TY 2015 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) WILLIAM S RUKEYSER...................................................................... CHAIR	1.00 .................	X		0	0
(2) RENDA BURKHART...................................................................... VICE CHAIR	1.00 .................	X		0	0
(3) CAROLYN FAIRBANK BIGGS...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(4) STUART J BRESEE MC...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(5) DR JOSEPH E JOHNSON...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(6) DR DAVID E MILLHORN...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(7) WES STOWERS...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(8) HW SHERROD JR...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(9) MICHAEL STRICKLAND...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(10) DR JIMMY CHEEK...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(11) DR JOSEPH DIPIETRO...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(12) ROBERT F ELDER MD...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(13) STEVE J SCHWAB MD...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(14) JOSEPH LANDSMAN...................................................................... PRESIDENT & CEO	65.00 .................	X	X	1,280,098	257,462
(15) W BEDFORD WATERS...................................................................... BOARD MEMBER	1.00 .................	X		0	0
(16) THOMAS FISHER...................................................................... SR VP & CFO	65.00 .................		X	645,128	120,845
(17) WILLIAM HALL...................................................................... SR VP & COO	65.00 .................		X	593,866	115,799

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(18) JOHN LACEY........................................................................ SR VP & CMO	65.00 .......................	X			621,050	108,455
(19) STEVEN ROSS........................................................................ SR VP	65.00 .......................	X			588,715	96,359
(20) TERESA LEVEY........................................................................ SR VP	65.00 .......................	X			452,983	82,210
(21) JANELL CECIL........................................................................ SR VP & CNO	65.00 .......................	X			553,111	90,962
(22) INGA HIMELRIGHT........................................................................ SR VP & CQO	65.00 .......................	X			466,950	90,555
(23) JERRY EPPS........................................................................ SR VP & CMO	65.00 .......................	X			107,935	13,888
(24) JOHN BELL........................................................................ PHYSICIAN/MEDICAL DIRECTOR	65.00 .......................		X		811,402	78,697
(25) BENNETT COX........................................................................ CHIEF GENERAL COUNSEL	65.00 .......................		X		428,365	76,274
(26) ROBERT ELDER........................................................................ PHYSICIAN/MEDICAL DIRECTOR	65.00 .......................		X		583,396	53,071
(27) KATHERINE BOYD........................................................................ CHIEF DEVELOPMENT OFFICER	65.00 .......................		X		209,215	14,519
(28) RICHARD GIECEK........................................................................ CHIEF DEVELOPMENT OFFICER	65.00 .......................		X		444,301	35,955
(29) DAVID ALJADIR........................................................................ PHYSICIAN ONCOLOGY	65.00 .......................			X	849,241	97,520
(30) MICHAEL FREEMAN........................................................................ PHYSICIAN VASCULAR	65.00 .......................			X	1,086,803	109,410
(31) LARRY KILGORE........................................................................ PHYSICIAN GYN ONCOLOGY	65.00 .......................			X	1,165,450	112,412
(32) OSCAR GRANDAS........................................................................ PHYSICIAN VASCULAR	65.00 .......................			X	1,182,620	121,543
(33) NATHAN SCHROCK........................................................................ PHYSICIAN ONCOLOGY	65.00 .......................			X	866,013	99,005

(A) Name and business address	(B) Description of services	(C) Compensation
GRADUATE SCHOOL OF MEDICINE 1924 ALCOA HWY KNOXVILLE,TN37920	MEDICAL EDUCATION	31,163,045
UNIVERSITY PHYSICIANS ASSOCIATION 9000 EXECUTIVE PARK DRIVE KNOXVILLE,TN37923	PHYSICIAN SALARIES/CBO MANAGEMENT	29,304,441
LABORATOROY CORPORATION OF AMERICA 1924 ALCOA HIGHWAY KNOXVILLE,TN37920	LABORATORY SERVICES	15,652,176
UNIVERSITY ANESTHESIOLOGIST PO BOX 51947 KNOXVILLE,TN37950	MEDICAL COVERAGE	10,493,808
CROTHALL LAUNDRY SERVICES 1500 LIBERTY RIDGE DRIVE WAYNE,TN19087	MANAGEMENT BIOMED/ENVIRONMENTAL SERVICES	9,291,322
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 151

- 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.
right arrow

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

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 (Form 990 or 990-EZ))

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

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

An organization operated for the benefit of a college or university owned or operated by a governmental unit described in section 170(b)(1)(A)(iv). (Complete Part II.)

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

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

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

An organization that normally receives: (1) more than 331/3% of its support from contributions, membership fees, and gross receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)

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

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

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

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

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

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

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

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

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

Page 2

Part II

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

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any unusual grants.) ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.)..
11	Total support. Add lines 7 through 10.

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

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

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 6, column (f) divided by line 11, column (f)) .........

Public support percentage for 2014 Schedule A, Part II, line 14 ...............

16a

33 1/3% support test—2015. 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—2014. 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—2015. If the organization did not check a box on line 13, 16a, or 16b, and line 14
is 10% or more, and if the organization meets the facts-and-circumstances test, check this box and stop here. Explain
in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly supported
organization ..................................................... right arrow

10%-facts-and-circumstances test—2014. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

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

Schedule A (Form 990 or 990-EZ) 2015

Page 3

Part III

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

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513...
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public support. (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2011	(b) 2012	(c) 2013	(d) 2014	(e) 2015	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

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

Section C. Computation of Public Support Percentage

Public support percentage for 2015 (line 8, column (f) divided by line 13, column (f)) .........

Public support percentage from 2014 Schedule A, Part III, line 15 ...............

Section D. Computation of Investment Income Percentage

Investment income percentage for 2015 (line 10c, column (f) divided by line 13, column (f)) ......

Investment income percentage from 2014 Schedule A, Part III, line 17 .............

19a

331/3% support tests—2015. 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—2014. 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) 2015

Page 4

Part IV

Supporting Organizations

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

Section A. All Supporting Organizations

Yes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10a

Was the organization subject to the excess business holdings rules of section 4943 because of section 4943(f) (regarding certain Type II supporting organizations, and all Type III non-functionally integrated supporting organizations)? If “Yes,” answer line 10b below.

10a

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

10b

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

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

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

11a

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

11b

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

11c

Section B. Type I Supporting Organizations

Yes

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

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

Section C. Type II Supporting Organizations

Yes

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

Section D. All Type III Supporting Organizations

Yes

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

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

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

Section E. Type III Functionally-Integrated Supporting Organizations

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

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

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

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

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

Yes

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

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2015

Page 6

Part V

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

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

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

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

	Section C - Distributable Amount		Current Year
1	Adjusted net income for prior year (from Section A, line 8, Column A)	1
2	Enter 85% of line 1	2
3	Minimum asset amount for prior year (from Section B, line 8, Column A)	3
4	Enter greater of line 2 or line 3	4
5	Income tax imposed in prior year	5
6	Distributable Amount. Subtract line 5 from line 4, unless subject to emergency temporary reduction (see instructions)	6

Check here if the current year is the organization's first as a non-functionally-integrated Type III supporting organization (see instructions)

Schedule A (Form 990 or 990-EZ) 2015

Page 7

Part V

Type III Non-Functionally Integrated 509(a)(3) Supporting Organizations (continued)

Section D - Distributions		Current Year
1 Amounts paid to supported organizations to accomplish exempt purposes
2 Amounts paid to perform activity that directly furthers exempt purposes of supported organizations, in excess of income from activity
3 Administrative expenses paid to accomplish exempt purposes of supported organizations
4 Amounts paid to acquire exempt-use assets
5 Qualified set-aside amounts (prior IRS approval required)
6 Other distributions (describe in Part VI). See instructions
7Total annual distributions. Add lines 1 through 6.
8 Distributions to attentive supported organizations to which the organization is responsive (provide details in Part VI). See instructions
9 Distributable amount for 2015 from Section C, line 6
10 Line 8 amount divided by Line 9 amount

Section E - Distribution Allocations (see instructions)		(i) Excess Distributions	(ii) Underdistributions Pre-2015	(iii) Distributable Amount for 2015
1 Distributable amount for 2015 from Section C, line 6
2 Underdistributions, if any, for years prior to 2015 (reasonable cause required--see instructions)
3 Excess distributions carryover, if any, to 2015:
a
b
c
d From 2013.......
e From 2014.......
fTotal of lines 3a through e
g Applied to underdistributions of prior years
h Applied to 2015 distributable amount
i Carryover from 2010 not applied (see instructions)
j Remainder. Subtract lines 3g, 3h, and 3i from 3f.
4Distributions for 2015 from Section D, line 7:
$
a Applied to underdistributions of prior years
b Applied to 2015 distributable amount
c Remainder. Subtract lines 4a and 4b from 4.
5 Remaining underdistributions for years prior to 2015, if any. Subtract lines 3g and 4a from line 2 (if amount greater than zero, see instructions)
6 Remaining underdistributions for 2015. Subtract lines 3h and 4b from line 1 (if amount greater than zero, see instructions)
7 Excess distributions carryover to 2016. Add lines 3j and 4c.
8 Breakdown of line 7:
a
b
c Excess from 2013.......
d From 2014.......
e From 2015.......

Schedule A (Form 990 or 990-EZ) (2015)

Schedule A (Form 990 or 990-EZ) 2015

Page 8

Part VI

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

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

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

OMB No. 1545-0047

2015

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

For an organization filing Form 990, 990-EZ, or 990-PF that received, during the year, contributions totaling $5,000 or more (in money or other property) from any one contributor. Complete Parts I and II. See instructions for determining a contributor's total contributions.

Special Rules

For an organization described in section 501(c)(3) filing Form 990 or 990-EZ that met the 33¹/3% support test of the regulations
under sections 509(a)(1) and 170(b)(1)(A)(vi), that checked Schedule A (Form 990 or 990-EZ), Part II, line 13, 16a, or 16b, and that received from any one contributor, during the year, total contributions of the greater of (1) $5,000 or (2) 2% of the amount on (i) Form 990, Part VIII, line 1h, or (ii) Form 990-EZ, line 1. Complete Parts I and II.

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

For an organization described in section 501(c)(7), (8), or (10) filing Form 990 or 990-EZ that received from any one contributor,
during the year, contributions exclusively for religious, charitable, etc., purposes, but no such contributions totaled more than $1,000. If this box is checked, enter here the total contributions that were received during the year for an exclusively religious, charitable, etc., purpose. Do not complete any of the parts unless the General Rule applies to this organization because it received nonexclusively religious, charitable, etc., contributions totaling $5,000 or more during the year ......... Arrow Bullet

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

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

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015) Page 2

Name of organization UNIVERSITY HEALTH SYSTEM INC

Part I	Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	,	$ RESTRICTED	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 3

Name of organization UNIVERSITY HEALTH SYSTEM INC		Employer identification number 31-1626179

Part II	Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No.from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Page 4


Name of organization UNIVERSITY HEALTH SYSTEM INC			Employer identification number 31-1626179
Part III Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from any one contributor. Complete columns (a) through (e) and the following line entry. For organizations completing Part III, enter the total of exclusively religious, charitable, etc., contributions of $1,000 or less for the year. (Enter this information once. See instructions.) $ Use duplicate copies of Part III if additional space is needed.

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

Schedule B (Form 990, 990-EZ, or 990-PF) (2015)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE C
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Political Campaign and Lobbying Activities

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

Complete if the organization is described below. SchCMd Bullet

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

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

OMB No. 1545-0047

2015

Open to Public
Inspection

If the organization answered "Yes" on 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" on 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" on Form 990, Part IV, Line 5 (Proxy Tax) (see separate instructions) or Form 990-EZ, Part V, line 35c (Proxy Tax) (see separate instructions), then
Round Bullet

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

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

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-.
1
2
3
4
5
6

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2015

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 separate instructions for lines 2a through 2f.)
Lobbying Expenditures During 4-Year Averaging Period
	Calendar year (or fiscal year beginning in)	(a) 2012	(b) 2013	(c) 2014	(d) 2015	(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) 2015

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 on lines 1a through 1i below, provide in Part IV a detailed description of the lobbying activity.

(a)

Yes

(b)

Amount

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

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

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

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

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

Yes

257

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

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

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

Yes

226,828

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

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

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

227,085

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, lines 1 and 2 (see instructions), and Part ll-B, line 1. Also, complete this part for any additional information.

Return Reference	Explanation
PART II-B, LINE 1:	LOBBYING EXPENDITURES INCLUDE AN ALLOCATION OF THE SALARY OF THE VICE PRESIDENT FOR GOVERNMENT RELATIONS, INCLUDING TIME AND EXPENSES ASSOCIATED WITH CONTACTING LEGISLATORS IN MATTERS IMPACTING THE HEALTH SYSTEM AND COMMUNITIES IN WHICH IT SERVES.

Schedule C (Form 990 or 990EZ) 2015

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," on Form 990,
Part IV, line 6, 7, 8, 9, 10, 11a, 11b, 11c, 11d, 11e, 11f, 12a, or 12b.
SchDMd Bullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Part I

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

			(a) Donor advised funds	(b) Funds and other accounts

1	Total number at end of year ....
2	Aggregate value of contributions to (during year)
3	Aggregate value of grants from (during year)
4	Aggregate value at end of year ....

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

Yes No

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

Yes No

Part II

Conservation Easements. Complete if the organization answered "Yes" on 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, handling of violations, and enforcing conservation easements during the year
SchDMd Bullet

Amount of expenses incurred in monitoring, inspecting, handling of violations, 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" on Form 990, Part IV, line 8.

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

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

(i)

Revenue included on Form 990, Part VIII, line 1 ......................... SchDMd Bullet

(ii)

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

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

Revenue included on 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) 2015

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" on 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


b	If "Yes," explain the arrangement in Part XIII and complete the following table:		Amount
c	Beginning balance .............................	1c
d	Additions during the year ............................	1d
e	Distributions during the year ..........................	1e
f	Ending balance ................................	1f

Did the organization include an amount on Form 990, Part X, line 21, for escrow or custodial account liability?

Yes No

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

Part V

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

		(a)Current year	(b)Prior year	(c)Two years back	(d)Three years back	(e)Four years back

1a	Beginning of year balance ....	8,276,241	6,658,273	5,543,702	5,335,691	4,696,167
b	Contributions ...	799,597	1,259,163	347,497	62,517	526,636
c	Net investment earnings, gains, and losses	-48,550	358,805	767,074	145,494	112,888
d	Grants or scholarships ...
e	Other expenditures for facilities and programs ...
f	Administrative expenses ....
g	End of year balance ......	9,027,288	8,276,241	6,658,273	5,543,702	5,335,691

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

100.000 %

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

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

Part VI

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

Description of property		(a) Cost or other basis (investment)	(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value

1a	Land ...	1,764,427		1,764,427
b	Buildings	8,362,347	326,711	8,035,636
c	Leasehold improvements	271,337,348	111,811,903	159,525,445
d	Equipment ...	177,739,882	134,219,639	43,520,243
e	Other ...	40,658,343	22,728,208	17,930,135
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..				230,775,886

Schedule D (Form 990) 2015

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' on 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)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

InvestmentsProgram Related. Complete if the organization answered 'Yes' on 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

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 13.)

Part IX

Other Assets. Complete if the organization answered 'Yes' on Form 990, Part IV, line 11d. See Form 990, Part X, line 15.

(a) Description				(b) Book value

(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........

Part X

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

1.(a) Description of liability	(b) Book value
(1) Federal income taxes
OTHER LIABILITIES	17,349,035
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	17,349,035
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) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......			1	781,672,781
2	Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a	Net unrealized gains (losses) on investments ....	2a	-2,657,082
b	Donated services and use of facilities .........	2b
c	Recoveries of prior year grants ...........	2c
d	Other (Describe in Part XIII.) ............	2d	4,365,592
e	Add lines 2a through 2d .....................			2e	1,708,510
3	Subtract line 2e from line 1..................			3	779,964,271
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	55,470,919
c	Add lines 4a and 4b....................			4c	55,470,919
5	Total revenue. Add lines 3 and 4c. (This must equal Form 990, Part I, line 12.) ......			5	835,435,190

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........			1	761,628,014
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	394,995
e	Add lines 2a through 2d....................			2e	394,995
3	Subtract line 2e from line 1...................			3	761,233,019
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	55,048,897
c	Add lines 4a and 4b.....................			4c	55,048,897
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......			5	816,281,916

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
PART V, LINE 4:	ALL ENDOWMENT FUNDS ARE USED TO SUPPORT THE OVERALL MISSION OF THE UNIVERSITY HEALTH SYSTEM - PATIENT CARE, RESEARCH, AND EDUCATION. THERE ARE SIXTEEN FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. THE INTEREST INCOME IS POSTED TO GIFT FUNDS ASSOCIATED WITH THE ENDOWMENTS AND IS FOR EITHER GENERAL OR SPECIFIC PURPOSES BASED UPON THE INTENT OF THE DONOR.
PART X, LINE 2:	UHS HAS BEEN RECOGNIZED AS A TAX-EXEMPT ORGANIZATION PURSUANT TO SECTION 501(A) OF THE INTERNAL REVENUE CODE AS AN ENTITY DESCRIBED UNDER SECTION 501(C)(3). RTS AND UCG ARE SINGLE MEMBER LIMITED LIABILITY COMPANIES DISREGARDED AS ENTITIES SEPARATE FROM UHS FOR FEDERAL TAX PURPOSES. UHSV IS A TENNESSEE NONPROFIT CORPORATION THAT IS NOT EXEMPT FROM FEDERAL TAXES. INCOME TAX EXPENSE FOR UHSV FOR THE YEARS ENDED DECEMBER 31, 2015 AND 2014 WAS NOT SIGNIFICANT AND WAS OFFSET BY OPERATING LOSSES IN PRIOR YEARS FOR TAX PURPOSES.
PART XI, LINE 2D - OTHER ADJUSTMENTS:	SPECIAL EVENTS EXPENSE 138,823. EXPENSES NET WITH REVENUE 256,172. CHANGE IN VALUE OF DERIVATIVE INSTRUMENT 3,970,597. PERMANENTLY RESTRICTED CONTRIBUTIONS NET ASSETS RELEASED FROM RESTRICTIONS
PART XI, LINE 4B - OTHER ADJUSTMENTS:	BAD DEBT EXPENSE 55,048,897. LOSS ON EXTINGUISHMENT ON DEBT 422,022.
PART XII, LINE 2D - OTHER ADJUSTMENTS:	EXPENSES NET WITH REVENUE 256,172. SPECIAL EVENT EXPENSE 138,823.
PART XII, LINE 4B - OTHER ADJUSTMENTS:	BAD DEBT EXPENSE 55,048,897.

