collection
Pt III Line 4		experience, the age of the patient's account, management's estimate
Pt III Line 4		of the patient's economic ability to pay, and the effectiveness of collection
Pt III Line 4		efforts. Patient accounts receivable balances are routinely reviewed
Pt III Line 4		in conjunction with historical collection rates and other economic
Pt III Line 4		conditions that might ultimately affect the collectibility of patient
Pt III Line 4		accounts when considering the adequacy of the amounts recorded in the allowance
Pt III Line 4		for doubtful accounts. Actual write-offs have historically been within
Pt III Line 4		management's expectations. Significant changes in payor mix, business office
Pt III Line 4		operations, economic conditions, or trends in federal and state governmental
Pt III Line 4		healthcare coverage could affect SCHS's collection of patient accounts
Pt III Line 4		receivable, cash flows, and results of operations.
Pt III Line 4		Bad debt is charged against a patient account when the patient can not cover the
Pt III Line 4		care charged to them. The cost of this shortfall is considered community benefit as
Pt III Line 4		SCHS is the primary provider of these services in our communities and this situation
Pt III Line 4		often occurs when no other resources or programs are available to the patient.
Pt III Line 8		Costing Methodology: Medicare allowable costs were calculated using a
Pt III Line 8		cost-to-charge ratio as determined by the Medicare Cost Reports.
Pt III Line 8		Community Benefit: Caring for Medicare patients fulfills a community
Pt III Line 8		need and relieves a government burden as these patients typically have
Pt III Line 8		low and/or fixed incomes. Medicare does not provide sufficient reimbursement
Pt III Line 8		to cover the cost of providing care for these patients and that shortfall
Pt III Line 8		shown on Line 7 should be counted as community benefit.
Pt III Line 9b		Collection policies are the same for all patients. Patients are screened
Pt III Line 9b		for eligibility for financial assistance before collection procedures
Pt III Line 9b		begin. If at any point in the collection process documentation is received
Pt III Line 9b		that indicates the patient is potentially eligible for financial assistance
Pt III Line 9b		but has not applied for it, the account is referred back for a financial assistance
Pt III Line 9b		review.
		Pt IV - Entities listed on Part IV are owned by St. Charles Health System, Inc. and by other
		Pt IV - LLCs whose members are in whole or in part comprised of physicians.
		Pt IV - SCHS is not aware of the detailed composition (% ownership or
		Pt IV - profits) of the participating LLCs; therefore the entire percent
		Pt IV - owned by the participating LLC owner is shown in column (e).
		Pt IV - SCHS is aware that one director of the organization is also a
		Pt IV - physician and is a member of the participating LLC owners for the
		Pt IV - entities listed on Part IV lines 3, 4, 5, 6 and 7.
Pt V Sec B 15e		N/A
Pt V Sec B 17e		N/A
Pt V Sec B 19d		All FAP-eligible individuals are charged in accordance with St. Charles
Pt V Sec B 19d		Health System Inc.'s policy guidelines.
Pt VI Line 2		SCHS gathers data from State, County, and Agency reports, rankings,
Pt VI Line 2		and research data which are based on health outcomes such as morbidity
Pt VI Line 2		and mortality, as well as health factors including behavioral, clinical,
Pt VI Line 2		social, economic, and environmental factors. These findings are studied
Pt VI Line 2		and compared to SCHS's ranking and results, and are used to develop
Pt VI Line 2		a regional needs assessment which drives the community benefit area
Pt VI Line 2		of focus. Through feedback, monitoring, and tracking, the regional needs
Pt VI Line 2		assessment is adjusted over time to ensure its accuracy and performance.
Pt VI Line 3		The financial assistance policy is referred to in both English and Spanish
Pt VI Line 3		in a variety of ways. Communications include: bilingual signage throughout
Pt VI Line 3		the hospital, including the emergency department and outpatient registration
Pt VI Line 3		areas; distribution of brochures describing the policy and how to apply for assistance;
Pt VI Line 3		posting of reference to the policy and application on the website; a statement added to all
Pt VI Line 3		publications indicating the availability of charity care;
Pt VI Line 3		through appointments with financial counselors; and is included with each bill.
Pt VI Line 3		Interpretation services are available for patients needing information
Pt VI Line 3		in languages other than English and Spanish.
Pt VI Line 4		SCHS is the only healthcare system in the area serving two counties and
Pt VI Line 4		surrounding areas. The service area includes small cities and surrounding
Pt VI Line 4		suburbs, small towns and rural agricultural areas. The population
Pt VI Line 4		includes a significant number of retired citizens and a large
Pt VI Line 4		minority population, both Hispanic and Native American.
Pt VI Line 5		A majority of SCHS's governing body is comprised of persons who reside
Pt VI Line 5		in the organization's primary service area who are neither employees
Pt VI Line 5		nor contractors of the organization. SCHS extends medical staff
Pt VI Line 5		privileges to all qualified physicians in the community for some or
Pt VI Line 5		all of its departments.
Pt VI Line 6		SCHS is a 501(c)(3) corporation. Other affiliates include St. Charles
Pt VI Line 6		Foundation, a 501(c)(3), and certain healthcare-related joint ventures.
Pt VI Line 6		In addition to community benefit activities of the hospital system,
Pt VI Line 6		the St. Charles Foundation funds community benefit and community wellness
Pt VI Line 6		initiatives, including the operational or financial support of
Pt VI Line 6		clinics serving an indigent population.
Pt VI Line 7		SCHS files its annual Community Benefit report with the State of Oregon.

