TY 2014 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) THOMAS Sadvary........................................................................ DIRECTOR/CEO, SLHN	33.0 .......................7.0	X	X	0	1,449,476	33,792
(2) Rhonda Forsyth........................................................................ DIRECTOR/PRESIDENT, SLHN	1.0 .......................39.0	X	X	0	1,236,881	18,718
(3) Steve Wheeler........................................................................ Director/Chairman	1.0 .......................4.0	X	X	0	0	0
(4) Frank Pugh........................................................................ Director/Vice Chair	1.0 .......................4.0	X	X	0	0	0
(5) John Grotting........................................................................ Director/Secretary	1.0 .......................4.0	X	X	0	0	0
(6) Michael Stanley........................................................................ Director/Treasurer	1.0 .......................4.0	X	X	0	0	0
(7) Raymond Barton........................................................................ Director	1.0 .......................3.0	X		0	0	0
(8) Drew Brown........................................................................ Director	1.0 .......................3.0	X		0	0	0
(9) Richard Fox........................................................................ Director	1.0 .......................3.0	X		0	0	0
(10) Karrie Francois MD........................................................................ Director	1.0 .......................3.0	X		14,088	0	0
(11) Brad Gazaway........................................................................ Director	1.0 .......................3.0	X		0	0	0
(12) Pete Hathaway........................................................................ Director	1.0 .......................3.0	X		0	0	0
(13) Kathryn Jo Lincoln........................................................................ Director	1.0 .......................3.0	X		0	0	0
(14) Julie Arvo MacKenzie........................................................................ Director	1.0 .......................5.0	X		0	0	0
(15) Larry Seay........................................................................ Director	1.0 .......................4.0	X		0	0	0
(16) Elena Sibley MD........................................................................ Director	1.0 .......................3.0	X		0	55,000	0
(17) Richard Silverman........................................................................ Director	1.0 .......................3.0	X		0	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)	(F) Estimated amount of other compensation from the organization and related organizations
(18) Maria Divina Soriano MD........................................................................ Director	1.0 .......................3.0	X				0	38,417	0
(19) Margie Traylor........................................................................ Director	1.0 .......................3.0	X				0	0	0
(20) Kathleen Wade........................................................................ Director	1.0 .......................3.0	X				0	0	0
(21) Mike Welborn........................................................................ Director	1.0 .......................3.0	X				0	0	0
(22) James Burke MD........................................................................ SVP/CHIEF PHYSICIAN EXECUTIVE	1.0 .......................39.0		X			0	613,643	33,024
(23) Alan Kelly........................................................................ SVP/General Counsel	34.0 .......................6.0		X			0	538,992	13,396
(24) Todd LaPorte........................................................................ SVP/CFO & STRATEGIC PLANNING	8.0 .......................32.0		X			0	733,482	37,810
(25) Carol Henderson MCCUNE........................................................................ SVP/CHIEF TALENT OFFICER	1.0 .......................39.0		X			0	506,261	20,077
(26) Nathan Anspach........................................................................ SVP/Physician Network & Amb.	1.0 .......................39.0			X		0	496,137	34,628
(27) Gary Baker........................................................................ SVP/OPERATIONS	37.0 .......................3.0			X		513,131	0	35,361
(28) Alaina Chabrier........................................................................ VP Marketing & Communications	1.0 .......................39.0			X		0	337,843	34,015
(29) Joanne Clavelle........................................................................ SVP/CCO	37.0 .......................3.0			X		408,735	0	17,671
(30) David Lamparter........................................................................ INTEGRATION OFFICER	1.0 .......................39.0			X		0	686,890	23,346
(31) John Harrington JR........................................................................ SVP/Operations	1.0 .......................39.0			X		0	593,863	27,824
(32) Bruce Pearson........................................................................ SVP/Operations	1.0 .......................39.0			X		0	642,088	36,461
(33) Chuck Scully........................................................................ SVP/CIMO	37.0 .......................3.0			X		0	189,026	2,441
(34) Rich Silver MD........................................................................ VP Physician Alignment	19.0 .......................21.0			X		0	476,057	76,833
(35) David Rizik........................................................................ Medical Director	40.0 .......................0.0				X	847,367	0	37,795
(36) Frank Mitchell........................................................................ Medical Director	40.0 .......................0.0				X	811,516	0	34,492
(37) Robin Blackstone........................................................................ Medical Director	40.0 .......................0.0				X	770,192	0	29,379
(38) Jeffrey Van Lier Ribbink........................................................................ Surgical Oncologist	40.0 .......................0.0				X	661,484	0	36,595
(39) James Swain........................................................................ Bariatric Surgeon	40.0 .......................0.0				X	612,249	0	13,620

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 domestic organizations and domestic governments. See Part IV, line 21 ....	0
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....	0
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............	0
4	Benefits paid to or for members ....	0
5	Compensation of current officers, directors, trustees, and key employees ....	988,986	0	988,986
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	372,965	372,965
7	Other salaries and wages ....	292,824,456	225,921,950	66,902,506
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	9,959,877	7,687,208	2,272,669
9	Other employee benefits .......	23,875,351	18,427,415	5,447,936
10	Payroll taxes ...........	20,446,653	15,781,086	4,665,567
11	Fees for services (non-employees):
a	Management ......	166,921,004	128,832,560	38,088,444
b	Legal .........	120		120
c	Accounting ...........	0
d	Lobbying ...........	0
e	Professional fundraising services. See Part IV, line 17	0
f	Investment management fees ......	0
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	36,587,278	28,238,703	8,348,575
12	Advertising and promotion ....	2,779	2,145	634
13	Office expenses .......	11,960,787	9,231,545	2,729,242
14	Information technology ......	282,322	217,901	64,421
15	Royalties ..	0
16	Occupancy ...........	11,414,058	8,809,570	2,604,488
17	Travel ............	614,465	474,255	140,210
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	0
20	Interest ...........	14,864,455	11,472,647	3,391,808
21	Payments to affiliates .......	0
22	Depreciation, depletion, and amortization .....	35,101,494	27,091,949	8,009,545
23	Insurance ..............	434,999	335,740	99,259
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	MEDICAL SUPPLIES	207,198,039	207,198,039
b	EQUIPMENT RENT/REPAIR/MAINT	19,591,565	15,121,114	4,470,451
c	EDUCATION	4,637,720	3,579,474	1,058,246
d	MERCHANT SERVICE FEES	1,187,106	916,229	270,877
e	All other expenses	14,907,413	11,505,803	3,401,610
25	Total functional expenses. Add lines 1 through 24e	874,173,892	721,218,298	152,955,594	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 or note to any line in this Part X ..............
	1	Cash–non-interest-bearing .............	9,773	1	5,790,082
2	Savings and temporary cash investments .........	20,369,026	2	81,368,500
3	Pledges and grants receivable, net ...........	0	3	324,462
4	Accounts receivable, net .............	122,947,146	4	206,368,343
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
		0	5	0
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
		0	6	0
7	Notes and loans receivable, net .............	0	7	2,757,268
8	Inventories for sale or use ..............	33,975,554	8	44,184,793
9	Prepaid expenses and deferred charges ..........	6,520,856	9	14,038,736
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,457,604,802
b	Less: accumulated depreciation .....	10b	812,398,675	301,844,621	10c	645,206,127
11	Investments—publicly traded securities ..........	0	11	166,886,309
12	Investments—other securities. See Part IV, line 11 .....	3,250,000	12	14,685,627
13	Investments—program-related. See Part IV, line 11 .....	9,050,026	13	22,174,425
14	Intangible assets ...............	554,491	14	0
15	Other assets. See Part IV, line 11 ...........	53,736,173	15	278,218,317
16	Total assets. Add lines 1 through 15 (must equal line 34)......	552,257,666	16	1,482,002,989
	17	Accounts payable and accrued expenses .........	55,983,505	17	156,313,381
18	Grants payable .................	0	18	0
19	Deferred revenue ................	5,019,226	19	4,681,017
20	Tax-exempt bond liabilities .............	0	20	423,332,758
21	Escrow or custodial account liability. Complete Part IV of Schedule D..	0	21	0
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..........	0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..	0	23	608,922
24	Unsecured notes and loans payable to unrelated third parties ....	0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................	25,263,879	25	45,239,133
26	Total liabilities. Add lines 17 through 25.........	86,266,610	26	630,175,211
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	465,991,056	27	844,757,272
28	Temporarily restricted net assets ...........	0	28	3,696,159
29	Permanently restricted net assets ...........	0	29	3,374,347
	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 ...........	465,991,056	33	851,827,778
34	Total liabilities and net assets/fund balances ........	552,257,666	34	1,482,002,989

- 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.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

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 in lines 11a through 11d that describes the type of supporting organization and complete lines 11e, 11f, and 11g.

Type I. A supporting organization operated, supervised, or controlled by its supported organization(s), typically by giving the supported organization(s) the power to regularly appoint or elect a majority of the directors or trustees of the supporting organization. You must complete Part IV, Sections A and B.

Type II. A supporting organization supervised or controlled in connection with its supported organization(s), by having control or management of the supporting organization vested in the same persons that control or manage the supported organization(s). You must complete Part IV, Sections A and C.

Type III functionally integrated. A supporting organization operated in connection with, and functionally integrated with, its supported organization(s) (see instructions). You must complete Part IV, Sections A, D, and E.

Type III non-functionally integrated. A supporting organization operated in connection with its supported organization(s) that is not functionally integrated. The organization generally must satisfy a distribution requirement and an attentiveness requirement (see instructions). You must complete Part IV, Sections A and D, and Part V.

Check this box if the organization received a written determination from the IRS that it is a Type I, Type II, Type III functionally integrated, or Type III non-functionally integrated supporting organization.

Enter the number of supported organizations .............................

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

(i)Name of supported organization	(ii) EIN	(iv) Is the organization listed in your governing document?		(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)
(i)Name of supported organization	(ii) EIN	Yes	No	(v) Amount of monetary support (see instructions)	(vi) Amount of other support (see instructions)


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2014

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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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 VI.)..
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 section 501(c)(3) organization, check this box and stop here........................................ right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2013 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2014. 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—2013. 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—2014. 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 VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2013. 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 VI 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) 2014

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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(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 VI.) ..
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 section 501(c)(3) organization,
check this box and stop here............................................. right arrow

Section C. Computation of Public Support Percentage

Public support percentage for 2014 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2013 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2014 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2013 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2014. 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—2013. 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) 2014

Page 4

Part IV

Supporting Organizations

(Complete only if you checked a box on line 11 of Part I. If you checked 11a of Part I, complete Sections A and B. If you checked 11b of Part I, complete Sections A and C. If you checked 11c of Part I, complete Sections A, D, and E. If you checked 11d of Part I, complete Sections A and D, and complete Part V.)

Section A. All Supporting Organizations

Yes

Are all of the organization’s supported organizations listed by name in the organization’s governing documents?
If "No," describe in Part VI how the supported organizations are designated. If designated by class or purpose,
describe the designation. If historic and continuing relationship, explain.

Did the organization have any supported organization that does not have an IRS determination of status under section 509(a)(1) or (2)? If "Yes," explain in Part VI how the organization determined that the supported organization was described in section 509(a)(1) or (2).

Did the organization have a supported organization described in section 501(c)(4), (5), or (6)? If "Yes," answer (b) and (c) below.

Did the organization confirm that each supported organization qualified under section 501(c)(4), (5), or (6) and satisfied the public support tests under section 509(a)(2)? If "Yes," describe in Part VI when and how the organization made the determination.

Did the organization ensure that all support to such organizations was used exclusively for section 170(c)(2)(B) purposes? If "Yes," explain in Part VI what controls the organization put in place to ensure such use.

Was any supported organization not organized in the United States ("foreign supported organization")? If “Yes” and if you checked 11a or 11b in Part I, answer (b) and (c) below.

Did the organization have ultimate control and discretion in deciding whether to make grants to the foreign supported organization? If “Yes,” describe in Part VI how the organization had such control and discretion despite being controlled or supervised by or in connection with its supported organizations....

Did the organization support any foreign supported organization that does not have an IRS determination under sections 501(c)(3) and 509(a)(1) or (2)? If “Yes,” explain in Part VI what controls the organization used to ensure that all support to the foreign supported organization was used exclusively for section 170(c)(2)(B) purposes.

Did the organization add, substitute, or remove any supported organizations during the tax year? If “Yes,” answer (b) and (c) below (if applicable). Also, provide detail in Part VI, including (i) the names and EIN numbers of the supported organizations added, substituted, or removed, (ii) the reasons for each such action, (iii) the authority under the organization's organizing document authorizing such action, and (iv) how the action was accomplished (such as by amendment to the organizing document).

Type I or Type II only. Was any added or substituted supported organization part of a class already designated in the organization's organizing document?

Substitutions only. Was the substitution the result of an event beyond the organization's control?

Did the organization provide support (whether in the form of grants or the provision of services or facilities) to anyone other than (a) its supported organizations; (b) individuals that are part of the charitable class benefited by one or more of its supported organizations; or (c) other supporting organizations that also support or benefit one or more of the filing organization’s supported organizations? If “Yes,” provide detail in Part VI.

Did the organization provide a grant, loan, compensation, or other similar payment to a substantial contributor (defined in IRC 4958(c)(3)(C)), a family member of a substantial contributor, or a 35-percent controlled entity with regard to a substantial contributor? If “Yes,” complete Part I of Schedule L (Form 990) .

Did the organization make a loan to a disqualified person (as defined in section 4958) not described in line 7? If “Yes,” complete Part II of Schedule L (Form 990).

Was the organization controlled directly or indirectly at any time during the tax year by one or more disqualified persons as defined in section 4946 (other than foundation managers and organizations described in section 509(a)(1) or (2))? If “Yes,” provide detail in Part VI.

Did one or more disqualified persons (as defined in line 9(a)) hold a controlling interest in any entity in which the supporting organization had an interest? If “Yes,” provide detail in Part VI.

Did a disqualified person (as defined in line 9(a)) have an ownership interest in, or derive any personal benefit from, assets in which the supporting organization also had an interest? If “Yes,” provide detail in Part VI.

10a

Was the organization subject to the excess business holdings rules of IRC 4943 because of IRC 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer b below.

10a

Did the organization have any excess business holdings in the tax year? (Use Schedule C, Form 4720, to determine whether the organization had excess business holdings).

10b

Has the organization accepted a gift or contribution from any of the following persons?

A person who directly or indirectly controls, either alone or together with persons described in (b) and (c) below, the governing body of a supported organization?

11a

A family member of a person described in (a) above?

11b

A 35% controlled entity of a person described in (a) or (b) above? If “Yes” to a, b, or c, provide detail in Part VI.

11c

Schedule A (Form 990 or 990-EZ) 2014

Page 5

Part IV

Supporting Organizations (continued)

Section B. Type I Supporting Organizations

Yes

Did the directors, trustees, or membership of one or more supported organizations have the power to regularly appoint or elect at least a majority of the organization’s directors or trustees at all times during the tax year? If “No,” describe in Part VI how the supported organization(s) effectively operated, supervised, or controlled the organization’s activities. If the organization had more than one supported organization, describe how the powers to appoint and/or remove directors or trustees were allocated among the supported organizations and what conditions or restrictions, if any, applied to such powers during the tax year.

Did the organization operate for the benefit of any supported organization other than the supported organization(s) that operated, supervised, or controlled the supporting organization? If “Yes,” explain in Part VI how providing such benefit carried out the purposes of the supported organization(s) that operated, supervised or controlled the supporting organization.

Section C. Type II Supporting Organizations

Yes

Were a majority of the organization’s directors or trustees during the tax year also a majority of the directors or trustees of each of the organization’s supported organization(s)? If “No,” describe in Part VI how control or management of the supporting organization was vested in the same persons that controlled or managed the supported organization(s).

