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Form990 Return of Organization Exempt From Income Tax OMB No 1545-0047

Under section 501 (c), 527, or 4947( a)(1) of the Internal Revenue Code ( except black lung2012benefit trust or private foundation)

Department of the Treasury

Internal Revenue Service 1-The organization may have to use a copy of this return to satisfy state reporting requirements

A For the 2012 calendar year, or tax year beginning 01-01-2012 , 2012, and ending 12-31-2012

B Check if applicableC Name of organization D Employer identification number

'ST LUKE S METHODIST HOSPITALF Address change 42-0504780

Doing Business AsF Name change ST LUKE'S HOSPITAL

1 Initial return Number and street (or P 0 box if mail is not delivered to street address) Room/suite E Telephone number1026 A AVENUE NE

p Terminated(319)369-7796

-( Amended return City or town, state or country, and ZIP + 4CEDAR RAPIDS, IA 52402

1 Application pending G Gross receipts $ 614,804,410

F Name and address of principal officer H(a) Is this a group return forTHEODORE E TOWNSEND JR affiliates? (-Yes No1026 A AVENUE NECEDAR RAPIDS IA 52402 H(b) Are all affiliates included? F Yes F_ No

If "No," attach a list (see instructions)I Tax-exempt status F 501(c)(3) 1 501(c) ( ) I (insert no ) (- 4947(a)(1) or F_ 527

H(c) Group exemption number 0-J Website :1- WWWSTLUKESCRORG

K Form of organization F Corporation 1 Trust F_ Association (- Other 0- L Year of formation 1903 M State of legal domicile IA

Summary

1 Briefly describe the organization's mission or most significant activitiesTO GIVE THE HEALTHCARE WE'D LIKE OUR LOVED ONES TO RECEIVE

w

2 Check this box if the organization discontinued its operations or disposed of more than 25% of its net assets

3 Number of voting members of the governing body (Part VI, line 1a) . . . . . . . 3 23

4 Number of independent voting members of the governing body (Part VI, line 1 b) . . . . 4 16

5 Total number of individuals employed in calendar year 2012 (Part V, line 2a) . 5 3,546

6 Total number of volunteers (estimate if necessary) 6 1,003

7aTotal unrelated business revenue from Part VIII, column (C), line 12 . . . . . . . 7a 634,684

b Net unrelated business taxable income from Form 990-T, line 34 . . . . . . . 7b 18,242

Prior Year Current Year

8 Contributions and grants (Part VIII, line 1h) . 6,315,054 3,332,056

9 Program service revenue (Part V I I I , l i n e 2g) . . . . . . . . 334,803,685 349,214,371

N 10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) . . . 5,510,147 19,989,256

11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 5,439,982 3,200,697

12 Total revenue-add lines 8 through 11 (must equal Part VIII, column (A), line12) . . . . . . . . . . . . . . . . . . 352,068,868 375,736,380

13 Grants and similar amounts paid (Part IX, column (A), lines 1-3) . 5,287,667 3,655,332

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), lines5-10) 169,390,988 184,890,584

16a Professional fundraising fees (Part IX, column (A), line 11e) 0 0

LLJb Total fundraising expenses (Part IX, column (D), line 25) 0-0

17 Other expenses (Part IX, column (A), lines 11a-11d, 11f-24e) . . . . 158,250,758 170,361,046

18 Total expenses Add lines 13-17 (must equal Part IX, column (A), line 25) 332,929,413 358,906,962

19 Revenue less expenses Subtract line 18 from line 12 19,139,455 16,829,418

Beginning of CurrentEnd of Year

Year

-AM

20 Total assets (Part X, line 16) . . . . . . . . . . . . 396,324,331 404,903,256

%TS 21 Total liabilities (Part X, line 26) . . . . . . . . . . . . 169,168,133 162,358,258

ZLL 22 Net assets or fund balances Subtract line 21 from line 20 227,156,198 242,544,998

lijaW Signature Block

Under penalties of perjury, I declare that I have examined this return, includinmy knowledge and belief, it is true, correct, and complete Declaration of prepspreparer has any knowledge

SignSignature of officer

Here MILTON E AUNAN II VP FINANCE/CFO

Type or print name and title

Print/Type preparer's name Preparers signature

PaidFirm's name 0-

Pre pare rUse Only Firm's address 1-

May the IRS discuss this return with the preparer shown above? (see instructs

For Paperwork Reduction Act Notice, see the separate instructions.

Form 990 ( 2012) Page 2

Statement of Program Service AccomplishmentsCheck if Schedule 0 contains a response to any question in this Part III .F

1 Briefly describe the organization 's mission

THE MISSION OF ST LUKE'S METHODIST HOSPITAL IS TO GIVE THE HEALTHCARE WE'D LIKE OUR LOVED ONES TO RECEIVEOUR STRATEGIC FRAMEWORK IS BUILT UPON THESE PILLARS 1 DEMONSTRABLY BETTER QUALITY IN OUR PATIENT CARE WESTRIVE TO PROVIDE THE BEST POSSIBLE HEALTHCARE SERVICE TO OUR PATIENTS AND THEIR FAMILIES OUR SERVICES AREACCESSIBLE TO ALL PERSONS REGARDLESS OF RACE, RELIGION, GENDER OR ABILITY TO PAY 2 ST LUKE'S IS COMMITTED TOBEING THE WORKSHOP OF CHOICE FOR PHYSICIANS WHO PRACTICE IN OUR HOSPITAL 3 ST LUKE'S IS COMMITTED TOPARTNERING WITH ALL PERSONNEL, WHO TOGETHER MAKE UP THE BOARD OF DIRECTORS, MEDICAL STAFF, VOLUNTEERS,EMPLOYEES AND STUDENTS WHICH RESULTS IN PERSONAL SATISFACTION, RECOGNITION, ACHIEVEMENT ANDCOMMITMENT 4 ST LUKE'S IS COMMITTED TO STRENGTHENING OUR CORE SERVICES TO RENDER THE HIGHEST QUALITY OFHEALTHCARE 5 ST LUKE'S IS COMMITTED TO BEING A REGIONAL RESOURCE FOR EASTERN IOWANS

2 Did the organization undertake any significant program services during the year which were not listed onthe prior Form 990 or 990-EZ7 . . . . . . . . . . . . . . . . . . . . . . fl Yes F No

If"Yes,"describe these new services on Schedule 0

3 Did the organization cease conducting, or make significant changes in how it conducts, any programservices? . . . . . . . . . . . . . . . . . . . . . . . . . . . . F Yes F7 No

If"Yes,"describe these changes on Schedule 0

4 Describe the organization 's program service accomplishments for each of its three largest program services , as measured byexpenses Section 501(c)(3) and 501( c)(4) organizations are required to report the amount of grants and allocations to others,the total expenses , and revenue , if any, for each program service reported

4a (Code ) ( Expenses $ 276,230,798 including grants of $ 948,355 ) (Revenue $ 350,126,765

HEALTH-CARE SERVICESST LUKE'S METHODIST HOSPITAL IS AN IMPORTANT ELEMENT OF THE HEALTH-CARE DELIVERY SYSTEM THAT THE CEDAR RAPIDSCOMMUNITIES RELY ON EVERY DAY IT IS COMMITTED TO PROVIDING QUALITY HEALTH CARE, AND TO USING ITS RESOURCES TO THE GREATEST COMMUNITYBENEFIT ST LUKE'S METHODIST HOSPITAL PROVIDES INPATIENT AND OUTPATIENT MEDICAL SERVICES TO TREAT INDIVIDUALS WITH DISEASES, ILLNESS ANDINJURIES WITH VARYING COMPLEXITIES IT PROVIDES SERVICES TO IMPROVE THE HEALTH OF PATIENTS AND TO BETTER THEIR QUALITY OF LIFE ALL SERVICESARE PROVIDED REGARDLESS OF AN INDIVIDUAL'S RACE, CREED, SEX, NATIONALITY, HANDICAP, AGE OR ABILITY TO COMPENSATE FOR SERVICES RENDEREDTHESE INCLUDE, BUT ARE NOT LIMITED TO, GENERAL ACUTE CARE, SURGERIES, HOME HEALTH, INTENSIVE CARE AND CRITICAL CARE, MENTAL HEALTH CARE,CARDIOLOGY, ONCOLOGY, REHABILITATION, SKILLED NURSING, BEHAVIORAL DISORDER PROGRAMS, MATERNAL/CHILD CARE, LABORATORY, PALLIATIVE CARE,PHARMACEUTICAL DRUGS, EMERGENCY SERVICES, OUTPATIENT CLINICS, CHECK-UPS AND RADIOLOGY SOME OF THE SERVICES PROVIDED DO NOT GENERATEENOUGH INCOME TO OFFSET THEIR COST IN THE FISCAL PERIOD ENDED DECEMBER 31, 2012, ST LUKE'S METHODIST HOSPITAL ADMITTED 18,305 PATIENTSRESULTING IN A TOTAL OF 83,652 PATIENT DAYS OUTPATIENT VISITS TOTALED 599,160 AND TOTAL OUTPATIENT SURGERY REGISTRATIONS, INCLUDING THEDIGESTIVE HEALTH CENTER, FOR THE SAME PERIOD WERE 12,540 THERE WERE ALSO 56,970 EMERGENCY ROOM VISITS AND 2,595 BABIES DELIVERED

4b (Code ) ( Expenses $ 32,548,274 including grants of $ 2,706,977 ) (Revenue $ 0 )

COMMUNITY BENEFIT, INCLUDING CHARITY CARECHARITY CARE AND MEANS-TESTED PROGRAMS ST LUKE'S METHODIST HOSPITAL PROVIDES CHARITY CAREAND OTHER MEANS-TESTED PROGRAMS WITH THE GOAL TO IMPROVE THE COMMUNITY'S OVERALL HEALTH AND ACCESS TO CARE THIS INCLUDES HEALTH-CARESERVICES REGARDLESS OF THE PATIENT'S INSURANCE COVERAGE OR FINANCIAL STATUS CHARITY CARE AND PARTIAL TO FULL FINANCIAL ASSISTANCE ISPROVIDED TO PATIENTS ON A CASE-BY-CASE BASIS CHARITY CARE WAS MADE AVAILABLE TO PEOPLE AT A VALUE OF $6,680,421 IN 2012 OFTENTIMES, ST LUKE'SMETHODIST HOSPITAL RECEIVES PAYMENTS FROM PAYORS OR PATIENTS THAT ARE LESS THAN IT CHARGES FOR SERVICES ST LUKE'S METHODIST HOSPITALPARTICIPATES IN MEDICAID AND OTHER GOVERNMENT-SPONSORED HEALTH-CARE PROGRAMS ST LUKE'S METHODIST HOSPITAL'S NET COST OF PROVIDING CAREFOR WHICH IT RECEIVES PAYMENT BELOW ITS COST IS $14,285,436 FOR 2012 TOTAL CHARITY CARE AND MEANS-TESTED PROGRAMS REPORTED VALUE$20,965,858 OTHER BENEFITS ST LUKE'S METHODIST HOSPITAL PROVIDES SEVERAL OTHER BENEFITS THAT ASSIST THE COMMUNITY PROGRAMS MAY INCLUDE,BUT ARE NOT LIMITED TO, COMMUNITY HEALTH IMPROVEMENT SERVICES AND COMMUNITY BENEFIT OPERATIONS SUCH AS PREVENTION AND HEALTHSCREENINGS, HEALTH PROFESSIONAL'S EDUCATION, SUBSIDIZED HEALTH SERVICES, AND CASH AND IN-KIND CONTRIBUTIONS TO COMMUNITY GROUPS STLUKE'S METHODIST HOSPITAL COLLABORATES WITH OTHER HOSPITALS, CHURCHES, SCHOOLS, CHAMBERS OF COMMERCE AND DAYCARE CENTERS TO IMPROVECOMMUNITY HEALTH AND EXPAND ACCESS TO HEALTH CARE ST LUKE'S METHODIST HOSPITAL HAS DEDICATED STAFF TO ASSIST COMMUNITY BENEFIT EFFORTSAPPROXIMATELY 46,744 PERSONS WERE SERVED THROUGH THESE PROGRAMS TOTAL OTHER BENEFITS REPORTED VALUE $11,582,416

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

4d Other program services (Describe in Schedule 0 )

(Expenses $ including grants of $ ) (Revenue $

4e Total program service expenses 1- 308,779,072

Form 990 (2012)

Form 990 (2012) Page 3

Checklist of Required Schedules

Yes No

1 Is the organization described in section 501(c)(3) or4947(a)(1) (other than a private foundation)? If "Yes," Yes

complete Schedule As . . . . . . . . . . . . . . . . . . . . . . . 1

2 Is the organization required to complete Schedule B, Schedule of Contributors (see instructions)? . 2 Yes

3 Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to No

candidates for public office? If "Yes,"complete Schedule C, Part Is . . . . . . . . .

4 Section 501 ( c)(3) organizations . Did the organization engage in lobbying activities, or have a section 501(h) Yes

election in effect during the tax year? If "Yes "complete Schedule C Part II . . . . . . . 4, ,

5 Is the organization a section 501 (c)(4), 501 (c)(5), or 501(c)(6) organization that receives membership dues,assessments, or similar amounts as defined in Revenue Procedure 98-19? If "Yes," complete Schedule C,

Part HIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 N o

6 Did the organization maintain any donor advised funds or any similar funds or accounts for which donors have theright to provide advice on the distribution or investment of amounts in such funds or accounts? If "Yes,"complete

Schedule D, Part I . . . . . . . . . . . . . . . . . . . . . . 6N o

7 Did the organization receive or hold a conservation easement, including easements to preserve open space,

the environment, historic land areas, or historic structures? If "Yes,"complete Schedule D, Part IIS . 7 No

8 Did the organization maintain collections of works of art, historical treasures, or other similar assets? If "Yes,"N o

complete Schedule D, Part 111 19 . . . . . . . . . . . . . . . . . . . 8

9 Did the organization report an amount in Part X, line 21 for escrow or custodial account liability, serve as acustodian for amounts not listed in Part X, or provide credit counseling, debt management, credit repair, or debt

negotiation services? If "Yes,"complete Schedule D, Part IV . . . . . . . . . . . . 9 No

10 Did the organization, directly or through a related organization, hold assets in temporarily restricted endowments, 10 Yespermanent endowments, or quasi-endowments? If "Yes,"complete Schedule D, Part V .

11 If the organization's answer to any of the following questions is "Yes," then complete Schedule D, Parts VI, VII,VIII, IX, or X as applicable

a Did the organization report an amount for land, buildings, and equipment in Part X, line 10?Yes

If "Yes,"complete Schedule D, Part VI. . . . . . . . . . . . . . . . . . . . lla

b Did the organization report an amount for investments-other securities in Part X, line 12 that is 5% or more ofNo

its total assets reported in Part X, line 16? If "Yes, "complete Schedule D, Part VIIS . . . . . . llb

c Did the organization report an amount for investments-program related in Part X, line 13 that is 5% or more ofYes

its total assets reported in Part X, line 16? If "Yes, "complete Schedule D, Part VIII . . . . . . llc

d Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assetsNo

reported in Part X, line 16? If "Yes," complete Schedule D, Part IX' . . . . . . . . . . . . lld

e Did the organization report an amount for other liabilities in Part X, line 25? If "Yes," complete Schedule D, Part )( I lle I Yes

f Did the organization's separate or consolidated financial statements for the tax year include a footnote thatllf Y

addresses the organization's liability for uncertain tax positions under FIN 48 (ASC 740)? If "Yes,"completees

Schedule D, Part X. . . . . . . . . . . . . . . . . . . . . . . . . .

12a Did the organization obtain separate, independent audited financial statements for the tax year?

If "Yes,"complete Schedule D, Parts XI and XII . . . . . . . . . . . . . . . . . 12a N o

b Was the organization included in consolidated, independent audited financial statements for the tax year? If12b Yes

"Yes,"and if the organization answered "No" to line 12a, then completing Schedule D, Parts XI and XII is optional

13 Is the organization a school described in section 170(b)(1)(A)(ii)? If "Yes, "complete Schedule E . .13 No

14a Did the organization maintain an office, employees, or agents outside of the United States? . 14a No

b Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising,business, investment, and program service activities outside the United States, or aggregate foreign investmentsvalued at $100,000 or more? If "Yes, "complete Schedule F, Parts I and IV . . . . . . . . 14b No

15 Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to anyorganization or entity located outside the United States? If "Yes," complete Schedule F, Parts II and IV 15 No

16 Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance toindividuals located outside the United States? If "Yes," complete Schedule F, Parts III and IV . . 16 No

17 Did the organization report a total of more than $15,000 of expenses for professional fundraising services on Part 17 No

IX, column (A), lines 6 and 11 e? If "Yes," complete Schedule G, Part I (see instructions) . . . . IN

18 Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part

VIII, lines 1c and 8a? If "Yes, "complete Schedule G, Part II . . . . . . . . . . . cS 18 Yes

19 Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If 19 No

"Yes,"complete Schedule G, Part III . . . . . . . . . . . . . . . . . . .

20a Did the organization operate one or more hospital facilities? If "Yes,"completeSchedu leH . . 95 20a Yes

b If"Yes" to line 20a, did the organization attach a copy of its audited financial statements to this return? 1920b Yes

Form 990 (2012)

Form 990 (2012) Page 4

Checklist of Required Schedules (continued)

21 Did the organization report more than $5,000 of grants and other assistance to any government or organization in 21 Yes

the United States on Part IX, column (A), line 1? If "Yes," complete Schedule I, Parts I and II . . .

22 Did the organization report more than $5,000 of grants and other assistance to individuals in the United States 22on Part IX, column (A), line 2? If "Yes, "complete Schedule I, Parts I and III . . . . . . . .

Yes

23 Did the organization answer "Yes" to Part VII, Section A, line 3,4, or 5 about compensation of the organization'scurrent and former officers, directors, trustees, key employees, and highest compensated employees? If "Yes," 23 Yes

complete Schedule J . . . . . . . . . . . . . . . . . . . . . .

24a Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000as of the last day of the year, that was issued after December 31, 2002? If"Yes," answer lines 24b through 24dand complete Schedule K. If "No,"go to line 25 . . . . . . . . . . . . . . . . 24a N o

b Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception? . 24b

c Did the organization maintain an escrow account other than a refunding escrow at any time during the yearto defease any tax-exempt bonds? . 24c

d Did the organization act as an "on behalf of" issuer for bonds outstanding at any time during the year? . 24d

25a Section 501(c)( 3) and 501 ( c)(4) organizations . Did the organization engage in an excess benefit transaction with

a disqualified person during the year? If "Yes," complete Schedule L, Part I . . . . . . . . 15 25a No

b Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prioryear, and that the transaction has not been reported on any of the organization's prior Forms 990 or 990-EZ? If 25b No

"Yes,"complete Schedule L, Part I . . . . . . . . . . . . . . . . . . 95

26 Was a loan to or by a current or former officer, director, trustee, key employee, highest compensated employee, odisqualified person outstanding as of the end of the organization's tax year? If "Yes," complete Schedule L, 26 NoPart II . . . . . . . . . . . . . . . . . . . . . . . . . .

27 Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantialcontributor or employee thereof, a grant selection committee member, or to a 35% controlled entity or family 27 No

member of any of these persons? If "Yes,"complete Schedule L, Part III . . . . . . . . 95

28 Was the organization a party to a business transaction with one of the following parties (see Schedule L, Part IVinstructions for applicable filing thresholds, conditions, and exceptions)

a A current or former officer, director, trustee, or key employee? If "Yes,"complete Schedule L, Part

IV . . . . . . . . . . . . . . . . . . . . . . . . . . ID 28a No

b A family member of a current or former officer, director, trustee, or key employee? If "Yes,"

complete Schedule L, Part IV . . . . . . . . . . . . . . . . . . . . 28b Yes

c A n entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was

an officer, director, trustee, or direct or indirect owner? If "Yes,"complete Schedule L, Part IV . . 28c Yes

29 Did the organization receive more than $25,000 in non-cash contributions? If "Yes, "complete Schedule M 29 No

30 Did the organization receive contributions of art, historical treasures, or other similar assets, or qualifiedconservation contributions? If "Yes, "complete Schedule M . . . . . . . . . . . . 30 No

31 Did the organization liquidate, terminate, or dissolve and cease operations? If "Yes," complete Schedule N,Part I . . . . . . . . . . . . . . . . . . . . . . . . . . 31 N o

32 Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If "Yes, " completeSchedule N, Part II . . . . . . . . . . . . . . . . . . . . . 32 N o

33 Did the organization own 100% of an entity disregarded as separate from the organization under Regulations

sections 301 770 1-2 and 301 770 1-3? If "Yes," complete Schedule R, Part I . . . . . . . 33 Yes

34 Was the organization related to any tax-exempt or taxable entity? If "Yes,"complete Schedule R, Part II, III, orIV,

and Part V, line 1 . . . . . . . . . . . . . . . . . . . . . . . t 34 Yes

35a Did the organization have a controlled entity within the meaning of section 512(b)(13)?35a Yes

b If'Yes'to line 35a, did the organization receive any payment from or engage in any transaction with a controlled

entity within the meaning of section 512 (b)(13 )? If "Yes,"complete Schedule R, Part V, line 2 . . . 35b Yes

36 Section 501(c)( 3) organizations . Did the organization make any transfers to an exempt non-charitable related

organization? If "Yes,"complete Schedule R, Part V, line 2 . . . . . . . . . . . . . 36 No

37 Did the organization conduct more than 5% of its activities through an entity that is not a related organization

and that is treated as a partnership for federal income tax purposes? If "Yes," complete Schedule R, Part VI 37 No

38 Did the organization complete Schedule 0 and provide explanations in Schedule 0 for Part VI, lines 1 lb and 19?Note . All Form 990 filers are required to complete Schedule 0 . . . . . . . . . . 38 Yes

Form 990 (2012)

Form 990 (2012) Page 5

MEW-Statements Regarding Other IRS Filings and Tax Compliance

Check if Schedule 0 contains a res p onse to an y q uestion in this Part V (-

Yes No

la Enter the number reported in Box 3 of Form 1096 Enter -0- if not applicable . la 184

b Enter the number of Forms W-2G included in line la Enter-0- if not applicable lb 0

c Did the organization comply with backup withholding rules for reportable payments to vendors and reportablegaming (gambling) winnings to prize winners? . . . . . . . . . . . . . . . . . 1c Yes

2a Enter the number of employees reported on Form W-3, Transmittal of Wage andTax Statements, filed for the calendar year ending with or within the year coveredby this return . . . . . . . . . . . . . . . . . 2a 3,546

b If at least one is reported on line 2a, did the organization file all required federal employment tax returns?2b Yes

Note . If the sum of lines la and 2a is greater than 250, you may be required to e-file (see instructions)

3a Did the organization have unrelated business gross income of $ 1,000 or more during the year? . . 3a Yes

b If "Yes," has it filed a Form 990-T for this year? If "No,"provide an explanation in Schedule 0 . . . . 3b Yes

4a At any time during the calendar year, did the organization have an interest in, or a signature or other authorityover, a financial account in a foreign country (such as a bank account, securities account, or other financialaccount)? . . . . . . . . . . . . . . . . . . . . . . . . . . 4a

b If "Yes," enter the name of the foreign country 0-See instructions for filing requirements for Form TD F 90-22 1, Report of Foreign Bank and Financial Accounts

5a Was the organization a party to a prohibited tax shelter transaction at any time during the tax year? . .

b Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?

c If"Yes,"to line 5a or 5b, did the organization file Form 8886-T?

6a Does the organization have annual gross receipts that are normally greater than $100,000, and did theorganization solicit any contributions that were not tax deductible as charitable contributions? . .

b If "Yes," did the organization include with every solicitation an express statement that such contributions or giftswere not tax deductible? .

7 Organizations that may receive deductible contributions under section 170(c).

a Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods andservices provided to the payor? .

b If "Yes," did the organization notify the donor of the value of the goods or services provided? . .

c Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required tofile Form 82827 .

d If "Yes," indicate the number of Forms 8282 filed during the year 7d

e Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefitcontract? .

f Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?

g If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 asrequired? .

h If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file aForm 1098-C? .

8 Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Didthe supporting organization, or a donor advised fund maintained by a sponsoring organization, have excessbusiness holdings at any time during the year? .

9 Sponsoring organizations maintaining donor advised funds.

a Did the organization make any taxable distributions under section 4966? . .

b Did the organization make a distribution to a donor, donor advisor, or related person? . .

10 Section 501(c)( 7) organizations. Enter

a Initiation fees and capital contributions included on Part VIII, line 12 . 10a

b Gross receipts, included on Form 990, Part VIII, line 12, for public use of club 10bfacilities

11 Section 501(c)( 12) organizations. Enter

a Gross income from members or shareholders . . . . . . . . 11a

b Gross income from other sources (Do not net amounts due or paid to other sourcesagainst amounts due or received from them ) . . . . . . . . . 11b

12a Section 4947( a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?

b If "Yes," enter the amount of tax-exempt interest received or accrued during theyear . . . . . . . . . . . . . . . . . . . 12b

13 Section 501(c)(29) qualified nonprofit health insurance issuers.

a Is the organization licensed to issue qualified health plans in more than one state?Note . See the instructions for additional information the organization must report on Schedule 0

b Enter the amount of reserves the organization is required to maintain by the statesin which the organization is licensed to issue qualified health plans 13b

c Enter the amount of reserves on hand 13c

5a

5b

5c

6a

6b

7a

7b

7c

7e

7f

7g

7h

8

9a

9b

12a

13a

No

No

No

No

No

No

No

No

14a Did the organization receive any payments for indoor tanning services during the tax year? . . . 14a No

b If "Yes," has it filed a Form 720 to report these payments? If "No,"provide an explanation in Schedule 0 . 14b

Form 990 (2012)

Form 990 (2012) Page 6

Governance , Management, and Disclosure For each "Yes"response to lines 2 through 7b below, and for a"No" response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule 0.See instructions.Check if Schedule 0 contains a response to any question in this Part VI .F

Section A . Governing Body and Management

Yes No

la Enter the number of voting members of the governing body at the end of the taxla 23

year

If there are material differences in voting rights among members of the governingbody, or if the governing body delegated broad authority to an executive committeeor similar committee, explain in Schedule 0

b Enter the number of voting members included in line la, above, who areindependent . . . . . . . . . . . . . . . . . . lb 16

2 Did any officer, director, trustee, or key employee have a family relationship or a business relationship with anyother officer, director, trustee, or key employee? 2 Yes

3 Did the organization delegate control over management duties customarily performed by or under the direct3 No

supervision of officers, directors or trustees, or key employees to a management company or other person?

4 Did the organization make any significant changes to its governing documents since the prior Form 990 wasfiled? . . . . . . . . . . . . . . . . . . . . . . . . . . 4 No

5 Did the organization become aware during the year of a significant diversion of the organization's assets? 5 No

6 Did the organization have members or stockholders? 6 Yes

7a Did the organization have members, stockholders, or other persons who had the power to elect or appoint one ormore members of the governing body? . . . . . . . . . . . . . . . . . . . 7a No

b Are any governance decisions of the organization reserved to (or subject to approval by) members, stockholders, 7b Yesor persons other than the governing body?

