TY 2015 Form 990

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)	(C) Position (do not check more than one box, unless person is both an officer and a director/trustee)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)
(1) BOBBIE YOUNG...................................................................... CHAIRMAN	2.00 .................	X	X		0	0	0
(2) JEFFREY RANKIN...................................................................... TRUSTEE	2.00 ................. 3.00	X			0	0	0
(3) TIM BLENCO...................................................................... VICE CHAIRMAN	2.00 .................	X	X		0	0	0
(4) HAROLD WALKER...................................................................... TRUSTEE	1.00 ................. 1.00	X			0	0	0
(5) MAUREEN BEN-DAVIES MD...................................................................... TRUSTEE	40.00 .................	X			0	174,022	25,211
(6) ROBERT BEDNAREK...................................................................... TRUSTEE	1.00 ................. 59.00	X			0	322,366	33,182
(7) LARRY HILL JR...................................................................... TRUSTEE	1.00 ................. 59.00	X			0	230,248	90,767
(8) SHERRON CRAWFORD MD...................................................................... TRUSTEE	1.00 .................	X			0	0	0
(9) STEVE JONES...................................................................... TRUSTEE	1.00 .................	X			0	0	0
(10) LEE LATTIMORE...................................................................... TRUSTEE	1.00 .................	X			0	0	0
(11) REX HENDERSON MD...................................................................... CHIEF OF STAFF	10.00 .................	X			32,674	0	0
(12) KATHY GUYETTE...................................................................... TRUSTEE	1.00 ................. 59.00	X			0	543,135	79,029
(13) ADAM KINNINGER MD...................................................................... PHYSICIAN	40.00 .................	X			0	298,436	31,349
(14) MARGARET SULLIVAN MD...................................................................... TRUSTEE	40.00 .................	X			0	316,583	30,976
(15) CAROL WOLFENBARGER...................................................................... PRESIDENT & CNO	49.00 ................. 1.00	X	X		0	221,745	12,858
(16) CLINT STEWART...................................................................... REGIONAL DIRECTOR - FINANC	24.00 ................. 26.00		X		0	158,266	24,418
(17) MARK BURTON MD...................................................................... PHYSICIAN	40.00 .................			X	0	428,990	39,304

- TIN:

SCHEDULE A
(Form 990 or 990EZ)

Department of the Treasury
Internal Revenue Service

Public Charity Status and Public Support

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

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

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Part I

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

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

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

A school described in section 170(b)(1)(A)(ii). (Attach Schedule E (Form 990 or 990-EZ))

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


Total

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

Cat. No. 11285F

Schedule A (Form 990 or 990-EZ) 2015

Page 2

Part II

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

Section A. Public Support

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

Section B. Total Support

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

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

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

Section C. Computation of Public Support Percentage

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

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

16a

33 1/3% support test—2015. If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization ....................... right arrow

33 1/3% support test—2014. If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization ..................... right arrow

17a

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

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

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

Schedule A (Form 990 or 990-EZ) 2015

Page 3

Part III

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

Section A. Public Support

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

Section B. Total Support

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

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

Section C. Computation of Public Support Percentage

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

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

Section D. Computation of Investment Income Percentage

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

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

19a

331/3% support tests—2015. If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization ....... right arrow

33 1/3% support tests—2014. If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization .... right arrow

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

Schedule A (Form 990 or 990-EZ) 2015

Page 4

Part IV

Supporting Organizations

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

Section A. All Supporting Organizations

Yes

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

10a

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

10a

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

10b

Schedule A (Form 990 or 990-EZ) 2015

Page 5

Part IV

Supporting Organizations (continued)

Yes

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

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

11a

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

11b

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

11c

Section B. Type I Supporting Organizations

Yes

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

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

Section C. Type II Supporting Organizations

Yes

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

Section D. All Type III Supporting Organizations

Yes

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

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

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

Section E. Type III Functionally-Integrated Supporting Organizations

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

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

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

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

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

Yes

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

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2015

Page 6

Part V

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

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

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2015

Page 7

Part V

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

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

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

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

Schedule A (Form 990 or 990-EZ) 2015

Page 8

Part VI

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

Facts And Circumstances Test

Return Reference	Explanation

Schedule A (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

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

Department of the Treasury
Internal Revenue Service

Schedule of Contributors

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

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

OMB No. 1545-0047

2015

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Organization type (check one):

Filers of:

Section:

Form 990 or 990-EZ

501(c)( ) (enter number) organization

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

527 political organization

Form 990-PF

501(c)(3) exempt private foundation

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

501(c)(3) taxable private foundation

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

General Rule

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

Special Rules

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

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

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

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

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

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

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

Name of organization THE MCDOWELL HOSPITAL INC

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

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

Page 3

Name of organization THE MCDOWELL HOSPITAL INC		Employer identification number 56-0623938

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

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

Page 4


Name of organization THE MCDOWELL HOSPITAL INC			Employer identification number 56-0623938
Part III Exclusively religious, charitable, etc., contributions to organizations described in section 501(c)(7), (8), or (10) that total more than $1,000 for the year from any one contributor. Complete columns (a) through (e) and the following line entry. For organizations completing Part III, enter the total of exclusively religious, charitable, etc., contributions of $1,000 or less for the year. (Enter this information once. See instructions.) $ Use duplicate copies of Part III if additional space is needed.

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

(a)
No.from Part I

(b) Purpose of gift

(d) Description of how gift is held

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

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

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE D
(Form 990)

Department of the Treasury
Internal Revenue Service

Supplemental Financial Statements

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

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Part I

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

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

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

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

Yes No

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

Yes No

Part II

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

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

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

Protection of natural habitat Preservation of a certified historic structure

Preservation of open space

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


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

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

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

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

Yes No

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

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

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

Yes No

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

Part III

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

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

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

(i)

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

(ii)

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

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

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

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

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

Cat. No. 52283D

Schedule D (Form 990) 2015

Page 2

Part III

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

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

Public exhibition

Loan or exchange programs

Scholarly research

Other

Preservation for future generations

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

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

Yes No

Part IV

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

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

Yes No


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

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

Yes No

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

Part V

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

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

1a	Beginning of year balance ....	290,200	99,844	25,000
b	Contributions ...	216,330	410,585	74,844	25,000
c	Net investment earnings, gains, and losses
d	Grants or scholarships ...	211,119	220,229
e	Other expenditures for facilities and programs ...
f	Administrative expenses ....
g	End of year balance ......	295,411	290,200	99,844	25,000

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

Board designated or quasi-endowment SchDMd Bullet

100.000 %

Permanent endowment SchDMd Bullet

Temporarily restricted endowment SchDMd Bullet

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

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

Yes

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

3a(i)

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

3a(ii)

Yes

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

Yes

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

Part VI

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

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

1a	Land ...	449,525		449,525
b	Buildings	25,348,872	11,910,350	13,438,522
c	Leasehold improvements	2,005,331	1,020,582	984,749
d	Equipment ...	16,360,679	12,587,394	3,773,285
e	Other ...	10,139,875		10,139,875
Total. Add lines 1a through 1e. (Column (d) must equal Form 990, Part X, column (B), line 10(c).)..				28,785,956

Schedule D (Form 990) 2015

Page 3

Part VII

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

(a) Description of security or category (including name of security)	(b)Book value	(c)Method of valuation: Cost or end-of-year market value
(1)Financial derivatives
(2)Closely-held equity interests
(3)Other
(A)
(B)
(C)
(D)
(E)
(F)
(G)
(H)
Total. (Column (b) must equal Form 990, Part X, col. (B) line 12.)

Part VIII

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

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

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

Part IX

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

(a) Description				(b) Book value

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

Part X

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

1.(a) Description of liability	(b) Book value
(1) Federal income taxes
NOTE PAYABLE TO MISSION HEALTH SYSTEM	2,734,377
CURRENT DUE TO OTHER RELATED PARTIES	3,281,259
OTHER LONG TERM LIABILITY	275,000
(4)
(5)
(6)
(7)
(8)
(9)
Total. (Column (b) must equal Form 990, Part X, col.(B) line 25.)	6,290,636
2. Liability for uncertain tax positions. In Part XIII, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC 740). Check here if the text of the footnote has been provided in Part XIII

Schedule D (Form 990) 2015

Page 4

Part XI Reconciliation of Revenue per Audited Financial Statements With Revenue per Return Complete if the organization answered 'Yes' on Form 990, Part IV, line 12a.
1	Total revenue, gains, and other support per audited financial statements .......		1
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' on 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 X, LINE 2:

THE ORGANIZATION IS INCLUDED IN MISSION HEALTH SYSTEM'S CONSOLIDATED AUDIT WHICH APPLIES THE PROVISIONS OF FASB ASC TOPIC 740, INCOME TAXES (ASC 740), IN ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES. ASC 740 PROVIDES GUIDANCE ON WHEN TAX POSITIONS ARE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND HOW THE VALUES OF THESE POSITIONS ARE DETERMINED. THERE IS CURRENTLY NO IMPACT ON THE CONSOLIDATED FINANCIAL STATEMENTS AS A RESULT OF THE APPLICATION OF ASC 740.

