TY 2011 Form 990

(A) Name and business address	(B) Description of services	(C) Compensation
SAN ANGELO EMERGENCY PHYSICIANS PO BOX 62566 SAN ANGELO,TX76906	PHYSICIAN GROUP	213,156
LOCKTON COMPANIES LLC PO BOX 802707 KANSAS CITY,MO641802707	INSURANCE	494,743
MATAGORDA LITHOTRIPSY LLP 6339 E SPEEDWAY STE 201 TUCSON,AZ85710	LITHOTRIPSY	300,350
BRADLY BUDRANT MD 300 LARGENT AVENUE BALLINGER,TX76821	ER/PHYSICIAN	273,299
RW GREGONIS 3415 S JOHNSON SAN ANGELO,TX76904	ARCHITECT/INTERIOR	215,852
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 10

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	121,970	121,970
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	0
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16	0
4	Benefits paid to or for members	0
5	Compensation of current officers, directors, trustees, and key employees ....	3,276,787		3,276,787
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	130,715	130,715
7	Other salaries and wages	67,829,394	53,769,174	14,060,220
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	5,071,040	4,124,290	946,750
9	Other employee benefits .......	7,796,205	6,060,433	1,735,772
10	Payroll taxes ...........	5,204,110	3,965,362	1,238,748
11	Fees for services (non-employees):
a	Management ......	302,340		302,340
b	Legal .........	311,089		311,089
c	Accounting ...........	82,208		82,208
d	Lobbying ...........	0
e	Professional fundraising. See Part IV, line 17..	0
f	Investment management fees ......	0
g	Other ..........	19,367,676	14,255,324	5,112,352
12	Advertising and promotion ....	916,284	20,711	895,573
13	Office expenses .......	4,506,244	396,329	4,109,915
14	Information technology ......	2,019,789	227,949	1,791,840
15	Royalties ..	0
16	Occupancy ...........	2,653,812	359,281	2,294,531
17	Travel ............	439,110	232,306	206,804
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	0
20	Interest ...........	0
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	9,723,229	4,986,861	4,736,368
23	Insurance ..............	301,640	2,377	299,263
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24f. If line 24f amount exceeds 10% of line 25, column (A) amount, list line 24f expenses on Schedule O.)
a	Medical Supplies	47,186,542	47,102,840	83,702	0
b	Bad Debt	26,578,259	26,578,259
c	Equipment Costs	3,275,849	2,579,296	696,553
d	Collection Fees	779,938		779,938
e
f	All other expenses	2,936,949	882,889	2,054,060
25	Total functional expenses. Add lines 1 through 24f	210,811,179	165,796,366	45,014,813	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet
	1	Cashnon-interest-bearing ..........	1,535,892	1	9,570,703
2	Savings and temporary cash investments .......	28,424	2	85,753
3	Pledges and grants receivable, net .........	0	3	0
4	Accounts receivable, net .........	19,062,834	4	19,901,278
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........	0	5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........	0	6	0
7	Notes and loans receivable, net .............	359,171	7	409,752
8	Inventories for sale or use ..............	3,786,391	8	3,836,122
9	Prepaid expenses and deferred charges ............	1,636,804	9	1,824,416
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	208,220,877
b	Less: accumulated depreciation. .....	10b	147,280,656	60,423,751	10c	60,940,221
11	Investments—publicly traded securities ..........	54,677,848	11	53,420,637
12	Investments—other securities. See Part IV, line 11 ......	2,628,842	12	1,000
13	Investments—program-related. See Part IV, line 11 ..	0	13	0
14	Intangible assets .........	784,536	14	2,589,275
15	Other assets. See Part IV, line 11 ...........	120,068,809	15	149,169,723
16	Total assets. Add lines 1 through 15 (must equal line 34)...	264,993,302	16	301,748,880
	17	Accounts payable and accrued expenses .	25,473,229	17	18,510,079
18	Grants payable ..........	0	18	0
19	Deferred revenue ..........	2,025	19	2,025
20	Tax-exempt bond liabilities ..........	0	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	0	23	0
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....	23,822,729	25	27,483,382
26	Total liabilities. Add lines 17 through 25.....	49,297,983	26	45,995,486
		Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....	103,636,284	27	115,476,746
28	Temporarily restricted net assets .....	112,059,035	28	140,276,648
29	Permanently restricted net assets .....	0	29	0
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....		30
31	Paid-in or capital surplus, or land, building or equipment fund .....		31
32	Retained earnings, endowment, accumulated income, or other funds		32
33	Total net assets or fund balances .....	215,695,319	33	255,753,394
34	Total liabilities and net assets/fund balances .....	264,993,302	34	301,748,880

- 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

Shannon Medical Center

Employer identification number

75-2559845

Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Other

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

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

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

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

Yes

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

11g(i)

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

11g(ii)

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

11g(iii)

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2011

Page 2

Part II

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

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3..
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public Support. Subtract line 5 from line 4.

Section B. Total Support

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

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

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

Section C. Computation of Public Support Percentage

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

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

16a

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

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

17a

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

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

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

Schedule A (Form 990 or 990-EZ) 2011

Page 3

Part III

Support Schedule for Organizations Described in IRC 509(a)(2)
(Complete only if you checked the box on line 9 of Part I or if the organization failed to qualify under Part II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public Support

Calendar year(or fiscal year beginning in)		(a) 2007	(b) 2008	(c) 2009	(d) 2010	(e) 2011	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public Support (Subtract line 7c from line 6.)

Section B. Total Support

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

Section C. Computation of Public Support Percentage

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

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

Section D. Computation of Investment Income Percentage

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

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

19a

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

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

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

Schedule A (Form 990 or 990-EZ) 2011

Page 4

Part IV

Supplemental Information. Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

OMB No. 1545-0047

2011

Name of organization

Shannon Medical Center

Employer identification number

75-2559845

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 Shannon Medical Center
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 Shannon Medical Center
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
Shannon Medical Center

Employer identification number

75-2559845

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

Shannon Medical Center

Employer identification number

75-2559845

Part I

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

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

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

Yes No

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

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


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

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

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

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

Yes No

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

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

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

Yes No

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

Part III

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

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

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

(i)

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

(ii)

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

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

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

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

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

Cat. No. 52283D

Schedule D (Form 990) 2011

Page 2

Part III

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

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

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No

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


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

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

Yes No

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

Part V

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

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

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

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

Part VI

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

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	5,122,978		5,122,978
b	Buildings ................	70,519,961	50,060,469	20,459,492
c	Leasehold improvements ............
d	Equipment ................	125,965,618	95,634,617	30,331,001
e	Other .................	6,612,320	1,585,570	5,026,750
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				60,940,221