8 Did the organization contemporaneously document the meetings held or written actions undertaken during theyear by the following

a The governing body? . . . . . . . . . . . . . . . . . . . . . . . . 8a Yes

b Each committee with authority to act on behalf of the governing body? 8b Yes

9 Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at theorganization's mailing address? If "Yes,"provide the names and addresses in Schedule 0 . . . . . . 9 No

Section B. Policies ( This Section B requests information about p olicies not required b y the Internal Revenue Code.)Yes No

10a Did the organization have local chapters, branches, or affiliates? 10a No

b If"Yes," did the organization have written policies and procedures governing the activities of such chapters,affiliates, and branches to ensure their operations are consistent with the organization's exempt purposes? 10b

11a Has the organization provided a complete copy of this Form 990 to all members of its governing body before filingthe form? . . . . . . . . . . . . . . . . . . . . . . . . . . . 11a Yes

b Describe in Schedule 0 the process, if any, used by the organization to review this Form 990

12a Did the organization have a written conflict of interest policy? If "No,"go to line 13 . 12a Yes

b Were officers, directors, or trustees, and key employees required to disclose annually interests that could giverise to conflicts? . . . . . . . . . . . . . . . . . . . . . . . . . 12b Yes

c Did the organization regularly and consistently monitor and enforce compliance with the policy? If "Yes,"describein Schedule 0 how this was done . 12c Yes

13 Did the organization have a written whistleblower policy? 13 Yes

14 Did the organization have a written document retention and destruction policy? . 14 Yes

15 Did the process for determining compensation of the following persons include a review and approval byindependent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?

a The organization's CEO, Executive Director, or top management official 15a Yes

b Other officers or key employees of the organization 15b Yes

If "Yes" to line 15a or 15b, describe the process in Schedule 0 (see instructions)

16a Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with ataxable entity during the year? 16a Yes

b If "Yes," did the organization follow a written policy or procedure requiring the organization to evaluate itsparticipation in joint venture arrangements under applicable federal tax law, and take steps to safeguard theorganization's exempt status with respect to such arrangements? . . . . . . . . . . 16b Yes

Section C. Disclosure

17 List the States with which a copy of this Form 990 is required to be filed- IA

18 Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990 -T (501(c)(3 )s only) available for public inspection Indicate how you made these available Check all that apply

F Own website fl Another' s website 17 Upon request fl Other ( explain in Schedule O )

19 Describe in Schedule 0 whether ( and if so, how), the organization made its governing documents , conflict ofinterest policy , and financial statements available to the public during the tax year

20 State the name, physical address, and telephone number of the person who possesses the books and records of the organization-MILTON E AUNAN II VP FINANCECFO 1026 A AVENUE NE CEDAR RAPIDS, IA (319) 369-7796

Form 990 (2012)

Form 990 (2012) Page 7

Compensation of Officers, Directors ,Trustees, Key Employees, Highest CompensatedEmployees , and Independent ContractorsCheck if Schedule 0 contains a response to any question in this Part VII .(-

Section A. Officers, Directors, Trustees, Kev Employees, and Highest Compensated Employees

la Complete this table for all persons required to be listed Report compensation for the calendar year ending with or within the organization'stax year* List all of the organization's current officers, directors, trustees (whether individuals or organizations), regardless of amount

of compensation Enter-0- in columns (D), (E), and (F) if no compensation was paid

* List all of the organization's current key employees, if any See instructions for definition of "key employee "

* List the organization's five current highest compensated employees (other than an officer, director, trustee or key employee)who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from theorganization and any related organizations

* List all of the organization 's former officers, key employees, or highest compensated employees who received more than $100,000of reportable compensation from the organization and any related organizations

* List all of the organization's former directors or trustees that received, in the capacity as a former director or trustee of theorganization, more than $10,000 of reportable compensation from the organization and any related organizations

List persons in the following order individual trustees or directors, institutional trustees, officers, key employees, highestcompensated employees, and former such persons

fl Check this box if neither the organization nor any related organization compensated any current officer, director, or trustee

(A)Name and Title

(B)Averagehours perweek (listany hours

(C)Position (do not check

more than one box, unlessperson is both an officerand a director/trustee)

(D)Reportable

compensationfrom the

organization (W-

(E)Reportable

compensationfrom relatedorganizations

(F)Estimated

amount of othercompensation

from thefor relatedorganizations

belowdotted line)

.ca:

J.•

4•

m_

D

0 =adoart

7

^

T 2/1099-MISC) (W- 2/1099-MISC)

organization andrelated

organizations

See Additional Data Table

Form 990 (2012)

Form 990 (2012) Page 8

Section A. Officers, Directors , Trustees , Key Employees, and Highest Compensated Employees (continued)

(A)Name and Title

(B)Averagehours perweek (listany hours

(C)Position (do not check

more than one box, unlessperson is both an officerand a director/trustee)

(D)Reportable

compensationfrom the

organization (W-

( E)Reportable

compensationfrom related

organizations (W-

(F)Estimated

amount of othercompensation

from thefor relatedorganizations

belowdotted line)

0--

C:SL

a

747.

;3

m_

;rl

!

M=

boo

fD

ur

T

a

2/1099-MISC) 2/1099-MISC) organization andrelated

organizations

lb Sub-Total . . . . . . . . . . . . . . . .

c Total from continuation sheets to Part VII, Section A . . . .

d Total ( add lines lb and 1c) . . . . . . . . . . . . 0- 9,430,023 58,353 946,158

Total number of individuals (including but not limited to those listed above) who received more than$100,000 of reportable compensation from the organization-144

Yes I No

Did the organization list any former officer, director or trustee, key employee, or highest compensated employee

on line la? If "Yes," complete Schedule Jfor such individual . . . . . . . . . . . . . 3 Yes

4 For any individual listed on line 1a, is the sum of reportable compensation and other compensation from theorganization and related organizations greater than $150,0007 If "Yes," complete Schedule -7 for such

individual . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Yes

Did any person listed on line la receive or accrue compensation from any unrelated organization or individual for

services rendered to the organization? If "Yes,"complete Schedule J for such person . . . . . . . 5 No

Section B. Independent Contractors

1 Complete this table for your five highest compensated independent contractors that received more than $100,000 ofcompensation from the organization Report compensation for the calendar year ending with or within the organization's tax year

(A)Name and business address

(B)Description of services

(C)Compensation

GRAHAM CONSTRUCTION CO INC 421 GRAND AVE DES MOINES IA 50309 CONSTRUCTION SERVICES 5,676,070

MR ASSOCIATES PO BOX 2686 CEDAR RAPIDS IA 52406 MR SERVICES 4,512,203

ARAMARK SERVICE MASTER FACILITY 24863 NETWORK PLCHICAGO IL60673 MNGT SERVICES 1,524,051

MISSISSIPPI VALLEY REGIONAL 5500 LAKEVIEW PARKWAY DAVENPORT IA 52707 BLOOD SERVICES 1,264,172

DW ZINSER COMPANY INC PO BOX 398 WALFORD IA 52351 CONSTRUCTION SERVICES 1,003,167

2 Total number of independent contractors ( including but not limited to those listed above ) who received more than$100,000 of compensation from the organization 0-56

Form 990 (2012)

Form 990 (2012) Page 9

Statement of RevenueCheck if Schedule 0 contains a response to any question in this Part VIII F

(A) (B) (C) (D)Total revenue Related or Unrelated Revenue

exempt business excluded fromfunction revenue tax underrevenue sections

512, 513, or514

la Federated campaigns . laZ

b Membership dues . . . . lb6- 0

0 E c Fundraising events . . . . 1c

d Related organizations . ld 2,130,192

tJ'E e Government grants (contributions) le 1,067,976

V f All other contributions, gifts, grants, and if 133,888^ similar amounts not included above

g Noncash contributions included in linesla-If $

h Total . Add lines la-1f . 3,332,056

Business Code

2a NET PATIENT REVENUE 900099 174,535,622 174,535,622

a2 b PHARMACY REVENUE 446110 87,831,154 70,457,814 17,373,340

a' c LABORATORY SERVICES 621510 70,532,140 70,532,140

d SUBS & JOINT VENTURES 900099 5,595,758 5,538,057 57,701

e MISCELLANEOUS REVENUE 900099 4,510,172 4,510,172

f All other program service revenue 6,209,525 5,654,904 554,621

g Total . Add lines 2a-2f . . . . . . . 0- 349,214,371

3 Investment income (including dividends, interest,and other similar amounts) . . . . . . 3,462,436 3,462,436

4 Income from investment of tax-exempt bond proceeds • . 0-

5 Royalties . . . . . . . . . . . 0-

(i) Real (ii) Personal

6a Gross rents

b Less rentalexpenses

c Rental incomeor (loss)

d Net rental inco me or (loss) . . lim-

(i) Securities (ii) Other

7a Gross amountfrom sales of 254,703,441 253,219assets otherthan inventory

b Less cost orother basis and 238,231,426 198,414sales expenses

c Gain or (loss) 16,472,015 54,805

d Net gain or (loss) . lim- 16,526,820 16,526,820

8a Gross income from fundraisingW events (not including

$

of contributions reported on line 1c)See Part IV, line 18

L a 71,992

s b Less direct expenses . b 61,309

c Net income or (loss) from fundraising events . . 0- 10,683 10,683

9a Gross income from gaming activitiesSee Part IV, line 19 . .

a

b Less direct expenses . b

c Net income or (loss) from gaming acti vities . . .0-

10a Gross sales of inventory, lessreturns and allowances .

a 618,248

b Less cost of goods sold . b 576,881

c Net income or (loss) from sales of inventory . lim- 41,367 41,367

Miscellaneous Revenue Business Code

11a CAFETERIA/FOOD SVCS 722210 2,236,253 2,236,253

b MISCELLANEOUS REVENUE 900099 600,967 578,605 22,362

c PUBLIC HEALTH PROGRAMS 923120 169,137 169,137

d All other revenue 142,290 142,290

e Total.Add lines 11a-11d . 0-3,148,647

12 Total revenue . See Instructions 0- 1375,736,380 332,118,741 , 634,684 39,650,899

Form 990 (2012)

Form 990 (2012) Page 10

Statement of Functional Expenses

Section 501(c)(3) and 501(c)(4) organizations must complete all columns All other organizations must complete column (A)

Check if Schedule 0 contains a response to any auestion in this Part IX . . . . . . . . . . . . . .

Do not include amounts reported on lines 6b,

7b, 8b, 9b, and 10b of Part VIII .

( A)

Total expenses

(B)Program service

expenses

(C)Management andgeneral expenses

(D)Fundraisingexpenses

1 Grants and other assistance to governments and organizations

in the United States See Part IV, line 213,597,005 3,597,005

2 Grants and other assistance to individuals in theUnited States See Part IV, line 22

58,327 58,327

3 Grants and other assistance to governments,organizations , and individuals outside the UnitedStates See Part IV, lines 15 and 16

4 Benefits paid to or for members

5 Compensation of current officers, directors , trustees, and

key employees 2,981,992 2,981,992

6 Compensation not included above, to disqualified persons

(as defined under section 4958(f)(1)) and persons

described in section 4958(c)(3)(B) 176,838 176,838

7 Other salaries and wages 146,022,972 127,325,693 18,697,279

8 Pension plan accruals and contributions (include section 401(k)and 403(b) employer contributions ) 9,567,258 8,342,234 1,225,024

9 Other employee benefits 16,063,795 14,061,111 2,002,684

10 Payroll taxes 10,077,729 8,787,342 1,290,387

11 Fees for services ( non-employees)

a Management 6,877,904 4,811,585 2,066,319

b Legal 324,689 87,089 237,600

c Accounting 2,495 2,495

d Lobbying 5,000 5,000

e Professional fundraising services See Part IV, line 17

f Investment management fees 476,381 6,858 469,523

g Other ( If line 11g amount exceeds 10 % of line 25,

column ( A) amount, list line 11g expenses on

Schedule 0 ) 29,311,715 23,710,928 5,600,787

12 Advertising and promotion 2,102,753 593,185 1,509,568

13 Office expenses 9,358,783 8,057,973 1,300,810

14 Information technology 24,845,946 24,499,786 346,160

15 Royalties

16 Occupancy 10,440,875 8,536,894 1,903,981

17 Travel . . . . . . . . . . . 1,188, 834 990,143 198,691

18 Payments of travel or entertainment expenses for any federal,state, or local public officials

19 Conferences , conventions , and meetings 363,813 231,285 132,528

20 Interes t 3,979,534 3,979,534

21 Payments to affiliates

22 Depreciation , depletion, and amortization 16,017,651 14,950,594 1,067,057

23 Insuran ce 1,523,644 1,504,680 18,964

24 Other expenses Itemize expenses not covered above (Listmiscellaneous expenses in line 24e If line 24e amount exceeds 10%of line 25, column ( A) amount, list line 24e expenses on Schedule 0

a MEDICAL SUPPLIES 67,727,104 67,530,972 196,132

b BAD DEBT EXPENSE 114,657 114,657

c INCOME TAXES 1,700 1,700

d MISCELLANEOUS EXPENSE -4,302,432 -9,021,764 4,719,332

e All other expenses

25 Total functional expenses. Add lines 1 through 24e 358,906,962 308,779,072 50,127,890 0

26 Joint costs. Complete this line only if the organizationreported in column ( B) joint costs from a combinededucational campaign and fundraising solicitation Checkhere - fl if following SOP 98-2 (ASC 958-720)

Form 990 (2012)

Form 990 (2012) Page 11

Balance SheetCheck if Schedule 0 contains a response to any question in this Part X F

(A) (B)Beginning of year End of year

1 Cash-non-interest-bearing 10,998,484 1 8,472,313

2 Savings and temporary cash investments . . . . . . . . 37,226,942 2 7,159,094

3 Pledges and grants receivable, net 79,079 3 130,984

4 Accounts receivable, net . . . . . . . . . . . . 43,329,833 4 47,201,637

5 Loans and other receivables from current and former officers, directors, trustees, keyemployees, and highest compensated employees Complete Part II ofSchedule L . .

5

6 Loans and other receivables from other disqualified persons (as defined under section4958(f)(1)), persons described in section 4958(c)(3)(B), and contributing employersand sponsoring organizations of section 501(c)(9) voluntary employees' beneficiaryorganizations (see instructions) Complete Part II of Schedule L

6

7 Notes and loans receivable, net 19,471,388 7 20,113,160

8 Inventories for sale or use 7,477,822 8 7,499,646

9 Prepaid expenses and deferred charges . 1,700,796 9 1,419,032

10a Land, buildings, and equipment cost or other basisComplete Part VI of Schedule D 10a 313,189,065

b Less accumulated depreciation . 10b 171,329,494 137,992,198 10c 141,859,571

11 Investments-publicly traded securities . 96,734,646 11 125,554,265

12 Investments-other securities See Part IV, line 11 12

13 Investments-program-related See Part IV, line 11 41,313,143 13 45,493,554

14 Intangible assets . . . . . . . . . . . . . . 14

15 Other assets See Part IV, line 11 15

16 Total assets . Add lines 1 through 15 (must equal line 34) . 396,324,331 16 404,903,256

17 Accounts payable and accrued expenses 32,645,152 17 30,215,123

18 Grants payable . . . . . . . . . . . . . . . . 705,668 18 936,918

19 Deferred revenue . . . . . . . . . . . . . . . 56,083 19 6,179

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 4,330,952 24 3,784,294

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 ScheduleD . 131,430,278 25 127,415,744

26 Total liabilities . Add lines 17 through 25 . 169,168,133 26 162,358,258

Organizations that follow SFAS 117 (ASC 958), check here 1- F and complete

lines 27 through 29, and lines 33 and 34.

C5 27 Unrestricted net assets 197,296,359 27 209,228,852

Mca

28 Temporarily restricted net assets 11,842,965 28I

15,204,122

r29 Permanently restricted net assets . . . . . . . . . . 18,016,874 29 18,112,024

_Organizations that do not follow SFAS 117 (ASC 958), check here 1 F- andW_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

4T 32 Retained earnings, endowment, accumulated income, or other funds 32

33 Total net assets or fund balances 227,156,198 33 242,544,998z

34 Total liabilities and net assets/fund balances . . . . . . . 396,324,331 34 404,903,256

Form 990 (2012)

Form 990 (2012) Page 12

« Reconcilliation of Net Assets('hark if crhariiila () rnntainc a rocnnnca to anv niiactinn in Chic Part YT 7

1 Total revenue (must equal Part VIII, column (A), line 12) . .

2 Total expenses (must equal Part IX, column (A), line 25) . .

3 Revenue less expenses Subtract line 2 from line 1

4 Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A))

5 Net unrealized gains (losses) on investments

6 Donated services and use of facilities

7 Investment expenses . .

8 Prior period adjustments . .

9 Other changes in net assets or fund balances (explain in Schedule 0)

10 Net assets or fund balances at end of year Combine lines 3 through 9 (must equal Part X, line 33,column (B))

1 375,736,380

2 358,906,962

3 16,829,418

4 227,156,198

5 -5,925,228

6

7

8

9 4,484,610

10 242,544,998

Financial Statements and Reporting

Check if Schedule 0 contains a response to any question in this Part XII (-

Yes No

1 Accounting method used to prepare the Form 990 fl Cash 17 Accrual (OtherIf the organization changed its method of accounting from a prior year or checked " Other," explain inSchedule 0

2a Were the organization's financial statements compiled or reviewed by an independent accountant? 2a No

If'Yes,'check a box below to indicate whether the financial statements for the year were compiled or reviewed ona separate basis, consolidated basis, or both

fl Separate basis fl Consolidated basis fl Both consolidated and separate basis

b Were the organization 's financial statements audited by an independent accountant? 2b Yes

If'Yes,'check a box below to indicate whether the financial statements for the year were audited on a separatebasis, consolidated basis, or both

fl Separate basis F Consolidated basis fl Both consolidated and separate basis

c If"Yes,"to line 2a or 2b, does the organization have a committee that assumes responsibility for oversight of theaudit, review , or compilation of its financial statements and selection of an independent accountant? 2c Yes

If the organization changed either its oversight process or selection process during the tax year, explain inSchedule 0

3a As a result of a federal award, was the organization required to undergo an audit or audits as set forth in theSingle Audit Act and 0 MB Circular A-1 33? 3a Yes

b If"Yes," did the organization undergo the required audit or audits? If the organization did not undergo the required 3b Yesaudit or audits , explain why in Schedule 0 and describe any steps taken to undergo such audits

Form 990 (2012)

Additional Data

Software ID:

Software Version:

EIN: 42 -0504780

Name : ST LUKE'S METHODIST HOSPITAL

Form 990, Part VII - Compensation of Officers, Directors,Trustees, Key Employees, HighestCompensated Employees, and Independent Contractors

(A) (B) (C) (D) ( E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated amount

hours more than one box, compensation compensation of otherper unless person is both from the from related compensationweek an officer and a organization (W- organizations (W- from the(list director/trustee) 2/1099-MISC) 2/1099-MISC) organization andany

-nrelated

hours f moo organizationsfor s 74 m

related C: 7+_

organizations ° o '°belowdotted =71 (D mline) a'

fl,

KARL CASSELL1 00

BOARD MEMBERX 0 0 0

1 00

TERRI CHRISTOFFERSEN1 00

BOARD MEMBERX 0 14,500 0

1 00

LEE CLANCEY1 00

BOARD MEMBERX 0 0 0

1 00

RANDY EASTON1 00

BOARD MEMBERX 0 898 0

1 00

KATHY ENO1 00


1 00

SALLY GRAY1 00

BOARD MEMBERX 0 0 0

1 00

VICTOR HAM RE1 00

BOARD MEMBERX 0 0 0

1 00

PERCY HARRIS MD1 00

BOARD MEMBERX 0 0 0

1 00

JOHN HERRING MD1 00

BOARD MEMBERX 0 0 0

1 00

JAMES HOFFMAN1 00


1 00

KEITH KREWER MD1 00

BOARD MEMBERX 0 0 0

1 00

CHRIS LINDELL1 00

BOARD MEMBERX 0 0 0

1 00

KATHLEEN MINETTE1 00

BOARD MEMBERX 0 0 0

1 00

ROBIN MIXDORF1 00

BOARD MEMBERX 0 0 0

1 00

RALPH PALMER1 00

BOARD MEMBERX 0 0 0

1 00

WILLIAM PROWELL1 00


1 00

AMY REASNER1 00

BOARD MEMBERX 0 0 0

1 00

MARCIA ROGERS1 00

BOARD MEMBERX 0 177 0

1 00

BRIAN SCOTT1 00

BOARD CHAIRX X 0 554 0

1 00

DREW SKOGMAN1 00

BOARD SECRETARYX X 0 0 0

1 00

MICK STARCEVICH1 00

BOARD VICE CHAIRX X 0 0 0

1 00

THEODORE TOWNSEND JR40 00

BOARD MEMBER & PRESIDENT/CEOX X 636,489 0 250,326

1 00

STEVEN WAHLE MD1 00

BOARD MEMBERX 0 0 0

1 00

MILTON AUNAN II40 00

VP FINANCE/CFOX 380,151 0 75,581

1 00

JOHN SHEEHAN40 00

EXECUTIVE VP/COOX 489,082 0 148,153

1 00

Form 990, Part VII - Compensation of Officers, Directors,Trustees, Key Employees, HighestCompensated Employees, and Independent Contractors

(A) (B) (C) (D) (E) (F)Name and Title Average Position (do not check Reportable Reportable Estimated amount

hours more than one box, compensation compensation of otherper unless person is both from the from related compensationweek an officer and a organization (W- organizations (W- from the(list director/trustee ) 2/1099-MISC) 2/1099-MISC) organization andany 0 ,o = T relatedhours

2-D ^ Z organizations

forQ- ^Z

m o ?related

_r.

organizations 2

^ te

abelow - KD --dotted mline)

MOHIT CHAWLA MD40 00

SENIOR VICE PRESIDENT (CLC)X 758,210 0 30,286

0 00

MICHAEL EASLEY40 00

ADM DIR, FAC, PLNG & OPERX 161,732 0 37,600

0 00

SUBHI HALAWA MD40 00

VICE PRESIDENT (CLC)X 790,979 0 35,303

0 00

RICHARD KETTELKAMP MD40 00

VICE PRESIDENT (CLC)X 784,703 0 30,180

0 00

TODD LANGAGER MD40 00

PRESIDENT (CLC)X 707,059 0 30,971

0 00

MICHELLE NIERMANN40 00

VP OPERATIONSX 291,293 0 46,450

1 00

MARY ANN OSBORN40 00

VP/CCOX 365,953 0 99,181

1 00

MARY HLAVIN40 00

PHYSICIAN-NEUROSURGERYX 886,252 0 33,576

0 00

MOHAMMED KHALIL MD40 00

X 716,840 0 19,821PHYSICIAN

0 00

MATTHEW MCMAHON MD40 00

PHYSICIANX 699,911 0 31,785

0 00

ROY VENZON MD40 00

PHYSICIANX 731,666 0 34,118

0 00

HISHAM WAGDY MD40 00

PHYSICIANX 881,606 0 14,086

0 00

KATHERINE OBERBROECKLING40 00

X 148,097 0 28,741FORMER INTERIM CFO

1 00


SCHEDULE A Public Charity Status and Public SupportOMB No 1545-0047

(Form 990 or 990EZ)2012Complete if the organization is a section 501(c)(3) organization or a section

Department of the Treasury 4947( a)(1) nonexempt charitable trust.

Internal Revenue Service► Attach to Form 990 or Form 990-EZ. ► See separate instructions.

Name of the organization Employer identification numberST LUKE'S METHODIST HOSPITAL

42-0504780

Reason for Public Charity Status (All organizations must complete this part.) See instructions.The organi zation is not a private foundation because it is (For lines 1 through 11, check only one box )

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

2 1 A school described in section 170(b)(1)(A)(ii). (Attach Schedule E )

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

4 1 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 state5 fl 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 )

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

7 1 An organization that normally receives a substantial part of its support from a governmental unit or from the general publicdescribed in section 170 ( b)(1)(A)(vi ). (Complete Part II )

8 1 A community trust described in section 170(b)(1)(A)(vi ) (Complete Part II )

9 1 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 )

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

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

a fl Type I b 1 Type II c fl Type III - Functionally integrated d (- Type III - Non-functionally integrated

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

f If the organization received a written determination from the IRS that it is a Type I, Type II, orType III supporting organization,check this box (-

g Since August 17, 2006, has the organization accepted any gift or contribution from any of thefollowing persons?(i) A person who directly or indirectly controls , either alone or together with persons described in (ii) Yes No

and (iii) below, the governing body of the supported organization? 11g(i)

(ii) A family member of a person described in (i) above? 11g(ii)

(iii) A 35% controlled entity of a person described in (i) or (ii) above? 11g(iii)

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

(i) Name of (ii) EIN (iii) Type of (iv) Is the (v) Did you notify (vi) Is the (vii) Amount ofsupported organization organization in the organization organization in monetary

organization (described on col (i) listed in in col (i) of your col (i) organized supportlines 1- 9 above your governing support? in the U S ?or IRC section document?

(seeinstructions))

Yes No Yes No Yes No

Total

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990EZ . Cat No 11285F ScheduleA(Form 990 or 990-EZ)2012

Schedule A (Form 990 or 990-EZ) 2012 Page 2

MU^ 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 underPart III. If the organization fails to qualify under the tests listed below, please complete Part III.)

Section A . Public SupportCalendar year ( or fiscal year beginning (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (f) Total

in) 111111 Gifts, grants, contributions, and

membership fees received (Do notinclude any "unusualgrants ")

2 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf

3 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge

4 Total .Add lines 1 through 3

5 The portion of total contributionsby each person (other than agovernmental unit or publiclysupported organization) included online 1 that exceeds 2% of theamount shown on line 11, column(f)

6 Public support . Subtract line 5 fromline 4

Section B. Total SupportCalendar year ( or fiscal year beginning (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (f) Total

in) ►7 Amounts from line 4

8 Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources

9 Net income from unrelatedbusiness activities, whether or notthe business is regularly carriedon

10 Other income Do not include gainor loss from the sale of capitalassets (Explain in Part IV )

11 Total support (Add lines 7 through10)

12 Gross receipts from related activities, etc (see instructions) 12

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

Section C. Com p utation of Public Support Percenta g e14 Public support percentage for 2012 (line 6, column (f) divided by line 11, column (f)) 14

15 Public support percentage for 2011 Schedule A, Part II, line 14 15

16a 331 / 3%support test-2012 . If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this boxand stop here . The organization qualifies as a publicly supported organization

b 331 / 3%support test-2011 . If the organization did not check a box on line 13 or 16a, and line 15 is 33 1/3% or more, check thisbox and stop here . The organization qualifies as a publicly supported organization

17a 10%-facts-and -circumstances test -2012 . If the organization did not check a box on line 13, 16a, or 16b, and line 14is 10% or more, and if the organization meets the "facts-and-circumstances" test, check this box and stop here . Explainin Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publicly supportedorganization

b 10%-facts-and-circumstances test -2011 . If the organization did not check a box on line 13, 16a, 16b, or 17a, and line15 is 10% or more, and if the organization meets the "facts- and-circumstances" test, check this box and stop here.Explain in Part IV how the organization meets the "facts-and-circumstances" test The organization qualifies as a publiclysupported organization

18 Private foundation . If the organization did not check a box on line 13, 16a, 16b, 17a, or 17b, check this box and seeinstructions

Schedule A (Form 990 or 990-EZ) 2012


IMMITM 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 underPart II. If the organization fails to qualify under the tests listed below, please complete Part II.)

Section A. Public SupportCalendar year ( or fiscal year beginning (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (f) Total

in) 111111 Gifts, grants, contributions, and

membership fees received (Do notinclude any "unusual grants ")

2 Gross receipts from admissions,merchandise sold or servicesperformed, or facilities furnished inany activity that is related to theorganization's tax-exemptpurpose

3 Gross receipts from activities thatare not an unrelated trade orbusiness under section 513

4 Tax revenues levied for theorganization's benefit and eitherpaid to or expended on itsbehalf

5 The value of services or facilitiesfurnished by a governmental unit tothe organization without charge

6 Total . Add lines 1 through 5

7a Amounts included on lines 1, 2,and 3 received from disqualifiedpersons

b Amounts included on lines 2 and 3received from other thandisqualified persons that exceedthe greater of$5,000 or 1% of theamount on line 13 for the year

c Add lines 7a and 7b

8 Public support (Subtract line 7cfrom line 6 )

Section B. Total SuuuortCalendar year ( or fiscal year beginning (a) 2008 (b) 2009 (c) 2010 (d) 2011 (e) 2012 (f) Total

in) ►9 Amounts from line 6

10a Gross income from interest,dividends, payments received onsecurities loans, rents, royaltiesand income from similarsources

b Unrelated business taxableincome (less section 511 taxes)from businesses acquired afterJune 30, 1975

c Add lines 10a and 10b

11 Net income from unrelatedbusiness activities not includedin line 10b, whether or not thebusiness is regularly carried on

12 Other income Do not includegain or loss from the sale ofcapital assets (Explain in PartIV )

13 Total support . (Add lines 9, 1Oc,11, and 12 )

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

Section C. Computation of Public Support Percentage

15 Public support percentage for 2012 (line 8, column (f) divided by line 13, column (f)) 15

16 Public support percentage from 2011 Schedule A, Part III, line 15 16

Section D . Com p utation of Investment Income Percenta g e

17 Investment income percentage for 2012 (line 10c, column (f) divided by line 13, column (f)) 17

18 Investment income percentage from 2011 Schedule A, Part III, line 17 18

19a 331 / 3%support tests-2012 . If the organization did not check the box on line 14, and line 15 is more than 33 1/3%, and line 17 is notmore than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization lk'F-

b 331 / 3%support tests-2011 . 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 18is not more than 33 1/3%, check this box and stop here . The organization qualifies as a publicly supported organization lk'F-

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



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

Facts And Circumstances Test

Explanation


l efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93493318001183

SCHEDULE C Political Campaign and Lobbying Activities OMB No 1545-0047

(Form 990 or 990-EZ)For Organizations Exempt From Income Tax Under section 501(c) and section 527 201 2

Department of the Treasury 1- Complete if the organization is described below. 0- Attach to Form 990 or Form 990-EZ.