Section D. All Type III Supporting Organizations

Yes

Did the organization provide to each of its supported organizations, by the last day of the fifth month of the organization’s tax year, (1) a written notice describing the type and amount of support provided during the prior tax year, (2) a copy of the Form 990 that was most recently filed as of the date of notification, and (3) copies of the organization’s governing documents in effect on the date of notification, to the extent not previously provided?

Were any of the organization’s officers, directors, or trustees either (i) appointed or elected by the supported organization(s) or (ii) serving on the governing body of a supported organization? If "No," explain in Part VI how the organization maintained a close and continuous working relationship with the supported organization(s).

By reason of the relationship described in (2), did the organization’s supported organizations have a significant voice in the organization’s investment policies and in directing the use of the organization’s income or assets at all times during the tax year? If "Yes," describe in Part VI the role the organization’s supported organizations played in this regard.

Section E. Type III Functionally-Integrated Supporting Organizations

Check the box next to the method that the organization used to satisfy the Integral Part Test during the year (see instructions):

The organization satisfied the Activities Test. Complete line 2 below.

The organization is the parent of each of its supported organizations. Complete line 3 below.

The organization supported a governmental entity. Describe in Part VI how you supported a government entity (see instructions)

Activities Test. Answer (a) and (b) below.

Yes

Did substantially all of the organization’s activities during the tax year directly further the exempt purposes of the supported organization(s) to which the organization was responsive? If "Yes," then in Part VI identify those supported organizations and explain how these activities directly furthered their exempt purposes, how the organization was responsive to those supported organizations, and how the organization determined that these activities constituted substantially all of its activities.

Did the activities described in (a) constitute activities that, but for the organization’s involvement, one or more of the organization’s supported organization(s) would have been engaged in? If "Yes," explain in Part VI the reasons for the organization’s position that its supported organization(s) would have engaged in these activities but for the organization’s involvement.

Parent of Supported Organizations. Answer (a) and (b) below.

Did the organization have the power to regularly appoint or elect a majority of the officers, directors, or trustees of each of the supported organizations? Provide details in Part VI.

Did the organization exercise a substantial degree of direction over the policies, programs and activities of each of its supported organizations? If "Yes," describe in Part VI the role played by the organization in this regard.

Schedule A (Form 990 or 990-EZ) 2014

Page 6

Part V – Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations

1. Check here if the organization satisfied the Integral Part Test as a qualifying trust on Nov. 20, 1970. See instructions. All other Type III non-functionally integrated supporting organizations must complete Sections A through E.

	Section A - Adjusted Net Income		(A) Prior Year	(B) Current Year (optional)
1	Net short-term capital gain	1
2	Recoveries of prior-year distributions	2
3	Other gross income (see instructions)	3
4	Add lines 1 through 3	4
5	Depreciation and depletion	5
6	Portion of operating expenses paid or incurred for production or collection of gross income or for management, conservation, or maintenance of property held for production of income (see instructions)	6
7	Other expenses (see instructions)	7
8	Adjusted Net Income (subtract lines 5, 6 and 7 from line 4)	8

	Section B - Minimum Asset Amount		(A) Prior Year	(B) Current Year (optional)
1	Aggregate fair market value of all non-exempt-use assets (see instructions for short tax year or assets held for part of year):	1
a	Average monthly value of securities	1a
b	Average monthly cash balances	1b
c	Fair market value of other non-exempt-use assets	1c
d	Total (add lines 1a, 1b, and 1c)	1d
e	Discount claimed for blockage or other factors (explain in detail in Part VI):
2	Acquisition indebtedness applicable to non-exempt use assets	2
3	Subtract line 2 from line 1d	3
4	Cash deemed held for exempt use. Enter 1-1/2% of line 3 (for greater amount, see instructions).	4
5	Net value of non-exempt-use assets (subtract line 4 from line 3)	5
6	Multiply line 5 by .035	6
7	Recoveries of prior-year distributions	7
8	Minimum Asset Amount (add line 7 to line 6)	8

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6
7	Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2014

Page 7

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2014 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2014	(iii) Distributable Amount for 2014
1 Distributable amount for 2014 from Section C, line 6
2 Underdistributions, if any, for years prior to 2014 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2014:
a From 2009.......X
b From 2010.......X
c From 2011.......X
d From 2012.......X
e From 2013.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2014 distributable amount
i Carryover from 2009 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2014 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2014 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2014, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2014. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2015. Add lines 3j and 4c.
8 Breakdown of line 7:
a From 2010.......X
b From 2011.......X
c From 2012.......X
d From 2013.......
e From 2014.......

Schedule A (Form 990 or 990-EZ) (2014)

Schedule A (Form 990 or 990-EZ) 2014

Page 8

Part VI

Supplemental Information. Provide the explanations required by Part II, line 10; Part II, line 17a or 17b; Part III, line 12; Part IV, Section A, lines 1, 2, 3b, 3c, 4b, 4c, 5a, 6, 9a, 9b, 9c, 11a, 11b, and 11c; Part IV, Section B, lines 1 and 2; Part IV, Section C, line 1; Part IV, Section D, lines 2 and 3; Part IV, Section E, lines 1c, 2a, 2b, 3a and 3b; Part V, line 1; Part V, Section B, line 1e; Part V Section D, lines 5, 6, and 8; and Part V, Section E, lines 2, 5, and 6. Also complete this part for any additional information. (See instructions).

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2014

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.

Information about Schedule B (Form 990, 990-EZ, or 990-PF) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

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, contributions totaling $5,000 or more (in money or
property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) 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), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions 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 an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, total contributions of more than $1,000 exclusively for religious, charitable, scientific, literary, or educational purposes, or for the prevention of cruelty to children or animals. Complete Parts I, II, and III.

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled 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 totaling $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 its Form 990PF, Part I, line 2, 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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 2

Name of organization SCOTTSDALE HEALTHCARE HOSPITALS

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	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 3

Name of organization SCOTTSDALE HEALTHCARE HOSPITALS

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) (2014)

Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

Page 4

Name of organization
SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

Part III

Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10)
that total more than $1,000 for the year from any one contributor. 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) (2014)

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.
Information about Schedule D (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

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 value of contributions to (during year)
3	Aggregate value of 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)

Revenue 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:

Revenue 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) 2014

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, for escrow or custodial account liability?

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	(e)Four years back
1a	Beginning of year balance ....
b	Contributions ........
c	Net investment earnings, gains, and losses
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

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

Part VI

Land, Buildings, and Equipment. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11a. See Form 990, Part X, line 10.

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	80,373,289		80,373,289
b	Buildings ................	776,067,646	409,735,262	366,332,384
c	Leasehold improvements ............	14,392,536	7,994,495	6,398,041
d	Equipment ................	519,191,727	351,374,730	167,816,997
e	Other .................	67,579,604	43,294,188	24,285,416
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				645,206,127

Schedule D (Form 990) 2014

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. 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. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11c. See Form 990, Part X, line 13.

(a) Description of investment		(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. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value
(1) INTERCOMPANY RECEIVABLES				191,541,430
(2) COI FUND				75,573,913
(3) LONG TERM CAPITAL LEASE				3,774,162
(4) BOND ISSUE COST				1,541,407
(5) ALL OTHER ASSETS				5,787,405




Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				278,218,317

Part X

Other Liabilities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11e or 11f. See Form 990, Part X, line 25.

1.(a) Description of liability		(b) Book value
Federal income taxes		0
DUE TO AFFILIATES		37,031,467
GRADUATE NURSE EDUCATION SETTLEMENT		3,997,455
MED CAP LEASE/CREDIT FACILITY		3,856,368
NOTES PAYABLE TO RELATED PARTY		2,640,000
EXECUTIVE DEFERRED COMPENSATION		1,709,573
ACCRUED INTEREST		179,725
MEDICARE SETTLEMENT		-4,175,455


Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		45,239,133
2. Liability for uncertain tax positions. 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) 2014

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
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 (losses) 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. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
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

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.

Return Reference	Explanation
SCHEDULE D, PART X, LINE 2	NO UNCERTAIN TAX POSITIONS HAVE BEEN IDENTIFIED AS OF DECEMBER 31, 2014.

Schedule D (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the TreasuryInternal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

Information about Schedule H (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

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 criteria used 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? ............................

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

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

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) ..	27,615,139		27,615,139	3.160 %
b	Medicaid (from Worksheet 3, column a) ....	105,442,268	65,962,494	39,479,774	4.520 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .
d	Total Financial Assistance and Means-Tested Government Programs .	133,057,407	65,962,494	67,094,913	7.680 %
Other Benefits		4,306,846	10,690	4,296,156	0.490 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	4,306,846	10,690	4,296,156	0.490 %
f	Health professions education (from Worksheet 5) ..	5,617,069		5,617,069	0.640 %
g	Subsidized health services (from Worksheet 6) ..	29,315		29,315
h	Research (from Worksheet 7)	256,816		256,816	0.030 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	180,028		180,028	0.020 %
j	Total. Other Benefits ..	10,390,074	10,690	10,379,384	1.180 %
k	Total. Add lines 7d and 7j .	143,447,481	65,973,184	77,474,297	8.860 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2014

Schedule H (Form 990) 2014

Page

Part II

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

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support	508	508
4	Environmental improvements	8,009	8,009
5	Leadership development and training for community members
6	Coalition building	2,615,070	2,615,070	0.300 %
7	Community health improvement advocacy
8	Workforce development	234,906	234,906	0.030 %
9	Other
10	Total	2,858,493	2,858,493	0.330 %

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? ..........................

Enter the amount of the organization's bad debt expense. Explain in Part VI the methodology used by the organization to estimate this amount. ......

7,704,863

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. ......

4,777,015

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).....

180,170,791

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

237,077,658

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

-56,906,867

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

Management Companies and Joint Ventures(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 %	(d) Officers, directors, trustees, or key employees' profit % or stock ownership %	(e) Physicians' profit % or stock ownership %
1
2
3
4
5
6
7
8
9
10
11
12
13

Schedule H (Form 990) 2014

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?5 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)							Other (describe)	Facility reporting group
1	SCOTTSDALE HEALTHCARE SHEA MED CTR 9003 E SHEA BOULEVARD SCOTTSDALE,AZ85260 WWW.HONORHEALTH.COM H0154	X	X	X	X	X		A
2	SCOTTSDALE HEALTHCARE OSBORN MED CTR 7400 E OSBORN ROAD SCOTTSDALE,AZ85251 WWW.HONORHEALTH.COM H0107	X	X	X		X		A
3	SCOTTSDALE HEALTHCARE THOMPSON PEAK 7400 E THOMPSON PEAK PARKWAY SCOTTSDALE,AZ85255 WWW.HONORHEALTH.COM H4267	X	X			X		A
4	GREENBAUM SURGICAL SPECIALTY HOSPITAL 3535 N SCOTTSDALE ROAD SCOTTSDALE,AZ85251 WWW.HONORHEALTH.COM SH3394	X	X					A
5	SCOTTSDALE HEALTHCARE REHAB HOSPITAL 8850 E PIMA CENTER PARKWAY SCOTTSDALE,AZ85258 WWW.HONORHEALTH.COM SH5682	X					SPECIALTY CARE - REHABILITATION

Schedule H (Form 990) 2014

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)

	A
Name of hospital facility or letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a State as a hospital facility in the current tax year or the immediately preceding tax year?.......................

Was the hospital facility acquired or placed into service as a tax-exempt hospital in the current tax year or the immediately preceding tax year? If “Yes,” provide details of the acquisition in Section C..........

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 12....................

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 significant 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 Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 12

In conducting its most recent CHNA, did the hospital facility take into account input from persons who represent the broad interests of the community served by the hospital facility, including those with special knowledge of or expertise in public health? If "Yes," describe in Section C 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 Section C................................

Yes

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

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 (list url): SEE SCHEDULE H, PART V, SECTION C

Other website (list url):

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. .............

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 12

Is the hospital facility's most recently adopted implementation strategy posted on a website? ........

Yes

If "Yes" (list url): SEE SCHEDULE H, PART V, SECTION C

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

Describe in Section C how the hospital facility is addressing the significant needs identified in its most recently conducted CHNA and any such needs that are not being addressed together with the reasons why such needs are not being addressed.

12a

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)? ...........................

12a

If "Yes" to line 12a, did the organization file Form 4720 to report the section 4959 excise tax? ......

12b

If "Yes" to line 12b, 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) 2014

Page

Part VFacility Information (continued)

	A
Name of hospital facility or letter of facility reporting group

Yes

Financial Assistance Policy (FAP)

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 included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.%
and FPG family income limit for eligibility for discounted care of 400.%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

If “Yes,” indicate how the hospital facility’s FAP or FAP application form (including accompanying instructions) explained the method for applying for financial assistance (check all that apply):

Described the information the hospital facility may require an individual to provide as part of his or her application.

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application.

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process.

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications.

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?.......

Yes

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url): X

The FAP application form was widely available on a website (list url):

A plain language summary of the FAP was widely available on a website (list url):

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

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 all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

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 individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

	A
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility or other authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?.........

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 18. (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 individuals regarding the individuals’ bills

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that required 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 Section C)

Other (describe in Section C)

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 Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual 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 Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2014

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)

	SCOTTSDALE HEALTHCARE REHAB HOSPITAL
Name of hospital facility or letter of facility reporting group

Line number of hospital facility, or line numbers of hospital facilities in a facility
reporting group (from Part V, Section A):

Yes

Community Health Needs Assessment

Was the hospital facility first licensed, registered, or similarly recognized by a State as a hospital facility in the current tax year or the immediately preceding tax year?.......................

Yes

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 12....................

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 significant 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 Section C)

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

Was the hospital facility’s CHNA conducted with one or more other hospital facilities? If "Yes," list the other hospital facilities in Section C................................

Was the hospital facility’s CHNA conducted with one or more organizations other than hospital facilities?” If “Yes,” list the other organizations in Section C. ............................

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

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

Hospital facility’s website (list url):

Other website (list url):

Made a paper copy available for public inspection without charge at the hospital facility

Other (describe in Section C)

Did the hospital facility adopt an implementation strategy to meet the significant community health needs
identified through its most recently conducted CHNA? If "No," skip to line 11. .............

Indicate the tax year the hospital facility last adopted an implementation strategy: 20

Is the hospital facility's most recently adopted implementation strategy posted on a website? ........

If "Yes" (list url):

If "No," is the hospital facility’s most recently adopted implementation strategy attached to this return? ......

10b

12a

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)? ...........................

12a

If "Yes" to line 12a, did the organization file Form 4720 to report the section 4959 excise tax? ......

12b

If "Yes" to line 12b, 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) 2014

Page

Part VFacility Information (continued)

	SCOTTSDALE HEALTHCARE REHAB HOSPITAL
Name of hospital facility or letter of facility reporting group

Yes

Financial Assistance Policy (FAP)

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 included free or discounted care?

Yes

If “Yes,” indicate the eligibility criteria explained in the FAP:

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 175.%
and FPG family income limit for eligibility for discounted care of 250.%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

Explained the basis for calculating amounts charged to patients?.................

Yes

Explained the method for applying for financial assistance?...................

Yes

Described the information the hospital facility may require an individual to provide as part of his or her application.

Described the supporting documentation the hospital facility may require an individual to submit as part of his or
her application.

Provided the contact information of hospital facility staff who can provide an individual with information about the
FAP and FAP application process.

Provided the contact information of nonprofit organizations or government agencies that may be sources of
assistance with FAP applications.

Other (describe in Section C)

Included measures to publicize the policy within the community served by the hospital facility?.......