Schedule D (Form 990) 2011

Page 3

Part VII

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

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








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

Part VIII

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

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









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

Part IX

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

(a) Description				(b) Book value
(1) Int in Net Assets - Shannon Tr				140,276,648
(2) Self Insurance Trust				7,985,887
(3) Non-Compete Agreement				90,476
(4) Beneficiary Account				416,890
(5) Interest Receiveable				399,822




Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				149,169,723

Part X

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

1.(a) Description of Liability		(b) Book value
Federal Income Taxes		0
Asset Retirement Obligation		766,395
Accrued Pension Cost		19,533,055
Malpractice Costs		1,886,173
Due to/from thrid party payors		5,013,592
Long Term Incentive Accrual		284,167




Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		27,483,382
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	236,066,018
2	Total expenses (Form 990, Part IX, column (A), line 25) .....................	2	210,811,179
3	Excess or (deficit) for the year. Subtract line 2 from line 1 .............	3	25,254,839
4	Net unrealized gains (losses) on investments ..........................	4	2,786,857
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	2,786,857
10	Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 .........	10	28,041,696

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	212,152,246
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a	2,786,857
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	2,786,857
3	Subtract line 2e from line 1.....................			3	209,365,389
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	26,700,629
c	Add lines 4a and 4b.......................			4c	26,700,629
5	Total Revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	236,066,018

Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1	Total expenses and losses per audited financial statements .............			1	184,110,550
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	184,110,550
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	26,700,629
c	Add lines 4a and 4b.......................			4c	26,700,629
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	210,811,179

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
INCOME & EXPENSES INCLUDED IN FORM 990 NOT ON BOOKS	FORM 990, PART XII & XIII, LINE 4B	BAD DEBT (INCLUDED W/ REVENUE ON AUDIT) $ 26,578,259 DISPOSAL OF ASSET (INCLUDED IN EXP ON AUDIT) $ 400 GRANTS INCLUDED IN REVENUE ON AUDIT $ 121,970 -------------- $ 26,700,629
UNCERTAIN TAX POSITIONS	SCHEDULE D, PART XIV	MANAGEMENT HAS EVALUATED THEIR INCOME TAX POSITIONS UNDER THE GUIDANCE INCLUDED IN ASC 740. BASED ON THEIR REVIEW, MANAGEMENT HAS NOT IDENTIFIED ANY MATERIAL UNCERTAIN TAX POSITIONS TO BE RECORDED OR DISCLOSED IN THE FINANCIAL STATEMENTS.

Schedule D (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Shannon Medical Center

Employer identification number

75-2559845

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?......

Yes

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

	(c) Total community benefit expense	(d) Direct offsetting revenue	(e) Net community benefit expense	(f) Percent of total expense
a Financial Assistance at cost (from Worksheet 1) ..	13,799,110	0	13,799,110	7.490 %
b Medicaid (from Worksheet 3, column a) .....	22,236,220	24,859,861	-2,623,641
c Costs of other means-tested government programs (from Worksheet 3, column b) .	323,452	339,637	-16,185
dTotal Financial Assistance and Means-Tested Government Programs .....	36,358,782	25,199,498	11,159,284	7.490 %
Other Benefits e Community health improvement services and community benefit operations (from (Worksheet 4) ....	1,327,339	1,200	1,326,139	0.720 %
f Health professions education (from Worksheet 5) ..	1,241,165	3,300	1,237,865	0.670 %
g Subsidized health services (from Worksheet 6) ..	-1,165,702	0	-1,165,702
h Research (from Worksheet 7)
i Cash and in-kind contributions for community benefit (from Worksheet 8) ....	173,776	0	173,776	0.090 %
jTotal Other Benefits ...	1,576,578	4,500	1,572,078	1.480 %
kTotal. Add lines 7d and 7j. ..	37,935,360	25,203,998	12,731,362	8.970 %

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

Schedule H (Form 990) 2011

Page

Part II

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

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development	750	750
3	Community support	10,165	10,165	0.010 %
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total	10,915	10,915	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........

6,079,213

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).....

76,598,032

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

48,669,992

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

27,928,040

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

Management Companies and Joint Ventures

(see instructions)

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

Schedule H (Form 990) 2011

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest) How many hospital facilities did the organization operate during the tax year?1 Name and address		Other (Describe)
1	SHANNON MEDICAL CENTER 120 E HARRIS AVENUE SAN ANGELO,TX76903	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)

SHANNON MEDICAL CENTER

Name of Hospital Facility:

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

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

Schedule H (Form 990) 2011

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: 200.% 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?3
Name and address		Type of Facility (describe)
1	SHANNON SURGERY CENTER 120 E HARRIS AVENUE SAN ANGELO,TX76903	AMBULATROY SURGERY CENTER
2	SHANNON HOME HEALTH 2030 PULLIAM STE 6 SAN ANGELO,TX76905	HOME HEALTH CENTER
3	SHANNON DIALYSIS CENTER 2018 PULLIAM SAN ANGELO,TX76905	DIALYSIS
4
5
6
7
8
9
10

Schedule H (Form 990) 2011

Page

Part VI

Supplemental Information

Complete this part to provide the following information.