Internal Revenue Service0- See separate instructions . Open

I InspectionIf the organization answered "Yes" to Form 990, Part IV, Line 3, or Form 990-EZ , Part V, line 46 (Political Campaign Activities), then• Section 501(c)(3) organizations Complete Parts I-A and B Do not complete Part I-C• Section 501(c) (other than section 501(c)(3)) organizations Complete Parts I-A and C below Do not complete Part I-B• Section 527 organizations Complete Part I-A only

If the organization answered "Yes" to Form 990, Part IV , Line 4, or Form 990-EZ, Part VI, line 47 ( Lobbying Activities), then• Section 501(c)(3) organizations that have filed Form 5768 (election under section 501(h)) Complete Part II-A Do not complete Part II-B• Section 501(c)(3) organizations that have NOT filed Form 5768 (election under section 501(h)) Complete Part II-B Do not complete Part II-A

If the organization answered "Yes" to Form 990, Part IV, Line 5 ( Proxy Tax) or Form 990-EZ, Part V, line 35c ( Proxy Tax), then* Section 501(c)(4), (5), or (6) organizations Complete Part IIIName of the organization Employer identification numberST LUKE'S METHODIST HOSPITAL

42-0504780

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

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

2 Political expenditures 0- $

3 Volunteer hours

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

1 Enter the amount of any excise tax incurred by the organization under section 4955 0- $

2 Enter the amount of any excise tax incurred by organization managers under section 4955 0- $

3 If the organization incurred a section 4955 tax, did it file Form 4720 for this year? fl Yes fl No

4a Was a correction made? fl Yes fl No

b If "Yes," describe in Part IV

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

1 Enter the amount directly expended by the filing organization for section 527 exempt function activities 0- $

2 Enter the amount of the filing organization's funds contributed to other organizations for section 527exempt function activities 0- $

3 Total exempt function expenditures Add lines 1 and 2 Enter here and on Form 1120-PO L, line 17b 0- $

4 Did the filing organization file Form 1120-POL for this year? fl Yes fl No

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

(a) Name (b) Address ( c) EIN (d ) Amount paid fromfiling organization's

funds If none, enter -0-

(e) Amount of politicalcontributions received

and promptly anddirectly delivered to a

separate politicalorganization If none,

enter -0-

i-or raperworK rteauction Act Notice, see the instructions Tor corm 99U or yyu -tc. Cat No 50084S Schedule C ( Form 990 or 990-EZ) 2012

Schedule C (Form 990 or 990-EZ) 2012 Page 2

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

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

B Check - (- if the filing organization checked box A and "limited control" provisions apply

Limits on Lobbying Expenditures(a) Filing (b) Affiliated

(The term "expenditures" means amounts paid or incurred .)organization's group

totals totals

la Total lobbying expenditures to influence public opinion (grass roots lobbying)

b Total lobbying expenditures to influence a legislative body (direct lobbying)

c Total lobbying expenditures (add lines la and 1b)

d Other exempt purpose expenditures

e Total exempt purpose expenditures (add lines 1c and 1d)

f Lobbying nontaxable amount Enter the amount from the following table in bothcolumns

If the amount on line le, column ( a) or (b ) is: The lobbying nontaxable amount is:

Not over $500,000 20% of the amount on line le

Over $500,000 but not over $1,000,000 $100,000 plus 15% of the excess over $500,000

Over $1,000,000 but not over $1,500,000 $175,000 plus 10% of the excess over $1,000,000

Over $1,500,000 but not over $17,000,000 $225,000 plus 5% of the excess over $1,500,000

Over $17,000,000 $1,000,000

g Grassroots nontaxable amount (enter 25% of line 1f)

h Subtract line 1g from line la If zero or less, enter-0-

i Subtract line 1f from line 1c If zero or less, enter-0-

i If there is an amount other than zero on either line 1h or line 11, did the organization file Form 4720 reportingsection 4911 tax for this year? F- Yes F- No

4-Year Averaging Period Under Section 501(h)(Some organizations that made a section 501(h) election do not have to complete all of the five

columns below. See the instructions for lines 2a through 2f on page 4.)

Lobbying Expenditures During 4-Year Averaging Period

Calendar year (or fiscal yearbeginning in)

(a) 2009 (b) 2010 (c) 2011 (d) 2012 (e) Total

2a Lobbying nontaxable amount

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

c Total lobbying expenditures

d Grassroots nontaxable amount

e Grassroots ceiling amount150% of line 2d column e

f Grassroots lobbying expenditures

Schedule C (Form 990 or 990-EZ) 2012

Schedule C (Form 990 or 990-EZ) 2012 Pa g e 3Complete if the organization is exempt under section 501 ( c)(3) and has NOTfiled Form 5768 election under section 501 ( h )) .

For each "Yes" response to lines la through li below, provide in Part IV a detailed description of the lobbying(a) (b)

activity . Yes No Amount

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

a Volunteers? No

b Paid staff or management (include compensation in expenses reported on lines 1c through 1i)? No

c Media advertisements? No

d Mailings to members, legislators, or the public? No

e Publications, or published or broadcast statements? No

f Grants to other organizations for lobbying purposes? No

g Direct contact with legislators, their staffs, government officials, or a legislative body? Yes 5,000

h Rallies, demonstrations, seminars, conventions, speeches, lectures, or any similar means? No

i Other activities? No

j Total Add lines 1c through 11 5,000

2a Did the activities in line 1 cause the organization to be not described in section 501(c)(3)? No

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

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

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

Complete if the organization is exempt under section 501(c)(4), section 501(c )( 5), or section501 ( c )( 6 ) .

Yes No

1 Were substantially all (90% or more) dues received nondeductible by members? 1

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

3 Did the organization agree to carry over lobbying and political expenditures from the prior year? 3

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

501(c )( 6) and if either (a) BOTH Part 111-A , lines 1 and 2, are answered "No" OR (b) Part 111-A,line 3 , is answered "Yes."

1 Dues, assessments and similar amounts from members 1

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

a Current year 2a

b Carryover from last year 2b

c Total 2c

3 Aggregate amount reported in section 6033(e)(1 )(A) notices of nondeductible section 162(e) dues 3

4 If notices were sent and the amount on line 2c exceeds the amount on line 3, what portion of the excessdoes the organization agree to carryover to the reasonable estimate of nondeductible lobbying andpolitical expenditure next year? 4

5 Taxable amount of lobbying and political expenditures (see instructions) 5

Su lementalInformation

Complete this part to provide the descriptions required for Part I-A, line 1, Part I-B, line 4, Part I-C, line 5, Part II-A (affiliated group list),Part II-A line 2 , and Part II-B line 1 Also , com p lete this p art for an y additional information

Identifier Return Reference Explanation

EXPLANATION OF LOBBYING PART II-B, LINE 1 FEES PAID FOR LOBBYING FOR HOSPITAL-RELATEDACTIVITIES ISSUES

Schedule C (Form 990 or 990EZ) 2012

lefile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 93493318001183

SCHEDULE D(Form 990)


Internal Revenue Service

Name of the organizationST LUKE'S METHODIST HOSPITAL

OMB No 1545-0047

2012

Employer identification number

42-0504780Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts . Complete if theorg anization answered "Yes" to Form 990 , Part IV , line 6.

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

1 Total number at end of year

2 Aggregate contributions to (during year)

3 Aggregate grants from ( during year)

4 Aggregate value at end of year

5 Did the organization inform all donors and donor advisors in writing that the assets held in donor advisedfunds are the organization ' s property, subject to the organization ' s exclusive legal control? F Yes I No

6 Did the organization inform all grantees , donors, and donor advisors in writing that grant funds can beused only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purposeconferring impermissible private benefit? fl Yes fl No

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

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

1 Preservation of land for public use ( e g , recreation or education ) 1 Preservation of an historically important land area

1 Protection of natural habitat 1 Preservation of a certified historic structure

fl Preservation of open space

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

a Total number of conservation easements

b Total acreage restricted by conservation easements

c Number of conservation easements on a certified historic structure included in (a)

d Number of conservation easements included in (c) acquired after 8/17/06, and not on ahistoric structure listed in the National Register

Held at the End of the Year

2a

2b

2c

2d

3 N umber of conservation easements modified, transferred , released, extinguished, or terminated by the organization during

the tax year 0-

4 N umber of states where property subject to conservation easement is located 0-

5 Does the organization have a written policy regarding the periodic monitoring , inspection , handling of violations, andenforcement of the conservation easements it holds? fl Yes fl No

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

0-

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

0- $

8 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)? F Yes 1 No

9 In Part XIII, describe how the organization reports conservation easements in its revenue and expense statement, andbalance sheet, and include, if applicable, the text of the footnote to the organization's financial statements that describesthe organization's accounting for conservation easements

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

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

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

(i) Revenues included in Form 990, Part VIII, line 1 $

(ii)Assets included in Form 990, Part X $

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

a Revenues included in Form 990, Part VIII, line 1 $

b Assets included in Form 990, Part X $

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 52283D Schedule D (Form 990) 2012

Supplemental Financial Statements

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

0- Attach to Form 990. 0- See separate instructions.

Schedule D (Form 990) 2012 Page 2

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

3 Using the organization's acquisition, accession, and other records, check any of the following that are a significant use of itscollection items (check all that apply)

a F_ Public exhibition d fl Loan or exchange programs

b 1 Scholarly research e (- Other

c F Preservation for future generations

4 Provide a description of the organization's collections and explain how they further the organization's exempt purpose inPart XIII

5 During the year, did the organization solicit or receive donations of art, historical treasures or other similarassets to be sold to raise funds rather than to be maintained as part of the organization's collection? 1 Yes 1 No

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

la Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets notincluded on Form 990, Part X7 1 Yes F No

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

c Beginning balance 1c

d Additions during the year ld

e Distributions during the year le

f Ending balance if

A mount

2a Did the organization include an amount on Form 990, Part X, line 21? fl Yes fl No

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

MWAF-Endowment Funds . Com p lete if the org anization answered "Yes" to Form 990 , Part IV , line 10.

la Beginning of year balance .

b Contributions

c Net investment earnings, gains, and losses

d Grants or scholarships

e Other expenditures for facilitiesand programs

f Administrative expenses .

g End of year balance

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

4,994,969 4,843,994 3,382,526 3,394,479 4,760,884

584,096 182,201 1,478,171 40,071 -1,291,996

16,115 30,735 16,017 55,654 74,409

653 491 686 -3,630

5,562,297 4,994,969 4,843,994 3,382,526 3,394,479

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

a Board designated or quasi-endowment 0- 93 590 %

b Permanent endowment 0- 1 340 %

c Temporarily restricted endowment 0- 5 060 %

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

3a Are there endowment funds not in the possession of the organization that are held and administered for theorganization by Yes No

(i) unrelated organizations . . . . . . . . . . . . . . . . . . . . . . . . 3a(i) No

(ii) related organizations . . . . . . . . . . . . . . . . . . . . . . 3a(ii) Yes

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

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

Land . Buildings . and Eauiument. See Form 990. Part X. line 10.

Description of property (a) Cost or otherbasis (investment)

(b)Cost or otherbasis (other )

( c) Accumulateddepreciation

( d) Book value

la Land 17,466,519 17,466,519

b Buildings 120,739,447 59,505,241 61,234,206

c Leasehold improvements . .

d Equipment 172,142,428 109,798,532 62,343,896

e Other 2,840,671 2,025,721 814,950

Total . Add lines la through 1e (Column (d) must equal Form 990, Part X, column (B), line 10 (c).) . 141,859,571

Schedule D (Form 990) 2012


Investments -Other Securities . See Form 990 , Part X , line 12.

(a) Description of security or category (b)Book value (c) Method of valuation(including name of security) Cost or end-of-year market value

(1 )Financial derivatives

(2)Closely-held equity interests

Other

Total . (Column (b) must equal Form 990, Part X, col (B) line 12 ) 0.1

Investments- Pro ram Related . See Form 990 , Part X , line 13.

(a) Description of investment typeI I

(b) Book value (c) Method of valuationCost or end-of-year market value


Total . (Column (b) must equal Form 990, Part X, col (B) line 13) 0. 1 45,493,554

Other Assets . See Form 990 , Part X line 15.

(a) DescriDtion (b) Book value

Total . (Column (b) must equal Form 990, Part X, co/.(8) line 15.)

Other Liabilities . See Form 990 , Part X line 25.1 (a) Description of liability (b) Book value

Federal income taxes

DUE TO AFFILIATES 47,813,789

ASBESTOS REMOVAL LIABILITY 1.140.970

LONG-TERM RETENTION INCENTIVES 3,541,963

IOWA HEALTH SYSTEM NOTE PAYABLE 36,916,000

SELF-INSURANCE RESERVE 7,657,300

HEALTH AND WELFARE BENEFITS RESERVE 1,803,000

DEFINED BENEFIT RETIREMENT PLAN LIA 28,542,722

Total . (Column (b) must equal Form 990, Part X, col (B) line 25) P. I 12 7,4 15,7 44

2. Fin 48 (ASC 740) Footnote In Part XIII, provide the text of the footnote to the organization's financial statements that reports theorganization's liability for uncertain tax positions under FIN 48 (ASC 740) Check here if the text of the footnote has been provided inPart XIII F



_ Reconciliation of Revenue per Audited Financial Statements With Revenue per Return171174T

1 Total revenue, gains, and other support per audited financial statements . 1 351,169,000

2 Amounts included on line 1 but not on Form 990, Part VIII, line 12

a Net unrealized gains on investments . 2a -5,919,573

b Donated services and use of facilities . 2b

c Recoveries of prior year grants 2c

d Other (Describe in Part XIII ) . . . . . . . . . . . 2d 2,490,654

e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . 2e -3,428,919

3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 354,597,919

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 287,045

b Other (Describe in Part XIII ) . . . . . . . . . . 4b 20,851,415

c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c 21,138,460

5 Total revenue Add lines 3 and 4c. (This must equal Form 990, Part I, line 12 ) . . . . .

-

5 375,736,379

of Ex penses per Audited Financial Statements With Ex penses per Return191M.Off

1 Total expenses and losses per audited financial statements 1 333,645,000

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 576,881

e Add lines 2a through 2d . . . . . . . . . . . . . . . . . . . . . 2e 576,881

3 Subtract line 2e from line 1 . . . . . . . . . . . . . . . . . . . . 3 333,068,119

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 287,045

b Other (Describe in Part XIII ) . . . . . . . . . . . 4b 25,551,798

c Add lines 4a and 4b . . . . . . . . . . . . . . . . . . . . . . 4c 25,838,843

5 Total expenses Add lines 3 and 4c. (This must equal Form 990, Part I, line 18 ) . . . . . 5 358,906,962

OTIT."M Supplemental Information

Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9, Part III, lines la and 4, Part IV, lines lb 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 additionalinformation


DESCRIPTION OF INTENDED USE PART V, LINE 4 THE ORGANIZATION RETAINS FUNDS FOR INTENDEDOF ENDOWMENT FUNDS FUTURE USES, INCLUDING PURCHASE OF EQUIPMENT,

INDIGENT CARE, FUNDING OF MISSION RELATEDOPERATIONS, AND HEALTH EDUCATION IN ADDITION,SOME FUNDS ARE HELD FOR INVESTMENT IN PERPETUITY

DESCRIPTION OF UNCERTAIN PART X, LINE 2 IOWA HEALTH SYSTEM AND MOST OF ITS SUBSIDIARIESTAX POSITIONS UNDER FIN 48 ARE CLASSIFIED AS TAX-EXEMPT ORGANIZATIONS AS

DESCRIBED IN SECTIONS 501(C)(3)AND 501(C)(2)OFTHEINTERNAL REVENUE CODE (THE CODE) TAX-EXEMPTORGANIZATIONS ARE NOT SUBJECT TO FEDERAL ANDSTATE INCOME TAXES ON RELATED INCOME, PURSUANTTO SECTION 501(A)OFTHE CODE THESEORGANIZATIONS ARE SUBJECT TO FEDERAL AND STATEINCOME TAXES TO THE EXTENT THEY HAVE UNRELATEDBUSINESS INCOME AS DESCRIBED UNDER PROVISIONSOFSECTION 511 OFTHE CODE THE HEALTH SYSTEMFILES FORM 990 FOR SUBSTANTIALLY ALL OF ITSOPERATING ENTITIES IN THE U S FEDERALJURISDICTION AND IS NO LONGER SUBJECT TOEXAMINATION BY TAX AUTHORITIES FOR THE YEARSBEFORE 2009 THE HEALTH SYSTEM HAS NO MATERIALUNCERTAIN TAX POSITIONS CERTAIN SUBSIDIARIES ARESUBJECT TO FEDERAL AND STATE INCOME TAXES SOMEOF THESE CORPORATIONS HAVE ACCUMULATED NETOPERATING LOSS CARRYFORWARDS THAT ARE AVAILABLETO OFFSET FUTURE TAXABLE INCOME DURING THECARRYFORWARD PERIOD NO INCOME TAX BENEFIT HASBEEN RECOGNIZED FORTHE NET OPERATING LOSSCARRYFORWARDS OR OTHER POTENTIAL DEFERRED TAXASSETS IN THE CONSOLIDATED FINANCIAL STATEMENTSBECAUSE THE HEALTH SYSTEM BELIEVES REALIZATIONOF THESE BENEFITS IS UNLIKELY

PART XI, LINE 2D - OTHER COST OF GOODS SOLD 576,881 REVENUES INADJUSTMENTS TEMPORARILY RESTRICTED FUND BALANCE 1,913,773

PART XI, LINE 4B - OTHER REVENUES IN UNRESTRICTED FUND BALANCE 1,995,456ADJUSTMENTS IOWA HEALTH SYSTEM CONTRACTING SERVICES, LC

PURCHASE REBATES 1,421,562 PHARMACYRECLASSIFICATION 17,433,902 ROUNDING 495

PART XII, LINE 2D - OTHER COST OF GOODS SOLD 576,881ADJUSTMENTS

PART XII, LINE 4B - OTHER EXPENSES IN UNRESTRICTED FUND BALANCE 6,694,133ADJUSTMENTS IOWA HEALTH SYSTEM CONTRACTING SERVICES, LC

PURCHASE REBATES 1,421,562 PHARMACYRECLASSIFICATION 17,433,902 ROUNDING 2,201


Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990. Schedule D. Part VIII - Investments- Program Related(a) Description of investment type (b) Book value (c) Method of valuation

Cost or end-of-year market value

(1)AFFORDABLE HOUSE NETWORK- BONDENDENTURE 100,000 C

(2) BENEFICIAL INTEREST IN COMMUNITYCANCER CENTER 1,096,223 C

(3) BENEFICIAL INTEREST IN NELLIESHERWOOD TRUST 125,427 F

(4) BENEFICIAL INTEREST IN ST LUKE'SHEALTH CARE FOUNDATION 32,451,181 F

(5) BONE DENSITOMETRY & BREAST BIOPSYSERVICES 44,457 C

(6) EASTERN IOWA SLEEP CENTER, LLC 278,096 C

(7) HEALTH ENTERPRISES PHARMACYSERVICES -18,080 C

(8) HEALTH ENTERPRISES VENTURES & HEALTHENTERPRISES OF IOWA 413,062 C

(9) HEALTHNET CONNECT, LC 100 C

(10) HELLEN G NASSIF COMMUNITY CANCERCENTER 678,000 C

(11) HONEYMAN DIALYSIS, LLC 28,714 C

(12)IOWA ECHO ULTRASOUND SERVICES 68,765 C

(13)IOWA HEALTH SYSTEM CONTRACTINGSERVICES, LC 5,000 C

(14) MEDICAL LABORATORIES OF EASTERNIOWA, LC 808,993 C

(15) MR ASSOCIATES, LLP 561,887 C

(16) PCI LENDER, LLC 229,284 C

(17) PCI REGIONAL MEDICAL MALL, LLC 357,218 C

(18)ST LUKE'S-COE STEAM, INC 333,134 C

(19) STL HEALTH RESOURCES CO 4,622,922 C

(20)THE OUTPATIENT SURGERY CENTER OFCEDAR RAPIDS, LLC 3,309,171 C


SCHEDULEG SU lemental Information Re ardin OMB No 1545-0047

(Form 990 or 990-EZ) pp g gFundraising or Gaming ActivitiesComplete if the organization answered "Yes" to Forth 990, Part IV, lines 17, 18, or 19 , or if the organization entered

more than $15,000 on Form 990-EZ, line 6a. Form 990-EZ filers are not required to complete this part.

Department of the Treasury PrAttach to Form 990 or Forth 990-EZ. PrSee separate instructions.



2012


42-0504780

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

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

a 1 Mail solicitations e 1 Solicitation of non-government grants

b 1 Internet and email solicitations f 1 Solicitation of government grants

c 1 Phone solicitations g 1 Special fundraising events

d 1 In-person solicitations

2a Did the organization have a written or oral agreement with any individual (including officers, directors, trusteesor key employees listed in Form 990, Part VII) or entity in connection with professional fundraising services? 1' Yes 1! No

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

(i) Name and address ofindividual

or entity (fundraiser)

(ii) Activity (iii) Didfundraiser have

custody orcontrol of

contributions?

(iv) Gross receiptsfrom activity

(v) Amount paid to(or retained by)

fundraiser listed incol (i)

(vi) Amount paid to(or retained by)organization

Yes No

Total

3 List all states in which the organization is registered or licensed to solicit funds or has been notified it is exempt from registration orlicensing

For Paperwork Reduction Act Notice, see the Instructions for Form 990or 990-EZ . Cat No 50083H Schedule G ( Form 990 or 990-EZ) 2012

Schedule G (Form 990 or 990-EZ) 2012 Page 2

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

(a) Event #1 (b) Event #2 (c) Other events (d) Total events(add col (a) through

BOOK SALE BABY PRINTS 3 col (c))

(event type) (event type) (total number)

co1 Gross receipts 58,317 6,227 7,448 71,992

752 Less Contributions

3 Gross income (line 1minus line 2) 58,317 6,227 7,448 71,992

4 Cash prizes

u75 Noncash prizes

6 Rent/facility costs

7 Food and beverages

8 Entertainment .

9 Other direct expenses 48,225 13,084 61,309

10 Direct expense summary Add lines 4 through 9 in column (d) . ► (61,309)

11 Net income summary Combine line 3, column (d), and line 10 . . . . . . . . .10,683

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

(a) Bingo (b) Pull tabs/Instant (c) Other gaming (d) Total gaming (addbingo/progressive bingo col (a) through col

co (c) )

1 Gross revenue .

2 Cash prizesu)C

3 Non-cash prizes

LIJ

4 Rent/facility costs .

5 Other direct expenses

F Yes F Yes F Yes6 Volunteer labor n No F No F No

7 Direct expense summary Add lines 2 through 5 in column (d) . . . . . . . . . . . ►

8 Net gaming income summary Combine lines 1 and 7 in column (d) . ►

9 Enter the state(s) in which the organization operates gaming activities

a Is the organization licensed to operate gaming activities in each of these states? . . . . . . . . . . . . . Yes r No

b If "No," explain

------------- ------------------------- ------------------------- ------------------------- ------------------------ ------------------------- ------------------------- ------------------------- --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

10a Were any of the organization's gaming licenses revoked, suspended or terminated during the tax year? . . . . . F Yes F No

b If "Yes," explain

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Schedule G (Form 990 or 990-EZ) 2012


Does the organization operate gaming activities with nonmembers? . . . . . . . . . . . . . . . . . . Yes r- No

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

formed to administer charitable gaming? . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes r- No

13 Indicate the percentage of gaming activity operated in

a The organization ' s facility 13a

b An outside facility 13b

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

Name ►

Address ►

15a Does the organization have a contract with a third party from whom the organization receives gaming

revenue? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . r- Yes r- No

b If "Yes," enter the amount of gaming revenue received by the organization ► $ and the

amount of gaming revenue retained by the third party $

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

Name '

Address '

---------------- ------------------------------ ------------------------------ ------------------------------------------------------------ ------------------------------ -

16 Gaming manager information

Name llik^------------ ----------------------- ---------------------- ----------------------- ----------------------- ----------------------- ---------------------- -

Gaming manager compensation ► $ _ --------------------------------------------

Description of services provided---------- ------------------ ------------------ ------------------ ------------------- ------------------ ------------------ ------------------ ----------

r- Director/officer Employee Independent contractor

17 Mandatory distributions

a Is the organization required understate law to make charitable distributions from the gaming proceeds to

retain the state gaming license? . . . . . . . . . . . . . . . . . . . . . . . . . . . . r-Yes r-No

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

in the organization ' s own exempt activities during the tax year $

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

IIdentifier Return Reference

IExplanation

Page 311


l efile GRAPHIC print - DO NOT PROCESS As Filed Data - DLN: 93493318001183

SCHEDULE H HospitalsOMB No 1545-0047

(Form 990)201 21- Complete if the organization answered "Yes" to Form 990, Part IV , question 20.

Department of the Treasury 1- Attach to Form 990. 1- See separate instructions. OpenInternal Revenue Service

I Inspection


42-0504780

Financial Assistance and Certain Other Community Benefits at CostYes No

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

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

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

F Applied uniformly to all hospital facilities F Applied uniformly to most hospital facilities

r Generally tailored to individual hospital facilities

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

a 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 3a Yes

F 100% F 150% F 2000/o F Other %

b 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 3b Yes

F 200% F 250% F 300% F 350% F 4000/o F Other %

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

4 Did the organization ' s financial assistance policy that applied to the largest number of its patients during the tax yea rprovide for free or discounted care to the " medically indigent"? 4 Yes

5a Did the organization budget amounts for free or discounted care provided under its financial assistance policy duringthe tax year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5a Yes

b If "Yes," did the organization ' s financial assistance expenses exceed the budgeted amount? 5b Yes

c 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? 5c No

6a Did the organization prepare a community benefit report during the tax year? 6a Yes

b If "Yes," did the organization make it available to the public? 6b Yes

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

7 Financial Assistance and Certain Other Community Benefits at Cost

Financial Assistance and (a) Number ofOb Persons ( c) Total communit y Od Direct offsetting (e) Net community benefit (f) Percent of

Means-Testedactivities or served benefit expense revenue expense total expense

Government Programsprograms(optional)

(optional)

a Financial Assistance at cost(from Worksheet 1) . 6,680,421 6,680,421 1 860 %

b Medicaid (from Worksheet 3,column a) . . . 41,988,120 27,702,684 14,285,436 3 980 %

c Costs of other means-testedgovernment programs (fromWorksheet 3, column b)

d Total Financial Assistanceand Means-TestedGovernment Programs 48,668,541 27,702,684 20,965,857 5 840 %

Other Benefitse Community health

improvement services andcommunity benefit operations(from Worksheet 4) . 43,147 1,286,727 44,043 1,242,684 0 350 %

f Health professions education(from Worksheet 5) . 1,774 2,004,429 217,817 1,786,612 0 500 %

g Subsidized health services(from Worksheet 6) . 1,720 28,512,474 22,999,738 5,512,736 1 540 %

h Research (from Worksheet 7) 103 17,544 17,544 0 %

i Cash and in-kindcontributions for communitybenefit (from Worksheet 8) 7,269,436 4,246,596 3,022,840 0 840 %

j Total . Other Benefits . 46,744 39,090,610 27,508,194 11,582,416 3 230 %

k Total . Add lines 7d and 7j 46,744 87,759,151 55,210,878 32,548,273 9 070 %

For Paperwork Reduction Act Notice, see the Instructions for Form 990 . Cat N o 50192T Schedule H (Form 990) 2012

Schedule H (Form 990) 2012 Page

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

(a) Number ofactivities orprograms(optional)

( b) Personsserved (optional )

( c) Total communitybuilding expense

(d) Direct offsettingrevenue

(e) Net communitybuilding expense

(f) Percent oftotal expense

1 Ph y sical im p rovements and housin g

2 Economic development

3 Community su pp ort 1 131,756 131,756 0 040 %

4 Environmental improvements

5 Leadership development and trainingfor community members

6 Coalition building

7 Community health improvementadvocacy

8 Workforce development

9 Other

10 Total 1 131,756 131,756 0 040 %

Ill:M.2111 Bad Debt , Medicare , & Collection PracticesSection A. Bad Debt Expense Yes No

1 Did the organization report bad debt expense in accordance with Heathcare Financial Management AssociationStatement No 15? . . . . . . . . . . . . . . . . . . . . 1 No

2 Enter the amount of the organization's bad debt expense Explain in Part VI themethodology used by the organization to estimate this amount 2 4,383,405

3 Enter the estimated amount of the organization's bad debt expense attributable topatients eligible under the organization's financial assistance policy Explain in Part VIthe methodology used by the organization to estimate this amount and the rationale, ifany, for including this portion of bad debt as community benefit 3 0

4 Provide in Part VI the text of the footnote to the organization's financial statements that describes bad debt expenseor the page number on which this footnote is contained in the attached financial statements

Section B. Medicare

5 Entertotal revenue received from Medicare (including DSH and IME) . 5 67,449,065

6 Enter Medicare allowable costs of care relating to payments on line 5 . 6 75,337,778

7 Subtract line 6 from line 5 This is the surplus (or shortfall) . 7 -7,888,713

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

F Cost accounting system F Cost to charge ratio F Other

Section C. Collection Practices

9a Did the organization have a written debt collection policy during the tax year? .

b If "Yes," did the organization's collection policy that applied to the largest number of its patients during the tax yearcontain provisions on the collection practices to be followed for patients who are known to qualify for financialassistance? Describe in Part VI 9b Yes. . . . . . . . . . . . . . . . . . . . . . .

