TY 2013 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) NORMAN F MITRY........................................................................ President & CEO	40.00 .......................	X	X	575,931	0	50,450
(2) RICHARD C HOGAN MD........................................................................ Director	2.00 .......................	X		0	375,092	37,823
(3) Richard Kim MD Director	2.00 .......................	X		0	0	0
(4) JAMES SCIBILIA MD........................................................................ Director	2.00 .......................	X		0	346,375	39,751
(5) LYNN GEORGE PHD........................................................................ Director	2.00 .......................	X		0	0	0
(6) ELISA DITOMMASO CPA........................................................................ Director	2.00 .......................	X		0	0	0
(7) A GARY CHACE........................................................................ Secretary	2.00 .......................	X	X	0	0	0
(8) GR ORR III........................................................................ Chair	2.00 .......................	X	X	0	0	0
(9) THOMAS R JOHNSON ESQ........................................................................ Director	2.00 .......................	X		0	0	0
(10) REBECCA POUNDS DDS........................................................................ Director	2.00 .......................	X		0	0	0
(11) DAVID MOTLEY........................................................................ Director	2.00 .......................	X		0	0	0
(12) ALEXANDER VASILAKIS MD........................................................................ Director	2.00 .......................	X		0	544,596	44,442
(13) TOM LEYDIG........................................................................ Director	2.00 .......................	X		0	0	0
(14) DENNIS PEGDEN PHD........................................................................ Vice Chair	2.00 .......................	X	X	0	0	0
(15) JOHANNAH M ROBB CPA........................................................................ Treasurer	2 .......................	X	X
(16) SCOTT M ELSTE........................................................................ Director	2 .......................	X
(17) GARRY HOGAN........................................................................ Director	2 .......................	X

(A) Name and business address	(B) Description of services	(C) Compensation
ALLSCRIPTS24630 NETWORK PLACECHICAGOIL60673	Computer Professional Services	6,816,552
WESTERN PENNSYLVANIA ANESTHESIA ASSOCPO BOX 643483PITTSBURGHPA15264	Professional Services	2,319,643
OHIO VALLEY PERFUSION ASSOCIATES INC628 SCOTT RIDGE RDHARMONYPA16037	Professional Services	784,148
NORTHSTAR ANESTHESIA ASSOCIATES2000 E LAMAR BLVD SUITE 400ARLINGTONTX76006	Professional Services	734,104
EDGEWORTH DEVELOPMENT ASSOCIATES INCPO BOX 520JOHNSTOWNPA15907	Rent	576,060
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 39

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to governments and organizations in the United States. See Part IV, line 21
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	288,773	288,773
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	4,263,976	0	4,263,976	0
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	157,334,920	155,843,657	1,491,263	0
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	8,289,121	8,289,121	0	0
9	Other employee benefits .......	22,202,095	22,202,095	0	0
10	Payroll taxes ...........	10,249,514	10,127,696	121,818	0
11	Fees for services (non-employees):
a	Management ......
b	Legal .........	436,041	102,613	333,428	0
c	Accounting ...........	318,335	318,335	0	0
d	Lobbying ...........	19,220	0	19,220	0
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ........
12	Advertising and promotion ....	190,619	186,024	4,595	0
13	Office expenses .......	1,168,390	1,168,390	0	0
14	Information technology ......	4,084,363	4,083,769	594	0
15	Royalties ..
16	Occupancy ...........	4,627,171	4,557,307	69,864	0
17	Travel ............	453,419	436,130	17,289	0
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......
19	Conferences, conventions, and meetings ....	128,633	128,633	0	0
20	Interest ...........	3,094,987	3,094,987	0	0
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization .....	29,625,620	29,535,582	90,038	0
23	Insurance ..............
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 and other Supplies	51,817,816	51,751,219	66,597	0
b	other outside services	31,947,042	31,492,045	454,997	0
c	drugs	13,925,465	13,925,465	0	0
d
e	All other expenses	17,765,063	17,647,036	118,027	0
25	Total functional expenses. Add lines 1 through 24e	362,230,583	355,178,877	7,051,706	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 .............	2,265,908	1	4,947,152
2	Savings and temporary cash investments .........	4,737,144	2	4,891,075
3	Pledges and grants receivable, net ...........	266,608	3	293,509
4	Accounts receivable, net .............	52,384,850	4	47,302,194
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
			5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6
7	Notes and loans receivable, net .............		7
8	Inventories for sale or use ..............	6,390,283	8	6,409,184
9	Prepaid expenses and deferred charges ..........	13,220,558	9	11,465,303
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	469,078,098
b	Less: accumulated depreciation .....	10b	297,625,798	170,642,910	10c	171,452,300
11	Investments—publicly traded securities ..........	122,434,793	11	134,417,700
12	Investments—other securities. See Part IV, line 11 .....	38,945,683	12	31,676,750
13	Investments—program-related. See Part IV, line 11 .....		13
14	Intangible assets ...............		14
15	Other assets. See Part IV, line 11 ...........	548,894	15	567,690
16	Total assets. Add lines 1 through 15 (must equal line 34)......	411,837,631	16	413,422,857
	17	Accounts payable and accrued expenses .........	56,472,218	17	49,170,597
18	Grants payable .................		18
19	Deferred revenue ................		19
20	Tax-exempt bond liabilities .............	64,646,069	20	61,493,817
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..		23
24	Unsecured notes and loans payable to unrelated third parties ....	10,290,553	24	10,928,226
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....................	65,470,943	25	52,952,446
26	Total liabilities. Add lines 17 through 25.........	196,879,783	26	174,545,086
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	199,734,928	27	222,406,131
28	Temporarily restricted net assets ...........	9,012,161	28	9,867,469
29	Permanently restricted net assets ...........	6,210,759	29	6,604,171
	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 ...........	214,957,848	33	238,877,771
34	Total liabilities and net assets/fund balances ........	411,837,631	34	413,422,857

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.

Attach to Form 990 or Form 990-EZ. right arrow

See separate instructions.
right arrow

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

OMB No. 1545-0047

2013

Open to Public
Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I

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

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

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

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

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

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

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

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

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

An organization that normally receives a substantial part of its support from a governmental unit or from the general public described in section 170(b)(1)(A)(vi). (Complete Part II.)

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

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

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

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

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

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

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

Type I

Type II

Type III - Functionally integrated

Type III - Non-functionally integrated

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

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

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

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

Yes

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

11g(i)

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

11g(ii)

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

11g(iii)

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2013

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)		(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.	0

Section B. Total Support

Calendar year (or fiscal year beginning in)		(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...	0
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)..
11	Total support (Add lines 7 through 10).

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

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

Section C. Computation of Public Support Percentage

Public support percentage for 2013 (line 6, column (f) divided by line 11, column (f)) .........

0 %

Public support percentage for 2012 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2013. 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—2012. 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—2013. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2012. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

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

Schedule A (Form 990 or 990-EZ) 2013

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)		(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public support (Subtract line 7c from line 6.)	0

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2009	(b) 2010	(c) 2011	(d) 2012	(e) 2013	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

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

Section C. Computation of Public Support Percentage

Public support percentage for 2013 (line 8, column (f) divided by line 13, column (f)) .........

0 %

Public support percentage from 2012 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2013 (line 10c, column (f) divided by line 13, column (f)) ......

0 %

Investment income percentage from 2012 Schedule A, Part III, line 17 .............

19a

33 1/3% support tests—2013. 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—2012. 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) 2013

Page 4

Part IV

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

Facts And Circumstances Test

Explanation

Schedule A (Form 990 or 990-EZ) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

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

Complete if the organization is described below. SchCMd Bullet

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

See separate instructions. SchCMd Bullet

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

OMB No. 1545-0047

2013

Open to Public
Inspection

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

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

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

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

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

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

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

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I-A

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

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

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

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

Part I-B

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

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

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

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

Yes No

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

Yes No

If "Yes," describe in Part IV.

Part I-C

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

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

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

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

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

Yes No

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

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

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2013

Page 2

Part II-A

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

A Check SchCMd Bullet

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

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

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

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

4-Year Averaging Period Under Section 501(h) (Some organizations that made a section 501(h) election do not have to complete all of the five columns below. See the instructions for lines 2a through 2f on page 4.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) Total

2a	Lobbying nontaxable amount

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

c	Total lobbying expenditures

d	Grassroots nontaxable amount

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

f	Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2013

Page 3

Part II-B

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

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

(a)

Yes

(b)

Amount

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

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

Yes

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

Yes

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

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

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

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

Yes

19,220

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

Yes

55,000

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

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

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

74,220

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

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

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

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

Part III-A

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

Yes

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

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

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

Part III-B

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

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

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

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

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

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

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

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

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

Part IV

Supplemental Information

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

Return Reference	Explanation
Pt II-B Line 1	Other lobbying Activities: A portion of Hospital and Health System Association of PA (HAP) dues are lobbying expenses. Additionally, the organization retains the law firm of Buchanan Ingersoll & Rooney to lobby on their behalf.

