TY 2012 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) CLINT MATTHEWS........................................................................ PRESIDENT &	60.00 .......................	X	X	1,018,668	287,948
(2) ROBERT A BRIGHAM........................................................................ DIR. OF SURG	40.00 .......................	X		786,801	15,722
(3) LIL MURPHY........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(4) JOHN WEIDENHAMMER........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(5) KAREN RIGHTMIRE........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(6) BARBARA ARNER........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(7) THEODORE AUMAN........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(8) MARY ELLEN BATMAN........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(9) BRUCE BENGSTON........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(10) ROBERT J GIBBLE........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(11) VICTOR HAMMEL........................................................................ VICE CHAIR	1.00 .......................	X		0	0
(12) JULIA KLEIN........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(13) CHRIST G KRARAS........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(14) EDWARD T LENTZ........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(15) TERRENCE MCGLINN........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(16) MARGARET S MCSHANE........................................................................ BOARD MEMBER	1.00 .......................	X		0	0
(17) RICHARD M PALMER JR........................................................................ BOARD MEMBER	1.00 .......................	X		0	0

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(18) JOHN ROLAND ESQ........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(19) ELIZABETH ROTHERMEL........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(20) JAY S SIDHU........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(21) C THOMAS WORK ESQ........................................................................ CHAIRMAN	1.00 .......................	X	X			0	0
(22) BRENT WAGNER MD........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(23) P MICHAEL EHLERMAN........................................................................ VICE CHAIRMA	1.00 .......................	X	X			0	0
(24) ELIZABETH EHRLICH........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(25) SAMUEL A MCCULLOUGH........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(26) MARLIN MILLER JR........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(27) DAVID L THUN........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(28) BEN ZINTAK........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(29) THOMAS FLYNN........................................................................ BOARD MEMBER	1.00 .......................	X				0	0
(30) THERESE SUCHER........................................................................ COO	50.00 .......................		X			640,907	147,948
(31) RICHARD W JONES........................................................................ CFO	50.00 .......................		X			519,045	142,458
(32) RICHARD J MABLE........................................................................ SENIOR VP PL	50.00 .......................		X			310,916	50,548
(33) CARL J SEIDL........................................................................ VICE PRESIDE	50.00 .......................		X			237,756	44,890
(34) MARGARET M BLIGH........................................................................ VICE PRESIDE	50.00 .......................		X			233,743	15,637
(35) CHARLES F BARBERA........................................................................ PHYSICIAN	40.00 .......................			X		485,984	55,507
(36) NIDHI MAHENDRU........................................................................ PHYSICIAN	40.00 .......................			X		390,871	17,278
(37) JOHN BEYER........................................................................ PHYSICIAN	40.00 .......................			X		381,074	0
(38) MATHEW GROVE........................................................................ PHYSICIAN	40.00 .......................			X		379,985	35,115
(39) JETTIE HUNT........................................................................ PHYSICIAN	40.00 .......................			X		365,855	15,722
(40) DONNA F WEBER........................................................................ VP NURSING	.......................				X	487,962	28,289
(41) SCOTT R WOLFE........................................................................ FORMER PRESI	.......................				X	334,198	0

(A) Name and business address	(B) Description of services	(C) Compensation
FTI CONSULTINGPO BOX 418005BOSTONMA022418005	CONSULTING	7,229,745
BALLINGER833 CHESTNET STREET SUITE 1400PHILADELPHIAPA19107	CONSTRUCTION	5,105,435
HCSC BLOOD CENTER2171 28TH STREET SWALLENTOWNPA18103	CONSULTING	3,624,768
CARDIOLOGY ASSOCIATES OF WEST READIN301 S 7TH AVEWEST READINGPA19611	HEALTH CARE SVC	3,372,827
PENN TRAUMA ASSOCIATES3400 SPRUCE STPHILADELPHIAPA19104	TRAUMA SER.	2,609,662
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 58

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	1,135,000	1,135,000
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	2,982,632		2,982,632
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	826,093		826,093
7	Other salaries and wages	291,424,969	278,519,562	12,905,407
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	28,434,293	26,819,894	1,614,399
9	Other employee benefits .......	40,204,430	37,957,549	2,246,881
10	Payroll taxes ...........	22,151,212	20,872,581	1,278,631
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	9,849,893	453,264	9,396,629
c	Accounting ...........	927,590		927,590
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ........	28,853,926	15,896,691	12,957,235
12	Advertising and promotion ....
13	Office expenses .......
14	Information technology ......	15,630,002	15,630,002
15	Royalties ..
16	Occupancy ...........	15,044,081	14,585,139	458,942
17	Travel ............	749,882	572,247	177,635
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....
20	Interest ...........	14,295,289	13,859,190	436,099
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	69,798,968	69,798,968
23	Insurance ..............	7,635,993	7,626,216	9,777
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	SUPPLIES AND DRUGS	109,871,474	109,460,829	410,645
b	PHYSICIAN FEES	21,446,354	21,112,491	333,863
c	OUTSIDE SERVICE	11,459,515	11,459,515
d	OTHER MISC EXPENSES	11,133,249	3,038,707	8,094,542
e	All other expenses	23,004,391	22,125,663	878,728
25	Total functional expenses. Add lines 1 through 24e	726,859,236	670,923,508	55,935,728	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 Check if Schedule O contains a response to any question in this Part X ...............
	1	Cashnon-interest-bearing .............	553,097	1	453,958
2	Savings and temporary cash investments .........	187,873,688	2	61,327,151
3	Pledges and grants receivable, net ...........		3
4	Accounts receivable, net .............	112,324,645	4	182,005,953
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
			5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	11,856,589	8	14,442,833
9	Prepaid expenses and deferred charges ..........	10,973,507	9	14,164,667
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,180,259,222
b	Less: accumulated depreciation .....	10b	597,618,917	521,743,728	10c	582,640,305
11	Investments—publicly traded securities ..........	19,933,781	11	20,115,777
12	Investments—other securities. See Part IV, line 11 .....		12
13	Investments—program-related. See Part IV, line 11 .....		13
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........	49,776,241	15	51,132,977
16	Total assets. Add lines 1 through 15 (must equal line 34)......	915,035,276	16	926,283,621
	17	Accounts payable and accrued expenses .........	108,713,561	17	120,965,568
18	Grants payable .................	1,003,962	18	1,527,412
19	Deferred revenue ................		19
20	Tax-exempt bond liabilities .............	4,770,000	20	2,450,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	2,240,755	23	1,984,569
24	Unsecured notes and loans payable to unrelated third parties ....		24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	733,563,513	25	645,068,840
26	Total liabilities. Add lines 17 through 25.........	850,291,791	26	771,996,389
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	47,300,049	27	134,829,325
28	Temporarily restricted net assets ...........	630,552	28	627,847
29	Permanently restricted net assets ...........	16,812,884	29	18,830,060
	Organizations that do not follow SFAS 117 (ASC 958), 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 ...........	64,743,485	33	154,287,232
34	Total liabilities and net assets/fund balances ........	915,035,276	34	926,283,621

- 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

2012

Open to Public
Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

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 described in 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. See section 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 - Non-functionally integrated

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 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 monetary support
(i) Name of supported organization	(ii) EIN	Yes	No	Yes	No	Yes	No	(vii) Amount of monetary support


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2012

Page 2

Part II

Support Schedule for Organizations Described in Sections 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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
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 2012 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2011 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2012. 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—2011. If the organization did not check a 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—2012. 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—2011. 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) 2012

Page 3

Part III

Support Schedule for Organizations Described in Section 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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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) 2008	(b) 2009	(c) 2010	(d) 2011	(e) 2012	(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.)..

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 2012 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2011 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2012 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2011 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2012. 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—2011. 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) 2012

Page 4

Part IV

Supplemental Information. Complete this part to provide the explanations required by Part II, line 10; Part II, line 17a or 17b; and 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) 2012

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

2012

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 2

Name of organization READING HOSPITAL

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 3

Name of organization READING HOSPITAL

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) (2012)

Schedule B (Form 990, 990-EZ, or 990-PF) (2012)

Page 4

Name of organization
READING HOSPITAL

Employer identification number

23-1352204

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) (2012)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

For Organizations Exempt From Income Tax Under section 501(c) and section 527
SchCMd Bullet

Complete if the organization is described below. SchCMd Bullet

Attach to Form 990 or Form 990-EZ.
SchCMd Bullet

See separate instructions.

OMB No. 1545-0047

2012

Open to Public
Inspection

If the organization answered “Yes” to Form 990, Part IV, Line 3, or Form 990-EZ, Part V, line 46 (Political Campaign Activities), then
Round Bullet

Section 501(c)(3) organizations: Complete Parts I-A and B. Do not complete Part I-C.
Round Bullet

Section 501(c) (other than section 501(c)(3)) organizations: Complete Parts I-A and C below. Do not complete Part I-B.
Round Bullet

Section 527 organizations: Complete Part I-A only.
If the organization answered “Yes” to Form 990, Part IV, Line 4, or Form 990-EZ, Part VI, line 47 (Lobbying Activities), then
Round Bullet

Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)): Complete Part II-A. Do not complete Part II-B.
Round Bullet

Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)): Complete Part II-B. Do not complete Part II-A.
If the organization answered “Yes” to Form 990, Part IV, Line 5 (Proxy Tax) or Form 990-EZ, Part V, line 35c (Proxy Tax), then
Round Bullet

Section 501(c)(4), (5), or (6) organizations: Complete Part III.

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

Part I-A

Complete if the organization is exempt under section 501(c) or is a section 527 organization.

Provide a description of the organization’s direct and indirect political campaign activities in Part IV.

Political expenditures .................................... SchCMd Bullet

Volunteer hours ........................................

Part I-B

Complete if the organization is exempt under section 501(c)(3).

Enter the amount of any excise tax incurred by the organization under section 4955 ......... SchCMd Bullet

Enter the amount of any excise tax incurred by organization managers under section 4955 ...... SchCMd Bullet

If the organization incurred a section 4955 tax, did it file Form 4720 for this year? ..............

Yes No

Was a correction made? .........................................

Yes No

If "Yes," describe in Part IV.

Part I-C

Complete if the organization is exempt under section 501(c), except section 501(c)(3).

Enter the amount directly expended by the filing organization for section 527 exempt function activities SchCMd Bullet

Enter the amount of the filing organization's funds contributed to other organizations for section 527 exempt function activities ................................... SchCMd Bullet

Total exempt function expenditures. Add lines 1 and 2. Enter here and on Form 1120-POL, line 17b.. SchCMd Bullet

Did the filing organization file Form 1120-POL for this year? ..........................

Yes No

Enter the names, addresses and employer identification number (EIN) of all section 527 political organizations to which the filing
organization made payments. For each organization listed, enter the amount paid from the filing organization’s funds. Also enter the amount of political contributions received that were promptly and directly delivered to a separate political organization, such as a separate segregated fund or a political action committee (PAC). If additional space is needed, provide information in Part IV.

