TY 2014 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) Chris Howard........................................................................ Chairman	2.00 .......................0.00	X	X	0	0	0
(2) Jon Jennings........................................................................ Chairman-Pt Yr	1.00 .......................0.00	X	X	0	0	0
(3) M Michelle Hood........................................................................ Trustee/Ex-off	1.00 .......................50.00	X	X	0	974,647	261,258
(4) Sr Michele Aronica RSM........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(5) Lauren Epstein........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(6) Sr Mary Morey RSM........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(7) Jim Koelbl DDS........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(8) Joseph Gray........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(9) Karen Hart........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(10) Benjamin Russell MD........................................................................ Trustee/VP-Pt Y	50.00 .......................0.00	X		410,797	0	25,775
(11) Margaret Hourigan........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(12) David Langdon MD........................................................................ Trus/Exoff-Pt Y	1.00 .......................0.00	X		0	0	0
(13) Paul Lones........................................................................ Trustee,Vice Ch	2.00 .......................0.00	X	X	0	0	0
(14) Lisa Miller........................................................................ Trustee-Pt Yr	1.00 .......................0.00	X		0	0	0
(15) William Schirmer MD........................................................................ Trustee	1.00 .......................0.00	X		0	0	0
(16) Eileen Skinner........................................................................ Trustee/CEO	50.00 .......................0.00	X	X	435,999	0	89,772
(17) David L Small........................................................................ Trustee	1.00 .......................0.00	X		0	0	0

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(18) Sister Kathleen M Smith RSM........................................................................ Trustee	1.00 .......................0.00	X				0	0	0
(19) John Southall MD........................................................................ Trustee	40.00 .......................10.00	X				268,305	78,705	31,568
(20) Debra D Taylor........................................................................ Trustee	1.00 .......................0.00	X				0	0	0
(21) Thomas Yoder........................................................................ Trustee-Pt Yr	1.00 .......................0.00	X				0	0	0
(22) Nelson A Toner........................................................................ Trustee-Pt Yr	1.00 .......................0.00	X				0	0	0
(23) Glenn Martin........................................................................ Secretary	1.00 .......................50.00		X			0	384,473	94,093
(24) Derrick Hollings........................................................................ EMHS Treasurer	1.00 .......................50.00		X			0	547,456	127,536
(25) Judi Hawkes........................................................................ VP Phys Pract	50.00 .......................0.00		X			144,150	0	8,008
(26) Stephen McDonnell........................................................................ CFO/Asst Treas	50.00 .......................1.00		X			0	0	0
(27) Bette Neville........................................................................ VP Nursing/CNO	50.00 .......................0.00		X			200,503	0	30,656
(28) Robert Nutter........................................................................ VP & COO	50.00 .......................0.00		X			319,570	0	34,626
(29) Gary Conner........................................................................ Interim VP/CFO	50.00 .......................0.00		X			133,400	0	0
(30) Scott Rusk MD........................................................................ VP MD Admin/CMO	50.00 .......................0.00		X			384,280	0	34,845
(31) Melissa Skahan........................................................................ VP Mission Int	50.00 .......................0.00		X			112,559	0	29,981
(32) Theodore Helberg III........................................................................ VP HR So	0.00 .......................50.00		X			0	202,983	24,571
(33) Geoff Tolzmann........................................................................ VP Phys Pract	50.00 .......................0.00		X			0	0	0
(34) Christopher Kleeman........................................................................ Medical Director	50.00 .......................0.00			X		605,635	0	31,106
(35) John Wahlig........................................................................ Physician	50.00 .......................0.00			X		933,762	0	34,395
(36) Lee Thibodeau........................................................................ Physician	50.00 .......................0.00			X		963,556	0	35,327
(37) Gregory Pomeroy........................................................................ Medical Director	50.00 .......................0.00			X		855,804	0	30,314
(38) Adam Owen........................................................................ Medical Director	50.00 .......................0.00			X		509,280	0	26,327
(39) Michael R Hachey........................................................................ Former CFO	50.00 .......................0.00				X	612,448	0	22,367

(A) Name and business address	(B) Description of services	(C) Compensation
Accretive Health Inc 401 N MICHIGAN SUITE 2700 Chicago,IL60611	Revenue Cycle Mgmt	8,815,999
Dirigo Management Company and Flooring One City Center Portland,ME041014009	Rent Mgmt Company	5,364,008
GE Healthcare PO Box 640944 Pittsburgh,PA152640944	Software Support	1,406,591
Allscripts Healthcare LLC PO Box 1473 Escondido,CA92033	Software Support	3,045,782
SYNERNET INC 110 FREE STREET PORTLAND,ME041013908	Maintenance Contract	1,146,544
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 38

Do not include amounts reported on lines 6b, 7b, 8b, 9b, and 10b of Part VIII.	(A) Total expenses	(B) Program service expenses	(C) Management and general expenses	(D) Fundraising expenses
1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21 ....	0
2	Grants and other assistance to domestic individuals. See Part IV, line 22 ....	0
3	Grants and other assistance to foreign organizations, foreign governments, and foreign individuals. See Part IV, lines 15 and 16 ............	0
4	Benefits paid to or for members ....	0
5	Compensation of current officers, directors, trustees, and key employees ....	2,694,794	1,893,083	801,711
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....	0
7	Other salaries and wages ....	103,161,892	97,505,192	5,656,700
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	3,288,384	3,137,710	150,674
9	Other employee benefits .......	14,560,973	14,355,916	205,057
10	Payroll taxes ...........	6,929,907	6,535,132	394,775
11	Fees for services (non-employees):
a	Management ......	0
b	Legal .........	5,339	5,339
c	Accounting ...........	61,761		61,761
d	Lobbying ...........	0
e	Professional fundraising services. See Part IV, line 17	0
f	Investment management fees ......	16,914	12,710	4,204
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O) ....	29,625,811	23,107,632	6,518,179
12	Advertising and promotion ....	535,883	535,883
13	Office expenses .......	5,118,972	3,454,965	1,664,007
14	Information technology ......	66,808	26,854	39,954
15	Royalties ..	0
16	Occupancy ...........	7,772,990	5,834,449	1,938,541
17	Travel ............	169,020	161,007	8,013
18	Payments of travel or entertainment expenses for any federal, state, or local public officials ......	0
19	Conferences, conventions, and meetings ....	384,130	322,030	62,100
20	Interest ...........	2,294,689	1,724,390	570,299
21	Payments to affiliates .......	13,837,220	10,398,256	3,438,964
22	Depreciation, depletion, and amortization .....	0
23	Insurance ..............	2,642,815	2,521,721	121,094
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	Contractual Allowances	282,910,619	282,910,619
b	Medical Supplies Expense	37,508,184	37,508,184
c	Provision for uncollectible ac	19,083,611	19,083,611
d	Charity Care	13,808,471	13,808,471
e	All other expenses	9,792,892	6,914,094	2,878,798
25	Total functional expenses. Add lines 1 through 24e	556,272,079	531,757,248	24,514,831	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

Part X Balance Sheet Check if Schedule O contains a response or note to any line in this Part X ..............
	1	Cash–non-interest-bearing .............	6,410	1	5,410
2	Savings and temporary cash investments .........	10,736,070	2	10,456,457
3	Pledges and grants receivable, net ...........		3	0
4	Accounts receivable, net .............	37,807,885	4	37,259,957
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	0
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
			6	0
7	Notes and loans receivable, net .............	34,993	7	133,209
8	Inventories for sale or use ..............	4,416,925	8	4,496,776
9	Prepaid expenses and deferred charges ..........	3,495,026	9	1,495,339
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	138,698,215
b	Less: accumulated depreciation .....	10b	23,289,198	122,339,675	10c	115,409,017
11	Investments—publicly traded securities ..........		11	0
12	Investments—other securities. See Part IV, line 11 .....		12	0
13	Investments—program-related. See Part IV, line 11 .....		13	0
14	Intangible assets ...............	3,217,667	14	3,194,667
15	Other assets. See Part IV, line 11 ...........	10,039,176	15	14,223,569
16	Total assets. Add lines 1 through 15 (must equal line 34)......	192,093,827	16	186,674,401
	17	Accounts payable and accrued expenses .........	44,432,320	17	53,245,961
18	Grants payable .................		18
19	Deferred revenue ................	122,241	19	134,528
20	Tax-exempt bond liabilities .............	60,585,000	20	58,625,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........		22
23	Secured mortgages and notes payable to unrelated third parties ..	8,114,549	23	7,501,936
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....................	17,057,138	25	21,770,522
26	Total liabilities. Add lines 17 through 25.........	130,311,248	26	141,277,947
		Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............	57,899,218	27	41,889,730
28	Temporarily restricted net assets ...........	1,993,819	28	1,649,546
29	Permanently restricted net assets ...........	1,889,542	29	1,857,178
	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 ...........	61,782,579	33	45,396,454
34	Total liabilities and net assets/fund balances ........	192,093,827	34	186,674,401

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

Complete if the organization is a section 501(c)(3) organization or a section 4947(a)(1) nonexempt charitable trust.
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Attach to Form 990 or Form 990-EZ.
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Information about Schedule A (Form 990 or 990-EZ) and its instructions is at www.irs.gov/form990.

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Part I

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2014

Page 2

Part II

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

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3	The value of services or facilities furnished by a governmental unit to the organization without charge..
4	Total. Add lines 1 through 3
5	The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6	Public support. Subtract line 5 from line 4.

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
7	Amounts from line 4..
8	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources...
9	Net income from unrelated business activities, whether or not the business is regularly carried on..
10	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.)..
11	Total support Add lines 7 through 10.