Schedule C (Form 990 or 990EZ) 2013

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b
SchDMd Bullet

Attach to Form 990. SchDMd Bullet

See separate instructions. SchDMd Bullet

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I

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

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

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

Yes No

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

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


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

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

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

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

Yes No

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

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

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

Yes No

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

Part III

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

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

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

(i)

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

(ii)

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

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

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

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

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

Cat. No. 52283D

Schedule D (Form 990) 2013

Page 2

Part III

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

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

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No

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


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

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

Yes No

If "Yes," explain the arrangement in Part XIII. Check here if the explanation has been provided in Part XIII ........

Part V

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

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....	243,417,000	252,962,000	284,583,000	259,195,000	240,777,000
b	Contributions ........	1,207,000	2,107,000	4,416,000	4,906,000	4,160,000
c	Net investment earnings, gains, and losses	22,032,000	6,856,000	-26,958,000	27,943,000	28,999,000
d	Grants or scholarships .....	1,000	39,000	1,087,000	21,000	21,000
e	Other expenditures for facilities and programs ........	7,395,000	16,594,000	6,712,000	5,978,000	13,230,000
f	Administrative expenses ....	1,781,000	1,875,000	1,280,000	1,462,000	1,490,000
g	End of year balance ......	257,479,000	243,417,000	252,962,000	284,583,000	259,195,000

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

Board designated or quasi-endowment SchDMd Bullet

93.600 %

Permanent endowment SchDMd Bullet

3.800 %

Temporarily restricted endowment SchDMd Bullet

2.600 %

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

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

Yes

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

3a(i)

Yes

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

3a(ii)

Yes

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

Yes

Describe in Part 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 .................	2,285,807		2,285,807
b	Buildings ................	153,988,290	87,099,186	66,889,104
c	Leasehold improvements ............	3,083,759	947,448	2,136,311
d	Equipment ................	294,996,011	205,442,220	89,553,791
e	Other .................	14,724,231	4,136,944	10,587,287
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				171,452,300

Schedule D (Form 990) 2013

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
(3)Other (A) Interest in Assets Held by Foundations	11,078,423	F
(B) Other Investments	281,389	F
(C) Common Trust	12,981,682	C
(D) Alternative Investments	7,335,256	C





Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)	31,676,750

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









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

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
Accrued pensions and other long term liabilities		50,475,902
Workers Comp Reserve Long Term		2,476,544







Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		52,952,446
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) 2013

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	369,333,416
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains on investments ..........	2a
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d .....................			2e
3	Subtract line 2e from line 1.....................			3	369,333,416
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	351,355
c	Add lines 4a and 4b.......................			4c	351,355
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	369,684,771

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	362,230,580
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	362,230,580
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	3
c	Add lines 4a and 4b.......................			4c	3
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	362,230,583

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
Pt X Line 2	VMF qualifies as a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code (the "Code") and, therfore, is exempt from income tax on related income pursuant to Section 501(a) of the Code. VMF does not have any material uncertain tax positions as of June 30, 2014 and 2013.
Pt XII Line 4b	Other Adjustments: Restricted Fund Expenses
Pt XI Line 4b	Other Adjustments: Restricted Fund Income
Pt V Line 4	BOARD DESIGNATED ASSETS ARE UNRESTRICTED FUNDS UNDER THE CONTROL OF THE BOARD OF DIRECTORS. THE MAJORITY OF THESE FUNDS ARE HELD IN THE MASTER TRUST. THE REMAINING FUNDS ARE IN THE CHECKING AND MONEY MARKET ACCOUNTS. ALL INTEREST, REALIZED GAINS/LOSSES, AND UNREALIZED GAINS/LOSSES ASSOCIATED WITH THESE FUNDS REMAIN AS BOARD DESIGNATED FUNDS. DONOR RESTRICTED SPECIFIC PURPOSE FUNDS ARE COMPOSED OF BOTH TEMPORARY AND PERMANENTLY RESTRICTED FUNDS. ALL FUNDS EARN INTEREST, REALIZED GAINS/LOSSES, AND

Schedule D (Form 990) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

SCHEDULE F(Form 990)

Department of the Treasury
Internal Revenue Service

Statement of Activities Outside the United States

Complete if the organization answered "Yes" to Form 990,Part IV, line 14b, 15, or 16. Right pointing arrow large image

Attach to Form 990. Right pointing arrow large image

See separate instructions. Right pointing arrow large image

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization
Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I

General Information on Activities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 14b.

For grantmakers.Does the organization maintain records to substantiate the amount of its grants and

other assistance, the grantees’ eligibility for the grants or assistance, and the selection criteria used

to award the grants or assistance? ...............................

Yes

For grantmakers. Describe in Part V the organization’s procedures for monitoring the use of its grants and other assistance outside the United States.

Activites per Region. (The following Part I, line 3 table can be duplicated if additional space is needed.)

(a) Region		(d) Activities conducted in region (by type) (e.g., fundraising, program services, investments, grants to recipients located in the region)	(f) Total expenditures for and investments in region
	Central America	Investments	7,335,000
















3a	Sub-total .....		7,335,000
b	Total from continuation sheets to Part I ...
c	Totals (add lines 3a and 3b)		7,335,000

For Paperwork Reduction Act Notice, see the Instructions for Form 990.Cat. No. 50082W Schedule F (Form 990) 2013

Schedule F (Form 990) 2013

Page 2

Part II

Grants and Other Assistance to Organizations or Entities Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 15, for any recipient who received more than $5,000. Part II can be duplicated if additional space is needed.

1 (a) Name of organization		(b) IRS code section and EIN (if applicable)	(c) Region	(d) Purpose of grant	(e) Amount of cash grant	(f) Manner of cash disbursement	(g) Amount of non-cash assistance	(h) Description of non-cash assistance	(i) Method of valuation (book, FMV, appraisal, other)

Enter total number of recipient organizations listed above that are recognized as charities by the foreign country, recognized as tax-exempt by the IRS, or for which the grantee or counsel has provided a section 501(c)(3) equivalency letter .... MediumBullet

Enter total number of other organizations or entities ....................... MediumBullet

Schedule F (Form 990) 2013

Schedule F (Form 990) 2013Page 3

Part III

Grants and Other Assistance to Individuals Outside the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 16.

Part III can be duplicated if additional space is needed.

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

Schedule F (Form 990) 2013

Page 4

Part IV

Foreign Forms

Schedule F (Form 990) 2013

Page 5

Part V

Supplemental Information
Provide the information required by Part I, line 2 (monitoring of funds); Part I, line 3, column (f) (accounting method; amounts of investments vs. expenditures per region); Part II, line 1 (accounting method); Part III (accounting method); and Part III, column (c) (estimated number of recipients), as applicable. Also complete this part to provide any additional information (see instructions).

ReturnReference	Explanation
Pt I Line 2	Valley Medical Facilities Inc. does not make grants outside the United States.

Schedule F (Form 990) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

SCHEDULE H (Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990. MediumBullet

See separate instructions.
MediumBullet

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

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 30000.000 %

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 45000.000 %

If the organization used factors other than FPG in determining eligibility, describe in Part VI the income based criteria for determining eligibility for free or discounted care. Include in the description whether the organization used an asset test or other threshold, regardless of income, as a factor in determining eligibility for free or discounted care.

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

Yes

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

Yes

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

Yes

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

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

Yes

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

Yes

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

Financial Assistance and Certain Other Community Benefits at Cost

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) ..	6,921,154		6,921,154	1.910 %
b	Medicaid (from Worksheet 3, column a) ....	34,386,521	22,353,259	12,033,262	3.320 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .
d	Total Financial Assistance and Means-Tested Government Programs .	41,307,675	22,353,259	18,954,416	5.230 %
Other Benefits		204,219	109,888	94,331	0.030 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	204,219	109,888	94,331	0.030 %
f	Health professions education (from Worksheet 5) ..	451,244	211,513	239,731	0.070 %
g	Subsidized health services (from Worksheet 6) ..	450,257	270,142	180,115	0.050 %
h	Research (from Worksheet 7)
i	Cash and in-kind contributions for community benefit (from Worksheet 8)
j	Total. Other Benefits ..	1,105,720	591,543	514,177	0.150 %
k	Total. Add lines 7d and 7j .	42,413,395	22,944,802	19,468,593	5.380 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2013

Schedule H (Form 990) 2013

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	4,575	4,575	0 %
2	Economic development	73,714	73,714	0.020 %
3	Community support	89,045	89,045	0.020 %
4	Environmental improvements
5	Leadership development and training for community members
6	Coalition building
7	Community health improvement advocacy
8	Workforce development
9	Other	10,799	10,799	0 %
10	Total	178,133	178,133	0.040 %

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. ......