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

Identifier	ReturnReference	Explanation
DESCRIPTION OF BAD DEBT		ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE SYSTEM ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE SYSTEM ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL, THE SYSTEM RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES OR THE DISCOUNTED RATES IF NEGOTIATED OR PROVIDED BY POLICY AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.
COSTING METHODOLOGY	LINES 2 AND 3	LINE 2: AMOUNT REPORTED ON LINE 2 IS BASED ON BAD DEBTS PER THE AUDITED FINANCIAL STATEMENTS AFTER APPLYING THE COST TO CHARGE RATIO. LINE 3: THE ORGANIZATION IS UNABLE TO ESTIMATE THE AMOUNT FOR LINE 3 AND HAS ELECTED TO LEAVE IT BLANK.
SURPLUS OR SHORT FALL	SECTION B MEDICARE LINE 7	SHORTFELL: N/A COSTING METHODOLOGY: THE RATIO OF COST TO CHARGES USED IN THE CALCULATION OF COSTS FOR MEDICARE WAS TAKEN FROM THE MEDICARE COST REPORT.
WRITTEN DEBT COLLECTION POLICY	SECTION C - COLLECTION PRACTICES	CHARITY CARE AND DISCOUNTING FOR UNINSURED PATIENTS WHO ARE NOT ELIGIBLE FOR GOVERNMENT HEALTH CARE PROGRAMS AND WHOSE FINANCIAL CONDITION IS SUCH THAT THEY ARE NOT ABLE TO PAY FOR HOSPITAL SERVICES MAY BE ELIGIBLE FOR ASSISTANCE UNDER THE SHANNON MEDICAL CENTER CHARITY CARE PROGRAM. PATIENTS WHO ARE UNINSURED, DO NOT QUALIFY FOR COVERAGE UNDER GOVERNMENT HEALTH CARE PROGRAMS, MAY BE ELIGIBLE FOR A 50% DISCOUNT OFF THE TOTAL BILL FOR HOSPITAL SERVICES, IF THE SERVICES ARE PAID FOR WHEN RECEIVED OR WITHIN 30 DAYS OF DISCHARGE. COLLECTION OF ACCOUNTS RECEIVABLE PATIENTS / GUARANTOR WILL BE RESPONSIBLE FOR PAYMENT OF SERVICES RECEIVED AT SHANNON MEDICAL CENTER. PATIENTS / GUARANTORS WILL BE RESPONSIBLE FOR FULL CHARGES, OR PATIENT PORTION NOT COVERED BY INSURANCE. PAYMENT WILL BE REQUESTED PRIOR TO OR ON THE DATE OF SCHEDULED ELECTIVE SERVICES. FULL CHARGES OR PATIENT PORTION NOT COVERED BY INSURANCE FOR URGENT / EMERGENT SERVICES WILL BE COLLECTED UPON DISCHARGE. PATIENTS WHO ARE UNABLE TO PAY THE FULL AMOUNT OF THEIR RESPONSIBILITY AT THE TIME OF SERVICE CAN MAKE PAYMENT ARRANGEMENTS UNDER THE FOLLOWING GUIDELINES: A. BALANCE OF OUTPATIENT SERVICES MUST BE PAID WITHIN SIX (6) MONTHS FROM THE DATE OF SERVICE UNLESS INDIGENT STATUS IS PROVEN B. BALANCE OF INPATIENT SERVICES MUST BE PAID WITHIN TWELVE (12) MONTHS FROM THE DATE OF DISCHARGE UNLESS INDIGENT STATUS IS PROVEN MONTHLY STATEMENTS WILL BE SENT THROUGHOUT THE COLLECTION CYCLE. COLLECTION LETTERS WILL BE UTILIZED AT THE DISCRETION OF THE PATIENT ACCOUNT REPRESENTATIVE. ACCOUNTS WILL BE REVIEWED FOR OUTSIDE COLLECTION AGENCY PLACEMENT ANYTIME FOLLOWING 90 DAYS FROM THE DATE OF SERVICE. MEDICARE ACCOUNTS WILL NOT BE CONSIDERED FOR PLACEMENT UNTIL 120 DAYS FROM THE FIRST NOTICE OF PATIENT RESPONSIBILITY IN ACCORDANCE WITH MEDICARE REGULATIONS. ANY OVERPAYMENT OF AN ACCOUNT WILL BE REVIEWED FOR REFUND WITHIN 30 DAYS FROM THE DATE THE CREDIT BALANCE IS CREATED BY THE OVERPAYMENT. CREDIT BALANCES ON MEDICARE ACCOUNTS WILL BE PROCESSED THROUGH THE NORMAL CREDIT BALANCE PROCESS AND REPORTED ON A QUARTERLY BASIS IN COMPLIANCE WITH MEDICARE REGULATIONS.
ASSESSMENT OF HEALTH CARE NEEDS	PART V, SECTION B	A. IN 2004, THE UNITED WAY OF THE CONCHO VALLEY CONDUCTED A COMPREHENSIVE NEEDS ASSESSMENT OF TOM GREEN COUNTY AND 13 OTHER SURROUNDING COUNTIES. COUNTIES INCLUDED IN THE NEEDS ASSESSMENT ARE AS FOLLOWS: COKE, CONCHO, CROCKETT, IRION, KIMBLE, MASON, MCCULLOCH, MENARD, REAGAN, RUNNELS, SCHLEICHER, STERLING, SUTTON, AND TOM GREEN. SAN ANGELO AND TOM GREEN COUNTY SERVE AS THE HUB FOR THESE COUNTIES FOR TRADE AS WELL AS MEDICAL SERVICES. THIRTEEN OF THE FOURTEEN COUNTIES ARE CONSIDERED RURAL OR "FRONTIER" BASED ON POPULATION AND PERSONS PER SQUARE MILE. (SOURCE UW NEEDS ASSESSMENT 2004) THE RESULTS OF THE 2004 UNITED WAY NEEDS ASSESSMENT CONFIRM THAT SOCIAL AND HEALTH CONCERN ISSUES STATED IN THE SHANNON NEEDS ASSESSMENT 1994, CONTINUE TO RANK HIGH IN IMPORTANCE MANY YEARS LATER. 1. SOCIAL CONCERNS (TOM GREEN COUNTY - COMMUNITY CONCERNS) MORE THAN HALF THE RESPONDENTS IN THE UNITED WAY 2004 COMMUNITY NEEDS ASSESSMENT NAMED THE FOLLOWING CONCERNS AS MAJOR OR MODERATE ISSUES OF CONCERN. A. TEEN PREGNANCY 77% B. FAMILY VIOLENCE, ABUSE OF CHILDREN OR ADULTS 71% C. LACK OF AFFORDABLE CARE FOR CHILDREN 65% D. LACK OF AFFORDABLE CARE FOR THE ELDERLY 59% E. RACIAL OR ETHNIC DISCRIMINATION 56% 2. HEALTH CONCERNS (TOM GREEN COUNTY COMMUNITY CONCERNS A. ALCOHOL/DRUG USE 82% B. MENTAL ILLNESS OR EMOTIONAL ISSUES 56% C. LACK OF AFFORDABLE MEDICAL CARE 79% D. LACK OF ADEQUATE AFFORDABLE MEDICAL CARE 51% E. HIV/AIDS 46% 3. TOP FIVE MAJOR ISSUES OVERALL (TOM GREEN COUNTY - HOUSEHOLD CONCERNS) A. NOT HAVING ENOUGH MONEY TO PAY THE DOCTOR, BUY PRESCRIPTIONS, MEDICATIONS OR GET MEDICAL INSURANCE 43% B. FINDING IT DIFFICULT TO BUDGET 40% C. HAVING A LOT OF ANXIETY, STRESS OR DEPRESSION 36% D. NOT BEING ABLE TO FIND WORK 31% E. CHILDREN OR TEENAGERS EXPERIENCING BEHAVIOR OR EMOTIONAL ISSUES 29% B. IN 2011, THE POPULATION OF TOM GREEN COUNTY HAD A HIGHER PERCENTAGE OF ELDERLY - 65 YEARS OR OLDER - THAN THE STATE AVERAGE: 13.9% AND 10.5% RESPECTIVELY. IN ADDITION, THE MEDIAN HOUSEHOLD INCOME LEVEL: $43,465 AND $50,920 RESPECTIVELY. THE INCIDENCE OF A MORE ELDERLY POPULATION AND LOWER INCOME POPULATION IN TOM GREEN COUNTY AS COMPARED TO THE NATIONAL LEVEL HAS BECOME A STATISTICAL TREND OVER THE LAST SEVERAL YEARS. POVERTY LEVELS AND THE AGE OF THE POPULATION HAVE CONTRIBUTED TO AN INCREASE OF 20% IN THE CHARITY CARE CONTRIBUTION MADE BY SHANNON IN THE PAST TWELVE MONTHS ALONE. (SOURCE: U.S. CENSUS BUREAU STATE & COUNTY QUICKFACTS, 2012).
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE		FINANCIAL ASSISTANCE BROCHURES ARE AVAILABLE IN EACH OP REGISTRATION AREAS THAT OUTLINE ACCESS TO INFORMATION ABOUT ASSISTANCE PROGRAMS. WE ALSO HAVE CONTRACTED ELIGIBILITY WORKERS WHO SCREEN PATIENTS FOR ALL SOCIAL SERVICE PROGRAMS AND ASSIST WITH THE APPLICATION PROCESS IF NEEDED.
COMMUNITY INFORMATION		Shannon, a non-profit health system established in the 1930s, provides the communities of West Central Texas with a variety of medical services. Dedicated to the regions health and well-being, the center offers diverse clinical services, including a nationally-recognized cardiac care program, nationally-recognized ICU, the regions only Level III Trauma Facility and AirMed 1 air ambulance serving a 200-mile radius of San Angelo, a dedicated Womens & Childrens Hospital which is home to the Childrens Miracle Network, and the most extensive Senior Health services in the Concho Valley. The estimated population for all the counties as of 2010, including Tom Green County, is 342,356. The outer counties are Brown, Coke, Coleman, Concho, Crockett, Howard, Irion, Kimble, Mason, McCulloch, Menard, Mills, Mitchell, Nolan, Pecos, Reagan, Runnels, San Saba, Schleicher, Sterling, Sutton, Terrell, Upton and Val Verde. (Source: U.S. Census Bureau, State & County Quickfacts.) Our goal is to provide our patients with the most compassionate and efficient service while ensuring the highest quality care. Tom Green Countys population in 2012 is reported at 113,281. The city of San Angelo serves as the county seat and population center of Tom Green County, with an estimated population in 2011 of 94,544. A breakdown of Tom Green County demographics is as follows. (Source: U.S. Census Bureau, State & County Quickfacts, The County Information Project, Texas Association of Counties.) A. Tom Green County Age Distribution 1. Under 18 years old 23.5% (26,621) 2. 18-64 years old 62.6% (70,914) 3. 65 years and older 13.9% (15,746) B. Tom Green County Ethnic Distribution (More than one category may be self-reported) 1. Caucasian 57% (64,570) 2. Hispanic 36.3% (41,121) 3. Black 4.7% (5,324) 4. Other 2% (2,266) C. Tom Green County (Household) 1. Median Household Income - $43,465 (Texas: $50,920) 2. Persons living below poverty level 15.9% (Texas: 17%) D. Tom Green County Health Index 1. Tom Green County uninsured 24.3% (Texas: 26.3%, United States: 16.3%) (Source: U.S. Census Bureau, Small Area Health Insurance Estimates, 2010; U.S. Census Bureau, Income, Poverty, and Health Coverage in the United States: 2010).