Schedule D (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE H
(Form 990)

Department of the Treasury
Internal Revenue Service

Hospitals

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

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

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		(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) . . .	2,051,101		2,051,101	3.610 %
b	Medicaid (from Worksheet 3, column a) . . . . .	8,032,470	6,267,508	1,764,962	3.100 %
c	Costs of other means-tested government programs (from Worksheet 3, column b) . .
d	Total Financial Assistance and Means-Tested Government Programs . . . . .	10,083,571	6,267,508	3,816,063	6.710 %
Other Benefits
e	Community health improvement services and community benefit operations (from Worksheet 4).	1,737,366		1,737,366	3.060 %
f	Health professions education (from Worksheet 5) . . .	15,178		15,178	0.030 %
g	Subsidized health services (from Worksheet 6) . . . .	17,015,744	16,199,793	815,951	1.440 %
h	Research (from Worksheet 7) .
i	Cash and in-kind contributions for community benefit (from Worksheet 8) . . . .	30,639		30,639	0.050 %
j	Total. Other Benefits . .	18,798,927	16,199,793	2,599,134	4.580 %
k	Total. Add lines 7d and 7j .	28,882,498	22,467,301	6,415,197	11.290 %

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

Schedule H (Form 990) 2015

Page

Part II

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

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

Part III

Bad Debt, Medicare, & Collection Practices

Section A. Bad Debt Expense

Yes

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

Yes

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

4,014,199

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. ......

41,460

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).....

14,886,423

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

14,070,591

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

815,832

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

Cost accounting system Cost to charge ratio Other

Section C. Collection Practices

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

Yes

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

Yes

Part IV

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

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

Schedule H (Form 990) 2015

Page

Part VFacility Information

Section A. Hospital Facilities (list in order of size from largest to smallest—see instructions) How many hospital facilities did the organization operate during the tax year?1 Name, address, primary website address, and state license number (and if a group return, the name and EIN of the subordinate hospital organization that operates the hospital facility)
1	THE MCDOWELL HOSPITAL 430 RANKIN DRIVE MARION,NC28752 WWW.MCDOWELLHOSPITAL.ORG H0097	X	X	X

Schedule H (Form 990) 2015

Page 4

Part VFacility Information (continued)

Section B. Facility Policies and Practices

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

	THE MCDOWELL HOSPITAL INC
Name of hospital facility or letter of facility reporting group

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

Yes

Community Health Needs Assessment

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

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

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

Yes

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

A definition of the community served by the hospital facility

Demographics of the community

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

How data was obtained

The significant health needs of the community

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

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

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

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

Other (describe in Section C)

Indicate the tax year the hospital facility last conducted a CHNA: 20 15

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

Yes

6 a

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

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): SEE PART VI

Other website (list url): SEE PART VI

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

Other (describe in Section C)

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

Yes

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

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

Yes

If "Yes" (list url): SEE PART VI

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

10b

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

12a

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

12a

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

12b

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

Schedule H (Form 990) 2015

Page 5

Part VFacility Information (continued)

Financial Assistance Policy (FAP)

	THE MCDOWELL HOSPITAL INC
Name of hospital facility or letter of facility reporting group

Yes

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

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

Yes

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

Federal poverty guidelines (FPG), with FPG family income limit for eligibility for free care of 200.000000000000% and FPG family income limit for eligibility for discounted care of 400.000000000000%

Income level other than FPG (describe in Section C)

Asset level

Medical indigency

Insurance status

Underinsurance discount

Residency

Other (describe in Section C)

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

Yes

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

Yes

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

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

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

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

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

Other (describe in Section C)

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

Yes

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

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

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

A plain language summary of the FAP was widely available on a website (list url):
HTTPS://WWW.MISSION-HEALTH.ORG/FINANCIAL-ASSISTANCE.PHP

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

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

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

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

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

Other (describe in Section C)

Billing and Collections

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

Yes

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

None of these actions or other similar actions were permitted

Schedule H (Form 990) 2015

Page 6

Part VFacility Information (continued)

	THE MCDOWELL HOSPITAL INC
Name of hospital facility or letter of facility reporting group

Yes

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

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

Reporting to credit agency(ies)

Selling an individual’s debt to another party

Actions that require a legal or judicial process

Other similar actions (describe in Section C)

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

Notified individuals of the financial assistance policy on admission

Notified individuals of the financial assistance policy prior to discharge

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

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

Other (describe in Section C)

None of these efforts were made

Policy Relating to Emergency Medical Care

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

Yes

If "No," indicate why:

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

The hospital facility’s policy was not in writing

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

Other (describe in Section C)

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

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

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

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

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

Other (describe in Section C)

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

If "Yes," explain in Section C.

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

If "Yes," explain in Section C.

Schedule H (Form 990) 2015

Page 7

Part V

Facility Information (continued)

Section C. Supplemental Information for Part V, Section B. Provide descriptions required for Part V, Section B, lines 2, 3j, 5, 6a, 6b, 7d, 11, 13b, 13h, 15e, 16i, 18d, 19d, 20e, 21c, 21d, 22d, 23, and 24. If applicable, provide separate descriptions for each hospital facility in a facility reporting group, designated by facility reporting group letter and hospital facility line number from Part V, Section A (“A, 1,” “A, 4,” “B, 2,” “B, 3,” etc.) and name of hospital facility.
Form and Line Reference	Explanation
THE MCDOWELL HOSPITAL, INC.	PART V, SECTION B, LINE 5: THE ORGANIZATION'S COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS CONDUCTED IN PARTNERSHIP WITH THE RUTHERFORD POLK MCDOWELL (RPM) HEALTH DISTRICT AND MCDOWELL HEALTH COALITION. THIS WRITTEN REPORT DESCRIBES: THE COMMUNITY SERVED BY THE HOSPITAL-COMMUNITY DEMOGRAPHICS.-EXISTING HEALTH RESOURCES IN THE COMMUNITY AVAILABLE TO RESPOND TO NEEDS-HOW DATA WAS COLLECTED IN THE ASSESSMENT PROCESS.-THE PRIORITY HEALTH NEEDS OF THE COMMUNITY.-HEALTH NEEDS AND ISSUES OF UNINSURED, LOW-INCOME, AND MINORITY GROUPS.-THE PROCESS FOR IDENTIFYING AND PRIORITIZING COMMUNITY NEEDS AND SERVICES TO MEET THE 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.
THE MCDOWELL HOSPITAL, INC.	PART V, SECTION B, LINE 6A: THE ORGANIZATION'S COLLABORATIVE COMMUNITY HEALTH IMPROVEMENT EFFORT IS ALSO SUPPORTED BY A LARGER PARTNERSHIP WITH OTHER HOSPITAL FACILITIES AND HEALTH DEPARTMENT PARTNERS ACROSS A SIXTEEN COUNTY REGION IN WESTERN NORTH CAROLINA TO IMPROVE COMMUNITY HEALTH: WNC HEALTHY IMPACT. MORE INFORMATION ABOUT THIS INNOVATIVE REGIONAL COLLABORATION, COUNTY-WIDE COMMUNITY HEALTH ASSESSMENTS, AND OVERALL REGIONAL FINDINGS, ARE MADE WIDELY AVAILABLE TO THE PUBLIC AT WWW.WNCHEALTHYIMPACT.COM.
THE MCDOWELL HOSPITAL, INC.	PART V, SECTION B, LINE 6B: MCDOWELL COUNTY HEALTH DEPARTMENT
THE MCDOWELL HOSPITAL, INC.	PART V, SECTION B, LINE 22D: THE ORGANIZATION USED THE LOOK-BACK METHOD IN DETERMINING AMOUNTS GENERALLY BILLED (AGB) FOR ANY EMERGENCY OR OTHER MEDICALLY NECESSARY CARE IT PROVIDES TO A FAP-ELIGIBLE INDIVIDUAL. THE AGB PERCENTAGE WAS BE CALCULATED ANNUALLY BY DIVIDING THE SUM OF ALL CLAIMS FOR EMERGENCY AND MEDICALLY NECESSARY CARE THAT HAVE BEEN PAID IN FULL DURING A PRIOR 12-MONTH PERIOD BY THE SUM OF THE ASSOCIATED GROSS CHARGES FOR THOSE CLAIMS. CLAIMS PAID INCLUDE CLAIMS PAID BY BOTH MEDICARE FEE-FOR-SERVICE AND ALL PRIVATE HEALTH INSURERS AS PRIMARY PAYERS, TOGETHER WITH ANY ASSOCIATED PORTIONS OF THESE CLAIMS PAID BY MEDICARE BENEFICIARIES OR INSURED INDIVIDUALS IN THE FORM OF CO-PAYMENTS, CO-INSURANCE OR DEDUCTIBLES.