Schedule H (Form 990) 2011

Additional Data

Software ID:	11000175
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
ST CHARLES HEALTH SYSTEM INC

Employer identification number
93-0602940

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

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

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance
(1) DESCHUTES CO HEALTH DEPARTMENT1340 NW WALL ST BEND,OR97701	93-6002292	Govt.	25,000				Prenatal care
(2) HEALTH MATTERS OF CENTRAL OREGONPO BOX 5729 BEND,OR97708	20-8230296	501(c)(3)	60,000				Medical Assistance
(3) KIDS CENTER1375 NW KINGSTON BEND,OR97701	94-3169200	501(c)(3)	20,000				Child Abuse Prevention
(4) VOLUNTEERS IN MEDICINE2300 NE NEFF RD BEND,OR97701	93-1327847	501(c)(3)	47,205	36,445	Book Value, Rate Comp.	Supplies/Rent	Medical Assistance
(5) PARTNERSHIP TO END POVERTYPO BOX 147 REDMOND,OR97756	93-1314045	501(c)(3)	10,000				Poverty Prevention
(6) BESTCARE TREATMENT SERVICESPO BOX 1710 REDMOND,OR97756	93-1269087	501(c)(3)		72,473	FMV	Rent Reduct	Addiction Treatment
(7) UNITED WAY OF DESCHUTES COPO BOX 5969 BEND,OR97708	93-6012576	501(c)(3)	29,696				Community Programs
(8) RONALD MCDONALD HOUSE CHARITIES OF CENTRAL OREGON1700 NE PURCELL BLVD BEND,OR97701	93-1125838	501(c)(3)		49,983	Rate Comp	Subsidized Rent	Family Lodging
(9) WESTERN UNIVERSITY OF HEALTH SCIENCESPO BOX 5729 POMONA,CA91766	95-3127273	501(c)(3)	60,000				Classroom & Lab Space
(10) NATURE OF WORDSPO BOX 56 BEND,OR97709	86-1167881	501(c)(3)	12,000				Literary Arts & Humanities

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

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

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

Cat. No. 50055P

Schedule I (Form 990) 2011

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Use Schedule I-1 (Form 990) if additional space is needed.

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

Part IV

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

Identifier	Return Reference	Explanation
Pt I Line 2		SCHS does not have strict grant criteria that requires follow-up and monitoring
Pt I Line 2		of the use of grants, assistance, or support funds that are distributed.
Pt I Line 2		SCHS does not regularly make grants, but does support programs that benefit
Pt I Line 2		community health. SCHS maintains relationships with the organizations it supports,
Pt I Line 2		and works with those organizations to further the health and safety of the
Pt I Line 2		communities served.
Part II		The total of column (d) is less than the total cash grants on 990 Part IX, Line 1
Part II		because some line items detailed in the GL were not reported on Schedule I
Part II		because they did not meet the $5K threshold.