7,169,540

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. ......

3,584,770

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).....

153,781,772

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

159,851,801

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

-6,070,029

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) 2013

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?2 Name, address, primary website address, and state license number						Facility reporting group
1	Heritage Valley Beaver 1000 Dutch Ridge Road Beaver,PA15009	X	X	X	X	A
2	Heritage Valley Sewickley 720 Blackburn Road Sewickley,PA15143	X	X		X	A

Schedule H (Form 990) 2013

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)

	Heritage Valley Beaver
Name of hospital facility or facility reporting group

If reporting on Part V, Section B for a single hospital facility only: line number of
hospital facility (from Schedule H, Part V, Section A)

Yes

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

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

Yes

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

A definition of the community served by the hospital facility

Demographics of the community

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

How data was obtained

The health needs of the community

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

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

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

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

Other (describe in Part VI)

Indicate the tax year the hospital facility last conducted a CHNA: 20 13

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 Part VI how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted ....................

Yes

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

Yes

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

Yes

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

Hospital facility’s website (list url): www.heritagevalley.org/pages/community-health-needs-assessment

Other website (list url):

Available upon request from the hospital facility

Other (describe in Part VI)

If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that apply as of the end of the tax year):

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

Execution of the implementation strategy

Participation in the development of a community-wide plan

Participation in the execution of a community-wide plan

Inclusion of a community benefit section in operational plans

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

Prioritization of health needs in its community

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

Other (describe in Part VI)

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

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

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

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

Schedule H (Form 990) 2013

Page

Part VFacility Information (continued)

Financial Assistance Policy			Yes	No
9	Did the hospital facility have in place during the tax year a written financial assistance policy that:
	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?	9	Yes
10	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........	10	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 300% If "No," explain in Part VI the criteria the hospital facility used.
11	Used FPG to determine eligibility for providing discounted care?.................	11	Yes
	If "Yes," indicate the FPG family income limit for eligibility for discounted care: 450% If "No," explain in Part VI the criteria the hospital facility used.
12	Explained the basis for calculating amounts charged to patients?.................	12	Yes
	If "Yes," indicate the factors used in determining such amounts (check all that apply):
a	Income level
b	Asset level
c	Medical indigency
d	Insurance status
e	Uninsured discount
f	Medicaid/Medicare
g	State regulation
h	Residency
i	Other (describe in Part VI)
13	Explained the method for applying for financial assistance?...................	13	Yes
14	Included measures to publicize the policy within the community served by the hospital facility?.......	14	Yes
	If "Yes," indicate how the hospital facility publicized the policy (check all that apply):
a	The policy was posted on the hospital facility’s website
b	The policy was attached to billing invoices
c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
d	The policy was posted in the hospital facility’s admissions offices
e	The policy was provided, in writing, to patients on admission to the hospital facility
f	The policy was available upon request
g	Other (describe in Part VI)
Billing and Collections
15	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......	15	Yes
16	Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP:
a	Reporting to credit agency
b	Lawsuits
c	Liens on residences
d	Body attachments
e	Other similar actions (describe in Section C)
17	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?..........	17		No
	If "Yes," check all actions in which the hospital facility or a third party engaged:
a	Reporting to credit agency
b	Lawsuits
c	Liens on residences
d	Body attachments
e	Other similar actions (describe in Section C)

Schedule H (Form 990) 2013

Page

Part VFacility Information (continued)

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

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the 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)

Policy Relating to Emergency Medical Care

Yes

Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requires the hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless of their eligibility under the hospital facility’s financial assistance policy?..........

Yes

If "No," indicate why:

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

The hospital facility’s policy was not in writing

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

Other (describe in Part VI)

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

Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.

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

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

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

Other (describe in Part VI)

During the tax year, did the hospital facility charge any FAP-eligible 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 Part VI.

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 Part VI.

Schedule H (Form 990) 2013

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)

	Heritage Valley Sewickley
Name of hospital facility or facility reporting group

If reporting on Part V, Section B for a single hospital facility only: line number of
hospital facility (from Schedule H, Part V, Section A)

Yes

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

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

Yes

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

A definition of the community served by the hospital facility

Demographics of the community

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

How data was obtained

The health needs of the community

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

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

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

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

Other (describe in Part VI)

Indicate the tax year the hospital facility last conducted a CHNA: 20 13

Yes

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

Yes

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

Yes

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

Hospital facility’s website (list url): www.heritagevalley.org/pages/community-health-needs-assessment

Other website (list url):

Available upon request from the hospital facility

Other (describe in Part VI)

If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that apply as of the end of the tax year):

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

Execution of the implementation strategy

Participation in the development of a community-wide plan

Participation in the execution of a community-wide plan

Inclusion of a community benefit section in operational plans

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

Prioritization of health needs in its community

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

Other (describe in Part VI)

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

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

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

Schedule H (Form 990) 2013

Page

Part VFacility Information (continued)

Financial Assistance Policy			Yes	No
9	Did the hospital facility have in place during the tax year a written financial assistance policy that:
	Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care?	9	Yes
10	Used federal poverty guidelines (FPG) to determine eligibility for providing free care?...........	10	Yes
	If "Yes," indicate the FPG family income limit for eligibility for free care: 300% If "No," explain in Part VI the criteria the hospital facility used.
11	Used FPG to determine eligibility for providing discounted care?.................	11	Yes
	If "Yes," indicate the FPG family income limit for eligibility for discounted care: 450% If "No," explain in Part VI the criteria the hospital facility used.
12	Explained the basis for calculating amounts charged to patients?.................	12	Yes
	If "Yes," indicate the factors used in determining such amounts (check all that apply):
a	Income level
b	Asset level
c	Medical indigency
d	Insurance status
e	Uninsured discount
f	Medicaid/Medicare
g	State regulation
h	Residency
i	Other (describe in Part VI)
13	Explained the method for applying for financial assistance?...................	13	Yes
14	Included measures to publicize the policy within the community served by the hospital facility?.......	14	Yes
	If "Yes," indicate how the hospital facility publicized the policy (check all that apply):
a	The policy was posted on the hospital facility’s website
b	The policy was attached to billing invoices
c	The policy was posted in the hospital facility’s emergency rooms or waiting rooms
d	The policy was posted in the hospital facility’s admissions offices
e	The policy was provided, in writing, to patients on admission to the hospital facility
f	The policy was available upon request
g	Other (describe in Part VI)
Billing and Collections
15	Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained actions the hospital facility may take upon non-payment?.......	15	Yes
16	Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP:
a	Reporting to credit agency
b	Lawsuits
c	Liens on residences
d	Body attachments
e	Other similar actions (describe in Section C)
17	Did the hospital facility or an authorized third party perform any of the following actions during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP?..........	17		No
	If "Yes," check all actions in which the hospital facility or a third party engaged:
a	Reporting to credit agency
b	Lawsuits
c	Liens on residences
d	Body attachments
e	Other similar actions (describe in Section C)

Schedule H (Form 990) 2013

Page

Part VFacility Information (continued)

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

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

Notified individuals of the financial assistance policy in communications with the 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)

Policy Relating to Emergency Medical Care

Yes

If "No," indicate why:

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

The hospital facility’s policy was not in writing

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

Other (describe in Part VI)

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

Indicate how the hospital facility determined, during the tax year, the maximum amounts that can be charged to FAP-eligible individuals for emergency or other medically necessary care.

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

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

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

Other (describe in Part VI)

If "Yes," explain in Part VI.

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 Part VI.