Schedule H (Form 990) 2015

Page 8

Part VFacility Information (continued)

Section D. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as a Hospital Facility (list in order of size, from largest to smallest) How many non-hospital health care facilities did the organization operate during the tax year?9
Name and address		Type of Facility (describe)
1	1 - MCDOWELL SURGICAL 472 RANKIN DRIVE MARION,NC28752	OUTPATIENT SURGERY
2	2 - MCDOWELL URGENT CARE 472 RANKIN DRIVE MARION,NC28752	RURAL HEALTH CLINIC
3	3 - MCDOWELL OBGYN MCDOWELL INTERNAL MEDICI 1633 SUGAR HILL ROAD MARION,NC28752	OB/GYN
4	4 - MCDOWELL REHABILIATION SERVICES 1633 SUGAR HILL ROAD MARION,NC28752	REHABILITATION
5	5 - MCDOWELL PEDIATRICS 387 US 70 WEST MARION,NC28752	RURAL HEALTH CLINIC
6	6 - FAMILY MEDICINE NEBO 339 NEBO SCHOOL ROAD NEBO,NC28761	RURAL HEALTH CLINIC
7	7 - COMMUNITY MEDICINE OLD FORT 32 E MAIN STREET OLD FORT,NC28762	RURAL HEALTH CLINIC
8	8 - FAMILY MEDICINE GLENWOOD 5623 US HIGHWAY 221 S MARION,NC28752	RURAL HEALTH CLINIC
9	9 - MCDOWELL PAIN MANAGEMENT CENTER 100 SPAULDING ROAD MARION,NC28752	PAIN MANAGEMENT SERVICES
10

Schedule H (Form 990) 2015

Page 9

Part VI

Supplemental Information

Provide the following information.

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

Form and Line Reference	Explanation
PART I, LINE 7:	THE ORGANIZATION USED THE NCHA ANDI REPORTS WHICH ARE BASED ON THE IRS GUIDELINES. FOR PHYSICIAN CLINICS, AS DESCRIBED IN SUBSIDIZED HEALTH SERVICES, DIRECT AND INDIRECT COSTS WERE USED. THE FINANCIALS INCLUDE ALL PATIENT SEGMENTS, INCLUDING INPATIENT, OUTPATIENT, EMERGENCY ROOM, PRIVATE INSURANCE, MEDICAID, MEDICARE, UNINSURED, AND SELF-PAY. A COST TO CHARGE RATIO WAS GENERATED USING THE IRS WORKSHEET 2 AND USED FOR ALL COMMUNITY BENEFITS REPORTED EXCEPT FOR SUBSIDIZED SERVICES WHICH USED DIRECT AND INDIRECT COSTS.
PART III, LINE 2:	THE ORGANIZATION USES A COST TO CHARGE RATIO TO ESTIMATE BAD DEBT.
PART III, LINE 3:	THE ORGANIZATION USES THE COST TO CHARGE RATIO APPLIED TO BAD DEBTS RECLASSIFIED TO CHARITY CARE AS OF THE MOST RECENT DATE AVAILABLE AFTER YEAR END.
PART III, LINE 4:	THE ORGANIZATION IS INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS FOR MISSION HEALTH SYSTEM. THE COST OF THE ORGANIZATION'S BAD DEBT IS INCLUDED IN TOTAL COST OF UNCOLLECTIBLE ACCOUNTS REPORTED ON THESE AUDITED FINANCIALS.
PART III, LINE 8:	PER THE INSTRUCTIONS, THE MEDICARE COST REPORT IS THE BASIS FOR CALCULATING THE COSTS USING ALLOWABLE COSTS RELATED TO THE REVENUE REPORTED.
PART III, LINE 9B:	PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE AND OTHER CHARITY CARE ARE NOTIFIED USING THE PROCESS DESCRIBED IN THE EDUCATION OF PATIENTS' ELIGIBILITY IN PART VI, ON LINE 3.
PART VI, LINE 2:	THE ORGANIZATION PARTICIPATES IN A COMMUNITY HEALTH ASSESSMENT (CHNA) EVERY THREE YEARS, WITH THE MOST RECENT ASSESSMENT COMPLETED IN 2015.PROCESS AND PRODUCT:THE ORGANIZATION COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS CONDUCTED IN PARTNERSHIP WITH THE RUTHERFORD POLK MCDOWELL DISTRICT HEALTH DEPARTMENT, MCDOWELL COUNTY HEALTH COALITION AND WNC HEALTHY IMPACT, AND OTHER NON-PROFIT COMMUNITY ORGANIZATIONS. THIS WRITTEN REPORT DESCRIBES:THE COMMUNITY SERVED BY THE ORGANIZATION:COMMUNITY DEMOGRAPHICS:EXISTING HEALTH RESOURCES IN THE COMMUNITY AVAILABLE TO RESPOND TO NEEDS.HOW DATA WAS COLLECTED IN THE ASSESSMENT PROCESS.THE PRIORITY HEALTH NEEDS OF THE COMMUNITY.HEALTH NEEDS AND ISSUES OF UNINSURED, LOW-INCOME, AND MINORITY GROUPS.THE PROCESS FOR IDENTIFYING AND PRIORITIZING COMMUNITY NEEDS AND SERVICES TO MEET THE 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.SHARING OF RESULTS:DETAILED FINDINGS FOR OUR ASSESSMENT ARE POSTED ON THE MISSION HEALTH SYSTEM WEBSITE HTTPS://WWW.MISSION-HEALTH.ORG/COMMUNITY-HEALTH-NEEDS-ASSESSMENT.PHP AND THE RUTHERFORD, POLK, MCDOWELL (RPM) HEALTH DISTRICT WEBSITEHTTP://WWW.RPMHD.ORG/INDEX.PHP/HEALTH-PROMOTION/COMMUNITY-HEALTH-ASSESSMENT. THE CHNA WAS PRESENTED TO THE MCDOWELL HOSPITAL BOARD OF DIRECTORS ON JANUARY 24, 2017 FOR DISCUSSION AND APPROVAL.
PART VI, LINE 3:	THE ORGANIZATION PROVIDES INFORMATION TO OUR PATIENTS REGARDING HOW TO APPLY FOR FINANCIAL ASSISTANCE/CHARITY CARE IN THE FOLLOWING WAYS: A PLAIN LANGUAGE DESCRIPTION OF THE FINANCIAL ASSISTANCE POLICY IS POSTED ON THE HOSPITAL FACILITY'S WEBSITE, ATTACHED TO BILLING INVOICES, POSTED IN THE EMERGENCY ROOMS OR WAITING ROOMS AND IN THE ADMISSIONS OFFICES. IT IS ALSO PROVIDED IN WRITING TO PATIENTS ON ADMISSION TO THE HOSPITAL FACILITY, AND UPON REQUEST. THE ORGANIZATION'S INTERNET WEBSITE AND BROCHURES CONTAIN INFORMATION ABOUT FINANCIAL ASSISTANCE THAT OFFER HELP IN OBTAINING FINANCIAL ASSISTANCE, OPTIONS FOR INSURANCE PROCESSING AND PAYMENT FOR SERVICES. IN ADDITION, ASSISTANCE IS OFFERED TO HELP IN DETERMINING IF A PATIENT QUALIFIES FOR STAGE AGENCY PROGRAMS AND MEDICAID BENEFITS AS WELL AS ASSISTANCE WITH THE APPLICATION PROCESS. THE WEBSITE AND BROCHURES EXPLAIN THAT THE HOSPITAL OFFERS DISCOUNTS BASED ON CERTAIN CRITERIA, AND NOTES THE RANGE OF DISCOUNTS AND HOW HOUSEHOLD INCOME GUIDELINES ARE USED TO DETERMINE DISCOUNT ELIGIBILITY.THE PATIENT IS DIRECTED TO CALL THE CUSTOMER SERVICE CENTER OR VISIT THE HOSPITAL'S BUSINESS OFFICE AND LISTS THE HOURS THE OFFICE AND CENTER ARE OPEN.THERE ARE ALSO MESSAGES ON PATIENT BILLS GIVING INFORMATION ON FINANCIAL ASSISTANCE AND HOW TO CONTACT THE HOSPITAL IF THEY HAVE QUESTIONS OR WANT TO APPLY.
PART VI, LINE 4:	MCDOWELL HOSPITAL IS THE ONLY HOSPITAL IN MCDOWELL COUNTY, PROVIDING SERVICES TO A COMMUNITY OF ALMOST 45,075 RESIDENTS. OUR MISSION IS TO SERVE THE HEALTHCARE NEEDS OF OUR COMMUNITY, GIVING COMPREHENSIVE, COST-EFFECTIVE QUALITY CARE WITHOUT REGARD TO RACE, COLOR, CREED OR ABILITY TO PAY. WE PROVIDE QUALITY CARE TO THE COMMUNITY OF MCDOWELL COUNTY, INCLUDING THE CITY OF MARION, AS WELL AS THE SURROUNDING COMMUNITIES OF OLD FORT, GLENWOOD, LITTLE SWITZERLAND, NEBO, PLEASANT GARDENS, AND NORTH COVE. THE ETHNIC BREAKDOWN FOR THE POPULATION SERVED INCLUDES CAUCASIAN, HISPANIC, AFRICAN AMERICAN, ASIAN/OTHER.
PART VI, LINE 5:	SEE PROGRAM SERVICE ACCOMPLISHMENTS ON PAGE 2 OF THE 990.
PART VI, LINE 6:	THE MCDOWELL HOSPITAL IS PART OF AN AFFILIATED HEALTH CARE SYSTEM WITH THE RESPECTIVE ROLES OF THE ORGANIZATION AND ITS AFFILIATES DESCRIBED BELOW IN PROMOTING THE HEALTH OF THE COMMUNITIES SERVED.MISSION HEALTH SYSTEM, INC. IS THE PARENT ORGANIZATION FOR THE CHARITABLE ORGANIZATIONS OF MISSION HOSPITAL, INC.; MISSION HEALTHCARE FOUNDATION, INC.; MISSION MEDICAL ASSOCIATES, INC; BLUE RIDGE REGIONAL HOSPITAL, INC.;THE MCDOWELL HOSPITAL, INC.;ANGEL MEDICAL CENTER, INC.; TRANSYLVANIA COMMUNITY HOSPITAL, INC.;HIGHLANDS-CASHIERS HOSPITAL, INC. AND COMMUNITY CAREPARTNERS, INC.THE SYSTEM'S MISSION IS TO OPERATE AN INTEGRATED HEALTH CARE SYSTEM FOR THE BENEFIT OF THE RESIDENTS OF WESTERN NORTH CAROLINA.MISSION HOSPITAL, INC. IS A REGIONAL INTEGRATED HEALTH FACILITY PROVIDING SUPERIOR CARE AND SERVICE TO PATIENTS AND THEIR FAMILIES THROUGH A FULL CONTINUUM OF INTEGRATED SERVICES, EDUCATION, AND RESEARCH. IT SERVES AS A TRAUMA CENTER TO PEOPLE OF WESTERN NORTH CAROLINA AND THE SURROUNDING COUNTIES. MISSION MEDICAL ASSOCIATES' MISSION IS TO PROVIDE PHYSICIAN SERVICES IN PREDOMINANTLY RURAL AREAS THAT ARE INSUFFICIENTLY SERVED, THEREBY IMPROVING THE HEALTH CARE OF THE GENERAL PUBLIC. IN MANY CASES THIS INVOLVES RECRUITING AND PLACING PRIMARY CARE PHYSICIANS, AS WELL AS PEDIATRIC AND ADULT SPECIALTY SERVICES CLOSE TO WHERE PEOPLE LIVE AND WORK.BLUE RIDGE REGIONAL HOSPITAL SERVES AS A COMMUNITY HOSPITAL IN MITCHELL, YANCEY AND SURROUNDING COUNTIES.THE MCDOWELL HOSPITAL SERVES AS A COMMUNITY HOSPITAL IN MCDOWELL AND THE SURROUNDING COUNTIES.MISSION HEALTH SYSTEM FOUNDATION, INC. SUPPORTS THE MISSION AND PROGRAMS OF MISSION HOSPITAL, INC. AND MISSION HEALTH SYSTEM, INC. AND OF OTHER ORGANIZATIONS THAT ARE TAX EXEMPT UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND WORKS TO BENEFIT THE COMMUNITY AND REGION SERVED BY THE ENTITIES LISTED ABOVE.ANGEL MEDICAL CENTER, INC. SERVES AS A COMMUNITY HOSPITAL IN MACON AND SURROUNDING COUNTIES.TRANSYLVANIA COMMUNITY HOSPITAL, INC. SERVES AS A COMMUNITY HOSPITAL IN TRANSYLVANIA AND SURROUNDING COUNTIES.HIGHLANDS-CASHIERS HOSPITAL, INC. SERVES AS A COMMUNITY HOSPITAL FOR JACKSON AND MACON AND SURROUNDING COUNTIES.COMMUNITY CAREPARTNERS, INC. OPERATES AN INPATIENT FACILITY FOR ACUTE REHABILITATION LOCATED IN ASHEVILLE, NORTH CAROLINA, AND PROVIDES A WIDE VARIETY OF POST-ACUTE CARE SERVICES TO RESIDENTS OF WESTERN NORTH CAROLINA, INCLUDING REHABILITATION, HOME HEALTH, ADULT CARE, AND HOSPICE AND PALLIATIVE CARE.MSJHS AND CCP JOINT DEVELOPMENT COMPANY DBA ASHEVILLE SPECIALTY HOSPITAL OPERATES AN INPATIENT FACILITY FOR LONG-TERM ACUTE CARE.
PART VI, LINE 7, REPORTS FILED WITH STATES	NC