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

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

Section C. Computation of Public Support Percentage

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

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

16a

33 1/3% support test—2014. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2013. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

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

10%-facts-and-circumstances test—2013. If the organization did not check a box on line 13, 16a, 16b, or 17a, and line
15 is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here.
Explain in Part VI how the organization meets the "facts-and-circumstances" test. The organization qualifies as a publicly
supported organization ................................................ right arrow

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

Schedule A (Form 990 or 990-EZ) 2014

Page 3

Part III

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

Section A. Public Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
1	Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
2	Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
3	Gross receipts from activities that are not an unrelated trade or business under section 513..
4	Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5	The value of services or facilities furnished by a governmental unit to the organization without charge..
6	Total. Add lines 1 through 5.
7a	Amounts included on lines 1, 2, and 3 received from disqualified persons...
b	Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
c	Add lines 7a and 7b..
8	Public support (Subtract line 7c from line 6.)

Section B. Total Support

Calendar year (or fiscal year beginning in)		(a) 2010	(b) 2011	(c) 2012	(d) 2013	(e) 2014	(f) Total
9	Amounts from line 6...
10a	Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
b	Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c	Add lines 10a and 10b.
11	Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12	Other income. Do not include gain or loss from the sale of capital assets (Explain in Part VI.) ..
13	Total support. (Add lines 9, 10c, 11, and 12.)..

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

Section C. Computation of Public Support Percentage

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

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

Section D. Computation of Investment Income Percentage

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

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

19a

33 1/3% support tests—2014. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2013. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

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

Schedule A (Form 990 or 990-EZ) 2014

Page 4

Part IV

Supporting Organizations

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

Section A. All Supporting Organizations

Yes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10a

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

10a

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

10b

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

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

11a

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

11b

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

11c

Schedule A (Form 990 or 990-EZ) 2014

Page 5

Part IV

Supporting Organizations (continued)

Section B. Type I Supporting Organizations

Yes

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

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

Section C. Type II Supporting Organizations

Yes

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

Section D. All Type III Supporting Organizations

Yes

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

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

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

Section E. Type III Functionally-Integrated Supporting Organizations

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

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

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

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

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

Yes

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

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2014

Page 6

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

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2014

Page 7

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

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

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

Schedule A (Form 990 or 990-EZ) 2014

Page 8

Part VI

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

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

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

OMB No. 1545-0047

2014

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

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

Special Rules

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

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

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

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

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

Cat. No. 30613XSchedule B (Form 990, 990-EZ, or 990-PF) (2014)

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

Page 2

Name of organization Mercy Hospital

Part I	Contributors (see instructions). Use duplicate copies of Part I if additional space is needed.
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
RESTRICTED	,	$RESTRICTED	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
(a) No.	(b) Name, address, and ZIP + 4	(c) Total contributions	(d) Type of contribution
		$	Person Payroll Noncash (Complete Part II for noncash contributions.)
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

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

Page 3

Name of organization Mercy Hospital

Part II	Noncash Property (see instructions). Use duplicate copies of Part II if additional space is needed.
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
(a) No. from Part I	(b) Description of noncash property given	(c) FMV (or estimate) (see instructions)	(d) Date received
		$
Schedule B (Form 990, 990-EZ, or 990-PF) (2014)

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

Page 4

Name of organization
Mercy Hospital

Employer identification number

01-0211534

Part III

Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10)
that total more than $1,000 for the year from any one contributor. Complete columns (a) through (e) and the following line entry. For organizations completing Part III, enter the total of exclusively religious, charitable, etc., contributions of $1,000 or less for the year. (Enter this information once. See instructions.) Arrow Bullet

$
Use duplicate copies of Part III if additional space is needed.

(a) No.
from
Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a) No.
from
Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a) No.
from
Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a) No.
from
Part I

(b) Purpose of gift

(d) Description of how gift is held

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

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

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- 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

2014

Open to Public
Inspection

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

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

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

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

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

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

Mercy Hospital

Employer identification number

01-0211534

Part I-A

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

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

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

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

Part I-B

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

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

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

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

Yes No

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

Yes No

If "Yes," describe in Part IV.

Part I-C

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

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

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

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

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

Yes No

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

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

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

Cat. No. 50084S

Schedule C (Form 990 or 990-EZ) 2014

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) 2011	(b) 2012	(c) 2013	(d) 2014	(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) 2014

Page 3

Part II-B

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

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

(a)

Yes

(b)

Amount

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

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

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

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

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

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

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

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

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

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

Yes

35,240

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

35,240

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 1i - Other Activities Description	Non-deductible dues

Schedule C (Form 990 or 990EZ) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

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

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

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Part I

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

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

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

Yes No

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

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


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

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

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

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

Yes No

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

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

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

Yes No

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

Part III

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

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

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

(i)

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

(ii)

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

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

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

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

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

Cat. No. 52283D

Schedule D (Form 990) 2014

Page 2

Part III

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

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

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No

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


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

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

Yes No

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

Part V

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

		(a)Current year	(b)Prior year	b (c)Two years back	(d)Three years back	(e)Four years back
1a	Beginning of year balance ....	1,889,542	1,835,722	1,778,042	1,041,946	1,052,325
b	Contributions ........			59,976	656,155	1,850
c	Net investment earnings, gains, and losses	-32,364	53,820	-2,297	79,941	-12,229
d	Grants or scholarships .....
e	Other expenditures for facilities and programs ........
f	Administrative expenses ....
g	End of year balance ......	1,857,178	1,889,542	1,835,722	1,778,042	1,041,946

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

Board designated or quasi-endowment SchDMd Bullet

Permanent endowment SchDMd Bullet

100.000 %

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

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

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

Part VI

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

Description of property		(b)Cost or other basis (other)	(c) Accumulated depreciation	(d) Book value
1a	Land .................	10,880,240		10,880,240
b	Buildings ................	77,345,237	6,690,955	70,654,282
c	Leasehold improvements ............	2,087,546	461,603	1,625,943
d	Equipment ................	44,452,242	15,886,091	28,566,151
e	Other .................	3,932,950	250,549	3,682,401
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).).......				115,409,017

Schedule D (Form 990) 2014

Page 3

Part VII

InvestmentsOther Securities. Complete if the organization answered 'Yes' to Form 990, Part IV, line 11b. See Form 990, Part X, line 12.

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








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

Part VIII

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

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









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

Part IX

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

(a) Description				(b) Book value
(1) A/R Workers Compensation Insurance				1,436,033
(2) Beneficial Interest in Perpetual Trusts				736,183
(3) Charitable Gift Annuity				19,917
(4) Estimated Prof. Liab. Claims Receivable				4,128,739
(5) Investment in Synernet				81,972
(6) Permanently Donor Restricted Funds				1,120,995
(7) Self insurance funds held by trustee				5,050,184
(8) Temporarily Donor Restricted Funds				1,649,546

Total. (Column (b) must equal Form 990, Part X, col.(B) line 15.)...........				14,223,569

Part X

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

1.(a) Description of liability		(b) Book value
Federal income taxes
Accrued Post Retirement Benefits		5,921,464
Affiliation Reserve for Indem Liab		913,514
Deferred Landmark Amort on MOB Land		468,645
Deferred Operating Lease Costs		1,739,686
Liability Under Cap Lease Obligation		397,967
Notes Payable to Related Org, EMHS		3,000,000
Operating Lease Obligation		293,220
Reserve for Asset Disposal Costs		441,422
Reserve for Prof. Liab. Self Ins.		4,128,739
Transition Cost Reserve-Mission Manager		276,198
Unfavorable Val of Operating Lease		4,189,667
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)		21,770,522
2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII

Schedule D (Form 990) 2014

Page 4

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

Part XII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return. Complete if the organization answered 'Yes' to Form 990, Part IV, line 12a.
1	Total expenses and losses per audited financial statements ...........		1
2	Amounts included on line 1 but not on Form 990, Part IX, line 25:
a	Donated services and use of facilities ..........	2a
b	Prior year adjustments ..............	2b
c	Other losses ................	2c
d	Other (Describe in Part XIII.) ............	2d
e	Add lines 2a through 2d......................		2e
3	Subtract line 2e from line 1.....................		3
4	Amounts included on Form 990, Part IX, line 25, but not on line 1:
a	Investment expenses not included on Form 990, Part VIII, line 7b ..	4a
b	Other (Describe in Part XIII.) ............	4b
c	Add lines 4a and 4b.......................		4c
5	Total expenses. Add lines 3 and 4c. (This must equal Form 990, Part I, line 18.) ......		5

Part XIII

Supplemental Information

Provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X, line 2; Part XI, lines 2d and 4b; and Part XII, lines 2d and 4b. Also complete this part to provide any additional information.

Return Reference

Explanation

Part V, Line 4: Intended uses of the endowment fund.

Endowment funds are designated for purposes that align within this organization's exempt purpose.

Part X : FIN48 Footnote

EMHS, its hospitals, and certain other affiliates have been determined by the Internal Revenue Service to be tax-exempt charitable organizations as described in Section 501(c)(3) or 501(c)(2) of the Internal Revenue Code ("Code") and, accordingly, are exempt from federal income taxes on related income pursuant to Section 501(a) of the Code. Accordingly, no provision for federal income taxes has been recorded in the accompanying consolidated financial statements for these organizations.Tax-exempt charitable organizations could be required to record an obligation for income taxes as the result of a tax position they have historically taken on various tax exposure items including unrelated business income or tax status. Under guidance issued by the Financial Accounting Standards Board (FASB), assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the more-likely-than-not threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of income tax expense. The System has evaluated its tax position taken or expected to be taken on income tax returns and concluded the impact to be not material.Certain of the System's affiliates are taxable entities. Deferred taxes related to these entities are based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates in effect in the years the differences are expected to reverse. The deferred tax assets and liabilities for these entities are not material.

Schedule D (Form 990) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

SCHEDULE H (Form 990)

Department of the TreasuryInternal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

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? ......