Management Comnanies and Joint VenturesrnvunPri ,n° nr mnra hvnfrarc rLrartnrc triictaac kavamnlnvaac and nhvananc-s inctrnrtinncl

(a) Name of entity (b) Description of primaryactivity of entity

(c) Organization'sprofit % or stockownership %

(d) Officers, directors,trustees, or key

employees' profit %or stock ownership

(e) Physicians'profit % or stockownership

1 1 MEDLABS OF EASTERN IOWA LC LABORATORY SERVICES 50 000 % 50 000 %

2 2 THE OUTPATIENT SURGERY CENTER OFCEDAR RAPIDS LLC

AMBULATORY SURGERY CENTER 50 000 % 50 000 %

3 3 MR ASSOCIATES LLP PURCHASE, OWN & OPERATE MOBILE & FIXED-BASEDMRI UNITS

33 330 % 33 330 %

4 4 EASTERN IOWA SLEEP CENTER LLC PROVIDE SLEEP STUDIES 33 330 % 33 330 %

5

6

7

8

9

10

11

12

13

Schedule H (Form 990) 2012


Facility Information

Section A . Hospital Facilities 5 s CDLD

(P

-CID

s.{3=2

-,

y IN

I

(list in order of size from largest to0 T

0 Cp

smallest-see instructions) CL o 0How many hospital facilities did the 5 (P -0 (organization operate during the tax year? P_ o

1

e3 ^

Name , address, and primary website addressn

- Other ( Describe ) Facility reporting group

1 ST LUKE'S METHODIST HOSPITAL1026 A AVENUE NE X X X XCEDAR RAPIDS,IA 524023026



Facility 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)

ST LUKE'S METHODIST HOSPITAL

Name of hospital facility or facility reporting group

For single facility filers only: line Number of Hospital Facility (from Schedule H, Part V, Section A)

No

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

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

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

a F A definition of the community served by the hospital facility

b F Demographics of the community

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

d 1 How data was obtained

e 1 The health needs of the community

f Primary and chronic disease needs and other health issues of uninsured persons, low-income persons, and minoritygroups

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

h F The process for consulting with persons representing the community's interests

i F Information gaps that limit the hospital facility's ability to assess the community's health needs

j F Other (describe in Part VI)

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

3 In conducting its most recent CHNA, did the hospital facility take into account input from representatives of the communityserved by the hospital facility, including those with special knowledge of or expertise in public health? If"Yes," describe inPart VI how the hospital facility took into account input from persons who represent the community , and identify thepersons the hospital facility consulted . . . . . . . . . . . . . . . . . . . . 3

4 Was the hospital facility's CHNA conducted with one or more other hospital facilities? If"Yes," list the other hospitalfacilities in Part VI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5 Did the hospital facility make its CHNA report widely available to the public? . . . . . . . . . . . . . 5

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

a 1 Hospital facility's website

b 1 Available upon request from the hospital facility

c 1 Other ( describe in Part VI)

6 If the hospital facility addressed needs identified in its most recently conducted CHNA, indicate how (check all that applyto date)

a r- Adoption of an implementation strategy that addresses each of the community health needs identified through theCHNA

b F Execution of the implementation strategy

c F Participation in the development of a community- wide plan

d F Participation in the execution of a community- wide plan

e F Inclusion of a community benefit section in operational plans

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

g F Prioritization of health needs in its community

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

i F Other ( describe in Part VI)

7 Did the hospital facility address all of the needs identified in its most recently conducted CHNA? If"No," explain in Part VIwhich needs it has not addressed and the reasons why it has not addressed such needs . . . . . . 7

8a Did the organization incur an excise tax under section 4959 for the hospital facility's failure to conduct a CHNA asrequired by section 501 (r)(3)? . . . . . . . . . . . . . . . . . . . . . . . . . 8a

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

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

hospital facilities? $



Facility Information (continued)

Financial Assistance Policy Yes No

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

Explained eligibility criteria for financial assistance, and whether such assistance includes free or discounted care? 9 Yes

10 Used federal poverty guidelines (FPG) to determine eligibility for providing free care? . . . . . . . . . . . 10 Yes

If "Yes," indicate the FPG family income limit for eligibility for free care 200 000000000000 %

If "No," explain in Part VI the criteria the hospital facility used

11 Used FPG to determine eligibility for providing discounted care? . . . . . . . . . . . . . . . . . 11 Yes

If"Yes," indicate the FPG family income limit for eligibility for discounted care 400 000000000000 %

If "No," explain in Part VI the criteria the hospital facility used

12 Explained the basis for calculating amounts charged to patients? . . . . . . . . . . . . . . . . . 12 Yes

If"Yes," indicate the factors used in determining such amounts (check all that apply)

a F' Income level

b F' Asset level

c F' Medical indigency

d F' Insurance status

e I Uninsured discount

f F' Medicaid/Medicare

g F' State regulation

h F' Other (describe in Part VI)

13 Explained the method for applying for financial assistance? . . . . . . . . . . . . . . . . . . . 13 Yes

14 Included measures to publicize the policy within the community served by the hospital facility? . . . . . . . 14 Yes

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

a I The policy was posted on the hospital facility's website

b I The policy was attached to billing invoices

c 1 The policy was posted in the hospital facility's emergency rooms or waiting rooms

d 1 The policy was posted in the hospital facility's admissions offices

e 1 The policy was provided, in writing, to patients on admission to the hospital facility

f F The policy was available upon request

g I Other (describe in Part VI)

Billing and Collections

15 Did the hospital facility have in place during the tax year a separate billing and collections policy, or a written financialassistance policy (FAP) that explained actions the hospital facility may take upon non-payment? . . . . . . . 15 Yes

16 Check all of the following actions against an individual that were permitted under the hospital facility's policies duringthe tax year before making reasonable efforts to determine the patient's eligibility under the facility's FA P

a F' Reporting to credit agency

b F' Lawsuits

c F' Liens on residences

d F' Body attachments

e F' Other similar actions (describe in Part VI)

17 Did the hospital facility or an authorized third party perform any of the following actions during the tax year beforemaking reasonable efforts to determine the patient's eligibility under the facility's FAP? . . . . . . . . . . 17 No

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

a F' Reporting to credit agency

b F' Lawsuits

c F' Liens on residences

d F' Body attachments

e FO ther similar actions (describe in Part VI)




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

a F Notified individuals of the financial assistance policy on admission

b F Notified individuals of the financial assistance policy prior to discharge

c 7 Notified individuals of the financial assistance policy in communications with the patients regarding the patients' bills

d 7 Documented its determination of whether patients were eligible for financial assistance under the hospital facility'sfinancial assistance policy

e 1 Other (describe in Part VI)

Policy Relating to Emergency Medical Care

Yes No

19 Did the hospital facility have in place during the tax year a written policy relating to emergency medical care that requiresthe hospital facility to provide, without discrimination, care for emergency medical conditions to individuals regardless oftheir eligibility under the hospital facility's financial assistance policy? . . . . . . . . . . 19 Yes

If"No," indicate why

a 1 The hospital facility did not provide care for any emergency medical conditions

b 1 The hospital facility's policy was not in writing

c 1 The hospital facility limited who was eligible to receive care for emergency medical conditions (describe in Part VI)

d 1 Other (describe in Part VI)

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

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

a F- The hospital facility used its lowest negotiated commercial insurance rate when calculating the maximum amounts thatcan be charged

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

c 1 The hospital facility used the Medicare rates when calculating the maximum amounts that can be charged

d 1 Other (describe in Part VI)

21 During the tax year, did the hospital facility charge any FAP-eligible individuals to whom the hospital facility providedemergency or other medically necessary services, more than the amounts generally billed to individuals who had insurancecovering such care? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 No

If"Yes," explain in Part VI

22 During the tax year, did the hospital facility charge any FAP-eligible individuals an amount equal to the gross charge for anyservice provided to that individual? . . . . . . . . . . . . . . . . . . . . . . . . . 22 No

If"Yes," explain in Part VI




Section C. Other Health Care Facilities That Are Not Licensed, Registered, or Similarly Recognized as aHospital 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?14

Name and address Typ e of Facility ( describe )1 See Additional Data Table

2

3

4

5

6

7

8

9

10


Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990 Schedule H, Part V Section C. Other Facilities That Are Not Licensed, Registered, or SimilarlyRecognized as a Hospital Facility

Section C. Other Health Care Facilities That Are Not Licensed , Registered, or Similarly Recognized as aHospital 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?14

Name and address Type of Facility (describe)1 WOMEN'S & CHILDREN'S CENTER INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,

1100 FIRST AVENUE NE NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52404

2 WORK WELL SOLUTIONSTHERAPY PLUS INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,830 FIRST AVENUE NE NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

3 WITWER CHILDREN'S THERAPYTHERAPY PLUS INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,3245 WILLIAMS PARKWAY SW SUITE 9 NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52404

4 CHEMICAL DEPENDENCY INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,1030 5TH AVENUE SUITE 110 NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52403

5 FAMILY COUNSELING CENTER INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,225 12TH STREET NE SUITES 201 AND NURSERY, PRE AND POSTPARTUM A203CEDAR RAPIDS,IA 52402

6 BREAST & BONE HEALTH INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,855 A AVENUE NE SUITE 400 NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

7 WOUND HEALING CENTER INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,4251 RIVERCENTER COURT NE NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

8 ST LUKE'S CHILDREN'S CAMPUS INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,1075 NORTH CENTER POINT ROAD NURSERY, PRE AND POSTPARTUM AHIAWATHA,IA 52233

9 CHILD PROTECTION CENTER INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,1095 NORTH CENTER POINT ROAD NURSERY, PRE AND POSTPARTUM AHIAWATHA,IA 52233

10 DIABETES EDUCATION CENTER INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,810 FIRST AVENUE NE SUITE 103 NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

11 ST LUKE'S IMAGING SERVCIES INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,2996 7TH AVENUE SUITE A NURSERY, PRE AND POSTPARTUM AMARION,IA 52302

12 ST LUKE'S THERAPY PLUS INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,2996 7TH AVENUE SUITE C NURSERY, PRE AND POSTPARTUM AMARION,IA 52302

13 THERAPY PLUS INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,5313 NORTH PARK PLACE NE NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

14 CHILDREN'S BEHAVIOR HEALTH SERVICES INPATIENT & OUTPATIENT - OB, LABOR & DELIVERY,4050 RIVER RIDGE DRIVE NE NURSERY, PRE AND POSTPARTUM ACEDAR RAPIDS,IA 52402

efile GRAPHIC print - DO NOT PROCESS I As Filed Data - I DLN: 93493318001183

Schedule I OMB No 1545-0047

(Form 990 ) Grants and Other Assistance to Organizations,2012Governments and Individuals in the United States

Complete if the organization answered "Yes," to Form 990, Part IV, line 21 or 22.Department of the Treasury l Attach to Form 990Internal Revenue Service

Name of the organization Employer identification number

ST LUKE'S METHODIST HOSPITAL42-0504780

JE^ll General Information on Grants and Assistance

1 Does the organization maintain records to substantiate the amount of the grants or assistance, the grantees' eligibility for the grants or assistance, andthe selection criteria used to award the grants or assistance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F Yes 1 No

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

Grants and Other Assistance to Governments and Organizations in the United States . Complete if the organization answered "Yes" toForm 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 (b) EIN (c) IRC Code (d) Amount of cash (e) Amount of non- (f) Method of (g) Description of (h) Purpose of grantorganization section grant cash valuation non-cash assistance or assistance

or government if applicable assistance (book, FMV,appraisal,

other)


2 Enter total number of section 501(c)(3) and government organizations listed in the line 1 table . ► 14

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

For Paperwork Reduction Act Notice, see the Instructions for Form 990 . Cat No 50055P Schedule I (Form 990) 2012

Schedule I (Form 990) 2012 Pa g e 2Grants and Other Assistance to Individuals in the United States . Complete if the organization answered "Yes" to Form 990, Part IV, line 22.Part III can be duplicated if additional space is needed.

(a)Type of grant or assistance (b)N umber of (c)A mount of (d)Amount of (e)Method of valuation (book, (f)Description of non-cash assistancerecipients cash grant non-cash assistance FMV, appraisal, other)

(1) SCHOLARSHIPS 2 4,000

(2) OTHER 111 54,327

Supplemental Information.Complete this part to provide the information required in Part I, line 2, Part III, column ( b), and any other additional information


PROCEDURE FOR PART I, LINE 2 SCHEDULE I, PART I, LINE 2 ST LUKE'S METHODIST HOSPITAL REQUIRES EACH RECIPIENT OF THE GRANTSMONITORING GRANTS MENTIONED IN PARTS II &III (OTHERTHAN ASSISTANCE TO RELATED ORGANIZATIONS IN THE FORM OFIN THE U S WORKING CAPITAL)TO APPLY FOR THE GRANT AND OUTLINES A SERIES OF ELIGIBILITY STANDARDS THAT ARE

REQUIRED TO BE MET ST LUKE'S METHODIST HOSPITAL THEN REVIEWS THESE APPLICATIONS AND, BASED ONNEED AND ELIGIBILITY, A COMMITTEE MAKES THE FINAL DECISION ON ALL GRANT RECIPIENTS

Schedule I (Form 990) 2012

Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990,Schedule I, Part II, Grants and Other Assistance to Governments and Organizations in the United States

Return to Form

(a) Name and address of (b) EIN (c) IRC Code section (d) Amount of cash (e) Amount of non- (f) Method of (g) Description of (h) Purpose of grantorganization if applicable grant cash valuation non-cash assistance or assistance

or government assistance (book, FMV, appraisal,other)

AMERICAN HEART 13-5613797 501(C)(3) 10,000 PROGRAM SUPPORTASSOCIATIONPO BOX4002902DES MOINES,IA 50340

CEDAR RAPIDS MEDICAL 39-1894395 501(C)(3) 1,751,939 PROGRAM SUPPORTEDUCATION FOUNDATION1026 A AVENUE NECEDAR RAPIDS,IA 52402

CEDAR RAPIDS SYMPHONY 42-0772544 501(C)(3) 10,000 PROGRAM SUPPORT205 2ND AVE SECEDAR RAPIDS,IA 52401

DIVERSITY FOCUS222 2ND 20-3420207 501(C)(3) 5,000 PROGRAM SUPPORTST SECEDAR RAPIDS,IA 52401

HACAPPO BOX 150001 42-0898405 501(C)(3) 5,000 PROGRAM SUPPORTDES MOINES,IA 50315

HEALTHY LINN CARE 42-6004338 501(C)(3) 17,500 PROGRAM SUPPORTNETWO RK501 13THSTREET NWCEDAR RAPIDS,IA 52405

HORIZONSPO BOX 667 42-1135083 501(C)(3) 8,333 PROGRAM SUPPORTCEDAR RAPIDS,IA 52406

IOWA HEALTH SYSTEM 42-1435199 501(C)(3) 1,587,286 PROGRAM SUPPORT1776 WEST LAKESPARKWAY SUITE 400WEST DES MOINES, IA502668239

JUNIOR ACHIEVEMENT800 13-1635270 501(C)(3) 6,242 PROGRAM SUPPORT12TH AVENUEMOLINE,IL 61265

KIRKWOOD FOUNDATION 23-7076632 501(C)(3) 75,000 PROGRAM SUPPORTPO BOX 2068CEDAR RAPIDS,IA 52406

LINN COUNTY MEDICAL 23-7410746 501(C)(3) 5,000 PROGRAM SUPPORTSOCIETY813 FIRST AVE SECEDAR RAPIDS,IA 52402

MARCH OF DIMES107 13-1846366 501(C)(3) 15,000 PROGRAM SUPPORTWEATHERLY SSQUARERAMSEUR,NC 27316

NATIONAL CZECHSLOVAK 51-0189030 501(C)(3) 10,000 PROGRAM SUPPORTMUSUEM1400INSPIRATION PLACE SWCEDAR RAPIDS,IA 52404

PARAMOUNT THEATRE123 46-1211801 GOVERNMENTAL 5,000 PROGRAM SUPPORT3RD AVE SECEDAR RAPIDS,IA 52403

ZACH JOHNSON 27-2683100 501(C)(3) 6,500 PROGRAM SUPPORTFOUNDATIONPO BOX 2336CEDAR RAPIDS,IA 52406


Schedule J Compensation Information OMB No 1545-0047

(Form 990)For certain Officers, Directors, Trustees, Key Employees, and Highest

2012Compensated Employees1- Complete if the organization answered "Yes" to Form 990,

Department of the Treasury Part IV, question 23. PublicOpen to

Internal Revenue Service 1- Attach to Form 990. 1- See separate instructions. Inspection



42-0504780

Questions Regarding Compensation

la Check the appropiate box(es ) if the organization provided any of the following to or for a person listed in Form990, Part VII , Section A, line la Complete Part III to provide any relevant information regarding these items

1 First-class or charter travel 1 Housing allowance or residence for personal use

1 Travel for companions 1 Payments for business use of personal residence

1 Tax idemnification and gross - up payments 1 Health or social club dues or initiation fees

1 Discretionary spending account 1 Personal services (e g , maid, chauffeur, chef)

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

2 Did the organization require substantiation prior to reimbursing or allowing expenses incurred by all officers,directors, trustees, and the CEO/Executive Director, regarding the items checked in line la? 2

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

F Compensation committee F Written employment contract

F Independent compensation consultant F Compensation survey or study

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

Yes I No

4 During the year, did any person listed in Form 990, Part VII, Section A, line la with respect to the filing organizationor a related organization

a Receive a severance payment or change-of-control payment? 4a No

b Participate in, or receive payment from, a supplemental nonqualified retirement plan? 4b Yes

c Participate in, or receive payment from, an equity-based compensation arrangement? 4c No

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

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

5 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the revenues of

a The organization? 5a No

b Any related organization? 5b No

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

6 For persons listed in Form 990, Part VII, Section A, line la, did the organization pay or accrue anycompensation contingent on the net earnings of

a The organization? 6a No

b Any related organization? 6b No

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

7 For persons listed in Form 990, Part VII, Section A, line la, did the organization provide any non-fixedpayments not described in lines 5 and 6? If "Yes," describe in Part III 7 No

8 Were any amounts reported in Form 990, Part VII, paid or accured pursuant to a contract that wassubject to the initial contract exception described in Regulations section 53 4958-4(a)(3)? If "Yes," describein Part III 8 No

9 If "Yes" to line 8, did the organization also follow the rebuttable presumption procedure described in Regulationssection 53 4958-6(c)? 9

For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50053T Schedule 3 (Form 990) 2012

Schedule J (Form 990) 2012 Page 2

Officers , Directors , Trustees , Key Employees, and Highest Compensated Employees . Use duplicate copies if additional space is needed.For each individual whose compensation must be reported in Schedule J, report compensation from the organization on row (i) and from related organizations, described in theinstructions, on row (ii) Do not list any individuals that are not listed on Form 990, Part VIINote . The sum of columns (B)(1)-(iii) for each listed individual must equal the total amount of Form 990, Part VII, Section A, line la, 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 (D) Nontaxable (E) Total of (F) Compensation

(i) Base (ii) Bonus & (iii) Other other deferred benefits columns reported as deferred

compensationincentive reportable compensation (B)(i)-(D) in prior Form 990

compensation compensation


Schedule 3 (Form 990) 2012

Schedule J (Form 990) 2012 Page 3

Supplemental InformationComplete this part to provide the information, explanation, or descriptions required for Part I, lines la, 1b, 3, 4a, 4b, 4c, 5a, 5b, 6a, 6b, 7, and 8, and for Part IIAlso complete this part for any additional information

Identifier I Return Reference I Explanation

PART I, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN A NON-QUALIFIED RETIREMENT PLAN WITH THEFOLLOWING CHANGES TO THEIR ACCOUNTS MILTON AUNAN II $46,294, MICHELLE NIERMANN $17,339,MARY ANN OSBORN $65.285.JOHN SHEEHAN $112 .251. AND THEODORE TOWNSEND .JR $191.690

Schedule 3 (Form 990) 2012

Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990, Schedule J, Part II - Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees

Return to Form

(A) Name (B) Breakdown of W-2 and/or 1099-MISC compensation (C) Deferred (D) Nontaxable (E) Total of columns (F) Compensation

(ii) Bonus & compensation benefits (B)(i)-(D) reported in prior Form

(i) Base (iii) Other 990 or Form 990-EZ

Compensationincentive

compensationcompensation

THEODORE (1) 417,844 152,085 66,560 226,754 23,572 886,815 0TOWNSEND JR (ii) 0 0 0 0 0 0 0

MILTON AUNAN II (i) 261,634 84,812 33,705 63,777 11,804 455,732 0(^^) 0 0 0 0 0 0 0

JOHN SHEEHAN (i) 340,198 107,530 41,354 124,751 23,402 637,235 0(^^) 0 0 0 0 0 0 0

MO HIT CHAWLA MD (1) 758,210 0 0 17,875 12,411 788,496 0(^^) 0 0 0 0 0 0 0

MICHAEL EASLEY (i) 139,652 21,103 977 14,541 23,059 199,332 0(^^) 0 0 0 0 0 0 0

SUBHI HALAWA MD (i) 758,825 0 32,154 19,322 15,981 826,282 0(^^) 0 0 0 0 0 0 0

RICHARD (i) 735,403 0 49,300 18,226 11,954 814,883 0KETTELKAMP MD (ii) 0 0 0 0 0 0 0

TODD LANGAGER MD (1) 667,166 0 39,893 12,500 18,471 738,030 0(^^) 0 0 0 0 0 0 0

MICHELLE NIERMANN (i) 208,446 66,415 16,432 28,748 17,702 337,743 0(^^) 0 0 0 0 0 0 0

MARY ANN OSBORN (i) 256,565 80,288 29,100 87,785 11,396 465,134 0(^^) 0 0 0 0 0 0 0

MARY HLAVIN (1) 885,148 0 1,104 17,382 16,194 919,828 0(^^) 0 0 0 0 0 0 0

MOHAMMED KHALIL (i) 716,360 0 480 15,294 4,527 736,661 0MD (ii) 0 0 0 0 0 0 0

MATTHEW MCMAHON (i) 661,993 0 37,918 13,314 18,471 731,696 0MD (ii) 0 0 0 0 0 0 0

ROY VENZON MD (i) 706,134 0 25,532 17,097 17,021 765,784 0(^^) 0 0 0 0 0 0 0

HISHAM WAGDY MD (i) 842,666 0 38,940 12,786 1,300 895,692 0(^^) 0 0 0 0 0 0 0

KATHERINE (i) 128,262 19,518 317 7,797 20,944 176,838 0OBERBROECKLING (u) 0 0 0 0 0 0 0


Schedule L Transactions with Interested Persons OMB No 1545-0047

(Form 990 or 990-EZ ) 0- Complete if the organization answered

2012"Yes" on Form 990, Part IV , lines 25a , 25b, 26, 27, 28a, 28b, or 28c,or Form 990-EZ, Part V, line 38a or 40b.

Department of the Treasury 0- Attach to Form 990 or Form 990-EZ . 0- See separate instructions.

SEENInternal Revenue Service


42-0504780

Excess Benefit Transactions (section 501(c)(3) and section 501(c)(4) organizations only).Cmmnlata iftha nrnanvatinn ancwarari "Yac" nn Fnrm 99O Part TV Iina 75a nr 75h nr Fnrm 990-F7 Part V Iina 40h

1 (a) Name of disqualified person (b) Relationship between disqualified (c) Description of transaction (d) Corrected?person and organization Yes No

2 Enter the amount of tax incurred by organization managers or disqualified persons during the year under section4958 . . . . . . . . . . . . . . . . . . . . . . . . . . . ► $

3 Enter the amount of tax, if any, on line 2, above, reimbursed by the organization . ► $

Loans to and / or From Interested Persons.Complete if the organization answered "Yes" on Form 990-EZ, Part V, line 38a, or Form 990, Part IV, line 26, or if the

(a) Name of (b) Relationship (c) Purpose (d) Loan to (e)Original (f)Balance (g) In (h) (i)Writteninterested with organization of loan or from the principal due default? Approved agreement?person organization? amount by board or

committee?

To From Yes No Yes No Yes No

Total ► $

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

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

organization

For Paperwork Reduction Act Noticee see the Instructions for Form 990 or 990 -EZ. Cat No 50056A Schedule L (Form 990 or 990-EZ) 2012

Schedule L (Form 990 or 990-EZ) 2012 Page 2

Business Transactions Involving Interested Persons.

Complete if the organization answered "Yes" on Form 990, Part IV, line 28a, 28b, or 28c.(a) Name of interested person (b) Relationship

between interestedperson and theorganization

(c) Amount oftransaction

(d) Description of transaction (e) Sharingof

organization'srevenues?