(a) Name	(b) Address	(c) EIN	(d) Amount paid from filing organization's funds. If none, enter -0-.	(e) Amount of political contributions received and promptly and directly delivered to a separate political organization. If none, enter -0-.

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2012

Page 2

Part II-A

Complete if the organization is exempt under section 501(c)(3) and filed Form 5768 (election under section 501(h)).

A Check SchCMd Bullet

if the filing organization belongs to an affiliated group (and list in Part IV each affiliated group member's name, address, EIN, expenses, and share of excess lobbying expenditures).
B Check SchCMd Bullet

if the filing organization checked box A and "limited control" provisions apply.

Limits on Lobbying Expenditures (The term "expenditures" means amounts paid or incurred.)		(b) Affiliated group totals
1a	Total lobbying expenditures to influence public opinion (grass roots lobbying) ......
b	Total lobbying expenditures to influence a legislative body (direct lobbying) .......
c	Total lobbying expenditures (add lines 1a and 1b) ...................
d	Other exempt purpose expenditures ........................
e	Total exempt purpose expenditures (add lines 1c and 1d) ...............
f	Lobbying nontaxable amount. Enter the amount from the following table in both columns.
	If the amount on line 1e, column (a) or (b) is:The lobbying nontaxable amount is:
	Not over $500,00020% of the amount on line 1e.
	Over $500,000 but not over $1,000,000$100,000 plus 15% of the excess over $500,000.
	Over $1,000,000 but not over $1,500,000$175,000 plus 10% of the excess over $1,000,000.
	Over $1,500,000 but not over $17,000,000$225,000 plus 5% of the excess over $1,500,000.
	Over $17,000,000$1,000,000.

g	Grassroots nontaxable amount (enter 25% of line 1f) .................
h	Subtract line 1g from line 1a. If zero or less, enter -0-. ................
i	Subtract line 1f from line 1c. If zero or less, enter -0-. ................
j	If there is an amount other than zero on either line 1h or line 1i, did the organization file Form 4720 reporting section 4911 tax for this year? ......................................	Yes No

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2009	(b) 2010	(c) 2011	(d) 2012	(e) Total

2a	Lobbying nontaxable amount

b	Lobbying ceiling amount (150% of line 2a, column(e))

c	Total lobbying expenditures

d	Grassroots nontaxable amount

e	Grassroots ceiling amount (150% of line 2d, column (e))

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2012

Page 3

Part II-B

Complete if the organization is exempt under section 501(c)(3) and has NOT filed Form 5768 (election under section 501(h)).

For each “Yes” response to lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

During the year, did the filing organization attempt to influence foreign, national, state or local legislation, including any attempt to influence public opinion on a legislative matter or referendum, through the use of:

Volunteers? .........................................

Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? ....

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

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

Publications, or published or broadcast statements? .......................

Grants to other organizations for lobbying purposes? .......................

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

Yes

32,000

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

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

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

32,000

Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? .....

If "Yes," enter the amount of any tax incurred under section 4912 .................

If "Yes," enter the amount of any tax incurred by organization managers under section 4912 .....

If the filing organization incurred a section 4912 tax, did it file Form 4720 for this year? .......

Part III-A

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6).

Yes

Were substantially all (90% or more) dues received nondeductible by members? ................

Did the organization make only in-house lobbying expenditures of $2,000 or less? ................

Did the organization agree to carry over lobbying and political expenditures from the prior year? ..........

Part III-B

Complete if the organization is exempt under section 501(c)(4), section 501(c)(5), or section 501(c)(6) and if either (a) BOTH Part III-A, lines 1 and 2, are answered “No” OR (b) Part III-A, line 3, is answered “Yes."

Dues, assessments and similar amounts from members .....................

Section 162(e) nondeductible lobbying and political expenditures (do not include amounts of political
expenses for which the section 527(f) tax was paid).

Current year .........................................

Carryover from last year ....................................

Total ............................................

Aggregate amount reported in section 6033(e)(1)(A) notices of nondeductible section 162(e) dues .

If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excess does the organization agree to carryover to the reasonable estimate of nondeductible lobbying and political expenditure next year? ................................

Taxable amount of lobbying and political expenditures (see instructions) ..............

Part IV

Supplemental Information

Complete this part to provide the descriptions required for Part l-A, line 1; Part l-B, line 4; Part l-C, line 5; Part II-A (affiliated group list); Part II-A, line 2; and Part ll-B, line 1. Also, complete this part for any additional information.

Identifier	Return Reference	Explanation
	SCHEDULE C, PART II-B, LINE 1	PART II-B, LINE 1G A RETAINER FEE WAS PAID TO THE LAW FIRM OF STEVENS AND LEE TO ENGAGE DIRECT CONTACT WITH LEGISLATORS. THE PURPOSE OF THEIR CONTACT WAS TO PROMOTE THE GENERAL INTERESTS AND WELFARE OF READING HOSPITAL DURING THESE DIFFICULT ECONOMIC TIMES IN THE HEALTH CARE FIELD.

Schedule C (Form 990 or 990EZ) 2012

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

2012

Open to Public Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

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 section 170(h)(4)(B)(ii)? .......................................

Yes No

In Part XIII, 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 XIII, 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 Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 52283D

Schedule D (Form 990) 2012

Page 2

Part III

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

Using the organization’s acquisition, 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 XIII.

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 XIII 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 XIII. Check here if the explanation has been provided in Part XIII ........

Part V

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

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back
1a	Beginning of year balance ....	5,069,623	4,819,664	4,011,593	3,521,023
b	Contributions ........	434,567	29,254		120,701
c	Net investment earnings, gains, and losses	528,969	249,875	850,421	397,389
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....	35,242	28,871	42,352	27,518
g	End of year balance ......	6,827,185	5,069,623	4,819,664	4,011,593

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

100.000 %

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

Describe in Part XIII 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 .................	21,329,748		21,329,748
b	Buildings ................	461,392,123	234,875,744	226,516,379
c	Leasehold improvements ............
d	Equipment ................	639,111,267	362,743,173	276,368,094
e	Other .................	58,426,084		58,426,084
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				582,640,305

Schedule D (Form 990) 2012

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) NON CURRENT TRUST FUNDS				20,032,627
(2) THIRD PARTY RECV'S				8,198,991
(3) MEDICAL MALPRACTICE TRUST FUND				5,332,300
(4) MALPRACTICE TRUST				4,500,000
(5) LT DEFERRED &REVENUE BOND DEBENTURES				2,878,958
(6) DEFERRED TRUST				2,873,977
(7) DUE FROM AFFILIATES				2,613,524
(8) WORK COMP TF				2,450,000
(9) SPRING RIDGE JV				1,851,141
(10) BERKS PHYSICAL THERAPY				237,864
(11) GIFT ANNUITIES				133,563
(12) VEBA TRUST				30,032
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				51,132,977

Part X

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

1.(a) Description of liability		(b) Book value
Federal income taxes
LT LOAN - AFFILIATE PAYABLE		484,952,763
PENSION PAYABLE		112,628,171
ESTIMATED SELF INSURANCE COSTS		43,781,001
DEFERRED REVENUE		3,203,636
NMG SWAP		503,269
DUE TO AFFILIATES



Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		645,068,840
2. Fin 48 (ASC 740) Footnote. In Part XIII, 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 (ASC 740). Check here if the text of the footnote has been provided in Part XIII .....................................................

Schedule D (Form 990) 2012

Page 4

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

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

Part XIII

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, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

Identifier	Return Reference	Explanation
LIABILITY UNDER FIN 48 FOOTNOTE	SCHEDULE D, PAGE 3, PART X	THE COMPANY EVALUATES UNCERTAIN TAX POSITIONS USING A TWO-STEP APPROACH FOR RECOGNIZING AND MEASURING TAX BENEFITS TAKEN OR EXPECTED TO BE TAKEN IN AN UNRELATED BUSINESS ACTIVITY TAX RETURN AND DISCLOSURES REGARDING UNCERTAINTIES IN TAX POSITIONS. NO ADJUSTMENTS TO THE FINANCIAL STATEMENTS WERE REQUIRED AS A RESULT OF THIS EVALUATION.

Schedule D (Form 990) 2012

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

2012

Open to Public Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

Part I

Financial Assistance 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) as a factor in determining 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 as a factor in determining 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 used factors other than FPG in determining 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, as a factor in determining 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"? ..............

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

Yes

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

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

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

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

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

Financial Assistance and Means-Tested Government Programs		(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) ..	17,422,245		17,422,245	2.400 %
b	Medicaid (from Worksheet 3, column a) ....	117,464,596	82,164,654	35,299,942	4.860 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .
d	Total Financial Assistance and Means-Tested Government Programs .	134,886,841	82,164,654	52,722,187	7.250 %
Other Benefits		3,637,044	14,290	3,622,754	0.500 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	3,637,044	14,290	3,622,754	0.500 %
f	Health professions education (from Worksheet 5) ..	25,240,935	12,975,326	12,265,609	1.690 %
g	Subsidized health services (from Worksheet 6) ..
h	Research (from Worksheet 7)	3,106,397		3,106,397	0.430 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	1,824,454		1,824,454	0.250 %
j	Total. Other Benefits ..	33,808,830	12,989,616	20,819,214	2.860 %
k	Total. Add lines 7d and 7j .	168,695,671	95,154,270	73,541,401	10.120 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2012

Schedule H (Form 990) 2012

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.

		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(c) Total community building expense	(d) Direct offsetting revenue	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other
10	Total

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. Explain in Part VI the methodology used by the organization to estimate this amount. ......

48,424,699

Enter the estimated amount of the organization's bad debt expense attributable to patients eligible under the organization's financial assistance policy. Explain in Part VI the methodology used by the organization to estimate this amount and the rationale, if any, for including this portion of bad debt as community benefit. ......

28,570,272

Provide in Part VI the text of the footnote to the organization’s financial statements that describes bad debt expense or the page number on which this footnote is contained in the attached financial statements.

Section B. Medicare

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

204,887,641

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

271,199,196

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

-66,311,555

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

Part IV

Management Companies and Joint Ventures(owned 10% or more by officers, directors, trustees, key employees, and physicians—see instructions)

(a) Name of entity	(b) Description of primary activity of entity	(c) Organization's profit % or stock ownership %	(e) Physicians' profit % or stock ownership %
1TRH SURGICENTER LLC	OUTPATIENT SURGERY	50.000 %	50.000 %
2READING BERKS PT LLC	PHYSICAL THERAPY	40.000 %
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2012

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?1 Name, address, and primary website address
1	READING HOSPITAL SIXTH AVE SPRUCE ST WEST READING,PA19611	X	X	X	X

Schedule H (Form 990) 2012

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices

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

	READING HOSPITAL
Name of hospital facility or facility reporting group

For single facility filers only: line Number of Hospital Facility (from Schedule H, Part V, Section A)

Yes

Community Health Needs Assessment (Lines 1 through 8c are optional for tax years begining on or before March 23, 2012)

During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 9....................