Schedule I (Form 990) 2011

Additional Data

Software ID:	11000175
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

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

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

Yes

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

Yes

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

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

Yes

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) DIEGEL JAMES A	(i) (ii)	450,202	137,223	456,118	99,057	28,000	1,170,600	75,557
(2) SHEPARD KAREN M	(i) (ii)	319,072	62,836	33,655	48,710	19,911	484,184
(3) BOILEAU MICHEL MD	(i) (ii)	295,974		2,097	30,333	14,463	342,867
(4) HENRY JAMES	(i) (ii)	261,545	54,631	187,885	43,088	24,845	571,994	37,080
(5) WINNENBERG WILLIAM	(i) (ii)	260,787	55,973	31,713	42,822	19,707	411,002
(6) SCHUELER KIRK	(i) (ii)	250,064		5,432	27,502	22,878	305,876
(7) VITCOVICH KATHERINE	(i) (ii)	263,624	53,025	13,153	41,480	24,760	396,042
(8) MARTIN RICHARD	(i) (ii)	215,328	43,030	113,475	34,303	19,525	425,661	21,093
(9) STEINKE PAMELA	(i) (ii)	240,235	46,964	85,069	33,361	24,484	430,113	21,026
(10) VARGA PATRICK	(i) (ii)	114,740	35,807	35,491	9,077	11,236	206,351
(11) GOMES BOB	(i) (ii)	210,790	41,040	5,636	33,294	24,210	314,970
(12) ABSALON JEFFREY MD	(i) (ii)	247,495	25,000	16,904	20,000	23,042	332,441
(13) BOONE ROBERT MD	(i) (ii)	594,482		128,063	14,700	20,163	757,408
(14) KORNFELD STEVE MD	(i) (ii)	743,831		105,184	14,700	20,194	883,909
(15) MARTIN WILLIAM MD	(i) (ii)	583,782		96,794	14,700	25,321	720,597
(16) MURPHY THOMAS MD	(i) (ii)	442,032	50	87,006	14,700	25,200	568,988
(17) CONRAD ARTHUR MD	(i) (ii)	655,456	25	41,708	14,700	20,115	732,004
(18) SMITH JOSEPH	(i) (ii)	312,551					312,551

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
Pt I Line 1a		Three physicians received forgiveness of a portion of debt in 2011, which was treated as grossed-up taxable earnings. Such loans are reported on Schedule L.
Pt I Line 4b		The employer contributed to a 457(f) plan for the following individuals in 2011: $84,357 James A. Diegel $34,010 Karen M. Shepard $30,333 Michel Boileau $28,388 James Henry $28,122 William Winnenberg $27,502 Kirk Schueler $26,780 Katherine Vitcovich $21,726 Richard Martin $24,307 Pamela Steinke $21,040 Robert Gomes $20,000 Jeffrey Absalon The contributed amounts are not vested and may never be paid to the individuals. There were distributions from the 457(f) plan to the following employees in 2011 which were included in the employees base compensation and reported on Schedule J, Part II Column B (iii): $339,081 James A. Diegel $169,220 James Henry $112,180 Richard Martin $20,975 Pamela Steinke
Pt I Line 7		SCHS paid incentive compensation for certain executives in 2011, based on a 2010 accrual which was calculated using several operating targets which focused on the following areas: Implement EMR in order to provide clinical data for quality improvement Improve patient satisfaction Improve physician satisfaction Reduce employee turnover Meet financial targets to ensure a sustainable Health System

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990. SchKMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
ST CHARLES HEALTH SYSTEM INC