Yes No

Supplemental Information

Identifier I Return Reference I Explanation

Schedule L (Form 990 or 990-EZ) 2012

Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990, Schedule L, Part IV - Business Transactions Involving Interested Persons

(a) Name of interested person (b) Relationship ( c) Amount of ( d) Description of transaction ( e) Sharing ofbetween interested transaction organization'sperson and the revenues?organization

Yes No

(1)AUDREY HERRING FAMILY MEMBER OF 12,388 AUDREY IS THE DAUGHER OF NoBOARD MEMBER JOHN BOARD MEMBER JOHNHERRING, M D HERRING, M D

(2)CEDAR VALLEY PATHOLOGISTS COMMON BOARD 599,754 PATHOLOGY MEDICAL NoPC MEMBER/OFFICER DIRECTOR

(3) EASTERN IOWA SLEEP CENTER COMMON BOARD 278,000 INVESTMENT NoLLC MEMBER/OFFICER

(4) HEALTH ENTERPRISES OF IOWA COMMON BOARD 133,399 ULTRASOUND SERVICES NoMEMBER/OFFICER

(5)IOWA HEALTH SYSTEM COMMON BOARD 592,271 PERFORMANCE OF SERVICES NoCONTRACTING SERVICES LC MEMBER/OFFICER

(6) KIRKWOOD COMMUNITY COMMON BOARD 155,608 RENT, CONTINUING NoCOLLEGE MEMBER/OFFICER EDUCATION, TRAINING

ROOMS/PROGRAMS

(7) MEDICAL LABORATORIES OF COMMON BOARD 1,758,000 INVESTMENT, PURCHASED NoEASTERN IOWA LC MEMBER/OFFICER SERVICES

(8) MR ASSOCIATES LLP COMMON BOARD 5,704,000 RENT, PAYROLL NoMEMBER/OFFICER SERVICES/BENEFITS,

SUPPLIES, IT LAUNDRY, ETC

(9) PCI LENDER LLC COMMON BOARD 242,034 INVESTMENT NoMEMBER/OFFICER

(10) PCI REGIONAL MEDICAL MALL COMMON BOARD 669,973 INVESTMENT AND RENT NoLLC MEMBER/OFFICER

(11) PHYSICIANS CLINIC OF IOWA COMMON BOARD 423,142 MEDICAL DIRECTOR AND NoPC MEMBER/OFFICER OTHER

(12) ST LUKE'S DEVELOPMENT COMMON BOARD 776,000 RENT, MANAGEMENT FEES, NoCOMPANY MEMBER/OFFICER LEASED EMPLOYEES,

SUPPLIES, ETC

(13) ST LUKE'S - COE STEAM INC COMMON BOARD 1,016,814 PERFORMANCE OF SERVICES NoMEMBER/OFFICER

(14)THE OUTPATIENT SURGERY COMMON BOARD 6,872,000 INVESTMENT, RENT, NoCENTER OF CEDAR RAPIDS LLC MEMBER/OFFICER/KEY PAYROLL

EMPLOYEE SERVICES/BENEFITS,SUPPLIES, INFORMATIONTECHNOLOGY, LAUNDRY,MAINTENANCE, ETC


SCHEDULE 0OMB No 1545 0047

(Form 990 or 990-EZ) Supplemental Information to Form 990 or 990-EZ2012

Department of the Treasury Complete to provide information for responses to specific questions onForm 990 or to provide any additional information . Open

Internal Revenue Service1- Attach to Form 990 or 990-EZ. Inspection



FORM 990, PART VI,SECTION A, LINE 2

JAMES HOFFMAN, THEODORE TOWNSEND, BUSINESS RELATIONSHIP JAMES HOFFMAN, MARCIAROGERS, BUSINESS RELATIONSHIP CHRIS LINDELL, AMY REASNER, BUSINESS RELATIONSHIP


FORM 990, PART VI, SECTION A, LINE6

ST LUKES HEALTHCARE, A TAX-EXEMPT IOWA NONPROFIT CORPORATION, IS SOLEMEMBER

Identifier ReturnReference

Explanation

FORM 990, PART IOWA HEALTH SYSTEM, AS SOLE MEMBER OF ST LUKES HEALTHCARE, APPROVES APPOINTMENT OFVI, SECTION A, BOARD OF DIRECTORS, APPROVES AMENDMENTS TO ARTICLES AND BYLAWS, APPROVES STRATEGICLINE 7B AND BUSINESS PLAN, SELECTION AND REMOVAL OF CEO, APPROVES INCURRED INDEBTEDNESS,

APPROVES MANAGED CARE STRATEGY, APPROVES TRANSFER OF ASSETS, MERGER, ACQUISITION ANDDISSOLUTIONS, BUDGETS, AND SIGNIFICANT CORPORATE TRANSACTIONS


Explanation

FORM 990, THE FORM 990 IS PREPARED INTERNALLY BY THE IOWA HEALTH SYSTEM TAX DEPARTMENT USINGPART VI, INFORMATION GATHERED FROM VARIOUS FUNCTIONAL AREAS OF THE ORGANIZATION EACH SECTION OFSECTION B, THE RETURN IS REVIEWED BY THE RESPONSIBLE FUNCTIONAL AREA ALONG WITH THE TAX DEPARTMENT ALINE 11 DRAFT COPY OF THE RETURN IS PROVIDED TO THE CFO FOR REVIEW A SUBCOMMITTEE OF THE BOARD

REVIEWS THE FORM 990 AND REPORTS BACK TO THE FULL BOARD A FULL COPY OF THE FORM 990 ISPROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS


Explanation

FORM 990, THE ORGANIZATION HAS A CONFLICT OF INTEREST POLICY ANNUALLY ALL OFFICERS, DIRECTORS, KEYPART VI, EMPLOYEES AND REPORTING PHYSICIANS ARE REQUESTED TO COMPLETE A QUESTIONNAIRE TO REPORTSECTION B, POTENTIAL CONFLICTS OF INTEREST PERSONS WHO HAVE NOT RETURNED QUESTIONNAIRES ARE CONTACTEDLINE 12C ADDITIONAL TIMES IN AN EFFORT TO RECEIVE COMPLETE AND ACCURATE RESPONSES FROM ALL PERSONS THE

ANNUAL QUESTIONNAIRES INCLUDE AN ACKNOWLEDGEMENT THAT THE OFFICER, DIRECTOR, KEY EMPLOYEE ORREPORTING PHYSICIAN 1) HAS ACCESS TO A COPY OF THE CONFLICT OF INTEREST POLICY, 2) HAS READ ANDUNDERSTANDS THE POLICY, 3) AGREES TO COMPLY WITH THE POLICY, 4) UNDERSTANDS THAT THE POLICYAPPLIES TO ALL COMMITTEES AND SUBCOMMITTEES HAVING BOARD-DELEGATED POWERS, AND 5)UNDERSTANDS THAT THE ORGANIZATION IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAINITS TAX-EXEMPT STATUS, IT MUST CONTINUOUSLY ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONEOR MORE OF ITS TAX-EXEMPT PURPOSES SENIOR ADMINISTRATIVE STAFF AT ALL RELATED ORGANIZATIONSPROVIDE INFORMATION TO A CENTRAL COORDINATOR RELATED TO THE IDENTIFICATION OF WHICH INDIVIDUALSSHOULD RECEIVE THE QUESTIONNAIRE FOR COMPLETION THE RESULTS ARE COMPILED CENTRALLY ANDREVIEWED BY THE IOWA HEALTH SYSTEM COMPLIANCE OFFICER AND DIRECTOR OF INTERNAL AUDIT THEDETAIL RESULTS ARE REPORTED TO A COMMITTEE OF THE SYSTEM BOARD THE RESULTS RELATED TO SPECIFICREGIONAL PARENT COMPANIES, THEIR HOSPITALS AND RELATED ORGANIZATIONS, ARE DISTRIBUTED IN DETAILTO THE CHAIRPERSON OF THE REGIONAL PARENT ORGANIZATION, THE CHIEF EXECUTIVE OFFICER, CHIEFFINANCIAL OFFICER AND COMPLIANCE MANAGER THESE INDIVIDUALS ARE ALSO REMINDED OF THEAPPROPRIATE PROCESS TO BE FOLLOWED DURING THE YEAR TO ADDRESS POTENTIAL CONFLICTS OF INTERESTTHAT RELATE TO MATTERS THAT ARE BROUGHT TO THE BOARD OF DIRECTORS FOR ACTION THE INFORMATIONDISCLOSED IS USED TO IDENTIFY POTENTIAL CONFLICTS OF INTEREST AND TO ASSIST IN COMPLETING IRS ANDMEDICAID QUESTIONNAIRES ANY DUALITY OF INTEREST OR POSSIBLE CONFLICT OF INTEREST ON THE PART OFANY ORGANIZATIONAL OFFICER, DIRECTOR, KEY EMPLOYEE OR REPORTING PHYSICIAN TOGETHER WITH ALLMATERIAL FACTS, SHOULD BE DISCLOSED TO THE BOARD OF DIRECTORS AND MADE A MATTER OF RECORD,EITHER THROUGH AN ANNUAL PROCEDURE OR WHEN THE INTEREST OCCURS OR BECOMES A MATTER OFBOARD ACTION ANY ORGANIZATIONAL OFFICER, DIRECTOR, KEY EMPLOYEE OR REPORTING PHYSICIANHAVING A CONFLICT OF INTEREST IN ANY MATTER SHOULD NOT BE PRESENT DURING GENERAL DISCUSSIONNOR VOTE OR USE HIS OR HER PERSONAL INFLUENCE ON THE MATTER, AND HE OR SHE SHOULD NOT BECOUNTED IN DETERMINING THE EXISTENCE OF A QUORUM FOR PURPOSES OF THE MATTER OR ITEM AS TO WHICHA CONFLICT EXISTS THE BOARD SHOULD EXCLUDE THE INDIVIDUAL FROM ANY DISCUSSION OR VOTE IN WHICHTHE BOARD DECIDES WHETHER OR NOT A CONFLICT OF INTEREST EXISTS IN CASES IN WHICH AN OFFICER,DIRECTOR, KEY EMPLOYEE, REPORTING PHYSICIAN OR THE INDIVIDUAL'S HOUSEHOLD MEMBER HAS A CONFLICTOF INTEREST IN AN ARRANGEMENT OR TRANSACTION, THE FOLLOWING ADDITIONAL STEPS MAY BE TAKEN ATTHE DIRECTION OF THE BOARD OF DIRECTORS 1) AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALLMATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE OR SHE SHALL LEAVE THEBOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED ANDVOTED UPON THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL 1) DECIDE IF A CONFLICT OF INTERESTEXISTS, 2) A DISINTERESTED PERSON OR COMMITTEE MAY BE APPOINTED TO INVESTIGATE ALTERNATIVES TOTHE PROPOSED ARRANGEMENT OR TRANSACTION, 3) IN ORDER TO APPROVE THE ARRANGEMENT ORTRANSACTION, THE BOARD MUST FIRST FIND, BY MAJORITY VOTE OF DISINTERESTED MEMBERS, THAT THEARRANGEMENT OR TRANSACTION IS IN THE ORGANIZATION'S BEST INTEREST, IS FAIR AND REASONABLE TOTHE ORGANIZATION, AND, AFTER REASONABLE INVESTIGATION, THE DISINTERESTED MEMBERS HAVEDETERMINED THAT A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT CANNOT BE OBTAINED WITHREASONABLE EFFORTS UNDER THE CIRCUMSTANCES, THE MINUTES OF THE BOARD AND ALL COMMITTEES WITHBOARD-DELEGATED POWERS SHALL CONTAIN 1) THE NAMES OF THE PERSONS WHO DISCLOSED OROTHERWISE WERE FOUND TO HAVE A FINANCIAL INTEREST IN CONNECTION WITH AN ACTUAL OR POSSIBLECONFLICT OF INTEREST, THE NATURE OF THE FINANCIAL INTEREST, ANY ACTION TAKEN TO DETERMINE WHETHERA CONFLICT OF INTEREST WAS PRESENT, AND THE BOARD'S OR COMMITTEES DECISION AS TO WHETHER ACONFLICT OF INTEREST IN FACT EXISTED, 2) THE NAMES OF THE PERSONS WHO WERE PRESENT FORDISCUSSIONS AND VOTES RELATING TO THE TRANSACTION OR ARRANGEMENT, THE CONTENT OF THEDISCUSSION, INCLUDING ANY ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, AND ARECORD OF ANY VOTES TAKEN IN CONNECTION THEREWITH, IN ORDER TO PROTECT THE ORGANIZATION'S BESTINTERESTS, APPROPRIATE DISCIPLINARY ACTION MAY BE TAKEN WITH RESPECT TO AN OFFICER, DIRECTOR, KEYEMPLOYEE OR REPORTING PHYSICIAN WHO VIOLATES THE CONFLICT OF INTEREST POLICY


Explanation

FORM 990, THE EXECUTIVE COMMITTEE OF THE IOWA HEALTH SYSTEM BOARD OF DIRECTORS ("COMMITTEE') CONDUCTS APART VI, COMPREHENSIVE ANNUAL REVIEW OF ALL COMPENSATION AND BENEFITS PROVIDED TO THE ORGANIZATION'SSECTION B, OFFICERS AND KEY EMPLOYEES, INCLUDING THE IHS CHIEF EXECUTIVE OFFICER (THE "CEO") THIS ANNUALLINE 15 REVIEW COMPARES THE TOTAL COMPENSATION AND VALUE OF BENEFITS PROVIDED TO EACH EXECUTIVE, ON

A POSITION BY POSITION BASIS, TO THAT PROVIDED TO FUNCTIONALLY SIMILAR POSITIONS IN SIMILARLYSITUATED ORGANIZATIONS THIS REVIEW IS CONDUCTED BY THE COMMITTEE WITH THE ASSISTANCE OF ANATIONAL, INDEPENDENT COMPENSATION CONSULTANT REPORTING DIRECTLY TO THE COMMITTEE THECOMMITTEE HAS BEEN DELEGATED THE RESPONSIBILITY FOR OVERSIGHT OF EXECUTIVE COMPENSATION AND ISMADE UP ENTIRELY OF INDEPENDENT DIRECTORS WITHIN THE MEANING OF THE "REBUTTABLE PRESUMPTION OFREASONABLENESS" UNDER THE FEDERAL INCOME TAX INTERMEDIATE SANCTIONS RULES THE COMPENSATIONCONSULTANT HOLDS ITSELF OUT TO THE PUBLIC AS A COMPENSATION CONSULTANT, PERFORMS THESEVALUATIONS ON A REGULAR BASIS, IS QUALIFIED TO MAKE THE VALUATIONS OF THE SERVICES INVOLVED,AND HAS SO INDICATED IN A WRITTEN CERTIFICATION TO THE COMMITTEE BASED UPON THE ADVICE OF THECOMPENSATION CONSULTANT, AND APPLY ING THE BOARDS COMPENSATION PHILOSOPHY, THE COMMITTEEESTABLISHES THE OVERALL ADJUSTMENT IN COMPENSATION AND BENEFITS FOR APPROXIMATELY THE TOPFIFTY EXECUTIVES IN THE ENTIRE HEALTH SYSTEM (SEVERAL OF WHICH ARE EMPLOYEES OF THE FILINGORGANIZATION) AND DELEGATES TO THE CEO THE AUTHORITY TO MAKE ADJUSTMENTS, CONSISTENT WITH THECOMMITTEES DIRECTION, FOR THE OTHER EXECUTIVES THE COMMITTEE DETERMINES ALL ASPECTS OF THECOMPENSATION AND BENEFITS OF THE CEO THE COMMITTEE INTENTIONALLY TAKES ALL THE STEPSNECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERALINCOME TAX LAW INTERMEDIATE SANCTIONS RULES, INCLUDING CONTEMPORANEOUS SUBSTANTIATION OF ALLCOMMITTEE MEETINGS AND ACTIONS THE ORGANIZATION BELIEVES IT IS IN FULL COMPLIANCE WITH SECTION4958 OF THE IRC, PROVIDES NO MORE THAN REASONABLE AND FAIR MARKET VALUE COMPENSATION ANDBENEFITS FOR ITS EMPLOYEES AND DOES NOT PROVIDE ANY EXCESS COMPENSATION OR BENEFITS ASPROHIBITED BY SECTION 4958 THE ANNUAL REVIEW OF COMPENSATION AND BENEFITS WAS LAST PERFORMEDIN DECEMBER 2012 FOR THE FOLLOWING INDIVIDUALS MILTON AUNAN II, MICHELLE NIERMANN, MARY ANNOSBORN, JOHN SHEEHAN, AND THEODORE TOWNSEND, JR THE COMPENSATION AND BENEFITS OF THE OTHERPERSONS LISTED ON FORM 990, PART VII WAS ESTABLISHED BY AN INDEPENDENT PERSON/COMMITTEE USINGAN INDEPENDENT COMPENSATION CONSULTANT AND/OR COMPENSATION SURVEY OR STUDY FOR SIMILARLYQUALIFED PERSONS IN FUNCTIONALLY COMPARABLE POSITIONS AT SIMILARLY SITUATED ORGANIZATIONSCOMPENSATION AND BENEFITS ARE BASED ON THE FAIR MARKET VALUE OF THE SERVICES PROVIDED TO THEORGANIZATION


Explanation

FORM 990, IOWA HEALTH SYSTEM, OUR PARENT ORGANIZATION, HAS VOLUNTARILY ADOPTED MANY OF OURPART VI, INDUSTRY'S GOVERNANCE "BEST PRACTICES " IOWA HEALTH SYSTEM HAS DONE SO TO FURTHER ASSURESECTION C, OUR STAKEHOLDERS THAT OUR GOVERNANCE AND MANAGEMENT IS CONDUCTED RESPONSIBLY ANDLINE 19 WARRANTS THE TRUST YOU PLACE IN US IN SEPTEMBER 2003, THE IOWA HEALTH SYSTEM BOARD OF

DIRECTORS VOLUNTARILY ADOPTED OVER 40 CHANGES TO ITS GOVERNANCE STRUCTURE TO BETTERCOMPLY WITH GOVERNANCE BEST PRACTICES AND THE INTENT AND APPLICABLE REQUIREMENTS OF THESARBANES-OXLEY ACT OF 2003 IN ADDITION, GOVERNANCE POLICIES AND RELATED INFORMATION HAS BEENADDED TO THE IOWA HEALTH SYSTEM WEBSITE, WWW UNITYPOINT ORG, INCLUDING BUT NOT LIMITED TOOVER 130 CORPORATE COMPLIANCE POLICIES, INCLUDING CHARITY CARE AND CONFLICTS OF INTERESTPOLICIES, GOVERNANCE BEST PRACTICE POLICIES, THE IDENTIFICATION OF BOARD MEMBERS AND BOARDCOMMITTEES, COMPENSATION FOR HOSPITAL CEO'S, AND FINANCIAL INFORMATION FOR THE PAST SEVENYEARS


CHANGES IN NET ASSETS ORFUND BALANCES

FORM 990, PART XI,

LINE 9

CHANGE IN BENEFICIAL INTEREST OF ST LUKES HEALTH CARE FOUNDATION5,375,736 CHANGES IN PENSION LIABILITY -891,126

jefile GRAPHIC print - DO NOT PROCESS

SCHEDULE R(Form 990)



As Filed Data -

Related Organizations and Unrelated Partnerships

1- Complete if the organization answered "Yes" to Form 990, Part IV, line 33, 34, 35, 36, or 37.1- Attach to Form 990. 1- See separate instructions.

DLN:93493318001183

OMB No 1545-0047

2012


42-0504780

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

(a)Name, address, and EIN (if applicable) of disregarded entity

(b)Primary activity

(c)Legal domicile (stateor foreign country)

(d)Total income

(e)End-of-year assets

(f)Direct controlling

entity

(1) CARDIOLOGISTS LC1026 A AVE NECEDAR RAPIDS, IA 5240227-1095420

CARDIOLOGY SERVICES IA ST LUKE'S METHODIST HOSPITAL

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

(a)Name, address, and EIN of related organization

(b)Primary activity

( c)Legal domicile (stateor 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?

Yes No


For Paperwork Reduction Act Notice, see the Instructions for Form 990. Cat No 50135Y Schedule R (Form 990) 2012

Schedule R (Form 990) 2012 Page 2

Identification of Related Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to Form 990, Part IV, line 34because 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 orforeigncountry)

(d)Direct

controllingentity

(e)Predominant

income(related,unrelated,

excluded fromtax under

sections 512-514)

(f)Share of

total income

(g)Share of

end-of-yearassets

(h)Disproprtionateallocations?

(i)Code V-UBIamount in box

20 ofSchedule K-1(Form 1065)

U)General ormanagingpartner?

(k)Percentageownership

Yes No Yes No


Identification of Related Organizations Taxable as a Corporation or Trust (Complete if the organization answered "Yes" to 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, Scorp,

or trust)

(f)Share of total

income

(g)Share of end-

of-yearassets

(h)Percentageownership

(i)Section 512

(b)(13)controlledentity?

Yes No


Schedule R (Form 990) 2012


ff^ Transactions With Related Organizations (Complete if the organization answered "Yes" to 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

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

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

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

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

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

e Loans or loan guarantees by related organization(s)

f Dividends from related organization(s)

g Sale of assets to related organization(s)

h Purchase of assets from related organization(s)

i Exchange of assets with related organization(s)

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

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

I 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)

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

o Sharing of paid employees with related organization(s)

p Reimbursement paid to related organization(s) for expenses

q Reimbursement paid by related organization(s) for expenses

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

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

Page 3

YesFNo

la No

lb Yes

1c Yes

ld Yes

le Yes

if No

1g No

1h No

li No

1j Yes

1k No

11 Yes

1m Yes

in Yes

to Yes

1p Yes

1q Yes

lr Yes

is Yes

2 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 other organization

(b)Transactiontype (a-s)

(c)Amount involved

(d)Method of determining amount involved

(1) STL HEALTH RESOURCES E 71,000 BASED ON GAAP, CASH, AND/OR FMV



Unrelated Organizations Taxable as a Partnership (Complete if the organization answered "Yes" to 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 grossrevenue) 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 orforeigncountry)

(d)Predominant

income(related,unrelated,

excluded fromtax under

section 512-

(e)Are all partners

section501(c)(3)

organizations?

(f)Share of

totalincome

(g)Share of

end-of-yearassets

(h)Disproprtionateallocations?

(i)Code V-UBIamount inbox 20

of ScheduleK-1

(Form 1065)

U)General ormanagingpart ner?

(k)Percentageownership

514)Yes No Yes No Yes No



Supplemental Information

Complete this Dart to provide additional information for responses to auestions on Schedule R (see instructions


Additional Data

Software ID:

Software Version:

EIN: 42 -0504780


Form 990, Schedule R, Part II - Identification of Related Tax-Exempt Organizations

Return to Form

(c) 9(d) (e) Section 512

(a) (b) Legal Domicile(f)

Name, address , and EIN of related organization Primary Activity (StateExempt Code Public charity

Direct Controlling(b)(13)

or Foreignsection status

Entitycontrolled

C ountry)(if501( c)(3)) organization

ALLEN COLLEGE EDUCATE AND IA 501(C)(3) 170(B)(1) (A)(II) ALLEN HEALTH NoDEVELOP HEALTHCARE SYSTEMS INC

1825 LOGAN AVENUE PROFESSIONALSWATERLOO, IA 5070342-1351526

ALLEN HEALTH SYSTEMS INC SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH SYSTEM NoMISSION TO IMPROVE II

1825 LOGAN AVENUE HEALTH CAREWATERLOO, IA 5070342-1201924

ALLEN MEMORIAL HOSPITAL CORPORATION HOSPITAL IA 501(C)(3) 170(8)(1) (A) ALLEN HEALTH No(III) SYSTEMS INC

1825 LOGAN AVENUEWATERLOO, IA 5070342-0698265

ANAMOSA AREA AMBULANCE SERVICE PROVIDE AMBULANCE IA 501(C)(3) 509(A)(2) ST LUKE'SJONES NoSERVICES REGIONAL MEDICAL

101 GRANT WOOD DRIVE CENTERANAMOSA, IA 5220542-1466284

CENTRAL IOWA HEALTH PROPERTIES CORPORATION PROPERTY HOLDING IA 501(C)(2) CENTRAL IOWA NoCOMPANY HEALTH SYSTEM

1200 PLEASANT STREETDES MOINES, IA 5030942-1233759

CENTRAL IOWA HEALTH SYSTEM SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH SYSTEM NoMISSION TO IMPROVE II

1200 PLEASANT STREET HEALTH CAREDES MOINES, IA 5030942-1189791

CENTRAL IOWA HOSPITAL CORPORATION HOSPITAL IA 501(C)(3) 170(8)(1) (A) CENTRAL IOWA No(III) HEALTH SYSTEM

1200 PLEASANT STREETDES MOINES, IA 5030942-0680452

FINLEY TRI-STATES HEALTH GROUP INC SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH SYSTEM NoMISSION TO IMPROVE II

350 NORTH GRANDVIEWAVENUE HEALTH CAREDUBUQUE, IA 5200142-1307495

HNC SERVICES SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(2) IOWA HEALTH SYSTEM NoMISSION TO IMPROVE

1776 WEST LAKES PKWY 400 HEALTH CAREWEST DES MOINES, IA 5026627-0987243

INTRUST HOME HEALTH CARE IA 501(C)(3) 509(A)(2) IOWA HEALTH SYSTEM No

11333 AURORA AVENUEURBANDALE, IA 5032242-1477471

IOWA HEALTH FOUNDATION CHARITABLE IA 501(C)(3) 509(A)(3),TYPE CENTRAL IOWA NoFUNDRAISING III HEALTH SYSTEM

1415 WOODLAND AVE SUITE E-200DES MOINES, IA 5030942-1467682

IOWA HEALTH SYSTEM SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE NoMISSION TO IMPROVE III

1776 WEST LAKES PKWY 400 HEALTH CAREWEST DES MOINES, IA 5026642-1435199

IOWA PHYSICIANS CLINIC MEDICAL FOUNDATION PRIMARY HEALTH CARE IA 501(C)(3) 170(8)(1) (A) IOWA HEALTH SYSTEM NoSERVICES (III)

8101 BIRCHWOOD COURTJOHNSTON, IA 5013142-1411630

MEMORIAL FOUNDATION OF ALLEN HOSPITAL CHARITABLE IA 501(C)(3) 170(8)(1) (A) ALLEN HEALTH NoFUNDRAISING (VI) SYSTEMS INC

1825 LOGAN AVENUEWATERLOO, IA 5070342-1201138

METHODIST HEALTH SERVICES CORPORATION HEALTHCARE IL 501(C)(3) 509(A)(3),TYPE IOWA HEALTH SYSTEM NoIII

221 NORTHEAST GLEN OAK AVENUEPEORIA, IL 6163637-1111135

METHODIST MEDICAL CENTER FOUNDATION FUNDRAISING IL 501(C)(3) 170(B)(1) (A) METHODIST HEALTH No(VI) SERVICES

221 NORTHEAST GLEN OAK AVENUE CORPORATIONPEORIA, IL 6163651-0186460

METHODIST MEDICAL CENTER OF ILLINOIS HEALTHCARE IL 501(C)(3) 170(B)(1) (A) METHODIST HEALTH No(III) SERVICES


METHODIST SERVICES INC OFFICE RENTAL IL 501(C)(3) 509(A)(2) METHODIST HEALTH NoSERVICES


NELLIE R SHERWOOD TRUST PAY MEDICAL BILLS OF IA 501(C)(3) 509(A)(3),TYPE ST LUKE'S METHODIST YesRETIRED TEACHERS I HOSPITAL

1026 A AVENUE NE UNABLE TO PAYCEDAR RAPIDS, IA 5240242-6061621

NORTH CENTRAL IOWA MENTAL HEALTH CENTER MENTAL HEALTH CARE IA 501(C)(3) 170(B)(1) (A) TRINITY HEALTH NoINCORPORATED (III) SYSTEMS INC

720 KENYON DRIVEFORT DODGE, IA 5050142-0937390

Form 990. Schedule R. Part II - Identification of Related Tax-Exemut Organizations

(c) 9(a) (b) Legal Domicile (

d) (e) (f) Section 512

Name, address , and EIN of related organization Primary Activity (StateExempt Code Public charity Direct Controlling

(b)(13)

or Foreignsection status Entity

controlled

C ountry) (if 501 (c)(3)) organization

NORTHWEST IOWA HOSPITAL CORPORATION HOSPITAL IA 501(C)(3) 170(B)(1) (A) IOWA HEALTH No(III) SYSTEM

2720 STONE PARK BLVDSIOUX CITY, IA 5110442-1019872

SELF INSURANCE TRUST AGREEMENT EST BY FUND SELF-INSURANCE IL 501(C)(3) 509(A)(3),TYPE METHODIST NoMETHODIST MEDICAL CENTER OF ILLINOIS PLAN I MEDICAL CENER OF

ILLINOIS221 NORTHEAST GLEN OAK AVENUEPEORIA, IL 6163637-6181831

SIOUXLAND PACE INC ALL-INCLUSIVE CARE IA 501(C)(3) 170(B)(1) (A) ST LUKE'S HEALTH NoFOR THE ELDERLY (III) SYSTEM INC

313 COOK STREETSIOUX CITY, IA 5110326-1120134

ST LUKE'S HEALTH RESOURCES OUTPATIENT CLINICS IA 501(C)(3) 509(A)(2) ST LUKE'S HEALTH NoAND HEALTHCARE SYSTEM INC

2720 STONE PARK BLVD SERVICESSIOUX CITY, IA 5110442-1059182

ST LUKE'S HEALTH SYSTEM INC SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH NoMISSION TO IMPROVE III SYSTEM

2720 STONE PARK BLVD HEALTH CARESIOUX CITY, IA 5110442-1294091

ST LUKE'S HEALTHCARE SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH NoMISSION TO IMPROVE II SYSTEM

1026 A AVENUE NE HEALTH CARECEDAR RAPIDS, IA 5240242-1487968

ST LUKE'S METHODIST HOSPITAL HOSPITAL IA 501(C)(3) 170(B)(1) (A) ST LUKE'S No(III) HEALTHCARE

1026 A AVENUE NECEDAR RAPIDS, IA 5240242-0504780

ST LUKE'SJONES REGIONAL MEDICAL CENTER HOSPITAL IA 501(C)(3) 170(B)(1) (A) ST LUKE'S No(III) HEALTHCARE

1795 HIGHWAY 64 EASTANAMOSA, IA 5220542-1487967

STL CARE COMPANY IMPROVE PUBLIC IA 501(C)(3) 509(A)(2) ST LUKE'S NoHEALTH SERVICES HEALTHCARE

1026 A AVENUE NECEDAR RAPIDS, IA 5240242-1276632

THE DUBUQUE VISITING NURSE ASSOCIATION PUBLIC HEALTH IA 501(C)(3) 509(A)(2) FINLEY TRI-STATES NoSERVICES/HOME CARE HEALTH GROUP INC

350 NORTH GRANDVIEWAVENUEDUBUQUE, IA 5200142-0680410

THE FINLEY HOSPITAL HOSPITAL IA 501(C)(3) 170(B)(1) (A) FINLEY TRI-STATES No(III) HEALTH GROUP INC

350 NORTH GRANDVIEWAVENUEDUBUQUE, IA 5200142-0680354

THE ROBERT YOUNG CENTER FOR COMMUNITY MENTAL MENTAL HEALTH CARE IL 501(C)(3) 170(8)(1) (A)(VI) TRINITY REGIONAL NoHEALTH HEALTH SYSTEM

2701 17TH STREETROCK ISLAND, IL 6120136-3678909

TRIMARK PHYSICIANS GROUP SUPPORT SERVICES IA 501(C)(3) 170(8)(1) (A) TRINITY HEALTH NoFOR MEDICAL CARE (III) SYSTEMS INC

802 KENYON ROAD AND HEALTH SERVICESFORT DODGE, IA 5050145-3791448

TRINITY BUILDING CORPORATION PROPERTY HOLDING IA 501(C)(2) TRINITY HEALTH NoCOMPANY SYSTEMS INC

802 KENYON ROADFORT DODGE, IA 5050142-1376187

TRINITY HEALTH FOUNDATION CHARITABLE IA 501(C)(3) 170(B)(1)(A)(VI) TRINITY HEALTH NoFUNDRAISING SYSTEMS INC


TRINITY HEALTH FOUNDATION CHARITABLE IL 501(C)(3) 170(B)(1)(A)(VI) TRINITY REGIONAL NoFUNDRAISING HEALTH SYSTEM


TRINITY HEALTH SYSTEMS INC SUPPORT AFFILIATES' IA 501(C)(3) 509(A)(3),TYPE IOWA HEALTH NoMISSION TO IMPROVE II SYSTEM

802 KENYON ROAD HEALTH CAREFORT DODGE, IA 5050142-1222877

TRINITY MEDICAL CENTER HOSPITAL IL 501(C)(3) 170(B)(1) (A) TRINITY REGIONAL No(III) HEALTH SYSTEM


TRINITY REGIONAL HEALTH SYSTEM SUPPORT AFFILIATES' IL 501(C)(3) 509(A)(3),TYPE IOWA HEALTH NoMISSION TO IMPROVE II SYSTEM

2701 17TH STREET HEALTH CAREROCK ISLAND, IL 6120136-3351952

TRINITY REGIONAL HOSPITAL AUXILIARY CHARITABLE IA 501(C)(3) 509(A)(2) TRINITY REGIONAL NoFUNDRAISING AND MEDICAL CENTER

802 KENYON ROAD VOLUNTEER SERVICESFORT DODGE, IA 5050142-6081474

Form 990, Schedule R, Part II - Identification of Related Tax-Exempt Organizations

(c) 9(a) (b) Legal Domicile (d) (e) (f) Section 512

Name, address , and EIN of related organization Primary Activity (StateExempt Code Public charity (b)(13)

Direct Controllingor Foreign

section status controlledEntity

Country) (if 501( c)(3)) organization

TRINITY REGIONAL MEDICAL CENTER HOSPITAL IA 501(C)(3) 170(B)(1) (A)(III) TRINITY HEALTH NoSYSTEMS INC


UNITY HEALTHCARE HOSPITAL IA 501(C)(3) 170(8)(1) (A)(III) TRINITY REGIONAL NoHEALTH SYSTEM

1518 MULBERRY AVENUEMUSCATINE, IA 5276142-0680337

UNITY HEALTHCARE FOUNDATION SUPPORT IA 501(C)(3) 509(A)(3),TYPE I TRINITY REGIONAL NoAFFILIATES' HEALTH SYSTEM

1518 MULBERRY AVENUE MISSION TOMUSCATINE, IA 52761 IMPROVE HEALTH42-1525031 CARE

Form 990, Schedule R, Part III - Identifi cation of Related Or anizations Taxable as a Partnership

(c) (e) (h) (])

(a) (b)Legal (d) Predominant (f) (g) Disproprtionate (i) General

(k)

Name address and EIN of Primary activityDomicile Direct income Share of total Share of end- allocations? Code V-UBI or

PercentaPercentage, ,related organization

(State Controlling (related, income of-year assets amount on Managingownership

or Entity unrelated, Box 20 of K-1 Partner?