Yes

If “Yes,” indicate what the CHNA report describes (check all that apply):

A definition of the community served by the hospital facility

Demographics of the community

Existing health care facilities and resources within the community that are available to respond to the health needs of the community

How data was obtained

The health needs of the community

Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minority groups

The process for identifying and prioritizing community health needs and services to meet the community health needs

The process for consulting with persons representing the community’s interests

Information gaps that limit the hospital facility’s ability to assess the community’s health needs

Other (describe in Part VI)

Indicate the tax year the hospital facility last conducted a CHNA: 20

In conducting its most recent CHNA, did the hospital facility take into account input from representatives of the community served by the hospital facility, including those with special knowledge of or expertise in public health? 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 ....................

Yes

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If “Yes,” list the other hospital facilities in Part VI................................

Yes

Did the hospital facility make its CHNA report widely available to the public? .............

Yes

If “Yes,” indicate how the CHNA report was made widely available (check all that apply):

Hospital facility’s website

Available upon request from the hospital facility

Other (describe in Part VI)

If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that apply to date):

Adoption of an implementation strategy that addresses each of the community health needs identified through the CHNA

Execution of the implementation strategy

Participation in the development of a community-wide plan

Participation in the execution of a community-wide plan

Inclusion of a community benefit section in operational plans

Adoption of a budget for provision of services that address the needs identified in the CHNA

Prioritization of health needs in its community

Prioritization of services that the hospital facility will undertake to meet health needs in its community

Other (describe in Part VI)

Did the hospital facility address all of the needs identified in its most recently conducted CHNA? If “No,” explain in Part VI which needs it has not addressed and the reasons why it has not addressed such needs ........

Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA as required by section 501(r)(3)? ...........................

If "Yes" to line 8a, did the organization file Form 4720 to report the section 4959 excise tax? ......

If "Yes" to line 8b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $

Schedule H (Form 990) 2012

Page

Part VFacility Information (continued)

Financial Assistance Policy			Yes	No
9	Did the hospital facility have in place during the tax year a written financial assistance policy that:
	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?	9	Yes
10	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........	10	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 100.0% If "No," explain in Part VI the criteria the hospital facility used.
11	Used FPG to determine eligibility for providing discounted care?.................	11	Yes
	If “Yes,” indicate the FPG family income limit for eligibility for discounted care: 300.0% If "No," explain in Part VI the criteria the hospital facility used.
12	Explained the basis for calculating amounts charged to patients?.................	12	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)
13	Explained the method for applying for financial assistance?...................	13	Yes
14	Included measures to publicize the policy within the community served by the hospital facility?.......	14	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 website
b	The policy was attached to 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 on admission to the hospital facility
f	The policy was available upon request
g	Other (describe in Part VI)
Billing and Collections
15	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?.......	15	Yes
16	Check all of the following 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)
17	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?..........	17		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)

Schedule H (Form 990) 2012

Page

Part VFacility Information (continued)

Indicate which efforts the hospital facility made before initiating any of the actions listed in line 17 (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the patients regarding the patients’ bills

Documented its determination of whether patients were eligible for financial assistance under the hospital facility’s financial assistance policy

Other (describe in Part VI)

Policy Relating to Emergency Medical Care

Yes

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?..........

Yes

If “No,” indicate why:

The hospital facility did not provide care for any emergency medical conditions

The hospital facility’s policy was not in writing

The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)

Other (describe in Part VI)

Charges to Individuals Eligible for Assistance under the FAP (FAP-Eligible Individuals)

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.

The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts that can be charged

The hospital facility used the average of its three lowest negotiated commercial insurance rates when calculating the maximum amounts that can be charged

The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

Other (describe in Part VI)

During the tax year, did the hospital facility charge any FAP-eligible individuals 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? ............................

If “Yes,” explain in Part VI.

During the tax year, did the hospital facility charge any FAP-eligible individuals an amount equal to the gross charge for any service provided to that individual? .........................

If “Yes,” explain in Part VI.

Schedule H (Form 990) 2012

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?1
Name and address		Type of Facility (describe)
1	TRHMC SURGICENTER AT SPRING RIDGE 2603 KEISER BLVD READING,PA19610	AMBULATORY SURGERY CENTER
2
3
4
5
6
7
8
9
10

Schedule H (Form 990) 2012

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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; Part V, Section A; and Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.
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.
8	Facility reporting group(s). If applicable, for each hospital facility in a facility reporting group provide the descriptions required for Part V, Section B, lines 1j, 3, 4, 5c, 6i, 7, 10, 11, 12h, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22.