Schedule H (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule I
(Form 990)

Department of the Treasury
Internal Revenue Service

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

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

Attach to Form 990.
lBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization
THE MCDOWELL HOSPITAL INC

Employer identification number
56-0623938

Part I

General Information on Grants and Assistance

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

Yes No

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

Part II

Grants and Other Assistance to Domestic Organizations and Domestic Governments. Complete if the organization answered "Yes" on Form 990, Part IV, line 21, for any recipient

that received more than $5,000. Part II can be duplicated if additional space is needed.

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

(1) MCDOWELL HEALTHCARE FOUNDATION
430 RANKIN AVENUE
MARION,NC28752

46-3395393

501(C)(3)

125,183

OPERATIONAL SUPPORT.

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

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

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

Cat. No. 50055P

Schedule I (Form 990) 2015

Page 2

Part III

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

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

(1)
(2)
(3)
(4)
(5)
(6)
(7)

Part IV

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

Return Reference	Explanation
PART I, LINE 2:	THE ORGANIZATION PROVIDES SUPPORT TO THE MCDOWELL HEALTHCARE FOUNDATION, INC. AS PART OF ITS EXEMPT PURPOSE. THE HOSPITAL HAS OVERSIGHT THROUGH REVIEW OF THE MONTHLY FINANCIALS OF THE FOUNDATION TO ENSURE THAT IT CONTINUES TO OPERATE IN ACCORDANCE WITH ITS EXEMPT PURPOSE.

Schedule I (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

Schedule J
(Form 990)

Department of the Treasury
Internal Revenue Service

Compensation Information

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

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

Attach to Form 990.
SchJMediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Part I

Questions Regarding Compensation

Yes

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

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

Travel for companions Payments for business use of personal residence

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

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

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

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

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

Compensation committee Written employment contract

Independent compensation consultant Compensation survey or study

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

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

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

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

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

Any related organization?

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

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

The organization?