Employer identification number
93-0602940

Part I

Bond Issues

(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	(g) Defeased		(h) On Behalf of Issuer		(i) Pool financing
(a) Issuer Name		(b) Issuer EIN	(c) CUSIP #	(d) Date Issued	(e) Issue Price	(f) Description of Purpose	Yes	No	Yes	No	Yes	No
A	HOSPITAL FACILITY AUTHORITY DESCHUTES CO OR	93-0991182	250336CV4	12-23-2008	101,284,231	See Part VI		X		X		X
B	HOSPITAL FACILITY AUTHORITY DESCHUTES CO OR	93-0991182	250336BY9	12-21-2005	51,800,000	See Part VI		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . .	4,275,000		4,275,000
2 Amount of bonds legally defeased . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . .	109,373,347		53,449,239
4 Gross proceeds in reserve funds . . . . . . . .	10,403,437
5 Capitalized interest from proceeds . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . .
7 Issuance costs from proceeds . . . . . . . . . . .	2,025,685		489,902
8 Credit enhancement from proceeds . . . . . . . . . .	1,021,665		1,021,665
9 Working capital expenditures from proceeds . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . .	79,314,103		51,937,672
11 Other spent proceeds . . . . . . . . . . .	17,630,000
12 Other unspent proceeds . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . .	2007		2007
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . .	X			X
15 Were the bonds issued as part of an advance refunding issue? . . . .		X		X
16 Has the final allocation of proceeds been made? . . . . . .	X		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . .	X		X

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2011

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . .	X		X
b If ‘Yes’ to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property? . . . . .
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . .	X		X
d If ‘Yes’ to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property? .	X		X
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .	0%		0%		%		%
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .	0.00000%		0.00000%		%		%
6 Total of lines 4 and 5 . . .. . . . . . . . .	0%		0%		%		%
7 Does the bond issue meet the private security or payment test? . . .	X		X
8 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2?	X		X

Part IV

Arbitrage

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

Schedule K (Form 990) 2011

Page 3

Part V

Procedures To Undertake Corrective Action

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

Part VI

Supplemental Information

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

Identifier	Return Reference	Explanation
		The difference between Part I (e) and Part II 3 is due to interest earnings on bond proceeds.
		Part I (A), Col (f): The proceeds of the Bonds were used to refund, redeem, or defease the
		Series 2005A Bonds, and to pay financing and legal expenses associated therewithin.
		Part I (B), Col (f): The proceeds of the Bonds were used to finance capital additions
		and improvements to St. Charles Medical Center-Bend and to St. CharlesMedical Center-Redmond.

Schedule K (Form 990) 2011

Additional Data

Software ID:	11000175
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Part I

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

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

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

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

Part II

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

(a) Name of interested person and purpose	(b) Loan to or from the organization?		(c)Original principal amount	(d)Balance due	(e) In default?		(f) Approved by board or committee?		(g)Written agreement?
(a) Name of interested person and purpose	To	From	(c)Original principal amount	(d)Balance due	Yes	No	Yes	No	Yes	No
(1) DR WILLIAM MARTIN See Part V		X	235,000	35,000		No		No	Yes
(2) DR STEVE KORNFELD See Part V		X	235,000	35,000		No		No	Yes
(3) DR ROB BOONE See Part V		X	235,000	40,555		No		No	Yes



Total ............... $				110,555

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) JOSEPH SMITH	Former Key Employee	312,551	See Part V		No

Part V

Supplemental Information

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

Identifier	Return Reference	Explanation
Part II		SCHS paid certain expenses on behalf of physicians upon
Part II		employment and made further retention payments. These
Part II		advances were treated as loans, which will be forgiven over a three-year
Part II		period as long as the physicians remain employed in good
Part II		standing over the forgiveness period. This method is consistent with
Part II		SCHS's normal business practices. The Board has delegated the
Part II		authority to executive management to make such loans to physicians, and
Part II		the loans are reviewed by legal counsel. The forgiveness of these loans
Part II		is treated as taxable income and is reported in Form 990 Part VII
Part II		and Schedule J.
Part II		Drs. Martin, Kornfeld, and Boone are current highest compensated
Part II		employees.
Part IV		Joseph Smith, former key employee of SCHS, operates a healthcare
Part IV		consulting company, Southern Cross Consulting, which was
Part IV		engaged by SCHS in 2011 to provide interim CEO services for
Part IV		Mt. View Hospital District (MVHD). MVHD is an independent
Part IV		hospital which is managed by SCHS. SCHS provides the CEO
Part IV		and CFO for MVHD as well as high-level financial and management
Part IV		services. MVHD reimburses SCHS for CEO and CFO costs.