PROMOTION OF COMMUNITY HEALTH		Shannon provides a host of community education events related to topics such as cancer prevention and screenings, diabetes education, fitness and nutrition, and cardiovascular health. Through events like Go Red and the Diabetes Update, health professionals relay current health information to the public. In addition to public outreach events, Shannon publishes the Health Beat magazine which is delivered to 30,000 households and produces Health Beat television spots that air during the 6 and 10 p.m. news hours on two local stations. Both contain a variety of health education information from local healthcare providers. Shannon contributed $119,772 for these programs. Shannon supports The Lighthouse for the Blind by donating used linen to the organization. Based on thrift value, the cost of the linen donated is $31,406. Shannon supports heath and fitness activities, as well. Each October Shannon organizes the Pink Ribbon Run for cancer awareness and education with more than 800 participants. Additionally, to address the growing concern over childhood obesity, the Kids Marathon event provides an opportunity for students, ranging in ages from Kindergarten through sixth grade, to participate in a program that encourages healthy habit formation early in life. A full marathon is considered 26.2 miles. Students accumulate miles and run the last 0.2 lap during a celebratory event at the San Angelo Stadium. The event hosts local summer programs and camps that encourage children to remain active through the summer months. These events are provided at a cost of $21,825 to Shannon. Shannon is one of the collaborating organizations of the Tom Green County Partnership for Better Health. The partnership began in January 2012 as a result of an initiative by the Department of State Health Services to reduce potentially preventable hospitalizations. The coalition implements evidence-based strategies for reducing bacterial pneumonia, UTI and COPD. Some of the initiatives include bacterial pneumonia and influenza immunizations, tobacco cessation kits and public awareness campaigns at a cost of $6,507. Shannon is the only provider that operates the Sexual Assault Nurse Examiner program (SANE). SANE trained nurses work with the Childrens Advocacy Center, the Concho Valley Rape Crisis Center and other community-based organizations to provide training and services related to sexual assault crises. Additionally, Shannon provides support services such as $5,350 in transportation vouchers, $23,631 in discounted or free prescription drugs, $229,431 in support for enrollment in public assistance programs, and $470,808 in pharmacy services for the Tom Green County Indigent Health Department. Shannons Trauma Service Department coordinates the annual Gus Eckhardt Trauma Symposium. This is a full day of trauma related education for all health care practitioners in the region. Approximately 160 physicians, nurses, EMTs, students, and Allied Health professionals attended the 2012 symposium. Additionally, injury prevention material covering topics such as bicycle safety, child passenger safety, fall prevention, and home safety tips are continually provided to health care professionals to distribute at their practice and in their community. The cost to host the symposium is $6,558. 870 ASU nursing students and 20 Howard College radiology tech students shadow Shannon staff for a cost benefit of $1,224,692 to the students and the universities. (#hrs x AHR x 50% effort.) Approximately 20 hours of Cancer Conference is offered annually at a cost of $6,615. Shannon provided emergency and trauma services through physician services to Ballinger, Coleman and Eldorado Counties in the amount of $1,115,779. Shannon also assisted Crockett, Schleicher and Tom Green Counties by providing outpatient clinic and indigent health services in the amount of $3,713,991. By providing specialty care for unmet needs, Shannon reduces the burden to local and governmental entities. Shannon contributed $266,666 to MHMR to provide community based mental health services currently not available in the Concho Valley Community. Shannon donated the Roosevelt Building and a cash donation for maintenance and improvements to the Downtown San Angelo Association in the amount of $170,565. The building will be part of the associations ongoing initiatives to restore the area. Additionally, donations of $3,211 were made towards health and education efforts and by assisting the United Way Annual Campaign with administrative support. Shannon contributes planning and financial assistance to community building efforts. This past year, $10,165 was donated to other organizations including Healthy Families, the National Alliance on Mental Illness, San Angelo Independent School District, American Cancer Society-Relay for Life, the Adult Literacy Council, the All Veterans Council, and the Chamber of Commerces Goodfellow Airforce Base Military Appreciation Day. In addition, $750 was donated to support the local Chamber of Commerce to host the West Texas Legislative Summit. Chamber of Commerce to host the West Texas Legislative Summit.
AFFILIATED HEALTH CARE SYSTEM		SUBSIDIZED HEALTH SERVICES SHANNON PROVIDED EMERGENCY AND TRAUMA SERVICES THROUGH PHYSICIAN SERVICES TO BALLINGER, COLEMAN AND ELDORADO COUNTIES IN THE AMOUNT OF $1,115,779. SHANNON ALSO ASSISTED CROCKETT, SCHLEICHER AND TOM GREEN COUNTIES BY PROVIDING OUTPATIENT CLINIC AND INDIGENT HEALTH SERVICES IN THE AMOUNT OF $3,713,991. BY PROVIDING SPECIALTY CARE FOR UNMET NEEDS, SHANNON REDUCES THE BURDEN TO LOCAL AND GOVERNMENTAL ENTITIES. LASTLY, SHANNON CONTRIBUTED $266,666 TO MHMR TO PROVIDE COMMUNITY BASED MENTAL HEALTH SERVICES CURRENTLY NOT AVAILABLE IN THE CONCHO VALLEY COMMUNITY. FINANCIAL AND IN-KIND DONATIONS - $173,776 SHANNON DONATED THE ROOSEVELT BUILDING AND A CASH DONATION FOR MAINTENANCE AND IMPROVEMENTS TO THE DOWNTOWN SAN ANGELO ASSOCIATION IN THE AMOUNT OF $170,565. THE BUILDING WILL BE PART OF THE ASSOCIATIONS ONGOING INITIATIVES TO RESTORE THE AREA. ADDITIONALLY, DONATIONS OF $3,211 WERE MADE TOWARDS HEALTH AND EDUCATION EFFORTS AND BY ASSISTING THE UNITED WAY ANNUAL CAMPAIGN WITH ADMINISTRATIVE SUPPORT COMMUNITY BUILDING ACTIVITIES - $10,915 SHANNON CONTRIBUTES PLANNING AND FINANCIAL ASSISTANCE TO COMMUNITY BUILDING EFFORTS. THIS PAST YEAR, $10,165 WAS DONATED TO OTHER ORGANIZATIONS INCLUDING HEALTHY FAMILIES, THE NATIONAL ALLIANCE ON MENTAL ILLNESS, SAN ANGELO INDEPENDENT SCHOOL DISTRICT, AMERICAN CANCER SOCIETY-RELAY FOR LIFE, THE ADULT LITERACY COUNCIL, THE ALL VETERANS COUNCIL, AND THE CHAMBER OF COMMERCES GOODFELLOW AIRFORCE BASE MILITARY APPRECIATION DAY. IN ADDITION, $750 WAS DONATED TO SUPPORT THE LOCAL CHAMBER OF COMMERCE TO HOST THE WEST TEXAS LEGISLATIVE SUMMIT. SUMMARY: ECONOMIC IMPACT OF SHANNON DONATED GOODS, SERVICES, AND VOLUNTEERISM 2011-2012 CHARITY CARE $60,800,381 COMMUNITY HEALTH IMPROVEMENT 1,326,139 HEALTH PROFESSIONS EDUCATION 1,237,865 SUBSIDIZED HEALTH SERVICES 5,096,436 FINANCIAL & IN-KIND CONTRIBUTIONS 173,776 COMMUNITY BUILDING ACTIVITIES 10,915 -------------------------------------- TOTAL $68,645,512
STATE FILLING OF COMMUNITY BENEFIT REPORT		TEXAS
DETERMINATION FOR BILLING FOR EMERGENCY CARE	PART V, LINE 19	COLLECTION OF GROSS CHARGES FOR UNINSURED UNLESS PROMPT PAYMENT SECURED, COLLECTION OF DEDUCTIBLES/CONINSURANCE AMOUNTS BASE ON CONTRACTED RATES FOR INSURED PATIENTS.
BILLING AND COLLECTIONS	SCHEDULE H, PART V, LINE 15, 16, & 17	NEITHER SHANNON MEDICAL CENTER, NOR THIRD PARTIES AUTHORIZED BY SMC, TAKE ANY ACTIONS UPON NON-PAYMENT FROM A PATIENT BEFORE MAKING A REASONABLE EFFORT TO DETERMINE IF THE PATIENT IS ELIGIBLE FOR THE FACILITY'S FINANCIAL ASSISTANCE POLICY. BECAUSE NO ACTIONS WERE CHECKED ON LINE 16, LINE 17 INDICATES EFFORTS MADE BEFORE INITIATING ANY OF THE ACTIONS LISTED IN LINE 16.