Schedule H (Form 990) 2013

Page

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B.Provide descriptions required for Part V, Section B, lines 1j, 3, 4, 5d, 6i, 7, 10, 11, 12i, 14g, 16e, 17e, 18e, 19c, 19d, 20d, 21, and 22. If applicable, provide separate descriptions for each facility in a facility reporting group, designated by "Facility A," "Facility B," etc.
Form and Line Reference	Explanation
Heritage Valley, Beaver Pt V Line 3	THE ORGANIZATION LED A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) TO EVALUATE THE HEALTH NEEDS OF INDIVIDUALS LIVING IN THE HOSPITAL SERVICE AREA INCLUDING BEAVER COUNTY AND THE SELECTED MUNICIPALITIES LOCATED WITHIN ALLEGHENY COUNTY BEGINNING IN 2012. THE ORGANIZATION CONTRACTED WITH REPUTABLE CONSULTING FIRMS TO ASSIST IN COMPLETING THE ASSESSMENT. THE PURPOSE OF THE ASSESSMENT WAS TO GATHER INFORMATION ABOUT LOCAL HEALTH NEEDS AND HEALTH BEHAVIORS. THE ASSESSMENT EXAMINED A VARIETY OF INDICATORS INCLUDING RISKY HEALTH BEHAVIORS (PHYSICAL INACTIVITY, TOBACCO USE) AND CHRONIC HEALTH CONDITIONS (DIABETES, HEART DISEASE). THE COMPLETION OF THE CHNA ENABLED THE ORGANIZATION TO TAKE AN IN-DEPTH LOOK AT ITS GREATER COMMUNITY. THE FINDINGS FROM THE ASSESSMENT WERE UTILIZED BY THE ORGANIZATION TO PRIORITIZE PUBLIC HEALTH ISSUES AND DEVELOP A COMMUNITY HEALTH IMPLEMENTATION PLAN FOCUSED ON MEETING COMMUNITY NEEDS.
Heritage Valley, Beaver Pt V Line 6i	THE CHNA IMPLEMENTATION PLAN IN AVAILABLE AT THE ORGANIZATION WEBSITE. WWW.HERITAGEVALLEY.ORG
Heritage Valley, Beaver Pt V Line 19d	UNINSURED INDIVIDUALS ARE EXPECTED TO PAY THE EQUIVALENT OF THE MEDICAID DRG CASE RATE PAYMENT FOR INPATIENT ACCOUNTS AND 45% OF CHARGES FOR OUTPATIENT ACCOUNTS.
Heritage Valley, Beaver Pt V Line 4	HERITAGE VALLEY SEWICKLEY HERITAGE VALLEY BEAVER
Heritage Valley, Beaver Pt V Line 20d	MAXIMUM AMOUNT CHARGED TO INPATIENTS IS MEDICAL ASSISTANCE RATES. MAXIMUM AMOUNT CHARGED TO OUTPATIENTS IS 45% OF TOTAL CHARGES.
Heritage Valley, Beaver Pt V Line 7	RATIONALE FOR COMMUNITY HEALTH NEEDS NOT ADDRESSED It is understood that in order to be the most effective and make the greatest impact, that not all community needs can be addressed at once. The Organization will continue to provide excellent quality of care and health literacy education to meet the wide array of health needs present among county residents. To allocate resources in an effort to impact the most pressing needs, the five key priority areas were identified. It is important to emphasize the criteria-driven approach that went into the selection of the priority issues. While the seriousness of the issue and ability to impact were the primary criteria for the quantitative ratings, additional criteria were included in the group discussion. These included the availability of proven best practices and prevention strategies, existing expertise and resources around any particular issue, and the opportunity for collective community buy-in or support to rally around a health priority. As a result, the Organization and its partners are confident that the prioritization process was a systematic, democratic, and thorough course of action. In total, nine key needs/themes were identified following the interpretation of the CHNA findings. A rationale for exclusion of the four issues not included in the final prioritized list of community needs is detailed below. Behavioral Health: The Organization currently provides both inpatient and outpatient behavioral health services to the community in collaboration with the County and other local providers that specialize in specific community-based supports, such as housing, case management, family support, respite care ,etc. Resource constraints do not permit expansion of these efforts. Drug and Alcohol Abuse: While the Organization will continue to provide supportive services to the community, as appropriate, however other providers specialize in this care and are better suited to address the initiatives related to drug and alcohol abuse in the community. Maternal Health: The Organization has many successful programs related to prenatal and maternal health which will continue to be offered to the community. Community Sustainability: The Organization will continue to support environmental responsibility and will encourage safe neighborhoods. The Organization does not have the resources or expertise needed to influence this need.
Heritage Valley, Sewickley Pt V Line 3	THE ORGANIZATION LED A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) TO EVALUATE THE HEALTH NEEDS OF INDIVIDUALS LIVING IN THE HOSPITAL SERVICE AREA INCLUDING BEAVER COUNTY AND THE SELECTED MUNICIPALITIES LOCATED WITHIN ALLEGHENY COUNTY BEGINNING IN 2012. THE ORGANIZATION CONTRACTED WITH REPUTABLE CONSULTING FIRMS TO ASSIST IN COMPLETING THE ASSESSMENT. THE CHNA WAS COMPLETED IN MAY OF 2013 AND APPROVED BY THE BOARD OF DIRECTORS JUNE 27, 2013. THE PURPOSE OF THE ASSESSMENT WAS TO GATHER INFORMATION ABOUT LOCAL HEALTH NEEDS AND HEALTH BEHAVIORS. THE ASSESSMENT EXAMINED A VARIETY OF INDICATORS INCLUDING RISKY HEALTH BEHAVIORS (PHYSICAL INACTIVITY, TOBACCO USE) AND CHRONIC HEALTH CONDITIONS (DIABETES, HEART DISEASE). THE COMPLETION OF THE CHNA ENABLED THE ORGANIZATION TO TAKE AN IN-DEPTH LOOK AT ITS GREATER COMMUNITY. THE FINDINGS FROM THE ASSESSMENT WERE UTILIZED BY THE ORGANIZATION TO PRIORITIZE PUBLIC HEALTH ISSUES AND DEVELOP A COMMUNITY HEALTH IMPLEMENTATION PLAN FOCUSED ON MEETING COMMUNITY NEEDS.
Heritage Valley, Sewickley Pt V Line 6i	THE CHNA IMPLEMENTATION PLAN IN AVAILABLE AT THE ORGANIZATION WEBSITE. WWW.HERITAGEVALLEY.ORG
Heritage Valley, Sewickley Pt V Line 19d	OF THE MEDICAID DRG CASE RATE PAYMENT FOR INPATIENT ACCOUNTS AND 45% OF CHARGES FOR OUTPATIENT ACCOUNTS.
Heritage Valley, Sewickley Pt V Line 4	HERITAGE VALLEY SEWICKLEY HERITAGE VALLEY BEAVER
Heritage Valley, Sewickley Pt V Line 20d	MAXIMUM AMOUNT CHARGED TO INPATIENTS IS MEDICAL ASSISTANCE RATES. MAXIMUM AMOUNT CHARGED TO OUTPATIENTS IS 45% OF TOTAL CHARGES.
Heritage Valley, Sewickley Pt V Line 7	RATIONALE FOR COMMUNITY HEALTH NEEDS NOT ADDRESSED It is understood that in order to be the most effective and make the greatest impact, that not all community needs can be addressed at once. The Organization will continue to provide excellent quality of care and health literacy education to meet the wide array of health needs present among county residents. To allocate resources in an effort to impact the most pressing needs, the five key priority areas were identified. It is important to emphasize the criteria-driven approach that went into the selection of the priority issues. While the seriousness of the issue and ability to impact were the primary criteria for the quantitative ratings, additional criteria were included in the group discussion. These included the availability of proven best practices and prevention strategies, existing expertise and resources around any particular issue, and the opportunity for collective community buy-in or support to rally around a health priority. As a result, the Organization and its partners are confident that the prioritization process was a systematic, democratic, and thorough course of action. In total, nine key needs/themes were identified following the interpretation of the CHNA findings. A rationale for exclusion of the four issues not included in the final prioritized list of community needs is detailed below. Behavioral Health: The Organization currently provides both inpatient and outpatient behavioral health services to the community in collaboration with the County and other local providers that specialize in specific community-based supports, such as housing, case management, family support, respite care ,etc. Resource constraints do not permit expansion of these efforts. Drug and Alcohol Abuse: While the Organization will continue to provide supportive services to the community, as appropriate, however other providers specialize in this care and are better suited to address the initiatives related to drug and alcohol abuse in the community. Maternal Health: The Organization has many successful programs related to prenatal and maternal health which will continue to be offered to the community. Community Sustainability: The Organization will continue to support environmental responsibility and will encourage safe neighborhoods. The Organization does not have the resources or expertise needed to influence this need.