If "Yes," indicate how the hospital facility publicized the policy (check all that apply):

The FAP was widely available on a website (list url):

The FAP application form was widely available on a website (list url):

A plain language summary of the FAP was widely available on a website (list url):

The FAP was available upon request and without charge (in public locations in the hospital facility and by mail)

The FAP application form was available upon request and without charge (in public locations in the hospital facility
and by mail)

A plain language summary of the FAP was available upon request and without charge (in public locations in the
hospital facility and by mail)

Notice of availability of the FAP was conspicuously displayed throughout the hospital facility

Notified members of the community who are most likely to require financial assistance about availability of the FAP

Other (describe in Section C)

Billing and Collections

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

	SCOTTSDALE HEALTHCARE REHAB HOSPITAL
Name of hospital facility or letter of facility reporting group

Yes

If "Yes," check all actions in which the hospital facility or a third party engaged:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 18. (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 individuals regarding the individuals’ bills

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

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 Section C)

Other (describe in Section C)

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 Section C)

If "Yes," explain in Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2014

Page

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
A SINGLE SCHEDULE H, PART V, SECTION B WAS COMPLETED FOR FACILITY	REPORTING GROUP A. THE FOLLOWING HOSPITAL FACILITIES ARE INCLUDED IN FACILITY REPORTING GROUP A: 1. SCOTTSDALE HEALTHCARE SHEA MEDICAL CENTER 2. SCOTTSDALE HEALTHCARE OSBORN MEDICAL CENTER 3. SCOTTSDALE HEALTHCARE THOMPSON PEAK HOSPITAL 4. GREENBAUM SURGICAL SPECIALTY HOSPITAL THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINE 5 APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: DURING THE MOST RECENT CHNA, SHC CREATED A COMMUNITY STEWARDSHIP ADVISORY COUNCIL MADE UP OF PEOPLE FROM THE COMMUNITY; INCLUDING BUSINESS, FAITH AND POLITICAL LEADERS. IN ADDITION, PERSONNEL FROM THE LOCAL HEALTH DEPARTMENT (MARICOPA COUNTY DEPARTMENT OF PUBLIC HEALTH) PARTICIPATED ON THE COUNCIL. COUNCIL MEETINGS WERE HELD REGULARLY THROUGHOUT THE YEAR WHERE THE DATA FROM COMMUNITY BENEFIT ACTIVITIES WAS SHARED WITH THE MEMBERS. MEMBERS CONTRIBUTED IN IDENTIFYING THE HIGHEST PRIORITY NEEDS FROM ALL IDENTIFIED NEEDS IN THE CHNA. A LIST OF COUNCIL MEMBERS CAN BE FOUND IN APPENDIX D OF THE MOST RECENT CHNA AVAILABLE ON THE SHC WEBSITE. THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINE 6a APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: THE MOST RECENT SHC CHNA WAS CONDUCTED FOR ALL 4 FACILITIES OPERATED BY SHC: SHC OSBORN MEDICAL CENTER, SHC SHEA MEDICAL CENTER, SHC THOMPSON PEAK HOSPITAL, AND SHC GREENBAUM SURGICAL SPECIALTY HOSPITAL. THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINES 7A AND 7D APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: THE 2012 COMMUNITY NEEDS ASSESMENT IS AVAILABLE AT THE FOLLOWING WEBSITE: HTTPS://WWW.HONORHEALTH.COM/COMMUNITY/COMMUNITY-BENEFIT/COMMUNITY-HEALTH-N EEDS-ASSESSMENT IN ADDITION TO MAKING THE 2012 COMMUNITY HEALTH NEEDS ASSESSMENT AND IMPLEMENTATION PLAN AVAILABLE ON THE SHC WEBSITE, IT WAS ALSO SHARED IN PRESENTATIONS TO KEY COMMUNITY LEADERSHIP GROUPS, OTHER NON-PROFITS, SCHOOL DISTRICTS AND HEALTHCARE PROVIDERS. IN ADDITION, THE MARICOPA COUNTY DEPARTMENT OF PUBLIC HEALTH OWNS THE WEB ADDRESS WWW.MARICOPAHEALTHMATTERS.ORG WHICH HAS A LINK TO THE CHNA LOCATED ON THE SHC WEBSITE. THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINE 11 APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: through the chna process, SHC identified five priority areas: cardiovascular disease, heart failure, diabetes, obesity, and five specific cancers (breast, prostate, lung, colon, and melanoma). shC assessed the different programs offered throughout shC's departments to align them strategically with the five priority areas. for some of the programs, modifications were made to focus objectives towards the five priority areas through prevention and screening. in a few instances, departments developed new programs to meet areas found to be lacking during the program assessment. for example, in fy14 new diabetes self-management courses were offered free to uninsured/underinsured members living with type ii diabetes. shC is also participating in the maricopa county department of public health's health improvement partnership of maricopa county (hipmc). the priorities identified by the health department are lung cancer, diabetes, obesity, heart disease, and access to care. shC did not address every need identified. needs identified that were not prioritized included Alzheimer's disease, influenza and pneumonia, chronic lower respiratory disease, suicide, dehydration, urinary tract infections, and autism. while important needs within the community, the chna steering committee decided to focus on only five priority areas. THIS DECISION WAS BASED ON a number of reasons, including resources available through shC, other organizations already taking the lead on addressing a need, etc.
THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINES 16A	AND 16c APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: THE FINANCIAL ASSISTANCE POLICY (FAP) AND A PLAIN LANGUAGE SUMMARY OF THE FAP ARE AVAILABLE AT THE FOLLOWING WEBSITE: HTTPS://WWW.HONORHEALTH.COM/PATIENTS-VISITORS/FINANCIAL/FINANCIALASSISTANC E-POLICY THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINE 16I APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: ALL PATIENTS ARE PROVIDED A THOROUGH EXPLANATION OF: (1) THE DOCUMENTATION REQUIRED TO BE CONSIDERED FOR FINANCIAL ASSISTANCE, (2) THE GUIDELINES ON THE PROGRAM, AND (3) THE PERCENTAGE DISCOUNTS AVAILABLE BASED ON FAMILY SIZE, INCOME AND BALANCE OF THE ACCOUNT. THE FOLLOWING DESCRIPTION FOR SCHEDULE H, PART V, SECTION B, LINE 22D APPLIES TO ALL HOSPITAL FACILITIES INCLUDED IN FACILITY REPORTING GROUP A: THE ALLOWANCE FOR FINANCIAL ASSISTANCE SERVICE (RECEIVABLE CONTRA ACCOUNT) IS RE-EVALUATED ANNUALLY BASED ON A LOOK BACK METHOD. THIS DISCOUNT IS DETERMINED BY DIVIDING ALL INSURANCE CLAIMS PAID IN FULL BY THE SUM OF THE ASSOCIATED GROSS CHARGES FOR THOSE CLAIMS. THE PAID AMOUNT REPRESENTS THE AMOUNT GENERALLY BILLED FOR PURPOSES OF THIS POLICY AND THEREFORE THE CHARITABLE DISCOUNT WILL BE BASED ON THAT POPULATION OF PAID CLAIMS. THE DISCOUNT AVAILABLE TO PATIENTS WILL BE UPDATED WITHIN 45 DAYS OF THE DATE OF THE LOOK BACK. THE LOOK BACK WILL BE PERFORMED IN MARCH/APRIL TIME FRAME AND POLICY UPDATED IN MAY ON AN ANNUAL BASIS.
SCOTTSDALE HEALTHCARE REHAB HOSPITAL	SCHEDULE H, PART V, SECTION B, LINE 1 SCOTTSDALE HEALTHCARE REHABILITATION HOSPITAL (SHRH) OPENED IN 2013 AND AS SUCH WAS NOT INCLUDED IN SCOTTSDALE HEALTHCARE'S 2012 COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA). AS REQUIRED BY REGULATION, THE NEW HOSPITAL FACILITY COMPLETED ITS CHNA AND ADOPTED AN IMPLEMENTATION STRATEGY DURING 2015. SCHEDULE H, PART V, SECTION B, LINES 17-20 SCOTTSDALE HEALTHCARE REHABILITATION HOSPITAL (SHRH) REQUIRES PATIENTS TO MAKE PAYMENT BEFORE ADMISSION, THEREFORE THERE IS NO BILLING OR COLLECTION POLICY. SCHEDULE H, PART V, SECTION B, LINE 22D SCOTTSDALE HEALTHCARE REHABILITATION HOSPITAL DOES NOT PROVIDE EMERGENCY OR OTHER MEDICALLY NECESSARY CARE AS A REHABILITATION HOSPITAL.

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

Section D. 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?38
Name and address		Type of Facility (describe)
1	North Valley Surgery Center 9522 E San Salvador Drive Scottsdale,AZ85258	Specialty Care
2	Biltmore Surgical Center 2222 E Highland Avenue Suite 100 Phoenix,AZ85016	Specialty Care
3	Scottsdale Medical Imaging MTV 9220 E Mountain View Road Suite 1 Scottsdale,AZ85258	Specialty Care
4	Paramount Surgery Center 1114 S Higley Road Suite 101 Mesa,AZ85206	Specialty Care
5	Scottsdale Medical Imaging TPK 20201 N Scottsdale Healthcare Dr St Scottsdale,AZ85255	Specialty Care
6	Scottsdale Medical Imaging SIC 3501 N Scottsdale Road Suite 130 Scottsdale,AZ85251	Specialty Care
7	Scottsdale Medical Imaging TAS 10575 N Tatum Boulevard Suite C-1 Paradise Valley,AZ85253	Specialty Care
8	Scottsdale Medical Imaging Gilbert Mercy 3645 S Rome Street Suite 101 Gilbert,AZ85297	Specialty Care
9	Scottsdale Healthcare Heart Group 10101 N 92nd Street Suite 101 Scottsdale,AZ85258	Specialty Care
10	Scottsdale Medical Imaging NMRI 9003 E Shea Boulevard Scottsdale,AZ85258	Specialty Care
11	Scottsdale Medical Imaging -N Highland 2222 E Highland Avenue Suite 120 Phoenix,AZ85016	Specialty Care
12	Scottsdale Medical Imaging TC 7301 E 2nd Street Suite 112 Scottsdale,AZ85251	Specialty Care
13	Scottsdale Medical Imaging FH 16838 E Palisades Boulevard Suite Fountain Hills,AZ85268	Specialty Care
14	SHC Gastroenterology Specialists-Osborn 3501 N Scottsdale Road Suite 320 Scottsdale,AZ85251	Specialty Care
15	Scottsdale Healthcare Bariatric Center 10210 N 92nd Street Suite 101 Scottsdale,AZ85258	Specialty Care
16	SHC Surgical & Trauma Specialists-OSBORN 3501 N Scottsdale Road Suite 320 Scottsdale,AZ85251	Specialty Care
17	SHC Gastroenterology Spec-Thompson Peak 20401 N 73rd Street Suite 210 Scottsdale,AZ85255	Specialty Care
18	SHC Primary Care Thompson Peak 20401 N 73rd Street Suite 105 Scottsdale,AZ85255	Primary Care
19	SHC Primary Care Osborn 7301 E 2nd Street Suite 300 Scottsdale,AZ85251	Primary Care
20	SHC Primary Care Shea 10301 N 92nd Street Suite B-201 Scottsdale,AZ85258	Primary Care
21	Scottsdale Healthcare Urgent Care Plus 13843 N Tatum Boulevard Phoenix,AZ85032	Urgent Care
22	SHC Primary Care Paradise Valley 5010 E Shea Boulevard Suite D100 Scottsdale,AZ85254	Primary Care
23	Virginia G Piper Cancer Center 10460 N 92nd Street Suite 206 Scottsdale,AZ85258	Specialty Care
24	Center for Endocrine & Pancreas Surgery 10460 N 92nd Street Suite 401 Scottsdale,AZ85258	Specialty Care
25	SHC Primary Care Arcadia 100 4840 E Indian School Road Suite 1 Phoenix,AZ85018	Primary Care
26	SHC Primary Care Arcadia 101 4840 E Indian School Road Suite 1 Phoenix,AZ85018	Primary Care
27	SHC Primary Care Mesa 1124 E McKellips Road Suite 110 Mesa,AZ85203	Primary Care
28	SHC Primary Care Tempe 1845 E Broadway Road Suite 116 Tempe,AZ85282	Primary Care
29	Scottsdale Medical Imaging NIC 10290 N 92nd Street Suite 100 Scottsdale,AZ85258	Specialty Care
30	SHC Neurology 10250 N 92nd Street Suite 304 Scottsdale,AZ85258	Specialty Care
31	Scottsdale Medical Imaging Mallin 9701 N 91st Street Suite B-108 Scottsdale,AZ85258	Specialty Care
32	Scottsdale Medical Imaging DSR 20940 N Tatum Blvd Bldg B Ste 390 Scottsdale,AZ85255	Specialty Care
33	Scottsdale Medical Imaging CF 33755 N Scottsdale Road Suite 120 Scottsdale,AZ85262	Specialty Care
34	Scottsdale Medical Imaging Greyhawk 20401 N 73rd Street Scottsdale,AZ85255	Specialty Care
35	Scottsdale Medical Imaging North Family 6501 E Greenway Parkway Suite 6-1 Scottsdale,AZ85254	Specialty Care
36	Scottsdale Health Partners 8901 E Mountain View Road Suite 1 Scottsdale,AZ85258	Specialty Care
37	SHC Gastroenterology Specialists - Shea 10250 N 92nd Street Suite 210 Scottsdale,AZ85258	Specialty Care
38	SHC Inpatient Psychiatry 10250 N 92nd Street Suite 304 Scottsdale,AZ85258	Specialty Care

Schedule H (Form 990) 2014

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Part VI

Supplemental Information

Provide the following information.

1	Required descriptions. Provide the descriptions required for Part I, lines 3c, 6a, and 7; Part II and Part III, lines 2, 3, 4, 8 and 9b.
2	Needs assessment. Describe how the organization assesses the health care needs of the communities it serves, in addition to any CHNAs 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.