Schedule D (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE G (Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information Regarding
Fundraising or Gaming Activities

Complete if the organization answered "Yes" on Form 990, Part IV, lines 17, 18, or 19, or if the organization entered more than $15,000 on Form 990-EZ, line 6a. right arrow

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

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization
UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Part I

Fundraising Activities. Complete if the organization answered "Yes" on Form 990, Part IV, line 17.

Form 990-EZ filers are not required to complete this part.

Indicate whether the organization raised funds through any of the following activities. Check all that apply.

a	Mail solicitations	e	Solicitation of non-government grants
b	Internet and email solicitations	f	Solicitation of government grants
c	Phone solicitations	g	Special fundraising events
d	In-person solicitations

Did the organization have a written or oral agreement with any individual (including officers, directors, trustees

or key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services?

YesNo

If "Yes," list the ten highest paid individuals or entities (fundraisers) pursuant to agreements under which the fundraiser is
to be compensated at least $5,000 by the organization.

(i) Name and address of individual or entity (fundraiser)	(iii) Did fundraiser have custody or control of contributions?
	Yes	No










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

List all states in which the organization is registered or licensed to solicit contributions or has been notified it is exempt from registration or licensing.

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

Cat. No. 50083H

Schedule G (Form 990 or 990-EZ) 2015

Page 2

Part II

Fundraising Events. Complete if the organization answered "Yes" on Form 990, Part IV, line 18, or reported more than $15,000 of fundraising event contributions and gross income on Form 990-EZ, lines 1 and 6b. List events with gross receipts greater than $5,000.

		(a) Event #1 TEE UP FOR TRAUMA (event type)	(b) Event #2 BLACKBERRY WINE EVENT (event type)	(d) Total events (add col. (a) through col. (c))
1	Gross receipts . . . . .	114,000	136,196	250,196
2	Less: Contributions . . . .	114,000	136,196	250,196
3	Gross income (line 1 minus line 2) . . . . . .

4	Cash prizes . . . . .
5	Noncash prizes . . . .
6	Rent/facility costs . . . .
7	Food and beverages . . .
8	Entertainment . . . .
9	Other direct expenses . . .	48,352	90,471	138,823
10	Direct expense summary. Add lines 4 through 9 in column (d) . . . . . . . . . .			138,823
11	Net income summary. Subtract line 10 from line 3, column (d). . . . . . . . . .			-138,823

Part III

Gaming. Complete if the organization answered "Yes" on Form 990, Part IV, line 19, or reported more than $15,000 on Form 990-EZ, line 6a.

		(a) Bingo	(b) Pull tabs/Instant bingo/progressive bingo	(c) Other gaming	(d) Total gaming (add col.(a) through col.(c))
1	Gross revenue . . . . .

2	Cash prizes . . . . .
3	Noncash prizes . . . .
4	Rent/facility costs . . . .
5	Other direct expenses . . .	48,352	90,471	138,823

Volunteer labor . . . .

	Yes %
	No

	Yes %
	No

	Yes %
	No

Direct expense summary. Add lines 2 through 5 in column (d) . . . . . . . . . . right arrow

Net gaming income summary. Subtract line 7 from line 1, column (d). . . . . . . . . right arrow

Enter the state(s) in which the organization conducts gaming activities:

Is the organization licensed to conduct gaming activities in each of these states? . . . . . . . .

YesNo

If "No," explain:

10a

Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? . . .

YesNo

If "Yes," explain:

Schedule G (Form 990 or 990-EZ) 2015

Page 3

Does the organization conduct gaming activities with nonmembers? . . . . . . . . . . .

YesNo

Is the organization a grantor, beneficiary or trustee of a trust or a member of a partnership or other entity

formed to administer charitable gaming? . . . . . . . . . . . . . . . . .

YesNo

Indicate the percentage of gaming activity conducted in:

The organization's facility . . . . . . . . . . . . . . . . . .

13a

An outside facility . . . . . . . . . . . . . . . . . . . .

13b

Enter the name and address of the person who prepares the organization's gaming/special events books and records:

Name

Address

15a

Does the organization have a contract with a third party from whom the organization receives gaming

revenue? . . . . . . . . . . . . . . . . . . . . . . . .

YesNo

If "Yes," enter the amount of gaming revenue received by the organization right arrow

$ and the

amount of gaming revenue retained by the third party right arrow

$ .

If "Yes," enter name and address of the third party:

Name

Address

Gaming manager information:

Name

Gaming manager compensation right arrow

Description of services provided right arrow

Director/officer Employee Independent contractor

Mandatory distributions:

Is the organization required under state law to make charitable distributions from the gaming proceeds to

retain the state gaming license? . . . . . . . . . . . . . . . . . . .

YesNo

Enter the amount of distributions required under state law distributed to other exempt organizations or spent

in the organization's own exempt activities during the tax year right arrow

Part IV

Supplemental Information. Provide the explanations required by Part I, line 2b, columns (iii) and (v); and Part III, lines 9, 9b, 10b, 15b, 15c, 16, and 17b, as applicable. Also complete this part to provide any additional information (see instructions).

Return Reference	Explanation

Schedule G (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Part I

Financial Assistance and Certain Other Community Benefits at Cost

Yes

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

Yes

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

Yes

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

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

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

Did the organization use Federal Poverty Guidelines (FPG) as a factor in determining eligibility for providing free care?

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

Yes

100% 150% 200% Other %

Did the organization use FPG as a factor in determining eligibility for providing discounted care? If "Yes," indicate

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

Yes

200% 250% 300% 350% 400% Other %

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

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

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) . . .	20,083,140		20,083,140	2.640 %
b	Medicaid (from Worksheet 3, column a) . . . . .
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .	11,217,661	6,295,802	4,921,859	0.650 %
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	31,300,801	6,295,802	25,004,999	3.290 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).	381,168		381,168	0.050 %
f	Health professions education (from Worksheet 5) . . .	17,785,183		17,785,183	2.340 %
g	Subsidized health services (from Worksheet 6) . . . .
h	Research (from Worksheet 7) .	157,955		157,955	0.020 %
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .	248,085		248,085	0.030 %
j	Total. Other Benefits . .	18,572,391		18,572,391	2.440 %
k	Total. Add lines 7d and 7j .	49,873,192	6,295,802	43,577,390	5.730 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat. No. 50192T Schedule H (Form 990) 2015

Schedule H (Form 990) 2015

Page

Part II

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

		(c) Total community building expense	(e) Net community building expense	(f) Percent of total expense
1	Physical improvements and housing
2	Economic development
3	Community support	2,038	2,038	0 %
4	Environmental improvements
5	Leadership development and training for community members	43,000	43,000	0.010 %
6	Coalition building	11,871	11,871	0 %
7	Community health improvement advocacy	338,818	338,818	0.040 %
8	Workforce development	2,540	2,540	0 %
9	Other
10	Total	398,267	398,267	0.050 %

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

11,338,266

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. ......

8,200,000

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).....

253,124,731

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

255,006,598

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

-1,881,867

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

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

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

Schedule H (Form 990) 2015

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?1 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)
1	UNIVERSITY HEALTH SYSTEM 9000 EXECUTIVE PARK DRIVE BLDG D-240 KNOXVILLE,TN37923 WWW.UTMEDICALCENTER.ORG	X	X	X	X	X

Schedule H (Form 990) 2015

Page 4

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)

	UNIVERSITY HEALTH SYSTEM INC
Name of hospital facility or letter of facility reporting group

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

Yes

Community Health Needs Assessment

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

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

During the tax year or either of the two immediately preceding tax years, did the hospital facility conduct a community health needs assessment (CHNA)? If "No," skip to line 12......................

Yes

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

A definition of the community served by the hospital facility

Demographics of the community

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

How data was obtained

The significant health needs of the community

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

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

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

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

Other (describe in Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 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 Section C how the hospital facility took into account input from persons who represent the community, and identify the persons the hospital facility consulted .................

Yes

6 a

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

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

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): SEE DISCLOSURE

Other website (list url): WWW.HOSPITALALLIANCETN.COM

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

Other (describe in Section C)

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

Yes

Indicate the tax year the hospital facility last adopted an implementation strategy: 20 13

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

Yes

If "Yes" (list url): SEE DISCLOSURE

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

10b

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

12a

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

12a

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

12b

If "Yes" on line 12b, what is the total amount of section 4959 excise tax the organization reported on Form 4720 for all of its hospital facilities? $

Schedule H (Form 990) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	UNIVERSITY HEALTH SYSTEM INC
Name of hospital facility or letter of facility reporting group

Yes

Did the hospital facility have in place during the tax year a written financial assistance policy that:

Explained eligibility criteria for financial assistance, and whether such assistance included free or discounted care?

Yes

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

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.000000000000% and FPG family income limit for eligibility for discounted care of 300.000000000000%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

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

Yes

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

Yes

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

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

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

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

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

Other (describe in Section C)

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

Yes

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

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

SEE DISCLOSURE

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

SEE DISCLOSURE

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

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

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

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

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

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

Other (describe in Section C)

Billing and Collections

Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financial assistance policy (FAP) that explained all of the actions the hospital facility or other authorized party may take upon non-payment?..................................

Yes

Check all of the following actions against an individual that were permitted under the hospital facility's policies during the tax year before making reasonable efforts to determine the individual’s eligibility under the facility’s FAP:

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2015

Page 6

Part VFacility Information (continued)

	UNIVERSITY HEALTH SYSTEM INC
Name of hospital facility or letter of facility reporting group

Yes

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

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 19. (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

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

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

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

Yes

If "No," indicate why:

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

The hospital facility’s policy was not in writing

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

Other (describe in Section C)

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

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

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

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

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

Other (describe in Section C)

During the tax year, did the hospital facility charge any FAP-eligible individual to whom the hospital facility provided emergency or other medically necessary services more than the amounts generally billed to individuals who had insurance covering such care? ...............................

If "Yes," explain in Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2015

Page 7

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
UNIVERSITY HEALTH SYSTEM, INC.	PART V, SECTION B, LINE 5: UTMC USES MULTIPLE COMMUNITY STAKEHOLDER LISTENING POSTS SUCH AS MARKET DATA, STAKEHOLDER PLATFORMS SUCH AS FOCUS GROUPS, SURVEYING IN OUR 21 COUNTY SERVICE AREA AND DATA COLLECTED DURING COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) FROM KNOX COUNTY.IN COLLABORATION WITH OUR LOCAL COUNTY HEALTH DEPARTMENT AND COMMUNITY RESOURCE PROGRAMS, A COLLABORATIVE WAS FORMED TO BRING TOGETHER HEALTH CARE PROVIDERS AND ORGANIZATIONS THAT MAKE UP OUR LOCAL PUBLIC HEALTH SYSTEM AND SERVES TO GUIDE OUR COMMUNITY TO IDENTIFY AND TAKE ACTION ON PRIORITY HEALTH ISSUES.
UNIVERSITY HEALTH SYSTEM, INC.	PART V, SECTION B, LINE 6B: MULTIPLE ORGANIZATIONS PARTICIPATED IN THE CHNA PROCESS. MAJOR PARTICIPANTS INCLUDED CHEROKEE HEALTH SYSTEM, RURAL METRO EMS, KNOX COUNTY OFFICE ON AGING, KNOX COUNTY HEALTH DEPARTMENT, KNOXVILLE AREA RESCUE MISSION, UNIVERSITY OF TENNESSEE AG EXTENSION, INTERFAITH HEALTH CLINIC, AND UNIVERSITY OF TENNESSEE GRADUATE SCHOOL OF MEDICINE.
UNIVERSITY HEALTH SYSTEM, INC.	PART V, SECTION B, LINE 11: UTMC IDENTIFIES ITS KEY COMMUNITIES AND DETERMINES AREAS FOR ORGANIZATIONAL INVOLVEMENT BY THE COMMUNITY HEALTH ADVISORY COMMITTEE (CHAC) AND UTMC TEAM MEMBER ANALYSIS OF STATE, LOCAL, AND REGIONAL HEALTH STATISTICAL DATA. UTMC HAS MANY PROGRAMS AND PARTNERSHIPS IN PLACE TO SUPPORT AND BENEFIT HIGH PRIORITY AND KEY COMMUNITIES WHICH INCLUDES: UTMC'S HEALTHY LIVING KITCHEN PROVIDES NUTRITIONALLY BASED EDUCATION CLASSES AND TEACHES INDIVIDUALS HOW TO COOK HEALTHY TO IMPROVE HEALTH STATUS AND MANAGE DIETS WHICH LESSENS IMPACT CHRONIC DISEASE, SUCH AS DIABETES AND CARDIOVASCULAR DISORDERS. COMMUNITY AND WORKSITE BASED HEALTH SCREENINGS AND EDUCATION FOR CANCER, DIABETES, HYPERTENSION, OBESITY, AND HYPERLIPIDEMIA. RESPIRATORY THERAPY PARTNERS WITH COORDINATED SCHOOL HEALTH STAFF TO IMPLEMENT SMOKING CESSATION AND PREVENTION PROGRAMS TO MIDDLE SCHOOL AGED CHILDREN. UTMC BREAST HEALTH OUTREACH PROGRAM (BHOP) WHICH PROVIDES MOBILE BREAST SCREENINGS TO DISADVANTAGED POPULATIONS THROUGH A COLLABORATIVE PARTNERSHIP EFFORT WITH SUSAN G. KOMEN AND AVON FOUNDATIONS. UTMC CANCER INSTITUTE PROVIDES PROSTATE AND SKIN CANCER EDUCATION AND SCREENINGS. REGIONAL INFANT MORTALITY REDUCTION TASK FORCE WHICH IS COMPOSED OF UTMC TEAM MEMBERS, PUBLIC HEALTH ENTITIES, AND COMMUNITY PARTNERS ARE CWORKING ON INITIATIVES TO DECREASE DEATHS RELATED TO SIDS AND BIRTH DEFECTS AND NEONATAL ABSTINENCE SYNDROME. IMPROVED ACCESS TO CARE HAS BEEN ACHIEVED THROUGH PLACING SPECIALTY CARE SERVICES THROUGHOUT OUR REGION FOCUSED ON PRIMARY CARE AND SPECIALTY CARE INITIATIVES. THE COMMUNITY MEMBERS POINTED TO MENTAL HEALTH SERVICES AS A PRIORITY UNMET NEED, AND POINTED TO THE PHYSICAL BLIGHT OF THE COMMUNITY AS A MAJOR PROBLEM. THE COMBINATION OF DATA, MAPPING TECHNOLOGY, AND COMMUNITY INPUT PROVIDED A BASIS FOR DIALOGUE WITH CITY AND LOCAL GOVERNMENT OFFICIALS, WHO USED EXISTING FUNDS TO RID THE COMMUNITY OF ABANDONED HOMES AND TO REDIRECT THOSE PROPERTIES TO MORE EFFECTIVE AND FUNCTIONAL USE. THIS EXAMPLE HIGHLIGHTS THE POTENTIAL RESULTS OF AN APPROACH TO COMMUNITY BENEFIT PROGRAMMING THAT COMBINES THE USE OF DATA, THE LEVERAGING OF RESOURCES, AND THE DIRECT ENGAGEMENT OF COMMUNITY MEMBEA MENTAL HEALTH TASK FORCE IS CONTINUING EFFORTS TO COLLECT DATA AT THE COMMUNITY LEVEL TO EVALUATE THE IMPACT OF LACK OF OF RESOURCESD TO CARE FOR MENTAL HEALTH NEEDS AND DECREASE THE IMPACT OF OVERCROAWDING OF OUR EMERGENCY DEPARTMENTS IN OUR COMMUNITY.
UNIVERSITY HEALTH SYSTEM, INC.	PART V, SECTION B, LINE 20E: PATIENTS RECEIVE PRINTED STATEMENTS WHICH INCLUDE REFERENCES TO THE FINANCIAL ASSISTANCE POLICY.
UNIVERSITY HEALTH SYSTEM, INC.	PART V, SECTION B, LINE 22D: THE STATE OF TENNESSE ALLOWS A HOSPITAL TO CHARGE NO MORE THAN 185% OF THE MOST RECENTLY SETTLED COST TO CHARGE RATIO IN THE MEDICARE COST REPORT. UHS AUTOMATICALLY EXTENDS A 50% DISCOUNT TO SELF-PAYING PATIENTS. THIS 50% DISCOUNT COMPLIES WITH STATE REGULATIONS.
SCHEDULE H, PART V, FINANCIAL ASSISTANCE POLICY WEBSITES	FINANCIAL ASSISTANCE POLICY URLHTTP://WWW.UTMEDICALCENTER.ORG/PATIENTS-VISITORS/GOING-HOME/INSURANCE-AND-BILLING/FINANCIAL-ASSISTANCE/FINANCIAL ASSISTANCE APPLICATION URLHTTP://WWW.UTMEDICALCENTER.ORG/LIB/FILE/MANAGER/PAGES/PATIENTS_AND_VISITORS/LETTER__GUIDELINES_FINANCIALASSISTANCE_APPLICATION_2015.PDFPLAIN LANGUAGE SUMMARY URLHTTPS://UTMEDICALCENTER.PATIENTCOMPASS.COM/HC/GUARANTOR/PREPAREBILLINGOPTION2.DO
PART V, SECTION B, CHNA WEBSITE	HTTP://WWW.UTMEDICALCENTER.ORG/ABOUT-US/COMMUNITY-BENEFIT/
PART V, SECTION B, LINE 10A:	HTTP://WWW.UTMEDICALCENTER.ORG/LIB/FILE/MANAGER/PAGES/ABOUT-US/COMMUNITY_BENEFIT/COMMUNITY_NEEDS_ASSESSMENT_2012-2015_3.PDF