Schedule H (Form 990) 2013

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?24
Name and address		Type of Facility (describe)
1	BEAVER -Calcutta Imaging & Lab Services 48462 Bell School Road Suite B East Liverpool,OH43920	Heart & Vascular, Laboratory and Imaging
2	BEAVER - Heritage Valley Diagnostic Center - Ellwood City 1677 State Route 65 Ellwood City,PA16117	Heart & Vascular, Laboratory, Diagnostic Center, Convenient Care
3	BEAVER - Heritage Valley Diagnostic Center - Hopewell 5000 Industrial Boulevard Aliquippa,PA15001	Diagnostic Center, Laboratory
4	BEAVER - Women's Health Center 200 Pleasant Drive Aliquippa,PA15001	Imaging Services
5	BEAVER - Family Practice Center 1125 7th Avenue Beaver Falls,PA15010	Residency Program, Laboratory
6	BEAVER - Heritage Valley Signature Rehab 1030 Beaner Hollow Road Beaver,PA15009	Rehabilitation Services
7	BEAVER - Signature Rehab - Hopewell 3000 Industrial Blvd Aliquippa,PA15001	Rehabilitation Services
8	BEAVER - Heritage Valley Baden - Lab (Phlebotomy) 220 Ohio River Blvd Baden,PA15005	Laboratory Services
9	SEWICKLEY - Heritage Valley Health Center 935 Thorn Run Road Moon Twp,PA15108	Heart & Vascular, Laboratory and Imaging, and Rehab
10	Heritage Valley Robinson Township 6521 Steubenville Pike Pittsburgh,PA15205	Laboratory and Imaging
11	SEWICKLEY- Heritage Valley Rehabilitation Services - West Allegheny Signatu 400 Penn Lincoln Drive Imperial,PA15126	Rehabilitation Services, Behavioral Health Services
12	SEWICKLEY - Heritage Valley Health System Edgeworth Square 111 Hazel Lane Sewickley,PA15143	Behavioral Health Services
13	Heritage Valley Surgery Center 1600 Coraopolis Heights Road Suite Moon Township,PA15108	Diagnostic Imaging, Surgery Center, Cancer Center
14	Heritage Valley Chippewa 2580 Constitution Blvd Chippewa,PA15010	Laboratory and Imaging, and Rehab, and Convenient Care
15	Edgeworth 100 Hazel Lane Sewickley,PA15143	Laboratory Services, Diagnostic & Imaging, Rehab
16	Heritage Valley Laboratory Draw Site - Hopewell 2032 Brodhead Road Aliquippa,PA15001	Laboratory Services
17	Heritage Valley Laboratory Draw Site - Leetsdale Quaker Village Shopping Center Leetsdale,PA15056	Heart & Vascular, Laboratory Services
18	Heritage Valley Laboratory Draw Site - Sharon Road Beaver 605 Sharon Road Beaver,PA15009	Heart & Vascular, Laboratory Services
19	Convenient Care 16280 Dresden Avenue East Liverpool,OH43920	Convenient Care
20	Convenient Care 3942 Brodhead Road Monaca,PA15061	Convenient Care
21	Surgery Center 301 Ohio River Blvd Sewickley,PA15143	Surgery Center
22	Bellevue 612 Lincoln Ave Bellevue,PA15202	Behavioral Health Services
23	Wexford 119 VIP Drive Wexford,PA15090	Behavioral Health Services
24	Lab- Ambridge 1155 Merchant St Ambridge,PA15003	Laboratory Services

Schedule H (Form 990) 2013

Page

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
Heritage Valley, Beaver Pt V Line 3	THE ORGANIZATION LED A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) TO EVALUATE THE HEALTH NEEDS OF INDIVIDUALS LIVING IN THE HOSPITAL SERVICE AREA INCLUDING BEAVER COUNTY AND THE SELECTED MUNICIPALITIES LOCATED WITHIN ALLEGHENY COUNTY BEGINNING IN 2012. THE ORGANIZATION CONTRACTED WITH REPUTABLE CONSULTING FIRMS TO ASSIST IN COMPLETING THE ASSESSMENT. THE PURPOSE OF THE ASSESSMENT WAS TO GATHER INFORMATION ABOUT LOCAL HEALTH NEEDS AND HEALTH BEHAVIORS. THE ASSESSMENT EXAMINED A VARIETY OF INDICATORS INCLUDING RISKY HEALTH BEHAVIORS (PHYSICAL INACTIVITY, TOBACCO USE) AND CHRONIC HEALTH CONDITIONS (DIABETES, HEART DISEASE). THE COMPLETION OF THE CHNA ENABLED THE ORGANIZATION TO TAKE AN IN-DEPTH LOOK AT ITS GREATER COMMUNITY. THE FINDINGS FROM THE ASSESSMENT WERE UTILIZED BY THE ORGANIZATION TO PRIORITIZE PUBLIC HEALTH ISSUES AND DEVELOP A COMMUNITY HEALTH IMPLEMENTATION PLAN FOCUSED ON MEETING COMMUNITY NEEDS.
Heritage Valley, Beaver Pt V Line 6i	THE CHNA IMPLEMENTATION PLAN IN AVAILABLE AT THE ORGANIZATION WEBSITE. WWW.HERITAGEVALLEY.ORG
Heritage Valley, Beaver Pt V Line 19d	UNINSURED INDIVIDUALS ARE EXPECTED TO PAY THE EQUIVALENT OF THE MEDICAID DRG CASE RATE PAYMENT FOR INPATIENT ACCOUNTS AND 45% OF CHARGES FOR OUTPATIENT ACCOUNTS.
Heritage Valley, Beaver Pt V Line 4	HERITAGE VALLEY SEWICKLEY HERITAGE VALLEY BEAVER
Heritage Valley, Beaver Pt V Line 20d	MAXIMUM AMOUNT CHARGED TO INPATIENTS IS MEDICAL ASSISTANCE RATES. MAXIMUM AMOUNT CHARGED TO OUTPATIENTS IS 45% OF TOTAL CHARGES.
Heritage Valley, Beaver Pt V Line 7	RATIONALE FOR COMMUNITY HEALTH NEEDS NOT ADDRESSED It is understood that in order to be the most effective and make the greatest impact, that not all community needs can be addressed at once. The Organization will continue to provide excellent quality of care and health literacy education to meet the wide array of health needs present among county residents. To allocate resources in an effort to impact the most pressing needs, the five key priority areas were identified. It is important to emphasize the criteria-driven approach that went into the selection of the priority issues. While the seriousness of the issue and ability to impact were the primary criteria for the quantitative ratings, additional criteria were included in the group discussion. These included the availability of proven best practices and prevention strategies, existing expertise and resources around any particular issue, and the opportunity for collective community buy-in or support to rally around a health priority. As a result, the Organization and its partners are confident that the prioritization process was a systematic, democratic, and thorough course of action. In total, nine key needs/themes were identified following the interpretation of the CHNA findings. A rationale for exclusion of the four issues not included in the final prioritized list of community needs is detailed below. Behavioral Health: The Organization currently provides both inpatient and outpatient behavioral health services to the community in collaboration with the County and other local providers that specialize in specific community-based supports, such as housing, case management, family support, respite care ,etc. Resource constraints do not permit expansion of these efforts. Drug and Alcohol Abuse: While the Organization will continue to provide supportive services to the community, as appropriate, however other providers specialize in this care and are better suited to address the initiatives related to drug and alcohol abuse in the community. Maternal Health: The Organization has many successful programs related to prenatal and maternal health which will continue to be offered to the community. Community Sustainability: The Organization will continue to support environmental responsibility and will encourage safe neighborhoods. The Organization does not have the resources or expertise needed to influence this need.
Heritage Valley, Sewickley Pt V Line 3	THE ORGANIZATION LED A COMPREHENSIVE COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) TO EVALUATE THE HEALTH NEEDS OF INDIVIDUALS LIVING IN THE HOSPITAL SERVICE AREA INCLUDING BEAVER COUNTY AND THE SELECTED MUNICIPALITIES LOCATED WITHIN ALLEGHENY COUNTY BEGINNING IN 2012. THE ORGANIZATION CONTRACTED WITH REPUTABLE CONSULTING FIRMS TO ASSIST IN COMPLETING THE ASSESSMENT. THE CHNA WAS COMPLETED IN MAY OF 2013 AND APPROVED BY THE BOARD OF DIRECTORS JUNE 27, 2013. THE PURPOSE OF THE ASSESSMENT WAS TO GATHER INFORMATION ABOUT LOCAL HEALTH NEEDS AND HEALTH BEHAVIORS. THE ASSESSMENT EXAMINED A VARIETY OF INDICATORS INCLUDING RISKY HEALTH BEHAVIORS (PHYSICAL INACTIVITY, TOBACCO USE) AND CHRONIC HEALTH CONDITIONS (DIABETES, HEART DISEASE). THE COMPLETION OF THE CHNA ENABLED THE ORGANIZATION TO TAKE AN IN-DEPTH LOOK AT ITS GREATER COMMUNITY. THE FINDINGS FROM THE ASSESSMENT WERE UTILIZED BY THE ORGANIZATION TO PRIORITIZE PUBLIC HEALTH ISSUES AND DEVELOP A COMMUNITY HEALTH IMPLEMENTATION PLAN FOCUSED ON MEETING COMMUNITY NEEDS.
Heritage Valley, Sewickley Pt V Line 6i	THE CHNA IMPLEMENTATION PLAN IN AVAILABLE AT THE ORGANIZATION WEBSITE. WWW.HERITAGEVALLEY.ORG
Heritage Valley, Sewickley Pt V Line 19d	OF THE MEDICAID DRG CASE RATE PAYMENT FOR INPATIENT ACCOUNTS AND 45% OF CHARGES FOR OUTPATIENT ACCOUNTS.
Heritage Valley, Sewickley Pt V Line 4	HERITAGE VALLEY SEWICKLEY HERITAGE VALLEY BEAVER
Heritage Valley, Sewickley Pt V Line 20d	MAXIMUM AMOUNT CHARGED TO INPATIENTS IS MEDICAL ASSISTANCE RATES. MAXIMUM AMOUNT CHARGED TO OUTPATIENTS IS 45% OF TOTAL CHARGES.
Heritage Valley, Sewickley Pt V Line 7	RATIONALE FOR COMMUNITY HEALTH NEEDS NOT ADDRESSED It is understood that in order to be the most effective and make the greatest impact, that not all community needs can be addressed at once. The Organization will continue to provide excellent quality of care and health literacy education to meet the wide array of health needs present among county residents. To allocate resources in an effort to impact the most pressing needs, the five key priority areas were identified. It is important to emphasize the criteria-driven approach that went into the selection of the priority issues. While the seriousness of the issue and ability to impact were the primary criteria for the quantitative ratings, additional criteria were included in the group discussion. These included the availability of proven best practices and prevention strategies, existing expertise and resources around any particular issue, and the opportunity for collective community buy-in or support to rally around a health priority. As a result, the Organization and its partners are confident that the prioritization process was a systematic, democratic, and thorough course of action. In total, nine key needs/themes were identified following the interpretation of the CHNA findings. A rationale for exclusion of the four issues not included in the final prioritized list of community needs is detailed below. Behavioral Health: The Organization currently provides both inpatient and outpatient behavioral health services to the community in collaboration with the County and other local providers that specialize in specific community-based supports, such as housing, case management, family support, respite care ,etc. Resource constraints do not permit expansion of these efforts. Drug and Alcohol Abuse: While the Organization will continue to provide supportive services to the community, as appropriate, however other providers specialize in this care and are better suited to address the initiatives related to drug and alcohol abuse in the community. Maternal Health: The Organization has many successful programs related to prenatal and maternal health which will continue to be offered to the community. Community Sustainability: The Organization will continue to support environmental responsibility and will encourage safe neighborhoods. The Organization does not have the resources or expertise needed to influence this need.