Identifier	ReturnReference	Explanation
SUBSIDIZED HEALTH SERVICES EXPLANATION	PART I LINE 7G	READING HOSPITAL UTILIZES THE IRS GUIDELINES IN DETERMINING THE RATIO OF PATIENT COST TO CHARGES TO ESTIMATE THE COST OF EACH SUBSIDIZED HEALTH SERVICE THIS CALCULATION DOES NOT REFLECT READING HOSPITALS OPERATIONAL LOSS CURRENTLY THE HOSPITAL PROVIDES BEHAVIORAL HEALTH AND OUTPATIENT SERVICES TO THE COMMUNITY ON A SUBSIDIZED BASIS AS THESE SERVICES REFLECT AN OPERATIONAL LOSS READING HOSPITAL IS A NOTFORPROFIT HEALTHCARE CENTER PROVIDING COMPREHENSIVE ACUTE CARE POSTACUTE CARE REHABILITATION BEHAVIORAL AND OCCUPATIONAL HEALTH SERVICES TO THE PEOPLE OF BERKS AND ADJOINING COUNTIES READING HOSPITAL LIES ON THE OUTSKIRTS OF THE CITY OF READING WHICH HAS AN ESTIMATED POPULATION OF 88414 IN 2011 AND CONTAINS 12 MEDICALLY UNDERSERVED CENSUS TRACTS 37 OF THE RESIDENTS OF THE CITY LIVE BELOW FEDERAL POVERTY LEVELS THE HEALTH CARE NEEDS TRACK CLOSELY TO THE HIGH POVERTY RATE IN THE CITY THE ADULT PREVALENCE OF DIABETES THE PROPORTION OF ADULTS WITH DIAGNOSED HIGH BLOOD PRESSURE THE PERCENT OF WOMEN WHO RECEIVE NO PRENATAL CARE IN THE FIRST TRIMESTER THE PEDIATRIC AND ADULT ASTHMA HOSPITAL ADMISSION RATES AND THE THREEYEAR AVERAGE PNEUMONIA DEATH RATE ALL EXCEED THE NATIONAL BENCHMARKS FOR THESE INDICATORS THE MISSION OF READING HOSPITAL IS TO PROVIDE COMPASSIONATE ACCESSIBLE HIGH QUALITY COST EFFECTIVE HEALTH CARE TO THE COMMUNITY TO PROMOTE HEALTH TO EDUCATE HEALTHCARE PROFESSIONALS AND TO PARTICIPATE IN APPROPRIATE CLINICAL RESEARCH READING HOSPITAL IS COMMITTED TO SERVING THE NEEDS OF THE COMMUNITY EVEN WHEN THE NEEDED SERVICES CAUSE A DRAIN ON CAPITAL RESOURCES READING HOSPITAL IS A REGIONAL REFERRAL CENTER FOR BEHAVIORAL HEALTH SERVICES READING HOSPITAL PROVIDES APPROXIMATELY ONETHIRD OF ALL INPATIENT MENTAL HEALTH SERVICES USED BY THE RESIDENTS OF BERKS COUNTY AND OVER 50 AMONG PATIENTS AGE 60 ANOTHER MENTAL HEALTH PROVIDER HAVEN BEHAVIORAL HEALTH HAS RECENTLY ESTABLISHED A TREATMENT FACILITY IN THE CITY OF READING OFFERING MENTAL HEALTH SERVICES READING HOSPITAL TREATS NEARLY 40 OF BERKS COUNTY PATIENTS REQUIRING INPATIENT SERVICES FOR SUBSTANCE ABUSE THE OTHER NONPROFIT HOSPITAL IN THE AREA SERVES ONLY 4 OF THESE PATIENTS READING HOSPITAL HAS RECENTLY EXPANDED AND RELOCATED ITS INPATIENT DETOXIFICATION CENTER TO MEET THE GROWING NEED FOR THESE SERVICES IF READING HOSPITAL CEASED TO PROVIDE SUBSTANCE ABUSE SERVICES PATIENTS WOULD HAVE TO TRAVEL OUT OF THE AREA FOR TREATMENT BECAUSE LOCAL PROVIDERS WOULD NOT HAVE THE ABILITY TO MEET THE NEED READING HOSPITAL PERENNIALLY RANKS AMONG THE TOP FOUR PENNSYLVANIA HOSPITALS IN OUTPATIENT SERVICES BECAUSE OF THE HIGH POVERTY RATE AND THE HIGH NUMBER OF UNINSURED AND MEDICAIDCHIP RESIDENTS OUTPATIENT SERVICES ARE OFTEN PROVIDED WITHOUT ADEQUATE COMPENSATION
COSTING METHODOLOGY EXPLANATION	PART I LINE 7	IN THE CHARITY CARE AND MEANSTESTED GOVERNMENT PROGRAMS SECTION OF LINE 7 A COST TO CHARGE RATIO DEVELOPED FROM OUR MEDICARE COST REPORT IS UTILIZED
COLLECTION PRACTICES EXPLANATION	PART III LINE 9B	READING HOSPITALS DEBT COLLECTION POLICY DOES NOT CONTAIN ANY SPECIFIC PROVISIONS FOR REFERRING A PATIENT TO FINANCIAL ASSISTANCE BECAUSE THOSE QUALIFYING FOR FINANCIAL ASSISTANCE WILL HAVE BEEN ADDRESSED BY THE FINANCIAL ASSISTANCE POLICY BEFORE AN ACCOUNT GETS TO THE COLLECTION STAGE
PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE	PART VI	READING HOSPITALS COMMITMENT TO PROVIDING AFFORDABLE CAREC2PAC PROGRAM OFFERS FINANCIAL COUNSELING AND PROVIDES DISCOUNTS FOR UNINSURED PATIENTS C2PAC MAKES INFORMATION AND COUNSELING SERVICES MORE READILY AVAILABLE TO ALL QUALIFIED PATIENTS PATIENTS ARE ENCOURAGED TO ENTER THE C2PAC PROGRAM AS EARLY IN THE TREATMENT PROCESS AS POSSIBLE ALL C2PAC PATIENTS WILL BE AFFORDED THE OPPORTUNITY TO MEET WITH CERTIFIED PATIENT FINANCIAL COUNSELORS AND RESOURCE ELIGIBILITY SPECIALISTS TO DETERMINE ELIGIBILITY FOR PROGRAMS SUCH AS MEDICAL ASSISTANCE DISABILITY COBRA PA FAIR CARE CHARITY CARE AND RECEIVE INFORMATION ON AVAILABLE COMMUNITY PROGRAMS C2PAC INCLUDES URGENT NONELECTIVE EMERGENT SERVICES AND SEVERAL OTHER PREAPPROVED AND PRESCREENED SERVICES IMPLANTABLES HIGHCOST DRUGS DME AND CONTRACTED SERVICES WILL BE PROVIDED TO THE PATIENT AT HOSPITAL COST
COMMUNITY INFORMATION	PART VI	THE READING HOSPITAL SERVES BERKS COUNTY ALONG WITH PARTS OF MONTGOMERY CHESTER LEBANON LANCASTER AND SCHUYLKILL COUNTIES THE POPULATION OF THE TOTAL SERVICE AREA IS ABOUT 754000 BERKS COUNTY PROFILE BERKS COUNTY POPULATION IS 411442 THERE IS A LARGE POPULATION ORIGINATED BY BIRTH IN THE COUNTY 75 OF RESIDENTS WERE BORN IN PENNSYLVANIA 15 WERE BORN ELSEWHERE IN THE UNITED STATES 4 WERE BORN IN PUERTO RICO US ISLANDS OR ABROAD TO AMERICAN PARENTS AND 6 WERE FOREIGN BORN THE RACIAL MIX INCLUDES 90 WHITE 6 BLACK 1 ASIAN 1 SOME OTHER RACE AND 2 OF MIXED RACE THERE IS A LARGE HISPANIC POPULATION IN BERKS COUNTY ABOUT 16 OF RESIDENTS CLASSIFY THEMSELVES AS HISPANIC AND 12 OF ALL RESIDENTS AGES 6 SPEAK SPANISH AT HOME 16 PERCENT OF BERKS COUNTY RESIDENTS AGE 25 HAVE LESS THAN A HIGH SCHOOL EDUCATION WHEREAS 22 HOLD A COLLEGE BACHELORS DEGREE OR HIGHER THE MEDIAN HOUSEHOLD INCOME IN BERKS COUNTY IS 54823 13 PERCENT OF BERKS COUNTY RESIDENTS LIVE IN POVERTY THIS FIGURE INCLUDES 20 OF ALL CHILDREN UNDER AGE 18 AND 7 OF ALL SENIORS AGE 65 CITY OF READING PROFILE BERKS COUNTY INCLUDES THE CITY OF READING WHICH HAS A MORE DIVERSE POPULATION THAN THE REST OF THE COUNTY 52 OF THE RESIDENTS WERE BORN IN PENNSYLVANIA 18 WERE BORN ELSEWHERE IN THE UNITED STATES 14 WERE BORN IN PUERTO RICO US ISLANDS OR ABROAD TO AMERICAN PARENTS AND 17 WERE FOREIGN BORN THE RACIAL MIX INCLUDES 48 WHITE 13 BLACK 1 ASIAN 32 SOME OTHER RACE AND 6 OF MIXED RACE THE MAJORITY OF THE POPULATION OF THE CITY OF READING IS HISPANIC ABOUT 58 OF THE RESIDENTS CLASSIFY THEMSELVES AS HISPANIC AND 46 SPEAK SPANISH IN THEIR HOMES THIRTYFIVE PERCENT OF READING RESIDENTS AGE 25 HAVE NOT GRADUATED FROM HIGH SCHOOL AND ONLY 9 HAVE ATTAINED A BACHELORS DEGREE OR HIGHER MANY READING RESIDENTS ARE POOR AND THE MEDIAN INCOME IN THE CITY IS ONLY 27416 OVER ONETHIRD OF THE RESIDENTS 37 LIVE BELOW THE FEDERAL POVERTY LIMIT FPL THIS FIGURE INCLUDES OVER HALF 51 OF ALL CHILDREN UNDER AGE 18 AND 17 OF ALL SENIORS AGE 65
HEALTH OF COMMUNITY IN RELATION TO EXEMPT PURPOSE	PART VI	DESCRIPTION OF ACHIEVEMENTS IN FISCAL 2013 RELATING TO EXEMPT PURPOSE 1PROVIDING HEALTH CARE INPATIENT DISCHARGES 27543 INPATIENT DAYS 174576 BIRTHS 3677 EMERGENCY SERVICES 130755 2 PROMOTING HEALTH HEALTH OUTREACH FOR CHILDREN NEWBORNS THROUGH TEENS OPERATE CHILDRENS HEALTH CENTER PROVIDE AMBULATORY CARE TO PEDIATRIC PATIENTS WHO ARE MEDICALLY UNDERSERVED 19550 VISITS PROVIDES EACH CHILD WITH A FREE BOOK THROUGH IT REACH OUT AND READ PROGRAM TO IMPROVE LITERACY AND DEVELOP A CHILDS LIFELONG PASSION FOR READING HEALTH OUTREACH FOR ADULTS OPERATE WOMENS HEALTH CENTER OFFERING MEDICALLY UNDERSERVED WOMEN BOTH OBSTETRICAL AND GYNECOLOGICAL CARE OPERATE CENTER FOR PUBLIC HEALTH OFFERS CARE TO INDIVIDUALS DIAGNOSED WITH AIDS OR WHO ARE HIV POSITIVE 1889 PATIENT REGISTRATIONS OPERATE OUTPATIENT SERVICES ADULT CLINICS PROVIDES PRIMARY AND SUBSPECIALTY CARE TO MEDICALLY UNDERSERVED ADULTS 19839 VISITS HEALTH OUTREACH IMPACTING ALL AGES OPERATE AN ACCREDITED TRAUMA CENTER THAT PROVIDED THIS LIFESAVING LEVEL OF CARE TO 1328 INDIVIDUALS LAST YEAR PROVIDE TRAUMA PREVENTION EDUCATION TO THE GENERAL COMMUNITY AND PROFESSIONAL EDUCATION TO EMS AND HOSPITAL PROVIDERS OPERATE A 247 EMERGENCY DEPARTMENT OPERATE THE READING HEALTH DISPENSARY AND ITS SECOND STREET SATELLITE PROVIDE PRIMARY CARE TO FAMILIES AND ADULTS MEDICALLY UNDERSERVED NEW OFFERING MIDWIFERY CARE TO PREGNANT WOMEN 2297 VISITS OPERATE A SCHOOL OF HEALTH SCIENCES TO PROVIDE COLLEGELEVEL TRAINING IN FIVE HEALTHCARE CAREERS NURSING RADIOLOGIC TECHNOLOGY CLINICAL PASTORAL CARE SURGICAL TECHNOLOGY PARAMEDIC MEDICINE OPERATE A SCHOOL OF CLINICAL LABORATORY SCIENCE TO PROVIDE THE FOURTH YEAR OF COLLEGE WORK TO STUDENTS INTERESTED IN CAREERS IN LABORATORY MEDICINE OPERATE A 247 DRUG AND ALCOHOL CENTER WITH INPATIENT DETOXIFICATION DROPIN SERVICE AND SUPPORT GROUPS MAINTAIN 247 INTERPRETING SERVICES 21 ONSITE SPANISHENGLISH INTERPRETERS AND 1 TRANSLATOR FOR WRITTEN COMMUNICATIONS NETWORK OF 247 VIDEOREMOTE INTERPRETING STATIONS AND TELEPHONES FOR ANY LANGUAGE MAINTAIN 247 SIGN LANGUAGE SERVICES PARTNERSHIP WITH BERKS DEAF AND HARD OF HEARING TO PROVIDE CERTIFIED SIGN LANGUAGE INTERPRETER AS NEEDED ESTABLISHED 247 VIDEOREMOTE SIGN LANGUAGE INTERPRETING SERVICE PROVIDES 247 CHAPLAINCY SERVICES PROGRAM TO PROVIDE PATIENTS AND STAFF WITH SUPPORT FOR SPIRITUAL CONCERNS DEVELOPED PALLIATIVE CARE SERVICES TO SUPPORT SERIOUSLY ILL PATIENTS AND FAMILIES IN UNDERSTANDING HEALTH PROBLEM AND OPTIONS PROVIDE INPATIENT HOSPICE SERVICES WITH APPROPRIATE NETWORKING FOR OUTPATIENT HOSPICE CARE HIRED A SOCIAL WORKER TO MANAGE PATIENTS WHO HAVE FREQUENTED THE ED WITH MINOR COMPLAINTS VISITS PATIENTS IN THEIR HOME TO CONNECT THEM WITH COMMUNITY RESOURCES AND ACCESS TO OUTPATIENT CARE OFFER RAGGEDY ANN THERAPY PROGRAM AS A NONTHREATENING METHOD OF ESTABLISHING COMMUNICATION WITH ANXIOUS OR DEPRESSED PATIENTS OFFER PAWS FOR WELLNESS AND OTHER PET THERAPY PROGRAMS AT NO CHARGE TO PATIENTS OFFERS NO ONE DIES ALONE PROGRAM THROUGH SPECIALLY TRAINED VOLUNTEERS PROVIDE FREE VALET PARKING TO PATIENTS AND THEIR VISITORS OFFER WHEELCHAIRS AND ESCORTS TO SUPPORT MEDICALLY FRAGILE PATIENTS SUPPORT ORGAN DONATION COMMUNICATION AND PROCESS EARNED RECOGNITION FROM THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES FOR LEVEL OF SUCCESS MAINTAIN HELPLINE CALL CENTER FOR FREE INFORMATION ON HOSPITAL SERVICES PHYSICIANS HEALTH TOPICS AND OR LOCAL SUPPORT GROUPS EDUCATING HEALTHCARE PROFESSIONALSCONDUCTING APPROPRIATE RESEARCH PREPARING STUDENTS FOR CAREERS IN HEALTH CARE HOSPITAL SCHOOLS ENROLLED GRADUATED CLINICAL PASTORAL EDUCATION 10 8 NURSING 360 132 PARAMEDIC INSTITUTE 20 20 RADIOLOGICAL TECH 37 15 SURGICAL TECH 7 9 PHYSICIANS IN RESIDENCIES 73 29 MEDICAL STUDENTS IN CLERKSHIPS 317 NA ONGOING EDUCATIONRESEARCH OPPORTUNITIES FOR CURRENT HEALTHCARE PROFESSIONALS OFFICE OF RESEARCH CONTINUES TO STIMULATE LOCAL RESEARCH THAT WILL BRING LEADINGEDGE TREATMENT OPTIONS TO BERKS COUNTY WORKS IN CONJUNCTION WITH HOSPITALS INSTITUTIONAL REVIEW BOARD THAT MONITORS ALL CLINICAL RESEARCH PROJECTS CONDUCTED AT READING HOSPITAL ACCREDITED BY THE PENNSYLVANIA MEDICAL SOCIETY TO SPONSOR CONTINUING MEDICAL EDUCATION FOR PHYSICIANS CME DEPARTMENT WITHIN ACADEMIC AFFAIRS DIVISION OVERSEES DEPARTMENTBASED PROGRAMS FOR CME CATEGORY1 AND CATEGORY 2 CREDITS PROVIDES ONGOING EDUCATION FOR STAFF IN ALL CLINICAL DEPARTMENTS PROVIDES ONGOING EDUCATION FOR STAFF IN ALL DEPARTMENTS ON SAFETY COMPLIANCE AND RELATED REGULATORY AND PROFESSIONAL ISSUES INVESTED IN THE FUTURE HEALTH AND WELLBEING OF THE COMMUNITY THROUGH EDUCATION AND RESEARCH ACTIVITIES
AFFILIATED HEALTH CARE INFORMATION	PART VI	THE READING HOSPITAL MEDICAL GROUP AND READING PROFESSIONAL SERVICES ARE TWO GROUPS IN THE HOSPITALS AFFILIATED HEALTH CARE SYSTEM THAT PROVIDE GENERAL AND SPECIALIZED PRACTICE ASSISTANCE TO RH WHICH IS AN ACUTE CARE HOSPITAL PHYSICIANS IN THESE ENTITIES CAN REFER PATIENTS TO THE ACUTE CARE HOSPITAL FOR FURTHER TREATMENT
READING HOSPITAL LINE NUMBER 1 PART V LINE 3	PART V LINE 3	SEE CHNA IMPLEMENTATION REPORT THAT IS ATTACHED KEY INFORMANTS ALSO INCLUDED INDIVIDUALS WITH DIRECT KNOWLEDGE OF SPECIAL POPULATIONS IN BERKS COUNTY INCLUDING LATINOS MIGRANT WORKERS INDIVIDUALS WITH HIVAIDS THE UNINSURED PREGNANT WOMEN OLDER ADULTS AND PERSONS WITH MENTAL HEALTH CONDITIONS FOR INDIVIDUALS NAMES SEE THE ATTACHED IMPLEMENTATION PLAN
READING HOSPITAL LINE NUMBER 1 PART V LINE 4	PART V LINE 4	ST JOSEPH HOSPITAL READING PA
READING HOSPITAL LINE NUMBER 1 PART V LINE 7	PART V LINE 7	LIST OF HEALTH NEEDS THE FACILITY DOES NOT PLAN TO ADDRESS READING HEALTH SYSTEM DOES NOT INTEND TO ADDRESS ACCESS TO HEALTHCARE IE INSURANCE ASTHMA ORAL HEALTH AND SUBSTANCE ABUSE IE BINGE DRINKING IDENTIFICATION AND DESCRIPTION OF HEALTH NEED THE FACILITY DOES NOT INTEND TO MEET AND EXPLAIN WHY ASTHMA CURRENTLY READING HEALTH SYSTEM DOES NOT HAVE THE RESOURCES TO PROVIDE COMMUNITY WELLNESS PROGRAMS FOCUSED ON ASTHMA WE ARE PROPOSING THAT THIS HEALTH ISSUE BE CHARGED TO THE COMMUNITY COALITION WHICH WILL ENCOMPASS A BROAD RANGE OF EXPERTS TO DEAL WITH THIS ISSUE ORAL HEALTH WHILE THE HOSPITAL IS CURRENTLY PLANNING FOR A DENTAL RESIDENCY PROGRAM WE FEEL THERE IS A LACK OF EXPERTISE TO SOLVE THE PROBLEM COUNTYWIDE WE ARE PROPOSING THAT THIS HEALTH ISSUE BE CHARGED TO THE COMMUNITY COALITION WHICH WILL ENCOMPASS A BROAD RANGE OF EXPERTS TO DEAL WITH THIS ISSUE INCLUDING THE POSSIBILITY OF A MOBILE UNIT SUBSTANCE ABUSE IE BINGE DRINKING WHILE THE HOSPITAL TREATS PATIENTS WITH DRUG OVERDOSE WE DO NOT HAVE THE EXPERTISE OR RESOURCES TO HOLD PREVENTION PROGRAMS IN THIS AREA WE ARE LOOKING TO THE CARON FOUNDATION A NATIONAL NONPROFIT ORGANIZATION WHOSE MISSION IS TO PROVIDE TREATMENT TO THOSE AFFECTED BY ALCOHOLISM OR OTHER DRUG ADDICTION FOR FUTURE COLLABORATIONS INCLUDING GRANT OPPORTUNITIES WHERE WE MIGHT SHARE IN RESOURCES TO DEVELOP PROGRAMMING IN ADDITION THIS IS ONE OF THE KEY HEALTH ISSUES THAT WILL BE CHARGED TO THE COMMUNITY COALITION TO HELP ADDRESS
READING HOSPITAL LINE NUMBER 1 PART V LINE 12H	PART V LINE 12H	FAMILY SIZE IS ALSO CONSIDERED
READING HOSPITAL LINE NUMBER 1 PART V LINE 14G	PART V LINE 14G	INFORMATION REGARDING ELIGIBILITY FOR ASSISTANCE IS PROVIDED ON THE HOSPITALS BILLING STATEMENTS AND IN THE PATIENT FINANCIAL BROCHURE THAT IS AVAILABLE TO ALL PATIENTS OPTIONS ARE ALSO REVIEWED WITH PATIENTS WHEN THEY CONTACT THE HOSPITALS CALL CENTER THE HOSPITAL CLINICS PERSONNEL ARE VERSED IN CHARITY CARE POLICY AND THEY WILL DISCUSS THE OPTIONS WITH THE PATIENTS PATIENTS ARE DIRECTED TO THE COUNTY ASSISTANCE OFFICE OR IN THE CASE OF INPATIENTS AND OUTPATIENTS ASSIST THEM WITH FILLING OUT THE APPLICATION WITH ONE OF THE HOSPITALS FINANCIAL COUNSELORS FOR MEDICAL ASSISTANCE OPTIONS ARE ALSO REVIEWED WITH PATIENTS WHO COME INTO THE CASHIERS OFFICE NEAR THE MAIN LOBBY