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

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

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

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

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

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

Cat. No. 50053T

Schedule J (Form 990) 2015

Page 2

Part II

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

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

(A) Name and Title		(B) Breakdown of W-2 and/or 1099-MISC compensation			(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)	(F) Compensation in column(B) reported as deferred on prior Form 990
(A) Name and Title		(i) Base compensation	(ii) Bonus & incentive compensation	(iii) Other reportable compensation	(C) Retirement and other deferred compensation	(D) Nontaxable benefits	(E) Total of columns (B)(i)-(D)
1MAUREEN BEN-DAVIES MDTRUSTEE	(i) (ii)	0 ------------- 168,012	0 ------------- 5,894	0 ------------- 116	0 ------------- 5,958	0 ------------- 19,253	0 ------------- 199,233	0 ------------- 0
2ROBERT BEDNAREKTRUSTEE	(i) (ii)	0 ------------- 242,967	0 ------------- 0	0 ------------- 79,399	0 ------------- 9,960	0 ------------- 23,222	0 ------------- 355,548	0 ------------- 30,791
3LARRY HILL JRTRUSTEE	(i) (ii)	0 ------------- 173,845	0 ------------- 40,000	0 ------------- 16,403	0 ------------- 77,124	0 ------------- 13,643	0 ------------- 321,015	0 ------------- 0
4KATHY GUYETTETRUSTEE	(i) (ii)	0 ------------- 360,580	0 ------------- 142,400	0 ------------- 40,155	0 ------------- 66,890	0 ------------- 12,139	0 ------------- 622,164	0 ------------- 34,027
5ADAM KINNINGER MDPHYSICIAN	(i) (ii)	0 ------------- 243,309	0 ------------- 54,595	0 ------------- 532	0 ------------- 9,065	0 ------------- 22,284	0 ------------- 329,785	0 ------------- 0
6MARGARET SULLIVAN MDTRUSTEE	(i) (ii)	0 ------------- 294,136	0 ------------- 21,706	0 ------------- 741	0 ------------- 10,600	0 ------------- 20,376	0 ------------- 347,559	0 ------------- 0
7CAROL WOLFENBARGERPRESIDENT & CNO	(i) (ii)	0 ------------- 158,177	0 ------------- 47,255	0 ------------- 16,313	0 ------------- 0	0 ------------- 12,858	0 ------------- 234,603	0 ------------- 0
8CLINT STEWARTREGIONAL DIRECTOR - FINANC	(i) (ii)	0 ------------- 124,848	0 ------------- 22,892	0 ------------- 10,526	0 ------------- 3,903	0 ------------- 20,515	0 ------------- 182,684	0 ------------- 0
9MARK BURTON MDPHYSICIAN	(i) (ii)	0 ------------- 412,616	0 ------------- 14,066	0 ------------- 2,308	0 ------------- 15,900	0 ------------- 23,404	0 ------------- 468,294	0 ------------- 0
10EDWARD ST BERNARD MDPHYSICIAN	(i) (ii)	0 ------------- 405,441	0 ------------- 13,800	0 ------------- 2,764	0 ------------- 15,900	0 ------------- 20,144	0 ------------- 458,049	0 ------------- 0
11TERRY KERSEY JR MDPHYSICIAN	(i) (ii)	0 ------------- 387,982	0 ------------- 16,853	0 ------------- 889	0 ------------- 10,600	0 ------------- 21,925	0 ------------- 438,249	0 ------------- 0
12ERIC WEINER MDPHYSICIAN	(i) (ii)	0 ------------- 321,093	0 ------------- 13,153	0 ------------- 1,471	0 ------------- 6,534	0 ------------- 21,270	0 ------------- 363,521	0 ------------- 0
13DANIEL MCLAUGHLIN MDPHYSICIAN	(i) (ii)	0 ------------- 327,124	0 ------------- 11,300	0 ------------- 639	0 ------------- 0	0 ------------- 23,834	0 ------------- 362,897	0 ------------- 0
14LYNN BOGGSFORMER CEO	(i) (ii)	0 ------------- 3,001	0 ------------- 0	0 ------------- 272,982	0 ------------- 127	0 ------------- 8,796	0 ------------- 284,906	0 ------------- 0
15SONYA GRECKFORMER CEO	(i) (ii)	0 ------------- 382,112	0 ------------- 136,780	0 ------------- 3,466	0 ------------- 85,043	0 ------------- 11,359	0 ------------- 618,760	0 ------------- 0

Schedule J (Form 990) 2015

Page 3

Part III

Supplemental Information

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

Return Reference

Explanation

PART I, LINE 3

COMPENSATION FOR OFFICERS AND EXECUTIVES ARE SET BY MISSION HEALTH SYSTEM. SEE SCHEDULE O FOR ADDITIONAL DETAIL.

PART I, LINES 4A-B

FORMER EMPLOYEES WHO RECEIVED SEVERANCE PAY AS FOLLOWS: LYNN BOGGS $271,827 OFFICERS AS WELL AS KEY EMPLOYEES AND TOP FIVE HIGHEST COMPENSATED EMPLOYEES WHO PARTICIPATED IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN WITH CONTRIBUTION AMOUNTS. THESE AMOUNTS ARE INCLUDED IN RETIREMENT AND OTHER DEFERRED COMPENSATION ON PAGE 2 OF SCHEDULE J: SONYA GRECK $69.143 KATHY GUYETTE $53,640 OFFICERS AS WELL AS KEY EMPLOYEES AND TOP FIVE HIGHEST COMPENSATED EMPLOYEES WHO RECEIVED PAYMENTS FROM A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN. THESE PAYMENTS ARE INCLUDED IN OTHER REPORTABLE COMPENSATION ON SCHEDULE J, PAGE 2. LYNN BOGGS $ 3 KATHY GUYETTE $34,027 BOB BEDNAREK $30,791