Schedule H (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990

OMB No. 1545-0047

2011

Open to Public
Inspection

Name of the organization
Shannon Medical Center

Employer identification number
75-2559845

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

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

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(h) Purpose of grant or assistance
(1) ROOSEVELT HOTEL24 WEST CONCHO STREET SAN ANGELO,TX76903	45-4908773	501(3)(C)	121,470	PROPERTY IMPROVEMENT

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
PROCEDURES FOR MONITORING USE OF GRANT FUNDS	SCHEDULE I, PART I, QUESTION 2	THE ORGANIZATION EVALUATES AND MONITORS DONEES BASED ON PUBLIC AND PRIVATE DATA.

Schedule I (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

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

Attach to Form 990. SchJMediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Shannon Medical Center

Employer identification number

75-2559845

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

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) BRYAN HORNER	(i) (ii)	483,959	84,761		30,380	17,144	616,244
(2) EMMETE FLYNN MD	(i) (ii)	424,512	28,942	52,063	55,580	26,610	587,707
(3) MICHELLE SNUGGS MD	(i) (ii)	449,900	41,000	71,580	63,680	21,513	647,673
(4) KELLY SHANE PLYMELL	(i) (ii)	255,994	42,524		49,421	20,660	368,599
(5) DR IRVIN ZEITLER	(i) (ii)	385,672	58,566		55,205	6,522	505,965	21,703
(6) WILMA STUART	(i) (ii)	217,032	36,998		30,380	6,510	290,920
(7) PATRICIA TIPTON	(i) (ii)	286,441			30,380	4,789	321,610
(8) MARVIN HILL	(i) (ii)	284,777			30,380	9,451	324,608
(9) LANCE KEILERS	(i) (ii)	170,950	20,864		21,232	12,952	225,998
(10) TIMOTHY HARTIN	(i) (ii)	239,298	38,813		47,501	12,663	338,275	15,538
(11) PAULINE JAMES	(i) (ii)	172,303			17,876	9,420	199,599

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
NAMES, AMOUNTS, AND DETAILS OF ARRANGEMENTS	PART 1, QUESTION 4	SERP DETAIL NAME AMOUNT BRYAN HORNER NONE 457(F) DETAIL NAME AMOUNT TIMOTHY HARTIN 17,121 SHANE PLYMELL 19,041 DR. IRVIN ZEITLER 46,528 BRYAN HORNER NONE
PROVIDED HEALTH, SOCIAL DUES OR INITIATION FEES	SCHEDULE J, PART I, QUESTION 1A	BRYAN HORNER AND KELLY SHANE PLYMELL RECEIVE MEMBERSHIP TO BENTWOOD COUNTRY CLUB EXCLUSIVELY FOR BUSINESS USE. ANY PERSONAL USE IS REIMBURSED BY THE OFFICER AND THEREFORE NO AMOUNTS ARE REPORTABLE ON THEIR FORM W-2'S.