Foreign excluded fromCountry) tax under

sections512-514) Yes No Yes No

ALLEN MEMORIAL ORTHOPEDIC IA ALLEN RELATED 126,185 43,766 No Yes 20 000 %HOSPITAL MANAGEMENT & MEMORIALORTHOPEDIC CO- ADMINISTRATIVE HOSPITALMANAGEMENT CO LLC SERVICES CORPORATION

1825 LOGAN AVEWATERLOO, IA 5070345-3237125

CENTRAL IOWA CARDIOVASCULAR IA CENTRAL RELATED 261,340 80,230 No Yes 20 000 %CARDIOVASCULAR CO- MANAGEMENT & IOWAMANAGEMENT CO LLC ADMINISTRATIVE HOSPITAL

SERVICES CORPORATION1200 PLEASANT STDES MOINES, IA 5030927-3625869

CENTRAL IOWA ONCOLOGY IA CENTRAL RELATED 201,563 101,327 No Yes 20 000 %ONCOLOGY CO- MANAGEMENT & IOWAMANAGEMENT ADMINISTRATIVE HOSPITALCOMPANY SERVICES CORPORATION

1200 PLEASANTSTREETDES MOINES, IA 5030945-3017991

DES MOINES PARKING PARKING DECK IA CENTRAL RELATED 1,033,046 No Yes 100 000ASSOCIATES OPERATIONS IOWA %

HEALTH1200 PLEASANT ST PROP CORPDES MOINES, IA 5030938-2622972

DUBUQUE ENDOSCOPY AMBULATORY IA THE FINLEY RELATED 636,788 274,391 No No 51 000 %CENTER LC SURGERY CENTER HOSPITAL

1515 DELHI STREETSUITE 500DUBUQUE, IA 5200120-1597161

ENSEVA - HIAWATHA COLLOCATION IA IOWA RELATED -150,730 2,077,107 No No 52 000 %LLC FACILITY HEALTH

SYSTEM755 METZGER DRIVEHIAWATHA, IA 5223345-3437363

FINLEY DEPT OF SURGERY IA THE FINLEY RELATED 110,302 155,255 No Yes 50 000 %SURGERY CO-MGMT CO DEPARTMENT HOSPITALLLC MANAGEMENT

SERVICES350 N GRANDVIEWAVEDUBUQUE, IA 5200142-2808785

HEALTH CARE PROVIDE ACCESS IA THE FINLEY RELATED 14,037 No Yes 50 000 %AFFILIATES OFTHE TO LICENSED HOSPITALTRI-STATES LLC SOFTWARE

350 N GRANDVIEWAVEDUBUQUE, IA 5200142-1428503

HEALTH ENTERPRISES INVESTMENT IA N/A UNRELATED 85,147 837,296 No 70,249 No 55 670 %VENTURES LC VEHICLE OWNING

CLINICAL JVS4250 GLASS ROAD NECEDAR RAPIDS, IA5240239-1894290

HY-VEEIOWA HEALTH PRIMARY CARE IA CENTRAL RELATED -186,843 186,116 No Yes 50 000 %LC CLINIC IOWA

HOSPITAL5820 WESTOWN CORPORATIONPARKWAYWEST DES MOINES, IA5026626-3293530

IOWA HEALTH SYSTEM GROUP IA IOWA RELATED 3,278,657 7,072,097 Yes Yes 100 000CONTRACTING PURCHASING HEALTH %SERVICESLC SYSTEM

1776 WEST LAKES PKWY400WEST DES MOINES, IA5026642-1511142

MEDICAL MEDICAL IA ST LUKE'S RELATED 466,410 1,180,716 No Yes 50 000 %LABORATORIES OF LABORATORY METHODISTEASTERN IOWA LC SERVICES HOSPITAL

1026 A AVE NECEDAR RAPIDS, IA5240242-1359640

MMCI ORTHOPEDIC ORTHOPEDIC IL METHODIST RELATED 32,000 No Yes 20 000 %CO-MANAGEMENT MANAGEMENT & MEDICALCOMPANY LLC ADMINISTRATIVE CENTER OF

SERVICES ILLINOIS221 NE GLEN OAK AVEPEORIA, IL 6163646-1219459

MR ASSOCIATES LLP OWN AND OPERATE IA ST LUKE'S RELATED 2,526,085 1,348,049 No Yes 33 330 %MR UNIT METHODIST

1455 SHERMAN ROAD HOSPITALHIAWATHA, IA 5223342-1260463

REHABILITATION REHABILATION IL METHODIST RELATED 323,118 1,122,254 No No 60 040 %THERAPY SERVICES LLC THERAPY MEDICAL

CENTER OF416 ST MARKS CT 110 ILLINOISPEORIA, IL 6160381-0584193

Form 990. Schedule R. Part III - Identification of Related Organizations Taxable as a Partnershiu

(c) (e) (h) (])

(a) (b)Legal (d) Predominant ( f) (g) Disproprtionate (i) General

(k)

Name address and EIN of Primary activityDomicile Direct income Share of total Share of end - allocations? Code V-UBI or

PercentaPercentage, ,related organization

(State Controlling ( related, income of-year assets amount on Managingownership

or Entity unrelated , Box 20 of K -1 Partner?

Foreign excluded fromCountry ) tax under

sections512-514 ) Yes No Yes No

SLRMC CARDIOVASCULAR IA NORTHWEST RELATED 30,396 47,646 No Yes 20 000 %CARDIOVASCULAR CO- MANAGEMENT & IOWAMANAGEMENT COMPANY ADMINISTRATIVE HOSPITALLLC SERVICES CORPORATION

2720 STONE PARK BLVDSIOUX CITY, IA 5110445-5322324

THE OUTPATIENT AMBULATORY IA ST LUKE'S RELATED 3,272,140 5,076,873 No Yes 50 000 %SURGERY CENTER OF SURGERY CENTER METHODISTCEDAR RAPIDS LLC HOSPITAL

1075 FIRST AVENUE SECEDAR RAPIDS, IA5240372-1550812

TRINITY BETTENDORF ORTHOPEDIC IA TRINITY RELATED 235,523 149,417 No Yes 50 000 %ORTHOPEDIC CO- SERVICE LINES MEDICALMANAGEMENT COMPANY ADMINISTRATIVE CENTERLLC SERVICES

4500 UTICA RIDGE RDBETTENDORF, IA 5272227-2562753

WEST HOSPITAL ORTHOPEDIC IA CENTRAL RELATED 245,617 16,245 No Yes 20 000 %ORTHOPEDIC CO- SERVICE LINES IOWAMANAGEMENT COMPANY MANAGEMENT HOSPITALLLC CORPORATION

1660 60TH STREETWEST DES MOINES, IA5026627-1414600

Form 990, Schedule R. Part IV - Identification of Related Organizations Taxable as a Corporation or Trust(a) (b) (c) (d) (e) (f) (g) (h) (i)

Name, address, and EIN of Primary activity Legal Direct Type of Share of total Share of Percentage Sectionrelated organization domicile controlling entity income end-of-year ownership 512(b)(13)

(state or foreign entity (C corp, S assets controlledcountry) corp, entity?

or trust) Yes No

BROADBAND INC INFORMATION N/A C NoTECHNOLOGY MGMT

1776 WEST LAKESPKWY 400 IAWEST DES MOINES,IA 5026627-3819741

DELHI POINT CONDO REAL ESTATE N/A C NoASSOCIATION MANAGEMENT

IA350 N GRANDVIEWDUBUQUE, IA 5200142-1467002

INTEGRATED CARE INTEGRATED AFFILIATE N/A C NoORGANIZATION CARE

1776 WEST LAKESIA

PKWY 400WEST DES MOINES,IA 5026627-4665007

IOWA HEALTH INVESTMENT N/A T NoSYSTEM 457 DEFCOMP PLAN

1776 WEST LAKES IAPKWY 400WEST DES MOINES,IA 5026642-1435199

MEDIMORE INC MANAGED CARE N/A C No

1776 WEST LAKESPKWY 400 IAWEST DES MOINES,IA 5026642-1414390

METHODIST HEALTH PHARMACY/OFFICE N/A C NoVENTURES INC STAFFING

ILPO BOX 87PEORIA, IL 6165037-1140939

METHODIST MEDICAL SERVICES N/A C NoPHYSICIANSERVICES INC


PRECEDENCE INC MANAGED MENTAL CARE N/A C No

4622 PROGRESSDRIVE STE A IADAVENPORT, IA5280737-1288604

PROVIDER RESOURCE RESOURCE N/A C NoMANAGEMENTINC MANAGEMENT


RURAL IOWA SPECIALTY PHYSICIANS N/A C NoSPECIALTY MEDICAL CAREPHYSICIANCONSORTIUM INC

IA700 E UNIVERSITYAVEDES MOINES, IA5031626-1271143

STL HEALTH PHYSICIAN OFFICE N/A C YesRESOURCES CO RENTAL

1026 A AVE NE IACEDAR RAPIDS, IA5240242-1193499

TRINITY HEALTH RETAIL DURABLE N/A C NoENTERPRISES INC MEDICAL EQUIPMENT &

PHARMACY2701 17TH ST ILROCK ISLAND, IL6120136-3320141

TRINITY PHYSICIAN MANAGED HEALTH CARE N/A C NoHOSPITALORGANIZATION LTD

4622 PROGRESS IADRIVE STE ADAVENPORT, IA5280736-3924720

Iowa Health System and Subsidiaries

Auditor's Report and Consolidated Financial Statements

December 31, 2012 and 2011

BKD LLP

CPAs & Advisors

Iowa Health System and SubsidiariesDecember 31, 2012 and 2011

Contents

Independent Auditor's Report...............................................................................................1

Consolidated Financial Statements

Balance Sheets

Statements of Operations

Statements of Changes in Net Assets

Statements of Cash Flo« s

Notes to Financial Statements

4

i

6

8

Supplementary Information

Io« a Health SN stem and Subsidiaries 55

Io«a Health - Des Moines and Subsidiaries (Des Moines) 57

Methodist Health Services Corporation and Subsidiaries (Peona) 59

Tnnitv Regional Health SN stein and Subsidiaries (Rock Island) 61

St Luke's Healthcare and Subsidiaries (Cedar Rapids) 63

Allen Health S-N stems. Inc and Subsidiaries (Waterloo) 65

St Luke's Health S-N stem. Inc (Sioux Cit-N) 67

Tnnit\ Health S-N stems. Inc and Subsidiaries (Fort Dodge) 69

FinleN Tn-States Health Group. Inc and Subsidiaries (Dubuque) 71

Balance Sheets for Affiliated Colleges 73

Statements of Operations for Affiliated Colleges 74

BKD LLP

CPAs & Advisors

1201 1hoInut S rc,t Sui(<. 1700

Kans.is ci•y, Ma 64106 7146

816 )21 6 300 Fa,. 816 )2 e5 i8 {] www bkd com

Independent Auditor's Report

Board of DirectorsIo« a Health SN stem and Subsidiaries

We have audited the accompany ing consolidated financial statements of Io« a Health SN stem and Subsid-ianes (the Health SN stem ). « hich comprise the consolidated balance sheets as of December 31. 2012and 2011 . and the related consolidated statements of operat i ons. changes i n net assets and cash flo« s forthe N ears then ended. and the related notes to the consolidated financial statements

Management 's Responsibilith for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial state-ments in accordance «tth accounting principles generallN accepted in the United States of America. thisincludes the design. implementation and maintenance of internal control relevant to the preparation andfair presentation of consolidated financial statements that are free from material misstatement. «hetherdue to fraud or error

Auditor's Responsibilith

Our responsiibiilitN is to express an opinion on these consolidated financial statements based on our auditsWe conducted our audits in accordance «iith auditing standards generall-N accepted in the United States ofAmerica Those standards require that «e plan and perform the audit to obtain reasonable assuranceabout «hether the consolidated financial statements are free from material misstatement

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures inthe consolidated financial statements The procedures selected depend on the auditor's judgment. includ-ing the assessment of the risks of material misstatement of the consolidated financial statements. «hetherdue to fraud or error In making those risk assessments. the auditor considers internal control relevant tothe entiit\ 's preparation and fair presentation of the consolidated financial statements in order to designaudit procedures that are appropriate in the circumstances. but not for the purpose of expressing an opin-ion on the effectiveness of the entitN 's internal control Accordmgl-N. «e express no such opinion Anaudit also includes evaluating the appropriateness of accounting policies used and the reasonableness ofsignificant accounting estimates made b-N management. as «ell as evaluating the overall presentation ofthe consolidated financial statements

We believe that the audit evidence «e have obtained is sufficient and appropriate to provide a basis forour audit opinion

Opinion

In our opinion. the consolidated financial statements referred to above present faiirlN. in all material re-spects. the financial position of the Health SN stem as of December 31.2012 and 2011. and the results ofits operations. the changes in its net assets and its cash flo« s for the N ears then ended in accordance «iithaccounting principles generallN accepted in the United States of America

experience SKI

Board of DirectorsIo« a Health SN stem and SubsidiariesPage 2

Supplementary Information

Our audits NN ere conducted for the purpose of forming an opinion on the consolidated financial statements asa «bole The consolidating schedules of the Health SN stem and the balance sheets and statements of opera-tions for the Colleges of Nursing «ithm the Health SNstem listed in the table of contents are presented forpurposes of additional anal sis and are not a required part of the consolidated financial statements Theconsolidating information is presented for purposes of additional anaIN sis of the consolidated financialstatements. rather than to present the financial position. changes in net assets and cash flo« s of the indi-vidual entities Such information is the responsibilitN of management and NN as derived from and relatesdirectIN to the underIN mg accounting and other records used to prepare the consolidated financial statementsThe information has been subjected to the auditing procedures applied in the audits of the consolidated fi-nancial statements and certain additional procedures. including comparing and reconciling such informationdirectIN to the underIN mg accounting and other records used to prepare the consolidated financial statementsor to the consolidated financial statements themselves. and other additional procedures in accordance «ithauditing standards generalIN accepted in the United States of America In our opinion. the information isfairIN stated in all material respects in relation to the consolidated financial statements as a NN hole

Kansas CitN. MissouriApril 25. 2013

Iowa Health System and SubsidiariesConsolidated Balance Sheets


Assets

Current Assets

Cash and cash equity alents

Short-tenu im estments

Assets hunted as to use - required for current liabilities

Patient accounts receiN able, less estimated uncollectibles.

2012 - $54,909. 2011 - $55,774

Other receiN ables

In entones

Prepaid expenses

Total current assets

Assets Limited As to Use, Noncurrent

Held bN trustee under bond indenture agreements

IntennallN designated

Total assets limited as to use. noncurrent

Propert,* , Plant and Equipment, Net

Other Long-term Im estments

In estments in Joint Ventures and Other In estments

Contributions ReceiN able, Net

Other

Total assets

2012 2011(in thousands)

$ 140.990 $ 96.536

64.408 183.951

14.405 11.914

378.555 344.880

43.318 43.277

50.910 49.109

26,111 30.409

718.697 760.076

2.925 2.924

882.472 783.197

885.397 786.121

1.324.488 1.257.472

413.049 348.581

74.608 54.665

65.179 61.189

23.941 30.332

$ 3.505.359 $ 3.298.436

See Notes to Consolidated Financial Statements

Liabilities and Net Assets

2012 2011(in thousands)

Current Liabilities

Current matunties of long-tenu debt $ 73,022 $ 73,258

Accounts paN able 122,637 128.153

Accrued paN roll 144,046 127,908

Accrued interest 8,209 9,685

Estimated settlements due to tlurd-partv paNers 58,006 67.348

Other current liabilities 60,297 55,284

Total current liabilities 466,217 461,636

Long-term Debt, Net 727,585 720,837

Other Long-term Liabilities 358.835 383,859

Total liabilities 1,552,637 1.566.332

Net Assets

Unrestncted 1.838.514 1,627,211

Temporanl} restncted 64,935 57,824

PenuanentlN restncted 49,27; 47,069

Total net assets 1.952.722 1.732.104

Total liabilities and net assets $ 3,505,359 $ 3,298,436

3

Iowa Health System and SubsidiariesConsolidated Statements of Operations

Years Ended December 31, 2012 and 2011

2012 2011

(in thousands)

Unrestricted ReN enue

Patient service reNenue (net of contractual allowances) $ 2,686,008 $ 2,327,416

Pros ision for patient uncollectible accounts (131.413) (93.586)

Net patient service reNenue 2,554,595 2,233,830

Other operating reN enue 171,26; 140.273

Net assets released from restrictions used for operations 6.686 6.064

Total unrestricted reNenue 2,732,544 2,380,167

Expenses

Salaries and wages L004.380 867.878

Phy sician compensation and sere ices 324,361 263.883

EniploNee benefits 240.868 230.462

Supplies 445.913 407.434

Other expenses 458.941 377,559

Depreciation and amortization 163.895 131,439

Interest 31.734 30.936

Pros ision for uncollectible accounts 1.054 818

Total expenses 2.671.146 2.310.409

Operating Income 61,398 69.758

Nonoperating Gains (Losses)

Investment income 134.815 (1,094)

Contribution received in affiliation with Methodist Peoria - 180.325

Other, net 1,382 (37.068)

Total nonoperating gains (losses), net 136.197 142.163

Excess of ReN enues ON er Expenses 197,595 211,921

Change in the fair N clue of interest rate s« aps L065 (20.281)

Net assets released from restrictions used for capital expenditures 7.140 5.705

Change in defined benefit pension plan gains (losses)

and prior costs (credits) 2.805 (53.479)

Contributions of or for acquisition of proper and equipment 962 245

Other, net 1.736 (1.142)

Increase in Unrestricted Net Assets $ 211,30; $ 142,969

See Notes to Consolidated Financial Statements 4

Iowa Health System and SubsidiariesConsolidated Statements of Changes in Net Assets


2012 2011

(in thousands)

Unrestricted Net Assets

Excess of reN enues oN er expenses $ 197.595 $ 211.921

Change in the fair N clue of interest rate s« aps L065 (20.281)

Net assets released from restrictions used for capital expenditures 7.140 5.705

Change in defined benefit pension plan gains ( losses)

and prior costs ( credits ) 2.805 (53.479)

Contributions of or for acquisition of property and equipment 962 245

Other, net 1 ,736 (1,142)

Increase in unrestricted net assets 211 ,30; 142,969

Temporarih Restricted Net Assets

Contribution received in affiliation w ith Methodist Peoria - 8.635

Contributions 15.309 12.734

Investment income 2.350 1,549

GoN enunent grants 871 3,674

Net assets released from restrictions used for operations (6,686) (6,064)

Net assets released from restrictions used for capital expenditures (7.140) (5.705)

Change in net unrealized gains ( losses) on in estments 429 (411)

Change in beneficial interest in net assets of affiliate 3.932 1,695

Other, net (1,954) (3.777)

Increase in temporanlN restricted net assets 7.111 12,330

Permanenth Restricted Net Assets

Contribution recen ed in affiliation w ith Methodist Peoria - 3,897

Contributions 510 384

Investment income (loss) 1,032 (357)

Change in net unrealized gains ( losses) on im estments 169 (31)

Change in beneficial interest in net assets of affiliate 493 7

Other, net - 1

Increase in penuanentlN restricted net assets 2.204 3.901

Increase in Net Assets 220.618 159.200

Net Assets , Beginning of Year 1 .732.104 1.572.904

Net Assets, End of Year $ 1.952.722 $ 1.732.104


Iowa Health System and SubsidiariesConsolidated Statements of Cash Flows


2012 2011

on thousands)

Operating ActiN ities

Inciease in net assets $ 220.618 $ 159200

Items not iequuing ( pi oxiding) operating cash

Net (gains) losses on inx estments ( 113J39 ) 17.912

Net unrealized ( gains ) losses on sNxaps ( 5.-469) 51.-482

Restricted contributions , inxestment income and goxeinment

giants ieceixed 13M4) 17.984)

Contributions of of for acquisition of piopeit\ and equipment (962) (245)

Depreciation and amortization 163.895 13 1 A9

Change in defined pension plans ' liabilit\ (2 .805) 53.-479

Contribution iecei'ed in affiliation 'xith Methodist Peoria - (192.857)

Amortization of debt issuance costs 773 430

Loss on disposition of assets 1.127 1.-494

Gain on bond extinguishment ( 1.856) -

EquitN in earnings ofpoint xentuies ( 23.-468 ) M635)

Change in beneficial interest in net assets of affiliate (4.-425) (1.702)

Changes in

Receixables (33.716) (44.-478)

Inxentoiies, prepaid e\penses, and other assets 5.903 (12.727)

Accounts paNable . aceiued liabilities and other liabilities (7.194) 9.981

Due to third-paitN pa\eis ( 9.342) 580

Net cash piox ided bN operating actix sties 175.»6 137.369

In esting ActiN ities

Capital e\pendituies (227.323) (174.56)

Proceeds f om sale of assets 2.328 2.536

Inciease in assets limited as to use . net (25 .937) (15224)

Cash acquued in affiliation NNith Methodist Peoria - 27.082

Decrease in short-teem inxestments 122.329 46.110

Inciease in other long - teem inxestments (29.002) (17 .048)

Inxestments in point xentuies (19.O11) (2.613)

Distributions iecei'ed fom point xentuies 25A35 18.985

Net cash used in inxesting actix sties (151.481 ) ( 1 14.528)

Financing ActiN ities

Proceeds f om issuance of long-teem debt and lines of credit 81.993 -

Paments of debt (22,032) (24.655)

PaN ments on ear IN extinguishment of debt (54.528) -

Pioceeds from iestiicted contributions, inxestment income

and gox ei nment giants 13.984 17M4

Proceeds f om contributions for acquisition of piopeitN and equipment 962 245

Net cash pioxided bN (used in) financing actixities 20.379 (6.-426)

Increase in Cash and Cash Equity alents 44.454 16.415

Cash and Cash Equity alents , Beginning of Year 96J36 80.121

Cash and Cash EquiNalents , End of Year $ 140990 $ 96.536


Iowa Health System and SubsidiariesConsolidated Statements of Cash Flows (Continued)


2012 2011

on thousands)

Supplemental Cash Flow s Information

Interest paid ( net of amount capitalized ) S 33210 S 32.307

Capital lease obligations incuiied for piopelt\ and equipment 3.869 10974

PiopeitN and equipment purchases in accounts paNable 28.854 27.614

Affiliation 'xith Methodist Peoria

Assets acquued - 514.902

Liabilities assumed - 322.045


Iowa Health System and SubsidiariesNotes to Consolidated Financial Statements

(Dollars in Thousands)


Note 1 : Nature of Operations and Summary of Significant Accounting Policies

Organization

Io« a Health SN stem is an Io« a nonprofit corporation formed in December 1994 Io« a HealthSN stem and its subsidiaries (the Health SN stem) provide inpatient and outpatient care and

ON sician services from fifteen hospital facilities and various ambulatorn service and cliniclocations in Io« a and Illinois Pnmar\. secondary. and tertiar\ care services are provided toresidents of Io«a. Illinois. and adjacent states

Basis of Presentation

The consolidated financial statements include the accounts of Io« a Health Sv stem and itssubsidiaries listed belo«

• Central Io« a Health S\ stem and Subsidiaries (d/b/a Io« a Health - Des Moines)(Des Moines)

• Methodist Health Services Corporation and Subsidiaries (Peoria)

• Tnnitv Regional Health Sv stem and Subsidiaries (Rock Island)

• St Luke's Healthcare and Subsidiaries (Cedar Rapids)

• Allen Health Sv stems. Inc and Subsidiaries (Waterloo)

• St Luke's Health Sv stem. Inc (Sioux Citv )

• Tnnitv Health Sv stems. Inc and Subsidiaries (Fort Dodge)

• Finlev Tri-States Health Group. Inc and Subsidiaries (Dubuque)

• Io«a Phisicians Clinic Medical Foundation (d/b/a Io«a Health Phisicians & Clinics)

• Intrust (d/b/a Io«a Health Home Care)

Effective October 1. 2011. the Health Sv stem entered into an Affiliation agreement « ith MethodistHealth Services Corporation ( MHSC ) under « hich MHSC became an affiliate of the HealthS\ stem For the \ ear ended December') 1. 2012 and the three months ended December ') 1. 2011.net revenues of $362.273 and $89.832 . respectivel\ . NN ere recorded in the consolidated financialstatements

All significant intercompany balances and transactions have been eliminated in consolidation

Use of Estimates

The preparation of financial statements in confornit< «ith accounting principles generallyaccepted in the United States of America requires management to make estimates and assumptionsthat affect the reported amounts of assets and liabilities and disclosure of contingent assets andliabilities at the date of the financial statements and the reported amounts of revenues andexpenses during the reporting period Actual results could differ from those estimates




Cash, Cash Equivalents and Short-term Investments

Cash equivalents consist of demand deposits. repurchase agreements. moneN market fiends andother debt securities «tth original maturities of three months or less at the date of purchase. otherthan those included in assets limited as to use Short-term investments consist of debt securities«ith maturities bet« een 91 and 365 daN s of the balance sheet date

At tinges. the Health SN stem's cash accounts exceeded federallN insured limits Pursuant tolegislation enacted in 2010. the FDIC fulls insured all noninterest-bearing transaction accounts.beginning December 31. 2010. at all FDIC insured institutions This legislation expired onDecember 31. 2012 Beginning Januar\ 1. 2013. noninterest-beanng transaction accounts aresubject to the $250 limit on FDIC insurance per covered institution Management believes that theinstitutions «bere cash accounts are maintained are financially stable and that the credit riskrelated to deposits is minimal

Assets Limited as to Use

Assets limited as to use include amounts held bv trustees under bond indenture agreements andrelated documents and assets internall\ designated b\ the Board of Directors for identifiedpurposes and over «bich the Board of Directors retains control and max. at its discretion.subsequently use for other purposes Amounts required to meet current liabilities are classified ascurrent assets

Inventories

Inventories consist of supplies and are stated at the lo«er of cost or market

Investments and Investment Income

Investments in equit\ securities «ith readily determinable fair values and all investments in fixedincome securities are measured at fair value in the consolidated balance sheets The fair values arebased on quoted market prices or dealer quotes

Investments in joint ventures and other affiliates. «hich are more than 20% and not more than50% o«ned. are recorded using the equit\ method Other investments are reported at cost. asadjusted for permanent impairment in value. if an-\