Schedule J (Form 990) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

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

Attach to Form 990 or 990-EZ.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Return Reference	Explanation
FORM 990, PART VI, SECTION A, LINE 6	MISSION HEALTH SYSTEM, INC. (MISSION), A 501(C)(3) IS THE PARENT COMPANY OF THE ORGANIZATION. IT IS THE SOLE MEMBER OF THE ORGANIZATION.
FORM 990, PART VI, SECTION A, LINE 7A	MISSION HEALTH SYSTEM, AS SOLE MEMBER, HAS SOLE VOTING CONTROL OF THE ORGANIZATION. AS THE SOLE MEMBER OF THE ORGANIZATION, MISSION SHALL HAVE THE FOLLOWING RIGHTS AT ALL TIMES WITH RESPECT TO THE CORPORATION: APPROVAL OF ANY AMENDMENTS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE ORGANIZATION. APPROVAL OF THE MISSION, VISION AND VALUES STATEMENTS OF THE CORPORATION AND ANY AMENDMENTS THERETO. ELECTION AND REMOVAL OF THREE (3) MISSION MEMBERS OF THE BOARD OF DIRECTORS AND APPROVAL OF THE COMMUNITY DIRECTORS SELECTED AND SUBMITTED TO MISSION FOR APPROVAL BY ITS BOARD OF DIRECTORS. APPROVAL OF THE ELECTION OF THE PRESIDENT/CHIEF NURSING OFFICER, PROVIDED HOWEVER, THAT SAID APPROVAL SHALL NOT BE UNREASONABLY WITHHELD.
FORM 990, PART VI, SECTION A, LINE 7B	MISSION HEALTH SYSTEM, INC HAS RESERVED POWERS RELATED TO APPROVAL OF THE SALE, LEASE OR OTHER TRANSFER OF SUBSTANTIALLY ALL THE ASSETS OF THE ORGANIZATION. APPROVAL OF (I) THE PLEDGE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS OF THE CORPORATION, (II) THE PURCHASE OR SALE OF PROPERTY OUTSIDE THE ORDINARY COURSE OF BUSINESS, AND (III) LONG-TERM BORROWING (FOR A TERM OF MORE THAN ONE (1) YEAR) BY THE CORPORATION ABOVE FINANCIAL AND OTHER LIMITS REASONABLY RECOMMENDED BY MISSION FOR THE CORPORATION'S BOARD APPROVAL UNLESS SUCH BORROWING IS APPLIED TO PAY IN FULL ALL INDEBTEDNESS OWED BY THE CORPORATION TO MISSION. ELECTION AND REMOVAL OF UP TO THREE MISSION MEMBERS OF THE BOARD OF DIRECTORS AND APPROVAL OF THE COMMUNITY DIRECTORS SELECTED AND SUBMITTED TO MISSION FOR APPROVAL BY ITS BOARD OF DIRECTORS. APPROVAL OF THE FORMATION AND GOVERNANCE OF ANY NEW CORPORATIONS, PARTNERSHIPS OR JOINT VENTURES, ABOVE FINANCIAL AND OTHER LIMITS APPROVED BY MISSION FOR THE CORPORATION'S BOARD APPROVAL, IN WHICH THE CORPORATION HAS AN INTEREST THROUGH MEMBERSHIP, VOTING STOCK OR OTHER EQUITY PARTICIPATION. APPROVAL OF THE CAPITAL AND OPERATING BUDGETS OF THE CORPORATION. APPROVAL OF THE ELECTION OF THE PRESIDENT/CHIEF EXECUTIVE OFFICER, PROVIDED HOWEVER, THAT SAID APPROVAL SHALL NOT BE UNREASONABLY WITHHELD.
FORM 990, PART VI, SECTION B, LINE 11	THE ORGANIZATION PROVIDES DATA TO THE MANAGER OF TREASURY SERVICES OF MISSION HEALTH SYSTEM, INC. THE 990 IS PREPARED AND REVIEWED BY MANAGEMENT PRIOR TO THE REVIEW BY THE ORGANIZATION'S BOARD OF DIRECTORS. AFTER REVIEW BY THE BOARD, AND REVISIONS FOR ANY CLARIFICATIONS OR CORRECTIONS, THE FINAL COPY OF THE 990 IS PROVIDED TO THE BOARD PRIOR TO FILING THE 990.
FORM 990, PART VI, SECTION B, LINE 12C	THE INDEPENDENT DIRECTORS REVIEW CONFLICTS OF INTEREST AND DISABLING SITUATIONS, CONSIDER ANY ISSUES INVOLVING CONFLICTS AND MAKE DETERMINATIONS AS TO WHETHER A PARTICULAR RELATIONSHIP OR ARRANGEMENT WOULD DISABLE AN INDIVIDUAL FROM SERVING AS A FIDUCIARY FOR THE BOARD OR WOULD REASONABLY BE EXPECTED TO EXERT AN INFLUENCE ON THE INDIVIDUAL'S JUDGMENT AND THEREFORE PRECLUDE THE INDIVIDUAL FROM BEING AN INDEPENDENT DIRECTOR. THE BOARD MAY RETAIN COUNSEL FROM OUTSIDE AUDIT, LEGAL, GOVERNANCE OR OTHER EXPERTS. ANY DETERMINATION OF PERCENT OF REVENUE OR INCOME RECEIVED BY AN INDIVIDUAL OR ENTITY MAY BE BASED ON CERTIFICATIONS FROM OUTSIDE AUDITORS OF DISCLOSURES MADE DIRECTLY BY THE INDIVIDUAL TO THE AUDIT FIRM. PROCEDURES UPON DETERMINATION OF A CONFLICT OF INTEREST: THE INTERESTED PERSON SHALL NOT PARTICIPATE IN ANY DISCUSSION OR VOTE REGARDING THE BUSINESS RELATIONSHIP ISSUE, AND SHALL NOT BE PRESENT IN THE MEETING ROOM FOR ANY PART OF THE DISCUSSION OR VOTE RELATING TO THE BUSINESS RELATIONSHIP ISSUE. THE BOARD OF DIRECTORS WILL DISCUSS THE BUSINESS RELATIONSHIP BUT WILL NOT FORMALLY APPROVE SUCH BUSINESS RELATIONSHIP UNLESS THE DISINTERESTED MEMBERS OF THE BOARD HAVE DECIDED BY MAJORITY VOTE THAT THE BUSINESS RELATIONSHIP IS IN THE BEST INTERESTS OF AND FOR THE BENEFIT OF THE ORGANIZATION, AND IS FAIR AND REASONABLE THERETO IN ALL RESPECTS.
FORM 990, PART VI, SECTION B, LINE 15	MISSION HEALTH SYSTEM DRAWS WAGE COMPARISON DATA FROM OUTSIDE EXECUTIVE COMPENSATION CONSULTANTS TO ENSURE COMPENSATION LEVELS ARE AT FAIR MARKET VALUE THE HUMAN RESOURCES AND COMPENSATION COMMITTEE OF THE RELATED ORGANIZATION(COMMITTEE) REVIEWS THIS DATA AND RECOMMENDS TO THE BOARD OF THE RELATED ORGANIZATION ANY REVISIONS TO THE OVERALL PHILOSOPHY AND POLICY TO GUIDE THE DETERMINATION OF COMPENSATION AND BENEFIT PACKAGES FOR EXECUTIVES WHICH INCLUDES THE PRESIDENT & CNO, THE REGIONAL DIRECTOR OF FINANCE, AS WELL AS ALL OTHER EXECUTIVES, WHICH WOULD INCLUDE ALL KEY EMPLOYEES. THE COMMITTEE KEEPS AND DISTRIBUTES MINUTES OF ALL ITS MEETINGS TO ITS MEMBERS. ITEMS OF A SENSITIVE NATURE ARE REFERENCED IN THE MINUTES WITH DETAILED, SUPPORTING DOCUMENTATION RETAINED ON FILE. THE COMMITTEE ALSO DISCLOSES ANY POTENTIAL CONFLICTS OF INTEREST SITUATIONS TO THE COMMITTEE CHAIRMAN THAT MAY AFFECT THEIR INDEPENDENT DIRECTORS' STATUS AS SOON AS THEY ARISE, AND MAINTAINS COMPLETE DOCUMENTATION OF ALL MATTERS DISCUSSED BY THE COMMITTEE. THE COMMITTEE OBTAINS EDUCATION AND TRAINING TO EXERCISE ALL RESPONSIBILITIES EFFECTIVELY AND KEEPS ABREAST OF SIGNIFICANT DEVELOPMENTS IN EXECUTIVE COMPENSATION PRACTICES AND REGULATIONS, AND ENSURES THAT ALL ASPECTS OF MISSION HEALTH SYSTEM AND HOSPITAL EXECUTIVE COMPENSATION ADHERE TO ALL RELEVANT REGULATORY REQUIREMENTS, AND REVIEWS THE COMMITTEE CHARTER ANNUALLY REVISING AS APPROPRIATE AND CONDUCTS AN ANNUAL EVALUATION OF THE COMMITTEE'S PERFORMANCE.
FORM 990, PART VI, SECTION C, LINE 19	THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST. THE FINANCIAL STATEMENTS ARE ATTACHED TO THIS FORM 990 OR ARE AVAILABLE UPON REQUEST.
FORM 990, PART IX, LINE 11G	CONTRACT MEDICAL LABOR: PROGRAM SERVICE EXPENSES 11,635,243. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11,635,243. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 4,229,632. MANAGEMENT AND GENERAL EXPENSES 746,406. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,976,038. MEDICAL FEES: PROGRAM SERVICE EXPENSES 916,374. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 916,374. OTHER: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 246,485. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 246,485.

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

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Additional Data

Software ID:
Software Version:

- TIN:

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

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

Attach to Form 990.
MediumBullet

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

OMB No. 1545-0047

2015

Open to Public Inspection

Name of the organization

THE MCDOWELL HOSPITAL INC

Employer identification number

56-0623938

Part I

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

(a) Name, address, and EIN (if applicable) of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity
(1) MCDOWELL HOSPITAL IMAGING SERVICES LLC 414 RANKIN DRIVE MARION,NC28752	MEDICAL IMAGING SERVICES	NC	0	189,811	THE MCDOWELL HOSPITAL INC

Part II

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1)MISSION HOSPITAL INC 400 RIDGEFIELD COURT SUITE 100 ASHEVILLE,NC28806 56-0532141	ACUTE CARE HOSPITAL	NC	501(C)(3)	LINE 3	MISSION HEALTH SYSTEM INC		No
(2)MISSION HEALTH SYSTEM FOUNDATION INC 400 RIDGEFIELD COURT SUITE 100 ASHEVILLE,NC28806 56-1881331	FOUNDATION	NC	501(C)(3)	LINE 7	MISSION HEALTH SYSTEM INC		No
(3)MISSION HEALTH SYSTEM INC 400 RIDGEFIELD COURT SUITE 100 ASHEVILLE,NC28806 58-1450888	SUPPORTING ORGANIZATION	NC	501(C)(3)	LINE 11A, I	N/A		No
(4)MISSION MEDICAL ASSOCIATES INC 400 RIDGEFIELD COURT ASHEVILLE,NC28806 26-3627231	EMPLOYED PHYSICIAN GROUP	NC	501(C)(3)	LINE 9	MISSION HEALTH SYSTEM INC		No
(5)BLUE RIDGE REGIONAL HOSPITAL POST OFFICE BOX 9 SPRUCE PINE,NC28777 56-1025032	COMMUNITY HOSPITAL	NC	501(C)(3)	LINE 3	MISSION HEALTH SYSTEM INC		No
(6)BLUE RIDGE REGIONAL HOSPITAL FOUNDATION PO BOX 247 SPRUCE PINE,NC28777 58-2172660	FOUNDATION	NC	501(C)(3)	LINE 11A, I	BLUE RIDGE REGIONAL HOSPITAL INC		No
(7)MCDOWELL HEALTHCARE FOUNDATION INC 430 RANKIN DRIVE MARION,NC28752 46-3395393	FOUNDATION	NC	501(C)(3)	LINE 7	THE MCDOWELL HOSPITAL INC	Yes
(8)TRANSYLVANIA COMMUNITY HOSPITAL INC 260 HOSPITAL DRIVE BREVARD,NC28712 56-0562293	COMMUNITY HOSPITAL	NC	501(C)(3)	LINE 3	MISSION HEALTH SYSTEM INC		No
(9)TRANSYLVANIA REGIONAL HOSPITAL FOUNDATION INC PO BOX 2440 BREVARD,NC28712 56-1458024	FOUNDATION	NC	501(C)(3)	LINE 11A, I	TRANSYLVANIA COMMUNITY HOSPITAL		No
(10)ANGEL MEDICAL CENTER INC PO BOX 1209 FRANKLIN,NC28744 56-6000064	COMMUNITY HOSPITAL	NC	501(C)(3)	LINE 3	MISSION HEALTH SYSTEM INC		No
(11)TRANSYLVANIA PHYSICIAN SERVICES INC 260 HOSPITAL DRIVE BREVARD,NC28712 56-1920816	PHYSICIAN SERVICES	NC	501(C)(3)	LINE 3	TRANSYLVANIA COMMUNITY HOSPITAL		No
(12)ANGEL MEDICAL CENTER AUXILIARY PO BOX 1209 FRANKLIN,NC28744 56-2133719	SUPPORTING ORGANIZATION	NC	501(C)(3)	LINE 11A, I	ANGEL MEDICAL CENTER INC		No
(13)HIGHLANDS-CASHIERS HOSPITAL INC PO BOX 190 HIGHLANDS,NC28741 56-0509400	COMMUNITY HOSPITAL	NC	501(C)(3)	LINE 3	MISSION HEALTH SYSTEM INC		No
(14)HIGHLANDS-CASHIERS PHYSICIAN SERVICES INC PO BOX 742 HIGHLANDS,NC28741 45-2422428	PHYSICIAN SERVICES	NC	501(C)(3)	LINE 11A, I	HIGHLANDS-CASHIERS HOSPITAL INC		No
(15)COMMUNITY CAREPARTNERS INC PO BOX 5779 ASHEVILLE,NC28813 56-2005198	LONG TERM REHABILITATION	NC	501(C)(3)	LINE 9	MISSION HEALTH SYSTEM INC		No