Schedule J (Form 990) 2011

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Shannon Medical Center

Employer identification number

75-2559845

Part I

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

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

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

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

Part II

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

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






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

Part III

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

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

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2011

Page 2

Part IV

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of transaction	(d) Description of transaction	(e) Sharing of organization's revenues?
(a) Name of interested person		(c) Amount of transaction	(d) Description of transaction	Yes	No
(1) DIANE ZEITLER	IRVIN ZEITLER'S SPOUSE	130,715	EMPLOYED BY SMC		No

Part V

Supplemental Information

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

Identifier	Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE 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

Shannon Medical Center

Employer identification number

75-2559845

Identifier	Return Reference	Explanation
PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY	FORM 990, PART VI, QUESTION 12C	WE REGULARLY AUDIT FOR CONFLICT OF INTEREST STATEMENTS IN THE EMPLOYEES RECORDS. PROCEDURE FOR MONITORING: 1. WITHIN 90 DAYS OF BECOMING AN AFFECTED INDIVIDUAL, THAT INDIVIDUAL MUST REVIEW THIS POLICY AND COMPLETE AN SMC CONFLICT OF INTEREST DISCLOSURE FORM. 2. AT LEAST ANNUALLY THEREAFTER, AFFECTED INDIVIDUALS MUST REVIEW THIS POLICY AND COMPLETE A CONFLICT OF INTEREST DISCLOSURE FORM. 3. THE CONFLICT OF INTEREST DISCLOSURE FORM SHOULD BE SENT TO THE SMC COMPLIANCE OFFICER. 4. AT ANY TIME WHEN AN ACTUAL, POTENTIAL, OR PERCEIVED CONFLICT OF INTEREST ARISES, THE AFFECTED INDIVIDUAL MUST REVISE HIS OR HER CONFLICT OF INTEREST DISCLOSURE FORM AND CONTACT THE SMC COMPLIANCE OFFICER. THE RESPONSIBILITY TO PROMPTLY REPORT SUCH ACTUAL OR POTENTIAL CONFLICTS RESTS WITH THE AFFECTED INDIVIDUAL. 5. THE SMC COMPLIANCE OFFICER WILL REVIEW DISCLOSURES AND DETERMINE WHICH REQUIRE FURTHER ACTION WITH THE SMC GENERAL COUNSEL AND APPROPRIATE SMC EXECUTIVE STAFF.
REVIEW OF COMPENSATION	FORM 990, PART VI, QUESTION 15A & 15B	INTEGRATED HEALTH STRATEGIES DID AN EXECUTIVE COMPENSATION STUDY IN JUNE 2010 AND IT COVERED ALL EXECUTIVE SALARIES. EXECUTIVE COMPENSATION IS REVIEWED ANNUALLY BY THE BOARD OF TRUSTEES' OPERATIONS COMMITTEE, WHICH CONSULTS COMPARABILITY DATA AND KEEPS CONTEMPORANEOUS RECORDS OF ITS DECISIONS.
GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC	FORM 990, PART VI, QUESTION 19	THE ORGANIZATIONS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST.
CLASSES OF MEMBERS OR STOCKHOLDERS	FORM 990 PART VI, QUESTION 6	MARGARET SHANNON ESTATE, A TESTAMENTARY TRUST, IS THE SOLE MEMBER OF THE ORGANIZATION.
MEMBERS OR STOCKHOLDERS WHO CAN ELECT MEMBERS OF THE GOVERNING BODY	FORM 990 PART VI, QUESTION 7A	THE BOARD OF DIRECTORS SHALL CONSIST OF EACH OF THE SEVEN TRUSTEES OF THE MARGARET SHANNON ESTATE, A TESTAMENTARY TRUST. THE OTHER DIRECTORS SHALL CONSIST OF REPRESENTATIVES OF THE COMMUNITY AND MEMBERS OF THE MEDICAL STAFF OF THE HOSPITAL, TO NUMBER IN AGGREGATE NOT MORE THAN SEVEN WHO ARE APPOINTED BY THE MEMBER AND THE CHIEF EXECUTIVE OFFICER OF THE CORPORATION.
PROCESS TO REVIEW THE FORM 990	FORM 990, PART VI, QUESTION 11B	THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE FORM 990. ONCE PREPARED, THE FORM IS REVIEWED BY THE ORGANIZATION'S INTERNAL ACCOUNTANTS PRIOR TO FILING. THE ORGANIZATIONS FINANCE COMMITTEE WILL REVIEW AFTER THE FORM IS FILED.
DECISIONS OF THE GOVERNING BODY SUBJECT TO APPROVAL	FORM 990, PART VI, QUESTION 7B	APPROVAL OF THE SOLE MEMBER, THE TRUSTEES OF SHANNON WEST TEXAS MEMORIAL HOSPITAL, IS REQUIRED FOR BUDGETS, LARGE FINANCIAL EXPENDITURES THAT DEVIATE FROM BUDGET, SALE OF PROPERTY, MERGER, ACQUISITION, OR CONSOLIDATION, BORROWING OF MONEY, SEEKING OR GIVING GRANTS, SETTLEMENT OF CLAIMS OR LITIGATION, AMENDMENT OF BYLAWS, AND CONTRACT IN WHICH THE CORPORATION ASSUMES FINANCIAL RISK.
OTHER CHANGES IN NET ASSETS OR FUND BALANCES	FORM 990, PART XI, LINE 5	CONTRIBUTIONS RECORDED TO FUND BALANCE $ 445,987 CHANGE IN ADDITIONAL MINIMUM PENSION LIABILITY (3,637,340) TRANSFERS TO/FROM AFFILIATES (25,991,205) NET ASSETS RELEASED FROM RESTRICTION (TRUST) (16,677,411) CHANGE IN SHANNON TRUST NET ASSETS 44,895,024 NON CONTROLLING INTERESTS (RCTC) 2,165,124 CONTRIBUTIONS FROM TRUST RELEASED FROM RESTRICTION 16,789,435 NET ASSETS RELEASED FROM RESTRICTION 44,005 CARRYING VALUE OF RCTC NET ASSETS (6,017,240) UNREALIZED GAIN/LOSS 2,786,857 -------------- $14,803,236
AMENDED RETURN		THE RECEIPTS FROM MEDICAID DSH AND UPL WERE DUPLICATED. FORM 990, SCHEDULE H, PART I, LINE 7B IS BEING AMENDED TO CORRECT FOR THIS ERROR. LINE 7B, COLUMN D AS ORIGINALLY FILED WAS $ 39,237,839 LINE 7B, COLUMN E AS ORIGINALLY FILED WAS $ (17,001,619) LINE 7B, COLUMN D AS AMENDED IS $ 24,859,861 LINE 7B, COLUMN E AS AMENDED IS $ (2,623,641)
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:BRYAN HORNER TITLE:CEO/PRESIDENT HOURS:12
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:LEN MERTZ TITLE:CHAIRMAN HOURS:18
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:JAMES JOHNSON TITLE:SECRETARY/TREASURER HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:JOE HENDERSON TITLE:INDIVIDUAL TRUSTEE HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:ORAN BERRY III TITLE:INDIVIDUAL TRUSTEE HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:VIRGINIA NOELKE TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:MIKE BOYD TITLE:INDIVIDUAL TRUSTEE HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:MIKE OLIPHANT TITLE:INDIVIDUAL TRUSTEE HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:STEVE CECIL TITLE:INDIVIDUAL TRUSTEE HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:JOANNA RICE TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:JIM BOB BRAME MD TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:PAMELA TALLEY TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:EMMETE FLYNN MD TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:MICHELLE SNUGGS MD TITLE:DIRECTOR HOURS:4
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:ANGELIA WILLIAMS TITLE:DIRECTOR HOURS:6
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:KELLY SHANE PLYMELL TITLE:CFO HOURS:8
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:DR IRVIN ZEITLER TITLE:MEDICAL DIRECTOR HOURS:5
HOURS DEVOTED FOR RELATED ORGANIZATION	FORM 990 PART VII	NAME:TIMOTHY HARTIN TITLE:CCO HOURS:5