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		(a) Number of activities or programs (optional)	(b) Persons served (optional)	(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) ..		2,741	6,042,414	58,162	5,984,252	2.500 %
b	Medicaid (from Worksheet 3, column a) ....		10,641	26,136,438	17,116,357	9,020,081	3.800 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) .			45,103		45,103	0.010 %
d	Total Financial Assistance and Means-Tested Government Programs .		13,382	32,223,955	17,174,519	15,049,436	6.310 %
Other Benefits		22	350	978,718		978,718	0.400 %
e	Community health improvement services and community benefit operations (from Worksheet 4) ..	22	350	978,718		978,718	0.400 %
f	Health professions education (from Worksheet 5) ..	28		364,342		364,342	0.200 %
g	Subsidized health services (from Worksheet 6) ..
h	Research (from Worksheet 7)
i	Cash and in-kind contributions for community benefit (from Worksheet 8)	3		1,060		1,060
j	Total. Other Benefits ..	53	350	1,344,120		1,344,120	0.600 %
k	Total. Add lines 7d and 7j .	53	13,732	33,568,075	17,174,519	16,393,556	6.910 %

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

Schedule H (Form 990) 2014

Page

Part II

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

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

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. ......

8,350,750

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. ......

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).....

69,021,059

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

97,666,187

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

-28,645,128

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

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

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

Schedule H (Form 990) 2014

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?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	Mercy Hospital 144 State Street Portland,ME04101 www.mercyhospital.org 38065	X	X	X

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

Section B. Facility Policies and Practices

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

	Mercy Hospital
Name of hospital facility or letter of facility reporting group

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

Yes

Community Health Needs Assessment

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

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 14

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

Yes

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

Yes

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

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): https://mercyhospital.org/Home.aspx

Other website (list url): www.emhs.org/Community-Benefit/CHNA/2014

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 14

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

If "Yes" (list url):

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

10b

Yes

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

12a

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

12a

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

12b

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

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

	Mercy Hospital
Name of hospital facility or letter of facility reporting group

Yes

Financial Assistance Policy (FAP)

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

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

Yes

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

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 150.0000%
and FPG family income limit for eligibility for discounted care of 250.0000%

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): www.mercyhospital.org/For-Patients-Visit

The FAP application form was widely available on a website (list url): www.mercyhospital.org/For-Patients-Visit

A plain language summary of the FAP was widely available on a website (list url):
www.mercyhospital.org/For-Patients-Visit

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

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

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

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

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

Other (describe in Section C)

Billing and Collections

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

Yes

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

	Mercy Hospital
Name of hospital facility or letter of facility reporting group

Yes

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

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

Indicate which efforts the hospital facility or other authorized party made before initiating any of the actions listed (whether or not checked) in line 18. (check all that apply):

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

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

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

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

Yes

If "No," indicate why:

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

The hospital facility’s policy was not in writing

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

Other (describe in Section C)

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

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

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

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

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

Other (describe in Section C)

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

If "Yes," explain in Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2014

Page

Part 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
Part V, Line 3j - Description of Other Needs Assessment	3g The data gathered from the 2014 Community Health Needs Assessment (CHNA) allowed Mercy Hospital to identify areas of significant need including priority concerns, gaps in healthcare services, and barriers to care. A hospital task force considered the data and identified areas of significant needs to be addressed, as well as areas of need unable to be addressed by the hospital. An implementation strategy was presented and adopted by the hospitals board of directors. The Implementation Strategy consists of actions the hospital intends to take to address the health need. Programs/resources the hospital plans to commit to address the health need were identified along with planned collaborations with other area organizations.3h To assure broad representation of the communitys interests, key public health and healthcare partners were engaged and consulted throughout the design and implementation phase of the 2014 CHNA. Qualitative Stakeholder Surveys were distributed to public and community health representatives who directly serve the communities interests. Sampling was monitored throughout the survey dissemination to assure a minimum threshold of respondents providing local insight to priority community health needs and opportunities. Survey outreach was conducted by the local hospital, partner healthcare facilities in the same region, the local public health liaison, and a local comprehensive community health coalition.3i The 2014 CHNA report presents findings of three sets of data, by county. The data sets include absolute indicators of health status as gathered in 2010 using BRFSS and other primary source data gathered using empirical methods; A qualitative stakeholder survey conducted in 2014 and 2014 County Health Rankings indicator set. The qualitative stakeholder survey was disseminated broadly to public health and community stakeholders who serve local populations. As such, the Community Health Needs Assessment does not provide for random assignment of survey respondents, nor does it attempt to function as a surveillance instrument. Limitations aside, taken together, the data provide a unique perspective on the health of Maine communities, with a focus on the social, environmental, and clinical factors which influence the ability of populations to lead healthy lives.
Part V, Line 5 - Account Input from Persons Who Represent the Community	Key collaborators were convened as an advisory committee to review the Needs Assessment and assist in the dissemination of a survey instrument to a broad base of key informants representing healthcare, public health, and community stakeholders to identify issues and opportunities for collaborative community health improvement. These collaborators include: Local Public Health District Officials: Stacy Boucher, Aroostook District Coordinating Council; Paula Thomson, Central District Coordinating Council; Becca Matusovich, Cumberland District Public Health Council; Alfred May, Downeast Public Health Council; Jessica Fogg, Penquis District Coordinating Council; Clarisa Weber, Wabanaki Public Health. Healthy Maine Partnerships (contracted entities functioning as part of the local public health system): Jamie Comstock, Bangor Region Public Health & Wellness; Elsie Flemings, Healthy Acadia; Carol Bell, Healthy Aroostook; Anne Lang, Healthy Casco Bay; Joanne Joy, Healthy Communities of the Capital Area; Zoe Miller, Healthy Lakes; Fran Mullin, Healthy Northern Kennebec; Kristen Dow, Healthy Portland; Lucie Rioux, Healthy Rivers; Karen Hawkes, Healthy Sebasticook Valley; Malissa Boynton, Healthy Wabanaki; Vyvyenne Ritchie, Healthy Waldo County; Jane McGillicuddy, Partnership for a Healthy Northern Penobscot; Robin Mayo, Piscataquis Public Health Council; Ellen Willinghan, Power of Prevention; Bill Primmerman, Somerset Public Health; Eleody Libby, Washington County: One Community. Other Entities: Federally Qualified Health Centers, Bangor Public Health and Community Services, Portland Public Health.
Part V, Line 6a - List Other Hospital Facilities that Jointly Conducted Needs Assessment	The CHNA was developed and implemented as a collaborative between the EMHS Healthcare System and other independent hospitals serving Maine communities. EMHS Member Organizations: Acadia Hospital, Blue Hill Memorial Hospital, Charles A. Dean Memorial Hospital, Eastern Maine Medical Center, Inland Hospital, Mercy Hospital, Sebasticook Valley Health, and TAMC. Partnering Hospitals: Cary Medical Center, Down East Community Hospital, Houlton Regional Hospital, Maine Coast Memorial Hospital, Mayo Regional Hospital, Millinocket Regional Hospital, Mount Desert Island Hospital, Northern Maine Medical Center, and Redington-Fairview General Hospital.
Part V, Line 7d - Description of Making Needs Assessment Widely Available	Instructions on the website assist viewers to download and /or print sections of the report. Individuals without computer or printer access were provided a phone number where they can request a printed assessment.
Part V, Line 11 - Explanation of Needs Not Addressed and Reasons Why	Mercy Hospital non-selected priorities:Unemployment/economic opportunityHunger/food insecurityOral HealthDental CareFearBrief explanation why they were not included: While we support the non-selected priorities, we are not positioned to impact them directly in 2014/2015. Our 2013 CHNA recognized the significant need for oral health services for the vulnerable, the task force felt that Mercy Hospital was not positioned to address directly.
Part V, Line 22d - Other Billing Determination of Individuals Without Insurance	The hospital discounts charges to patients eligible for financial assistance based on income levels and other factors.Full Financial Assistance: 100% DiscountA patient whose family income (as calculated on the Financial Assistance Application/Disclosure Form) is equal to or less than 150% of the most recent Department of Health and Human Services defined poverty level (Federal Poverty Guidelines) qualifies for a full (100%) Financial Assistance discount with no out-of-pocket responsibility.Partial Financial Assistance: 50% DiscountA patient whose family income (as calculated on the Financial Assistance Appication/Disclosure Form) is more than 150%, but less than 250%, of the most recent Department of Health and Human Services defined poverty level (Federal Poverty Guidelines) qualifies for Partial Financial Assistance, a 50% discount of charges.All uninsured patients with income greater than 250% of poverty are eligible for a 27% discount from charges.The discounted rate for Mercy Hospital's FAP eligible patients is below the lowest negotiated commercial discounted rate.