Schedule H (Form 990) 2015

Page 8

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?
Name and address		Type of Facility (describe)
1
2
3
4
5
6
7
8
9
10

Schedule H (Form 990) 2015

Page 9

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
PART I, LINE 7:	COST IS DERIVED FROM THE ACTUAL EXPENSE DATA ACCUMULATED WITHIN THE UNIVERSITY HEALTH SYSTEM, INC. ("UHS") GENERAL LEDGER WHICH ADDRESSES ALL PATIENT SEGMENTS (INPATIENT, OUTPATIENT, EMERGENCY ROOM, PRIVATE INSURANCE, MEDICAID, MEDICARE, UNINSURED, AND SELF-PAY). UHS ALLOCATES THOSE EXPENSES TO ALL PATIENT SEGMENTS AT THE PROCEDURE LEVEL BASED ON A COST TO CHARGE RATIO AND AGGREGATES THE EXPENSES AT THE PATIENT LEVEL.
PART I, LINE 7, COLUMN (F):	THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 55,048,897.
PART II, COMMUNITY BUILDING ACTIVITIES:	THE ACTIVITIES REPORT IN PART II SEEK TO ACHIEVE SPECIFICED OBJECTIVES, INCLUDING: IMPROVING ACCESS TO HEALTH SERVICES, ENHANCING PUBLIC HEALTH, AND RELIEF OF GOVERNMENT BURDEN. THE ACTIVITIES ARE AVAILABLE TO THE GENERAL PUBLIC, FOCUSING ON LOW-INCOME CONSUMERS.
PART III, LINE 4:	TO DETERMINE THE AMOUNTS REPORTED IN PART III, LINES 2 AND 3, UHS USES ACTUAL EXPENSE DATA ACCUMULATED BY PATIENT WITHIN THE TRENDSTAR SYSTEM BASED ON A COST TO CHARGE RATIO.THE ESTIMATED AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER UHS'S CHARITY CARE POLICY CONSISTS OF ALL BAD DEBT ACCOUNTS WHEREBY THE PATIENTS:1. DID NOT FOLLOW THROUGH WITH THE APPROPRIATE TNCARE OR CHARITY CARE APPLICATIONS (IF THEY FOLLOWED THROUGH CHARITY MAY HAVE BEEN GRANTED).2. HAD TNCARE COVERAGE BUT NOT AT THE TIME OF SERVICE. (A MAJORITY WERE PATIENTS DISRENROLLED BY THE TNCARE PROGRAM. THESE PATIENTS NEVER FOLLOWED THROUGH WITH REAPPLYING FOR TNCARE OR CHARITY CARE).3. LIABILITY AMOUNTS REMAINED UNPAID AFTER THEIR LOCAL GOVERNMENTAL ASSISTANCE PROGRAM PAID AND THEY NEVER FOLLOWED THROUGH WITH CHARITY APPLICATION.THE TEXT OF THE UHS AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS READS: "NET PATIENT SERVICE REVENUE IS REPORTED AT ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD-PARTY PAYORS, AND OTHERS FOR SERVICES RENDERED AND INCLUDES ESTIMATED RETROACTIVE REVENUE ADJUSTMENTS DUE TO FUTURE AUDITS, REVIEWS, AND INVESTIGATIONS. RETROACTIVE ADJUSTMENTS ARE CONSIDERED IN THE RECOGNITION OF REVENUE ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED, AND SUCH AMOUNTS ARE ADJUSTED IN FUTURE PERIODS AS ADJUSTMENTS BECOME KNOWN OR AS YEARS ARE NO LONGER SUBJECT TO SUCH AUDITS, REVIEWS, AND INVESTIGATIONS. ON THE BASIS OF HISTORICAL EXPERIENCE, A SIGNIFICANT PORTION OF UHS' UNINSURED PATIENTS WILL BE UNABLE OR UNWILLING TO PAY FOR THE SERVICES PROVIDED. THEREFORE, UHS RECORDS A SIGNIFICANT PROVISION FOR DOUBTFUL ACCOUNTS RELATED TO UNINSURED PATIENTS. THIS PROVISION FOR DOUBTFUL ACCOUNTS IS PRESENTED ON THE CONSOLIDATED STATEMENTS OF OPERATIONS AS A COMPONENT OF NET PATIENT REVENUE."UHS PROVIDES CARE TO PATIENTS WHO MEET CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. UHS DOES NOT REPORT AS NET REVENUE THE CHARGES THAT QUALIFY AS CHARITY CARE BECAUSE UHS DOES NOT PURSUE COLLECTION OF THOSE AMOUNTS.
PART III, LINE 8:	THE MEDICARE ALLOWABLE COST REPORTED IN THE UHS MEDICARE COST REPORT, AS REFLECTED IN THE AMOUNT REPORTED IN PART III, LINE 6, IS DERIVED FROM THE ACTUAL EXPENSE DATA FROM THE UHS GENERAL LEDGER. UHS ALLOCATES THOSE EXPENSES TO PATIENTS AT THE PROCEDURE LEVEL BASED ON A COST TO CHARGE RATIO.THE SHORTFALL OF $1,881,697 AS REPORTED IN PART III, LINE 7, SHOULD BE TREATED AS A COMMUNITY BENEFIT BECAUSE, ABSENT THE MEDICARE PROGRAM, IT IS LIKELY MANY OF THE INDIVIDUALS WOULD QUALITY FOR CHARITY CARE OR OTHER NEEDS-BASED GOVERNMENT PROGRAMS. BY ACCEPTING PAYMENT BELOW COST TO TREAT THESE INDIVIDUSALS, THE BURDENS OF GOVERNMENT ARE RELIEVED WITH RESPECT TO THESE INDIVIDUALS. IRS REVENUE RULING 69-545, WHICH ESTABLISHED THE COMMUNITY BENEFIT STANDARD FOR NONPROFIT HOSPITALS, STATES THAT IF A HOSPTIAL SERVES PATIENTS WITH GOVERNMENT HEALTH BENEFITS, INCLUDING MEDICARE, THEN THIS IS AN INDICATION THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. ALSO, THERE IS A SIGNIFICANT POSSIBILITY THAT CONTINUED REDUCTION IN REIMBURSEMENT MAY ACTUALLY CREATE DIFFICULTIES IN ACCESS FOR THESE INDIVIDUALS, AND THE AMOUNT SPENT TO COVER THE MEDICARE SHORTALL IS MONEY NOT AVAILABLE TO COVER CHARITY CARE AND OTHER COMMUNITY BENEFIT NEEDS.
PART III, LINE 9B:	IT IS THE POLICY OF UHS TO PURSUE COLLECTION OF PATIENT BALANCES FROM PATIENTS WHO HAVE THE ABILITY TO PAY FOR THESE SERVICES. IF ADDITIONAL ASSISTANCE IS APPROVED, THE PATIENT ACCOUNT REPRESENTATIVE WILL SUBMIT A LETTER TO THE PATIENT TO INFORM HIM/HER OF APPROVAL OR PROVIDE OTHER INSTRUCTIONS. IF APPROVED FOR AN ADJUSTMENT, THE PATIENT ACCOUNT REPRESENTATIVE WILL SUBMIT THE INFORMATION TO PATIENT ACCOUNTS, WHO WILL PROCESS THE WRITE-OFF OR OTHER DISCOUNTS. THE ORGANIZATION'S COLLECTION POLICY CONTAINS PROVISIONS ON THE COLLECTION PRACTIES TO BE FOLLOWED FOR PATIENTS WHO ARE KNOWN TO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE. THE ORGANIZATION MAINTAINS COLLECTION PRACTIES THAT APPLY TO ALL PATIENTS, CHARITY CARE AND NON-CHARITY CARE PATIENTS, CONSITENTLY AND FAIRLY REGARDLESS OF INSURANCE STATUS. THE UNIVERSITY OF TENNESSEE MEDICAL CENTER ("MEDICAL CENTER"), AS A TRAUMA CENTER, OFTEN TREATS PATIENTS WHO HAVE HAD AN UNPLANNED CATASTROPHIC HEALTHCARE OCCURRENCE. PATIENTS MAY HAVE THE MEANS TO PAY ONLY A PORTION OF THE ENTIRE COST. ALLOWANCES ARE MADE TO ADJUST THEIR HIGH BALANCES TO A MORE MANAGEABLE PAYOFF AMOUNT. WE UTILIZE AN INCOME CRITERION TO ADJUST A SIGNIFICANT PORTION OF THE BALANCE AS A CHARITY DISCOUNT. PATIENT ACCOUNT REPRESENTATIVES DILIGENTLY WORK WITH PATIENTS AND EVALUATE NEW INFORMATION LEARNED DURING THE COLLECTION PROCESS TO DETERMINE IF COLLECTION ACTIVITIES SHOULD BE CEASED OR IF THE PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE.
PART VI, LINE 2:	UHS SUPPORTS AND STRENGTHENS OUR KEY COMMUNITIES THROUGH DELIVERING NEEDED SERVICES BY LEADING AND PARTNERING WITH OTHER ORGANIZATIONS TO POSITIVELY IMPACT HIGH PRIORITY HEALTH ISSUES. THE COMMUNITY HEALTH ADVISORY COMMITTEE ("CHAS") ANALYZES MULTIPLE SOURCES OF HEALTH STATUS, DEMOGRAPHIC, AND SOCIOECONOMIC INFORMATION TO IDENTIFY KEY COMMUNITIES, PRIORITIZE SPECIFIC POPULATION NEEDS, AND DETERMINE THE FOCUS FOR UHS INVOLVEMENT. THE CHAC REVIEWS AND FORMULATES RECOMMENDATIONS FOR ORGANIZATIONAL INVOLVEMENT FOR IDENTIFIED NEEDS. THE CHAC TEAM LEVERAGES OUR CORE COMPETENCIES TO DESIGN AND IMPLEMENT STRATEGIC INITIATIVES AND ACTION PLANS TO ADDRESS THESE PRIORITIES. THE CHAC MONITORS PROGRESS THROUGH ACTION PLANS AND PERFORMANCE MEASURES AND REPORTS RESULTS QUARTERLY TO SENIOR LEADERS AND TO THE CHAC.IN COLLBORATION WITH OUR LOCAL COUNTY HEALTH DEPARTMENT AND COMMUNITY RESOURCE PROGRAMS, A COLLABORATION WAS FORMED TO BRING TOGETHER HEALTH CARE PROVDERS AND ORGANIZATIONS THAT MAKE UP OUR LOCAL PUBLIC HEALTH SYSTEM AND SERVICES TO GUIDE OUR COMMUNITY IDENTIFY AND TAKE ACTION ON PRIORITY HEALTH ISSUES. TOGETHER HEALTHY KNOX PROVIDES A FRAMEWORK FOR LOCAL PROGRAMMATIC AND FISCAL DECISION-MAKING AND INFORMS THE DEVELOPMENT OF A STRATEGIC COMMUNITY HEALTH IMPROVEMENT PLAN. UHS UTILIZES DATA OBTAINED DURING THIS ASSESSMENT INITIATIVE TO IMPROVE DELIVERY OF SELECT SERVICES TO MEET THE NEEDS OF THE COMMUNITY IT SERVES. UHS' IMPACT OF SUPPORT IS DETERMINED THROUGH A COMMUNITY BENEFIT DATABASE ANALYSIS OF DISBURSEMENTS AND ANNUAL PROCESS REVIEW.
PART VI, LINE 3:	TO COMMUNICATE THE HOSPITAL'S FINANCIAL POLICY TO THE PATIENT, THE "UNDERSTANDING YOUR HOSPITAL BILL" BROCHURE IS MADE AVAILABLE AT ALL POINTS OF REGISTRATION (INTAKE AND PROCESS) AND FINANCIAL COUNSELORS ALONG WITH CUSTOMER SERVICE REPRESENTATIVES ARE AVAILABLE TO DISCUSS SPECIFIC CASES. THE BROCHURE INSTRUCTS THE PATIENT TO CONTACT THE FINANCIAL COUNSELOR OR PATIENT ACCOUNTS FOR MORE INFORMATION ON CHARITY AND OTHER APPLICABLE DISCOUNTS. FINANCIAL COUNSELORS VISIT PATIENT ROOMS WHEN POSSIBLE TO EXPLAIN THE UHS BILLING PROCESS, PAYMENT PLANS AND SCREENS FOR ASSISTANCE SUCH AS TENNCARE, VICTIM OF CRIME OR CHARITY WRITE-OFF. FINANCIAL COUNSELORS SCREEN ADMISSIONS FOR TRUE HARDSHIP CASES THAT SHOULD BE REVIEWED FOR CHARITY AND CLEARLY STATE THE ELIGIBILITY REQUIREMENTS TO THE PATIENT. THE ORGANIZATION'S CHARITY CARE POLICY (A PATIENT-FRIENDLY SUMMARY) AND FINANCIAL ASSISTANCE CONTACT INFORMATION IS POSTED IN THE ADMISSIONS AREAS, EMERGENCY AREAS, AND OTHER AREAS OF THE ORGANIZATION'S FACILITIES IN WHICH ELIGIBLE PATIENTS MAY BE PRESENT, AS WELL AS ON OUR WEBSITE. POLICIES ARE ALSO POSTED IN SPANISH DUE TO THE HIGH VOLUMES OF SPANISH-SPEAKING PATIENTS. THE MAJORITY OF STAFF ASSOCIATED WITH PATIENT CONTACT ARE KNOWLEDGEABLE ABOUT THE CHARITY CARE POLICY.
PART VI, LINE 4:	UHS' KEY COMMUNITIES ARE DEFINED BY OUR DEMOGRAPHIC LOCATIONS WITHIN A 21 COUNTY REGIONAL SERVICE AREA. KNOX COUNTY IS CONSIDERED OUR PRIMARY SERVICE AREA WHERE OUR ACADEMIC MEDICAL CENTER RESIDES. SURROUNDING COUNTIES, SUCH AS ANDERSON, SEVIER, BLOUNT, LOUDON, JEFFERSON, AND HAMBLEN COUNTIES ARE SUPPORTED BY OUR NETWORK OF PRIMARY CARE PHYSICIANS, SPECIALISTS, AND OTHER CLINICAL SERVICES. UHS' KEY COMMUNITIES INCLUDE THE UNDERSERVED AND DISADVANTAGED POPULATIONS, PRIORITIZED BY THOSE WITH THE GREATEST NEED FOR SERVICES.UHS IDENTIFIES ITS KEY COMMUNITIES AND DETERMINES AREAS FOR ORGANIZATIONAL INVOLVEMENT BY THE CHAC AND UHS TEAM MEMBER ANALYSIS OF STATE, LOCAL, AND REGIONAL HEALTH STATISTICAL DATA. UHS HAS MANY PROGRAMS AND PARTNERSHIPS IN PLACE TO SUPPORT AND BENEFIT HIGH PRIORITY AND KEY COMMUNITEIS WHICH INCLUDES:-HEALTH LIVING KITCHEN PROVIDES NUTRIONAALLY BASED EDUCATION CLASSES AND TEACHES INDIVIDUALS HOW TO COOK HEALTHY TO IMPROVE HEALTH STATUS AND MANAGE DIETS WHICH LESSENS THE IMPACT OF CHRONIC DISEASE, SUCH AS DIABETES AND CARDIOVASCULAR DISORDERS.-COMMUNITY AND WORKSITE BASED HEALTH SCREENINGS AND EDUCATION FOR CANCER, DIABETES, HYPERTENSION, OBESITY, AND HYPERLIPIDEMIA.-RESPIRATORY THERAPY PARTNERS WITH COORDINATED SCHOOL HEALTH STAFF TO IMPLEMENT SMOKING CESSATION AND PREVENTATION PROGRAMS TO MIDDLE SCHOOL AGED CHILDREN.-BREAST HEALTH OUTREACH PROGRAM (BHOP) WHICH PROVIDES MOBILE BREAST SCREENINGS TO DISADVANTAGED POPULATIONS THROUGH A COLLABORATIVE PARTNERSHIP EFFORT WITH SUSAN G. KOMEN AND AVON FOUNDATIONS.-CANCER INSTITUTE PROVIDES PROSTATE AND SKIN CANCER EDUCATION AND SCREENINGS.-REGIONAL INFANT MORTALITY REDUCTION TASK FORCE WHICH IS COMPOSED OF THE MEDICAL CENTER TEAM MEMBERS, PUBLIC HEALTH ENTITIES, AND COMMUNITY PARTNERS.
PART VI, LINE 5:	UHS USES MULTIPLE STAKEHOLDERS AND ATA TO SUPPORT SOCIETAL WELL-BEING FOR OUR COMMUNITY. OUR CORE COMPETENCIES ARE PARTNERING WITH COMMUNITY ORGANIZATIONS AND INNOVATION, WHILE ALSO CONTRIBUTING TO OUR ENVIRONMENT, SOCIAL, AND ECONOMIC SYSTEMS. UHS CONSIDERS ENVIRONMENTAL IMPACT IN PROJECT ANALYSIS AND DAILY OPERATIONS. SEVERAL STRATEGIES TO CONSERVE ENERGY AND RECYCLE PAPER ARE IMPLEMENTED AND EVIDENCED THROUGHOUT OUR CAMPUS AND DAILY ACTIVITIES.UHS ACTIVITY PARTICIPATES IN KNOXVILLE AREA PROJECT ACCESS ("KAPA"), AN INNOVATIVE COMMUNITY APPROACH THROUGH WHICH THE MEDICAL CENTER'S PHYSICIANS AND SPECIALISTS PROVIDE CARE FOR THOSE IN OUR SERVICE AREA WHO ARE WITHOUT THE ABILITY TO PAY. KAPA IS A PHYSICIAN-LED COMMUNITY EFFORT AND WAS CREATED AS A COMPREHENSIVE HEALTHCARE PLAN TO HELP PATIENTS WHO STRUGGLE EVERYDAY WITH THE CHALLNEGES OF POVERTY, HAVE NO ACCESS TO EMPLOYER-SPONSORED OR GOVERNMENT-SPONSORED INSURANCE PROGRAMS, AND HAVE AN INCOME OF 200% OF THE POVERTY LEVEL OR BELOW.THE INTERFAITH HEALTH CLINIC PROVIDES PRIMARY CARE SERVICES TO A SEGMENT OF THE COMMUNITY THAT IS IN NEED - THE WORKING UNINSURED. THEY SERVE THE NEEDS OF OUR RESIDENTS THAT DO NOT QUALIFY FOR TENNCARE AND CANNOT AFFORD TO PURCHASE PRIVATE HEALTH INSURANCE. UHS IS PROUD TO HAVE PARTNERED WITH INTERFAITH HEALTH CLINIC SINCE THE BEGINNING OF THIS INNOVATIVE COMMUNITY EFFORT WHICH BEGAN IN 1991. WE HAVE OFFERED OUR SUPPORT BOTH FINANCIALLY AND THROUGH GIFTS OF IN-KIND SERVICES.IN KEEPING WITH OUR MISSION TO SERVE THROUGH HEALING, EDUCATION, AND DISCOVERY, WE ALSO VALUE THE IMPORTANCE OF PREVENTION STRATEGIES TO IMPEDED CHRONIC DISEASE DEVELOPMENT. UHS USES NATIONAL AND STATE HEALTH POLICY AND LOCAL COUNTY STATISTICAL DATA WHEN AVAILABLE TO IDENTIFY COMMUNITY SPECIFIC HEALTH PRIORITIES WITHIN THE REGION SUCH AS HIGH SMOKING LEVELS, CANCER RATES, HEART DISEASE, AND DIABETES. WE REVALIDATE OUR COMMUNITY INVOLVEMENT BASED ON MARKET INFORMATION, FOCUS GROUPS, STRATEGIC PLANNING PROCESS, AND COMMUNITY NEEDS ASSESSMENT TO ALIGN OUR CRITERIA THAT WILL BE USED TO SUPPORT OUR INVOLVEMENT. UTILIZING THE INFORMATION AND DATA COLLECTED FROM NUMEROUS SOURCES, UHS IDENTIFIES RESOURCES AND ORGANIZATONAL ALLIANCES LOCALLY TO FORM RESOURCE PARTNERSHIPS TO INITIATE A PROCESS TO ADDRESS THE PRIORITIES OF NEED. WE SOLICIT REQUESTS FROM SERVICE LINE LEADERS TO ENSURE THAT WE IDENTIFY WHAT WE AS AN ORGANIZATION DESIRE TO SUPPORT AND EVALUATE ADDITIONAL REQUEST FOR SUPPORT FROM THE COMMUNITY WHEN A NEED IS IDENTIFIED.THE MEDICAL CENTER HAS POSITIONED ITSELF TO IMPROVE THE OVERALL HEALTH OF THE COMMUNITIES WE SERVE BY OUR ORGANIZATIONAL STRUCTURE, SUBDIVISIONS OF RESPONSBILITY, AND ALIGNMENT OF OUR MISSION, VISION, AND VALUES, OUR CORE COMPETENCIES, OUR CENTS OF EXCELLENCE FOCUSED PRIORITIES, AND INTEGRATION OF OUR SUPPORT INTO THE COMMUNITY THROUGH COLLBORATION AND PARTNERSHIPS.SENIOR LEADERS AND TEAM MEMBERS CONTRIBUTE TO IMPROVING COMMUNITIES AND BUILDING COMMUNITY HEALTH BY ACTIVELY PARTICIPATING IN COMMUNITY SERVICE PROGRAMS AND PARTNERSHIPS. SENIOR LEADERS PERSONALLY SERVE ON COMMUNITY SERVICE BOARDS AND LEAD COLLABORATIVE PARTNERSHIP INITIATIVES INCLUDING GOVERNMENT, COMPETITORS, NOT-FOR PROFIT ORGANIZATIONS, AND FOUNDATION.ADDITIONALLY, PLEASE REFER TO THE STATEMENT OF COMMUNITY BENEFIT AS PROVIDED IN SCHEDULE O FOR FURTHER DOCUMENTATION REGARDING UHS' COMMITTMENT WITHIN ITS COMMUNITY.
PART VI, LINE 6:	UHS IS CURRENTLY AFFILIATED WITH EAST TENNESSEE CHILDREN'S HOSPITAL IN PROVIDING JOINT HEALTHCARE SERVICES FOR THE PEDIATRIC POPULATION OF OUR REGION. UHS PARTNERS WITH SEVERAL LOCAL ORGANIZATIONS IN SUPPORT OF CHILDREN'S HEALTH AND WELLBEING
PART VI, LINE 7, REPORTS FILED WITH STATES	TN