Schedule H (Form 990) 2012

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

2012

Open to Public
Inspection

Name of the organization
READING HOSPITAL

Employer identification number
23-1352204

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. Part II can be duplicated if additional space is needed.

(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) BERKS COMMUNITY HEALTH CENTER 838 PENN ST READING,PA19602	27-3795179	501C3	1,135,000	HEALTHCARE SVCS

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

Cat. No. 50055P

Schedule I (Form 990) 2012

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.
Part III can be duplicated 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, Part III, column (b), and any other additional information.

Identifier	Return Reference	Explanation

Schedule I (Form 990) 2012

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

2012

Open to Public Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

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 of the expenses described above? If "No," complete Part III to explain....

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

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

Yes

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

Yes

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

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

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

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

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

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

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

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

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

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

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

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

Yes

Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that was
subject to the initial contract exception described in Regulations section 53.4958-4(a)(3)? If "Yes," describe
in Part III .............................

If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulations section 53.4958-6(c)? .........................

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

Cat. No. 50053T

Schedule J (Form 990) 2012

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 (E) amounts for that individual.

(A) Name and Title		(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 and Title		(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)CLINT MATTHEWSPRESIDENT & CEO	(i) (ii)	860,788	110,000	47,880	270,000	17,948	1,306,616
(2)ROBERT A BRIGHAMDIR OF SURGERY	(i) (ii)	713,061	70,000	3,740		15,722	802,523
(3)THERESE SUCHERCOO	(i) (ii)	494,095	107,500	39,312	130,000	17,948	788,855
(4)RICHARD W JONESCFO	(i) (ii)	453,450	50,000	15,595	118,750	23,708	661,503
(5)RICHARD J MABLESENIOR VP PLANNING	(i) (ii)	218,877	50,192	41,847	34,894	15,654	361,464
(6)CARL J SEIDLVICE PRESIDENT	(i) (ii)	203,113	33,462	1,181	29,248	15,642	282,646
(7)MARGARET M BLIGHVICE PRESIDENT	(i) (ii)	199,034	32,559	2,150		15,637	249,380
(8)CHARLES F BARBERAPHYSICIAN	(i) (ii)	393,231	70,200	22,553	28,321	27,186	541,491
(9)NIDHI MAHENDRUPHYSICIAN	(i) (ii)	312,591	29,625	48,655	8,791	8,487	408,149
(10)JOHN BEYERPHYSICIAN	(i) (ii)	347,917	32,575	582			381,074
(11)MATHEW GROVEPHYSICIAN	(i) (ii)	330,084	26,225	23,676	11,407	23,708	415,100
(12)JETTIE HUNTPHYSICIAN	(i) (ii)	278,561	66,853	20,441	14,470	1,252	381,577
(13)DONNA F WEBERVP NURSING	(i) (ii)	123,806	17,878	346,278	27,623	666	516,251
(14)SCOTT R WOLFEFORMER PRESIDENT	(i) (ii)			334,198			334,198

Schedule J (Form 990) 2012

Page 3

Part III

Supplemental Information

Complete this part to provide the information, explanation, or descriptions required for Part I, lines 1a, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part II.
Also complete this part for any additional information.

Identifier	Return Reference	Explanation
SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS	SCHEDULE J, PAGE 1, PART I, LINE 4	CLINT MATTHEWS 0 270,000 0 THERESE SUCHER 0 130,000 0 RICHARD W. JONES 0 118,750 0 DONNA F WEBER 346,278 0 0 SCOTT R WOLFE 334,198 0 0
NON-FIXED PAYMENTS PROVIDED	SCHEDULE J, PAGE 1, PART I, LINE 7	CERTAIN EMPLOYEES ARE ABLE TO ACHIEVE BONUSES BASED UPON PRE-ESTABLISHED TARGETS THAT CAN INVOLVE PATIENT SATISFACTION SCORES, QUALITY INITIATIVES, IMPLEMENTATION OF NEW PROGRAMS AND SERVICES AND FINANCIAL METRICS.

Schedule J (Form 990) 2012

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, line 38a or 40b.
MediumBullet

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.