Schedule H (Form 990) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990
lBullet

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

OMB No. 1545-0047

2013

Open to Public
Inspection

Name of the organization
Valley Medical Facilities Inc

Employer identification number
25-1801532

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

Grants and Other Assistance to Governments and Organizations in the United States. Complete if the organization answered "Yes" to
Form 990, Part IV, line 21, for any recipient that received more than $5,000. Part II can be duplicated if additional space is needed.

(a) Name and address of organization or government	(b) EIN	(c) IRC Code section if applicable	(d) Amount of cash grant	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

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

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

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

Cat. No. 50055P

Schedule I (Form 990) 2013

Page 2

Part III

Grants and Other Assistance to Individuals in the United States. Complete if the organization answered "Yes" to Form 990, Part IV, line 22.
Part III can be duplicated if additional space is needed.

(a)Type of grant or assistance	(b)Number of recipients	(c)Amount of cash grant	(e)Method of valuation (book, FMV, appraisal, other)	(f)Description of non-cash assistance
(1) Tuition Reimbursement	107	235,861	FMV	N/A
(2) Educational Assistance	22	52,912	FMV	N/A

Part IV

Supplemental Information. Provide the information required in Part I, line 2, Part III, column (b), and any other additional information.

Return Reference	Explanation
Pt I Line 2	Educational Assistance is granted to active, eligible full-time and part-time
Pt I Line 2	employees. Current and future educational, training and staffing needs
Pt I Line 2	of the Organization are taken into consideration when granting educational assistance.
Pt I Line 2	The grade report for employees receiving educational assistance must show a grade of "C" or better
Pt I Line 2	for Undergraduate and a "B" or better for Graduate level courses.
Pt I Line 2	Tuition Reimbursement - Provided to candidates employed as RNs by the
Pt I Line 2	Organization who are enrolled in the Penn State BSN Program. The
Pt I Line 2	receipient must be in good employment standing, and must submit proof of
Pt I Line 2	grades with at least a 2.0 GPA and invoice for tuition. Recipients are bound
Pt I Line 2	to certain employment stipulations, and if obligations are not met, the
Pt I Line 2	payment may be pro-rated.

Schedule I (Form 990) 2013

Additional Data

Software ID:	13000178
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

See separate instructions.
SchJMediumBullet

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

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? .........

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Cat. No. 50053T

Schedule J (Form 990) 2013

Page 2

Part II

Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees. Use duplicate copies if additional space is needed.

For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in the
instructions, on row (ii). Do not list any individuals that are not listed on Form 990, Part VII.
Note. The sum of columns (B)(i)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line 1a, applicable column (D) and (E) amounts for that individual.

(A) Name and Title		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation reported as deferred in prior Form 990
(1)NORMAN F MITRY	(i) (ii)	565,001		10,930	16,713	33,737	626,381
(2)RICHARD C HOGAN MD	(i) (ii)	357,992		17,100	7,220	30,603	412,915
(3)JAMES SCIBILIA MD	(i) (ii)	346,375			10,200	29,550	386,125
(4)ALEXANDER VASILAKIS MD	(i) (ii)	515,000		29,596	10,200	34,242	589,038
(5)JOHN LUELLEN MD	(i) (ii)	355,948		21,855	16,713	28,777	423,293
(6)JOHN CINICOLA MD	(i) (ii)	380,000		4,348	13,990	28,941	427,279
(7)SHARON LOFTUS ESQ	(i) (ii)	275,001		3,765	14,163	13,018	305,947
(8)BRYAN J RANDALL	(i) (ii)	330,000		7,933	17,713	27,873	383,519
(9)DAVID THIMONS DO	(i) (ii)	422,621		7,143	14,163	26,344	470,271
(10)RONALD D LECKEY MD	(i) (ii)	341,683		42,463	16,713	28,914	429,773
(11)MATTHEW WHEELER MD	(i) (ii)	298,211	15,000	66,035	14,163	28,467	421,876
(12)JUSTIN DOSCH MD	(i) (ii)	265,513		80,800	14,163	27,987	388,463
(13)MICHAEL BARTON MD	(i) (ii)	268,833		73,786	16,713	27,841	387,173

Schedule J (Form 990) 2013

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
Pt I Line 1a	CEO social membership dues at Club are paid by the Organization

Schedule J (Form 990) 2013

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990. SchKMediumBullet

See separate instructions.
SchKMediumBullet

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

OMB No. 1545-0047

2013

Open to Public
Inspection

Name of the organization
Valley Medical Facilities Inc

Employer identification number
25-1801532

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	The Hospital Authority of the County of Beaver	25-1247712	074863FX4	01-19-2012	72,496,375	Refund Issue Dated 08/4/1998		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . . .	8,550,000
2 Amount of bonds legally defeased . . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . . .	72,496,375
4 Gross proceeds in reserve funds . . . . . . . . . . . .
5 Capitalized interest from proceeds . . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . . .
7 Issuance costs from proceeds . . . . . . . . . . . .	840,042
8 Credit enhancement from proceeds . . . . . . . . . . .
9 Working capital expenditures from proceeds . . . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . . .
11 Other spent proceeds . . . . . . . . . . . . . .	71,656,333
12 Other unspent proceeds . . . . . . . . . . . . . .
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? . . . . . . . . . . . . . .	X

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2013

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? . . . . . . . . . . . .
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property?
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . . . . . . . . . .
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 . .
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? . . . . .
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?. . . . . . . . . . . . . . . . .
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? . . . . . . . . . . . . .
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? . . . . . . .

Part IV

Arbitrage

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
1 Has the issuer filed Form 8038-T? . . . . .		X
2 If "No" to line 1, did the following apply? . . . .
a Rebate not due yet? . . . . . . . .	X
b Exception to rebate? . . . . . . . .
c No rebate due? . . . . . . . .
If you checked "No rebate due" in 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 . . . . . . . . .
c Term of hedge . . . . . . . . . .
d Was the hedge superintegrated? . . . .
e Was the hedge terminated? . . . . . .