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:	11000175
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

Identifier	Return Reference	Explanation
Pt VI, Line 11a		The 990 was prepared internally and reviewed by an external consultant. It was
Pt VI, Line 11a		reviewed by the organization's Director of Accounting and the Sr. VP of Finance/CFO,
Pt VI, Line 11a		both CPAs. It was presented to the Audit Committee on behalf of the Board of
Pt VI, Line 11a		Directors for final review and approval before filing.
Pt VI, Line 12c		The Audit Committee is responsible for monitoring conflicts of interest.
Pt VI, Line 15		SCHS utilizes an independent outside consultant to provide comparability
Pt VI, Line 15		data regarding compensation for the CEO and top management officials.
Pt VI, Line 15		The analysis covers all elements of total compensation.
Pt VI, Line 15		The CEO compensation is reviewed and approved by the Board of Directors
Pt VI, Line 15		following an annual performance evaluation and compensation review. The
Pt VI, Line 15		evaluation and review process is prescribed in an internal policy and
Pt VI, Line 15		the process is documented. The most recent study for the CEO and top management
Pt VI, Line 15		officials was performed in November of 2011, of which the results showed the
Pt VI, Line 15		SCHS aggregate market position to be at the 44th percentile.
Pt VI, Line 15		Compensation for other top management officials
Pt VI, Line 15		is reviewed and approved by the President and CEO.
Pt VI, Line 19		Governing documents are available upon request. The Conflict of Interest policy
Pt VI, Line 19		is available to employees through a shared document management system.
Pt VI, Line 19		Financial reports are shared with employees monthly. Audited financial statements
Pt VI, Line 19		are available to the public upon request and on the internet at www.DACBond.com.
Parts IV, VI & VII		A questionnaire was sent to all persons listed in Part VII for purposes
Parts IV, VI & VII		of Part IV, Line 28; Part VI, Line 2; Part VII, Column (E) and (F)
Parts IV, VI & VII		for related organizations; for Schedule L; and for Schedule J.
Part VIII, Line 2f		All Other Program Service Revenue consists of:
Part VIII, Line 2f		$10,785,443 Home Health & Hospice
Part VIII, Line 2f		$8,041,233 Sage View Mental Health
Form 990, Part III, Line 4d		PIONEER MEMORIAL HOSPITAL, AIR LINK, HOME HEALTH & HOSPICE, 43448816. 1288. 69452250.
Part VIII, Line 2f		$5,533,314 Sleep Lab
Part VIII, Line 2f		$2,626,733 Psychiatric Emergency
Part VIII, Line 2f		$2,339,098 Behavioral Health
Part VIII, Line 2f		$185,669 Rent from Affiliates
Part VIII, Line 2f		$76,604 Area Health Education Center (AHEC)
Part IX, Line 11g		Other Fees for services include physician professional fees and standby pay,
Part IX, Line 11g		purchased exam fees, provider tax, send-out lab tests, consulting & planning,
Part IX, Line 11g		collection services, medical director services, recruiting, transcription,
Part IX, Line 11g		janitorial fees, and other fees.
Part IX, Line 13		"Office Expenses" include: Non-medical supplies, office supplies, minor
Part IX, Line 13		equipment, postage & shipping, publications, educational materials & forms,
Part IX, Line 13		utilities & telephone, lease & rental of equipment, repair &
Part IX, Line 13		maintenance of equipment, vehicle fuel & maintenance, food, and
Part IX, Line 13		employee recognition & safety.
Part VI (B) Lines 12-16		Affirmative answers on Lines 12-16 also apply to the disregarded
Part VI (B) Lines 12-16		entity reported on Schedule R, Part I.
Part XI Line 5		Other changes in net assets result from unrealized gains/losses, joint venture
Part XI Line 5		activity, and rounding on the audited financial statements.
Part XI Line 5		Noncontrolling interests and unrealized gains/losses are
Part XI Line 5		reported differently on the financial statements and the Form
Part XI Line 5		990, according to the specific rules for each.