Form and Line Reference	Explanation
SCHEDULE H, PART I, LINE 6A	scottsdale healthcare hospitals ("shh") prepared a community benefit report in conjunction with its affiliate, john c. lincoln health network for the period beginning january 1, 2014 and ending december 31, 2014. SCOTTSDALE HEALTHCARE CORP.'S (SHC) ANNUAL REPORT HIGHLIGHTS SOME OF THE COMMUNITY BENEFIT ACTIVITIES DONE THROUGHOUT THE FISCAL YEAR. COMMUNITY HEALTH SERVICES IS A DEPARTMENT THAT PROVIDES FREE OR LOW-COST PROGRAMS THROUGHOUT THE SHC SERVICE AREA. PROGRAMS ARE FOR CHILDREN AND ADULTS, RANGING FROM EARLY CHILDHOOD TO THE ELDERLY. PROGRAMS ARE FOCUSED ON PREVENTION WITH EDUCATION ON NUTRITION, TOBACCO CESSATION, AND PHYSICAL ACTIVITY. COMMUNITY HEALTH SERVICES ALSO CONDUCTS HEALTH SCREENINGS FOR EARLY DETECTION OF DISEASES SUCH AS STROKE, HEART DISEASE AND DIABETES. WOMEN'S HEALTH SERVICES IS A DEPARTMENT THAT FOCUSES ON THE UNIQUE NEEDS OF WOMEN. THEIR MOMS ON THE MOVE (M.O.M) IS A PROGRAM FOR SOCIAL INTERACTION, SUPPORT AND PRACTICAL INFORMATION FOR NEW MOTHERS. IN 2014, MORE THAN 1,000 NEW MOMS PARTICIPATED. WOMEN'S HEALTH SERVICES ALSO CONDUCTS SCREENINGS FOR OSTEOPOROSIS AND HEART DISEASE; CONDUCTING 115 BONE DENSITY SCREENINGS AND 553 HEART SCREENINGS IN 2014. FINALLY, THIS DEPARTMENT OFFERS SUPPORT AND EDUCATION FORUMS TO EMPOWER WOMEN TO ENGAGE IN THEIR HEALTH THROUGH EDUCATION TO INCREASE UNDERSTANDING OF DISEASES AND OTHER HEALTH CONDITIONS UNIQUE TO WOMEN. THE VIRGINIA G. PIPER CANCER CENTER OFFERS COMPREHENSIVE CANCER TREATMENT, CLINICAL TRIALS, PREVENTION, AND SUPPORT SERVICES IN COLLABORATION WITH LEADING SCIENTIFIC RESEARCHERS AND COMMUNITY ONCOLOGISTS. MORE THAN 175 COMMUNITY PROGRAMS WERE PROVIDED IN 2014 INCLUDING CANCER RISK, CANCER PREVENTION AND EDUCATION, CANCER SUPPORT GROUPS, AND NUTRITIONAL EDUCATION. THE CENTER'S CANCER CARE COORDINATORS HELP PATIENTS AND FAMILIES AT NO CHARGE BY PROVIDING NEW PATIENT RESOURCES, ONGOING SUPPORT, EDUCATIONAL INFORMATION, AND REFERRALS TO MORE THAN 275 PEOPLE EACH WEEK. THE CENTER ALSO OFFERS AN IN-DEPTH CANCER SURVIVORSHIP PROGRAM. FINALLY, THE CENTER'S CREATIVE ARTS BODY, MIND, AND SPIRIT PROGRAM SAW MORE THAN 3,750 PARTICIPANTS IN 2014. TRAVEL TO RECEIVE DAILY TREATMENT. FINALLY, THE CENTER'S CREATIVE ARTS BODY, MIND, AND SPIRIT PROGRAM SAW MORE THAN 3,154 PARTICIPANTS IN 2013.
MILITARY PARTNERSHIP	SCOTTSDALE HEALTHCARE'S MILITARY PARTNERSHIP ENABLES MEDICAL PERSONNEL FROM ALL BRANCHES OF THE ARMED FORCES TO GAIN SKILLS AND EXPERIENCE NEEDED TO PERFORM SUCCESSFULLY ON COMBAT OR HUMANITARIAN MISSIONS. SINCE ITS BEGINNING IN 2004, SHC'S MILITARY PARTNERSHIP HAS PROVIDED TRAINING TO MORE THAN 2,200 PARTICIPANTS. THE TRAINING INCLUDES HANDS-ON LEARNING THROUGH HIGH-TECH HUMAN PATIENT SIMULATORS, EXPERT LECTURES BY SPECIALIST PHYSICIANS AND CLINICIANS, CLINICAL ROTATIONS AT SCOTTSDALE HEALTHCARE, MARICOPA INTEGRATED HOSPITAL SYSTEMS, AND LUKE AIR FORCE BASE. THE PARTNERSHIP ENSURES THAT MEDICAL PROFESSIONALS ARE READY AND ABLE TO ASSIST AT DISASTER SITES AND HUMANITARIAN MISSIONS AROUND THE WORLD AND BUILDS RELATIONSHIPS BETWEEN SHC AND MILITARY BRANCHES THAT CAN BE BENEFICIAL IN POTENTIAL LOCAL EMERGENCY RESPONSE SITUATIONS. THE PROGRAM ALSO PROVIDES TRAINING TO LOCAL PARAMEDICS AND FIREFIGHTERS. IN 2013, THE MILITARY PARTNERSHIP PARTICIPATED IN ANGEL THUNDER, A U.S. AIR FORCE SEARCH-AND-RESCUE AND MEDICAL EVACUATION EXERCISE. BLACKHAWK AIR EVAC HELICOPTERS FLEW SIMULATED VICTIMS TO SHC STAFF. DISASTER DRILLS LIKE THIS HELP SHC MAINTAIN READINESS FOR PROVIDING MEDICAL CARE DURING A CRISIS OR MASS CASUALTY EVENT. IN 2013, SHC BECAME THE FIRST CIVILIAN HOSPITAL TO OFFER A CRITICAL CARE AND EMERGENCY TRAUMA FELLOWSHIP THROUGH ITS PARTNERSHIP WITH THE U.S. AIR FORCE. A 12-MONTH FELLOWSHIP, GRADUATES EXPERIENCE HANDS-ON TRAINING IN THE LEVEL 1 TRAUMA CENTER AT SCOTTSDALE HEALTHCARE OSBORN MEDICAL CENTER. THE FIRST CLASS OF FELLOWS GRADUATED IN 2014. SHC PROVIDES HEALTH CAREER EDUCATION THROUGH ITS WORKFORCE DEVELOPMENT, PROFESSIONAL NURSING EDUCATION, SCOTTSDALE HEALTHCARE INVESTMENT IN NURSING EXCELLENCE (SHINE), AND GRADUATE MEDICAL EDUCATION. THROUGH PARTNERSHIPS WITH EIGHT COLLEGIATE PARTNERS, INCLUDING SCOTTSDALE COMMUNITY COLLEGE AND GRAND CANYON UNIVERSITY, 369 NURSES PURSUED A BACHELOR'S DEGREE IN NURSING, 119 MASTER'S DEGREES IN NURSING, 134 NURSE PRACTITIONER DEGREES, AND 23 WERE PURSUING A DOCTORATE IN NURSING. ANOTHER 136 WERE ATTENDING PRE-LICENSURE NURSING PROGRAM. IN TOTAL $2,839,511 IN TUITION ASSISTANCE BENEFITS WERE PROVIDED TO STAFF MEMBERS. MORE THAN 244 FAMILY PHYSICIANS HAVE GRADUATED FROM OUR FAMILY MEDICINE RESIDENCY PROGRAM, WITH MANY OF THEM REMAINING IN ARIZONA TO PRACTICE. SHC HAS A PHARMACY RESIDENCY PROGRAM THAT PROVIDES VALUABLE LEARNING TO LICENSED PHARMACISTS INTERESTED IN BECOMING HOSPITAL PHARMACISTS OR CLINICAL PHARMACY SPECIALISTS. ALTHOUGH THE TOTAL TUITION ASSISTANCE IS FOR SHH, THE NUMBER OF STUDENTS RECEIVING ASSISTANCE FOR EACH PROGRAM INCLUDES EMPLOYEES FROM SHH AND ITS AFFILIATE, JOHN C. LINCOLN HEALTH NETOWRK.
SCHEDULE H, PART I, LINE 7	LINE 7A/7B: THE COST-TO-CHARGE WORKSHEETS FROM THE FORM 990 SCHEDULE INSTRUCTIONS WERE USED TO COMPLETE THESE LINES. LINE 7E: COMMUNITY HEALTH IMPROVEMENT COSTS WERE BASED ON AVERAGE SALARIES FOR EACH DEPARTMENT AND THE NUMBER OF EMPLOYEE HOURS DEVOTED TO COMMUNITY HEALTH IMPROVEMENT PROGRAMS. NON-SALARY DIRECT AND INDIRECT COSTS WERE ADDED WHEN APPLICABLE. LINE 7F: HEALTH PROFESSION EDUCATION COSTS WERE BASED ON AVERAGE SALARIES AND HOURS DEVOTED BY STAFF IN TRAINING STUDENTS. STUDENTS INCLUDE NURSES, PHYSICIANS, PHARMACISTS, THERAPISTS. LINE 7G: SUBSIDIZED HEALTH CARE INCLUDES THE LOST INCOME FROM THE SERVICES. LOST INCOME MAY INCLUDE THE COST OF SALARIES AND THE COST OF EQUIPMENT. LINE 7H: RESEARCH INCLUDES THE SALARIES OF RESEARCH STAFF. LINE 7I: CASH AND IN-KIND SERVICES INCLUDE ANY DONATIONS, GRANTS, OR SPONSORSHIPS. IF A DONATION IS NON-MONETARY, A PRICE IS ESTIMATED FOR THE GOOD.
SCHEDULE H, PART II	THE COMMUNITY BUILDING ACTIVITIES THAT SCOTTSDALE HEALTHCARE HOSPITALS ("SHH") HAS IMPLEMENTED ARE DERIVED DIRECTLY FROM THE PAST COMMUNITY NEEDS ASSESSMENTS. SUCH NEEDS AS WEIGHT MANAGEMENT AND OBESITY IN ADULTS AND CHILDREN, EFFECT OF DIABETES AND PREDIABETES AND CANCER DETECTION AND EARLY PREVENTION ARE AMONG THE KEY FINDINGS OF THAT ASSESSMENT. THROUGH PROGRAMS SUCH AS GRAND CANYON TREKKERS, ADDRESSING FITNESS AND EXERCISE IN OUR SCHOOLS, THE EARLY MORNING YOGA CLASSES IN OUR ELEMENTARY SCHOOLS AND THE AOMEN ZONE PROGRAM FOR ELEMENTARY AGE KIDS IN TITLE ONE SCHOOLS, PROMOTION OF POSITIVE SELF ESTEEM, TRAINING IN FITNESS AND EXERCISE AND RE-ENFORCEMENT OF POSITIVE EATING HABITS WHICH COMBAT WEIGHT GAIN THAT LEADS TO OBESITY ARE ACTIVELY DISCUSSED. BY ADDRESSING THE OBESITY ISSUE IN THE COMMUNITY, ITS SECONDARY EFFECTS SUCH AS DIABETES AND PREDIABETES ARE DIAGNOSED AND TREATED IN THEIR EARLY STAGES. THROUGH THE DIABETES PROGRAMMING IN THE NOAH CLINICS, TEACHING IS PROVIDED ON ONE TO ONE AND GROUP SESSIONS RELATED TO THE EFFECTS OF THE DISEASE CO-MORBIDITIES, THE PREVENTION OF CO-MORBIDITIES, THE IMPORTANCE OF MEDICATION AND DIETARY REGIME COMPLIANCE AND THE EMPOWERMENT OF THE INDIVIDUAL IN TAKING RESPONSIBILITY FOR THEIR HEALTH. CANCER SCREENING OF ALL VARIETIES, SKIN, PROSTATE, LUNG, BREAST AND COLON ARE OFFERED TO GIVE THE COMMUNITY ACCESS TO INFORMATION ON PREVENTION AND EARLY DETECTION OF DISEASE. THIS ENABLES TREATMENT IN THE EARLY STAGES OF DISEASE WITH BETTER OUTCOMES AND LESS INVASIVE THERAPIES. OUR ENTIRE COMMUNITY BUILDING PROGRAM IS BUILT ON EVIDENCE BASED GUIDELINES AND PROTOCOLS, PROVEN METHODOLOGIES FOR OBTAINING THE OPTIMAL HEALTH OUTCOMES FOR OUR COMMUNITY.
SCHEDULE H, PART III, LINE 2	NET PATIENT ACCOUNTS RECEIVABLE AND NET PATIENT SERVICE REVENUE HAVE BEEN ADJUSTED TO THE ESTIMATED AMOUNTS EXPECTED TO BE RECEIVED. THESE ESTIMATED AMOUNTS ARE SUBJECT TO FURTHER ADJUSTMENTS UPON REVIEW BY THIRD-PARTY PAYORS. BAD DEBT IS DETERMINED BY THE PATIENT'S OUTSTANDING ACCOUNT BALANCE ON THE DAY THEIR ACCOUNT IS TRANSFERRED TO A BAD DEBT STATUS. THE OUTSTANDING ACCOUNT BALANCE CONSISTS OF GROSS REVENUE LESS ANY CONTRACTUAL ADJUSTMENTS AND PAYMENTS POSTED TO THE ACCOUNT. PAYMENTS MADE AFTER THE ACCOUNT IS IN A BAD DEBT STATUS ARE CONSIDERED RECOVERIES AND WILL REDUCE THE BAD DEBT AMOUNT WHEN PAYMENTS ARE RECEIVED. SCHEDULE H, PART III, LINE 3 THE COST OF BAD DEBT EXPENSE IS DETERMINED USING THE NETWORK'S CALCULATED COST TO CHARGE RATIO APPLIED TO REPORTED GROSS CHARGES WRITTEN OFF DURING THE YEAR. USING A SAMPLE OF ACCOUNTS WRITTEN OFF DURING THE YEAR, THE NETWORK HAS ESTIMATED THAT APPROXIMATELY 62% OF BAD DEBT WAS ATTRIBUTED TO PATIENTS ELIGIBLE UNDER THE NETWORK'S FINANCIAL ASSISTANCE POLICY. A NUMBER OF PATIENTS ARE TRULY UNABLE TO PAY THEIR OUT-OF-POCKET LIABILITY, BUT DO NOT COMPLETE THE PROCESS REQUIRED TO APPLY FOR FINANCIAL ASSISTANCE UNDER THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY. THESE PATIENTS WOULD QUALIFY FOR CHARITY CARE IF THEY COMPLETED THE PAPERWORK, SO THE BAD DEBT EXPENSE ASSOCIATED WITH TREATING THEM IS TREATED AS COMMUNITY BENEFIT.
SCHEDULE H, PART III, LINE 4	THE FOOTNOTE THAT DESCRIBES BAD DEBT IS ON PAGES 10 OF THE ATTACHED AUDITED FINANCIAL STATEMENTS.
SCHEDULE H, PART III, LINE 8	THE AMOUNT ON PART III, LINE 6 IS FROM THE MEDICARE COST REPORTS FILED BY THE ORGANIZATION. THE ENTIRE SHORTFALL REPORTED ON PART III, LINE 7 IS A COMMUNITY BENEFIT. THE RATIONALE FOR INCLUDING MEDICARE LOSSES AS COMMUNITY BENEFIT LIES IN THE NETWORK'S BELIEF THAT, BASED ON IRS REVENUE RULING 69-545, SERVING PATIENTS WITH GOVERNMENT HEALTH BENEFITS SUCH AS MEDICARE IS AN INDICATOR THAT THE NETWORK'S HOSPITALS OPERATE TO PROMOTE THE HEALTH OF THE COMMUNITY AND THEREFORE PROVIDES A COMMUNITY BENEFIT. THE NETWORK ALSO BELIEVES THAT TAX-EXEMPT HOSPITALS PLAY A VITAL ROLE IN PROVIDING THE ELDERLY WITH ACCESS TO HEALTHCARE SERVICES THEY MIGHT OTHERWISE BE DENIED BY FOR-PROFIT AND SPECIALTY HOSPITALS THAT FOCUS ON HIGH-MARGIN SERVICES OR THAT WOULD HAVE TO BE PROVIDED DIRECTLY BY THE FEDERAL GOVERNMENT.
SCHEDULE H, PART III, LINE 9B	PURSUANT TO SHH'S FINANCIAL ASSISTANCE POLICY, SHH WILL NOT PURSUE LEGAL ACTION FOR NON-PAYMENT OF BILLS AGAINST CHARITY CARE PATIENTS WHO HAVE CLEARLY DEMONSTRATED THAT THEY HAVE NEITHER SUFFICIENT INCOME NOR ASSETS TO MEET THEIR FINANCIAL OBLIGATION. SHH WILL NOT PLACE A LIEN ON A CHARITY CARE PATIENT'S PRIMARY RESIDENCE IF THIS IS THE PATIENT'S SOLE REAL ESTATE ASSET UNLESS THE VALUE OF THE PROPERTY CLEARLY INDICATES AN ABILITY TO ASSUME SIGNIFICANT FINANCIAL OBLIGATIONS. SHH WILL NOT EXECUTE A LIEN BY FORCING THE SALE OR FORECLOSURE OF A CHARITY CARE PATIENT'S PRIMARY RESIDENCE TO PAY FOR AN OUTSTANDING MEDICAL BILL. SHH WILL NOT USE BODY ATTACHMENT TO REQUIRE THE CHARITY CARE PATIENT OR RESPONSIBLE PARTY TO APPEAR IN COURT.