Schedule H (Form 990) 2014

Page

Part VFacility Information (continued)

Section D. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?30
Name and address		Type of Facility (describe)
1	All About Women 195 Fore River Parkway Suite 310 Portland,ME04102	Medical Office Building - Physician Svc
2	Breast Care Specialists of Maine 195 Fore River Parkway Suite 250 Portland,ME04102	Medical Office Building - Physician Svc
3	Falmouth Internal Medicine 75 Clearwater Drive Suite 106 Falmouth,ME04105	Medical Office Building - Physician Svc
4	Fore River Family Practice 195 Fore River Parkway Suite 106 Portland,ME04102	Medical Office Building - Physician Svc
5	Gorham Crossing Primary CareExpress Care 19 South Gorham Crossing Gorham,ME04038	Medical Office Building - Physician Svc
6	HematologyOncology Clinic 195 Fore River Parkway Suite 360 Portland,ME04102	Medical Office Building - Physician Svc
7	Lymphedema Clinic 1364 Congress Street Suite 3 Portland,ME04102	Medical Office Building - Physician Svc
8	Maine Spine Surgery 195 Fore River Parkway Suite 440 Portland,ME04102	Medical Office Building - Physician Svc
9	The Mattina R Proctor Diabetes Center 144 State Street 4th Floor Portland,ME04101	Medical Office Building - Physician Svc
10	Mercy Cardiology 144 State Street 5th Floor Portland,ME04101	Medical Office Building - Physician Svc
11	Mercy Gastroenterology at Casco Bay 25 Long Creek Drive South Portland,ME04106	Medical Office Building - Physician Svc
12	Mercy Hospital Recovery Center 40 Park Road Westbrook,ME04092	Medical Office Building - Physician Svc
13	Mercy Mammography 195 Fore River Parkway Suite 260 Portland,ME04102	Medical Office Building - Mammography Svc
14	Mercy Pain Center 144 State Street 1st Floor Portland,ME04101	Medical Office Building - Physician Svc
15	Mercy Physical Therapy 1364 Congress Street Suite 3 Portland,ME04102	Medical Office Building - Physical Therapy Svc
16	Mercy Primary Care South 778 Main Street Suite 1 South Portland,ME04106	Medical Office Building - Physician Svc
17	MKM ENT Associates 43 Baxter Boulevard Portland,ME04101	Medical Office Building - Physician Svc
18	MKM ENT Associates 413 Alfred Road Suite 201 Biddeford,ME04005	Medical Office Building - Physician Svc
19	New England Eating Disorder Program 144 State Street 6th Floor Portland,ME04101	Medical Office Building - Physician Svc
20	New England Foot & Ankle Specialists 195 Fore River Parkway Suite 210 Portland,ME04102	Medical Office Building - Physician Svc
21	Portland Internal Medicine 43 Baxter Boulevard Portland,ME04101	Medical Office Building - Physician Svc
22	Portland Surgical Associates 195 Fore River Parkway Suite 420 Portland,ME04102	Medical Office Building - Physician Svc
23	Portland Thoracic Surgery 195 Fore River Pkwy Suite 490 Portland,ME04101	Medical Office Building - Physician Svc
24	Pulmonary Critical Care & Sleep Medicine 144 State Street 3rd Floor Portland,ME04101	Medical Office Building - Physician Svc
25	Standish Family Practice 111 Ossipee Trail Standish,ME04084	Medical Office Building - Physician Svc
26	West Falmouth Family Practice 75 Gray Road Falmouth,ME04105	Medical Office Building - Physician Svc
27	Westbrook Express Care 40 Park Road Westbrook,ME04092	Medical Office Building - Physician Svc
28	Windham Family Practice & Express Care 409 Roosevelt Trail Windham,ME04062	Medical Office Building - Physician Svc
29	Wound Healing Center 144 State Street 4th Floor Portland,ME04101	Medical Office Building - Physician Svc
30	Yarmouth Primary Care & Express Care 385 Route One Yarmouth,ME04096	Medical Office Building - Physician Svc

Schedule H (Form 990) 2014

Page

Part VI

Supplemental Information

Provide the following information.

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

Form and Line Reference	Explanation
Part I, Line 6a - Related Organization Community Benefit Report	The Mercy Hospital community benefit report is contained in an annual community benefit report prepared by Eastern Maine Healthcare Systems which is the parent organization of all related organizations.
Part I, Line 7 - Explanation of Costing Methodology	Ratio of Patient Care Cost-to-Charges is used in calculations.
Part I, Line 7, Column F - Explanation of Bad Debt Expense	$19,083,611 of bad debt expense, $13,808,471 of charity care, $282,910,619 of contractual allowances is included on Form 990, Part IX, line 25, column (A).
Part III, Line 2 - Methodology Used To Estimate Bad Debt Expense	The costing methodology used to determine the amount is cost to charge ratio.
Part III, Line 3 - Methodology of Estimated Amount & Rationale for Including in Community Benefit	Patient and trade accounts receivable are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a valuation allowance based on its assessment of the current status of individual accounts. Balances that are still outstanding after management has used reasonable collection efforts are written off through a charge to the valuation allowance and the applicable patient accounts receivable. Credit is extended without collateral.
Part III, Line 8 - Explanation Of Shortfall As Community Benefit	Medicare losses should be treated as a community benefit because the losses are incurred in performing an important public service and Maine hospitals experience one of the lowest Medicare reimbursement rates in the country.
Part III, Line 9b - Provisions On Collection Practices For Qualified Patients	All account guarantors who express an inability to pay inpatient and outpatient services will be screened for eligibility for charity care using an application and guidelines established by Mercy Hospital. An account may be reconsidered for charity care at any time when new information is available about a patients inability to pay.
Part VI - Needs Assessment	See Part V - Community Health Needs Assessment section
Part VI - Patient Education of Eligibility for Assistance	Mercys Financial Assistance policy describes how the organization informs and educates patients on Financial Assistance. Public Notice of the availability of assistance through this policy is made through each of the following means: 1. Posting notices in a visible manner in locations where there is a high volume of inpatient or outpatient admitting/registration, such as emergency departments, billing offices, admitting offices, and hospital outpatient service settings. 2. Posting notice of the availability of assistance and contact names and phone numbers on Mercy Hospitals website. 3. Providing uninsured patients a matrix outlining the types of financial assistance available. Upon request, a full text copy of the Financial Assistance policy is made available. Mercy Hospital has developed a professional model for financial counseling for all patients without insurance and has staff onsite to meet individually from 8am to 5pm on Monday through Friday. This includes comprehensive screens for potential resources such as governmental insurance and disability, enrollment on the Health Insurance Marketplace, and commercial insurance. Financial counselors have daily huddles, assigned work lists, and accountabilities to engage and develop an ongoing rapport with uninsured and vulnerable populations. They are available Monday through Friday from 8am-5pm and routinely meet with patients in the community to complete applications. With the advent of the ACA, the financial counselors have all been trained to act as Certified Application Counselors and helped to enroll both Mercy patients as well as to provide staffing for the community at the Portland Public Library.
Part VI - Community Information	Mercy Hospital is a community hospital comprised of three acute inpatient locations, seven primary care practices, five Express Care facilities, and 13 specialty practices. Mercys service area is the greater Portland metropolitan area, roughly comprised of Maines Cumberland County. The population of Cumberland County is 289,977. While Portland is the largest city in Maine, much of the service area is made up of small towns and rural areas surrounding Portland. The Portland area is experiencing an increase in diversity, with at least 6.3% of area residents born outside of the United States. Many of these new Mainers are refugees and asylum-seekers, who bring a unique set of circumstances and health needs to the community. Approximately 10.8% of Cumberland County households fall below the federal poverty level. Median household income in the county is $59,560. Cumberland County has an uninsured rate of 11.7% after the implementation of the Affordable Care Act. 12.8 % of Mercy patients had MaineCare during 2014. Of Maines 16 counties, Cumberland County ranks third in health outcomes and 2nd for quality of life. Residents have the highest admission rates for depressive disorders, as well as high rates for several sexually transmitted infections. In addition to new Mainers, people experiencing poverty, homelessness, and mental illness are among Cumberland Countys most vulnerable residents. Residents are served by 241 primary care providers and six hospitals, varying from community hospitals such as Mercy to a large tertiary trauma center. Greater Portlands residents are also served by the presence of a Federally-Qualified Health Center (FQHC) with designation to serve the materially poor and homeless populations.
Part VI - Community Building Activities	Mercy Hospital's community building activities include participating in community events with the Greater Portland Immigrant and Refugee Health Collaborative, Public Health Departments, non-profits, and Portlands Health Equity Department to deliver health education sessions for the general public and vulnerable populations several times throughout the year. In 2015, Mercy provided Marketplace enrollment, Diabetes, and primary care materials at outreach events with the Health Equity Department. Mercys New England Foot and Ankle provides foot care, diabetic screening, and new shoes and socks for 200 homeless persons at the Oxford Street Shelter in Portland in December. Mercy Hospital provides Colonoscopy education to show support for colon health and as a conclusion to National Colorectal Cancer Awareness Month. Visitors are able to stroll through an inflatable, larger-than-life colon replica, taught lifesaving information about colon health, and offered four educational sessions followed by stories from survivors as follows: The Truth About Colon Cancer Dr. Karin Cole, Early Detection Saves Lives Dr. Chris Kleeman; Cutting Edge Treatment Dr. Roger Inhorn and Nutrition and Exercise Saves Lives Joan Lavery McLaughlin and Jennifer Daggett. Mercys Medical Neighborhood is a health collaborative that seeks to provide access to quality healthcare for all uninsured patients in the Greater Portland community through the expansion of our flexible care delivery system. The intent of this model is to promote healthy relationships and rational utilization of services and to reduce the overall cost associated with care of uninsured and underinsured patients. Mercys Emergency Department Care Managers play a critical role in developing a rapport with uninsured patients in the acute setting and engaging the necessary neighborhood resources such as peers, street outreach, or CHOWs to begin the desired transition to a medical home. Experts from area non-profits such as Amistads Peer Support Program, Milestones Homeless Outreach & Mobile Engagement (HOME) Team, outreach workers from the City of Portland, Preble Street, and the Oxford Street Shelter; and Community Health Outreach Workers (CHOWs) from Portlands Health Equity Department respond to the unique needs of the vulnerable patients in Mercys Medical Neighborhood. In 2015, Mercy Hospital advanced 444 individuals for Medicaid Disability, eliminated duplicative or unnecessary care through utilization review, and reduced ED utilization. McAuley Residence, a department of Mercy Hospital, is a comprehensive two-year program for women in early recovery with or without children. In the newly-renovated space that is owned by Community Housing of Maine (CHOM), McAuley Residence expanded from six apartments to fifteen apartments with beautiful common space for the residents to gather such as a community kitchen and large playroom for the children. The program serves women who have experienced addiction, homelessness, trauma, and domestic violence. Mercy Hospital provides the staffing (LMSW, LADC, and Peer Support Worker) at McAuley Residence and provides resources to operate the program annually. Women and their children also have access to the resources of the Mercy Addiction Services, Mercy Primary Care and Specialty Care; and New England Eating Disorders Program as needed. McAuley Residence partners with several area mental health providers, hosts Alcoholics and Narcotics Anonymous meetings, and welcomes community volunteers as both sponsors and mentors. DHHS Child Services and The Opportunity Alliance provide parenting coaches for families; and local colleges, universities, and Portland Adult Education services provide educational opportunities and counseling services. Key Bank provides individualized financial mentoring for the women to foster self-sufficiency and independence. Community Housing of Maine (CHOM, our housing partner) is a non-profit charitable organization that as its core mission provides advocacy, supportive housing, community inclusion, and stability for homeless and special needs populations across the state. CHOM also provides workforce housing for people who can't afford to live near their work. Fairchild Semiconductor provides education funding for women in college and Catherine Morrill provides reduced child care services for the children at McAuley Residence. In 2015, the program provided housing for nineteen women and their twenty one children; and delivered daily programming with intensive individualized coaching around parenting, sobriety, education, financial literacy, mental health, and nutrition. Eighty-two percent of the women, who entered in 2015 remained sober and seven of the fifteen women enrolled in higher education with the intent of completing their respective degree program. Garys House, a department of Mercy Hospital, is a safe, comfortable, and affordable home-away-from-home for families and individuals with loved ones receiving medical treatment in any greater Portland area hospital. Nine individual apartments and beautiful dining area and kitchen facilities provide respite for families. A donation of $15 per night is accepted for those able to pay for lodging. Several local organizations such as the United Way and UNUM volunteer regularly at Garys House. Mercy Hospital also donates $25,000 to the City of Portlands Health Equity Department each year in support of the Community Health Outreach Workers, whose role is to provide health education, outreach, and patient navigation for vulnerable populations.
Part VI - Explanation Of How Organization Furthers Its Exempt Purpose	Mercy Hospital extends medical staff privileges to all qualified community providers and continues to seek opportunity to support innovative care delivery approaches for improved community health through resource allocation and community partnerships such as Community Health Outreach Workers, chronic disease education for diverse communities, McAuley Residence, Mercy Hospital's Medical Neighborhood, and Health Insurance Marketplace enrollment activity. A majority of Mercy Hospital's governing body is comprised of persons who reside in Mercy's primary service area as evidence of our commitment to promote community.
Part VI - Affilated Health Care System Roles and Promotion	The 2014 Community Health Needs Assessment was conducted by Eastern Maine Healthcare Systems (EMHS) in collaboration with several member/affiliated hospitals and the many public health and community organizations across eight Maine counties. The Community Health Needs Assessment informs initiatives to promote community health across the system as well as within each member hospital local service area. Each member hospital adopts a local implementation strategy and community health improvement plan, tailored to meet local needs.In 2015,substance abuse remains a priority need in Cumberland County. In response, Mercy Hospital integrated addiction services into their primary care center and provided partial hospitalization and intensive outpatient program at the State Street facility. McAuley Residence, a comprehensive program for women with substance use disorder and their children has remarkable outcomes with 82% of the participants remaining clean and sober. Mercy's Medical Neighborhood primary goal is to ensure that the underinsured and uninsured have access to primary care and options for health insurance coverage. All financial counselors at Mercy are Certified Application Counselors and meet with patients at area nonprofits or shelters to complete necessary applications. Outreach efforts in 2015 included area churches and health fairs with the City of Portland to provide chronic disease education, primary care, and enrollment information.
Part VI - States Where Community Benefit Report Filed	ME