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:	11000175
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

ST CHARLES HEALTH SYSTEM INC

Employer identification number

93-0602940

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	(f) Direct controlling entity
(1) ST CHARLES MANAGEMENT SERVICES ORGANIZATION 2500 NE NEFF RD BEND,OR97701 20-5310273	Phys Bus Svcs See Part VII	OR	70,615	SCHS

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) CASCADIA INSURANCE CO INC 1123 11TH AVE 403-A HONOLULU,HI96816 87-0757855	Provides malpractice insurance for SCHS	HI	501(c)(3)	11-Type I	SCHS	Yes
(2) ST CHARLES FOUNDATION 2500 NE NEFF RD BEND,OR97701 94-3076293	Raises funds for SCHS and community programs	OR	501(c)(3)	7	SCHS	Yes

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

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) CASCADE MEDICAL IMAGING LLC 1460 NE MEDICAL CENTER DR BEND,OR97701 93-1320712	Scanning Services	OR	NA	Related	5,054,967	8,498,405		No		Yes		70.000 %
(2) HEART CENTER OF THE CASCADES 2500 NE NEFF RD BEND,OR97701 38-3724947	Medical Building	OR	NA	Related	-55,205	-1,411,661		No		Yes		50.000 %

Part IV

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

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

Schedule R (Form 990) 2011

Page 3

Part V

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

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

Yes

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

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

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

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

Yes

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

Yes

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

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

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

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

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

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

Yes

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

Yes

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

Yes

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

(a) Name of other organization	(b) Transaction type(a-r)	(c) Amount involved	(d) Method of determining amount involved
(1) HEART CENTER OF THE CASCADES LLC	d	4,661,000	Loan Document
(2) HEART CENTER OF THE CASCADES LLC	j	791,000	Book Value
(3) HEART CENTER OF THE CASCADES LLC	k	275,894	Book Value
(4) CASCADE MEDICAL IMAGING LLC	i	107,574	Book Value
(5) CASCADE MEDICAL IMAGING LLC	k	1,823,098	Book Value
(6) CASCADE MEDICAL IMAGING LLC	l	12,185,998
(7) CASCADE MEDICAL IMAGING LLC	j	79,705
(8) CASCADE MEDICAL IMAGING LLC	r	4,756,361
(9) ST CHARLES FOUNDATION INC	c	1,052,385
(10) ST CHARLES FOUNDATION INC	m	78,464
(11) ST CHARLES FOUNDATION INC	n	418,542
(12) CASCADIA INSURANCE COMPANY INC	p	435,519
(13) CASCADIA INSURANCE COMPANY INC	l	120,000

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
Part I		St. Charles Management Services Organization (SCMSO) included both management
Part I		services and physician clinics. SCMSO financial statements are fully consolidated
Part I		with SCHS. End-of-year assets for SCMSO are not reported in Part I because
Part I		separate balance sheets were not maintained for this organization.

Additional Data

Software ID:	11000175
Software Version:

1	Briefly describe the organization’s mission or most significant activities: To improve the health of those we serve in a spirit of love and compassion. St. Charles Health System (SCHS) is a health care system of hospitals and related services.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	14
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	13
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	3,325
6	Total number of volunteers (estimate if necessary) ....	6	628
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	1,112,459
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) .........	1,857,032	1,438,863
9	Program service revenue (Part VIII, line 2g) .........	457,770,076	483,651,931
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	7,091,930	11,325,142
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	29,978,695	27,631,612
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	496,697,733	524,047,548
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	33,859	270,550
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)	234,679,964	248,780,349
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 514,055
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	240,835,882	257,025,691
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	475,549,705	506,076,590
19	Revenue less expenses. Subtract line 18 from line 12.......	21,148,028	17,970,958
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	548,913,918	555,452,380
21	Total liabilities (Part X, line 26).............	239,603,580	237,362,384
22	Net assets or fund balances. Subtract line 21 from line 20.....	309,310,338	318,089,996