Schedule H (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

Complete if the organization answered "Yes," on 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

2015

Open to Public
Inspection

Name of the organization
UNIVERSITY HEALTH SYSTEM INC

Employer identification number
31-1626179

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 Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on 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 section if applicable	(d) Amount of cash grant	(e) Amount of non-cash assistance	(f) Method of valuation (book, FMV, appraisal, other)	(g) Description of non-cash assistance	(h) Purpose of grant or assistance

(1) AMERICAN CANCER SOCIETY 871 WEISGARGER RD KNOXVILLE,TN37909	64-0329009	501(C)(3)	11,000	GENERAL DONATION
(2) AMERICAN HEART ASSN 4708 PAPERMILL DR KNOXVILLE,TN37909	13-5613797	501(C)(3)	35,000	GENERAL DONATION
(3) CANCER SUPPORT COMMUNITY-EAST TENNESSEE 2230 SUTHERLAND AVE KNOXVILLE,TN37919	58-1846210	501(C)(3)	30,000	GENERAL DONATION
(4) EAST TENNESSEE FOUNDATION 625 MARKET STREET STE 1400 KNOXVILLE,TN37902	62-0807696	501(C)(3)	7,100	GENERAL DONATION
(5) EAST TN ECONOMIC DEVELOPMENT (ETEDA) 10215 TECHNOLOGY DR SUITE 202 KNOXVILLE,TN37932	62-1158958	501(C)(3)	18,000	GENERAL DONATION
(6) GREAT SMOKEY MOUNTAIN COUNCIL PO BOX 51885 KNOXVILLE,TN379501885	62-0476811	501(C)(3)	25,000	GENERAL DONATION
(7) INNOVATION VALLEY 17 MARKET SQUARE 201 KNOXVILLE,TN37902	26-2087582	501(C)(3)	20,000	GENERAL DONATION
(8) KNOX ACADEMY MEDICINE FOUNDATION 115 SUBURBAN RD KNOXVILLE,TN37923	62-0550978	501(C)(3)	10,000	GENERAL DONATION
(9) KNOXVILLE NEWS SENTINEL CHARITIES INC 2332 NEWS SENTINEL DRIVE KNOXVILLE,TN37921	51-0141541	501(C)(3)	22,800	GENERAL DONATION
(10) MARCH OF DIMES BIRTH DEF FND 322 NANCY LYNN LANE STE 11 KNOXVILLE,TN37919	13-1846366	501(C)(3)	10,000	GENERAL DONATION
(11) SUSAN G KOMEN FOUNDATION 5005 LBJ FREEWAY SUITE 250 DALLAS,TX752446100	75-1835298	501(C)(3)	25,000	GENERAL DONATION
(12) THE UNIVERSITY OF TENNESSEE 301 ANDY HOLT TOWER KNOXVILLE,TN37996	62-6001636	GOVT	41,000	GENERAL DONATION
(13) UNITED WAY GREATER KNOX INC 1301 HANNAH AVENUE KNOXVILLE,TN37921	62-0475748	501(C)(3)	85,500	GENERAL DONATION
(14) VARIETY OF EASTERN TENNESSEE 7132 REGAL LANE KNOXVILLE,TN37918	33-1025696	501(C)(3)	9,000	GENERAL DONATION
(15) LEADERSHIP KNOXVILLE INC PO BOX 326 KNOXVILLE,TN37901	62-1212211	501(C)(3)	5,000	GENERAL DONATION
(16) JDRF INTERNATIONAL 26 BROADWAY 14TH FLOOR NEW YORK,NY10004	23-1907729	501(C)(3)	7,500	GENERAL DONATION
(17) BOYS & GIRLS CLUB OF TN VALLEY 1100 MARION ST SUITE 100 KNOXVILLE,TN37921	62-0475743	501(C)(3)	5,000	GENERAL DONATION
(18) EMERALD YOUTH FOUNDATION 1718 NORTH CENTRAL STREET KNOXVILLE,TN37917	62-1474791	501(C)(3)	5,000	GENERAL DONATION
(19) KNXOVILLE MUSEUM OF ART 1050 WORLDS FAIR PARK DRIVE KNOXVILLE,TN37916	62-0677701	501(C)(3)	10,000	GENERAL DONATION
(20) KNOX COUNTY IMAGINATION LIBRARY 500 WEST CHURCH AVENUE KNOXVILLE,TN37902	62-0807696	501(C)(3)	5,000	GENERAL DONATION
(21) RANDOM ACTS OF FLOWERS PO BOX 27817 KNOXVILLE,TN379277817	26-3006360	501(C)(3)	10,000	GENERAL DONATION
(22) GREAT SMOKEY MOUNTAINS INSTITUTE AT TREAMONT 9275 TREMONT ROAD TOWNSEND,TN37882	62-1833479	501(C)(3)	5,000	GENERAL DONATION
(23) ALZHEIMER'S TENNESSEE INC 5801 KINGSTON PIKE KNOXVILLE,TN37919	62-1206312	501(C)(3)	5,500	GENERAL DONATION
(24) RONALD MCDONALD HOUSE 1705 W CLINCH AVENUE KNOXVILLE,TN37916	58-1510276	501(C)(3)	5,000	GENERAL DONATION
(25) HART TCI-III LLC 191 NORTH WACKER DRIVE SUITE 2500 CHICAGO,IL60606	77-0672767	501(C)(3)	5,000	GENERAL DONATION

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) 2015

Page 2

Part III

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

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

(1) MEDICAL EXPLORATIONS STIPENDS	7	7,000
(2) STEPHENS FUND	140	17,048
(3) MEN'S HEALTH CANCER FUND	161	1,610
(4) CHAPLAIN'S CRISIS FUND	2867	26,445
(4)
(5)
(6)
(7)

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

PART I, LINE 2:

PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS: THE ORGANIZATION HAS GUIDELINES IN PLACE THAT ARE TO BE USED IN REVIEWING THE ELIGIBILITY OF GRANTEES. FOR EMPLOYEE EDUCATION ASSISTANCE SCHOLARSHIPS, APPLICANTS MUST SUBMIT RECEIPTS FOR EXPENDITURES. FOR OTHER GRANTS, VARIOUS PROCEDURES ARE IN PLACE DEPENDING ON GRANT TYPE, INCLUDING REQUIREMENTS TO SUBMIT APPLICATIONS FOR REVIEW AND APPROVAL. ALL GRANTS REQUIRE WRITTEN DOCUMENTATION AND APPROPRIATE LEVELS OF APPROVAL.

Schedule I (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

Complete if the organization answered "Yes" on Form 990, Part IV, line 23.
SchJMediumBullet

Attach to Form 990.
SchJMediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

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 on Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

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

Travel for companions Payments for business use of personal residence

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

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

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

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

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

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

Yes

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

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

Only 501(c)(3), 501(c)(4), and 501(c)(29) organizations must complete lines 5-9.

For persons listed on 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," on line 5a or 5b, describe in Part III.

For persons listed on 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," on line 6a or 6b, describe in Part III.

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

Yes

Were any amounts reported on 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" on 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) 2015

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

(A) Name and Title		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation in column(B) reported as deferred on 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)
1JOSEPH LANDSMANPRESIDENT & CEO	(i) (ii)	876,374 ------------- 0	343,980 ------------- 0	59,744 ------------- 0	248,419 ------------- 0	9,043 ------------- 0	1,537,560 ------------- 0	0 ------------- 0
2THOMAS FISHERSR VP & CFO	(i) (ii)	453,894 ------------- 0	114,750 ------------- 0	76,484 ------------- 0	107,691 ------------- 0	13,154 ------------- 0	765,973 ------------- 0	0 ------------- 0
3WILLIAM HALLSR VP & COO	(i) (ii)	456,254 ------------- 0	108,000 ------------- 0	29,612 ------------- 0	104,140 ------------- 0	11,659 ------------- 0	709,665 ------------- 0	0 ------------- 0
4JOHN LACEYSR VP & CMO	(i) (ii)	441,374 ------------- 0	85,200 ------------- 0	94,476 ------------- 0	100,630 ------------- 0	7,825 ------------- 0	729,505 ------------- 0	0 ------------- 0
5STEVEN ROSSSR VP	(i) (ii)	414,512 ------------- 0	82,170 ------------- 0	92,033 ------------- 0	94,854 ------------- 0	1,505 ------------- 0	685,074 ------------- 0	0 ------------- 0
6TERESA LEVEYSR VP	(i) (ii)	379,000 ------------- 0	69,600 ------------- 0	4,383 ------------- 0	81,183 ------------- 0	1,027 ------------- 0	535,193 ------------- 0	0 ------------- 0
7JANELL CECILSR VP & CNO	(i) (ii)	346,374 ------------- 0	67,300 ------------- 0	139,437 ------------- 0	82,392 ------------- 0	8,570 ------------- 0	644,073 ------------- 0	0 ------------- 0
8INGA HIMELRIGHTSR VP & CQO	(i) (ii)	387,447 ------------- 0	77,775 ------------- 0	1,728 ------------- 0	84,511 ------------- 0	6,044 ------------- 0	557,505 ------------- 0	0 ------------- 0
9JOHN BELLPHYSICIAN/MEDICAL DIRECTOR	(i) (ii)	690,098 ------------- 0	41,895 ------------- 0	79,409 ------------- 0	77,559 ------------- 0	1,138 ------------- 0	890,099 ------------- 0	0 ------------- 0
10BENNETT COXCHIEF GENERAL COUNSEL	(i) (ii)	350,598 ------------- 0	56,834 ------------- 0	20,933 ------------- 0	74,862 ------------- 0	1,412 ------------- 0	504,639 ------------- 0	0 ------------- 0
11ROBERT ELDERPHYSICIAN/MEDICAL DIRECTOR	(i) (ii)	431,598 ------------- 0	20,880 ------------- 0	130,918 ------------- 0	51,933 ------------- 0	1,138 ------------- 0	636,467 ------------- 0	0 ------------- 0
12KATHERINE BOYDCHIEF DEVELOPMENT OFFICER	(i) (ii)	208,789 ------------- 0	0 ------------- 0	426 ------------- 0	10,522 ------------- 0	3,997 ------------- 0	223,734 ------------- 0	0 ------------- 0
13RICHARD GIECEKCHIEF DEVELOPMENT OFFICER	(i) (ii)	394,203 ------------- 0	24,786 ------------- 0	25,312 ------------- 0	31,859 ------------- 0	4,096 ------------- 0	480,256 ------------- 0	0 ------------- 0
14DAVID ALJADIRPHYSICIAN ONCOLOGY	(i) (ii)	470,564 ------------- 0	378,407 ------------- 0	270 ------------- 0	85,368 ------------- 0	12,152 ------------- 0	946,761 ------------- 0	0 ------------- 0
15MICHAEL FREEMANPHYSICIAN VASCULAR	(i) (ii)	500,000 ------------- 0	584,823 ------------- 0	1,980 ------------- 0	108,680 ------------- 0	730 ------------- 0	1,196,213 ------------- 0	0 ------------- 0
16LARRY KILGOREPHYSICIAN GYN ONCOLOGY	(i) (ii)	830,349 ------------- 0	40,000 ------------- 0	295,101 ------------- 0	111,238 ------------- 0	1,174 ------------- 0	1,277,862 ------------- 0	0 ------------- 0
17OSCAR GRANDASPHYSICIAN VASCULAR	(i) (ii)	699,914 ------------- 0	482,016 ------------- 0	690 ------------- 0	120,777 ------------- 0	766 ------------- 0	1,304,163 ------------- 0	0 ------------- 0
18NATHAN SCHROCKPHYSICIAN ONCOLOGY	(i) (ii)	470,650 ------------- 0	391,963 ------------- 0	3,400 ------------- 0	86,889 ------------- 0	12,116 ------------- 0	965,018 ------------- 0	0 ------------- 0

Schedule J (Form 990) 2015

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

PART I, LINE 4B

THE FOLLOWING DISTRIBUTIONS ARE FROM A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN AND WERE INCLUDED IN TAXABLE INCOME DURING 2015 IN ACCORDANCE WITH PLAN DOCUMENTS. NAME AMOUNT JOHN BELL $ 64,309 KATHERINE BOYD 10,522 BENNETT COX 61,612 ROBERT ELDER 38,683 RICHARD GIECEK 18,609 JANELL CECIL 69,142 JERRY EPPS 13,640 THOMAS FISHER 94,441 WILLIAM HALL 90,890 INGA HIMELRIGHT 71,261 JOHN LACEY 87,380 JOSEPH LANDSMAN 235,169 TERESA LEVEY 67,933 STEVEN ROSS 81,604 DAVID ALJADIR 72,118 MICHAEL FREEMAN 95,430 OSCAR GRANDAS 107,527 LARRY KILGORE 97,988 NATHAN SCHROCK 73,639

PART I, LINE 7

THE SENIOR VP'S INCENTIVE PLAN IS CONTINGENT UPON TARGETS APPROVED BY THE CEO, WHICH INCLUDES ACHIEVEMENTS OF QUALITY, OPERATIONAL, FINANCIAL, AND STRATEGIC TARGETS. THE CEO DISCUSSES THE INCENTIVE PLAN WITH THE BOARD'S COMPENSATION COMMITTEE WITH BOARD APPROVAL REQUIRED OF THE PLAN. THE INCENTIVE PLAN WAS REVIEWED BY INTEGRATED HEALTHCARE STRATEGIES (IHS), A THIRD-PARTY COMPENSATION CONSULTANT. DATA COMPILED BY IHS IS USED FOR COMPARABILITY. COMPENSATION PAID TO BOARD MEMBERS, WHO ARE ALSO EMPLOYEES, IS PRIMARILY FOR PROFESSIONAL RESPONSIBILITIES AS PHYSICIANS OR ADMINISTRATORS. THE COMPENSATION PACKAGES OF THE CEO, OFFICERS, EMPLOYED PHYSICIAN BOARD MEMBERS, AND OTHER KEY EMPLOYEES ARE REVIEWED AND APPROVED BY THE ENTIRE BOARD OF DIRECTORS ANNUALLY. COMPENSATION IS DETERMINED BY THE HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS AND APPROVED BY THE HUMAN RESOURCES COMMITTEE AND THE FULL BOARD. THE BOARD MAINTAINS COMPARABILITY DATA FROM INDEPENDENT THIRD-PARTY COMPENSATION CONSULTANTS AND COMPENSATION DATA FROM SIMILARLY-SITUATED ORGANIZATIONS FOR FUNCTIONALLY COMPARABLE POSITIONS. THE BOARD ADHERES TO THE CONFLICT OF INTEREST POLICY AT ALL TIMES WITH REGARD TO APPROVAL OF COMPENSATION.