SCHEDULE H, PART VI, LINE 2	SHC HAS CONDUCTED A TRIENNIAL NEEDS ASSESSMENT SINCE 2002. THE MOST RECENT REPORT WAS CONDUCTED IN 2012 AND PUBLISHED IN SEPTEMBER 2013 ON THE SHC WEBSITE. THE 2012 CHNA MEETS THE REQUIREMENTS FROM THE CURRENT IRS RULES ESTABLISHED FOR THE 2010 AFFORDABLE CARE ACT. THE CHNA INVOLVED THE ANALYSIS OF BOTH PRIMARY AND SECONDARY DATA. PRIMARY DATA INCLUDED DATA COLLECTED FROM SURVEYS, FOCUS GROUPS, AND KEY INFORMANT INTERVIEWS THAT ASKED THE THOUGHTS AND OPINIONS OF WHAT THE CURRENT HEALTH NEEDS ARE FOR THE SHC SERVICE AREA. SECONDARY DATA INCLUDED DEMOGRAPHICS, COMMUNITY VITAL STATISTICS, CITIES AND TOWNS HEALTH STATUS REPORT, ARIZONA HEALTH SURVEY, AND HOSPITALIZATION AND EMERGENCY DEPARTMENT DATA. THE SHC SERVICE AREA WAS DEFINED BY ZIP CODE BOUNDARIES WHERE THE MAJORITY OF PATIENTS SEEN AT ONE OF THE FOUR HOSPITALS LIVED. IN SOME INSTANCES WHEN ZIP CODE LEVEL DATA WAS UNAVAILABLE, THE SHC SERVICE AREA WAS DEFINED BY EITHER THE CITY OF SCOTTSDALE, THE COUNTY OF MARICOPA, OR IN EXTREME INSTANCES, THE STATE OF ARIZONA. THE DATA WAS COMPILED AND SHARED WITH BOTH INTERNAL (CHNA STEERING COMMITTEE) AND EXTERNAL (COMMUNITY STEWARDSHIP ADVISORY COUNCIL) PARTNERS TO REVIEW AND PRIORITIZE THE NEEDS. ALTHOUGH THE DATA IDENTIFIED ABOUT A DOZEN UNIQUE NEEDS, THE TWO COMMITTEES NARROWED THE LIST TO FIVE PRIORITY AREAS BASED ON A SET OF CRITERIA. THE CRITERIA USED INCLUDED: MAGNITUDE, SEVERITY, HISTORICAL TRENDS, ALIGNMENT OF THE NEED WITH SHC'S STRENGTHS AND PRIORITIES, IMPACT OF THE NEED ON VULNERABLE POPULATIONS, IMPORTANCE OF NEED TO THE COMMUNITY, EXISTING RESOURCES ADDRESSING NEED, RELATIONSHIP OF NEED TO OTHER COMMUNITY ISSUES, FEASIBILITY OF CHANGE AND AVAILABILITY OF TESTED APPROACHES, VALUE OF INTERMEDIATE INTERVENTION VERSUS ANY DELAY. THE FIVE PRIORITY AREAS ARE CARDIOVASCULAR DISEASE, HEART FAILURE, DIABETES, OBESITY, AND FIVE CANCERS (LUNG, BREAST, PROSTATE, COLON, AND MELANOMA). AFTER THE NEEDS WERE PRIORITIZED, A COMMUNITY HEALTH NEEDS ASSESSMENT IMPLEMENTATION PLAN (CHNAIP) WAS DEVELOPED THAT LOOKED AT SPECIFIC SUBPOPULATIONS THAT WOULD BENEFIT THE MOST FROM PREVENTION AND EARLY DETECTION. DURING THE FIRST YEAR (FY14), THE CHNAIP INTENDS TO EXPAND EXISTING AND NEW PROGRAMS IN AREAS THAT TARGET THE FIVE DISEASES TO IMPROVE THE LIVES AND WELL-BEING OF THE POPULATION. BOTH THE CHNA AND CHNAIP WERE APPROVED BY THE SHC BOARD OF DIRECTORS AND PUBLISHED ON HONORHEALTH.COM.
SCHEDULE H, PART VI, LINE 3	SCOTTSDALE HEALTHCARE, THROUGH ITS FINANCIAL ASSISTANCE POLICIES, PROVIDES ASSISTANCE FOR THOSE FROM 100-400% OF THE FEDERAL POVERTY LEVEL BASED ON THE VERIFICATION OF THE PATIENT'S FINANCIAL STATUS. ALL PATIENTS ARE NOTIFIED DURING THEIR ADMISSION PROCESS OF SCOTTSDALE HEALTHCARE'S FINANCIAL ASSISTANCE POLICY. THE FINANCIAL ASSISTANCE POLICY IS AVAILABLE THROUGH SCOTTSDALE HEALTHCARE'S WEBSITE WWW.SHC.ORG. BROCHURES ARE AVAILABLE IN ALL PUBLIC AREAS OF THE HOSPITALS. OUR PATIENTS MAY REQUEST TO SPEAK WITH A FINANCE REPRESENTATIVE AT ANY TIME BEFORE, DURING OR AFTER THEIR STAY IN ONE OF SCOTTSDALE HEALTHCARE'S FACILITIES.
SCHEDULE H, PART VI, LINE 4	SCOTTSDALE HEALTHCARE'S GEOGRAPHIC SERVICE AREA IS COMPRISED OF THE NORTHEAST QUADRANT OF METROPOLITAN PHOENIX. THE BORDERS INCLUDE THE TONTO NATIONAL FOREST TO THE NORTH, HIGHWAY 202 TO THE SOUTH, THE SALT-RIVER PIMA COMMUNITY TO THE EAST, AND THE I-17 TO THE WEST. SPECIFIC CITIES AND TOWNS SERVED INCLUDE SCOTTSDALE, PARADISE VALLEY, NORTHEAST PHOENIX, CAREFREE, CAVE CREEK, RIO VERDE, FOUNTAIN HILLS, NORTHWEST MESA, AND NORTHEAST TEMPE. IN ADDITION, THE SERVICE AREA INCLUDES THE SALT-RIVER PIMA AND FORT MCDOWELL NATIVE AMERICAN COMMUNITIES. THE ESTIMATED POPULATION IN THE SERVICE AREA IS 783,927 BASED ON 2011 ESTIMATES. THE POPULATION IS: 50% FEMALE, 75% WHITE NON-HISPANIC, 16% HISPANIC, 2% BLACK NON-HISPANIC, 3% ASIAN/PACIFIC ISLANDER, AND 4% OTHER. AGE WISE, THE POPULATION IS 19% UNDER 14 YEARS OF AGE, 4% 15-17 YEARS OLD, 9% 18-24, 14% 25-34, 29% 35-54, 13% 55-64, AND 12% 65 AND OLDER. THE DEPENDENCY RATIO IN 2011 WAS 0.61, THIS IS AN INDICATOR OF HOW MANY PEOPLE ARE LIKELY IN THE WORKFORCE (20-64) COMPARED TO THE NUMBER UNLIKELY TO BE IN THE WORKFORCE (UNDER 20 AND OVER 65). WHILE 40% OF THE POPULATION HAS A BACHELOR'S DEGREE OR GREATER, ANOTHER 28% HAS A HIGH SCHOOL DIPLOMA OR LESS. THE DISTRIBUTION OF INCOME SHOWS A WIDE RANGE WITH 16% MAKING LESS THAN $25,000/YEAR WHILE 27% HAVE AN INCOME OVER $100,000. RESIDENTS IN THE OSBORN MEDICAL CENTER SERVICE AREA TEND TO BE LESS EDUCATED AND LESS AFFLUENT COMPARED TO THE SERVICE AREAS OF THE OTHER HOSPITALS THAT MAKE UP SCOTTSDALE HEALTHCARE. AN ESTIMATED 7.5% OF FAMILIES IN THE SERVICE AREA LIVE AT OR BELOW THE FEDERAL POVERTY LEVEL. BESIDES SCOTTSDALE HEALTHCARE, THERE ARE SEVERAL OTHER HOSPITALS LOCATED WITHIN THE SERVICE AREA AND ADDITIONAL HOSPITALS THAT WHILE NOT IN THE SERVICE AREA, HAVE OVERLAPPING SERVICE AREAS. HOSPITALS LOCATED WITHIN THE SERVICE AREA INCLUDE MAYO CLINIC HOSPITAL, PARADISE VALLEY HOSPITAL, AND TEMPE ST. LUKE'S. HOSPITALS THAT SHARE SERVICE AREA INCLUDE JOHN C. LINCOLN NORTH MOUNTAIN, MARICOPA MEDICAL CENTER, AND BANNER GOOD SAMARITAN. FINALLY, THERE ARE THREE SPECIAL POPULATION HOSPITALS THAT MAY PROVIDE SERVICES TO RESIDENTS LIVING IN THE SCOTTSDALE HEALTHCARE SERVICE AREA. THOSE ARE PHOENIX CHILDREN'S HOSPITAL, CARL T. HAYDEN VETERAN'S ADMINISTRATION HOSPITAL, AND PHOENIX INDIAN MEDICAL CENTER. WITHIN THE SHC SERVICE AREA; THERE ARE THREE FEDERALLY DESIGNATED MEDICALLY UNDERSERVED AREAS/POPULATIONS. THE SOUTH CENTRAL PHOENIX AND NORTH TEMPE SERVICE AREAS ARE WITHIN THE SHC OSBORN MEDICAL CENTER SERVICE AREA. THE PARADISE VALLEY DESIGNATED AREA IS WITHIN THE SHC SHEA MEDICAL CENTER SERVICE AREA.
SCHEDULE H, PART VI, LINE 5	THROUGH KEY COMMUNITY PARTNERSHIPS, SCOTTSDALE HEALTHCARE PROVIDES EDUCATION AND PREVENTION ACTIVITIES TO THE ACADEMIC COMMUNITY (ELEMENTARY, HIGH SCHOOL, COMMUNITY COLLEGE AND UNIVERSITY). THESE PROGRAMS ARE AGE-SPECIFIC AND TAILORED TO THE HEALTHCARE CURRICULUM DICTATED BY THE STATE OF ARIZONA. SUPPORT AT THE HIGH SCHOOL LEVEL FOR GRADUATES TO SEEK JOB PLACEMENT AT SCOTTSDALE HEALTHCARE IS A HIGH PRIORITY GIVING THOSE GRADUATES ACCESS TO SCOTTSDALE HEALTHCARE'S TUITION REIMBURSEMENT PROGRAM TO FURTHER THEIR EDUCATION. THE NEIGHBORHOOD OUTREACH ACCESS TO HEALTH (NOAH) PROVIDES CARE FOR THOSE WHO NEED IT MOST. NOAH SERVES AS A HEALTHCARE HOME THAT FOCUSES ON PREVENTION AND PROMOTING HEALTH THROUGH PATIENT-CENTERED MEDICAL HOME OFFERING MEDICAL, DENTAL, AND BEHAVIORAL HEALTH SERVICES. COMMUNITY SCREENINGS ARE CONDUCTED MONTHLY THROUGH SPECIFIC SERVICE LINES AND APPROPRIATE REFERRALS BACK TO PRIMARY CARE PHYSICIANS OR SPECIALTY PHYSICIANS ARE PROVIDED. IF A PATIENT DOES NOT HAVE A PHYSICIAN, ASSISTANCE IS GIVEN TO THAT PERSON TO PROMOTE FOLLOW-UP. PROGRAMS ARE DEVELOPED FOR SPECIFIC VULNERABLE POPULATIONS, FOR EXAMPLE, MATTER OF BALANCE IS A PROGRAM FOCUSED ON REDUCING FALLS AND INCREASING PHYSICAL ACTIVITY IN THE OLDER POPULATION. IN ADDITION, SCOTTSDALE HEALTHCARE SERVES AS A LEAD TRAINING CENTER FOR ALL BRANCHES OF MILITARY MEDICAL PERSONNEL AND COMBAT READINESS MEDICINE.
SCHEDULE H, PART VI, LINE 6	ROLE OF THE BOARD OF DIRECTORS - SCOTTSDALE HEALTHCARE IS GOVERNED BY AN ALL-VOLUNTEER COMMUNITY-BASED BOARD OF DIRECTORS (BOARD). THE BOARD HAS THE RESPONSIBILITY FOR THE DEVELOPMENT AND OVERSIGHT OF SCOTTSDALE HEALTHCARE'S VALUES, VISION, MISSION, LONG-TERM STRATEGY AND DESIRED FUTURE STATE WHICH HAS BEEN DELEGATED TO THE STRATEGIC PLANNING COMMITTEE. THROUGH THESE DOCUMENTS, THE STRATEGIC PLANNING COMMITTEE ASSESSES AND REAFFIRMS SCOTTSDALE HEALTHCARE'S COMMUNITY BENEFIT COMMITMENTS AND CONNECTIONS WITH OUR PRIMARY CONSTITUENCIES. THE STRATEGIC PLANNING COMMITTEE PROVIDES DIRECTION, AND OVERSEES THE CLEAR AND ACCURATE COMMUNICATION OF THESE ACTIVITIES TO KEY STAKEHOLDER GROUPS AND RECOMMENDS RESOURCE TARGETS TO THE FINANCE COMMITTEE FOR ALLOCATION. THE QUALITY COMMITTEE ASSURES MEASUREMENT AND COMPARISON OF SCOTTSDALE HEALTHCARE'S COMMUNITY ACTIVITIES TO EVOLVING NORMS. THE BOARD ULTIMATELY DETERMINES THE INTERNAL AND EXTERNAL AUDIT BENCHMARKS CURRENTLY REPORTED AS A PERCENT OF GROSS REVENUES. ROLE OF THE COMMUNITY LEADERSHIP TEAM - THE PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS APPOINTED THE SR. VICE PRESIDENT/GENERAL COUNSEL TO OVERSEE SCOTTSDALE HEALTHCARE'S COMMUNITY BENEFIT ACTIVITIES. IN THIS ROLE, THE SENIOR VP/GENERAL COUNSEL REPORTS TO THE PRESIDENT WITH AN INDIRECT REPORTING RELATIONSHIP TO THE BOARD OF DIRECTORS. THE SENIOR VP/GENERAL COUNSEL HAS DELEGATED THE IMPLEMENTATION OF THE COMMUNITY BENEFIT PLAN TO THE VICE PRESIDENT COMMUNITY STEWARDSHIP. THE VICE PRESIDENT COMMUNITY STEWARDSHIP HAS CREATED A TEAM OF TALENTED INDIVIDUALS TO IMPLEMENT AND EXECUTE THIS PLAN. THE TEAM IS COMPOSED OF THE DIRECTOR COMMUNITY AND CORPORATE HEALTH, THE DIRECTOR OF MILITARY AFFAIRS AND EMERGENCY PREPAREDNESS AND THEIR IMMEDIATE DIRECT REPORTS. THE TEAM IS CHARGED WITH THE ASSESSMENT, DEVELOPMENT, IMPLEMENTATION AND EVALUATION OF ALL COMMUNITY BASED ACTIVITIES WHOSE KEY FUNCTION IS SERVICE TO THOSE IN NEED, INCREASE ACCESS TO CARE AND HEALTH PROMOTION, PREVENTION, PREPAREDNESS AND PROTECTION. THE COMMUNITY LEADERSHIP TEAM PROVIDES SIGNIFICANT SERVICES TO ITS CONSTITUENTS THROUGH: 1. EMBEDDING SCOTTSDALE HEALTHCARE OUTREACH SERVICES IN THE GREATER SCOTTSDALE COMMUNITY (HEALTH FAIRS, EXECUTIVE PHYSICALS, HEALTH AND WELLNESS PROGRAMMING, VACCINATION AND IMMUNIZATION CLINICS, HEALTH INFORMATION CENTERS, MILITARY TRAINEES); 2. COMMUNITY HEALTH ASSESSMENTS (COMPLETED 2001, 2005, 2008, 2011); 3. NOAH MEDICAL (PRIMARY CARE), DENTAL & BEHAVIORAL CENTERS (30,000 PATIENTS/YEAR); 4. COMMUNITY RESEARCH AND PREVENTION PROGRAMMING (GRAND CANYON TREKKER'S, CHILDHOOD ASTHMA, 2 FIT 2 FALL); 5. HEALTH PREVENTION ACTIVITIES AND SCREENINGS, (BIOMETRICS, STROKE, CARDIOVASCULAR, DIABETES, CANCER); 6. COMMUNITY BENEFIT REPORTING (2005, 2006, 2007, 2008, 2009, 2010, 2011); 7. SPEAKERS BUREAU, PHARMACY CONSULTATIONS, ASK THE EXPERT, HEALTH INFORMATION CENTERS AND MEDICAL LIBRARIES; 8. OCCUPATIONAL HEALTH CLINICS (185 VISITS/DAY); 9. MILITARY RELATIONSHIP MANAGEMENT (AMSUS, SIM-MAN, MEDSTAR MOBILE SIM LAB) AND TRAINING PROGRAMS (GUARD, RESERVES, ACTIVE DUTY, ALL BRANCHES), AIR FORCE NURSE TRANSITION PROGRAM; 10. LEADERSHIP AND PARTICIPATION IN COMMUNITY COLLABORATIVE GROUPS (ROTARY, CHAMBER OF COMMERCE, STARS, SCOTTSDALE UNIFIED SCHOOL DISTRICT, PARADISE VALLEY SCHOOL DISTRICT, BALSZ ELEMENTARY SCHOOL DISTRICT, BRIDGING AZ, ARIZONA WORKSITE WELLNESS, YMCA, COYOTE CRISIS COLLABORATIVE). IN ADDITION TO THESE RESPONSIBILITIES OF THE TEAM, SPECIAL PROJECTS ARE UNDERTAKEN EACH YEAR TO FURTHER THE VALUES, VISION, MISSION, STRATEGIC PLAN AND DESIRED FUTURE STATE OF SCOTTSDALE HEALTHCARE AND TO DOCUMENT OUR COMMITMENT TO THE COMMUNITY. ROLE OF THE COMMUNITY ADVISORY COUNCIL - THE COMMUNITY STEWARDSHIP ADVISORY COUNCIL CONVENED IN 2009 TO STEWARD THE RESOURCES OF SCOTTSDALE HEALTHCARE BY GUIDING AND PROVIDING DIRECTION FOR OUR COMMUNITY BENEFIT PROGRAM AND COMMUNITY RELATIONSHIP BUILDING ACTIVITIES. INTEGRAL TO ITS PURPOSE IS A WELL-ROUNDED UNDERSTANDING OF COMMUNITY BENEFIT AND SOCIAL RESPONSIBILITY TACTICS FOR NON-PROFIT, TAX-EXEMPT ORGANIZATIONS SUCH AS SCOTTSDALE HEALTHCARE. THE CHAIR OF THE COUNCIL WAS DETERMINED IN CONJUNCTION WITH EXECUTIVE LEADERSHIP AND THE CHAIRMAN OF THE BOARD. VIRGINIA KORTE, CEO OF STARS AND LONG TIME COMMUNITY LEADER, HAS BEEN APPOINTED AND CONTINUES TO SERVE. THE COUNCIL IS COMPRISED OF SUFFICIENT MEMBERS TO ADEQUATELY REPRESENT OUR VULNERABLE POPULATIONS AND THE KEY COMMUNITY BENEFIT ACTIVITIES OF SCOTTSDALE HEALTHCARE. MEMBERSHIP INCLUDES OPERATIONAL AND CORPORATE LEADERSHIP, BOARD OF DIRECTORS, COMMUNITY AT LARGE MEMBERS, SCOTTSDALE HEALTHCARE FOUNDATION AND OTHER NON-PROFIT 501(C)(3) ORGANIZATIONS. EACH MEMBER SHALL SERVE FOR A MINIMUM OF ONE YEAR OR UNTIL THEIR SUCCESSOR HAS BEEN APPOINTED. THE COUNCIL MEETS QUARTERLY TO ADVISE THE COMMUNITY STEWARDSHIP LEADERSHIP AND EVALUATE AND MAKE RECOMMENDATIONS TO THE ANNUAL COMMUNITY BENEFIT PLAN AND SUBSEQUENT COMMUNITY BENEFIT REPORT. THE COUNCIL FUNCTIONS IN AN ADVISORY CAPACITY TO EXECUTIVE LEADERSHIP ON THE FOLLOWING: 1. STRATEGIC FIT OF COMMUNITY BUILDING ACTIVITIES WITH THE VALUES, VISION, MISSION AND CORE INITIATIVES OF SCOTTSDALE HEALTHCARE AND THE NEEDS OF THE COMMUNITY; 2. MAINTENANCE AND ANNUAL REVIEW OF SCOTTSDALE HEALTHCARE'S ORGANIZATIONAL MISSION; 3. REVIEW OF DATA COMPRISING COMMUNITY BUILDING ACTIVITIES REQUIRED BY REGULATORY AGENCIES SPECIFICALLY SCHEDULE H OF IRS FORM 990 FOR TAX EXEMPTION; 4. REVIEW OF THE ANNUAL COMMUNITY BENEFIT REPORT; 5. ADVICE REGARDING COMMUNITY BENEFIT AND SOCIAL RESPONSIBILITY KNOWLEDGE DEFICITS AND CORRECTIVE ACTIONS; 6. ORGANIZATIONAL EDUCATION PLAN REGARDING COMMUNITY BUILDING ACTIVITIES; 7. REVIEW OF PERTINENT POLICIES RELATING TO COMMUNITY BENEFIT (FINANCIAL ASSISTANCE POLICY); 8. TRIENNIAL COMMUNITY HEALTH ASSESSMENT PROCESS, DATA COLLECTION AND ACTION PLAN;
SCHEDULE H, PART VI, LINE 7	SCOTTSDALE HEALTHCARE PUBLISHES A COMMUNITY BENEFIT REPORT ONLY IN THE STATE OF ARIZONA. THE STATE OF ARIZONA DOES NOT REQUIRE FILING.