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

Cat. No. 50135Y

Schedule R (Form 990) 2015

Page 2

Part III

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

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Predominant income(related, unrelated, excluded from tax under sections 512-514)	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?		(k) Percentage ownership
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity		(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No
(1) ASHEVILLE IMAGING LLP 534 BILTMORE AVENUE ASHEVILLE,NC28801 56-1907201	OUTPATIENT SERVICES	NC	N/A
(2) ASHEVILLE MRI PO BOX 2959 ASHEVILLE,NC28802 56-1665863	MEDICAL IMAGING SERVICES	NC	N/A
(3) BLUE RIDGE DME LLC 125 HOSPITAL DRIVE SPRUCE PINE,NC28777 26-3570174	HOME MEDICAL EQUIPMENT & SUPPLIES SALES	NC	N/A
(4) BLUE RIDGE-TKC LLC 5935 CARNEGIE BLVD CHARLOTTE,NC28209 47-1382912	REAL ESTATE RENTAL	NC	N/A
(5) HEALTHCARE III LIMITED PARTNERSHIP 260 HOSPITAL DRIVE BREVARD,NC28712 56-1599696	RENTAL	NC	N/A
(6) HEALTHCARE LIMITED LIABILITY COMPANY VII 260 HOSPITAL DRIVE BREVARD,NC28712 20-0343455	RENTAL	NC	N/A
(7) IMAGING REALTY LLP 534 BILTMORE AVENUE ASHEVILLE,NC28801 56-1907203	MEDICAL BUILDING	NC	N/A
(8) MSJHS AND CCP JOINT DEVELOPMENT COMPANY LLC 428 BILTMORE AVENUE ASHEVILLE,NC28801 56-2250464	LONG TERM ACUTE CARE HOSPITAL	NC	N/A
(9) SPRUCE PINE HEALTHCARE LLC 5935 CARNEGIE BLVD CHARLOTTE,NC28209 47-1390107	REAL ESTATE	NC	N/A
(10) TRANSYLVANIA HEALTHECARE II LIMITED PARTNERSHIP 2 MEDICAL PARK DRIVE BREVARD,NC28712 20-0333230	REAL ESTATE	NC	N/A
(11) WESTERN NC HEALTHCARE INNOVATORS III LLC 5935 CARNEGIE BLVD CHARLOTTE,NC28209 46-4053310	REAL ESTATE RENTAL	NC	N/A
(12) WESTERN NC HEALTHCARE INNOVATORS LLC 5935 CARNEGIE BLVD CHARLOTTE,NC28209 80-0787882	REAL ESTATE RENTAL	NC	N/A
(13) WESTERN REGIONAL RADIATION THERAPY CENTER 68 HOSPITAL DRIVE SYLVA,NC28799 56-1849395	RADIATION THERAPY	NC	N/A
(14) WNC STONE CENTER 509 BILTMORE AVENUE ASHEVILLE,NC28801 27-2152974	LITHOTRIPSY RENTAL	NC	N/A
(15) MCDOWELL MRI LLC 414 RANKIN DRIVE MARION,NC28752 75-3046378	MEDICAL IMAGING	NC	THE MCDOWELL HOSPITAL INC	RELATED				No			No	51.000 %
(16) BREVARD MRI AT TRANSYLVANIA COMMUNITY HOSPITAL LLC 260 HOSPITAL DRIVE BREVARD,NC28712 20-3281110	MEDICAL IMAGING	NC	N/A

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) MISSION VENTURES INC 400 RIDGEFIELD COURT SUITE 100 ASHEVILLE,NC28806 56-1341621	DISSOLVED SEPTEMBER 7 2016	NC	N/A	C				No
(2) DOGWOOD INSURANCE COMPANY LTD THE GRAND PAVILION COMMERCIAL CENTR CJ	CAPTIVE INSURANCE ENTITY	CJ	N/A	C				No
(3) TRANSYLVANIA SERVICES INC 260 HOSPITAL DRIVE BREVARD,NC28712 56-1448199	REAL ESTATE	NC	N/A	C				No
(4) MISSION HEALTH PARTNERS INC 509 BILTMORE AVENUE ASHEVILLE,NC28806 46-5566095	CLINICALLY INTEGRATED NETWORK	NC	N/A	C				No
(5) HEALTHY STATE INC 509 BILTMORE AVENUE ASHEVILLE,NC28801 81-2108613	ADMINISTRATIVE	NC	N/A	C				No

Schedule R (Form 990) 2015

Page 3

Part V

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

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

Yes

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

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

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

Yes

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

Yes

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

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

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

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

Yes

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) MCDOWELL HEALTHCARE FOUNDATION	B	125,183	FMV
(2) MCDOWELL HEALTHCARE FOUNDATION	C	191,948	FMV

Schedule R (Form 990) 2015

Page 4

Part VI

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

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

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2015

Page 5

Part VII

Supplemental Information

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

Return Reference	Explanation

Schedule R (Form 990) 2015

Additional Data

Software ID:
Software Version:

1	Briefly describe the organization’s mission or most significant activities: PROVIDE ACUTE CARE INPATIENT, OUTPATIENT AND EMERGENCY MEDICAL CARE.
2	Check this box
3	Number of voting members of the governing body (Part VI, line 1a) ........	3	15
4	Number of independent voting members of the governing body (Part VI, line 1b) .....	4	7
5	Total number of individuals employed in calendar year 2015 (Part V, line 2a) ......	5	502
6	Total number of volunteers (estimate if necessary) .............	6	137
7a	Total unrelated business revenue from Part VIII, column (C), line 12 ........	7a	0
b	Net unrelated business taxable income from Form 990-T, line 34 .........	7b	0

		Prior Year	Current Year
8	Contributions and grants (Part VIII, line 1h) .........	225,981	197,699
9	Program service revenue (Part VIII, line 2g) .........	55,991,547	63,287,513
10	Investment income (Part VIII, column (A), lines 3, 4, and 7d ) ....	-88,865	36,394
11	Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e)	42,222	0
12	Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)	56,170,885	63,521,606
13	Grants and similar amounts paid (Part IX, column (A), lines 1–3 )...	126,155	130,562
14	Benefits paid to or for members (Part IX, column (A), line 4).....	0	0
15	Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10)	31,954,363	22,862,474
16a	Professional fundraising fees (Part IX, column (A), line 11e) .....	0	0
b	Total fundraising expenses (Part IX, column (D), line 25) 0
17	Other expenses (Part IX, column (A), lines 11a–11d, 11f–24e)....	19,841,983	33,867,592
18	Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25)	51,922,501	56,860,628
19	Revenue less expenses. Subtract line 18 from line 12.......	4,248,384	6,660,978
		Beginning of Current Year	End of Year
20	Total assets (Part X, line 16).............	32,482,474	41,180,128
21	Total liabilities (Part X, line 26).............	11,938,260	13,974,936
22	Net assets or fund balances. Subtract line 21 from line 20.....	20,544,214	27,205,192

Sign Here

	Signature of officer	Date

	Type or print name and title


4a	(Code: ) (Expenses $ 52,409,932 including grants of $ 130,562 ) (Revenue $ 63,287,513 )
	THE ORGANIZATION IS COMMITTED TO PROMOTING HEALTH IN THE COMMUNITY THROUGH DIVERSE AND INNOVATIVE PROGRAMS, DESIGNED TO REACH A BROAD-RANGE TARGET POPULATION AND CREATE THE HIGHEST IMPACT, WITH A SPECIAL EMPHASIS ON THE UNINSURED AND UNDERINSURED. THESE PROGRAMS INCLUDE SPORTS MEDICINE THROUGH THE LOCAL SCHOOL, NATIONAL CANCER SURVIVOR DAY CELEBRATION AND A QUARTERLY MAGAZINE PUBLICATION TO YOUR HEALTH. WHILE NOT AN EXHAUSTIVE LIST, THESE PROGRAMS PROVIDE AN EXAMPLE OF THE EFFORTS TO PROMOTE HEALTHY LIVING WITHIN THE COMMUNITY.