OMB No. 1545-0047

2012

Open to Public Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

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

Enter the amount of tax incurred by 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-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22

(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	(d) Loan to or from the organization?		(e)Original principal amount	(f)Balance due	(g) In default?		(h) Approved by board or committee?		(i)Written agreement?
(a) Name of interested person	(b) Relationship with organization	(c) Purpose of loan	To	From	(e)Original principal amount	(f)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 assistance	(d) Type of assistance	(e) Purpose of assistance

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2012

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) ROLAND STOCK LLC (JOHN ROLAND)	PARTNER	811,663	LEGAL SERVICES		No
(2) STEVENS & LEE (C THOMAS WORK)	PARTNER	1,406,393	LEGAL SERVICES		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) 2012

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

2012

Open to Public
Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

Identifier	Return Reference	Explanation
ORGANIZATION'S MISSION	FORM 990 - ORGANIZATION'S MISSION	THE MISSION OF THE READING HOSPITAL IS TO PROVIDE COMPASSIONATE, ACCESSIBLE, HIGH QUALITY, COST EFFECTIVE CARE TO THE COMMUNITY: TO PROMOTE HEALTH; TO EDUCATE HEALTHCARE PROFESSIONALS; AND TO PARTICIPATE IN APPROPRIATE CLINICAL RESEARCH. ASK SOMEONE TO DEFINE A HOSPITAL'S ROLE IN THE COMMUNITY, AND MOST OFTEN YOU HEAR ABOUT SERVICES AND DEPARTMENTS, OR ABOUT DOCTORS, NURSES AND OTHER CAREGIVERS. IN ADDITION TO ITS PRIMARY ROLE AS A PROVIDER OF DIRECT CARE, READING HEALTH SYSTEM ADDRESSES ISSUES OUTSIDE THAT REALM THAT IMPACT HEALTH AND WELLNESS. IN FACT, A KEY PART OF OUR MISSION MEANS THE REINVESTMENT OF OUR RESOURCES INTO THESE EFFORTS, WHICH ARE COLLECTIVELY KNOWN AS COMMUNITY BENEFIT. WE ARE PROUD TO REPORT THAT IN OUR LAST FISCAL YEAR, WE COMMITTED MORE THAN 152 MILLION TO THIS CAUSE. OUR CAREGIVERS AND SUPPORT STAFF PARTICIPATE IN HEALTH EDUCATION, FREE SCREENINGS, AND IMMUNIZATIONS. THEY SUPPORT ACTIVITIES FOR INDIVIDUALS WITH SERIOUS OR CHRONIC HEALTH CONDITIONS, ADVANCE SELF-CARE BY INCREASING HEALTHCARE KNOWLEDGE, AND ADDRESS SPECIFIC COMMUNITY NEEDS THROUGH AN ARRAY OF OTHER EDUCATIONAL, SERVICE AND OUTREACH ACTIVITIES. HERE ARE A FEW EXAMPLES OF WHY THESE PROGRAMS REPRESENT THE BEST OF ALL OF US, WORKING TOGETHER FOR THE HEALTH OF OUR COMMUNITY. COMMUNITY HEALTH IMPROVEMENT SERVICES ARE CARRIED OUT TO IMPROVE COMMUNITY HEALTH. THEY EXTEND BEYOND PATIENT CARE ACTIVITIES AND ARE SUBSIDIZED BY READING HEALTH SYSTEM. PROGRAMS ARE OFFERED FOR FREE OR AT A VERY NOMINAL FEE TO ALL COMMUNITY MEMBERS. READING HEALTH SYSTEM PROVIDES HEALTH EDUCATION PROGRAMS DESIGNED TO EDUCATE AND IMPROVE THE HEALTH OF THE COMMUNITY. FREE COMMUNITY BASED CLINICAL CARE IS OFFERED AT VARIOUS TIMES THROUGH OUT THE YEAR AND INCLUDE FREE FLU SHOTS AND CANCER SCREENINGS, WHICH INCLUDE SKIN, CERVICAL, BREAST, AND PROSTATE. DURING FY 2013 APPROXIMATELY 3,000 FLU VACCINES WERE PROVIDED TO COMMUNITY MEMBERS FREE OF CHARGE AND OVER 400 FREE CANCER SCREENINGS WERE GIVEN. PRESCRIPTION MEDICATIONS, MEDICAL EQUIPMENT AND TRANSPORTATION WAS ALSO PROVIDED FREE OF CHARGE FOR PATIENTS WHO DEMONSTRATE NEED. HEARTSAFE BERKS COUNTY IS AN INNOVATIVE PROGRAM THAT PLACES AUTOMATIC EXTERNAL DEFIBRILLATORS (AEDS) IN KEY INSTITUTIONS THROUGHOUT THE COUNTY. AN AED CAN HELP REVIVE A PERSON WHOSE HEART HAS STOPPED BEFORE EMERGENCY MEDICAL PERSONNEL ARRIVE. PHASE ONE OF THE PROGRAM PLACED 245 AEDS - WHICH TYPICALLY COST 1,600 EACH - IN EVERY "FIRST RESPONDER" VEHICLE AND POLICE DEPARTMENT IN THE COUNTY. PHASE TWO EXTENDED TO THE LOCAL HIGH SCHOOLS THROUGHOUT THE COUNTY, TO INSPECT AND, WHERE NEEDED, REPLACE OR INSTALL AEDS. THE PROGRAM ALSO TRAINS FACULTY AND STUDENTS IN CPR AND AED USE - WHICH EXPANDS THE NUMBER OF PEOPLE WITH LIFESAVING SKILLS THROUGHOUT THE COUNTY. AS A RESULT OF THESE EFFORTS, 34 AED'S HAVE BEEN DONATED TO THE LOCAL HIGH SCHOOLS AND A 13 YEAR OLD BOY IN GYM CLASS WAS SAVED BY THE EFFORTS OF HIS TEACHERS AND FELLOW STUDENTS. PHASE THREE, OFFERS CORPORATIONS THE ABILITY TO PURCHASE AEDS AND OFFER TRAINING TO THEIR EMPLOYEES AT READING HOSPITAL'S COST. 30 AEDS HAVE BEEN PURCHASED BY LOCAL ORGANIZATIONS, CHURCHES AND BUSINESSES IN BERKS COUNTY. HEART SAFE HAS ALSO DONATED TO KEY COMMUNITY LOCATIONS IN BERKS COUNTY WHICH INCLUDE: SANTANSER ARENA, BERKS COUNTY COURT HOUSE, AND GOGGLEWORKS TO ENSURE PATRONS AND VISITORS TO BERKS COUNTY ARE HEARTSAFE. THE NEXT PHASE, ALREADY UNDERWAY IS EXTENDING THIS LIFESAVING PROGRAM TO THE FIVE LOCAL COLLEGES AND UNIVERSITIES IN BERKS COUNTY, WHICH INCLUDE ALBRIGHT COLLEGE, ALVERNIA UNIVERSITY, KUTZTOEN UNIVERSITY, PENN STATE UNIVERSITY - BERKS CAMPUS, AND READING AREA COMMUNITY COLLEGE. THE HEARTSAFE TEAM WILL TRAVEL THROUGHOUT THE COUNTY TO TOUR THE COLLEGE CAMPUS, INSPECT THE AEDS AND WHERE NECESSARY DONATE ADDITIONAL DEVICES. HEARTSAFE BERKS COUNTY, THE FIRST PROGRAM OF ITS KIND IN PENNSYLVANIA, IS SUPPORTED BY READING HEALTH SYSTEM IN PARTNERSHIP WITH FRIENDS OF READING HOSPITAL. COMMUNITY BENEFIT TOTAL: 152,526,230 (FISCAL YEAR 2013) DIRECT PATIENT CARE UNREIMBURSED MEDICARE: 66.3 MILLION THE DIFFERENCE BETWEEN MEDICARE CHARGES AND MEDICARE PAYMENTS AND THE ACTUAL COST OF PROVIDING PATIENT CARE. UNREIMBURSED MEDICAID: 35.3 MILLION THE DIFFERENCE BETWEEN MEDICAL ASSISTANCE CHARGES AND MEDICAID PAYMENTS AND THE ACTUAL COST OF PROVIDING PATIENT CARE. BAD DEBT: 10.7 MILLION THE COST OF PROVIDING CARE TO PATIENTS WHOM WE BELIEVE WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER OUR CHARITY CARE POLICY. UNCOMPENSATED CHARITY CARE: 17.4 MILLION FREE HEALTH SERVICES PROVIDED TO PERSONS WHO MEET OUR CRITERIA FOR FINANCIAL ASSISTANCE. THIS AMOUNT REFLECTS THE ACTUAL COST OF PROVIDING CARE. COMMUNITY HEALTH IMPROVEMENT SERVICES PATIENT CARE COMMUNITY SERVICES: .5 MILLION INCLUDES FREE FLU SHOTS, CANCER SCREENINGS, MEDICATIONS, MEDICAL EQUIPMENT AND TRANSPORTATION FOR COMMUNITY MEMBERS; FREE INTERPRETING SERVICES; AND FREE COMMUNITY HELP LINE. COMMUNITY HEALTH EDUCATION: 3.2 MILLION INCLUDES HEALTH EDUCATION PROGRAMS, CPR CLASSES, SUPPORT GROUPS AND FREE WORKSITE HEALTH EDUCATION PROGRAMS THAT IMPROVE COMMUNITY HEALTH. CONTRIBUTIONS: 0.7 MILLION MONETARY SUPPORT GIVEN TO THE WEST READING COMMUNITY. FINANCIAL AND IN-KIND DONATIONS: 1.8 MILLION CONTRIBUTIONS MADE BY RH AND ITS EMPLOYERS TO COMMUNITY NON-PROFIT ORGANIZATIONS. CASH AND IN-KING DONATIONS WERE MADE TO NON-PROFIT ORGANIZATIONS, NOT AFFILIATED WITH READING HEALTH SYSTEM, AND WHOSE PROGRAMS AND OR SERVICES SHARE THE MISSION OF READING HEALTH SYSTEMDONATIONS WERE GIVEN TO THE AMERICAN CANCER SOCIETY, CHILDREN'S HOME OF READING, CENTRO HISPANO, BERKS COMMUNITY HEALTH CENTER, MARCH OF DIMES AND OTHER NON-PROFIT ORGANIZATIONS. 700 FREE TURKEYS ARE GIVEN TO THE SALVATION ARMY EACH YEAR TO ASSIST NEEDY FAMILIES IN BERKS COUNTY. ALL EMPLOYEES ARE OFFERED THE OPPORTUNITY TO HELP THE COMMUNITY THROUGH THE READING HEALTH SYSTEM'S EMPLOYEE ENGAGEMENT INITIATIVE. READING HEALTH SYSTEM OFFERS A FREE PHONE BASED COMMUNITY HELPLINE TO ASSIST COMMUNITY MEMBERS TO CONNECT WITH SERVICES PROVIDED WITHIN THE HEALTH SYSTEM AND THE COMMUNITY. PROFESSIONAL EDUCATION AND CLINICAL RESEARCH MEDICAL EDUCATION FOR PHYSICIANS/MEDICAL STUDENTS: 13 MILLION INCLUDES SALARIES AND BENEFITS FOR MEDICAL RESIDENTS, MEDICAL LIBRARY, AND CONTINUING MEDICAL EDUCATION PROGRAMS AVAILABLE TO ALL PHYSICIANS WITHIN THE COMMUNITY.NURSING AND OTHER HEALTH PROFESSIONAL EDUCATION,INCLUDES NURSING, PARAMEDIC AND PASTORAL CARE EDUCATION THAT RESULT IN A DEGREE, CERTIFICATE OR TRAINING NECESSARY TO BE LICENSED TO PRACTICE AS A HEALTH PROFESSIONAL. INCLUDES CONTINUING MEDICAL EDUCATION PROGRAMS OFFERED TO ALL NURSES IN THE COMMUNITY. CONTINUING MEDICAL EDUCATION IS OFFERED TO ALL PHYSICIANS, NURSES AND OTHER HEALTH PROFESSIONALS WITHIN THE COMMUNITY ON SUBJECTS FOR WHICH OUR ORGANIZATION HAS SPECIAL EXPERTISE. CANCER CLINICAL RESEARCH AND TUMOR REGISTRY: .3 MILLION INCLUDES RESEARCH AND CLINICAL TRIALS IN THE AREAS OF CANCER, AND TUMOR REGISTRY EXPENSES. READING HEALTH SYSTEM PARTICIPATES IN CANCER CLINICAL HEALTH RESEARCH THAT IS SHARED WITH OTHERS OUTSIDE OF OUR SYSTEM. BECAUSE OF THE HOSPITAL'S DEDICATION TO CLINICAL RESEARCH AND OUR AFFILIATIONS WITH VARIOUS NATIONAL ORGANIZATIONS, WE ARE ABLE TO PROVIDE PATIENTS, IN OUR COMMUNITY, WITH THE OPPORTUNITY TO PARTICIPATE IN THE SAME RESEARCH STUDIES BEING OFFERED AT LARGE UNIVERSITY HOSPITALS THROUGHOUT THIS NATION. THIS INCLUDES RESEARCH AND CLINICAL TRIALS IN THE AREA OF CANCER AND INCLUDES TUMOR REGISTRY EXPENSES. BASED UPON THE COMMUNITY HEALTH NEEDS ASSESSMENT, READING HEALTH SYSTEM IDENTIFIED SEVERAL HIGH-PRIORITY ISSUES FOR OUR FOCUS; MATERNAL, INFANT AND CHILD HEALTH AND OBESITY. TO HELP ORGANIZE OUR EFFORTS AND KEEP THESE KEY ISSUES IN FRONT OF THE COMMUNITY, READING HEALTH SYSTEM DEVELOPED A COMMUNITY HEALTH DEPARTMENT. THIS DEPARTMENT WILL FOSTER PARTNERSHIPS WITH COMMUNITY ORGANIZATIONS SO THAT WE CAN WORK TOGETHER TO DEVELOP, IMPLEMENT, AND EVALUATE PROGRAMS TO IMPROVE OUR COMMUNITIES HEALTH. WE ARE HOPEFUL OUR EFFORTS WILL EMPOWER MORE PEOPLE TO MANAGE THEIR HEALTH BEHAVIORS AND THEREBY EXPERIENCE A BETTER QUALITY OF LIFE.
EXPLANATION ON VOLUNTEERS AND TYPES OF SERVICES OR BENEFITS	FORM 990, PAGE 1, PART I, LINE 6	194 ACTIVE ADULT INSERVICE VOLUNTEERS GAVE 23,516 HOURS OF SERVICE TO RH 119 TEEN INSERVICE VOLUNTEERS GAVE 4,167 HOURS OF SERVICE TO RH APPROXIMATELY 74 MEMBERS OF THE FRIENDS OF TRHMC BOARD OF DIRECTORS GAVE 5,969 HOURS OF SERVICE TO RAISE DOLLARS FOR RH. APPROXIMATELY 527 MEMBERS OF LOCAL FRIENDS GROUPS GAVE RH 39,860 HOURS OF SERVICE. DURING FY 2013 VOLUNTEERS GAVE APPROXIMATELY 70,000 HOURS OF SERVICE.
FIRST ACCOMPLISHMENT DESCRIPTION	FORM 990, PAGE 2, PART III, LINE 4A	HOSPITALS IN ITS MARKET.
SECOND ACCOMPLISHMENT DESCRIPTION	FORM 990, PAGE 2, PART III, LINE 4B	COMMITTMENT TO SERVE THE UNDERSERVED POPULATION OF THE CITY.
ALL OTHER ACCOMPLISHMENT DESCRIPTION	FORM 990, PAGE 2, PART III, LINE 4D	EXPENSES ARE FOR TREATING INPATIENTS, OUTPATIENTS AND EMERGENCY PATIENTS
RELATED PARTY INFORMATION AMONG OFFICERS	FORM 990, PAGE 6, PART VI, LINE 2	ROLAND STOCK (JOHN ROLAND) ROLAND STOCK(DAVID ROLAND) BOARD MEMBER LIFE MEMBER UNCLE TERRENCE MCGLINN THEODORE AUMEN FAMILY RELATIONSHIP
CLASSES OF MEMBERS OR STOCKHOLDERS	FORM 990, PAGE 6, PART VI, LINE 6	READING HEALTH SYSTEM ELECTS THE MEMBERS OF THE GOVERNING BODY
ELECTION OF MEMBERS AND THEIR RIGHTS	FORM 990, PAGE 6, PART VI, LINE 7A	THE MANAGEMENT OF THE CORPORATION SHALL BE VESTED IN THE BOARD OF DIRECTORS ELECTED BY THE MEMBER WHO IS THE READING HEALTH SYSTEM.
DECISIONS SUBJECT TO APPROVAL OF MEMBERS	FORM 990, PAGE 6, PART VI, LINE 7B	ALL DECISIONS ARE SUBJECT TO APPROVAL BY THE BOARD OF DIRECTORS AS MANAGEMENT OF THE CORPORATION ELECTED BY THE MEMBER.
ORGANIZATION'S PROCESS USED TO REVIEW FORM 990	FORM 990, PAGE 6, PART VI, LINE 11B	THE FORM 990 IS PREPARED BY HOSPITAL STAFF AND REVIEWED BY PWC ACCOUNTING FIRM TAX PERSONNEL BEFORE POSTING IT ON A WEBSITE FOR BOARD MEMBERS PRIOR TO FILING. MEMBERS ARE ALERTED TO INFORMATION AND NOTICES. A COPY OF THE 990 IS MAILED TO ANY BOARD MEMBER UNABLE TO VIEW THIS SITE.
ENFORCEMENT OF CONFLICTS POLICY	FORM 990, PAGE 6, PART VI, LINE 12C	IT SHALL BE THE POLICY OF THE HOSPITAL TO REQUIRE EACH BOARD MEMBER TO SUBMIT IN WRITING TO THE CHIEF EXECUTIVE OFFICER A LIST OF BUSINESS OR OTHER ORGANIZATIONS OF WHICH THE MEMBER OR MEMBER'S SPOUSE IS AN OFFICER, DIRECTOR, MEMBER EMPLOYEE OR OWNER (10% OR GREATER SHARE) WITH WHICH THE COMPANY MIGHT REASONABLY ENTER INTO A RELATIONSHIP OR A TRANSACTION IN WHICH THE BOARD MEMBER WOULD HAVE CONFLICTING INTERESTS. EACH YEAR A COPY OF THE WRITTEN STATEMENT WILL BE SENT TO THE BOARD MEMBER FOR UPDATING AND RESUBMISSION AND BY WHICH THE BOARD MEMBER SHALL CONFIRM HIS AWARENESS OF THIS POLICY.
COMPENSATION PROCESS FOR TOP OFFICIAL	FORM 990, PAGE 6, PART VI, LINE 15A	THE READING HEALTH SYSTEM'S BOARD OF DIRECTORS HAS DULY APPOINTED AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF ALL COMPENSATION AND BENEFITS PROVIDED TO THE HOSPITAL'S EXECUTIVE MANAGEMENT. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT AND AN EXECUTIVE COMPENSATION COMMITTEE CHARTER GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT AND THE CHARTER WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO THE HOSPITAL'S SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL OFFICER. THE COMMITTEE'S REVIEW ANALYZES EVERY ELEMENT OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE CONDUCTS ITS REVIEW AND APPROVAL PROCESS AT LEAST ANNUALLY, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS ENTIRELY OF DISINTERESTED MEMBERS OF THE BOARD, AND THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES.
COMPENSATION PROCESS FOR OFFICERS	FORM 990, PAGE 6, PART VI, LINE 15B	SAME RESPONSE AS LINE 15A WHICH INCLUDES KEY EMPLOYEES.
GOVERNING DOCUMENTS DISCLOSURE EXPLANATION	FORM 990, PAGE 6, PART VI, LINE 19	THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2012