Schedule J (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990.
SchKMediumBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization
UNIVERSITY HEALTH SYSTEM INC

Employer identification number
31-1626179

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 HEALTH EDUCATIONAL AND HOUSING FACILITY BOARD OF THE COUNTY OF KNOX	62-1220275	49952MBU9	04-27-2007	236,534,376	REFINANCE THE ISSUERS 1999 BONDS AND FINANCE CERTAIN CAPITAL IMPROVEMENTS.		X		X		X
B	THE HEALTH EDUCATIONAL AND HOUSING FACILITY BOARD OF THE COUNTY OF KNOX	62-1220275		07-23-2014	10,000,000	ADDITIONS AND IMPROVEMENTS TO MEDICAL CENTER		X		X		X
C	THE HEALTH EDUCATIONAL AND HOUSING FACILITY BOARD OF THE COUNTY OF KNOX	62-1220275		06-25-2015	90,000,000	CURRENT REFUNDING AND CAPITAL PROJECT		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired ..................	32,345,000
2 Amount of bonds legally defeased ..............
3 Total proceeds of issue ..................	236,534,376		10,000,000		90,000,000
4 Gross proceeds in reserve funds .............
5 Capitalized interest from proceeds .............
6 Proceeds in refunding escrows ...............	161,918,145
7 Issuance costs from proceeds ...............	2,045,137				250,000
8 Credit enhancement from proceeds .............
9 Working capital expenditures from proceeds .............
10 Capital expenditures from proceeds .............	72,571,095		5,833,447		40,445,000
11 Other spent proceeds .............
12 Other unspent proceeds .............			4,166,553
13 Year of substantial completion .............	2010		2015		2015
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? ....		X		X		X
15 Were the bonds issued as part of an advance refunding issue? .....	X			X	X
16 Has the final allocation of proceeds been made? ..........	X			X	X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? ..................	X			X	X

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2015

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? .............		X		X		X
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property?
c Are there any research agreements that may result in private business use of bond-financed property? .............		X		X		X
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property?
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government ....	2.500 %		0 %		0 %
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government .........
6 Total of lines 4 and 5 .............	2.500 %		0 %		0 %
7 Does the bond issue meet the private security or payment test? ...		X		X		X
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?.............		X		X		X
b If "Yes" to line 8a, enter the percentage of bond-financed property sold or disposed of. ..
c If "Yes" to line 8a, was any remedial action taken pursuant to Regulations sections 1.141-12 and 1.145-2? .............
9 Has the organization established written procedures to ensure that all nonqualified bonds of the issue are remediated in accordance with the requirements under Regulations sections 1.141-12 and 1.145-2? ........		X		X		X

Part IV

Arbitrage

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

Schedule K (Form 990) 2015

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			X		X
b Name of provider ..........	DEPFABLB
c Term of GIC .........	200.0000000000 %
d Was the regulatory safe harbor for establishing the fair market value of the GIC satisfied? ........	X
6 Were any gross proceeds invested beyond an available temporary period?		X		X		X
7 Has the organization established written procedures to monitor the requirements of section 148? ...	X		X		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		X

Part VI

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

Return Reference	Explanation
DATE REBATE COMPUTATION PERFORMED	ISSUER NAME: THE HEALTH, EDUCATIONAL AND HOUSING FACILITY BOARD OF THE COUN DATE THE REBATE COMPUTATION WAS PERFORMED: 06/03/2010

Schedule K (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule L
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Transactions with Interested Persons

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

Attach to Form 990 or Form 990-EZ.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Part I

Excess Benefit Transactions (section 501(c)(3), section 501(c)(4), and 501(c)(29) organizations only).
Complete if the organization answered "Yes" on Form 990, Part IV, line 25a or 25b, or Form 990-EZ, Part V, line 40b.

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

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

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

Part II

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

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










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

Part III

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

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

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

Cat. No. 50056A

Schedule L (Form 990 or 990-EZ) 2015

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) JAMES RUKEYSER	FAMILY RELATIONSHIP WITH BOARD MEMBER	52,096	COMPENSATION AS EMPLOYEE		No
(2) MARY ELLEN COX	FAMILY RELATIONSHIP WITH KEY EMPLOYEE	121,376	COMPENSATION AS EMPLOYEE		No
(3) FRANK LIST	FAMILY RELATIONSHIP WITH OFFICER	54,010	COMPENSATION AS EMPLOYEE		No

Part V

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

Return Reference	Explanation

Schedule L (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE M
(Form 990)

Department of the Treasury

Internal Revenue Service

Noncash Contributions

Complete if the organizations answered "Yes" on Form 990, Part IV, lines 29 or 30.
Right pointing arrow large image

Attach to Form 990.
Right pointing arrow large image

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Part I

Types of Property

	(a) Check if applicable	(b) Number of contributions or items contributed	(c) Noncash contribution amounts reported on Form 990, Part VIII, line 1g	(d) Method of determining noncash contribution amounts
1 Art—Works of art ....
2 Art—Historical treasures .
3 Art—Fractional interests ..
4 Books and publications ..
5 Clothing and household goods .......
6 Cars and other vehicles ..
7 Boats and planes ....
8 Intellectual property ...
9 Securities—Publicly traded .	X	4	80,168	FMV
10 Securities—Closely held stock .
11 Securities—Partnership, LLC, or trust interests ....
12 Securities—Miscellaneous ..
13 Qualified conservation contribution—Historic structures .....
14 Qualified conservation contribution—Other ...
15 Real estate—Residential .
16 Real estate—Commercial ..
17 Real estate—Other ...
18 Collectibles .....
19 Food inventory ...
20 Drugs and medical supplies .
21 Taxidermy ......
22 Historical artifacts ....
23 Scientific specimens ..
24 Archeological artifacts ...
25 Other ( PIANO )	X	1	5,000	FMV
26 Other ( )
27 Other ( )
28 Other ( )

Number of Forms 8283 received by the organization during the tax year for contributions
for which the organization completed Form 8283, Part IV, Donee Acknowledgement

Yes

30a

During the year, did the organization receive by contribution any property reported in Part I, lines 1 through 28, that

it must hold for at least three years from the date of the initial contribution, and which is not required to be used

for exempt purposes for the entire holding period? ..................

30a

If "Yes," describe the arrangement in Part II.

Does the organization have a gift acceptance policy that requires the review of any non-standard contributions?

32a

Does the organization hire or use third parties or related organizations to solicit, process, or sell noncash

contributions? ..........................

32a

If "Yes," describe in Part II.

If the organization did not report an amount in column (c) for a type of property for which column (a) is checked,

describe in Part II.

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

Cat. No. 51227J

Schedule M (Form 990) (2015)

Page 2

Part II

Supplemental Information. Provide the information required by Part I, lines 30b, 32b, and 33, and whether the organization is reporting in Part I, column (b), the number of contributions, the number of items received, or a combination of both. Also complete this part for any additional information.

Return Reference	Explanation

Schedule M (Form 990) (2015)