Realized gains and losses from the sale of investments. interest and dividends. except those earnedas a function of operations. and unrealized gains and losses on investments classified as tradingsecurities and those earned at fair value pursuant to ASC Topic 825. are reported as non-operatinggains (losses) unless restricted b\ a donor Unrealized and realized gains and losses andinvestment income on investments restricted bv donors are included as a component of the changein net assets




The Health SN stem elected the fair value option for its private investment funds (PIF) that arepnmanlN limited liabilitv corporations and partnerships Management has elected the fair valueoption for the PIFs because it more accuratelN reflects the portfolio returns and financial positionof the Health SN stem Gains and losses on investments subject to the fair value option are reportedin investment income in nonoperating gains (losses) in the accompany ing consolidated statementsof operations

Refer to Notes 5 and 13 for additional disclosures regarding balance sheet line items and fair valueof those investments carved under Topic 825

Transfers in and out of Level 1 (quoted market paces). Level 2 (other significant observableinputs). and Level 3 (significant unobservable inputs) are recognized on the actual transfer date

Property, Plant and Equipment

PropertN. plant and equipment acquisitions are recorded at cost less accumulated depreciationDepreciation is provided pnmanlN using the straight-line method over the estimated useful lives ofthe assets Depreciation of assets under capital lease is provided using the straight-line methodover the shorter of the lease term or the estimated useful life of the assets Donated propert\. plantand equipment are recorded at fair market value at the date of donation

The Health SN stem capitalizes interest costs as a component of construction in progress. based oninterest costs of borro« mg specificallN for a project. net of interest earned on investments acquired«ith the proceeds of the borro« ing During 2012 and 2011. the Health SN stem capitalized $950and $1.067 of interest expense. respectively

Long-lived Asset Impairment

The Health SN stem evaluates the recoverability of the cam ing value of long-lived assets «heneverevents or circumstances indicate the cam ing amount maN not be recoverable If a long-lived assetis tested for recoverabilit\ and the undiscounted estimate future cash flo« s expected to result fromthe use and eventual disposition of the asset is less than the cam mg amount of the asset. the assetcost is adjusted to fair value and an impairment loss is recognized as the amount b< «bich thecarr\ ing amount of a long-lived asset exceeds its fair value

No asset impairment NN as recognized during the -\ears ended December 3 1. 2012 and 2011

Other Assets

Other assets include certain patient records and other intangible assets that are stated at cost lessaccumulated amortization In addition. other assets include good« ill Annually. the HealthS-\ stem performs an impairment test of all good« ill and an-\ identified impairment loss is

recognized as expense Other assets also include deferred financing costs. «hich are amortized

over the period the obligation is expected to be outstanding The Health S-\ stem has $3.509 and

$3.804 of good« ill at December') 1. 2012 and 2011. respectively Other intangible assets at

December') 1 . 2012 and 2011 «ere $9.075 and $11.264. respectively. «bich are subject to

amortization

10




Net Assets

Net assets are classified into three mutuallN exclusive classes unrestricted. temporank restrictedand permanentlN restricted The three classes are based on the presence or absence of donor-imposed restrictions Temporarily restricted net assets are those «bose use has been limited bNdonors to a specific time period or purpose PermanentlN restricted net assets have been restrictedbN donors in perpetuitv The expiration of donor restrictions is recorded in the period in «hich therestrictions expire

Temporank restricted net assets are generallN restricted for capital expenditures. passage of timeor other donor specified restrictions

Excess of Revenues Over Expenses

Excess of revenues over expense transactions affecting unrestricted net assets are reflected in theconsolidated statements of operations Consistent «tth industn practice. the effective portion ofderivative instruments qualifi mg for hedge accounting earned at fair value. change in definedbenefit plans. and contributions of long-lived assets (including assets acquired «tth donor-restricted cash contributions) are excluded from determination of the excess of revenues overexpenses Transactions related to temporank or permanentl\ restricted net assets are recorded asadditions or deductions to net assets and reflected in the consolidated statements of changes in netassets Non-controlling interest included as part of excess of revenues over expenses as $768and $1.058 as of December 31. 2012 and 2011. respectively

Net Patient Service Revenue and Accounts Receivable

Net patient service revenue is reported at the estimated net realizable amount. primank frompatients and third-parts payers. for services provided. including retroactive adjustments underreimbursement agreements «ith third-parts payers Retroactive adjustments are accrued on anestimated basis in the period in «bich the related services are provided. and adjusted in futurepenods as final settlements are determined

The Health S\ stem recognizes patient service revenue associated «ith services provided topatients NN ho have third-part\ pad er coverage on the basis of contractual rates for the servicesrendered For uninsured patients that do not qualifi for chants care. the Health S\ stem recognizesrevenue on the basis of its standard rates for services provided On the basis of historicalexperience. a significant portion of the Health S\ stem's uninsured patients NN ill be unable orLm« illing to pad for the services provided Thus. the Health Sv stem records a significantprovision for uncollectible accounts related to uninsured patients in the period the services areprovided This provision for uncollectible accounts is presented on the accompany mgconsolidated statements of operations as a component of net patient service revenue

11




As a service to the patient. the Health SNstem bills third-partv payers directlN and bills the patientNN hen the patient's liabilit\ is determined Patient accounts receivable are due in full NN hen billedAccounts receivable are reduced b-N an allo«ance for uncollectible accounts In evaluating thecollectabilit-N of accounts receivable. the Health SNstem analyzes its past history and identifiestrends for each of its mayor pad er sources of revenue to estimate the appropriate allo« ance foruncollectible accounts and provision for uncollectible accounts Management regularly revie« sdata about these mayor pay er sources of revenue in evaluating the sufficiencv of the allo« ance foruncollectible accounts

For receivables associated «ith services provided to patients NN ho have third-part\ coverage. theHealth S-\ stem anal zes contractually due amounts and provides contractual allo« ances based onthese amounts Additionally. an allo«ance for uncollectible accounts is provided for expecteduncollectible deductibles and copal meets on accounts for «bich the patient is responsible Forreceivables associated «ith self-pa-\ patients. the Health S-\ stem records a significant provision foruncollectible accounts in the period of service on the basis of its past experience. «hich indicatesthat man-\ patients are unable or Lm« illing to pad the portion of their bill for «bich the-\ arefinancially responsible The difference bet«een the standard rates (or the discounted rates ifnegotiated or provided b-\ polic-\ ) and the amounts actually collected after all reasonable collectionefforts have been exhausted is charged off against the allo« ance for uncollectible accounts

The Health S\ stem's allo« ance for uncollectible accounts at December 31. 2012 and 2011 NN as$54.909 and $55.774. respectively The allo«ance for uncollectible accounts (including a portionallo« ed for financial assistance) for self-pa\ patients NN as approximately 93% and 92% of self-pa\accounts receivable at December 31. 2012 and 2011. respectively The provision for patientuncollectible accounts for the sear ended December') 1. 2012 as $13 1.413 compared to $93.586for the \ ear ended December 31. 2011 The increase in expense as a result of modifications tocollection policies that include accelerated NN rite-offs as NN ell as a full s ear of operations of MHSCduring 2012 compared to onlv three months in 2011

Patient service revenues at established rates less third-parts pad er contractual adjustments (butbefore the provision for uncollectible accounts). recognized in the \ ears ended December 31 NN ereapproximately

2012 2011

Medicare $ 936.419

Medicaid 266.881

Wellmark 660.354

Commercial and other 692.51 5

Self-paN 129.839

$ 2.686.008

821.743

230.718

600.442

563.135

111.378

$ 2.327.416

12




Patient accounts receivable at established rates. less contractual allo«ances and the provision foruncollectible accounts. bN pad er class at December 31 NN ere as follo« s

Medicare

Medicaid

WeWnark

Commercial and other

Self-pay

Charity Care

2012 2011

$ 101,560 $ 92,493

45,366 42,565

64,972 61,664

124,416 109,795

42,241 38,363

$ 378,555 $ 344,880

The Health SN stem provides care to patients NN ho meet certain criteria under its charity care policN«ithout charge or at amounts less than established rates Amounts determined to be charity careare not reported as revenue

Functional Expenses

The Health SN stem provides general health care services. including acute inpatient. outpatient.phN sician. ambulatory. long-term and home health care. and incurs related general andadministrative expenses Expenses related to providing these services for the sears endedDecember 31 NN ere as follo« s

General health care services

Management, general and administrative

Research

Contributions and Beneficial Interest in Net Assets

2012 2011

$ 2,176,883

491,349

2,914

$ 1,908,342

399,386

2,681

$ 2,671,146 $ 2,310,409

Unconditional promises to give cash and other assets are reported at fair value at the date thepromise is received All contributions are considered to be available for unrestricted use unlessspecifically restricted bv the donor Donor-imposed restrictions are considered fulfilled as soon asthe stipulated time has expired or the qualifi mg expenditure has been made Donor-restnctedcontributions NN hose restrictions are met «tthin the same \ear as received are reported asunrestricted contributions

13




Contributions not expected to be collected «tthm a N ear are recorded at the present value ofexpected future cash flo« s using a nsk-free interest rate over the tern of the contributionContributions of propert\ are recorded at fair value NN hen received

Interests in charitable trusts and perpetual trusts are carried at the present value of expected futurecash flo« s. «hich approximates fair value The Health SN stem's interest in the net assets (theInterest) of certain foundations that raise and hold assets on behalf of the Health SN stein isaccounted for in a manner similar to the equity method The Interest is stated at fair value. andchanges in the Interest are included in the change in net assets Transfers of assets bet« een thesefoundations and the Health S-N stem are recognized as increases or decreases in the Interest

Estimated Malpractice Costs, Health Insurance and Workers' Compensation

An annual estimated provision is accrued for the self-insured portion of medical malpractice.health insurance. and «orkers' compensation claims and includes an estimate of the ultimate costsfor both reported claims and claims incurred but not reported

Claims liabilities are recorded at the gross amount. «tthout consideration of insurance recoveriesExpected recoveries are presented separatelN as receivables in the consolidated balance sheets

Interest Rate Swap Agreements

The Health SN stem has entered into various interest rate s« ap agreements (the S« aps) to reducethe effect of changes in cash flo« s pnmanlN related to interest rate fluctuations on the HealthSN stem's various variable rate demand bond issues The S« aps NN ere entered into for the riskmanagement purpose of reducing the vanabilith in cash flo« s related to the Health S-N stem'svariable rate debt

As described in Note 8. the Health SNstem has designated certain saps as hedges. «hile others« aps have not been designated as hedging instruments The effective portion of changes in thefair value of s« aps designated as hedges is recognized as a component of other changes in netassets. «bile the ineffective portion of these saps changes in fair value. and all changes in fairvalue of s« aps not designated as hedges. is recorded as a component of nonoperating gains(losses) in excess of revenues over expenses

The S« aps are recognized on the consolidated balance sheets at fair value The net cash pad mentsor receipts under the S« aps designated as hedging instruments are recorded as an increase ordecrease to interest expense The net cash pa\ments or receipts under the Saps not designated ashedges are recorded as an increase or decrease to other nonoperating income (loss)

14




Income Taxes

Io« a Health SN stem and most of its subsidiaries are classified as tax-exempt organizations asdescribed in Sections 501(c)(3) and 501(c)(2) of the Internal Revenue Code (the Code) Tax-exempt organizations are not subject to federal and state income taxes on related income. pursuantto Section 501(a) of the Code These organizations are subject to federal and state income taxes tothe extent the,, have unrelated business income as described under provisions of Section 511 ofthe Code

The Health SN stem files Form 990 for substantiallN all of its operating entities in the U S federaljurisdiction and is no longer subject to examination b,, tax authorities for the Nears before 2009The Health SNstem has no material uncertain tax positions

Certain subsidiaries are subject to federal and state income taxes Some of these corporationshave accumulated net operating loss carr\ fonN ards that are available to offset future taxableincome during the cans fonN and period No income tax benefit has been recognized for the netoperating loss carr\ fonN ards or other potential deferred tax assets in the consolidated financialstatements because the Health Sv stem believes realization of these benefits is unlikelv

Retirement Plans

Substantially all employees meeting age and length of service requirements participate in definedcontribution plans Certain subsidiaries also have defined benefit plans. most of «hich have beensubstantially frozen Pension costs for the defined benefit plans. «hich are composed of normalcosts and amortization of prior service costs related to defined benefit plans. are funded currentl\

Note 2: Affiliation with Methodist Peoria

On October 1. 2011. the Health S\ stem executed an affiliation agreement «ith MHSC. a not-for-profit health care organization operating as The Methodist Medical Center of Illinois. located inPeoria. Illinois The results of MHSC's operations have been included in the consolidatedfinancial statements since that date As a result of the affiliation. the Health Sv stem has expandedits service area into Central Illinois and continues to further its mission and strategic goals in theever changing health care provider landscape The Health S\ stem continues to incorporate MHSCinto its infrastructure as a «aN of achieving cost savings through the elimination of certainduplicative administrative and other functions The affiliation NN as accomplished by the HealthSv stem becoming the sole member of MHSC and having the abilitv to appoint the board membersof MHSC No consideration as transferred for the net assets of MHSC. thus the fair value ofunrestricted net assets received bv the Health Sv stem is sho« n as contribution revenue in theconsolidated statement of operations for the \ ear ended December 3 1. 2011

The Health Sv stem incurred $787 of costs in connection « tth this affiliation These costs areincluded in other expenses in the consolidated statement of operations for the \ ear endedDecember 31. 2011

15




The follo« mg table summarizes the fair value of the assets acquired and liabilities assumedrecognized at the affiliation date

Recognized fair value of identifiable assets acquired and liabilities assumed

Current assets $ 104.780

Property. plant and equipment 244.919

Noncurrent assets 165.203

Total assets 514.902

Current liabilities 89.268

Long-tenu debt 109.891Long-tenu liabilities 122.886

Total liabilities 322.045

Total contribution receiNed $ 192.857

Summary of contribution received by net asset classification

Unrestricted contribution received $ 180.325

TemporanlN restricted contribution recen ed 8.635

PennanentlN restricted contribution recen ed 3.897

Total contribution receiNed $ 192.857

The affiliation resulted in an inherent contribution received of $192.857. «hich represents the netrecognized amount of the identifiable assets acquired over the liabilities assumed Acquisition ofthe unrestricted net assets is included in contribution revenue in the consolidated statement ofoperations for the -\ ear ended December 31. 2011 The temporanl-\ and permanentl-\ restricted netassets are included as increases to those classes of net assets in the amounts of $8.635 and $3.897.respectivel-\. for the -\ ear ended December 31. 2011

MHSC contributed revenues of $89.832. excess revenues over expenses of $8.646. and changes inunrestricted . temporanl-\ restricted . and pennanentl-\ restricted net assets of $3. 177. $356. and$23. respectivel-\. to the Health S-\ stem for the period from the affiliation date throughDecember 31. 2011

Note 3: Charity Care

The Health S-\ stem provides charit-\ care and financial assistance discounts for medicall-\necessan health care services provided to persons NN ho meet the Health S-\ stem's polic-\ Thepolic-\ provides a percentage discount to the patient that decreases at graduall-\ higher incomelevels or higher levels of household net assets The benchmark upon «hich the income level iscompared to is the Federal Povert-\ Income Guideline and is updated annuall-\ Patients «bo arealread-\ receiving benefits from certain identified government programs qualif for presumptiveeligibility

16




The availabilitN of chantv care is «idelv communicated to all patients and patients are notifiedprior to receiving services if their treatment does not fall «ithin the guidelines of the polic-NAmounts charged for care that is provided to individuals eligible for chants maN not be more thanthe amounts generallN billed to individuals «bo have insurance covering such care Amountsbilled are based on either the best. or an average of the three best. negotiated commercial rates. orMedicare rates

Accounts that are classified b-N the Health S-N stem as chant\ care are not reported as net patientservice revenue In some cases. the chant\ care is subsidized b-N contributions from volunteerorganizations or other donors Charit\ care subsidies are not material to the consolidated financialstatements

Cost of chants care is calculated b-N appl-N mg hospital specific cost-to-charge ratios to the totalamount of charitN care deductions from gross revenue The cost-to-charge ratio is calculated b-Ntaking the hospital total expenses and gross charges and appl-N mg adjustments to remove the costof non-patient care activit-N. Medicaid provider taxes paid. identifiable coil munit-N benefitexpenses. as NN ell as gross patient charges that are generated for identifiable communit-N benefitservices The amount of chants care provided at cost NN as $49.752 and $39.045 for the s earsended December 3 1. 2012 and 2011. respectivel-N

Communit-N benefit is also provided through reduced price services and free programs offeredthroughout the -N ear The Health S-N stem provides an arra-N of uncompensated activities andservices intended to meet the coil munit-N health needs These activities include «ellnessprograms. communitN education programs. and various health screening programs The cost ofproviding these coil munit-N benefit services is reported on Schedule H of the Health S-N stem's IRSForm 990

Note 4: Third-Party Reimbursement

As a provider of health care services. the Health SN stem generallN grants credit to patients v ithoutrequiring collateral or other secuntN The Health SN stem routinelN obtains assignments of (or isothenN ise entitled to receive) patients' benefits pad able under their health insurance programs.plans or policies These health insurance programs or providers are commonlN referred to asthird-part\ pad ers and include the Medicare and Medicaid programs. Wellmark. and varioushealth maintenance and preferred provider organizations

A mayor portion of the Health SN stem's revenue is derived from these third-part\ pa\ ersSignificant changes have been made. and maN be made. in certain of these programs. «hich couldhave a material. adverse impact on the financial condition of the Health S-N stem These changesinclude federal and state la« s and regulations. particularl-N those pertaining to Medicare andMedicaid

17




The Health SN stem has agreements «ith certain third-parts pad ers that provide for pad merit ofservices at amounts that differ from established rates Third-parts paN er pad merit rates var\ b,,paN er and include established charges. contracted rates less than established charges.prospectively determined rates per discharge. per procedure. or per diem. retroactively determinedcost-based rates

The impact of current economic conditions on government budgets maN have an adverse effect onthe cash flo« from government-sponsored Medicare or Medicaid programs The State of Illinoishas experienced significant financial difficulties as a result of the do« nturn in the econom . «bichhas caused significant pad merit delaN s for services that have been rendered under the Medicaidprogram As of December') 1. 2012 and 2011. the Health S\ stem has net accounts receivable of$21.205 and $20.915. respectively. «bich are o«ed from the State of Illinois Managementbelieves that these receivables are fulls collectible for historical services rendered. hoNN ever. theState of Illinois NN ill be evaluating the need to reduce Medicaid expenditures going for«ard Anvchanges to reimbursement rates in the future could have a negative impact on cash flo« forservices rendered in the future

Value Based Contracting

Tnmark Physicians Group. a 54 member multi-specialt\ ph sician group employed by Tnmark. a«bollh o« ned subsidiar\ of the Health S\ stem's Tnnrth Health S\ stems. Inc subsidiar\. and TnnrthRegional Medical Center of Fort Dodge NN ere selected to participate in the Pioneer Accountable CareOrganization (ACO) Model. a transfonnative ne« initiative sponsored b\ the Centers for Medicareand Medicaid Services Innovation Center (CMMI) The Pioneer ACO (Tnnith Pioneer ACO. L C )began operations on January 1. 2012 as the onlv phi sician group and hospital in Io« a participating inthe model program Through the Pioneer ACO Model. Tnmark and Trmit< NN ill «ork «ith CMMI toprovide Medicare beneficiaries «ith higher quality care. «bile reducing growth in Medicareexpenditures through enhanced care coordination

Effective April 1. 2012. the Health S\ stem's «bollv owned subsidiarn. Io«a Health AccountableCare. L C . «hich is included in the consolidated financial statements. and Wellmark. Inc. doingbusiness as Wellmark Blue Cross and Blue Shield. entered into an agreement to create Io«a's firstcommercial health plan ACO The ne« ACO focuses on coordinating care to improve qualth.provide greater value. and slo« increases in health care costs This agreement covers approvmatek50.000 lives. «bereb\ Health S\ stem providers NN ill be re« arded for lo« enng cost per attributedmember belo« a target level. and covers approximately 140.000 lives. «bereb\ Health S\ stemproviders NN ill be re« arded for their abilth to meet measures regarding patient experience. chronicand follo« -up care. and pnmarr prevention

Effective Julv 1. 2012. the Health Sv stem again through its «bollv owned subsidiary. Io« a HealthAccountable Care. L C . as accepted b\ the Centers for Medicare and Medicaid Services (CMS) asa Medicare Shared Savings Program ACO This ACO covers approvmatek 74.000 lives and NN illallo« the Health S\ stem to «ork «ith CMS to provide Medicare fee-for-service beneficiaries «ithhigh qualit\ service and care. «bile reducing the growth in Medicare expenditures through enhancedcare coordination

18




Incentives earned under these ACO contracts NN ill be recorded as additional reimbursement andincluded in net patient service revenue in the consolidated statements of operations During thes ear ended December 31. 2012. $2.293 NN as recognized related to these contracts

Iowa Medicaid State Plan

In 2011. the state of Io« a enacted a Medicaid State Plan in «hich an annual tax assessment is leviedon certain hospital providers in order to provide fimding for Medicaid to obtain federal matchingfiends A portion of these additional federal fiends are then redistributed to participating Io«ahospitals through increased Medicaid pad meats in order to help bring Medicaid reimbursement closerto the cost of providing care The allocation of these fiords to specific health care providers is basedpnmanlN on the amount of care provided to Medicaid recipients

The Health SN stem's tax assessment during 2012 and 2011 NN as $12.157 and $16.566. respectively.and is included in operating expenses in the consolidated statements of operations AdditionalMedicaid reimbursement in the same periods NN as approvmatelN $19.304 and $28.738. respectively.and is included in net patient service revenue in the consolidated statements of operations. resulting ina net increase in operating income of $7.147 and $12.172. respectivelN

Illinois Medicaid State Plan

The Illinois Medicaid State Plan serves a similar purpose as the Io« a plan but has been in place since2006 Under the amended Illinois Medicaid State Plan. proceeds from the tax assessment are used toobtain federal matching fiends. all of «bich must be distributed to Illinois hospitals and phi sicians tohelp bring Medicaid reimbursement closer to the cost of providing care The allocation of these fiordsto specific health care providers is based pnmanlN on the amount of care provided to Medicaidrecipients The Health SN stem's tax assessment in 2012 and 2011 relate to Tnmth Regional HealthS-N stem and MHSC The 2011 amounts related to MHSC are only from the date of affiliation «ithMHSC

In 2012 and 2011. the Health S-N stem's tax assessment NN as $17.483 and $10.632. respectivel-N. and isincluded in operating expenses in the consolidated statements of operations Additional Medicaidreimbursement in the same periods NN as approvmatek $34.316 and $19.577. respectivel-N. and isincluded in net patient service revenue in the consolidated statements of operations. resulting in a netincrease in operating income of $16.833 and $8.945 in 2012 and 2011. respectively

Electronic Health Records Incentive Program

The Electronic Health Records Incentive Program. enacted as part of the American Recover' andReinvestment Act of 2009. provides for one-time incentive pad ments under both the Medicare andMedicaid programs to eligible health sN stems that demonstrate meaningful use of certifiedelectronic health records technolog\ (EHR) PaN ments under both the Medicare and Medicaidprogram are generally made for up to four -\ ears based on a statutor\ formula The Medicaidprograms are determined on a state b-\ state basis. «bich are approved b-\ the Centers for Medicareand Medicaid Services Pa-\ment under both programs are contingent on the Health S-\ stemmitialk attesting to being a meaningful user of EHR technology and then continuing to meetescalating criteria. including other specific requirements that are applicable. for consecutive

19




reporting periods The final amount for anN pad merit , ear is determined based upon an audit bNthe administrative contractor Events could occur that «ould cause final amounts to differmatenallN from initial paN merits under the program

The Health SN stem recognizes revenue ratablN over the reporting period starting at the point NN henmanagement is reasonablN assured it NN ill meet all of the meaningful use objectives and an otherspecific grant requirements applicable for the reporting period

Several of the Health SN stem's affiliates have completed the first-s ear requirements under theMedicare program and the Health SN stem has recorded revenue of $1742 and $1.362 during 2012and 2011. respectively. «bich is included in other operating revenue in the consolidated statements ofoperations This revenue also includes portions accrued related to the second-s ear of the program tothe extent management is reasonablN assured the applicable objectives are being met during thereporting period

For the Medicaid program . the majont\ of the Health SN stem's affiliates completed the first-s earrequirements during 2011 and $9.789 of revenue is included in other operating revenue in theconsolidated statements of operations for the Near ended December ') 1. 2011 An additional $7.235

NN as recognized during 2012. in the same manner. related mostl-N to the second-s ear of the program

Revenue recorded for both the Medicare and Medicaid program EHR finds relate to theimplementation of EHR technolog< «ithm the Health SN stems hospitals as NN ell as affiliatedphN sician group practices

20




Note 5: Investments

Investment Summary

Short-term investments consist of debt securities. prtmanlN U S Government agenc\ obligationsand corporate bonds. and totaled $64.408 and $183.951 at December 31. 2012 and 2011.respecttvelN

A summar\ of investments reported as assets limited as to use at December 31 is as follo« s

2012 2011

Held bN tnistees under bond indenture agreements

Cash equnalents and short-tenu nimestiuents $ 2.897 $ 2.887

Mortgage-backed securities 28 37

2.925 2.924

Intenial h designated

Cash equnalents and short-tenu ninestiuents 134.714 13.686

U S TreasurN obligations 5.071 18.658U S Go\enunent agenc\ obligations 2.515 6.625

Asset-backed securities

Home equfi 590 14.398Other 57 5.455

Mortgage-backed securities

GoN enunent 1.708 48.191Non-gownunent 546 33.280

Certificates of deposit 379 474

Corporate bonds 5.351 44.451Corporate bonds - PIF - 155.250Equit} securities

Domestic 8.613 95.087

International 147 34

Equit} securities - PIF

Domestic - 121.574

International - 59.729

Mutual fluids

Domestic 1.050 -

Inteniational 112.669 58.595

Emergig markets 17.417 47.582Index 470 975Equfi 268.496 665Fixed niconie 316.490 2.801Other 143 283

Hedge fund-of-funds 20.336 66.189Interest recenable 115 1.129

896.877 795.111

Total assets (muted as to use 899.802 798.035

Less amount required to meet current obligations 14.405 11.914

Noncurrent portion of assets (muted as to use $ 885.397 $ 786.121

21




Assets held bN trustee under bond indenture agreements are required to be held in separate trustaccounts A summan of these trust accounts aggregated b\ their required use at December 31 isas follo« s

Collateral and other accounts

2012 2011

$ 2.925 $ 2.924

Internally designated assets are summarized belo« based on the designation at December 3 1

2012

Capital unproN ements

Self-insured reserN es

Bond interest account

$ 861.101

35.383

393

2011

$ 757.670

37.049

392.