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

2012

Open to Public Inspection

Name of the organization

READING HOSPITAL

Employer identification number

23-1352204

Part I

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

(a) Name, address, and EIN (if applicable) 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" to 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 entity?
(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) READING HEALTH SYSTEM SIXTH AVE SPRUCE ST WEST READING,PA19611 23-2201344	SUPPORTING	PA	501C3	11C	NA		No
(2) THE FRIENDS OF THE READING HOSPITAL SIXTH AVE SPRUCE ST WEST READING,PA19611 23-6026108	SUPPORTING	PA	501C3	11B	RHS	Yes
(3) THE RDG HOSPITAL & MED CENTER SELF- SIXTH AVE SPRUCE ST WEST READING,PA19611 23-2087514	TRUST FUND	PA	501C3	11B	RHS	Yes
(4) THE RDG HOSPITAL & MED CENTER WORKE SIXTH AVE SPRUCE ST WEST READING,PA19611 22-3054717	TRUST FUND	PA	501C3	11B	RHS	Yes
(5) READING PROFESSIONAL SERVICES SIXTH AVE SPRUCE ST WEST READING,PA19611 23-2266054	HEALTHCARE	PA	501C3	3	RHS	Yes
(6) THE RDG HOSPITAL MEDICAL GROUP SIXTH AVE SPRUCE ST WEST READING,PA19611 20-5095905	HEALTHCARE	PA	501C3	3	RHS	Yes
(7) THE HIGHLANDS AT WYOMISSING 2000 CAMBRIDGE AVE WYOMISSING,PA19610 22-2790840	RETIREMENT	PA	501C3	9	RHS	Yes

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

Cat. No. 50135Y

Schedule R (Form 990) 2012

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code VUBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) THE READING HOSPITAL SURGICENTER AT SPRING RIDGE LLC 2603 KEISER BLVD WYOMISSING,PA19610 58-2682467	SURGERY	PA	THE RDG HO	EXCLUDED				No		Yes

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" to 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	(i) Section 512(b)(13) controlled entity?
(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	Yes	No
(1) MC REALTY CORP 627 NORTH FOURTH STREET READING,PA19601 23-2607292	REALESTATE	PA	N/A					No

Schedule R (Form 990) 2012

Page 3

Part V

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

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

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 or (iv) rent from a controlled entity . . . . . . . . . . . . . . . . . . . . . . .