Schedule H (Form 990) 2014

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, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

Information about Schedule J (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

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....

Yes

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

Yes

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? ................

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), 501(c)(4), and 501(c)(29) organizations 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) 2014

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 in column(B) 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)
1THOMAS SadvaryDIRECTOR/CEO, SLHN	(i) (ii)	0 ............................... 950,467	0 ............................... 476,866	0 ............................... 22,143	0 ............................... 27,948	0 ............................... 5,844	0 ............................... 1,483,268	0 ............................... 0
2Rhonda ForsythDIRECTOR/PRESIDENT, SLHN	(i) (ii)	0 ............................... 827,708	0 ............................... 391,180	0 ............................... 17,993	0 ............................... 12,572	0 ............................... 6,146	0 ............................... 1,255,599	0 ............................... 0
3James Burke MDSVP/CHIEF PHYSICIAN EXECUTIVE	(i) (ii)	0 ............................... 420,984	0 ............................... 162,625	0 ............................... 30,034	0 ............................... 27,920	0 ............................... 5,104	0 ............................... 646,667	0 ............................... 0
4Alan KellySVP/General Counsel	(i) (ii)	0 ............................... 391,872	0 ............................... 134,693	0 ............................... 12,427	0 ............................... 10,409	0 ............................... 2,987	0 ............................... 552,388	0 ............................... 0
5Todd LaPorteSVP/CFO & STRATEGIC PLANNING	(i) (ii)	0 ............................... 567,011	0 ............................... 144,136	0 ............................... 22,335	0 ............................... 27,915	0 ............................... 9,895	0 ............................... 771,292	0 ............................... 0
6Carol Henderson MCCUNESVP/CHIEF TALENT OFFICER	(i) (ii)	0 ............................... 363,288	0 ............................... 126,889	0 ............................... 16,084	0 ............................... 10,417	0 ............................... 9,660	0 ............................... 526,338	0 ............................... 0
7Nathan AnspachSVP/Physician Network & Amb.	(i) (ii)	0 ............................... 361,341	0 ............................... 126,775	0 ............................... 8,021	0 ............................... 29,382	0 ............................... 5,246	0 ............................... 530,765	0 ............................... 0
8Gary BakerSVP/OPERATIONS	(i) (ii)	394,864 ............................... 0	108,067 ............................... 0	10,200 ............................... 0	27,922 ............................... 0	7,439 ............................... 0	548,492 ............................... 0	0 ............................... 0
9Alaina ChabrierVP Marketing & Communications	(i) (ii)	0 ............................... 255,288	0 ............................... 78,666	0 ............................... 3,889	0 ............................... 27,214	0 ............................... 6,801	0 ............................... 371,858	0 ............................... 0
10Joanne ClavelleSVP/CCO	(i) (ii)	327,554 ............................... 0	65,281 ............................... 0	15,900 ............................... 0	12,286 ............................... 0	5,385 ............................... 0	426,406 ............................... 0	0 ............................... 0
11David LamparterINTEGRATION OFFICER	(i) (ii)	0 ............................... 491,145	0 ............................... 164,574	0 ............................... 31,171	0 ............................... 15,902	0 ............................... 7,444	0 ............................... 710,236	0 ............................... 0
12John Harrington JRSVP/Operations	(i) (ii)	0 ............................... 403,626	0 ............................... 180,793	0 ............................... 9,444	0 ............................... 27,824	0 ............................... 0	0 ............................... 621,687	0 ............................... 0
13Bruce PearsonSVP/Operations	(i) (ii)	0 ............................... 430,701	0 ............................... 202,269	0 ............................... 9,118	0 ............................... 27,086	0 ............................... 9,375	0 ............................... 678,549	0 ............................... 0
14Chuck ScullySVP/CIMO	(i) (ii)	0 ............................... 137,175	0 ............................... 40,000	0 ............................... 11,851	0 ............................... 0	0 ............................... 2,441	0 ............................... 191,467	0 ............................... 0
15Rich Silver MDVP Physician Alignment	(i) (ii)	0 ............................... 390,336	0 ............................... 76,136	0 ............................... 9,585	0 ............................... 72,367	0 ............................... 4,466	0 ............................... 552,890	0 ............................... 0
16David RizikMedical Director	(i) (ii)	827,946 ............................... 0	9,479 ............................... 0	9,942 ............................... 0	27,900 ............................... 0	9,895 ............................... 0	885,162 ............................... 0	0 ............................... 0
17Frank MitchellMedical Director	(i) (ii)	513,408 ............................... 0	290,218 ............................... 0	7,890 ............................... 0	27,900 ............................... 0	6,592 ............................... 0	846,008 ............................... 0	0 ............................... 0
18Robin BlackstoneMedical Director	(i) (ii)	430,682 ............................... 0	331,767 ............................... 0	7,743 ............................... 0	27,900 ............................... 0	1,479 ............................... 0	799,571 ............................... 0	0 ............................... 0
19Jeffrey Van Lier RibbinkSurgical Oncologist	(i) (ii)	444,496 ............................... 0	209,023 ............................... 0	7,965 ............................... 0	27,900 ............................... 0	8,695 ............................... 0	698,079 ............................... 0	0 ............................... 0
20James SwainBariatric Surgeon	(i) (ii)	323,222 ............................... 0	284,897 ............................... 0	4,130 ............................... 0	10,400 ............................... 0	3,220 ............................... 0	625,869 ............................... 0	0 ............................... 0

Schedule J (Form 990) 2014

Page 3

Part III

Supplemental Information

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.

Return Reference	Explanation
SCHEDULE J, PART I, LINE 1	HOUSING ALLOWANCE - THE HOUSING ALLOWANCE IS A TEMPORARY ALLOWANCE WHICH IS TAXABLE AND PAID THROUGH PAYROLL ON THE FIRST PAYCHECK OF EACH MONTH DURING THE PERIOD OF THE TEMPORARY HOUSING. THIS IS PART OF THE RELOCATION PACKAGE FOR MANAGERS AND ABOVE AS WELL AS PHYSICIANS. THE AMOUNT PAID PER MONTH AND THE LENGTH IS DETERMINED BY THE LEVEL OF THE POSITION. TAX GROSS-UP PAYMENTS - THESE ARE PAYMENTS FOR: 1.) EMPLOYEES RECEIVING A TAXABLE AWARD, GIFT, OR GIFT CERTIFICATE; 2.) PAYMENTS MADE ON BEHALF OF STAFF TO VENDORS DUE TO A CRISIS; 3.) GROUP TERM LIFE EXCESS BENEFIT OF $50,000. IT IS AVAILABLE TO ANY RANK OF EMPLOYEE; OR 4.) A DOMESTIC PARTNER. IT IS AVAILABLE AT OPEN ENROLLMENT FOR INDIVIDUALS WHO WANT TO COVER THEIR NON-MARRIED PARTNER WITH MEDICAL AND/OR DENTAL COVERAGE. SCHEDULE J, PART I, LINE 3 THE CEO OF SCOTTSDALE HEALTHCARE HOSPITALS IS COMPENSATED BY SCOTTSDALE LINCOLN HEALTH NETWORK (SLHN), A RELATED TAX-EXEMPT ORGANIZATION. SLHN'S COMPENSATION PROCESS USED THE FOLLOWING METHODS: 1) COMPENSATION COMMITTEE; 2) INDEPENDENT COMPENSATION CONSULTANT; 3) COMPENSATION SURVEY OR STUDY; AND 4) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.
Schedule J, Part I, Line 4B	SLHN OFFERS CERTAIN EXECUTIVES A NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). IT IS INTENDED THAT THIS PLAN BE AN INELIGIBLE DEFERRED COMPENSATION PLAN UNDER THE PROVISIONS OF CODE SECTION 457(F) AND BE OPERATED IN COMPLIANCE WITH CODE SECTION 409A. THE DESIGN OF THE SERP IS SUCH THAT IT PROVIDES A MECHANISM FOR RESTORATION OF DEFERRED RETIREMENT THAT OTHERWISE WOULD BE LOST TO THE EXECUTIVES DUE TO MANDATORY CAP ON DEFERRALS WITHIN THE QUALIFIED RETIREMENT PLAN OFFERED TO OTHER EMPLOYEES OF SLHN. THE SERP IS ALSO DESIGNED TO DISCOURAGE EXECUTIVE TURNOVER, WHICH COULD HAMPER ORGANIZATIONAL STABILITY AND SUSTAINABILITY, THROUGH THE AGE AND SERVICE REQUIREMENTS THAT AN EXECUTIVE MUST MEET IN ORDER TO RECEIVE BENEFITS FROM THIS PLAN. THE ANNUAL VALUE OF EACH EXECUTIVE'S PARTICIPATION IN THE PLAN IS TAKEN INTO CONSIDERATION AS PART OF THE CALCULATION OF TOTAL COMPENSATION WHEN TESTED AGAINST THE MARKET FOR REASONABLENESS. DEFERRED COMPENSATION, REPORTED IN SCHEDULE J, PART II, COLUMN (C), INCLUDES THE INCREASE IN VALUE OF THE SERP ACCOUNT FOR THE FOLLOWING INDIVIDUALS: NATHAN ANSPACH GARY BAKER JAMES BURK ALAINA CHABRIER JOANNE CLAVELLE RHONDA FORSYTH JOHN HARRINGTON, JR ALAN KELLY DAVID LAMPARTER TODD LAPORTE CAROL HENDERSON MCCUNE BRUCE PEARSON THOMAS SADVARY RICH SILVER, MD
SCHEDULE J, PART I, LINE 7	CERTAIN EXECUTIVES AND MANAGEMENT TEAM MEMBERS ARE ELIGIBLE FOR DISCRETIONARY INCENTIVE BONUSES DETERMINED THROUGH A REVIEW OF SYSTEM AND INDIVIDUAL ACCOMPLISHED GOALS.