Schedule K (Form 990) 2013

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 . . . . . . . . .
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 (Form 990) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Attach to Form 990 or Form 990-EZ. MediumBullet

See separate instructions.
MediumBullet

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I

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

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

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

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

Part II

Loans to and/or From Interested Persons.
Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a, or Form 990, Part IV, line 26; or if the organization reported an amount on Form 990, Part X, line 5, 6, or 22

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






Total ...... $

Part III

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

(a) Name of interested person	(b) Relationship between interested person and the organization	(c) Amount of assistance	(d) Type of assistance	(e) Purpose of assistance

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2013

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) LINDA MARSHALLRN	sister in law of Board member	37,681	Registered Nurse for Hospital		No

Part V

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

Return Reference	Explanation
Part IV Line 1	Linda Marshall is sister in law of VMF board member Joan Marshall
Part IV Line 1	Linda worked for Heritage Valley, Sewickley as an R.N.

Schedule L (Form 990 or 990-EZ) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.
MediumBullet

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

OMB No. 1545-0047

2013

Open to Public
Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Return Reference	Explanation
Pt VI, Line 6	Heritage Valley Health System is the sole member of Valley Medical Facilities
Pt VI, Line 7a	the Sole Member, Heritage Valley Health System, appoints the members of the governing body.
Pt VI, Line 7b	the Sole Member, Heritage Valley Health System, acting by and through its Board of Directors
Pt VI, Line 7b	have exclusive power to:
Pt VI, Line 7b	1. Elect all members to the Corporation's Board of Directors,
Pt VI, Line 7b	with right to remove the elected Directors, with or without cause;
Pt VI, Line 7b	2. Amend or approve amendments to the Corporation's
Pt VI, Line 7b	Articles of Incorporation or Bylaws;
Pt VI, Line 7b	3. Approve any voluntary dissolution, merger or consolidation of the Corpoartion; and
Pt VI, Line 7b	4. Approve the creation or acquisition of any subsidiary or affiliate.
Pt VI, Line 11b	A draft of the completed Form 990 and all
Pt VI, Line 11b	associated forms is made available electronically to all Board of
Pt VI, Line 11b	Directors Members and Senior Management for review and comment prior to
Pt VI, Line 11b	filing with the Internal Revenue Service (IRS). The Board of Directors
Pt VI, Line 11b	has delegated the responsibility for review and approval of the Form 990 to the
Pt VI, Line 11b	Finance Committee of the Board, which meets, reviews, and approves the
Pt VI, Line 11b	Form 990 prior to filing.
Pt VI, Line 12c	Certain non-merit employees with job responsibilities
Pt VI, Line 12c	that provide an opportunity to influence business decisions are required
Pt VI, Line 12c	to sign the Conflict of Interest form annually. These Conflict of Interest
Pt VI, Line 12c	statements are reviewed annually by the Department Director and System
Pt VI, Line 12c	Director for Corporate Compliance to determine if a conflict exists.
Pt VI, Line 12c	Any potential conflicts are referred to the appropriate Vice President and
Form 990, Part IX, Line 24f	TELEPHONE 773619. 773619. POSTAGE AND SHIPPING 218185. 218185. FEES, ADMIN AND OTHER 6847778. 6847778. DUES 277201. 159377. 117824. EQUIPMENT RENTAL AND MAINTENACE 9648280. 9648077. 203.
Pt VI, Line 12c	Human Resources to confirm and resolve the conflict.
Pt VI, Line 12c	For Merit Employees, Conflict of Interest statements are reviewed annually by
Pt VI, Line 12c	the Department Manager, Vice President or CEO. Any potential conflicts are
Pt VI, Line 12c	managed by the CEO.
Pt VI, Line 12c	Other Potentially Interested Parties, such as Board Members, Officers and
Pt VI, Line 12c	Highly Compensated employees sign a statement annually which affirms such
Pt VI, Line 12c	person has received a copy of the Conflict of Interest Policy, has read and
Pt VI, Line 12c	understands the policy, has agreed to comply with the policy, and
Pt VI, Line 12c	understands that the Organization is a charitable organization and that in
Pt VI, Line 12c	order to maintain its Federal Tax Exemption it must engage primarily in
Pt VI, Line 12c	activities which accomplish one or more of its tax exempt purposes. The
Pt VI, Line 12c	Chairperson of the Board reviews annually a summary of the disclosure
Pt VI, Line 12c	statements so that the Board Members are familiar with potential conflicts.
Pt VI, Line 12c	Section B Line 14- The Organization has a record retention policy which
Pt VI, Line 12c	provides for the retention of business and medical records, including destruction.
Pt VI, Line 15a	Based on operational performance, there were no increases
Pt VI, Line 15b	provided to the Organization's CEO or other members of
Pt VI, Line 15b	the Senior Management Team with the exception of one
Pt VI, Line 15b	individual who received a market adjustment.
Pt VI, Line 15b	In addition, there was no review conducted by independent persons.
Pt VI, Line 19	The Organization publishes condensed financial
Pt VI, Line 19	statements for public use on its website www.heritagevalley.org.
Pt VI, Line 19	Governing documents and policies, including conflicts of interest,
Pt VI, Line 19	are made available upon request.
Pt XI	Other changes in net assets. Changes in restricted net assets.
Pt XI	Pension obligation adjustment.
Pt XII, Line 2c	The Organization has a committee that assumes
Pt XII, Line 2c	responsibility for oversight of audit, review, or compilation of its
Pt XII, Line 2c	financial statement and selection of an independent accountant.
Pt VI, Line 2	Mary Kirsch, CPA, Board Member of the Organization
Pt VI, Line 2	and Dennis Pedgen have a business relationship.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2013

Additional Data

Software ID:	13000178
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990. MediumBullet

See separate instructions.
MediumBullet

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

OMB No. 1545-0047

2013

Open to Public Inspection

Name of the organization

Valley Medical Facilities Inc

Employer identification number

25-1801532

Part I

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

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

Part II

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled 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) Heritage Valley Sewickley Foundation 420 Rouser Road Moon Township,PA15108 25-1801533	FUNDRAISING	PA	501(c)3	11C	Heritage Valley Health System		No
(2) Heritage Valley Beaver Foundation 420 Rouser Road Moon Township,PA15108 25-1441516	FUNDRAISING	PA	501(C)3	11C	Heritage Valley Health System		No
(3) Heritage Valley Health System Inc 1000 Dutch Ridge Road Beaver,PA15009 25-1441518	PARENT SUPPORTING ORG	PA	501(C)3	11C	NA		No
(4) Valley Medical Facilities Inc Workers Compensation Trust Fund 420 Rouser Road Moon Township,PA15108 25-1463381	Provide Worker's Compensation Benefits	PA	501(C)3	11C	Valley Medical Facilities Inc	Yes
(5) Hospitality Shop of Sewickley Valley 720 Blackburn Road Sewickley,PA15143 25-1012989	FUNDRAISING	PA	501(c)3	11c	Heritage Valley Health System		No
(6) The Medical Center Auxiliary 1000 Dutch Ridge Road Beaver,PA15009 25-1383145	FUNDRAISING	PA	501(c)3	11c	Heritage Valley Health System		No
(7) Valley Health System Foundation 420 Rouser Road Moon Township,PA15108 25-1801534	FUNDRAISING	PA	501(c)3	11c	Heritage Valley Health System		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2013

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code 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) Consolidated Supply Chain Services 420 Rouser Road Moon Township,PA15108 27-1055405	Group Purchasing	PA	Heritage Valley Health System	excluded from tax				No			No	0 %
(2) Edgeworth Commons Group LLC 725 Cherrington Parkway Suite 200 Moon Township,PA15108 02-0713415	Surgery Center	PA	Heritage Valley Health System	excluded from tax				No			No	0 %

Part IV

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership	(i) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets		Yes	No
(1) Tri-State Obstetrics & Gynecology 420 Rouser Road Moon Township,PA15108 25-1776052	PHYSICIAN PRACTICE	PA	Heritage Valley Health System	C			0 %		No
(2) Heritage Valley Pediatrics Inc 420 Rouser Road Moon Township,PA15108 25-1775950	PHYSICIAN PRACTICE	PA	Heritage Valley Health System	C			0 %		No
(3) Heritage Valley Medical Group Inc 420 Rouser Road Moon Township,PA15108 25-1775949	PHYSICIAN PRACTICE	PA	Heritage Valley Health System	C			0 %
(4) Tri-State Gynecology Inc 420 Rouser Road Suite 201 Moon Township,PA15108 84-1647473	PHYSICIAN PRACTICE	PA	Heritage Valley Health System	C			0 %
(5) Heritage Valley Insurance Company PO Box 1051 Grand Cayman CJ	PROFESSIONAL LIABILITY CAPTIVE	CJ	Heritage Valley Health System	C			0 %

Schedule R (Form 990) 2013

Page 3

Part V

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

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

Yes

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

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

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

Yes

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

Yes

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

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

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

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

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

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

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

Yes

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

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

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

Yes

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

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Medical Center Beaver PA Inc Workers Compensation Trust Fund	r	1,000,000	FMV