Schedule H (Form 990) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

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

Attach to Form 990.
SchJMediumBullet

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

OMB No. 1545-0047

2014

Open to Public Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Part I

Questions Regarding Compensation

Yes

Check the appropiate box(es) if the organization provided any of the following to or for a person listed in Form
990, Part VII, Section A, line 1a. Complete Part III to provide any relevant information regarding these items.

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

Travel for companions Payments for business use of personal residence

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

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

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

Yes

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

Yes

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

Yes

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

Yes

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

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

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

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

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

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

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

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

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

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

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

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

Yes

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

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

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

Cat. No. 50053T

Schedule J (Form 990) 2014

Page 2

Part II

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

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

(A) Name and Title		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation in column(B) reported as deferred in prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1Adam OwenMedical Director	(i) (ii)	413,374 ...............................	94,516 ...............................	1,390 ...............................	...............................	26,327 ...............................	535,607 ...............................	...............................
2Benjamin Russell MDTrustee/VP-Pt Y	(i) (ii)	288,894 ...............................	118,262 ...............................	3,641 ...............................	5,795 ...............................	19,980 ...............................	436,572 ...............................	...............................
3Bette NevilleVP Nursing/CNO	(i) (ii)	164,561 ...............................	32,782 ...............................	3,160 ...............................	5,070 ...............................	25,586 ...............................	231,159 ...............................	...............................
4Christopher KleemanMedical Director	(i) (ii)	359,355 ...............................	243,930 ...............................	2,350 ...............................	711 ...............................	30,395 ...............................	636,741 ...............................	...............................
5Derrick HollingsEMHS Treasurer	(i) (ii)	............................... 465,370	............................... 70,865	............................... 11,221	............................... 102,306	............................... 25,230	............................... 674,992	...............................
6Eileen SkinnerTrustee/CEO	(i) (ii)	407,780 ...............................	...............................	28,219 ...............................	64,035 ...............................	25,737 ...............................	525,771 ...............................	...............................
7Glenn MartinSecretary	(i) (ii)	............................... 348,106	............................... 33,250	............................... 3,117	............................... 67,078	............................... 27,015	............................... 478,566	...............................
8Gregory PomeroyMedical Director	(i) (ii)	493,356 ...............................	360,150 ...............................	2,298 ...............................	5,326 ...............................	24,988 ...............................	886,118 ...............................	...............................
9John Southall MDTrustee	(i) (ii)	252,927 ............................... 78,705	14,832 ...............................	546 ...............................	6,313 ...............................	25,255 ...............................	299,873 ............................... 78,705	...............................
10John WahligPhysician	(i) (ii)	742,210 ...............................	190,124 ...............................	1,428 ...............................	6,500 ...............................	27,895 ...............................	968,157 ...............................	...............................
11Judi HawkesVP Phys Pract	(i) (ii)	143,477 ...............................	...............................	673 ...............................	3,433 ...............................	4,575 ...............................	152,158 ...............................	...............................
12Lee ThibodeauPhysician	(i) (ii)	738,206 ...............................	221,844 ...............................	3,506 ...............................	6,500 ...............................	28,827 ...............................	998,883 ...............................	...............................
13M Michelle HoodTrustee/Ex-off	(i) (ii)	............................... 788,728	............................... 171,536	............................... 14,383	............................... 241,324	............................... 19,934	............................... 1,235,905	...............................
14Michael R HacheyFormer CFO	(i) (ii)	232,647 ...............................	50,469 ...............................	329,332 ...............................	1,853 ...............................	20,514 ...............................	634,815 ...............................	...............................
15Robert NutterVP & COO	(i) (ii)	266,851 ...............................	50,311 ...............................	2,408 ...............................	6,282 ...............................	28,344 ...............................	354,196 ...............................	...............................
16Scott Rusk MDVP MD Admin/CMO	(i) (ii)	334,641 ...............................	47,791 ...............................	1,848 ...............................	6,500 ...............................	28,345 ...............................	419,125 ...............................	...............................
17Theodore Helberg IIIVP HR So	(i) (ii)	............................... 182,228	............................... 15,101	............................... 5,654	............................... 12,527	............................... 12,044	............................... 227,554	...............................

Schedule J (Form 990) 2014

Page 3

Part III

Supplemental Information

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

Return Reference

Explanation

Part I, Line 1a: Relevant information in regards to selections on 1a.

The following employees received a gift certificate for $40.10 with a $15.10 gross-up payment:Christopher Kleeman, highly compensated employeeBette Neville, officerRobert Nutter, officerAdam Owen, highly compensated employeeGregory Pomeroy, highly compensated employeeScott Rusk, officerBenjamin Russell, directorMelissa Skahan, officerJohn Southall, directorLee Thibodeau, highly compensated employeeJohn Wahlig, highly compensated employee

Part I, Line 7: Non-Fixed payments not listed above

Physician bonuses reported in Part II, column (ii) are based on worked RVUs.