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

Return Reference	Explanation
FORM 990, PART VI, SECTION B, LINE 11	THE TAX RETURN IS PREPARED BY AN UNRELATED, INDEPENDENT ACCOUNTING FIRM AND THEN SUBMITTED TO THE UHS CONTROLLER AND SENIOR VP/CFO FOR INTERNAL REVIEW. A DRAFT IS THEN PROVIDED TO THE UHS FINANCE COMMITTEE AND THEN THE ENTIRE UHS BOARD OF DIRECTORS WHO REVIEWS THE FORM 990 PRIOR TO FILING. THE SENIOR VP/CFO ATTENDS THE MEETINGS TO ANSWER ANY QUESTIONS AND ADDRESS ANY SIGNIFICANT DISCLOSURES WITHIN THE FORM 990.
FORM 990, PART VI, SECTION B, LINE 12C	EACH MEMBER OF THE BOARD OF DIRECTORS ANNUALLY COMPLETES A CONFLICT OF INTEREST DISCLOSURE. THESE CONFLICTS OF INTEREST DISCLOSURES ARE REVIEWED BY THE UHS OFFICE OF GENERAL COUNSEL TO ASSURE COMPLIANCE WITH THE POLICY. ADDITIONALLY, BOARD MEMBERS ARE ASKED TO RECUSE THEMSELVES ON ANY MATTERS OF INTEREST BEFORE THE BOARD IN WHICH A CONFLICT OF INTEREST MAY EXIST. ANY SUCH RECUSAL IS DOCUMENTED WITHIN THE MINUTES OF THE BOARD OR COMMITTEE.
FORM 990, PART VI, SECTION B, LINE 15	THE COMPENSATION OF THE CEO, OFFICERS AND OTHER KEY EMPLOYEES IS DETERMINED BY THE HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS IN ACCORDANCE WITH A POLICY ADOPTED BY THE BOARD. ONCE APPROVED BY THE COMMITTEE, THE PROPOSED COMPENSATION IS APPROVED BY THE EXECUTIVE COMMITTEE OF THE BOARD AND THE FULL BOARD OF DIRECTORS. DATA COMPILED BY THE HAY GROUP, A THIRD-PARTY COMPENSATION CONSULTANT, IS USED FOR COMPARABILITY.
FORM 990, PART VI, SECTION C, LINE 19	THE GOVERNING DOCUMENTS OF THE ORGANIZATION ARE HELD AS PUBLIC RECORDS OF THE STATE OF TENNESSEE SECRETARY OF STATE OFFICE. AS SUCH, THESE DOCUMENTS ARE OPEN TO THE PUBLIC. THE CONFLICT OF INTEREST POLICIES OF UHS FOR BOTH EMPLOYEES AND BOARD MEMBERS ARE AVAILABLE UPON REQUEST. QUARTERLY FINANCIAL STATEMENTS AND THE ANNUAL AUDITED FINANCIAL STATEMENTS ARE POSTED ON DACBOND.COM AND EMMA.MSRB.ORG, THE OFFICIAL PUBLIC DISCLOSURE WEBSITE.
FORM 990, PART IX, LINE 11G	PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 64,368,044. MANAGEMENT AND GENERAL EXPENSES 4,585,404. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 68,953,448. COMMUNICATION SERVICES: PROGRAM SERVICE EXPENSES 12,492,059. MANAGEMENT AND GENERAL EXPENSES 889,900. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,381,959. CLINCAL SERVICES: PROGRAM SERVICE EXPENSES 18,691,025. MANAGEMENT AND GENERAL EXPENSES 1,331,498. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 20,022,523. ENVIRONMENTAL SERVICES: PROGRAM SERVICE EXPENSES 1,413,399. MANAGEMENT AND GENERAL EXPENSES 100,687. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,514,086. OTHER SERVICES: PROGRAM SERVICE EXPENSES 662,896. MANAGEMENT AND GENERAL EXPENSES 47,223. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 710,119.
FORM 990, PART XI, LINE 9:	LOSS ON EXTINGUISHMENT OF DEBT -422,022. CHANGE IN VALUE OF DERIVATIVE INSTRUMENT 3,970,597.
FORM 990, PART XII, LINE 2C	THE FINANCE COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND SELECTION OF INDEPENDENT ACCOUNTANTS. THE OVERSIGHT PROCESS IS UNCHANGED FROM THE PRIOR YEAR.
FORM 990, PART III, LINE 4A:	STATEMENT OF COMMUNITY BENEFIT UNIVERSITY HEALTH SYSTEM JANUARY 1, 2014 - DECEMBER 31, 2014 UNIVERSITY HEALTH SYSTEM, INC. ("UHS") OPERATES THE UNIVERSITY OF TENNESSEE MEDICAL CENTER ("MEDICAL CENTER") WHICH OFFERS MEDICAL CARE TO A TWENTY-ONE COUNTY SERVICE AREA LOCATED THROUGHOUT EAST TENNESSEE, SOUTHEAST KENTUCKY, SOUTHWEST VIRGINIA, WESTERN NORTH CAROLINA AND BEYOND. THROUGH OPERATION OF THE MEDICAL CENTER, UHS: - PROVIDES HEALTHCARE SERVICES FOR THE RESIDENTS OF MEDICAL CENTER'S SERVICE AREA AND BEYOND, INCLUDING SPECIALIZED CARE THAT IS CUSTOMARILY AVAILABLE AT ACADEMIC MEDICAL CENTERS; - SUPPORTS MEDICAL RESEARCH AND EDUCATION THROUGH AN AFFILIATION AGREEMENT WITH THE UNIVERSITY OF TENNESSEE GRADUATE SCHOOL OF MEDICINE; - PROVIDES A PATIENT BASE FOR TRAINING PHYSICIANS, DENTISTS, NURSES AND OTHER HEALTH PROFESSIONALS; AND - PROVIDES SUPPORT FOR CLINICAL RESEARCH AND RESEARCH TRAINING. THE MEDICAL CENTER IS OPERATED FOR THE BENEFIT OF THE COMMUNITY IN A MANNER CONSISTENT WITH SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. UHS HAS ADOPTED A FORMAL CHARITY CARE POLICY, HAS AN OPEN MEDICAL STAFF, AND OPERATES AN EMERGENCY ROOM, INCLUDING A LEVEL I TRAUMA CENTER. IT IS GOVERNED BY A BOARD OF DIRECTORS COMPOSED OF INDEPENDENT CIVIC LEADERS FROM THE COMMUNITY AND REPRESENTATIVES FROM THE UNIVERSITY OF TENNESSEE. THE MEDICAL CENTER HAS A RICH HISTORY IN THE COMMUNITY OF PROVIDING PATIENT-CENTERED CARE AND REMAINING AT THE FOREFRONT OF RESEARCH, TECHNOLOGY AND TREATMENTS. UHS ATTRIBUTES ITS WELL-RESPECTED STANDING WITHIN THE COMMUNITY TO THE EXCEPTIONAL PEOPLE THAT DEDICATE THEMSELVES TO PATIENT CARE EXCELLENCE. THE MEDICAL CENTER IS LICENSED FOR 581 ACUTE CARE BEDS AND SERVES AS A REFERRAL CENTER FOR THE REGION, PROVIDING SUPERIOR TREATMENTS AND HEALTHCARE SUPPORT TO RESIDENTS OF THE COMMUNITY AS WELL AS OFFERING EXPERT CARE AS THE AREA'S ONLY LEVEL I TRAUMA CENTER. THE MEDICAL CENTER IS A TERTIARY FACILITY, OFFERING GENERAL, SPECIALTY AND SUB-SPECIALTY CARE IN A FULL RANGE OF MEDICAL FIELDS. THE STATE HAS ALSO DESIGNATED THE MEDICAL CENTER AS A REGIONAL PERINATAL CENTER FOR HIGH-RISK PREGNANCY AND OPERATES A LEVEL III NURSERY, HEMOPHILIA CENTER AND CENTER FOR TRANSPLANT SERVICES WHICH PERFORMS KIDNEY TRANSPLANTS. THE MEDICAL CENTER IS COMMITTED TO IMPROVING THE PATIENTS' QUALITY OF LIFE THROUGH LEADERSHIP IN HEALTHCARE, HEALTH EDUCATION AND CLINICAL RESEARCH. IT IS UNIQUE BECAUSE OF ITS STANDING AS THE ONLY ACADEMIC HOSPITAL IN THE REGION, MAKING IT THE LEADING RESOURCE FOR RESEARCH, DISCOVERY AND UPDATED TREATMENTS IN THE COMMUNITY. II. HISTORY UHS WAS CREATED ON DECEMBER 21, 1998 FOR THE PURPOSE OF RESTRUCTURING THE OPERATION, MANAGEMENT, AND GOVERNANCE OF THE MEDICAL CENTER, AND TO NEGOTIATE AGREEMENTS WITH THE UNIVERSITY OF TENNESSEE ("THE UNIVERSITY") TO FACILITATE THE RESTRUCTURING. EFFECTIVE JULY 29, 1999, UHS ACQUIRED CERTAIN ASSETS AND THE OPERATIONS OF THE MEDICAL CENTER FROM THE UNIVERSITY, AND THE MEDICAL CENTER BECAME AN OPERATING DIVISION OF UHS. PRIOR TO JULY 29, 1999, THE MEDICAL CENTER OPERATED AS A BUDGET ENTITY OF THE UNIVERSITY. UHS ENTERED INTO THE FOLLOWING AGREEMENTS TO ACQUIRE THE OPERATIONS OF THE MEDICAL CENTER FROM THE UNIVERSITY: 1) THE LEASE AND TRANSFER AGREEMENT, WHEREBY UHS LEASES CERTAIN REAL PROPERTY AND ACQUIRED CERTAIN PERSONAL PROPERTY FROM THE UNIVERSITY; 2) THE EMPLOYEE SERVICES AGREEMENT, WHEREBY UHS LEASES CERTAIN OF THE MEDICAL CENTER'S EMPLOYEES FROM THE UNIVERSITY; AND 3) THE AFFILIATION AGREEMENT, WHEREBY UHS AND THE UNIVERSITY AGREE TO CONTINUE THE MEDICAL CENTER'S HISTORICAL RELATIONSHIP WITH THE UNIVERSITY OF TENNESSEE MEMPHIS GRADUATE SCHOOL OF MEDICINE ("GSM"). UNDER THE TERMS OF THE LEASE AND TRANSFER AGREEMENT, UHS PURCHASED ALL OF THE OPERATING ASSETS OF THE MEDICAL CENTER, INCLUDING ALL PERSONAL PROPERTY, EQUIPMENT, INVENTORY, CURRENT ASSETS, AND OTHER ASSETS USED BY THE MEDICAL CENTER, OTHER THAN REAL PROPERTY. THE REAL PROPERTY IS LEASED FROM THE UNIVERSITY TO UHS FOR A TERM OF 50 YEARS. UNDER THE TERMS OF THE EMPLOYEE SERVICES AGREEMENT, EXISTING UHS EMPLOYEES, AND ALL EMPLOYEES HIRED SUBSEQUENT TO JULY 28, 1999, ARE UHS EMPLOYEES. ALL OTHER MEDICAL CENTER EMPLOYEES AS OF JULY 28, 1999 ARE LEASED BY UHS FROM THE UNIVERSITY AND RETAIN ALL UNIVERSITY BENEFITS. THE EMPLOYEE SERVICES AGREEMENT CONTINUES UNTIL THE EARLIER OF THE TERMINATION OF THE LEASE AND TRANSFER AGREEMENT OR THE SEPARATION FROM SERVICE OF THE LAST LEASED UNIVERSITY EMPLOYEE. THE AFFILIATION AGREEMENT GOVERNS THE CONTINUED RELATIONSHIP BETWEEN UHS AND THE GSM. UHS WILL PASS THROUGH CERTAIN FEDERAL AND STATE FUNDS EARMARKED FOR GRADUATE MEDICAL EDUCATION, AND THE MEDICAL CENTER WILL CONTINUE TO BE THE PRIMARY TEACHING SITE FOR THE GSM.
FORM 990, PART III, LINE 4A:	III. PATIENT CARE SERVICES IN AN EFFORT TO PROVIDE A CONTINUUM OF CARE FOR PATIENTS, FROM DIAGNOSIS THROUGH RECOVERY, UHS OFFERS CENTERS OF EXCELLENCE TO ENHANCE THE QUALITY OF HEALTHCARE DELIVERED TO THE COMMUNITY. THE CENTERS OF EXCELLENCE ARE AS FOLLOWS: BRAIN AND SPINE INSTITUTE THE BRAIN AND SPINE INSTITUTE IS MADE UP OF EXPERTS IN THE FIELD OF NEUROSCIENCE IN ORDER TO BRING PATIENTS THE MOST ADVANCED HEALTHCARE IN EAST TENNESSEE FOR A FULL RANGE OF NEUROLOGICAL DISEASES AND DISORDERS. THE INSTITUTE OFFERS PATIENT-CENTERED CARE FOR INJURIES AND DISEASES SUCH AS TRAUMA (SPINAL CORD INJURY AND BRAIN INJURY), DEGENERATIVE DISEASES (ALZHEIMER'S AND PARKINSON'S), VASCULAR DISORDERS (STROKE AND ANEURYSMS), STRUCTURAL INJURIES AND CONDITIONS OF THE SPINE, AND NEUROLOGICAL TUMORS. DIAGNOSING AND TREATING BRAIN AND SPINE DISEASES AND CONDITIONS DEMANDS MANY SPECIALISTS THAT PATIENTS CAN ACCESS THROUGH THE BRAIN AND SPINE INSTITUTE. THE TEAM OF SPECIALISTS INCLUDING NEUROSURGEONS AND NEUROLOGISTS PROVIDE PATIENTS WITH THE HIGHEST QUALITY CARE. THE BRAIN AND SPINE INSTITUTE OFFERS UNMATCHED EXPERTISE WITH ITS COLE NEUROSCIENCE CENTER FOR DEGENERATIVE NEUROLOGICAL (BRAIN) DISORDERS AND STATE-OF-THE-ART TECHNOLOGY WITH THE ONLY CYBERKNIFE CENTER IN THE KNOXVILLE REGION. UTMC ALSO PARTNERED WITH THE PAT SUMMITT FOUNDATION TO CREATE THE PAT SUMMITT ALZHEIMER'S CLINIC. UT MEDICAL CENTER IS THE 31ST HOSPITAL IN THE US TO EARN COMPREHENSIVE STROKE CERTIFICATION FROM THE JOINT COMMISSION (TJC). THE STROKE CENTER AT UTMC HAS BEEN RECOGNIZED BY AMERICAN HEART AND AMERICAN STROKE ASSOCIATION WITH THE GOLD PLUS ACHIEVEMENT AWARD FOR 5 YEARS OF 85% OR HIGHER OUTCOMES. THE STROKE CENTER WAS ALSO AWARDED TARGET STROKE GOLD ELITE PLUS FOR ACHIEVING > 50% PATIENTS RECEIVING TPA IN LESS THAN 45 MINUTES FROM ARRIVAL AT THE MEDICAL CENTER. THE SPINE CENTER HAS BEEN RECOGNIZED BY BLUE CROSS BLUE SHIELD AS A BLUE CENTER OF DISTINCTION. WITH FOUR DEDICATED NEUROSURGICAL OPERATING ROOMS, A DEDICATED STROKE UNIT, A DEDICATED NEUROLOGICAL INTENSIVE CARE UNIT, THE COLE NEUROSCIENCE CENTER AND THE LATEST TECHNOLOGY COMBINED WITH THE EXPERIENCE AND SKILL OF THE BRAIN AND SPINE INSTITUTE STAFF, UT MEDICAL CENTER PROVIDES QUALITY CARE TO THE EAST TENNESSEE COMMUNITY FOR TREATMENT OF BRAIN AND SPINE DISEASE OR INJURY. CANCER INSTITUTE THE CANCER INSTITUTE AT THE MEDICAL CENTER PROVIDES EACH PATIENT WITH COMPASSIONATE, COMPREHENSIVE AND COORDINATED CARE THROUGH A MULTIDISCIPLINARY TEAM OF SPECIALISTS FOCUSED ON THE TREATMENT, EARLY DETECTION AND PREVENTION IN THE FIGHT AGAINST CANCER. THE CANCER INSTITUTE IS COMMITTED TO OVERCOMING THE CHALLENGE OF CANCER THROUGH TREATMENT, RESEARCH AND EDUCATION IN PARTNERSHIP WITH THOSE WE SERVE. AS PART OF OUR MISSION, THE CANCER INSTITUTE STRIVES TO PROVIDE CANCER PATIENTS AND THEIR FAMILIES THE HIGHEST LEVEL OF CLINICAL CARE. THE CANCER INSTITUTE ALSO PROVIDES THE NECESSARY SUPPORT AND INTEGRATIVE MEDICINE SERVICES TO PATIENTS IN ORDER TO BETTER COPE WITH THE EMOTIONAL, PSYCHOLOGICAL AND FINANCIAL ISSUES RELATED TO A CANCER DIAGNOSIS. SERVICES AT THE CANCER INSTITUTE RANGE FROM A SINGLE ENTRY POINT FOR THE MANAGEMENT OF BREAST, PROSTATE, LUNG AND GASTROINTESTINAL CANCERS TO ADVANCED TREATMENT TECHNOLOGIES TO A TEAM OF HEALTHCARE PROVIDERS INCLUDING COUNSELORS AND CHAPLAINS TO PROVIDE EMOTIONAL AND SPIRITUAL SUPPORT THROUGHOUT CANCER TREATMENT. ALL PATIENT SERVICES ARE PROVIDED BY A TEAM OF TRAINED AND EXPERIENCED PROFESSIONALS IN A CARING AND COMPASSIONATE ENVIRONMENT. THE CANCER INSTITUTE HAS DEVELOPED A ROBUST OUTREACH PROGRAM PROVIDING BOTH PROFESSIONAL AND COMMUNITY EDUCATION AS WELL AS FREE OR LOW COST SCREENINGS FOCUSED ON THE EARLY DETECTION AND/OR PREVENTION OF CANCER. ALSO AS PART OF OUR MISSION, THE CANCER INSTITUTE ACTIVELY PARTICIPATES IN CLINICAL RESEARCH PROGRAMS TO DISCOVER NEW WAYS TO PREVENT, DETECT, AND TREAT CANCER. EMERGENCY AND TRAUMA SERVICES THE EMERGENCY DEPARTMENT AND THE TRAUMA SERVICE AT THE UNIVERSITY OF TENNESSEE MEDICAL CENTER (UTMCK) PROVIDE ESSENTIAL TERTIARY SERVICES TO THE CITIZENS OF KNOX COUNTY AND TWENTY-ONE SURROUNDING COUNTIES IN EAST TENNESSEE. THE EMERGENCY DEPARTMENT PROVIDES URGENT AND EMERGENT CARE FOR OVER 84,000 PATIENTS EACH YEAR, RELIEVING SUFFERING AND DELIVERING LIFE-SAVING CARE WHILE REMAINING COMMITTED TO INDIVIDUALIZED PATIENT AND FAMILY CENTERED CARE. THE PATIENTS ARRIVE TO THE ED BY MANY ROUTES: GROUND AMBULANCES, AEROMEDICAL TRANSPORT SERVICES OR PRIVATE VEHICLES. UPON ARRIVAL THEY CAN BE TREATED IN ONE OF FOUR AREAS: A CRITICAL RESUSCITATION BAY FOR THE MOST SERIOUSLY INJURED OR ILL PATIENTS; AN EMERGENT TREATMENT AREA FOR THOSE WITH A POTENTIALLY SERIOUS PROBLEM; A RAPID EVALUATION AND TREATMENT AREA FOR THE LESS ILL AND INJURED, AND A FAST-TRACK AREA FOR THOSE WITH MINOR INJURY OR ILLNESS. UT MEDICAL CENTER IS THE ONLY LEVEL ONE TRAUMA CENTER IN THE REGION, PROVIDING CARE FOR OVER 4000 SEVERELY INJURED ADULTS AND CHILDREN EACH YEAR. A LEVEL ONE TRAUMA CENTER IS THE HIGHEST LEVEL TRAUMA CENTER AND IS REQUIRED TO HAVE IMMEDIATE OPERATIVE CARE AVAILABLE 24 HOURS A DAY, SEVEN DAYS A WEEK ALONG WITH TEAM OF SPECIALLY TRAINED PERSONNEL. THE HEAD OF THIS TEAM IS THE TRAUMA SURGEON WHO SUPERVISES AND COORDINATES PATIENT CARE WHILE SPECIALTY PHYSICIANS, WHO INCLUDE NEUROSURGEONS, ORTHOPEDIC SURGEONS, AND MAXILLOFACIAL OR PLASTIC SURGEONS, ARE CONSULTED AS NEEDED. AFTER EVALUATION IN THE EMERGENCY DEPARTMENT AND ANY NECESSARY OPERATIVE INTERVENTIONS, CRITICALLY INJURED TRAUMA PATIENT ARE ADMITTED TO ONE OF OUR CRITICAL CARE UNITS. IN THE CRITICAL CARE UNIT, THE PATIENT RECEIVES FURTHER EVALUATION AND PROCEDURES AS NECESSARY, SUCH AS FOLLOW UP IMAGING, SUTURING, SPLINTING AND OBSERVATION. CRITICALLY INJURED PATIENTS ARE COMPLEX AND CHALLENGING. THEY OFTEN REQUIRE MASSIVE RESUSCITATION, INTRACRANIAL PRESSURE AND PARTIAL BRAIN TISSUE OXYGENATION MONITORING, MECHANICAL VENTILATION, CONTINUOUS RENAL REPLACEMENT THERAPY, AS WELL AS MANY OTHER SPECIALIZED TREATMENTS AND PROCEDURES. UTMCK IS AN ACADEMIC MEDICAL CENTER WHERE EXISTING CLINICAL RESEARCH IS EVALUATED, NEW RESEARCH IS CONDUCTED AND EVIDENCED-BASED CARE PATHS ARE DEVELOPED TO ENSURE PATIENTS RECEIVE THE MOST UP-TO-DATE CARE AVAILABLE. MULTIDISCIPLINARY DAILY ROUNDS ARE MADE BY COLLABORATION OF PROFESSIONALS THAT INCLUDE RESIDENT PHYSICIANS, CRITICAL CARE NURSES, PHARMACISTS, RESPIRATORY THERAPISTS, AND STUDENTS. THE ROUNDS ARE LED BY THE ATTENDING TRAUMA SURGEONS WHO DISCUSS THE CARE AND PROGRESS OF TRAUMA PATIENTS, ESTABLISH THE DAILY PATIENT GOALS AND ENSURE HIGH QUALITY COMPREHENSIVE CARE PLANNING. FAMILIES ARE ASKED AND ENCOURAGED TO ATTEND THESE ROUNDS AS PART OF THE TEAM CARING FOR THEIR LOVED ONE. THE STAFF OF THE CRITICAL CARE UTILIZE THE PATIENT AND FAMILY CENTERED MODEL OF CARE, WHICH ENCOURAGES OPEN VISITATION HOURS, FAMILY PRESENCE AT ROUNDS, REFERRALS TO CASE MANAGEMENT, PASTORAL CARE AND ONGOING COMMUNICATION WITH PATIENTS AND THEIR FAMILIES. HEART LUNG VASCULAR INSTITUTE THE HEART LUNG VASCULAR INSTITUTE WAS ESTABLISHED IN 2000 TO HELP MEET THE INCREASING NEED FOR CARDIOVASCULAR AND LUNG DISEASE CARE. HEART DISEASE, STROKE AND PULMONARY DISEASE ARE AMONG THE LEADING CAUSES OF DEATH IN THE UNITED STATES. IN ADDITION, TENNESSEE IS ONE OF THE WORST FIVE STATES FOR SMOKING, OBESITY, AND HIGH BLOOD PRESSURE - ALL OF WHICH CONTRIBUTE TO THE DEVELOPMENT OF HEART AND LUNG DISEASE. QUALITY AND SAFETY IN PATIENT CARE HAVE BEEN AN INTEGRAL PART OF OUR MISSION AT THE HLVI. THIS LED TO THE BUILDING OF A DEDICATED HEART HOSPITAL WITH A STATE OF THE ART CARDIOVASCULAR INTENSIVE CARE UNIT (CVICU), CARDIOTHORACIC SURGERY UNIT (3HH) AND MEDICAL CARDIOLOGY UNIT (4HH). MULTIDISCIPLINARY TEAMS, INCLUDING PHYSICIANS, NURSES, PHARMACISTS, RESPIRATORY THERAPISTS, AND OTHERS, USE EVIDENCE-BASED CARE PLANS TO IMPLEMENT A PATIENT-FAMILY CENTERED MODEL OF CARE. FACILITY DESIGN, TECHNOLOGY, AND INFORMATION SYSTEMS ALSO SUPPORT OUR GOAL OF EXCELLENCE. THE UNIVERSITY OF TENNESSEE MEDICAL CENTER IS THE AREA'S ONLY ACADEMIC MEDICAL CENTER, AND RESEARCH INTO THE CAUSE AND TREATMENT OF DISEASE IS PART OF OUR MISSION. THE OTHER ROLE OF ACADEMICS INVOLVES PHYSICIAN EDUCATION; THE UT GRADUATE SCHOOL OF MEDICINE CURRENTLY OFFERS FELLOWSHIPS IN CARDIOVASCULAR MEDICINE, VASCULAR SURGERY AND PULMONARY MEDICINE. THE GOALS OF THE HEART LUNG VASCULAR INSTITUTE ARE TO ATTAIN EXCELLENCE IN PATIENT CARE, PREVENTIVE MEDICINE, REHABILITATION SERVICES, RESEARCH AND EDUCATION. EXCELLENCE IN PATIENT CARE MEANS OFFERING THE BEST DIAGNOSTIC AND TREATMENT PLANS USING THE LATEST TECHNOLOGY IN A COMPASSIONATE MANNER, KEEPING THE PATIENT AND FAMILY INFORMED AND COMFORTABLE, BOTH PHYSICALLY AND EMOTIONALLY. PREVENTIVE MEDICINE INVOLVES EDUCATION ABOUT CARDIOVASCULAR AND LUNG DISEASE PROCESSES AND RISK REDUCTION THROUGH COMMUNITY SEMINARS AND SCREENINGS SUCH AS THE HEARTWISE PROGRAM. REHABILITATION SERVICES HELP PATIENTS RECOVERING FROM HEART ATTACKS, HEART FAILURE, HEART