Yes

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

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

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

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

Yes

f Dividends from related organization(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

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

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

Yes

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

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

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

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

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

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

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

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

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

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

(a) Name of other organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) THE READING HOSPITAL MEDICAL GROUP	J	467,227	GL TRANSACTION
(2) READING PROFESSIONAL SERVICES	J	1,864,445	GL TRANSACTION
(3) THE HIGHLANDS AT WYOMISSING	Q	2,195,752	GL TRANSACTION
(4) THE RDG HOSP & MED CTR SELF INS FUN	P	3,613,436	GL TRANSACTION

Schedule R (Form 990) 2012

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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) 2012

Page 5

Part VII

Supplemental Information

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

Identifier	Return Reference	Explanation
ADDITIONAL INFORMATION	SCHEDULE R	THE READING HEALTH SYSTEM PAYS THE INTEREST ON THE BONDS WHICH IS THEN CHARGED BACK TO THE HOSPITAL

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: THE MISSION OF THE READING HOSPITAL IS TO PROVIDE COMPASSIONATE, ACCESSIBLE, HIGH QUALITY, COST EFFECTIVE CARE TO THE COMMUNITY: TO PROMOTE HEALTH; TO EDUCATE HEALTHCARE PROFESSIONALS; AND TO PARTICIPATE IN APPROPRIATE CLINICAL RESEARCH. ASK SOMEONE TO DEFINE A HOSPITAL'S ROLE IN THE COMMUNITY, AND MOST OFTEN YOU HEAR ABOUT SERVICES AND DEPARTMENTS, OR ABOUT DOCTORS, NURSES AND OTHER CAREGIVERS. IN ADDITION TO ITS PRIMARY ROLE AS A PROVIDER OF DIRECT CARE, READING HEALTH SYSTEM ADDRESSES ISSUES OUTSIDE THAT REALM THAT IMPACT HEALTH AND WELLNESS. IN FACT, A KEY PART OF OUR MISSION MEANS THE REINVESTMENT OF OUR RESOURCES INTO THESE EFFORTS, WHICH ARE COLLECTIVELY KNOWN AS COMMUNITY BENEFIT. WE ARE PROUD TO REPORT THAT IN OUR LAST FISCAL YEAR, WE COMMITTED MORE THAN 152 MILLION TO THIS CAUSE. OUR CAREGIVERS AND SUPPORT STAFF PARTICIPATE IN HEALTH EDUCATION, FREE SCREENINGS, AND IMMUNIZATIONS. THEY SUPPORT ACTIVITIES FOR INDIVIDUALS WITH SERIOUS OR CHRONIC HEALTH CONDITIONS, ADVANCE SELF-C
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	21
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	18
5	Total number of individuals employed in calendar year 2011 (Part V, line 2a) ......	5	7,992
6	Total number of volunteers (estimate if necessary) .............	6	971
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	1,035,244
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	-1,391

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,698,940	1,894,274
9	Program service revenue (Part VIII, line 2g) .........	785,135,455	777,681,968
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	636,798	771,999
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	23,027,998	25,999,182
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	811,499,191	806,347,423
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	484,564	1,135,000
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	356,928,773	386,023,629
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	375,251,624	339,700,607
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	732,664,961	726,859,236
19	Revenue less expenses. Subtract line 18 from line 12.......	78,834,230	79,488,187
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	915,035,276	926,283,621
21	Total liabilities (Part X, line 26).............	850,291,791	771,996,389
22	Net assets or fund balances. Subtract line 21 from line 20.....	64,743,485	154,287,232

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 37,292,522 including grants of $ 1,135,000 ) (Revenue $ 65,744,642 )
	OPERATING ROOM - 18,056 TOTAL SURGERIES READING HOSPITAL OPERATES IN A MARKET SERVED BY NEARLY 20 SPECIALTY, INVESTOR-OWNED FACILITIES, WHICH CARVE OUT THE BEST PAYING INSURANCE PLANS, THE HIGHEST MARGIN PROCEDURES, AND THE LEAST COMPLICATED PATIENTS TO SERVE. BY CONTINUING TO PROVIDE A FULL SERVICE SURGICAL SERVICE, RH OFFERS THE MOST ADVANCED SURGICAL OPTIONS, FROM ROBOTIC ASSISTED,MINIMALLY INVASIVE SURGERY TO A FULL SPECTRUM OF OUTPATIENT SURGICAL OPTIONS. AND TO ENSURE OUR COMMUNITY HAS ACCESS TO SURGICAL SPECIALITIES THAT MAY BE EXPERIENCING SHORTAGES ELSEWHERE IN THE COUNTRY. RH SUPPORTS ITS SURGEONS IN THEIR FELLOWSHIP TRAINING AND RECRUITS AND RETAINS SURGEONS IN AREAS LIKE PLASTIC SURGERY - AVAILABLE ONLY DURING LIMITED HOURS OR NOT AT ALL, IN OTHER HOSPITALS IN ITS MARKET.

4b	(Code: ) (Expenses $ 34,771,995 including grants of $ ) (Revenue $ 83,171,774 )
	EMERGENCY CARE - 130,755 EMERGENCY ROOM VISITS RH EMERGENCY DEPARTMENT PROVIDES EMERGENT, URGENT AND PRIMARY CARE SERVICES TO OUR COMMUNITY "24/7/365," REGARDLESS OF ABILITY TO PAY. VOLUME TO RH EMERGENCY DEPARTMENT RANKS IT AMONG THE TOP THREE IN THE STATE OF PENNSYLVANIA YEAR AFTER YEAR. AS THE AREA'S ONLY ACCREDITED TRAUMA CENTER, RH ALSO PROVIDES IMMEDIATE ACCESS THROUGH ITS EMERGENCY DEPARTMENT TO ALL SPECIALITY SREVICES, FROM TRAUMA SURGEONS TO PLASTIC SURGEONS, AND ALL AREAS OF SEPCIALITY CARE. IN ADDITION TO ITS TRAUMA CERTIFICATION, RH IS THE ONLY HOSPITAL IN THE REGION TO HAVE MADE A COMMITMENT TO ACCREDIATED CARE IN STROKE AND CHEST PAIN. FOLLOWING THE RELOCATION OF THE OTHER HOSPITAL IN THE CITY TO A NEW SUBURBAN CAMPUS, RH IS FULFILLING ITS COMMITTMENT TO SERVE THE UNDERSERVED POPULATION OF THE CITY.

4c	(Code: ) (Expenses $ 41,107,672 including grants of $ ) (Revenue $ 62,937,970 )
	PHARMACY - 6,906,045 DRUGS DISPENSED RH PROVIDES ACESS TO NEEDED PRESCRIPTIONS FOR THOSE PATIENTS WHO CANNOT AFFORD THEIR MEDICATION. EACH MONTH RH ABSORBS THE COST OF PRESCRIPTION MEDICATION FOR PATIENTS OF RH WITH NO PRESCRIPTION COVERAGE. RH RECOGNIZES THE IMPORTANT ROLE OF PATIENT COMPLIANCE WITH THEIR TREATMENT, INCLUDING TAKING MEDICATION AS PRESCRIBED, AND RECOGNIZES THAT PATIENTS WITHOUT THE ABILITY TO PAY FOR THOSE MEDICATIONS WILL SIMPLY NOT COMPLY. TO ENSURE OPTIMAL PATIENT HEALTH AND THE BEST PATIENT OUTCOMES, RH ABSORBS THE COSTS OF THESE MEDICATIONS AS PART OF OUR EXEMPT PURPOSE IN OUR COMMUNITY.

	(Code: ) (Expenses $ 557,751,319 including grants of $ ) (Revenue $ 579,539,048 )
	EXPENSES ARE FOR TREATING INPATIENTS, OUTPATIENTS AND EMERGENCY PATIENTS

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 557,751,319 including grants of $ ) (Revenue $ 579,539,048 )
4e	Total program service expenses670,923,508

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	6,573,765	857,062

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512, 513, or 514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d
e	Government grants (contributions)1e		770,537

f	All other contributions, gifts, grants, and similar amounts not included above1f		1,123,737

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			1,894,274
			Business Code
2a	PATIENT CHARGES			777,681,968	777,681,968
b
c
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			777,681,968
3	Investment income (including dividends, interest, and other similar amounts).......			771,999			771,999
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(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
b	Less: cost or other basis and sales expenses
c	Gain or (loss)
d	Net gain or (loss)..........
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a	MEALS			4,967,926			4,967,926
b	PROPERTY RENTAL			4,901,187			4,901,187
c	TUITION - NURSING TECH SCHOOL			4,541,475	4,541,475
d	All other revenue ....			11,588,594	9,169,991	1,035,244	1,383,359
e	Total. Add lines 11a–11d ......			25,999,182
12	Total revenue. See Instructions......			806,347,423	791,393,434	1,035,244	12,024,471


				(A) Beginning of year		(B) End of year
1	Cashnon-interest-bearing .............			553,097	1	453,958
2	Savings and temporary cash investments .........			187,873,688	2	61,327,151
3	Pledges and grants receivable, net ...........				3
4	Accounts receivable, net .............			112,324,645	4	182,005,953
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
					5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			11,856,589	8	14,442,833
9	Prepaid expenses and deferred charges ..........			10,973,507	9	14,164,667
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,180,259,222
b	Less: accumulated depreciation .....	10b	597,618,917	521,743,728	10c	582,640,305
11	Investments—publicly traded securities ..........			19,933,781	11	20,115,777
12	Investments—other securities. See Part IV, line 11 .....				12
13	Investments—program-related. See Part IV, line 11 .....				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			49,776,241	15	51,132,977
16	Total assets. Add lines 1 through 15 (must equal line 34)......			915,035,276	16	926,283,621
17	Accounts payable and accrued expenses .........			108,713,561	17	120,965,568
18	Grants payable .................			1,003,962	18	1,527,412
19	Deferred revenue ................				19
20	Tax-exempt bond liabilities .............			4,770,000	20	2,450,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			2,240,755	23	1,984,569
24	Unsecured notes and loans payable to unrelated third parties ....				24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			733,563,513	25	645,068,840
26	Total liabilities. Add lines 17 through 25.........			850,291,791	26	771,996,389
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			47,300,049	27	134,829,325
28	Temporarily restricted net assets ...........			630,552	28	627,847
29	Permanently restricted net assets ...........			16,812,884	29	18,830,060
	Organizations that do not follow SFAS 117 (ASC 958), 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 ...........			64,743,485	33	154,287,232
34	Total liabilities and net assets/fund balances ........			915,035,276	34	926,283,621