Schedule J (Form 990) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

Schedule K
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Information on Tax Exempt Bonds

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

Attach to Form 990.
SchKMediumBullet

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

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization
Mercy Hospital

Employer identification number
01-0211534

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	Maine Health & Higher Edu	01-0314384	560425G61	04-04-2014	61,055,000	Refinance 2006H Bonds		X		X		X

Part II

Proceeds

	A		B		C		D
	1 Amount of bonds retired . . . . . . . . . . . . . .	2,430,000
2 Amount of bonds legally defeased . . . . . . . . . . .
3 Total proceeds of issue . . . . . . . . . . . . . .	61,055,000
4 Gross proceeds in reserve funds . . . . . . . . . . . .
5 Capitalized interest from proceeds . . . . . . . . . . .
6 Proceeds in refunding escrows . . . . . . . . . . . .	60,104,888
7 Issuance costs from proceeds . . . . . . . . . . . .	478,932
8 Credit enhancement from proceeds . . . . . . . . . . .
9 Working capital expenditures from proceeds . . . . . . . . .
10 Capital expenditures from proceeds . . . . . . . . . . .
11 Other spent proceeds . . . . . . . . . . . . . .	2,431,180
12 Other unspent proceeds . . . . . . . . . . . . . .
13 Year of substantial completion . . . . . . . . . . . .	2010
	Yes	No	Yes	No	Yes	No	Yes	No
14 Were the bonds issued as part of a current refunding issue? . . . . .		X
15 Were the bonds issued as part of an advance refunding issue? . . . . .	X
16 Has the final allocation of proceeds been made? . . . . . . . .	X
17 Does the organization maintain adequate books and records to support the final allocation of proceeds? . . . . . . . . . . . . . .	X

Part III

Private Business Use

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

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

Cat. No. 50193E

Schedule K (Form 990) 2014

Page 2

Part III

Private Business Use (Continued)

	A		B		C		D
	Yes	No	Yes	No	Yes	No	Yes	No
3a Are there any management or service contracts that may result in private business use of bond-financed property? . . . . . . . . . . . .		X
b If "Yes" to line 3a, does the organization routinely engage bond counsel or other outside counsel to review any management or service contracts relating to the financed property?
c Are there any research agreements that may result in private business use of bond-financed property? . . . . . . . . . . . . . . .		X
d If "Yes" to line 3c, does the organization routinely engage bond counsel or other outside counsel to review any research agreements relating to the financed property?
4 Enter the percentage of financed property used in a private business use by entities other than a section 501(c)(3) organization or a state or local government . .
5 Enter the percentage of financed property used in a private business use as a result of unrelated trade or business activity carried on by your organization, another section 501(c)(3) organization, or a state or local government . . . . . . .
6 Total of lines 4 and 5 . . . . . . . . . . . . .
7 Does the bond issue meet the private security or payment test? . . . . .
8a Has there been a sale or disposition of any of the bond-financed property to a nongovernmental person other than a 501(c)(3) organization since the bonds were issued?. . . . . . . . . . . . . . . . .		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

Part IV

Arbitrage

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

Schedule K (Form 990) 2014

Page 3

Part IV

Arbitrage (Continued)

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

Part V

Procedures To Undertake Corrective Action

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

Part VI

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

Return Reference

Explanation

Part VI

Part II, line 5, Column A, Proceeds in Refunding Escrows is held by MHHEFA.Part IV, Line 7, Column A, The issuer (MHHEFA) has established written procedures to monitor the requirements of Section 148. The organization has entered into a tax regulatory agreement with the issuer that requires the organization to comply with the requirements of Section 148. The organization is working to establish its own written procedures to monitor such requirements.

Schedule K (Form 990) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- 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

2014

Open to Public Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

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 ....	X	4	665	FMV
2 Art—Historical treasures .
3 Art—Fractional interests ..
4 Books and publications ..
5 Clothing and household goods .......	X		7,713	FMV
6 Cars and other vehicles ..
7 Boats and planes ....
8 Intellectual property ...
9 Securities—Publicly traded .	X	4	26,865	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 ...	X	7	3,463	FMV
20 Drugs and medical supplies .
21 Taxidermy ......
22 Historical artifacts ....
23 Scientific specimens ..
24 Archeological artifacts ...
25 Other ( Donate of wk timeshare-drawing )	X	1	7,700	FMV
26 Other ( Leadership Devel Series Attend )	X	1	6,000	FMV
27 Other ( Video Equipment )	X	1	1,876	FMV
28 Other ( Gift Cert )	X	70	13,720	FMV
Other ( Wine )	X	15	2,557	FMV
Other ( Jewelry )	X	4	663	FMV

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?

Yes

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) (2014)

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) (2014)

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.
MediumBullet

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

OMB No. 1545-0047

2014

Open to Public
Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Return Reference	Explanation
Form 990, Part III, Line 4d: Other Program Services Description	OTHER PROGRAM SERVICES 4: Charity care provided (at cost): 2741 persons served OTHER PROGRAM SERVICES 5: Please see the following excerpt from the EMHS Annual Report to the Community for details of community benefit projects by Mercy Hospital.LEADERSHIP: President and CEO: Eileen Skinner Board Chair: Chris HowardDescription: Mercy Hospital includes Garys House and McAuley Residence. Mercy provides a broad range of medical and surgical services, as well as six primary care locations, five express care locations, and subspecialty physician practices ranging from cardiology and spine surgery to ear, nose, and throat, to cancer care.Employees: 1,761Locations: Gorham, Portland, South Portland, Westbrook, West Falmouth, Windham, YarmouthHighlights: Sisters of MercyCelebrated 150 years of faithful service to the community, especially to those who are poor or disadvantaged Mattina R. Proctor Diabetes Center and Mercys laboratoryJoined fewer than 20 other laboratories in the nation by earning NGSP (National Glycohemoglobin Standardization Program) Level II Laboratory certification, which recognizes programs that have demonstrated the precision and accuracy of their hemoglobin A1c assay Mercy Oncology-HematologyReceived a three-year accreditation with commendation as a Comprehensive Community Cancer Program by the American College of Surgeons Commission on Cancer, signifying the programs dedication to providing the best in patient-centered care Mercy Primary CareTransformed their clinics to sustainable medical homes, offering a full complement of in-house services, including behavioral health, physical therapy, laboratory, and x-ray, allowing for better and more efficient access to services and preventive care for effective patient care The Mercy Tyler SuiteOpened in April at Mercy State Street and is designed to meet the needs of palliative and hospice patients who were unable to return home or who wished to remain at Mercy at end of lifeMERCY HOSPITALPhilanthropy: $763,748Total Community Benefit: $45,038,692Community Health Improvement Services: $590,427 Health Professions Education: $364,342 Cash and In-Kind Contributions: $1,060Community Building Activities: $8 Community Benefit Operations: $388,291 Traditional Charity Care*: $5,984,252Unrecoverable Interest Cost on funds used to subsidize state MaineCare/Medicaid underpayment on $0.7M: $45,103 Unpaid Cost of Public Programs: Medicaid $9,020,081; Medicare $28,645,128
Form 990, Part VI, Line 2: Description of Business or Family Relationship of Officers, Directors, Et	Joseph Gray, trustee, and Eileen Skinner, trustee/officer are members of Maine Historical Society board.
Form 990, Part VI, Line 3: Description of Delegated Duties to Management Company	Explanation: Mercy Hospital (Mercy) entered into an administrative and management service contract with The Confidential Search Company (TCSC) under which an employee was provided for the position of Interim Vice President/Chief Financial Officer. Gary Conner, Interim VP/CFO, is employed by TCSC. He provided services to Mercy from Oct 2014 to Feb 2015. His CY2014 compensation and benefits received from TDSC for services provided to Mercy is $133,400.His position has leadership responsibility for Mercy's financial management policies, operations and systems including direct supervisory responsibility for patient access, health information management, budgeting, cost accounting, financial reporting.
Form 990, Part VI, Line 4: Description of Significant Changes to Organizational Documents	SUMMARY OF PROPOSED AMENDMENTS TO EMHS MEMBER ORGANIZATION BYLAWSThe following is a summary and explanation of proposed amendments to the EMHS MemberOrganization Bylaws.1. Article I Name, Purpose Registered Agent, Office, Seala. Add the following phrase to the end of Section 2 (Purposes and Disposition of Assets) to clarify that the Articles of Incorporation include the original Articles and subsequent amendments and restatements thereto: as they may be amended or restated from time to time.b. Amend Section 3 (Registered Agent) to eliminate the office of Clerk and to substitute the word secretary in place of all references to Clerk in that section. Maine law requires that a nonprofit corporation have either a Secretary or Clerk, but not both. Glenn Martin will serve as Secretary for each Member Organization.2. Article III Boarda. Amend Section 2 (Number and Tenure; Qualifications) to eliminate the reference to the Executive Committee at the end of the second sentence in that Section.b. In addition to the amendment to Section 2 set forth in subparagraph 2(a) above, to make the following amendment to Section 2 which will apply only to the Bylaws of Inland Hospital: in lieu of the President and the Vice President of the Medical Staff serving as ex officio trustees with voting power, to provide that the Chief of Staff and two other employed or private practice members of the Medical Staff shall serve as ex officio trustees with voting power.c. Amend Section 5 (Regular Meetings) to specify the month in which the Corporations Annual Meeting will be held.d. Amend Section 6 (Special Meetings) to add the President of EMHS to the list of individuals who are authorized to call special meetings of the Board.e. Amend Section 13 (Attendance) to clarify the circumstances in which inadequate attendance at board meetings, committee meetings and education sessions will prompt the Chair to inquire whether the Board member desires to remain on the Board.3. Article IV Officersa. Amend Sections 1(Officers) and 7 (Treasurer) to: (i) add the offices of Assistant Secretary and Assistant Treasurer to the specified list of officers of the Corporation; (ii) to specify that the Treasurer of EMHS shall serve as Treasurer of the Corporation and that the Chief Financial Officer of the Member Organization shall serve as Assistant Treasurer of the Corporation; and (iii) to confirm the powers associated with the offices of Treasurer and Assistant Treasurer.b. Amend Section 8 (Second Certifying Officer) to provide that the Treasurer and the Assistant Treasurer of the Corporation are both authorized to act as a second certifying officer for the execution of documents.4. Article V Committeesa. Amend Section 4 (Designations) to clarify the distinction among Board Chair, Committee Chair and Chair of Member (EMHS) for purposes of committee designations.b. Amend Section 7 (Governance Committee) to clarify the distinction among Board Chair, Committee Chair and Chair of Member (EMHS) as they pertain to the duties bestowed upon the Governance Committee.c. Amend Section 8 (QPAC) to further establish that the Quality and Professional Affairs Committee has delegated authority to act on behalf of the Board for privileging and credentialing by removing the phrase as reasonably required between meetings from the end of the next to last sentence in that Section.d. Restate Section 9 (Joint Conference Committee) in its entirety to provide more balance on the Committee.e. Amend Section 10 (Finance Committee) to provide that: (i) the Treasurer of the Corporation (who is the Treasurer of EMHS) shall serve as an ex officio voting member of the Finance Committee; (ii) that the Board Chair may appoint up to two additional non-Trustee members to the Finance Committee if specific skill sets are desired; and (iii) if the Treasurer is not able to attend a meeting he or she shall not be counted in the denominator of the fraction used to calculate whether a quorum is present at such committee meeting.5. Article VI - Medical Staffa. Amend Section 1 (Organization) to clarify that the corporate Bylaws will prevail in the event of a conflict between the corporate Bylaws and the Medical Staff Bylaws.b. Amend Section 6 (Medical Staff Bylaws) to make the language consistent with the proposed language in Article V, Section 9 pertaining to the appointment power of the Medical Staff President, by deleting the phrase "including the selection by the Medical Staff of its representatives to the Joint Conference Committee at the end of the first sentence.
Form 990, Part VI, Line 6: Explanation of Classes of Members or Shareholder	Mercy Hospital (the Corporation) is a Maine nonprofit corporation. Eastern Maine Healthcare Systems (EMHS), also a Maine nonprofit corporation, is the sole corporate member of the Corporation.
Form 990, Part VI, Line 7a: How Members or Shareholders Elect Governing Body	Each year at their annual meeting, the directors elect replacements for those directors whose terms are expiring Election of directors is subject to ratification by the EMHS Board of Directors.
Form 990, Part VI, Line 7b: Describe Decisions of Governing Body Approval by Members or Shareholders	EMHS has authority to appoint and remove the CEO of the Corporation. EMHS also has joint and superior authority to approve, disapprove or initiate action with respect to the following matters: I. amendments to the corporations Articles of Incorporation or Bylaws;II. changes in legal form of organization of the Corporation;III. election of the Directors/Trustees of the Corporation;IV. action concerning the Corporations operating budget and capital expenditures;V. the Corporations acquisition of assets or assumption of liabilities of an unaffiliated third party;VI. transfer of 5% or more of the assets of the Corporation;VII. financing transactions concerning the Corporation; VIII. merger, consolidation, sale, lease, mortgage, pledge or other disposition of all or substantially all assets of the Corporation; IX. add or revise a health care service of the Corporation;X. discontinue or close a health care service of the Corporation;XI. action concerning the Corporations role in the EMHS Strategic Plan;XII. action concerning the Corporations participation in key strategic affiliations with third parties not affiliated with EMHS; andXIII. dissolution of the Corporation.
Form 990, Part VI, Line 11b: Form 990 Review Process	Form 990 is reviewed by the CFO of Mercy Hospital. It is also provided to each board member either electronically or in hard copy with an opportunity to ask questions prior to filing with the IRS.
Form 990, Part VI, Line 12c: Explanation of Monitoring and Enforcement of Conflicts	The organization requests updates of potential conflicts and relationships from the officers and Board members on an annual basis. The request requires disclosure of all business relationships, board memberships, and family relationships. A database is maintained that is compared to payroll records and the accounts payable vendor list to identify any potential conflicts of interest. Transactions are reviewed for reasonableness as an arm's length transaction.The first agenda item for board meetings and board committee meetings is for members to declare any conflict of interest with upcoming agenda items or deliberations. At any point when consideration is being given to purchase/contract with a party in interest, the member with the conflict is either excused from the discussion and consideration process or abstains from voting on the matter.All transactions identified with parties in interest are disclosed within the Form 990. All are deemed to be arm's length transactions.
Form 990, Part VI, Line 15a: Compensation Review & Approval Process - CEO, Top Management	The CEO of Mercy and the system President/CEO (President) who serves on the board ex-officio are employed by the system parent, Eastern Maine Healthcare Systems (EMHS).The EMHS Executive Performance Management Committee (the Committee) is responsible to monitor and evaluate the performance of the EMHS President, to set compensation of the EMHS President, and to review recommendations of the EMHS President with respect to compensation of the Chief Executive Officer of the direct subsidiaries, and other direct reports to the President. The Committee is comprised entirely of independent Directors per EMHS bylaws.Process:The Committee meets regularly throughout the fiscal year at the discretion of the Committee chair as well as on call of the Chair of the EMHS board. In carrying out its duties pursuant to the Bylaws, the Committee:-Assures that the executive compensation program is administered in a manner consistent with the EMHS executive compensation philosophy.-Reviews and updates the EMHS executive compensation philosophy which serves as the foundation on which all current and future executive compensation decisions are made.-Assures that value of compensation provided by EMHS does not exceed the value of services provided by the executive.-Reviews annual incentive compensation criteria for eligible executives, as defined by the EMHS President.-Reviews periodic compensation survey information and provides expert input to proposed changes to the executive compensation program.-Assures that a formal and timely performance management system is in place for executives.-Reviews incentive compensation criteria scoring and associated pay schedules for officers and key employees.-Provides any public statements regarding executive compensation practices at EMHS deemed appropriate.-Maintains minutes of the meeting and communicates actions to the EMHS Board of Directors.To accomplish this, the committee uses an external consultant with access to comparative data from independent sources and include national as well as regional data points. The EMHS President reviews all direct report compensation actions with the committee. In addition, the EMHS President ensures that any subsidiary policies and practices governing executive compensation are consistent with the committee's philosophy and practices statement.Form 990, Part VI, Line 15b - Compensation Review & Approval Process - Officers & Key EmployeesCompensation of other officers and key employees of the organization is established by the Human Resources department who utilize external market research to establish compensation ranges for specific positions. On an annual basis, the compensation ranges are compared to the updated survey information.The hiring manager will determine where the employee will fall within the ranges established by the Human Resources department based on experience and credentials.
Form 990, Part VI, Line 19: Other Organization Documents Publicly Available	Mercy makes its governing documents, conflict of interest policy and financial statements available to the public upon request.
Other Changes In Net Assets Or Fund Balances - Other Decreases	= -$0
Other Changes In Net Assets Or Fund Balances - Other Decreases	= -$0
Other Changes In Net Assets Or Fund Balances - Other Decreases	= -$0
Other Changes In Net Assets Or Fund Balances - Other Increases	Change in net assets held @ EMHS Foundation = $172630
Other Changes In Net Assets Or Fund Balances - Other Increases	Transfer from exempt subsidiary - VNA = $10000000
Other Changes In Net Assets Or Fund Balances - Other Decreases	Transfer to exempt parent - Eastern Maine Healthcare Systems = -$4320293