FORM 990, PART III, LINE 4A:	UTILIZATION AS OF THE YEAR ENDING DECEMBER 31, 2014, UHS MAINTAINED THE FOLLOWING OPERATING STATISTICS: INPATIENT ADMISSIONS 27,875 OUTPATIENT VISITS 168,776 EMERGENCY ROOM VISITS 85,612 IV. UNCOMPENSATED CARE THE HISTORY OF UHS DEMONSTRATES A CLEAR AND CONSISTENT CHARITABLE PURPOSE: THE PROVISION OF HEALTHCARE SERVICES TO ALL RESIDENTS OF THE COMMUNITY WITHOUT REGARD TO AGE, RACE, GENDER, CREED, GEOGRAPHIC LOCATION, CULTURAL BACKGROUND, OR ABILITY TO PAY. THESE SERVICES SHOULD BE DELIVERED IN A WAY THAT MAINTAINS INDIVIDUAL DIGNITY AND ENHANCES THE QUALITY OF LIFE OF THE PERSONS SERVED. ONE OF THE MOST TANGIBLE EXPRESSIONS OF THE UHS CHARITABLE PURPOSE IS THE PROVISION OF CARE TO THOSE WHO DO NOT HAVE THE ABILITY TO PAY. A. CHARITY CARE AND SELF-PAY DISCOUNT THE MEDICAL CENTER PROVIDES MEDICALLY NECESSARY SERVICES TO ALL PEOPLE, REGARDLESS OF THEIR ABILITY TO PAY. UHS HAS A DOCUMENTED CHARITY POLICY, WHICH TAKES INTO CONSIDERATION INCOME LEVELS, AND OTHER DEMOGRAPHIC FACTORS. FOR THOSE WHO DO NOT QUALIFY UNDER THE EXISTING POLICY BUT ARE FACING DIFFICULT ECONOMIC CIRCUMSTANCES, ABILITY TO PAY IS DETERMINED ON A CASE-BY-CASE BASIS. THE MEDICAL CENTER ALSO HAS A POLICY REGARDING THOSE SELF-PAY PATIENTS WHO ARE INELIGIBLE FOR CHARITY CARE CONSIDERATION. SUCH PATIENTS WILL RECEIVE A 50% DISCOUNT FROM CHARGES. FOR THE YEAR ENDING DECEMBER 31, 2014, THE SYSTEM PROVIDED SERVICES UNDER THE PREVIOUSLY STATED POLICY WHICH RESULTED IN LOSSES TO UHS OF APPROXIMATELY $18,976,066. BOTH INPATIENTS AND OUTPATIENTS WERE PROVIDED CARE UNDER THE AFOREMENTIONED POLICY. NO PATIENT WAS REFUSED NECESSARY MEDICAL CARE ON THE BASIS OF HIS OR HER ABILITY TO PAY. UNREIMBURSED CHARITY CARE AND SELF-PAY DISCOUNT $18,976,066 B. MEDICARE IN ADDITION TO THE PROVISION OF CARE WITHOUT EXPECTATION OF PAYMENT, UHS PROVIDED SERVICES TO PEOPLE COVERED UNDER THE FEDERAL MEDICARE PROGRAM. MEDICARE RECIPIENTS WERE THE LARGEST SINGLE PAYOR CLASSIFICATION OF PATIENTS SERVED BY UHS. THE PAYMENT RATE FOR INPATIENT SERVICES WAS ON A PER DISCHARGE BASIS, CALCULATED BASED ON THE DIAGNOSTIC-RELATED GROUP INTO WHICH THE PATIENT WAS CATEGORIZED, COUPLED WITH OTHER FACTORS RELATED TO AREA WAGE RATES, MEDICAL EDUCATION, CAPITAL COSTS AND OTHER VARIABLES. OUTPATIENT SERVICES WERE REIMBURSED ON A PRE-DETERMINED CASE RATE. FOR THE YEAR ENDING DECEMBER 31, 2014, UNREIMBURSED SERVICES PROVIDED TO MEDICARE PATIENTS RESULTED IN A FINANCIAL LOSS OF $5,274,369. UNREIMBURSED MEDICARE SERVICES $5,274,369 C. PUBLIC/INDIGENT CARE IN ADDITION TO THE LEVEL OF SERVICES IDENTIFIED IN PARAGRAPH A ABOVE, UHS IS AN ACTIVE PARTICIPANT IN OTHER FEDERAL, STATE OR LOCAL AND PUBLIC/INDIGENT PROGRAMS. THESE PROGRAMS SEEK TO PROVIDE PAYMENT FOR HEALTHCARE SERVICES TO INDIVIDUALS WHO MEET CERTAIN FINANCIAL AND CATEGORICAL REQUIREMENTS. FINANCIAL REQUIREMENTS INCLUDE EVALUATION OF BOTH ASSETS AND INCOME. PUBLIC/INDIGENT PROGRAMS REIMBURSEMENT RATES ARE SUBSTANTIALLY BELOW COST. FOR THE YEAR ENDING DECEMBER 31, 2014, UNREIMBURSED PUBLIC/INDIGENT SERVICES REPRESENTING A FINANCIAL LOSS TO UHS OF APPROXIMATELY $5,221,563. UNREIMBURSED PUBLIC/INDIGENT SERVICES $5,221,563 SUMMARY, COMMUNITY BENEFIT TOTALS FOR UNCOMPENSATED CARE UNREIMBURSED CHARITY CARE & SELF-PAY DISCOUNT $18,976,066 UNREIMBURSED MEDICARE $5,274,369 UNREIMBURSED PUBLIC/INDIGENT CARE $5,221,563 TOTAL UNCOMPENSATED CARE $29,471,998 V. COMMUNITY SERVICES UHS PROVIDES NUMEROUS EDUCATION AND OUTREACH EFFORTS TO THE COMMUNITY, RANGING FROM HEALTH SCREENINGS AND FAIRS TO PRESENTATIONS TO AREA GROUPS. THE VARIOUS PROGRAMS AND SERVICES ARE PROVIDED COMPLIMENTARY OR AT A MINIMAL CHARGE. THESE ARE OFFERED THROUGHOUT THE YEAR BASED UPON ACTIVITIES AND SERVICES WHICH UHS BELIEVES WILL SERVE A BONA FIDE COMMUNITY HEALTH NEED. A. COMMUNITY EDUCATION AND OUTREACH UHS HAS A LONG-STANDING COMMITMENT TO COMMUNITY OUTREACH, AS EVIDENCED BY AN ACTIVE SCHEDULE OF SPECIAL PROGRAMS, SPEAKERS, AND DISTRIBUTION OF EDUCATIONAL MATERIALS, AS WELL AS HEALTH EDUCATION PRESENTATIONS FOR THE GENERAL PUBLIC AND CLASSES FOR POPULATIONS WITH SPECIAL HEALTH NEEDS. IN 2014, THE MEDICAL CENTER HELD VARIOUS EDUCATIONAL PROGRAMS FOR THE COMMUNITY, INCLUDING LUNCH AND LEARN SERIES, HEALTH FAIRS AND FLU SHOTS. MANY TIMES, A FEE WOULD COVER ONLY THE COST OF FOOD OR WOULD BE USED ONLY AS AN INCENTIVE FOR PARTICIPATION. NO FEES WERE CHARGED FOR EDUCATION IN CORPORATE VENUES, OFFERED FOR EMPLOYEES AND FAMILIES. TOTAL COST OF LECTURES, SEMINARS, AND EDUCATIONAL PROGRAMS $74,745 IN 2014, UHS PROVIDED OTHER PROGRAMS AND ACTIVITIES THAT PROMOTE HEALTH FOR THE BENEFIT OF THE COMMUNITY SUCH AS SUPPORT GROUPS (ALZHEIMER'S DISEASE/MS DYSTROPHY/PARKINSON'S DISEASE AND STROKE), DISASTER READINESS, HEALTHY LIVING KITCHEN, SUSAN G. KOMEN AND MANY OTHER FUNDRAISERS. TOTAL OTHER EDUCATION AND OUTREACH $115,847 B. HEALTH SCREENINGS UHS EMPLOYEES WORK DILIGENTLY TO ACHIEVE THE UHS MISSION OF SUPPORTING HEALTH EDUCATION FOR THE PUBLIC. FROM PROVIDING DISPLAYS AND STAFF WHO CAN ANSWER QUESTIONS AT LOCAL HEALTH FAIRS TO UNDERWRITING THE COST OF COMPLIMENTARY COMMUNITY SCREENINGS, THE ORGANIZATION REACHES INTO THE COMMUNITY IN MANY WAYS TO IMPROVE RESIDENTS' UNDERSTANDING OF THE IMPACT OF LIFESTYLE CHOICES ON HEALTH. SCREENINGS INCLUDED BLOOD PRESSURE, OSTEOPOROSIS, CHOLESTEROL, VISION, AND CANCER. TOTAL COST OF SCREENINGS $90,702 SUMMARY, COMMUNITY SERVICES EDUCATIONAL PROGRAMS $74,745 TOTAL OTHER EDUCATION/OUTREACH 115,847 TOTAL HEALTH SCREENINGS 90,702 TOTAL QUANTIFIABLE VALUE OF COMMUNITY SERVICES $281,294 VI. TRAINING AND EDUCATION FOR HEALTHCARE PROFESSIONALS AS THE ONLY ACADEMIC MEDICAL CENTER IN THE REGION, UHS IS COMMITTED TO EDUCATION IN ORDER TO PREPARE HEALTHCARE PROFESSIONALS FOR THE FUTURE. EDUCATION IS AN ONGOING ENDEAVOR FOR ALL EMPLOYEES, MANY OF WHICH WILL HAVE AN OPPORTUNITY TO SERVE AS TEACHERS AS WELL AS STUDENTS. THE MEDICAL CENTER COLLABORATES WITH THE GSM AND OTHER ACADEMIC INSTITUTIONS AND IT MAINTAINS A LEARNING ENVIRONMENT WITH DEVOTION TO TECHNOLOGICAL AND TREATMENT ADVANCES THAT PROVIDE BETTER CARE FOR PATIENTS. UNIVERSITY OF TENNESSEE GRADUATE SCHOOL OF MEDICINE THE MEDICAL CENTER SERVES AS THE CLINICAL EDUCATION SITE OF THE GSM, WHICH MANAGES ALL RESIDENCY, FELLOWSHIP AND SUBSPECIALTY PROGRAMS IN ASSOCIATION WITH THE UT COLLEGE OF MEDICINE AND DENTISTRY. THE GRADUATE SCHOOL OF MEDICINE HAS A THREE-FOLD MISSION OF EXCELLENCE IN EDUCATION, PATIENT CARE, AND RESEARCH. ANNUALLY, THE GRADUATE SCHOOL OF MEDICINE MAINTAINS OVER 200 FACULTY AND OVER 200 RESIDENTS IN TRAINING AT THE MEDICAL CENTER. COMPONENTS OF THE GRADUATE SCHOOL OF MEDICINE INCLUDE: - RESIDENCY AND FELLOWSHIP PROGRAMS ARE OFFERED IN MEDICINE AND DENTISTRY. - THE PRIMARY CARE RESIDENCY PROGRAMS ARE FAMILY MEDICINE, INTERNAL MEDICINE, OBSTETRICS AND GYNECOLOGY. - THE REMAINING MEDICINE PROGRAMS INCLUDE ANESTHESIOLOGY, GENERAL SURGERY, NUCLEAR MEDICINE, PATHOLOGY, RADIOLOGY, TRANSITIONAL YEAR, AND UROLOGY. - FELLOWSHIPS ARE OFFERED THROUGH THE DEPARTMENTS OF FAMILY MEDICINE, MEDICINE, SURGERY, AND PATHOLOGY. - FAMILY MEDICINE FELLOWSHIPS INCLUDE EMERGENCY MEDICINE, SPORTS MEDICINE, BEHAVIORAL MEDICINE, OBSTETRICS, AND IN CONJUNCTION WITH THE DEPARTMENT OF MEDICINE A FELLOWSHIP IN GERIATRIC MEDICINE. - SURGERY OFFERS FELLOWSHIPS IN BOTH VASCULAR SURGERY AND TRAUMA/CRITICAL CARE. - THE DEPARTMENT OF PATHOLOGY OFFERS A FELLOWSHIP IN CYTOPATHOLOGY AND SURGICAL PATHOLOGY, AND IS IN THE PROCESS OF OFFERING A FELLOWSHIP IN FORENSIC PATHOLOGY. - THE DEPARTMENT OF RADIOLOGY OFFERS EDUCATIONAL OPPORTUNITIES IN PET. - RESIDENCIES ARE OFFERED IN GENERAL DENTISTRY AS WELL AS ORAL AND MAXILLOFACIAL SURGERY. ADDITIONALLY, THE MEDICAL CENTER SERVES AS A CLINICAL EDUCATION SITE FOR THE UT COLLEGE OF PHARMACY. OTHER TRAINING PROGRAMS OFFERED INCLUDE MEDICAL TECHNOLOGY, NUCLEAR MEDICINE TECHNOLOGY, NURSE ANESTHESIA CONCENTRATION, CLINICAL PASTORAL EDUCATION, AND RADIOGRAPHY TECHNOLOGY. 2014 FINANCIAL SUPPORT FOR HEALTHCARE TRAINING AND EDUCATION IS AS FOLLOWS (UNREIMBURSED COST IS BELOW): SCHOOL OF MEDICAL TECHNOLOGY (5) $ 3,480 PHARMACY (11) 50,318 NURSE ANESTHESIA CONCENTRATION (47) 75,000 SCHOOL OF RADIOLOGIC TECHNOLOGY (8) 95,055 PASTORAL CARE (11) 208,383 GRADUATE SCHOOL OF MEDICINE (188) 16,775,140 TOTAL UNREIMBURSED COSTS OF TRAINING AND EDUCATION $17,207,376
FORM 990, PART III, LINE 4A:	VII. MEDICAL RESEARCH RESEARCH IS AN IMPORTANT PART OF THE UHS MISSION. PATIENTS NEED PRACTITIONERS FAMILIAR WITH THE LATEST MEDICAL PROCEDURES AND TECHNOLOGY. INVOLVEMENT IN CLINICAL TRIALS ADVANCES THE KNOWLEDGE OF OUR PHYSICIANS AND PROVIDES PATIENTS WITH ACCESS TO NEW THERAPIES THAT ARE OTHERWISE UNAVAILABLE. RESEARCH ONE YEAR MAY BECOME STANDARD MEDICAL THERAPY THE FOLLOWING YEAR. OF COURSE, LABORATORY RESEARCH SERVES AS THE UNDERPINNING FOR OUR CLINICAL INVESTIGATIONS. RESEARCHERS ARE INVOLVED IN BASIC AND CLINICAL RESEARCH AND CLINICAL TRIALS. PRIMARY RESEARCH AREAS INCLUDE VASCULAR ENDOTHELIAL BIOLOGY, IMMUNOLOGY, ONCOLOGY, AMYLOID-RELATED DISEASE, DIABETES, ALZHEIMER'S DISEASE, NUTRITION AND TRAUMA. THE UNIVERSITY OF TENNESSEE GRADUATE SCHOOL OF MEDICINE HOUSES A NUMBER OF RESEARCH EFFORTS THAT HAVE ALREADY MADE A CONSIDERABLE IMPACT ON THE UNDERSTANDING AND TREATMENT OF SERIOUS MEDICAL DISORDERS, INCLUDING ALZHEIMER'S DISEASE, HUNTINGTON'S DISEASE, AMYLOID DISEASE, MULTIPLE MYELOMA, OVARIAN AND BREAST CANCER, AND REPRODUCTIVE DISORDERS. THESE FOCUSED AREAS OF EXCELLENCE PROVIDE AN EVER INCREASING INTERFACE BETWEEN THE CLINICAL AND RESEARCH ARMS OF THE MEDICAL CENTER. TOTAL UNREIMBURSED COST OF MEDICAL RESEARCH $163,918 VIII. DONATIONS UHS RECOGNIZES THE IMPACT THAT OTHER NON-PROFIT ORGANIZATIONS HAVE ON THE COMMUNITY IN WHICH THEY SERVE. IN ADDITION TO ITS DIRECT CONTRIBUTIONS TO THE COMMUNITY THROUGH ITS SERVICES, INDIGENT CARE, AND COMMUNITY EDUCATION AND OUTREACH, UHS PROVIDES CASH AND NONCASH DONATIONS TO VARIOUS CHARITABLE AND CIVIC ORGANIZATIONS WITHIN THE COMMUNITY. THESE EFFORTS AFFIRM UHS' ROLE AS A CORPORATE CITIZEN, SUPPORTING COMMUNITY ORGANIZATIONS AND ENHANCING THE QUALITY OF LIFE IN THE EAST TENNESSEE AREA. IN 2014, UHS PROVIDED SUPPORT OF MORE THAN $359,605 TO NUMEROUS HEALTH AND HUMAN SERVICE AGENCIES, INCLUDING BUT NOT LIMITED TO THE FOLLOWING RECIPIENTS: - AMERICAN CANCER SOCIETY - EAST TENNESSEE CHILDREN'S HOSPITAL - GOODWILL INDUSTRIES-KNOXVILLE - GREAT SMOKY MOUNTAIN COUNCIL - HELEN ROSS MCNABB - KNOXVILLE ACADEMY OF MEDICINE FOUNDATION - KNOX COUNTY OFFICE ON AGING -RONALD MCDONALD HOUSE - UNITED WAY - MANY ADDITIONAL DONATIONS TO SUPPORT COMMUNITY EVENTS AND SERVICES, CHURCHES AND SCHOOLS IN ADDITION TO THE CASH DONATIONS ITEMIZED ABOVE, UHS IS UNABLE TO QUANTIFY MANY OF THE SERVICES AND BENEFITS IT PROVIDES TO VARIOUS ORGANIZATIONS. TOTAL DONATIONS AND IN-KIND CONTRIBUTIONS $359,605 IX. OTHER COMMUNITY BUILDING ACTIVITIES A. IMPROVE ACCESS TO HEALTHCARE UHS ALSO PROVIDES PROGRAMS TO IMPROVE ACCESS TO HEALTHCARE FOR INDIVIDUALS WHO LACK INSURANCE. DURING 2014, UHS DEDICATED AN EMPLOYEE TO WORK ENTIRELY WITH SELF-PAY PATIENTS IN HELPING THEM APPLY FOR STATE ASSISTANCE THROUGH THE TENNCARE PROGRAM. ADDITIONALLY DURING 2014, UHS DEDICATED TWO CLERKS TO ASSIST, ONE OF WHICH SERVES AS AN INTERPRETER FOR PATIENTS WHOSE FIRST LANGUAGE IS NOT ENGLISH. UHS STRIVES TO MEET THE NEEDS OF THE COMMUNITY'S EVER-GROWING IMMIGRANT POPULATION BY ENSURING FULL ACCESS TO HEALTHCARE WITHOUT ALLOWING COMMUNICATION TO BE A BARRIER. COSTS RELATED TO IMPROVING ACCESS TO HEALTHCARE IN 2014 WERE $92,000. B. COMMUNITY HEALTH IMPROVEMENT UHS PROVIDED SUPPORT TO INTERFAITH HEALTH CLINIC PROVIDING AFFORDABLE MEDICAL CARE, DENTAL CARE, MENTAL HEALTH COUNSELING AND PRESCRIPTION MEDICATIONS FOR THE WORKING UNINSURED. COSTS RELATED TO COMMUNITY HEALTH IMPROVEMENT WERE $25,000 IN 2014. C. COMMUNICATION INTERPRETER THE COMMUNITY IN WHICH UHS OPERATES HAS EXPERIENCED A SIGNIFICANT INCREASE IN INDIVIDUALS WHO SPEAK LIMITED OR NO ENGLISH AND/OR WHO USE ENGLISH ONLY AS A SECOND LANGUAGE. AS SUCH, UHS HAS EXPANDED ITS OUTREACH EFFORTS TO SUCH INDIVIDUALS BY USING INTERPRETERS. IN ADDITION, UHS PURCHASES INTERPRETER SERVICES FOR THOSE WHO ARE HEARING IMPAIRED. DURING 2014, UHS INCURRED COSTS FOR THE CYRACOM TELEPHONE INTERPRETER, WHEREBY NON-ENGLISH SPEAKING PATIENTS ARE ABLE TO COMMUNICATE WITH THE MEDICAL STAFF AND HEARING IMPAIRED INTERPRETERS. COSTS FOR INTERPRETERS IN 2014 WERE $216,162. D. ECONOMIC DEVELOPMENT UHS SUPPORT ECONOMIC DEVELOPMENT ACTIVITIES THROUGH THE EAST TENNESSEE ECONOMIC DEVELOPMENT AGENCY AND LEADERSHIP DEVELOPMENT. COSTS RELATED TO ECONOMIC DEVELOPMENT IN 2014 WERE $48,083. TOTAL OTHER QUANTIFIABLE COMMUNITY BUILDING ACTIVITIES $381,245 X. CONTRIBUTIONS OF VOLUNTEERS SINCE 1962, UT MEDICAL CENTER HAS ENJOYED THE SERVICES OF THE VOLUNTEERS WHO HAVE GIVEN OVER 873,259 HOURS. THE VOLUNTEER DEPARTMENT COORDINATES THE ACTIVITIES OF THREE MAIN GROUPS OF VOLUNTEERS: THE AUXILIARY, INDEPENDENT VOLUNTEERS, AND THE JUNIOR VOLUNTEERS. ALL VOLUNTEERS WHO DONATE TIME AND SERVICE TO THE MEDICAL CENTER WORK IN A VARIETY OF SETTINGS SUCH AS INPATIENT AND OUTPATIENT FACILITY DEPARTMENTS, PATIENT RECEPTION AREAS, GIFT SHOP, ETC. LIFTING THE SPIRITS OF UTMC PATIENTS IS WHAT THE VOLUNTEER PROGRAM IS ALL ABOUT. VOLUNTEERS ARE INVOLVED IN SUCH ACTIVITIES AS DELIVERING FLOWERS, MAIL AND GIFTS, SERVING REFRESHMENTS AND PROVIDING WARM BLANKETS FOR THE ONCOLOGY PATIENTS, READING MATERIALS, A CHEERFUL SMILE AND A COMFORTING WORD. VOLUNTEERS ALSO PROVIDE A VALUABLE SOURCE OF INFORMATION FOR THE PATIENTS' FAMILIES AND FRIENDS AND ARE ESPECIALLY IMPORTANT WHEN SERVING AS A LIAISON DURING CRUCIAL TIMES IN THE FAMILY WAITING LOUNGES. CURRENTLY, THE GROUP OF NEARLY 275 PEOPLE IS DIVIDED AMONG AUXILIARY MEMBERS, INDEPENDENT VOLUNTEERS, AND JUNIOR VOLUNTEERS. FOR 2014, VOLUNTEERS DONATED ALMOST 27,000 HOURS OF SERVICE TO THE MEDICAL CENTER. THE AUXILIARY CONTRIBUTED $76,000 TO THE MEDICAL CENTER IN 2014 AS FOLLOWS: $25,000 TO START THE FIRST K-9 SECURITY UNIT IN TENNESSEE, $50,000 TOWARD THE PRESTON MEDICAL LIBRARY AND $1,000 TO THE HEALTHY LIVING KITCHEN IN UT CANCER INSTITUTE. OVER THE YEARS, THE UNIVERSITY OF TENNESSEE HOSPITAL AUXILIARY HAS PROVIDED NEARLY 3 MILLION DOLLARS TO THE MEDICAL CENTER IN SUPPORT OF THE ONGOING MISSION, VISION AND VALUES OF THE INSTITUTION. XI. SUMMARY OF QUANTIFIABLE COMMUNITY BENEFITS PROVIDED BY THE SYSTEM, 2014 A SUMMARY LISTING OF THE QUANTIFIABLE COMMUNITY BENEFITS PROVIDED BY UHS DESCRIBED IN THE BODY OF THIS REPORT APPEARS BELOW. MANY OF THE BENEFITS DESCRIBED ON THE PREVIOUS PAGES CANNOT BE QUANTIFIED IN DOLLARS, ESPECIALLY MANY OF UHS' CONTRIBUTIONS IN THE AREA OF COMMUNITY HEALTH EDUCATION AND OUTREACH. A. CONTRIBUTIONS MEASURABLE IN DOLLARS: UNCOMPENSATED PATIENT CARE $29,471,998 COMMUNITY SERVICES 281,294 TRAINING AND EDUCATION FOR HEALTHCARE PROFESSIONALS 17,207,376 RESEARCH 163,918 DONATIONS 359,605 OTHER COMMUNITY OUTREACH ACTIVITIES 381,245 TOTAL CONTRIBUTIONS $47,865,436 B. RELATED CONTRIBUTIONS MEASURABLE IN DOLLARS: EMPLOYEE DONATIONS FOR HEALTH SYSTEM-SANCTIONED CHARITABLE AND COMMUNITY SERVICE EVENTS $56,585 CONTRIBUTIONS OF HOSPITALS' VOLUNTEER ORGANIZATIONS 76,000 TOTAL RELATED CONTRIBUTIONS $ 82,585 TOTAL QUANTIFIABLE COMMUNITY BENEFITS, 2014 TOTAL CONTRIBUTIONS $49,130,896 RELATED CONTRIBUTIONS 82,585 TOTAL QUANTIFIABLE COMMUNITY BENEFITS $49,213,481