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2011

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990. MediumBullet

See separate instructions.

OMB No. 1545-0047

2011

Open to Public Inspection

Name of the organization

Shannon Medical Center

Employer identification number

75-2559845

Part I

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

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

Part II

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled organization
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) TRUSTEES SHANNON WEST TEXAS HOSPITAL PO BOX 49 SAN ANGELO,TX76902 75-0800679	TRUST	TX	501(C)(3)	11B	NA		No
(2) SHANNON RURAL HEALTH CLINICS INC 120 E HARRIS AVE SAN ANGELO,TX76903 75-2940211	HEALTHCARE	TX	501(C)(3)	11C	SMC	Yes
(3) SHANNON REAL ESTATE SERVICES INC 120 E HARRIS AVE SAN ANGELO,TX76903 27-0075630	SUPPORT SVCS	TX	501(C)(3)	11B	SMC	Yes
(4) SHANNON HEALTH SYSTEM 120 E HARRIS AVE SAN ANGELO,TX76903 75-2602411	SUPPORT SVCS	TX	501(C)(3)	11A	NA		No
(5) SHANNON CLINIC 120 E HARRIS AVE SAN ANGELO,TX76903 75-2600873	HEALTHCARE	TX	501(C)(3)	9	SHS	Yes
(6) SHANNON BUSINESS SERVICES INC 120 E HARRIS AVE SAN ANGELO,TX76903 43-2038769	SUPPORT SVCS	TX	501(C)(3)	11B	SMC	Yes
(7) SHANNON MEDICAL MANAGEMENT 120 E HARRIS AVE SAN ANGELO,TX76903 20-8367966	SUPPORT SVCS	TX	501(C)(3)	9	SHS		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2011

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) REGIONAL CANCER TREATMENT CENTER 102 N MAGDALEN STE 120 SAN ANGELO,TX76903 75-2225955	RADIOTHERAPY	TX	NA	RELATED	994,336	2,687,263		No	0	Yes		37.884 %

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
(1) LEGACY MANAGEMENT SERVICES 2018 PULLIAM ST SAN ANGELO,TX76903 75-2544450	MANAGEMENT	TX	NA	C - CORPORATION	0	0
(2) LEGACY HEALTH SOLUTIONS 2018 PULLIAM ST SAN ANGELO,TX76903 20-0720762	MED INSURANCE	TX	NA	C - CORPORATION	0	0

Schedule R (Form 990) 2011

Page 3

Part V

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

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

Yes

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

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

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

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

Yes

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

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

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

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

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

Yes

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

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

Yes

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

Yes

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

Yes

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

Yes

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

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) SHANNON CLINIC	O	10,823,755	BOOK VALUE
(2) SHANNON CLINIC	K	679,570	BOOK VALUE
(3) SHANNON REAL ESTATE SERVICES	J	227,522	BOOK VALUE
(4) SHANNON BUSINESS SERVICES	C	445,988	BOOK VALUE
(5) SHANNON MEDICAL MANAGEMENT	I	71,707	BOOK VALUE
(6) SHANNON BUSINESS SERVICES	I	126,567	BOOK VALUE
(7) SHANNON BUSINESS SERVICES	P	9,074,916	BOOK VALUE
(8) SHANNON BUSINESS SERVICES	R	8,769,462	BOOK VALUE
(9) SHANNON CLINIC	O	888,773	BOOK VALUE
(10) SHANNON CLINIC	P	3,107,545	BOOK VALUE
(11) SHANNON CLINIC	Q	2,778,106	BOOK VALUE
(12) SHANNON MEDICAL MANAGEMENT	P	6,810,331	BOOK VALUE
(13) SHANNON MEDICAL MANAGEMENT	Q	22,378,534	BOOK VALUE
(14) SHANNON REAL ESTATE SERVICES	Q	177,140	BOOK VALUE
(15) SHANNON REAL ESTATE SERVICES	P	1,561,671	BOOK VALUE

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
IDENTIFICATION OF RELATED ORGANIZATIONS TAXABLE AS A PARTNERSHIP	SCHEDULE R, PART III	THE OWNERSHIP PERCENTAGE REPORTED IN COLUMN K FOR REGIONAL CANCER TREATMENT CENTER IS BASED ON THE AMOUNT REPORTED ON THE K-1, WHICH IS CALENDAR YEAR. THE AMOUNT OWNED AT THE END OF THE ORGANZATIONS FISCAL YEAR IS 72.32%.