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

- 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

2014

Open to Public Inspection

Name of the organization

Mercy Hospital

Employer identification number

01-0211534

Part I

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

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

Part II

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1) Eastern Maine Healthcare Systems EMHS 43 Whiting Hill Road Brewer,ME04412 01-0527066	Supporting org for healthcare affiliates	ME	501(c)(3)	11 Type II	N/A	Yes
(2) Acadia Hospital Corp AHC 43 Whiting Hill Road Brewer,ME04412 01-0459837	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(3) Acadia Healthcare Inc AHI 43 Whiting Hill Road Brewer,ME04412 22-3183888	Provide healthcare services	ME	501(c)(3)	9	AHC	Yes
(4) Meadow Wood LLC 43 Whiting Hill Road Brewer,ME04412 27-2935243	Provide patient care	ME	501(c)(3)	9	AHI	Yes
(5) Restoration Health LLC 43 Whiting Hill Road Brewer,ME04412 35-2449986	Provide mental & behavioral hlth srvs	ME	501(c)(3)	9	AHI	Yes
(6) Eastern Maine Medical Center PO Box 404 489 State St Bangor,ME044020404 01-0211501	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(7) Eastern Maine Medical Center Auxiliary 43 Whiting Hill Road Brewer,ME04412 01-0377901	Fund raising for exempt EMMC	ME	501(c)(3)	9	EMMC	Yes
(8) Norumbega Medical Specialists LTD 43 Whiting Hill Road Ste 400 Brewer,ME04412 01-0465231	Provide patient care and education	ME	501(c)(3)	9	EMMC	Yes
(9) EMHS Foundation 43 Whiting Hill Road Ste 400 Brewer,ME04412 22-2514163	Raise and manage funds for exempt orgs	ME	501(c)(3)	11 Type II	EMHS	Yes
(10) Rosscare 43 Whiting Hill Road Brewer,ME04412 01-0391038	Provide services to elderly	ME	501(c)(3)	PF	EMHS	Yes
(11) Rosscare Nursing Homes Inc 43 Whiting Hill Road Ste 400 Brewer,ME04412 01-0430751	Operation of nursing homes	ME	501(c)(3)	9	Rosscare	Yes
(12) Inland Hospital 200 Kennedy Memorial Drive Waterville,ME04901 01-0217211	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(13) Lakewood A Continuing Care Center 220 Kennedy Memorial Drive Waterville,ME04901 01-0421234	Provide skilled and long-term nursing ca	ME	501(c)(3)	3	Inland Hospital	Yes
(14) CA Dean Memorial Hospital Pritham Avenue PO Box 1129 Greenville,ME044411129 04-3341666	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(15) Blue Hill Memorial Hospital 57 Water Street Blue Hill,ME046145231 01-0227195	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(16) Eastern Maine HomeCare PO Box 688 Caribou,ME04736 01-0328442	Provide home health and hospice services	ME	501(c)(3)	9	EMHS	Yes
(17) Sebasticook Valley Health SVH 447 North Main Street Pittsfield,ME04967 01-0263628	Critical care hospital	ME	501(c)(3)	3	EMHS	Yes
(18) Sebasticook Valley Family Practice Assoc 447 North Main Street Pittsfield,ME04967 01-0357854	Provide patient care	ME	501(c)(3)	9	SVH	Yes
(19) The Aroostook Medical Center TAMC PO Box 151 140 Academy Street Presque Isle,ME047690151 01-0372148	Provide healthcare services	ME	501(c)(3)	3	EMHS	Yes
(20) TAMC Title Corp PO Box 151 140 Academy Street Presque Isle,ME047690151 01-0389226	Real estate holding company	ME	501(c)(2)		TAMC	Yes
(21) TAMC Endowments PO Box 151 140 Academy Street Presque Isle,ME047690151 01-0389222	Raise funds for exempt orgs	ME	501(c)(3)	11 Type I	TAMC	Yes
(22) Horizons Health Services PO Box 151 140 Academy Street Presque Isle,ME047690151 01-0504393	Provide patient care	ME	501(c)(3)	3	TAMC	Yes
(23) Mercy Health System of Maine 144 State Street Portland,ME04101 01-0484074	Supporting org for healthcare affiliates	ME	501(c)(3)	11 Type III Func Int	EMHS	Yes
(24) VNA Home Health & Hospice 50 Foden Road South Portland,ME04106 01-0246804	Provide home health and hospice services	ME	501(c)(3)	9	EMHS	Yes
(25) Eastern Maine Healthcare Real Estate 43 Whiting Hill Road Brewer,ME04112 01-0391036	Leases of real estate	ME	501(c)(2)		EMHS	Yes