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 272,578,791 including grants of $ 266,859 ) (Revenue $ 309,911,950 )
	ST. CHARLES MEDICAL CENTER - BEND (SCMC-B) SCMC-B PROVIDED SERVICES FOR 14,711 INPATIENTS, 1,663 BIRTHS, 14,891 SURGICAL CASES, 36,239 EMERGENCY ROOM VISITS, AND 120,336 OTHER OUTPATIENT VISITS IN 2011. AS ONE OF THE PACIFIC NORTHWEST'S LEADING REGIONAL HEALTH CARE FACILITIES, ST. CHARLES BEND PROVIDES SERVICES TYPICALLY FOUND IN MARKETS MANY TIMES ITS SIZE. FOR OVER 90 YEARS, ST. CHARLES BEND HAS TAKEN RESPONSIBILITY FOR THE HEALTH AND WELL-BEING OF GENERATIONS OF OREGONIANS, DEVELOPING INTO A LEVEL II REGIONAL TRAUMA CENTER WITH SPECIALIZED PARTNERSHIPS IN HEART, CANCER, ORTHOPEDICS AND NEUROSURGERY.

4b	(Code: ) (Expenses $ 44,448,931 including grants of $ 2,403 ) (Revenue $ 58,242,226 )
	ST. CHARLES MEDICAL CENTER - REDMOND (SCMC-R) SCMC-R PROVIDED SERVICES FOR 2,256 INPATIENTS, 327 BIRTHS, 3,269 SURGICAL CASES, 17,972 EMERGENCY ROOM VISITS, AND 42,621 OTHER OUTPATIENT VISITS IN 2011. AT ST. CHARLES REDMOND, THE PATIENT EXPERIENCE REMAINS AT THE CENTER OF ALL WE DO AND EACH PATIENT IS EMPOWERED TO PLAY AN ACTIVE ROLE IN HIS OR HER OWN CARE AND HEALING. SURGERIES ARE PERFORMED IN FOUR OF OREGON'S NEWEST AND MOST ADVANCED SURGICAL SUITES. PATIENTS AND THEIR FAMILIES ENJOY THE COMF

4c	(Code: ) (Expenses $ 38,359,352 including grants of $ ) (Revenue $ 46,045,505 )
	ST. CHARLES MEDICAL GROUP (SCMG) SCMG IS A GROUP OF MEDICAL CLINICS OWNED AND OPERATED BY ST. CHARLES HEALTH SYSTEM. THESE CLINICS ARE LOCATED THROUGHOUT THE REGION AND PROVIDE OUTPATIENT SERVICES SUCH AS ANTICOAGULATION, CANCER CARE, OB/GYN, PULMONARY CARE, SLEEP DISORDER RESOURCES, AND PRIMARY CARE. SCMG PROVIDED 55,030 VISITS IN BEND CLINICS,56,487 VISITS IN REDMOND CLINICS, 1,161 VISITS IN SISTERS CLINICS AND 21,567 VISITS IN PRINEVILLE CLINICS IN 2011. SCMG ALSO OPERATES AN IMMEDIATE CARE C

	(Code: ) (Expenses $ 43,448,816 including grants of $ 1,288 ) (Revenue $ 69,452,250 )
	Pioneer Memorial Hospital, Air Link, Home Health & Hospice, Sage View mental health, Sleep Lab, Psychiatric Emergency, Sage View mental health, Sleep Lab, Psychiatric Emergency, Sage View mental health, Sleep Lab, Psychiatric Emergency,

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 43,448,816 including grants of $ 1,288 ) (Revenue $ 69,452,250 )
4e	Total program service expenses$ 398,835,890