Schedule J (Form 990) 2014

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990.
SchKMediumBullet

Information about Schedule K (Form 990) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number
86-0181654

Part I

Bond Issues

(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	(g) Defeased		(h) On behalf of issuer		(i) Pool financing
(a) Issuer name		(b) Issuer EIN	(c) CUSIP #	(d) Date issued	(e) Issue price	(f) Description of purpose	Yes	No	Yes	No	Yes	No
A	ARIZONA HEALTH FACILITIES AUTHORITY	86-0453292	040507PS8	12-23-2014	342,354,232	SEE PART VI		X	X			X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . . .	0
2 Amount of bonds legally defeased . . . . . . . . . . .	0
3 Total proceeds of issue . . . . . . . . . . . . . .	342,354,232
4 Gross proceeds in reserve funds . . . . . . . . . . . .	0
5 Capitalized interest from proceeds . . . . . . . . . . .	0
6 Proceeds in refunding escrows . . . . . . . . . . . .	264,023,247
7 Issuance costs from proceeds . . . . . . . . . . . .	3,330,985
8 Credit enhancement from proceeds . . . . . . . . . . .	0
9 Working capital expenditures from proceeds . . . . . . . . .	0
10 Capital expenditures from proceeds . . . . . . . . . . .	0
11 Other spent proceeds . . . . . . . . . . . . . .	0
12 Other unspent proceeds . . . . . . . . . . . . . .	75,000,000
13 Year of substantial completion . . . . . . . . . . . .
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . . .	X
15 Were the bonds issued as part of an advance refunding issue? . . . . .	X
16 Has the final allocation of proceeds been made? . . . . . . . .		X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . .

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2014

Page 2

Part III

Private Business Use (Continued)

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

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T, Arbitrage Rebate, Yield Reduction and Penalty in Lieu of Arbitrage Rebate? . .		X
2 If "No" to line 1, did the following apply? . . . .
a Rebate not due yet? . . . . . . . .	X
b Exception to rebate? . . . . . . . .		X
c No rebate due? . . . . . . . .		X
If "Yes" to line 2c, provide in Part VI the date the rebate computation was performed . . . . . .
3 Is the bond issue a variable rate issue? . . . .	X
4a Has the organization or the governmental issuer entered into a qualified hedge with respect to the bond issue?		X
b Name of provider . . . . . . . . .	0
c Term of hedge . . . . . . . . . .
d Was the hedge superintegrated? . . . .
e Was the hedge terminated? . . . . . .

Schedule K (Form 990) 2014

Page 3

Part IV

Arbitrage (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
5a Were gross proceeds invested in a guaranteed investment contract (GIC)? . . . . . . . . .		X
b Name of provider . . . . . . . . .	0
c Term of GIC . . . . . . . . . .
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? . . . . .
6 Were any gross proceeds invested beyond an available temporary period? . . . . . . . .		X
7 Has the organization established written procedures to monitor the requirements of section 148? . . .	X

Part V

Procedures To Undertake Corrective Action

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
Has the organization established written procedures to ensure that violations of federal tax requirements are timely identified and corrected through the voluntary closing agreement program if self-remediation is not available under applicable regulations?	X

Part VI

Supplemental Information. Provide additional information for responses to questions on Schedule K (see instructions).

Return Reference	Explanation
.	Schedule K, Part I, COLUMN (F) FINANCE CAPITAL IMPROVEMENTS, and refund the following bond issuances: Series 2005, 2005B, 2007 and 2012 and a portion of 2008A.

Schedule K (Form 990) 2014

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

Information about Schedule L (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

Part I

Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) 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 ...... $						0

Part III

Grants or Assistance Benefiting 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) 2014

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) ELIZABETH FARHART	SPOUSE OF BOARD MEMBER	145,836	EMPLOYEE COMPENSATION		No
(2) KAREN BURKE	SPOUSE OF OFFICER	88,527	EMPLOYEE COMPENSATION		No
(3) LAUREN MCCUNE	DAUGHTER OF OFFICER	57,407	EMPLOYEE COMPENSATION		No
(4) JOHN MCCUNE	SON OF OFFICER	49,298	EMPLOYEE COMPENSATION		No
(5) LEE SILVER	DAUGHTER OF KEY EMPLOYEE	31,897	EMPLOYEE COMPENSATION		No

Part V

Supplemental Information
Provide additional information for responses to questions on Schedule L (see instructions).

Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2014

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 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

SCOTTSDALE HEALTHCARE HOSPITALS

Employer identification number

86-0181654

Return Reference	Explanation
FORM 990, PART I, LINE 6	SCOTTSDALE HEALTHCARE HOSPITALS VOLUNTEERS PARTNER WITH OUR HOSPITAL STAFF TO PROVIDE PATIENT AND FAMILY SERVICES AT OUR THREE CAMPUSES. THEIR PERSONALIZED SERVICE TO EACH PATIENT AND FAMILY MEMBERS CONTRIBUTES TO THEIR WORLD CLASS HEALTHCARE EXPERIENCE. FORM 990, PART III, LINE 2 AND PART VI, LINE 4 In December 2014, articles of amendment and merger were filed with the State of Arizona, along with an Agreement and Plan of Merger, to effect a merger of John C. Lincoln Health Network (JCLHN), Scottsdale Lincoln Health Network (SLHN) and Scottsdale Healthcare Realty Corp (SHRC) into Scottsdale Healthcare Hospitals (SHH) as the remaining corporation. The merger is effective 1/1/15. All property of the merged entities was transferred to SHH as the remaining corporation. The officer and director positions of the merged corporations terminated as of the merger effective date. The officer and director positions of the remaining corporation, SHH, continue after the effective date until such officer and director successors are elected or appointed.
FORM 990, PART III, LINE 4A	SCOTTSDALE HEALTHCARE HOSPITALS (SHH) OPERATES THREE ACUTE-CARE COMMUNITY HOSPITALS WHICH INCLUDE THREE EMERGENCY DEPARTMENTS AND ONE LEVEL I TRAUMA CENTER AS FOLLOWS: OSBORN CAMPUS - THE SCOTTSDALE HEALTHCARE OSBORN CAMPUS IS A 340-BED HOSPITAL OFFERING THE ONLY LEVEL 1 TRAUMA CENTER FOR THE EASTERN PORTION OF THE GREATER PHOENIX METROPOLITAN AREA. THE TRAUMA CENTER SERVES A POPULATION OF APPROXIMATELY TWO AND A HALF MILLION PEOPLE. THE TRAUMA CENTER IS ONE OF ONLY SEVEN SUCH FACILITIES IN THE ENTIRE STATE OF ARIZONA. THE TRAUMA CENTER SERVES PATIENTS FROM AS FAR EAST AS NEW MEXICO, AS FAR NORTH AS NEVADA, AND AS FAR SOUTH AS TUCSON. OSBORN'S EMERGENCY DEPARTMENT ANNUALLY PROVIDES CARE FOR OVER 54,000 PATIENT VISITS WITH OVER 3,300 TRAUMA CASES. SHEA CAMPUS - SCOTTSDALE HEALTHCARE SHEA IS SHH'S SECOND HOSPITAL FACILITY WITH 433 BEDS. THE SHEA CAMPUS' EMERGENCY DEPARTMENT PROVIDES CARE FOR OVER 46,000 EMERGENCY DEPARTMENT PATIENT VISITS PER YEAR. THOMPSON PEAK CAMPUS - SHH'S THIRD HOSPITAL, SCOTTSDALE HEALTHCARE THOMPSON PEAK, OPENED IN NOVEMBER 2007 AND HAS 64 BEDS. THE THOMPSON PEAK CAMPUS EMERGENCY DEPARTMENT PROVIDED CARE FOR OVER 19,000 PATIENT VISITS LAST YEAR. GREENBAUM SURGICAL SPECIALTY HOSPITAL OFFERS AN OUTPATIENT ENVIRONMENT FOR INPATIENT CASES. THE TWO-STORY, 60,000 SQ. FT. SURGICAL FACILITY IS DESIGNED FOR MINIMALLY INVASIVE PROCEDURES THAT ALLOW SURGICAL PATIENTS TO RECOVER AND RETURN TO NORMAL ACTIVITY IN A SHORTER PERIOD OF TIME. CONVENIENTLY LOCATED IN DOWNTOWN SCOTTSDALE, THE GREENBAUM SURGICAL SPECIALTY HOSPITAL AT SCOTTSDALE HEALTHCARE OSBORN MEDICAL CENTER COMBINES TRADITIONAL OUTPATIENT SURGICAL CAPABILITIES WITH THE ABILITY TO ACCOMMODATE MORE COMPLICATED PROCEDURES SUCH AS TOTAL JOINT REPLACEMENT AND SPINAL SURGERY. THE CENTER INCLUDES 26 PRIVATE, HOME-LIKE ROOMS FOR PATIENTS REQUIRING A BRIEF RECOVERY FOLLOWING SURGERY. OUR SURGERY CENTER FEATURES: - SPECIFICALLY DESIGNED FOR MINIMALLY INVASIVE SURGERY - ABILITY TO PERFORM TOTAL JOINT REPLACEMENT AND SPINAL SURGERY - 10 HIGH-TECH EFFICIENT OPERATING ROOMS - 26 PRIVATE SHORT-STAY HOSPITAL ROOMS - CHRONIC PAIN MANAGEMENT - TWO VIP ROOMS - VIDEO CONFERENCE CAPABILITIES - EDUCATIONAL TRAINING LABS - PEACEFUL HOME-LIKE RECOVERY ENVIRONMENT. PIPER OUTPATIENT SURGERY PROVIDES PERSONALIZED HIGH QUALITY CARE FOR PATIENTS UNDERGOING A SURGICAL PROCEDURE. PATIENTS RECEIVE COMPREHENSIVE NURSING CARE FROM THE TIME OF THEIR ADMISSION UNTIL THEY ARE SAFELY DISCHARGED FROM THE FACILITY. IN ADDITION, PIPER OFFERS A UNIQUELY QUIET NURSING CARE UNIT THAT OFFERS A RESTFUL, HEALING ENVIRONMENT FOR PATIENTS NEEDING TO STAY AN EXTRA 1 TO 2 DAYS, AND ALLOWS FOR ONE ADULT FAMILY MEMBER TO STAY OVERNIGHT WITH THE PATIENT. THE SURGERY CENTER IS LOCATED ON THE SHEA CAMPUS OF SCOTTSDALE HEALTHCARE; A SECOND FLOOR BRIDGE PROVIDES IMMEDIATE ACCESS TO ALL HOSPITAL DEPARTMENTS AND SERVICES OFFERED. THE PIPER CENTER FEATURES STATE OF THE ART TECHNOLOGY FOR MINIMALLY INVASIVE SURGERY, 10 MULTISPECIALTY OPERATING ROOMS, 9 SPACIOUS AND PRIVATE SHORT TERM STAY HOSPITAL ROOMS, INDIVIDUALIZED PATIENT CARE PROVIDED BY SKILLED MEDICAL TEAMS, FAMILY WAITING AREAS DESIGNED ON TWO SEPARATE FLOORS. SCOTTSDALE HEALTHCARE FACILITIES OFFER A WIDE RANGE OF HOSPITAL BASED AND OUTPATIENT MEDICAL SERVICES AND PROGRAMS: - BALANCE & VESTIBULAR CENTER - BARIATRIC WEIGHT LOSS SURGERY - CANCER CARE - COMMUNITY HEALTH - CORPORATE HEALTH - DIABETES MANAGEMENT - DIAGNOSTIC IMAGING SERVICES - DIGESTIVE DISORDERS - EMERGENCY SERVICES - ESSENTIAL TOUCH WELLNESS CENTER AND BOUTIQUE - HEART & VASCULAR - HOME HEALTH SERVICES - INFUSION & TREATMENT SERVICES - MATERNITY SERVICES - MEN'S HEALTH - MINIMALLY INVASIVE SURGERY - NEUROSCIENCES, NUTRITION SERVICES - ORTHOPEDIC SERVICES - OUTPATIENT THERAPY SERVICES - PAIN MANAGEMENT - PEDIATRICS - SLEEP DISORDERS CENTER - TRAUMA CENTER - WEIGHT MANAGEMENT - WOMEN'S HEALTH - WOUND MANAGEMENT SHH'S BOARD OF DIRECTORS IS MADE UP OF COMMUNITY LEADERS, A MAJORITY OF WHOM ARE INDEPENDENT FROM THE HOSPITAL AND FROM ONE ANOTHER. SHH ALSO MAINTAINS AN OPEN MEDICAL STAFF POLICY. SHH PARTICIPATES IN MEDICARE AND MEDICAID PROGRAMS AS WELL AS OTHER GOVERNMENT HEALTH PROGRAMS. SHH'S EMERGENCY ROOMS AND TRAUMA CARE CENTER ARE OPEN TO PATIENTS REGARDLESS OF ABILITY TO PAY, PURSUANT TO ITS FINANCIAL ASSISTANCE POLICY.
FORM 990, PART VI, LINE 1a	THERE IS AN EXECUTIVE COMMITTEE WHICH IS COMPRISED OF THE SAME INDIVIDUALS SERVING AS MEMBERS OF SCOTTSDALE LINCOLN HEALTH NETWORKS' (SLHN) EXECUTIVE COMMITTEE. THE INITIAL EXECUTIVE COMMITTEE IS COMPRISED OF EQUAL MEMBERS FROM BOTH SHH AND JOHN C. LINCOLN HEALTH NETWORK (JCLHN). DURING THE INITIAL PERIOD, SLHN'S CHAIR AND VICE CHAIR SERVE AS CHAIR AND VICE CHAIR OF THE EXECUTIVE COMMITTEE, RESPECTIVELY. THE EXECUTIVE COMMITTEE HAS THE POWER AND AUTHORITY OF THE BOARD OF DIRECTORS TO TRANSACT ALL REGULAR BUSINESS OF THE CORPORATION AND SUCH OTHER MATTERS AS MAY BE DELEGATED TO IT BY THE BOARD DIRECTORS IN THE INTERVALS BETWEEN MEETINGS OF THE BOARD OF DIRECTORS.
FORM 990, PART VI, LINE 6	The sole member of Scottsdale Healthcare Hospitals, is Scottsdale Lincoln Health Network, A RELATED TAX-EXEMPT ORGANIZATION.
FORM 990, PART VI, LINE 7A	THE BOARD OF DIRECTORS OF SCOTTSDALE LINCOLN HEALTH NETWORK HAS THE RIGHT TO ELECT AND APPROVE THE BOARD OF DIRECTORS OF SCOTTSDALE HEALTHCARE HOSPITALS. THE CEO AND THE PRESIDENT OF SCOTTSDALE LINCOLN HEALTHCARE NETWORK BOTH SERVE AS EX OFFICIO DIRECTORS WITH VOTING RIGHTS.
FORM 990, PART VI, LINE 7B	THE FOLLOWING SUBSTANTIAL ACTIONS CANNOT BE TAKEN WITHOUT THE APPROVAL OF SCOTTSDALE LINCOLN HEALTH NETWORK: A) REPEALING, ALTERING, AMENDING OR RESTATING THE BYLAWS OR THE CORPORATION'S ARTICLES OF INCORPORATION; B) MERGING WITH ANOTHER CORPORATION OR ENTITY; C) DISSOLVING THE CORPORATION; D) GUARANTEEING THE OBLIGATIONS OF ANOTHER ENTITY OR INDIVIDUAL; E) SELLING OR TRANSFERRING ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE CORPORATION.
FORM 990, PART VI, LINE 11B	THE TAX RETURN INFORMATION IS GATHERED BY THE FINANCE TEAM FROM VARIOUS SOURCES WITHIN THE ORGANIZATION INCLUDING HUMAN RESOURCES, PAYROLL, DEVELOPMENT AND THE LEGAL DEPARTMENT. THE INFORMATION IS REVIEWED BY THE SCOTTSDALE LINCOLN HEALTH NETWORK (SLHN) CONTROLLER AND PROVIDED TO AN ACCOUNTING FIRM THAT PREPARES THE TAX RETURNS. AN INITIAL DRAFT OF THE FORM 990 IS SUBMITTED TO THE SLHN CONTROLLER AND SLHN CHIEF FINANCIAL OFFICER FOR REVIEW. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A REVISED DRAFT THAT IS PRESENTED TO THE BOARD OF DIRECTORS PRIOR TO FILING. THE BOARD OF DIRECTORS REVIEWS THE REVISED DRAFT AND SUBMITS COMMENTS TO THE SLHN CONTROLLER. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A FINAL DRAFT PREPARED FOR FILING. THE FINAL DRAFT IS THEN MADE AVAILABLE TO ALL BOARD MEMBERS PRIOR TO FILING.
FORM 990, PART VI, LINE 12C	EACH BOARD MEMBER, OFFICER OF THE CORPORATION AND BOARD COMMITTEE MEMBER COMPLETES A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. THE COMPLIANCE OFFICE, ALONG WITH SLHN GENERAL COUNSEL, EXAMINES EACH DISCLOSURE STATEMENT WHERE POTENTIAL CONFLICTS HAVE BEEN DISCLOSED. RECOMMENDATIONS ARE MADE TO THE CHAIR OF THE BOARD ON HOW TO APPROPRIATELY REMEDIATE, MONITOR, OR ELIMINATE ANY CONFLICTS. THE COMPLIANCE OFFICE/SLHN GENERAL COUNSEL THEN PROVIDES TO THE INTERESTED PERSON, WITH COPIES TO THE CHAIR OF THE BOARD, THE SLHN CEO, AND, IF NEEDED, THE APPROPRIATE COMMITTEE CHAIR, A CORRESPONDENCE THAT SPECIFIES WHAT ACTIONS, CONDITION, OR MONITORING OF THE CONFLICT ARE REQUIRED AND WHETHER THE INTERESTED PERSON IS PERMITTED TO GIVE A PRESENTATION TO THE BOARD OR APPROPRIATE COMMITTEE AFTER FULL DISCLOSURE OF THE CONFLICT. IN SUCH AN EVENT, THE INTERESTED PERSON LEAVES THE MEETING WHILE THE PROPOSED TRANSACTION IS DISCUSSED. THE INTERESTED PERSON IS REQUIRED TO CO-SIGN CORRESPONDENCE SENT BY THE SLHN GENERAL COUNSEL AND ADHERE TO IT THROUGHOUT THE YEAR. IF A CONFLICT OR FINANCIAL INTEREST ARISES AFTER THE ANNUAL DISCLOSURE PROCESS, THE INTERESTED PERSON WILL CONSULT WITH THE COMPLIANCE OFFICE OR SLHN GENERAL COUNSEL AND UPDATE THE DISCLOSURE STATEMENT CONSISTENT WITH THE ADVICE OF THE SLHN GENERAL COUNSEL. A RECORD OF THE BOARD OR COMMITTEE MEETING WHERE PROPOSED TRANSACTIONS OR ARRANGEMENTS THAT ARE AFFECTED BY CONFLICT OF INTEREST AND THE MANAGEMENT OF SUCH ARE CONTAINED IN THE BOARD/COMMITTEE MINUTES. IF VIOLATIONS OF THE CONFLICT OF INTEREST POLICY/MANAGEMENT ARE REPORTED, THE SLHN GENERAL COUNSEL WILL LOOK INTO THE MATTER. CONFIRMED VIOLATIONS MAY INCLUDE REMOVAL FROM THE BOARD OR COMMITTEE OR OFFICER POSITION PURSUANT TO THE REMOVAL PROCEDURES STATED IN THE BYLAWS. BYLAWS INCLUDE THE PROVISIONS THAT INTERESTED PERSONS WHO RECEIVE COMPENSATION DIRECTLY OR INDIRECTLY FROM THE SLHN NETWORK MAY NOT VOTE IN SUCH MATTERS. A VOTING MEMBER OF ANY COMMITTEE WHOSE JURISDICTION INCLUDES MAKING CHOICES ON GOODS OR SERVICES FOR THE SLHN NETWORK OR WHAT AMOUNTS SHOULD BE PAID FOR GOODS OR SERVICES SHALL BE PROHIBITED FROM VOTING ON ANY SUCH MATTER AND MAY BE PROHIBITED FROM DISCUSSING THE MATTER. PERIODIC REVIEWS OF THE PROCESS ARE CONDUCTED. OUTSIDE EXPERTS MAY, BUT NEED NOT, BE USED TO EVALUATE POLICIES AND PROCESSES.
FORM 990, PART VI, LINES 15A & 15B	THE CEO OF SHH IS COMPENSATED BY SCOTTSDALE LINCOLN HEALTH NETWORK (SLHN), A RELATED TAX-EXEMPT ORGANIZATION. CERTAIN KEY EMPLOYEES ARE COMPENSATED BY SHH. THE PROCESS DESCRIBED BELOW APPLIES TO BOTH SHH AND SLHN. AN EXECUTIVE COMPENSATION CONSULTANT CONDUCTS DETAILED MARKET ANALYSIS FOR EXECUTIVE CASH COMPENSATION. THEY UTILIZE AVAILABLE PUBLISHED HEALTHCARE SURVEY SOURCES. EXECUTIVE POSITIONS ARE MATCHED TO APPROPRIATE SURVEY POSITIONS BASED ON JOB CONTENT, DUTIES AND SCOPE OF RESPONSIBILITY. SURVEY DATA IS MATCHED FROM ORGANIZATIONS OF SIMILAR SIZE AND SCOPE. RESULTS OF THE STUDY ARE SHARED WITH THE BOARD FOR APPROVAL. THE STUDY WAS LAST COMPLETED IN 2014.
FORM 990, PART VI, LINE 19	DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE SLHN CORPORATE CONTROLLER AT: 8125 N. HAYDEN ROAD, SCOTTSDALE, AZ 85258
FORM 990, PART XI, LINE 9	TRANSFER OF NET ASSETS DUE TO MERGER $347,209,092 RECLASS INTEREST IN JOINT VENTURES FROM SUB 11,262,984 MINORITY INTEREST IN JOINT VENTURES (67,840) OTHER CHANGES IN NET ASSETS 1,549,806 -------------- TOTAL $359,954,042 ==============