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

Cat. No. 50135Y

Schedule R (Form 990) 2014

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
(1) Beacon Health LLC 43 Whiting Hill Road Brewer,ME04412 45-2967056	Accountable care organization	ME	EMHS				No			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	(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) Affiliated Healthcare Systems AHS PO Box 940 Bangor,ME044020940 01-0385322	Holding co.	ME	EMHS	C			Yes
(2) Affiliated Laboratory Inc PO Box 638 Bangor,ME044020638 01-0381283	Clinical lab	ME	AHS	C			Yes
(3) Affiliated Materiel Services PO Box 1300 Bangor,ME044021300 01-0381189	Purchasing	ME	AHS	C			Yes
(4) Meridian Mobile Health LLC 931 Union Street PO Box 940 Bangor,ME044020940 01-0512673	Ambulance	ME	AHS	C			Yes
(5) Maine Network for Health PO Box 2813 Bangor,ME044022813 01-0496352	Support srv	ME	EMHS	C			Yes
(6) Dirigo Pines Retirement Community LLC 9 Alumni Drive Orono,ME04473 01-0537924	Holding co.	ME	AHS	C			Yes
(7) Dirigo Pines Inn LLC 9 Alumni Drive Orono,ME04473 02-0547749	Contin care	ME	ROSSCARE	C			Yes
(8) Dirigo Funding LLC 9 Alumni Drive Orono,ME04473 01-0599968	Prov finance	ME	AHS	C			Yes
(9) Dirigo Pines Development Company LLC 9 Alumni Drive Orono,ME04473 01-0537924	Ret cottage	ME	AHS	C			Yes
(10) M Drug LLC PO Box 1779 Bangor,ME044021779 27-2175482	Pharmacy	ME	AHS	C			Yes
(11) Alliance Health Documentation LLC 9 Central Street Ste 205 Bangor,ME04401 46-2751855	Transcription	ME	AHS	C			Yes
(12) Affiliated Healthcare Management PO Box 811 Bangor,ME044020811 01-0349339	Hlthcr mgmt	ME	AHS	C			Yes

Schedule R (Form 990) 2014

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

Yes

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

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

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

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

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

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

Yes

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

Yes

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

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

Yes

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

Yes

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

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Eastern Maine Healthcare Systems EMHS	e	3,000,000	FMV
(2) Eastern Maine Healthcare Systems EMHS	m	18,359,812	FMV
(3) Eastern Maine Healthcare Systems EMHS	p	14,605,108	FMV
(4) Eastern Maine Healthcare Systems EMHS	r	4,320,294	FMV
(5) Eastern Maine Medical Center	p	81,715	FMV
(6) EMHS Foundation	m	471,494	FMV
(7) EMHS Foundation	s	814,329	FMV
(8) VNA Home Health & Hospice	l	160,428	FMV
(9) VNA Home Health & Hospice	s	10,000,000	FMV
(10) Affiliated Laboratory Inc	m	431,198	FMV
(11) Alliance Health Documentation LLC	m	499,641	FMV
(12) Affiliated Healthcare Management	m	73,197	FMV

Schedule R (Form 990) 2014

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) 2014

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) 2014

Additional Data

Software ID:	14000265
Software Version:	2014v6.0

1	Briefly describe the organization’s mission or most significant activities: Mercy Hospital carries out the healing work of Christ by providing clinically excellent, compassionate healthcare for all, with special concern for the poor and disadvantaged.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	21
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	17
5	Total number of individuals employed in calendar year 2014 (Part V, line 2a) ......	5	2,150
6	Total number of volunteers (estimate if necessary) .............	6	287
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	1,390,029	1,810,680
9	Program service revenue (Part VIII, line 2g) .........	498,454,144	531,402,652
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	279	49,881
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	2,846,040	818,047
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)...................	502,690,492	534,081,260
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...		0
14	Benefits paid to or for members (Part IX, column (A), line 4).....		0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	127,967,458	130,635,950
16a	Professional fundraising fees (Part IX, column (A), line 11e).....		0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	373,364,469	425,636,129
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	501,331,927	556,272,079
19	Revenue less expenses. Subtract line 18 from line 12.......	1,358,565	-22,190,819
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	192,093,827	186,674,401
21	Total liabilities (Part X, line 26).............	130,311,248	141,277,947
22	Net assets or fund balances. Subtract line 21 from line 20.....	61,782,579	45,396,454

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 488,107,787 including grants of $ ) (Revenue $ 532,028,134 )
	Provide healthcare services regardless of ability to pay as well as education, research and promotion of health. Provided other uncompensated care (at cost) of $8,350,750

4b	(Code: ) (Expenses $ 28,645,128 including grants of $ ) (Revenue $ )
	Medicare shortfalls (at cost) 27,350 persons served

4c	(Code: ) (Expenses $ 9,020,081 including grants of $ ) (Revenue $ )
	Medicaid shortfalls (at cost) 10,641 persons served

4d	Other program services (Describe in Schedule O.)
	(Expenses $ 5,984,252 including grants of $ ) (Revenue $ )
4e	Total program service expenses531,757,248

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)............	6,890,048	2,188,264	972,525

				(A) Total revenue	(B) Related or exempt function revenue	(C) Unrelated business revenue	(D) Revenue excluded from tax under sections 512-514
1a	Federated campaigns..1a		9,996
b	Membership dues....1b
c	Fundraising events....1c
d	Related organizations...1d		814,329
e	Government grants (contributions)1e

f	All other contributions, gifts, grants, and similar amounts not included above1f		986,355

g	Noncash contributions included in lines 1a-1f:$		71,222
h	Total. Add lines 1a-1f.......			1,810,680
			Business Code
2a	Cafeteria		722210	937,759			937,759
b	Education		611710	22,056	22,056
c	Patient Service		621990	530,442,837	530,442,837
d
e
f	All other program service revenue .
g	Total. Add lines 2a–2f........			531,402,652
3	Investment income (including dividends, interest, and other similar amounts).......			25,347			25,347
4	Income from investment of tax-exempt bond proceeds..			0
5	Royalties...........			0
		(i) Real	(ii) Personal
6a	Gross rents	188,942
b	Less: rental expenses	17,210
c	Rental income or (loss)	171,732
d	Net rental income or (loss).......			171,732			171,732
		(i) Securities	(ii) Other
7a	Gross amount from sales of assets other than inventory		110,584
b	Less: cost or other basis and sales expenses		86,050
c	Gain or (loss)		24,534
d	Net gain or (loss)..........			24,534			24,534
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ..
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..			0
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities...			0
10a	Gross sales of inventory, less returns and allowances .
	a		134,300
b	Less: cost of goods sold ..b		113,467
c	Net income or (loss) from sales of inventory..			20,833			20,833
Miscellaneous Revenue			Business Code
11a	Meaningful Use		621990	625,482	625,482
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......			625,482
12	Total revenue. See Instructions......			534,081,260	531,090,375		1,180,205


				(A) Beginning of year		(B) End of year
1	Cash–non-interest-bearing .............			6,410	1	5,410
2	Savings and temporary cash investments .........			10,736,070	2	10,456,457
3	Pledges and grants receivable, net ...........				3	0
4	Accounts receivable, net .............			37,807,885	4	37,259,957
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	0
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6	0
7	Notes and loans receivable, net .............			34,993	7	133,209
8	Inventories for sale or use ..............			4,416,925	8	4,496,776
9	Prepaid expenses and deferred charges ..........			3,495,026	9	1,495,339
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	138,698,215
b	Less: accumulated depreciation .....	10b	23,289,198	122,339,675	10c	115,409,017
11	Investments—publicly traded securities ..........				11	0
12	Investments—other securities. See Part IV, line 11 .....				12	0
13	Investments—program-related. See Part IV, line 11 .....				13	0
14	Intangible assets ...............			3,217,667	14	3,194,667
15	Other assets. See Part IV, line 11 ...........			10,039,176	15	14,223,569
16	Total assets. Add lines 1 through 15 (must equal line 34)......			192,093,827	16	186,674,401
17	Accounts payable and accrued expenses .........			44,432,320	17	53,245,961
18	Grants payable .................				18
19	Deferred revenue ................			122,241	19	134,528
20	Tax-exempt bond liabilities .............			60,585,000	20	58,625,000
21	Escrow or custodial account liability. Complete Part IV of Schedule D..				21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..........				22
23	Secured mortgages and notes payable to unrelated third parties ..			8,114,549	23	7,501,936
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....................			17,057,138	25	21,770,522
26	Total liabilities. Add lines 17 through 25.........			130,311,248	26	141,277,947
	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets ..............			57,899,218	27	41,889,730
28	Temporarily restricted net assets ...........			1,993,819	28	1,649,546
29	Permanently restricted net assets ...........			1,889,542	29	1,857,178
	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 ...........			61,782,579	33	45,396,454
34	Total liabilities and net assets/fund balances ........			192,093,827	34	186,674,401