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: FOUNDED ON A LEGACY OF CARING, SHANNON IS A LOCALLY OWNED HEALTHCARE SYSTEM DEDICATED TO PROVIDING EXCEPTIONAL HEALTHCARE FOR OUR FAMILY, FRIENDS AND NEIGHBORS.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a).....	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) ....	4	11
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ...	5	2,012
6	Total number of volunteers (estimate if necessary) ....	6	130
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ..	7a	325,610
b	Net unrelated business taxable income from Form 990-T, line 34 ..	7b	-31,582

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	87,802	296,558
9	Program service revenue (Part VIII, line 2g) .........	226,867,384	228,539,051
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	2,070,667	2,221,159
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	3,616,606	5,009,250
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	232,642,459	236,066,018
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	243,804	121,970
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	88,378,080	89,308,251
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f)....	110,114,453	121,380,958
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	198,736,337	210,811,179
19	Revenue less expenses. Subtract line 18 from line 12.......	33,906,122	25,254,839
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	264,993,302	301,748,880
21	Total liabilities (Part X, line 26).............	49,297,983	45,995,486
22	Net assets or fund balances. Subtract line 21 from line 20.....	215,695,319	255,753,394

Sign Here

	Signature of officer	Date

	Type or print name and title.


4a	(Code: ) (Expenses $ 165,796,366 including grants of $ 121,970 ) (Revenue $ 233,222,691 )
	PROVIDING TOTAL MEDICAL CARE TO THE CITIZENS OF WEST TEXAS.

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses$ 165,796,366

(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)		(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(1) BRYAN HORNER CEO/PRESIDENT	32.0	X	X	568,720		47,524
(2) LEN MERTZ CHAIRMAN	2.0	X	X	32,350	83,900	12,633
(3) JAMES JOHNSON SECRETARY/TREASURER	2.0	X	X	30,114	32,739	142
(4) JOE HENDERSON INDIVIDUAL TRUSTEE	2.0	X		30,721	33,615	427
(5) ORAN BERRY III INDIVIDUAL TRUSTEE	2.0	X		27,666	30,000	12,621
(6) VIRGINIA NOELKE DIRECTOR	2.0	X		19,500
(7) MIKE BOYD INDIVIDUAL TRUSTEE	2.0	X		2,165
(8) MIKE OLIPHANT INDIVIDUAL TRUSTEE	2.0	X		27,712	30,000	8,042
(9) STEVE CECIL INDIVIDUAL TRUSTEE	2.0	X		28,350	30,000	12,210
(10) JOANNA RICE DIRECTOR	2.0	X		21,250
(11) JIM BOB BRAME MD DIRECTOR	2.0	X		16,850
(12) PAMELA TALLEY DIRECTOR	2.0	X		23,000
(13) EMMETE FLYNN MD DIRECTOR	2.0	X		505,517		82,190
(14) MICHELLE SNUGGS MD DIRECTOR	2.0	X		562,480		85,193
(15) ANGELIA WILLIAMS DIRECTOR	2.0	X
(16) KELLY SHANE PLYMELL CFO	32.0		X	298,518		70,081
(17) DR IRVIN ZEITLER MEDICAL DIRECTOR	37.0		X	444,238		61,727

(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) WILMA STUART CNO	40.0	X		254,030	36,890
(19) PATRICIA TIPTON NURSE ANESTHETIST	40.0		X	286,441	35,169
(20) MARVIN HILL NURSE ANESTHETIST	40.0		X	284,777	39,831
(21) LANCE KEILERS ADMINISTRATOR	40.0		X	191,814	34,184
(22) TIMOTHY HARTIN CCO	40.0		X	278,111	60,164
(23) PAULINE JAMES NURSE ANESTHETIST	40.0		X	172,303	27,296

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	4,106,627	240,254	626,324

				(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		275,272
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f		21,286
g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			296,558
			Business Code
2a	Net Patient Revenue		621,990	228,076,340	227,829,469	246,871
b	Rental Income		532,000	462,711	462,711
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			228,539,051
3	Investment income (including dividends, interest
	and other similar amounts).....			1,787,967			1,787,967
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties............			0
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	13,674,545	2,096
b	Less: cost or other basis and sales expenses	13,239,749	3,700
c	Gain or (loss)	434,796	-1,604
d	Net gain or (loss)..........			433,192			433,192
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..			0
Miscellaneous Revenue			Business Code
11a	Cafeteria		900,099	1,492,156	1,492,156
b	Regional Cancer Treatment		900,099	960,970	960,970
c	All Other Misc Revenue		900,099	2,556,124	2,477,385	78,739
d	All other revenue ....
e	Total. Add lines 11a–11d ......			5,009,250
12	Total revenue. See Instructions....			236,066,018	233,222,691	325,610	2,221,159


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing ..........			1,535,892	1	9,570,703
2	Savings and temporary cash investments .......			28,424	2	85,753
3	Pledges and grants receivable, net .........			0	3	0
4	Accounts receivable, net .........			19,062,834	4	19,901,278
5	Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
	Schedule L ..........			0	5	0
6	Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
	Schedule L ..........			0	6	0
7	Notes and loans receivable, net .............			359,171	7	409,752
8	Inventories for sale or use ..............			3,786,391	8	3,836,122
9	Prepaid expenses and deferred charges ............			1,636,804	9	1,824,416
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	208,220,877
b	Less: accumulated depreciation. .....	10b	147,280,656	60,423,751	10c	60,940,221
11	Investments—publicly traded securities ..........			54,677,848	11	53,420,637
12	Investments—other securities. See Part IV, line 11 ......			2,628,842	12	1,000
13	Investments—program-related. See Part IV, line 11 ..			0	13	0
14	Intangible assets .........			784,536	14	2,589,275
15	Other assets. See Part IV, line 11 ...........			120,068,809	15	149,169,723
16	Total assets. Add lines 1 through 15 (must equal line 34)...			264,993,302	16	301,748,880
17	Accounts payable and accrued expenses .			25,473,229	17	18,510,079
18	Grants payable ..........			0	18	0
19	Deferred revenue ..........			2,025	19	2,025
20	Tax-exempt bond liabilities ..........			0	20	0
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
22	Payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			0	23	0
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D.....			23,822,729	25	27,483,382
26	Total liabilities. Add lines 17 through 25.....			49,297,983	26	45,995,486
	Organizations that follow SFAS 117, check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets .....			103,636,284	27	115,476,746
28	Temporarily restricted net assets .....			112,059,035	28	140,276,648
29	Permanently restricted net assets .....			0	29	0
	Organizations that do not follow SFAS 117, check here and complete lines 30 through 34.
30	Capital stock or trust principal, or current funds .....				30
31	Paid-in or capital surplus, or land, building or equipment fund .....				31
32	Retained earnings, endowment, accumulated income, or other funds				32
33	Total net assets or fund balances .....			215,695,319	33	255,753,394
34	Total liabilities and net assets/fund balances .....			264,993,302	34	301,748,880