(A) Name and Title	(B) Average hours per week (describe hours for related organizations in Schedule O)		(D) Reportable compensation from the organization (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) HENRY JAMES CEO SCMC-Bend	50	X	504,061	67,933
(19) WINNENBERG WILLIAM CIO	50	X	348,473	62,528
(20) SCHUELER KIRK Executive VP/Chief Admin. Officer	50	X	255,496	50,380
(21) VITCOVICH KATHERINE Sr VP Human Resources	50	X	329,802	66,240
(22) MARTIN RICHARD VP Service Lines	50	X	371,833	53,829
(23) STEINKE PAMELA VP Quality/Chief Nursing Exec.	50	X	372,268	57,845
(24) VARGA PATRICK CEO SCMC-R	50	X	186,038	20,313
(25) GOMES BOB CEO SCMC-R & PMH	50	X	257,466	57,503

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	8,572,074	904,581

				(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		1,052,385
e	Government grants (contributions)1e		282,493

f	All other contributions, gifts, grants, and similar amounts not included above1f		103,985
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			1,438,863
			Business Code
2a	SCMC Bend		622,110	309,911,950
b	SCMC Redmond		622,110	58,242,226
c	St Charles Medical Group		621,110	46,045,505
d	Air Link		621,910	19,325,512
e	Pioneer Memorial Hospital		622,110	22,332,583
f	All other program service revenue .			27,794,155
g	Total. Add lines 2a–2f........			483,651,931
3	Investment income (including dividends, interest
	and other similar amounts).....			5,503,716			5,503,716
4	Income from investment of tax-exempt bond proceeds..			334,762			334,762
5	Royalties............
		(i) Real	(ii) Personal
6a	Gross rents	122,387
b	Less: rental expenses	3,385
c	Rental income or (loss)	119,002
d	Net rental income or (loss).......			119,002	119,002
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	32,514,184	133,638
b	Less: cost or other basis and sales expenses	27,053,654	107,504
c	Gain or (loss)	5,460,530	26,134
d	Net gain or (loss)..........			5,486,664			5,486,664
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..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a		2,483,032
b	Less: cost of goods sold ..b		798,233
c	Net income or (loss) from sales of inventory..			1,684,799	1,684,799
Miscellaneous Revenue			Business Code
11a	Healthcare JV Income (Loss)		900,099	20,591,875	20,591,875
b	Mgmt & Other Svcs		541,611	1,659,767	547,308	1,112,459
c	Reimbursed Salaries		900,099	3,096,022	3,096,022
d	All other revenue ....			480,147	480,076		71
e	Total. Add lines 11a–11d ......			25,827,811
12	Total revenue. See Instructions....			524,047,548	510,171,013	1,112,459	11,325,213


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			19,822,497	1	15,875,657
2	Savings and temporary cash investments .......			4,758,357	2	4,610,804
3	Pledges and grants receivable, net .........				3
4	Accounts receivable, net .........			72,100,637	4	79,729,146
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			298,787	5	110,555
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........				6
7	Notes and loans receivable, net .............				7	527,100
8	Inventories for sale or use ..............			5,106,768	8	9,365,196
9	Prepaid expenses and deferred charges ............			4,880,446	9	6,558,755
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	459,016,775
b	Less: accumulated depreciation. .....	10b	235,959,881	238,475,301	10c	223,056,894
11	Investments—publicly traded securities ..........			171,323,519	11	182,948,685
12	Investments—other securities. See Part IV, line 11 ......			22,148,805	12	21,561,720
13	Investments—program-related. See Part IV, line 11 ..			4,828,960	13	5,961,777
14	Intangible assets .........			5,169,841	14	5,146,091
15	Other assets. See Part IV, line 11 ...........				15
16	Total assets. Add lines 1 through 15 (must equal line 34)...			548,913,918	16	555,452,380
17	Accounts payable and accrued expenses .			42,592,455	17	46,375,198
18	Grants payable ..........				18
19	Deferred revenue ..........			987,327	19	1,108,036
20	Tax-exempt bond liabilities ..........			162,177,079	20	159,908,129
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 ..			26,635,278	23	20,126,839
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.....			7,211,441	25	9,844,182
26	Total liabilities. Add lines 17 through 25.....			239,603,580	26	237,362,384
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			309,310,338	27	318,089,996
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 .....			309,310,338	33	318,089,996
34	Total liabilities and net assets/fund balances .....			548,913,918	34	555,452,380