Schedule R (Form 990) 2013

Page 4

Part VI

Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code 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

Schedule R (Form 990) 2013

Page 5

Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation

Schedule R (Form 990) 2013

Additional Data

Software ID:	13000178
Software Version:

1	Briefly describe the organization’s mission or most significant activities: To improve the health and well-being of all people in the communities 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 2013 (Part V, line 2a) ......	5	3,263
6	Total number of volunteers (estimate if necessary) .............	6	170
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	5,275,779
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	3,590,102	3,218,928
9	Program service revenue (Part VIII, line 2g) .........	328,548,761	337,783,521
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	7,027,706	9,157,688
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	20,656,377	19,524,634
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	359,822,946	369,684,771
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	456,551	288,773
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	206,267,137	202,339,626
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	154,763,874	159,602,184
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	361,487,562	362,230,583
19	Revenue less expenses. Subtract line 18 from line 12.......	-1,664,616	7,454,188
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	411,837,631	413,422,857
21	Total liabilities (Part X, line 26).............	196,879,783	174,545,086
22	Net assets or fund balances. Subtract line 21 from line 20.....	214,957,848	238,877,771

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 354,748,122 including grants of $ ) (Revenue $ 337,572,008 )
	THE HOSPITALS COMPRISING VALLEY MEDICAL FACILITIES PROVIDE ROUTINE AND AUXILLARY MEDICAL/SURGICAL, PSYCHIATRIC, AND REHABILITATION SERVICES TO THE COMMUNITIES SERVED BY THE HOSPITALS REGARDLESS OF PATIENT'S ABILITY TO PAY. DURING THE FISCAL YEAR, THE HOSPITALS HAD 22,895 INPATIENT ADMISSIONS, 1,850 NEWBORN ADMISSIONS, AND 100,713 INPATIENT DAYS. THE FACILITIES ALSO ENCOUNTERED 97,697 EMERGENCY ROOM VISITS, 16,626 OUTPATIENT SURGERIES, 216 OPEN HEART PROCEDURES, 2,691 CARDIAC CATHETERIZATIONS AND 307,292 DIAGNOSTIC IMAGING PROCEDURES.

4b	(Code: ) (Expenses $ 430,755 including grants of $ ) (Revenue $ 211,513 )
	SCHOOL OF NURSING TO PROMOTE AND PROVIDE SUPPORT TO THE HOSPITALS. THE ORGANIZATION CLOSED THE 97-YEAR-OLD SEWICKLEY SCHOOL OF NURSING AT THE END OF SEPTEMBER 2013 BASED ON THE NEED FOR ADVANCED CURRICULUM REQUIREMENTS FOR STUDENTS AND THE SUPPORT NEEDED FOR TODAY'S NON-TRADITIONAL STUDENTS. IN ADDITION, CURRENT AND FUTURE HEALTH CARE CHALLENGES, SUCH AS HEALTH CARE PAYMENT REFORM, INCREASING COMPETITION IN THE REGION, AND DECLINING POPULATION PLAYED A KEY ROLE IN THE DECISION TO CLOSE THE SCHOO

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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses355,178,877

(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)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) MARY KIRSCH CPA........................................................................ Director	2 .......................	X
(19) THOMAS ARBOGAST ESQ........................................................................ Director	2 .......................	X
(20) JOAN MARSHALL ESQ........................................................................ Director	2 .......................	X
(21) SHELLY MCQUONE MD........................................................................ Director	2 .......................	X				15,000
(22) JOHN LUELLEN MD........................................................................ Chief Quality Officer	40 .......................			X	377,803		45,490
(23) JOHN CINICOLA MD........................................................................ Chief Medical Officer	40 .......................			X	384,348		42,931
(24) SHARON LOFTUS ESQ........................................................................ V.P. & Deputy General Counsel/Asst. Secretary	40 .......................		X		278,766		27,181
(25) BRYAN J RANDALL........................................................................ V.P. CFO/ Asst. Treasurer	40 .......................		X		337,933		45,586

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	3,836,869	1,281,063	549,123

				(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
e	Government grants (contributions)1e		2,898,039

f	All other contributions, gifts, grants, and similar amounts not included above1f		320,889

g	Noncash contributions included in lines 1a-1f:$
h	Total. Add lines 1a-1f.......			3,218,928
			Business Code
2a	All other Patient Payments		900099	160,654,297		341,059
b	Medicare HMO Payments		900099	102,966,744
c	Medicare/Medicaid payments		900099	53,843,550
d	Medicaid HMO Payments		900099	20,318,930
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			337,783,521
3	Investment income (including dividends, interest, and other similar amounts).......			2,271,296			2,271,296
4	Income from investment of tax-exempt bond proceeds..
5	Royalties...........
		(i) Real	(ii) Personal
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss).......
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory	54,217,976
b	Less: cost or other basis and sales expenses	47,133,232	198,352
c	Gain or (loss)	7,084,744	-198,352
d	Net gain or (loss)..........			6,886,392			6,886,392
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...
10a	Gross sales of inventory, less returns and allowances .
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Miscellaneous Revenue			Business Code
11a	Sale of Drugs		900099	4,934,720		4,934,720
b	Nursing Tuition		900099	157,448	157,448
c
d	All other revenue ....			14,432,466	1,031,199		13,401,267
e	Total. Add lines 11a–11d ......			19,524,634
12	Total revenue. See Instructions......			369,684,771	338,631,109	5,275,779	22,558,955


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			2,265,908	1	4,947,152
2	Savings and temporary cash investments .........			4,737,144	2	4,891,075
3	Pledges and grants receivable, net ...........			266,608	3	293,509
4	Accounts receivable, net .............			52,384,850	4	47,302,194
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L ..................
					5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net .............				7
8	Inventories for sale or use ..............			6,390,283	8	6,409,184
9	Prepaid expenses and deferred charges ..........			13,220,558	9	11,465,303
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	469,078,098
b	Less: accumulated depreciation .....	10b	297,625,798	170,642,910	10c	171,452,300
11	Investments—publicly traded securities ..........			122,434,793	11	134,417,700
12	Investments—other securities. See Part IV, line 11 .....			38,945,683	12	31,676,750
13	Investments—program-related. See Part IV, line 11 .....				13
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			548,894	15	567,690
16	Total assets. Add lines 1 through 15 (must equal line 34)......			411,837,631	16	413,422,857
17	Accounts payable and accrued expenses .........			56,472,218	17	49,170,597
18	Grants payable .................				18
19	Deferred revenue ................				19
20	Tax-exempt bond liabilities .............			64,646,069	20	61,493,817
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..				23
24	Unsecured notes and loans payable to unrelated third parties ....			10,290,553	24	10,928,226
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....................			65,470,943	25	52,952,446
26	Total liabilities. Add lines 17 through 25.........			196,879,783	26	174,545,086
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			199,734,928	27	222,406,131
28	Temporarily restricted net assets ...........			9,012,161	28	9,867,469
29	Permanently restricted net assets ...........			6,210,759	29	6,604,171
	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 ...........			214,957,848	33	238,877,771
34	Total liabilities and net assets/fund balances ........			411,837,631	34	413,422,857

1	Was the organization a U.S. transferor of property to a foreign corporation during the tax year? If "Yes,"the organization may be required to file Form 926, Return by a U.S. Transferor of Property to a Foreign Corporation (see Instructions for Form 926)......................................	Yes	No
2	Did the organization have an interest in a foreign trust during the tax year? If "Yes," the organization may be required to file Form 3520, Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts, and/or Form 3520-A, Annual Information Return of Foreign Trust With a U.S. Owner (see Instructions for Forms 3520 and 3520-A).......................................	Yes	No
3	Did the organization have an ownership interest in a foreign corporation during the tax year? If "Yes," the organization may be required to file Form 5471, Information Return of U.S. Persons with Respect to Certain Foreign Corporations. (see Instructions for Form 5471)..............................	Yes	No
4	Was the organization a direct or indirect shareholder of a passive foreign investment company or a qualified electing fund during the tax year? If “Yes,” the organization may be required to file Form 8621, Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. (see Instructions for Form 8621)...............................................	Yes	No
5	Did the organization have an ownership interest in a foreign partnership during the tax year? If "Yes," the organization may be required to file Form 8865, Return of U.S. Persons with Respect to Certain Foreign Partnerships. (see Instructions for Form 8865)....................................	Yes	No
6	Did the organization have any operations in or related to any boycotting countries during the tax year? If "Yes," the organization may be required to file Form 5713, International Boycott Report (see Instructions for Form 5713)................................................	Yes	No