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












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












4d	Other program services (Describe in Schedule O.)
	(Expenses $ including grants of $ ) (Revenue $ )
4e	Total program service expenses52,409,932

(A) Name and Title	(B) Average hours per week (list any hours for related organizations below dotted line)			(D) Reportable compensation from the organization (W- 2/1099-MISC)	(E) Reportable compensation from related organizations (W- 2/1099-MISC)	(F) Estimated amount of other compensation from the organization and related organizations
(A) Name and Title
(18) EDWARD ST BERNARD MD........................................................................ PHYSICIAN	40.00 .......................	X		0	422,005	36,044
(19) TERRY KERSEY JR MD........................................................................ PHYSICIAN	40.00 .......................	X		0	405,724	32,525
(20) ERIC WEINER MD........................................................................ PHYSICIAN	40.00 .......................	X		0	335,717	27,804
(21) DANIEL MCLAUGHLIN MD........................................................................ PHYSICIAN	40.00 .......................	X		0	339,063	23,834
(22) LYNN BOGGS........................................................................ FORMER CEO	0.00 .......................0.00		X	0	275,983	8,923
(23) SONYA GRECK........................................................................ FORMER CEO	0.00 .......................60.00		X	0	522,358	96,402

1b	Sub-Total................
c	Total from continuation sheets to Part VII, Section A....
d	Total (add lines 1b and 1c)...........	32,674	4,994,641	592,626

(A) Name and business address	(B) Description of services	(C) Compensation
DESIGN STRATEGIES LLC 500 EAST BOULEVARD CHARLOTTE,NC28203	ARCHITECTURAL SERVICES	105,558




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 1

1a	Federated campaigns..		1a
b	Membership dues..		1b
c	Fundraising events..		1c
d	Related organizations		1d	191,948
e	Government grants (contributions)		1e

f	All other contributions, gifts, grants, and similar amounts not included above		1f	5,751

g	Noncash contributions included in lines 1a-1f:$
h Total.Add lines 1a-1f.......		197,699

			Business Code
2a	NET PATIENT SERVICE REVENUE	900099	61,502,983	61,502,983
b	OTHER OPERATING REVENUE	900099	1,784,530	1,784,530
c
d
e
f	All other program service revenue.
g Total.Add lines 2a–2f.....			63,287,513

3 Investment income (including dividends, interest, and othersimilar amounts) ..........			17,879			17,879
4 Income from investment of tax-exempt bond proceeds
5 Royalties...........
		(ii) Personal	(i) Real
6a	Gross rents
b	Less: rental expenses
c	Rental income or (loss)
d	Net rental income or (loss)......
		(ii) Other	(i) Securities
7a	Gross amount from sales of assets other than inventory		19,263
b	Less: cost or other basis and sales expenses	748	0
c	Gain or (loss)	-748	19,263
d	Net gain or (loss).....			18,515			18,515
8a	Gross income from fundraising events (not including $ of contributions reported on line 1c). See Part IV, line 18 ....
	a
b	Less: direct expenses ...b
c	Net income or (loss) from fundraising events..
9a	Gross income from gaming activities. See Part IV, line 19 ...
	a
b	Less: direct expenses ...b
c	Net income or (loss) from gaming activities..
10a	Gross sales of inventory, less returns and allowances ..
	a
b	Less: cost of goods sold ..b
c	Net income or (loss) from sales of inventory..
Business Code			Miscellaneous Revenue
11a
b
c
d	All other revenue ....
e	Total. Add lines 11a–11d ......
12	Total revenue. See Instructions......			63,521,606	63,287,513	0	36,394

1	Grants and other assistance to domestic organizations and domestic governments. See Part IV, line 21	130,562	130,562
2	Grants and other assistance to individuals in the United States. See Part IV, line 22
3	Grants and other assistance to governments, organizations, and individuals outside the United States. See Part IV, lines 15 and 16
4	Benefits paid to or for members
5	Compensation of current officers, directors, trustees, and key employees ....	434,658		434,658
6	Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....
7	Other salaries and wages	17,953,124	16,959,378	993,746
8	Pension plan accruals and contributions (include section 401(k) and 403(b) employer contributions) ....	272,494	226,170	46,324
9	Other employee benefits .......	2,757,510	2,288,733	468,777
10	Payroll taxes ...........	1,444,688	1,199,091	245,597
11	Fees for services (non-employees):
a	Management ......	935,287	794,994	140,293
b	Legal .........	51,616		51,616
c	Accounting ...........	12,059		12,059
d	Lobbying ...........
e	Professional fundraising services. See Part IV, line 17
f	Investment management fees ......
g	Other (If line 11g amount exceeds 10% of line 25, column (A) amount, list line 11g expenses on Schedule O)	17,774,140	16,781,249	992,891
12	Advertising and promotion ....	80,867	68,737	12,130
13	Office expenses .......	420,396	357,337	63,059
14	Information technology ......	453,395	453,395
15	Royalties ..
16	Occupancy ...........	1,523,487	1,218,790	304,697
17	Travel ............	131,853	100,208	31,645
18	Payments of travel or entertainment expenses for any federal, state, or local public officials .
19	Conferences, conventions, and meetings ....	15,178	12,142	3,036
20	Interest ...........	58,003	45,242	12,761
21	Payments to affiliates .......
22	Depreciation, depletion, and amortization ..	2,400,206	1,920,165	480,041
23	Insurance ...	158,834	135,009	23,825
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	PHARMACEUTICALS	4,788,492	4,788,492
b	MEDICAL SUPPLIES	3,812,109	3,812,109
c	REPAIRS AND MAINTENANCE	887,730	798,957	88,773
d	EQUIPMENT LEASES	280,194	252,175	28,019
e	All other expenses	83,746	66,997	16,749
25	Total functional expenses. Add lines 1 through 24e	56,860,628	52,409,932	4,450,696	0
26	Joint costs. Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation. Check here if following SOP 98-2 (ASC 958-720).

1	Cash–non-interest-bearing ........			116,837	1	1,592,461
2	Savings and temporary cash investments .........			1,422,195	2	0
3	Pledges and grants receivable, net ......			0	3	0
4	Accounts receivable, net .............			7,814,331	4	9,189,981
5	Loans and other receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of Schedule L
					5
6	Loans and other receivables from other disqualified persons (as defined under section 4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employers and sponsoring organizations of section 501(c)(9) voluntary employees' beneficiary organizations (see instructions) Complete Part II of Schedule L
					6
7	Notes and loans receivable, net ....				7
8	Inventories for sale or use ........			785,881	8	785,963
9	Prepaid expenses and deferred charges ......			25,510	9	89,922
10a	Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D	10a	54,304,282
b	Less: accumulated depreciation	10b	25,518,326	21,371,043	10c	28,785,956
11	Investments—publicly traded securities .				11
12	Investments—other securities. See Part IV, line 11 .....				12
13	Investments—program-related. See Part IV, line 11 ..			56,880	13	126,791
14	Intangible assets ...............				14
15	Other assets. See Part IV, line 11 ...........			889,797	15	609,054
16	Total assets. Add lines 1 through 15 (must equal line 34)...			32,482,474	16	41,180,128

17	Accounts payable and accrued expenses .....	3,297,286	17	5,126,145
18	Grants payable ...		18
19	Deferred revenue .........	1,207,488	19	2,558,155
20	Tax-exempt bond liabilities .........		20
21	Escrow or custodial account liability. Complete Part IV of Schedule D		21
22	Loans and other payables to current and former officers, directors, trustees, key employees, highest compensated employees, and disqualified
	persons. Complete Part II of Schedule L..		22
23	Secured mortgages and notes payable to unrelated third parties ..		23
24	Unsecured notes and loans payable to unrelated third parties ..		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	7,433,486	25	6,290,636
26	Total liabilities. Add lines 17 through 25..	11,938,260	26	13,974,936

	Organizations that follow SFAS 117 (ASC 958), check here and complete lines 27 through 29, and lines 33 and 34.
27	Unrestricted net assets	20,535,954	27	27,196,932
28	Temporarily restricted net assets ...........	8,260	28	8,260
29	Permanently restricted net assets		29
	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 ...........	20,544,214	33	27,205,192
34	Total liabilities and net assets/fund balances ........	32,482,474	34	41,180,128