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

UNIVERSITY HEALTH SYSTEM INC

Employer identification number

31-1626179

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
(1) UHS ASC LLC 1520 CHEROKEE TRAIL STE 200 KNOXVILLE,TN37920 31-1626179	INACTIVE	TN	0	0	UNIVERSITY HEALTH SYSTEM INC
(2) REGIONAL TRAUMA SERVICES LLC 1520 CHEROKEE TRAIL STE 330 KNOXVILLE,TN37920 20-2769076	TRAUMA MANAGEMENT	TN	1,866,360	414,219	UNIVERSITY HEALTH SYSTEM INC
(3) UNIVERSITY CARDIOLOGY GROUP LLC 1520 CHEROKEE TRAIL STE 330 KNOXVILLE,TN37920 46-4901485	PHYSICIAN SERVICE	TN	11,326,941	2,060,791	UNIVERSITY HEALTH SYSTEM INC

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

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

Cat. No. 50135Y

Schedule R (Form 990) 2015

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	(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 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

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) UHS VENTURES INC 9000 EXECUTIVE PARK DRIVE D-240 KNOXVILLE,TN37923 62-1619460	MANAGEMENT SERVICES	TN	UNIVERSITY HEALTH SYSTEM INC	C	1,326,965	900,871	100.000 %	Yes

Schedule R (Form 990) 2015

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

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

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

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

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

Yes

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

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

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

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

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

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

Schedule R (Form 990) 2015

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) 2015

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) 2015

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: TO OPERATE AN ACADEMIC MEDICAL CENTER, PROVIDING HEALTHCARE & SUPPORTING RESEARCH & EDUCATION.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	11
5	Total number of individuals employed in calendar year 2015 (Part V, line 2a) ......	5	4,659
6	Total number of volunteers (estimate if necessary) .............	6	203
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	1,101,542
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	722,534

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	5,146,849	5,339,010
9	Program service revenue (Part VIII, line 2g) .........	764,065,900	818,253,209
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	3,434,133	3,924,013
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	7,873,127	7,918,958
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	780,520,009	835,435,190
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	474,240	523,341
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	301,011,655	333,521,143
16a	Professional fundraising fees (Part IX, column (A), line 11e) .....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	463,816,088	482,237,432
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	765,301,983	816,281,916
19	Revenue less expenses. Subtract line 18 from line 12.......	15,218,026	19,153,274
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	625,000,843	668,752,697
21	Total liabilities (Part X, line 26).............	449,204,306	472,911,393
22	Net assets or fund balances. Subtract line 21 from line 20.....	175,796,537	195,841,304

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 719,090,702 including grants of $ 523,341 ) (Revenue $ 824,332,622 )
	PATIENT CARE SERVICESPLEASE SEE SCHEDULE O FOR DETAIL REGARDING PATIENT CARE SERVICES IN THE STATEMENT OF COMMUNITY BENEFIT.

4b	(Code: ) (Expenses $ 17,785,183 including grants of $ ) (Revenue $ )
	AS THE ONLY ACADEMIC MEDICAL CENTER IN THE REGION, UHS IS COMMITTED TO EDUCATION IN ORDER TO PREPARE HEALTHCARE PROFESSIONALS FOR THE FUTURE. EDUCATION IS AN ONGOING ENDEAVOR FOR ALL EMPLOYEES, MANY OF WHOM WILL HAVE AN OPPORTUNITY TO SERVE AS TEACHERS AS WELL AS STUDENTS. THE MEDICAL CENTER COLLABORATES WITH THE GRADUATE SCHOOL OF MEDICINE AND OTHER ACADEMIC INSTITUTIONS, AND IT MAINTAINS A LEARNING ENVIRONMENT WITH DEVOTION TO TECHNOLOGICAL AND TREATMENT ADVANCES THAT PROVIDE BETTER CARE FOR PATIENTS.

4c	(Code: ) (Expenses $ 20,083,140 including grants of $ ) (Revenue $ )
	UNREIMBURSED CHARITY CARE AND SELF-PAY DISCOUNT

4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses756,959,025

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	12,936,642	0	1,774,941

1a	Federated campaigns..		1a
b	Membership dues..		1b
c	Fundraising events..		1c	250,196
d	Related organizations		1d
e	Government grants (contributions)		1e

f	All other contributions, gifts, grants, and similar amounts not included above		1f	5,088,814

g	Noncash contributions included in lines 1a-1f:$ 85,168
h Total.Add lines 1a-1f.......		5,339,010

			Business Code
2a	NET PATIENT SERVICE REVENUE	621500	791,962,327	791,962,327
b	PROGRAM SERVICE REVENUE	621400	25,892,125	25,690,204	201,921
c	EHR MEANINGFUL USE	621400	398,757	398,757
d
e
f	All other program service revenue.
g Total.Add lines 2a–2f.....			818,253,209

3 Investment income (including dividends, interest, and othersimilar amounts) ..........			1,167,003		596,541	570,462
4 Income from investment of tax-exempt bond proceeds
5 Royalties...........
		(ii) Personal	(i) Real
6a	Gross rents		6,281,334
b	Less: rental expenses		0
c	Rental income or (loss)		6,281,334
d	Net rental income or (loss)......			6,281,334	6,281,334
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory	57,105	2,699,905
b	Less: cost or other basis and sales expenses	0	0
c	Gain or (loss)	57,105	2,699,905
d	Net gain or (loss).....			2,757,010			2,757,010
8a	Gross income from fundraising events (not including $ 250,196of contributions reported on line 1c). See Part IV, line 18 ....
	a		0
b	Less: direct expenses ...b		138,823
c	Net income or (loss) from fundraising events..			-138,823			-138,823
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..
Business Code			Miscellaneous Revenue
11a	PARKING REVENUE		812930	949,616			949,616
b	OTHER SERVICES		624100	523,751			523,751
c	TELEPHONE SERVICES		812900	303,080		303,080
d	All other revenue ....
e	Total. Add lines 11a–11d ......			1,776,447
12	Total revenue. See Instructions......			835,435,190	824,332,622	1,101,542	4,662,016

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21	471,238	471,238
2	Grants and other assistance to individuals in the United States. See Part IV, line 22	52,103	52,103
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 ....	8,891,316		8,891,316
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	227,482	212,354	15,128
7	Other salaries and wages	265,693,158	248,024,563	17,668,595
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	16,051,218	14,983,812	1,067,406
9	Other employee benefits .......	25,952,764	24,226,905	1,725,859
10	Payroll taxes ...........	16,705,205	15,594,309	1,110,896
11	Fees for services (non-employees):
a	Management ......	13,380,393	12,490,597	889,796
b	Legal .........	24,971,121	23,310,541	1,660,580
c	Accounting ...........	409,945	382,684	27,261
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	104,582,135	97,627,423	6,954,712
12	Advertising and promotion ....	2,552,863	2,383,098	169,765
13	Office expenses .......	12,451,421	11,623,402	828,019
14	Information technology ......	116,252	108,521	7,731
15	Royalties ..
16	Occupancy ...........	16,272,502	15,190,381	1,082,121
17	Travel ............	1,193,059	1,113,721	79,338
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .
19	Conferences, conventions, and meetings ....	631,294	589,313	41,981
20	Interest ...........	12,553,011	12,553,011
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization ..	29,518,084	29,518,084
23	Insurance ...	6,426,612	6,426,612
24	Other expenses. Itemize expenses not covered above (List miscellaneous expenses in line 24e. If line 24e amount exceeds 10% of line 25, column (A) amount, list line 24e expenses on Schedule O.)
a	MEDICAL SUPPLIES	200,198,178	186,884,999	13,313,179
b	BAD DEBT EXPENSE	55,048,897	51,388,145	3,660,752
c	EQUIPMENT RENTAL	1,931,665	1,803,209	128,456
d
e	All other expenses
25	Total functional expenses. Add lines 1 through 24e	816,281,916	756,959,025	59,322,891	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).

1	Cash–non-interest-bearing ........			80,177,614	1	99,686,517
2	Savings and temporary cash investments .........			8,205,028	2
3	Pledges and grants receivable, net ......				3
4	Accounts receivable, net .............			91,144,690	4	120,405,259
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 ........			5,265,960	8	5,899,901
9	Prepaid expenses and deferred charges ......			1,639,893	9	2,530,804
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	499,862,347
b	Less: accumulated depreciation	10b	269,086,461	223,678,388	10c	230,775,886
11	Investments—publicly traded securities .			167,386,484	11	178,887,614
12	Investments—other securities. See Part IV, line 11 .....				12
13	Investments—program-related. See Part IV, line 11 ..			2,414,943	13	2,426,827
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			45,087,843	15	28,139,889
16	Total assets. Add lines 1 through 15 (must equal line 34)...			625,000,843	16	668,752,697

17	Accounts payable and accrued expenses .....	137,332,847	17	156,258,264
18	Grants payable ...		18
19	Deferred revenue .........		19	3,889,085
20	Tax-exempt bond liabilities .........	264,881,933	20	282,242,004
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 ..	21,665,905	23	13,173,005
24	Unsecured notes and loans payable to unrelated third parties ..		24
25	Other liabilities (including federal income tax, payables to related third parties, and other liabilities not included on lines 17-24). Complete Part X of Schedule D	25,323,621	25	17,349,035
26	Total liabilities. Add lines 17 through 25..	449,204,306	26	472,911,393

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	165,994,834	27	184,506,641
28	Temporarily restricted net assets ...........	3,085,956	28	3,820,201
29	Permanently restricted net assets	6,715,747	29	7,514,462
	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 ...........	175,796,537	33	195,841,304
34	Total liabilities and net assets/fund balances ........	625,000,843	34	668,752,697