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2014

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: Scottsdale Healthcare's mission is to improve the health and well-being of those we serve.
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	15
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	7,257
6	Total number of volunteers (estimate if necessary) .............	6	1,346
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	2,020,757	10,714,856
9	Program service revenue (Part VIII, line 2g) .........	219,251,859	888,542,146
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	193,809	150,240
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	262,301	649,330
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	221,728,726	900,056,572
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	0	0
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	100,324,447	348,468,288
16a	Professional fundraising fees (Part IX, column (A), line 11e).....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	120,451,588	525,705,604
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	220,776,035	874,173,892
19	Revenue less expenses. Subtract line 18 from line 12.......	952,691	25,882,680
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	552,257,666	1,482,002,989
21	Total liabilities (Part X, line 26).............	86,266,610	630,175,211
22	Net assets or fund balances. Subtract line 21 from line 20.....	465,991,056	851,827,778

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 721,218,298 including grants of $ 0 ) (Revenue $ 889,031,776 )
	SEE SCHEDULE O

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses721,218,298

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	4,638,762	8,594,056	597,278

(A) Name and business address	(B) Description of services	(C) Compensation





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 0

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512-514
1a	Federated campaigns..1a
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		10,714,856
e	Government grants (contributions)1e

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

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			10,714,856
			Business Code
2a	NET PATIENT REVENUE		622110	332,259,619	332,259,619
b	MEDICARE/MEDICAID PAYMENTS		900099	529,503,101	529,503,101
c	OTHER OPERATING & COMMUNITY SVC REVENUE		900099	26,412,604	26,412,604
d	FLOW THROUGH FROM JVS		900099	366,822	366,822
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			888,542,146
3	Investment income (including dividends, interest, and other similar amounts).......			0
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties...........			0
		(i) Real	(ii) Personal
6a	Gross rents	159,700
b	Less: rental expenses
c	Rental income or (loss)	159,700	0
d	Net rental income or (loss).......			159,700			159,700
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		150,240
b	Less: cost or other basis and sales expenses
c	Gain or (loss)		150,240
d	Net gain or (loss)..........			150,240			150,240
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a		1,183,985
b	Less: cost of goods sold ..b		694,355
c	Net income or (loss) from sales of inventory..			489,630	489,630
Miscellaneous Revenue			Business Code
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			0
12	Total revenue. See Instructions......			900,056,572	889,031,776		309,940


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			9,773	1	5,790,082
2	Savings and temporary cash investments .........			20,369,026	2	81,368,500
3	Pledges and grants receivable, net ...........			0	3	324,462
4	Accounts receivable, net .............			122,947,146	4	206,368,343
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
				0	5	0
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
				0	6	0
7	Notes and loans receivable, net .............			0	7	2,757,268
8	Inventories for sale or use ..............			33,975,554	8	44,184,793
9	Prepaid expenses and deferred charges ..........			6,520,856	9	14,038,736
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	1,457,604,802
b	Less: accumulated depreciation .....	10b	812,398,675	301,844,621	10c	645,206,127
11	Investments—publicly traded securities ..........			0	11	166,886,309
12	Investments—other securities. See Part IV, line 11 .....			3,250,000	12	14,685,627
13	Investments—program-related. See Part IV, line 11 .....			9,050,026	13	22,174,425
14	Intangible assets ...............			554,491	14	0
15	Other assets. See Part IV, line 11 ...........			53,736,173	15	278,218,317
16	Total assets. Add lines 1 through 15 (must equal line 34)......			552,257,666	16	1,482,002,989
17	Accounts payable and accrued expenses .........			55,983,505	17	156,313,381
18	Grants payable .................			0	18	0
19	Deferred revenue ................			5,019,226	19	4,681,017
20	Tax-exempt bond liabilities .............			0	20	423,332,758
21	Escrow or custodial account liability. Complete Part IV of Schedule D..			0	21	0
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..........			0	22	0
23	Secured mortgages and notes payable to unrelated third parties ..			0	23	608,922
24	Unsecured notes and loans payable to unrelated third parties ....			0	24	0
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D....................			25,263,879	25	45,239,133
26	Total liabilities. Add lines 17 through 25.........			86,266,610	26	630,175,211
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			465,991,056	27	844,757,272
28	Temporarily restricted net assets ...........			0	28	3,696,159
29	Permanently restricted net assets ...........			0	29	3,374,347
	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 ...........			465,991,056	33	851,827,778
34	Total liabilities and net assets/fund balances ........			552,257,666	34	1,482,002,989

(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) Scottsdale Lincoln Health Network 8125 N Hayden Road Scottsdale,AZ85258 46-3676831	Healthcare	AZ	501(c)(4)	N/A	NA		No
(2) SCOTTSDALE HEALTHCARE REALTY CORP 8125 N Hayden Road Scottsdale,AZ85258 94-2735851	Rental	AZ	501(c)(2)	N/A	SHH	Yes
(3) Scottsdale Healthcare Corp 8125 N Hayden Road Scottsdale,AZ85258 94-2735850	Healthcare	AZ	501(c)(3)	11, TYPE I	SHH	Yes
(4) Scottsdale Healthcare Foundation 8125 N Hayden Road Scottsdale,AZ85258 74-2355411	Foundation	AZ	501(c)(3)	7	SHH	Yes
(5) Scottsdale Memorial Health Services Co 8125 N Hayden Road Scottsdale,AZ85258 94-2735859	Healthcare	AZ	501(c)(3)	3	SHH	Yes
(6) SCOTTSDALE HEALTHCARE AUXILIARY 8125 N Hayden Road Scottsdale,AZ85258 23-7264497	FUNDRAISING	AZ	501(c)(3)	9	SHC	Yes
(7) JOHN C LINCOLN HEALTH NETWORK 2500 W UTOPIA ROAD SUITE 100 PHOENIX,AZ85027 86-0117301	HEALTHCARE	AZ	501(c)(3)	3	SLHN	Yes
(8) JOHN C LINCOLN HEALTH FOUNDATION 2500 W UTOPIA ROAD SUITE 100 PHOENIX,AZ85027 95-3320185	FUNDRAISING	AZ	501(c)(3)	7	JCLHN	Yes
(9) DESERT MISSION INC 2500 W UTOPIA ROAD SUITE 100 PHOENIX,AZ85027 86-0096941	COMMUNITY SVC	AZ	501(c)(3)	7	JCLHN	Yes
(10) DESERT MISSION NEIGHBORHOOD RENEWAL 2500 W UTOPIA ROAD SUITE 100 PHOENIX,AZ85027 86-0746598	HOUSING/REHAB	AZ	501(c)(3)	7	JCLHN	Yes

(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 V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) Scottsdale Healthcare ASC LLC 3621 N Wells Fargo Ave Scottsdale,AZ85251 27-1450828	Healthcare	DE	SHC	RELATED	0	0		No	0		No
(2) Globalrehab-Scottsdale LLC 1420 W Mockingbird Lane Ste 100 Dallas,TX75247 27-4160293	Healthcare	AZ	SHH	RELATED	1,304,106	3,093,779		No	0		No	51.000 %
(3) SCOTTSDALE SURG PARTNERS LLC 9522 E SAN SALVADOR SCOTTSDALE,AZ85258 20-1808351	HEALTHCARE	DE	SHC ASC LLC	related	0	0		No	0		No
(4) MESA SURGICAL CENTER LLC 27271 LAS RAMBLAS SUITE 350 MISSION VIEJO,CA92691 20-5322697	HEALTHCARE	DE	SHC ASC LLC	RELATED	0	0		No	0		No
(5) BILTMORE SURGICAL PARTNERS LLC 27271 LAS RAMBLAS SUITE 350 MISSION VIEJO,CA92691 26-4509307	HEALTHCARE	DE	SHC ASC LLC	RELATED	0	0		No	0		No

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Scottsdale Healthcare Foundation	c	10,741,856	Cost
(2) Scottsdale Healthcare Realty Corp	C	7,945,725	BOOK BALANCE
(3) Scottsdale Healthcare Realty Corp	k	1,947,110	Cost
(4) Scottsdale Healthcare Realty Corp	q	1,270,855	Cost
(5) Scottsdale Healthcare Corp	o	348,170,889	cost
(6) Scottsdale Healthcare Corp	p	1,000,014	cost
(7) JOHN C LINCOLN HEALTH NETWORK	C	348,357,367	BOOK BALANCE
(8) SCOTTSDALE CAPTIVE INSURANCE COMPANY	R	11,725,808	COST

(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 V-UBI 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 V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No