$ 896.877 $ 795.111

22




Investments presented as other long-term investments at December 3 1 are summarized as follo« s

Restricted cash equivalents and short-term investments

U S Treasury obligations

U S Government agency obligations


Home equity

Other


Government

Non-government

Corporate bonds

Corporate bonds - PIF

Equity securities

Domestic

International

Equity securities - PIF

Domestic

International

Mutual funds

Domestic

International

Emerging markets

Index

Equity

Fixed income

Other

Hedge fund-of-funds

Notes receivable

Interest receivable

Insurance policies

Real estate

Interest rate swaps (see Note 8)

Total other long-term investments

2012

$ 33,822

1,203

661

155

14

434

132

861

5,805

407

1,273

48,722

5,438

3,936

111,008

152,030

14,732

23,332

15

159

4,419

1,255

3,236

2011

$ 5,116

4,591

1,593

3,293

1,248

11,024

7,613

9,648

35,513

25,956

179

27,809

13,663

19,659

26,878

11,375

2,217

29,718

65,126

4,482

35,256

15

422

4,199

1,050

938

$ 413,049 $ 348,581

23




The follo« ing schedule summarizes the investment return and its classification in the consolidatedstatements of operations and changes in net assets for the s ears ended December 31

2012 2011

In\ estment recur

Interest and diN idends

Realized gains on sales of inNestments

Unrealized losses on trading iiiN estments

Unrealized gains (losses ) on other-than-trading

inN estments

Equity in earnings ofjoint Ventures

Change in fair N alue of iiiN estments accounted for

under the fair N alue option of FASB ASC Topic 825

$ 28.415143.430

(82.144)

598

23.468

$ 18.85931.383

(55.890)

(442)

18.635

I iN estment return classification

Unrestricted net assets

Other operating reN enue

Nonoperating gains (losses) - inNestment income

TemporarilN restricted net assets

PenuanentlN restricted net assets

t 16J.4LL 19.D 2

$ 26.627 $ 19.926

134.815 (1.094)

2.779 1.138

1.201 (388)

$ 165.422 $ 19.582

Private Investment Funds

At December 31. 2012 and 2011. 3% and 45%. respectlvel-\. of the Health S-\ stem's investmentsere invested in PIFs «bose portfolios are primanl-\ invested in debt and marketable equity

securities These investments are included in either internall-\ designated or other long-terminvestments in the investment summarv tables (prevlousl-\ presented) based on the underl-\ inginvestments The amounts included in the investment summan tables at December 31 are asfollo« s

2012 2011

Corporate bonds $ - $ 190.763

Equity securities - 222.775

Hedge find -of-finds 43 . 668 101.445

$ 43.668 $ 514.983

24




The large decline in PIFs from December 31. 2011 is due to a change in investment strategy«ithin the Health SNstem In June 2012. the Health SNstem's Investment Committee replaced theformer investment advisor. NN ho NN as engaged to provide guidance and recommendations regardingselection of individual investment managers utilized in the investment portfolio. «ith a ne«advisor «ho utilizes a manager-of-managers approach through the use of propnetarn registeredmutual funds Through this transition. a large portion of the Health SN stem's investments in PIFshave been liquidated

As of December 3 1. 2012. the remaining PIFs consist of an alternative fund. t«o hedge fiend-of-fimds and one private equitN find The investment strategy of the alternative find is to invest inincome producing real estate properties utilizing a lo« level of leverage The hedge fiend-of-fiindsutilize strategies aiming to provide lo« return volatilit\ through tactical investment strategies«hile earning a total rate of return in excess of rates achieved from a standard index The privateequit\ fiend has a strategy of investing in earls -stage companies and entrepreneurs «ithin thehealth care industr\ There is no public market for shares in the PIFs The value of theinvestments in the PIFs is determined based on the fair values of the underl-\ ing securities Thesefour fiends are collectivel-\ referred to as hedge fiend-of-fiends «ithm the Investments and FairValue tables included «ithm Note 5 and Note 13. respectivel-\. of the notes to these consolidatedfinancial statements

In situations NN hen investments do not have readil-\ determinable fair values (PIFs). the fiendmanagers provide the net asset value (NAV) per share. or its equivalent. to the Health S-\ stemThe NAV provided b-\ the fiend managers is supported b-\ underl-\ ing audit reports of the privateinvestment finds The Health S-\ stem previousl-\ adopted ASU 2009-12. «hich provided apractical expedient for certain investments to use net asset value per share to measure fair valueAccordmgl-\. the Health S-\ stem uses the NAV as a practical expedient for fair value for each ofits PIFs

The PIFs have certain limits regarding advance notice and timing of «ithdra« als The-\ generall-\require advance notice of at least t« o da,, s prior to a month end to «ithdra« fiends One fund.«bich represents approximatel-\ 55% of the PIF fiends at December 31. 2012. requires a 95-da-\notice to «ithdra« fiends. either quarterl-\ or semiannuall-\. based on the initial purchase date ofthe investments In addition. NN ithdra«als maN be limited b-\ the PIFs underl-\ ing investmentfunds ability to liquidate their holdings

During 2011. the Health S-\ stem committed to investing $10.000 in the private equth PIF «ith alock-up period often sears The Health S\ stem's interest is nonredeemable and the HealthS\ stem has contributed $1.505 to this investment as of December 3 1. 2012

Investments in Joint Ventures

At December 31. 2012 and 2011. investments in joint ventures amounted to $60.054 and $42.710.

respectively Other investments also included in this line in the consolidated balance sheets

consist pnmarily of the cash surrender value of life insurance policies and real estate held for

investment

25




On June 22. 2012. the Health SN stem purchased a 45% interest in QuincN Phi sicians & SurgeonsClinic. S C . doing business as QuincN Medical Group (QMG). of QuincN. Illinois for $18.743QMG is a multi-specialtN ph'ssician practice group «ith over 120 ph sicians practicing 27specialties The ph sician relationships gained through this investment NN ill enable strongcollaboration and clinical innovation between QMG and the Health S-N stem's affiliated ph-N siciansAs of December 31. 2012. the carrving value of the Health S-\ stein's investment in QMG is$18.972

The joint ventures consist of 43 privately held health care organizations in «bich the HealthS\ stem's ov nership interest ranges from 20% to 50% The joint ventures had the follow mgfinancial information as of and for the \ ears ended December 3 1

Total assets

Net reN enues

Net income

2012 2011

$ 247.699 $ 160.253

354.057 151.325

58.992 43.065

The Health Sv stem's share of earnings on the investments in joint ventures is included in otheroperating revenue in the consolidated statements of operations The Health S\ stem recordedactivth related to joint ventures for the \ ears ended December 31 as follow s

2012 2011

Earnings on inN estments in joint \ entures $ 23.468 $ 18.635

New inN estments in joint \ entures 19.011 2.613

Distributions recen ed from joint \ entures 2 5. 135 18.985

The Health S\ stem both purchases services and sells services and supplies to several jointventures In 2012 and 2011. services purchased from joint ventures totaled $15.540 and $11.016.respectively Services and supplies sold tojoint ventures in 2012 and 2011 were $7.438 and$9.105. respectively

26




Note 6 : Property , Plant and Equipment

PropertN. plant and equipment are stated at cost and are summarized at December 31 as follo« s

Land

Land Improvements

Buildings, improvements and fixed equipment

Moveable equipment

Less accumulated depreciation and amortization

Construction/nnformation systems installation

m progress

Net property, plant and equipment

2012 2011

$ 97,434

52,868

1,606,253

1,147,808

2,904,363

1,644,431

1,259,932

$ 95,753

64,770

1,547,915

1,007,797

2,716,235

1,504,900

1,211,335

64,556 46,137

$ 1,324,488 $ 1,257,472

As of December 31. 2012 and 2011. the Health SN stem has committed approximatelN $133.904and $123.272. respectively. for costs related to various hospital construction and informations,, stems projects The Health SN stem plans to fiend the majorit,, of these projects through internalfiends. «ith supplemental debt financing for certain projects

27




Note 7: Long-term Debt

Long-term debt at December 3 1. 2012 and 2011 is summarized as follo« s

Payable Issuance Interest

Through Type (1) Rate ( 2) 2012 2011

Hospital FacilitN Rex en Li e Bonds

Seties 2011A 2021 Fixed 3 29°o S 52.960 S 57.960

Seties 2011B 2041 VRDB 0 14°o, 0 10°0 51.220 51.220

Seties 2009A 2035 VRDB 0 13°o, 006°o 51.255 52.860

Seties 2009B 2035 VRDB 0 13°o, 006°o 51.255 52.860

Seties 2009C 2035 Vatiable 1 11°o, 1 16°o 29.450 30.375

Seties 2009D 2035 Vatiable 078°o,0 16°o 54.730 56.445

Seties 2009E 2039 Vatiable 0 95°o, 0 16°o 43.000 43.000

Seties 2009F 2039 Fixed 5 00°o - 50.000

Seties 2008A 2037 Fixed 2 50°0 - 5 625°o 143.910 146.040

Series 2008 2028 Variable N A. 13 4500 - 4.528

Seties 2006 2031 VRDB 0 25°o. 0 25°o 12.715 13.110

Seties 2005 2031 Fixed 4 00°0 -4500o 3.517 3.622

Seties 2005A 2035 Fixed 2 50°o - 5 625°o 186.690 192.540

Seties 1985B 2015 VRDB 0 15°o, 0 14°o 23.000 23.000

Total hospital facilitN lexenue bonds 703.702 777.560

Capital lease obligations 2026 Fixed 0°o - 5 92°o 16.117 14.669

Rexohmg lines ofciedit 2014 Variable 075°o - 1 00°o 81.993 -

Othet notes and mortgages 2021 Fixed 8 00°o 493 775

802.305 793.004

Cuiient maturities (73.022) (73.258)

Unamoitized bond pienuum (discount) (1.698) 1.091

Long-teem portion S 727.585 S 720.837

(1) Fixed late. xaiiable late. 1 xaiiable late demand bonds (VRDB)(2) Variable sates slioNxn as of Decembei 31. 2012 and 2011. iespectixeIN

The Serves 2011 Bonds are obligations of MHSC that NN ere issued prior to their affiliation «ith theHealth SN stem The Methodist Medical Center of Illinois. a subsidiary of MHSC. is the sole obligorunder the bond indenture. «hich requires the maintenance of certain financial ratios through themaster trust indenture and letter of credit agreement (related to the variable rate demand bonds)

The Serves 2009. 2008. and 2005 Bonds (collectivel\ the Bonds") are general obligations of theHealth S\ stem and its affiliates The Health S\ stem is required to meet certain operating andfinancial ratios contained in the master bond trust indenture. bond insurance agreements and balkletter of credit agreements (related to the variable rate demand bonds) The Bonds are subject to theprovisions of amended and restated master trust indentures. «bich generall\ require monthl\ orquarterly deposits for principal and interest pad merits be made. and certain funds be maintained b\the trustee for interest pad ment and bond retirement purposes

28




The variable interest rates on substantiallN all of the bonds are adjusted dailN or «eeklv bNremarketing agents The bonds maN be tendered bN the bond holders each interest rate periodThe Health SN stem maintains letters of credit that can be dra« n on should the bonds not beremarketed These letters of credit expire beginning in 2013 through 2016 and are rene« able.subject to trustee approval and at the option of the providers. throughout the tern of the bondsOutstanding amounts under the letters of credit are due at the earlier of expiration of theagreement or over a period of three N ears. commencing after an initial outstanding period of 366daN s or more

The 2009C bonds have a mandator\ tender date of December 1. 2013. ho« ever. if the HealthS-\ stem continues to be in compliance «ith the representations included «ithin the master bondtrust indenture. the-\ can defer tendering for 366 daN s at December 31. 2012 The Health S-\ stemis currentl-\ in compliance «ith all representations and. therefore. the date of mandator\ tender isin excess of one sear as of December 31. 2012

The $50.000 of 2009F bonds NN ere subject to mandator\ tender on August 14. 2012 On that date.the Health S-\ stem repurchased the Rill amount outstanding and surrendered them to the trustee forcancellation

In September 2012. the Health S-\ stem completed an interest rate mode conversion for the 2009Dand 2009E bonds converting the interest rate from a dail-\ rate to an index rate The interest ratemodification NN as not considered a significant modification of terns. thus. all costs incurred fromthe mode conversion NN ere expensed during the -\ ear As part of this conversion. a Direct NoteObligation for the 2009D and 2009E bonds NN as issued to a financial institution. eliminating thesupporting letter of credit requirement

On Januar\ 6. 2012 and August 1. 2012. the Health S-\ stem entered into t« o separate revolvingline of credit facilities that provide for revolving credit in an aggregate principal amount of up to$50.000 each The interest rates applicable to loans under the ne« credit agreements are based onLIBOR plus applicable margins. either 0 45% or 0 60%. as defined in the agreementsAdditionall-\. a commitment fee of 0 10% to 0 125% is required on the average dail-\ undra«nportion of the facilities These credit facilities mature on August 9. 2013 and Januar\ 5. 2014These agreements contain various financial covenants that mirror those in the Health S-\ stem'smaster bond trust indenture

29




Aggregate annual maturities of long-term debt during the N ears ending December 31 are asfollo« s

2013

2014

2015

2016

2017

Thereafter

Note 8: Interest Rate Swaps

Swaps Designated as Hedging Instruments

Accelerated Scheduled

Maturities with Maturities

Letter of Credit Based on Loan

Expirations Agreements

$ 73,022

168,930

107,365

21,580

19,036

412,372

$ 73,022

54,141

43,123

23,576

24,406

584,037

$ 802,305 $ 802,305

As a risk management strateg\ to maintain acceptable levels of exposure to the risk of changes infixture cash flo« s due to interest rate fluctuations. the Health SN stem entered into the follo« inginterest rate s« ap agreements

Current Health Health Fair Value

Trade Maturity Notional System System Accounting

Date Date Amount Pays Receives Treatment 2012 2011

2005 2035 $ 186.690 3 5°o 62 4°o of LIBOR + 29 bps Cash FloAN Hedge $ (36.024) $ (37,026)

In 2005. the Health SN stem entered into three interest rate s« ap agreements. «blch effectlvelNconverted the Serves 2005B variable rate bonds into fixed rate debt at a rate of 3 5% (4 1%Including transaction costs) During 2009. these saps NN ere redesignated to hedge the Serves2009 A-D Bonds The s« ap agreements have an aggregate notional amount of $186.690 atDecember 31. 2012

Management has designated the above interest rate s« ap agreements as cash flo« hedginginstruments. and has determined that these agreements are hlghlN effective The aggregate fairvalue of the sap agreements is recorded as along-term llablllt^ of $(36.022) at December 31.2012 and $(37.026) at December 31. 2011 The change in fair value of $1.004 and $(20.342) forthe Nears ended December 31. 2012 and 2011. respectlvek. Is reported as part of the change inunrealized gains and losses on sv aps Interest. the net of NN hat the Health SN stem pad s andreceives under the t« o legs of the s« aps. Is settled monthlN on each s« ap agreement and isreported as interest expense

30




The Health SNstem has provisions «ithm certain interest rate s«ap agreements that «ould requireit to post collateral should the negative fair value of the agreements exceed certain thresholds.«hich are between $25.000 and $55.000 depending on the agreement. or the Health SN stem'scredit rating fall belo« Aa3 bN Moods 's or AA- bN S&P As of December 31. 2012. the HealthSN stem has not been requested to post collateral under these agreements

The table belo« presents certain information regarding the Health SNstem's interest rate sapagreements designated as a cash flo« hedge The Health SN stem has additional derivativeinstruments at December 31. 2012 and 2011 that are no longer designated as hedging instrumentsunder ASC 815 (Derivatives and Hedging). as sho«n belo«

2012 2011

Long-term Liability

Fair \ alue of interest rate sNN ap agreement $ (36.022) $ (37.026)


Gain (loss) recognized in changes in unrealized gains

and losses on mv, estments ( effectl\ e portion ) 1.004 (20.342)

Other Swap Agreements

The Health SN stem has also entered into the follo« mg interest rate s« ap agreements «hich are nolonger designated as hedging instruments The Health SN stem has elected to cans these sv aps asan investing activit\. until such time that satisfactor\ termination values can be obtained. or theirrespective matunt\ date

Fair Value

Trade Maturity Notional Health System Health System

Date Date Amount Pays Receives 2012 2011

2006 2030 $ 60.000 100% of SIFMA* 68 0% of LIBOR+ 59 2 bps* $ 3.236 $ 938

2006 2037 141.200 3 8% 61 9% of LIBOR + 31 bps (40.491) (42.529)

2006 2023 42.700 3 5% 61 9% of LIBOR+ 31 bps (7.689) (7.593)

2005 2035 62.230 3 3% 62 4% of LIBOR + 29 bps (11.087) (11.312)

$ (56.031) $ (60.496)

* Rate represents the terns of the swap agreement. as originated Tlie agreement has been amended for the

period tuitil NoN ember 15. 2014 Until that date. MHSC will not make a quarterl, paN merit and will recen e

fixed quarterl, paN merits of $188 After that date. the terns reN ert back to the original contracted terns.

which are as stated in the table aboN e

31




The aggregate fair value of the unhedged s« ap agreements are recorded as long-tern investmentsof $3.236 and $938 and long-term liabilities of $(59.267) and $(61.434). as of December 31. 2012and 2011. respectivelN The change in fair value of $4.465 and $(31.141) is included as acomponent of other income (loss) as of December 31. 2012 and 2011. respectivelN Interest. thenet of NN hat the Health SN stem pad s and receives. is settled monthlN or quarterlN on each sv apagreement and is reported as other income (loss)

In prior Nears. certain s« ap agreements previouslN designated as hedges bN the Health SN stemNN ere deemed to be ineffective The effective portion of these changes in fair value. previouslNdeemed effective. is being amortized into other income (loss) over the remaining life of the sapAs of December 31. 2012 and 2011. $(638) and $(699) of net unrealized losses remain in netassets to be amortized and $(61) NN as amortized into other loss in both 2012 and 2011

Other Saps

Other Long-term Investments

2012 2011

938

(61,434)

61

(31,141)

(61)

Fair value of interest rate swap agreement

Other Long-term Liabilities

Fair value of interest rate swap agreement


Change in unrestricted net assets amortizing into

Other, net

Other, Net

Gam (loss) recognized m income from changes m

fair value of interest rate swap

Main recognized in income from amortization of

unrecognized gains (losses ) m unrestricted net assets

$ 3,236 $

(59,267)

61

4,465

(61)

During 2012. the Health SN stem novated several interest rate s« ap agreements. «hich NN ere notdesignated as hedges. to ne« counterparties to alleviate the underlN ing insurance and collateralexposure This novation did not modifi anN of the terns of the original s« ap agreementsManagement determined that these did not constitute ne« hedging instrments. and therefore theaccounting for the agreements has not changed

32




Note 9: Related-Party Transactions

The Health SN stem leases real estate from certain companies controlled bN members of the Boardof Directors of the Health SN stem or its subsidiaries Minimum payments under these operatingleases are $5.305 per Near The leases expire in various periods through 2021 Rent expenseunder these leases. including a pro rata portion of certain operating expenses of the facilities. NN as$5.567 and $4.915 for 2012 and 2011. respectivelN At December 31. 2012 and 2011. the HealthSN stem also had outstanding debt «ith such parties related to real estate capital lease obligationsof $10.486 and $10.963. respectivelN The Health SN stem also leases real estate to phN sicians «homaN serve the Health SN stem through board of director or medical director roles

The Health SN stem purchases a vanetN of services and products from companies affiliated «ithmembers of the Boards of Directors of the Health SN stem and/or its subsidiaries Services andproducts purchased from these affiliated companies during 2012 and 2011 totaled $16.187 and$13.693. respectively. of «bich $8.131 and $4.902. respectively. NN ere related to constructionproject costs In addition. the Health SN stem purchases services from several joint ventures andsells services and supplies to several joint ventures in «bich the Health SN stem is also an investor

The Health SN stem has recorded receivables for amounts held bN nonconsolidated foundations onbehalf of the Health SN stem of $44.142 and $41.527 as of December 31. 2012 and 2011.respectivelN Contributions received from nonconsolidated foundations and other related partiesNN ere $2.925 and $2.326 in 2012 and 2011. respectivelN

The Health SN stem believes these transactions are consummated under commerciallN reasonablebusiness arrangements

Note 10: Retirement Benefit Plans

Defined Contribution Retirement Plans

The Health SN stem has several defined contribution benefit plans. «bich are available tosubstantiallN all emploN ees meeting age and length of service requirements ParticipatingemploN ers annuallN determine the amount. if anN. of the Health SN stem's contributions to theplan Total benefit expenses under the defined contribution plans NN ere approximatelN $53.790and $46.250 for 2012 and 2011. respectivelN The Health SN stem also has deferred compensationplans for certain emploN ees Total expenses under the deferred compensation plans NN ere $1.521and $2.394 for 2012 and 2011. respectivelN

Defined Benefit Plans

Prior to 2001. substantiallN all emploN ees of four of the Health SN stem's subsidiaries NN erecovered bN noncontnbutor^ defined benefit pension plans. all of «bich have subsequentlN beenfrozen to ne« participants or terminated The Health SN stem's funding policN is to make theminimum annual contribution that is required bN applicable regulations. plus such amounts as theHealth SN stem maN determine to be appropriate from time to time

33




Upon the affiliation «tth MHSC (Peoria) during 2011. the Health SNstem inherited theirnoncontnbutor\ defined benefit pension plan. «btch has been frozen to ne« participants since2007 Pension benefits are based on compensation of emploN ees and Nears of service and areactuartallN determined As part of the accounting for the affiliation transaction. unrecognizedpension benefit costs in unrestricted net assets NN ere eliminated as the< NN ill not be recognizedthrough earnings on the Health SNstem's financial statements

As of December 31. 2012. MHSC froze its defined benefit pension plan Subsequent to this date.no additional benefits NN ill be accrued b-\ participants in the plan There is currentl-\ noarrangement to terminate the plan and contributions NN ill continue to the extent the plan remainsunderfunded Asa result of this plan freeze. a curtailment gain of $8.914 as recognized in theconsolidated statements of operations

The Health S\ stem expects to contribute $11.525 to the plans in 2013

The follo« ing tables set forth information about each defined benefit plan

Change in benefit obligation

Benefit obligation, beginning of v ear

Seri ice cost

Interest cost

Amendment'.

Actuarial lo„

Benefit, paid

Curtailment gain from reezing benefit-,

Benefit obligation, end of v ear

Change in fair Value of plan assets

Fall' \ Glue of plan assets, beginning of \ ear

Actual return on plan assets

Finplov er contribution,

Benefit, paid

Fair \ clue of plan a„et,, end of \ ear

Funded ,tatu,_ end of v ear

Accumulated benefit obligation

As of December 31, 2012

Des Cedar

Moines Peoria Rapids Waterloo

$ 201.605 $ 231.059 $ 124.563 $ 61.016

- 5.046 105 459

9.878 11.251 6.115 3.052

- - - 65

9.826 14.298 6.835 5.205

(7.7)1) (6.049) (3.925) (2558)

- (24.337) - -

213558 231.268 133.693 67.239

189326 124395 94.318 55.465

22.897 15.342 9.863 4.351

5.150 10.155 4.894 4.300

(7.751) (6.049) (3.925) (2558)

209.622 141843 105.150 61.»8

$ (3.936) $ (87.425) $ (28543) $ (5.681)

$ 213558 $ 231.268 $ 133599 $ 67.239

34




Liabilities recognized in the balance sheets

sheets

Current liabilities

Noncurrent liabilities

Amounts recognized in unrestricted net assets

but not iet recognized as components of net

periodic benefit cost

Net lo„

Net pnor,ei-\ ice credit

Amounts expected to be recognized

within one sear

Net lo„

Net pnor,ei-\ ice credit

Other ch anges in pl an assets recognized

in changes in net assets

Net (gain) lo-,-,

Pnor,er\ ice cost

Curtailment gain from reezing benefit-,

Amortization of

Net lo„

Prior ,ei-\ ice (cost) credit

Total recognized in change, in net assets

As of December 31, 2012Des Cedar


$ - $ (568) $ - $ -

(3.936) (86.857) (28.543) (5.681)

$ (3.936) $ (87.425) $ (28.543) $ (5.681)

$ 32.864 $ 583 $ 48.285 $ 21.608

- - - (3.76J)

$ 32.864 $ 583 $ 48.285 $ 17.848

$ 1.514 $ - $ 3.923 $ 1.825

- - - (278)

$ 1.514 $ - $ 3.923 $ 1.547

$ (1.257) $ 9.687 $ 4.773 $ 4.970

- - 65

(15.423) - -

(1.994) - (3.882) (1.567)

(42) 26 - 651

$ (3.293) $ (5.710) $ 891 $ 4.119

35




Weighted-aNe rage assumptions used to

determine benefit obligations for the

sear ended December 31, 2012

Discount rate

Rate of compen-,ation increase

Weighted-aNe rage assumptions used to

determine benefit costs for the

sear ended December 31, 2012

Discount rate

Expected return on plan assets

Rate of con4)en-,ation increase

Components of net periodic benefit cost

Sei-\ ice cost

Interest cost

Expected return on plan assets

Amortization of prior,ei-r ice cost (credit)

Recognized net actuarial lo„

Curtailment gain from freezing benefit'.

Net periodic benefit cost (benefit)



455% 455% 455% 455%

N/A N/A 5 00% N/A

5 00% 5 00% 5 00% 5 00%

6 30% 8 50% 8 25% 7 50%

N/A 3 25% N/A N/A

$ $ 5.046 $ 105 $ 459

9.878 11.251 6.115 3.052

(11.814) (10.730) (7.801) (4.115)

42 (26) - (651)

1994 - 1882 L567

- (8914) - -

$ 100 $ (3373) $ 2.301 $ 312

36




Change in benefit obligation

Benefit obligation, beginning of v ear

sel-\ ice cost

Interest cost

Actuarial 1o„

Benefit, paid

Benefit obligation, end of v ear

Change in fair Value of plan assets


Des CedarMoines Peoria Rapids Waterloo

$ 175.394 $ 219.916 * $ 106.552 $ 53.276

3.941 1.320 116 353

10.313 2.870 6.271 3.126

20.639 8.417 15.580 6.111

(8.682) (1.464) (3.956) (1.850)

201.605 231.059 124.563 61.016

Fan' \ clue of plan assets . beginning of\ ear 181 .094 118.836 * 89.605 50.064

Actual return on plan assets 9.639 5.441 3.730 1951

Enp)lov er contnhution, 7.275 1.582 4.939 3.300

Benefit, paid (8.682) (1.464) (3.956) (1.850)

Fan' \ alue of plan a„et, , end of \ ear 189.326 124.395 94.318 55.465

Funded status, end of v ear

Accumulated benefit obligation

$ (12.279) $ (106.664) $ (30.245) $ (5.551)

$ 201.605 $ 206.435 $ 124.349 $ 61.016

* A. of October 1.2011

37




Liabilities recognized in the balance sheets

Noncun-ent liabilttie,

Amounts recognized in unrestricted net assets

but not.iet recognized as components of

net periodic benefit cost

Net lo„

Net pnor,ei-\ ice cost (credit)

Amounts expected to be recognized

within one sear

Net 1o„

Net pnor,ei-\ ice cost (credit)

Other ch anges in plan assets recognized

in ch anges in net assets

Net lo„

Amortization of

Net lo„

Pnor,ei-\ ice (cost) credit

Total recognized in change , in net assets


Des Cedar


$ (12.279) $ (106.664) $ (30.245) $ (5.551)

$ 36.115 $ 5.569 $ 47.394 $ 18.205

42 - - (4.476)

$ 36.157 $ 5.569 $ 47.394 $ 13.729

$ 1.994 $ - $ 3.882 $ 1.567

42 - - (651)

$ 2.036 $ - $ 3.882 $ 916

$ 25.240 $ 5.569 $ 18.976 $ 6.087

- - (2.166) (859)

(46) - - 651

$ 25.194 $ 5.569 $ 16.810 $ 5.879

38






Weighted-a-serage assumptions used to

determine benefit obligations for the

year ended December 31, 2011

Discount rate 5 00% 500% 500% 500%

Rate of compensation increase 400% 3 25% 5 00% N/A

Weighted-a-serage assumptions used to

determine benefit costs for the

year ended December 31, 2011

Discount rate 600% 5 25% 600% 600%

E' ected return on plan assets 800% 850% 800% 800%

Rate of compensation increase 400% 3 25% N/A N/A

Components of Net Perioclc Benefit Cost

Ser\ ice cost $ 3.941 $ 1.320 $ 116 $ 353

Interest cost 10.313 2.870 6.271 3.126

E' ected return on plan assets (14.239) (2.594) (7.126) (3.928)

Amortization of prior sen ice cost (credit) 46 - - (651)

Recognized net actuarial loss - - 2.166 859

Net periodic benefit cost (benefit) $ 61 $ 1.596 $ 1.427 $ (241)

The Health SN stem has estimated the long-term rate of return on plan assets based pnman1N onhistorical returns on plan assets. adjusted for changes in target portfolio allocations and recentchanges in long-term interest rates based on public1 available information

Plan assets are held bN a bank-administered trust fund. «hich invests the plan assets in accordance«ith the provisions of the plan agreement The plan agreements permit investment in commonstocks. corporate bonds and debentures. U S Government securities. and other specifiedinvestments. based on certain target allocation percentages

39




Asset allocation is pnmartlN based on a strategy to provide stable earnings v bile still permittingthe plans to recognize potenttallN higher returns through a limited investment in egtuth securitiesTarget asset allocation percentages for 2012 and 2011 NN ere as follo« s

2012

Des Cedar


Equit secunties Not to e'sceed 20% 50% 45% 25%

FL'ed income Not to exceed 80 30 55 75

Pm ate nix estment fluids Not to exceed - 20 - -

2011

Des Cedar


Equit secunties Not to exceed 20% 60% 50% 25%

Freed nicome Not to exceed 80 25 50 75

Pm ate nix estment fiends Not to exceed - 15 - -

40




Plan assets are re-balanced quarterlN At December 31. 2012 and 2011. plan asset allocations areas follo« s

2012 2011

Des Cedar Des Cedar

Moines Peoria Rapids Waterloo Moines Peoria Rapids Waterloo

Cash equn alents and short-tern

inxestments 7 °o - 1 °o 5 °o - - 3 °0 3 °o

U S Treasure obligations - - - - - - 8 10

U S &ix ernment asenc\ obligations - - - - - - 10 12


Hone equd\ - - - - - - 1 1

Other - - - - - - 2 2


Cnix ernment - - - - - - 2 2

Non-sox ernment - - - - - - 3 4

Corporate bonds 9 - - - 11 °o - 27 34

Corporate bonds - PIF - - - - 69 - - 6

Equit securities

Domestic - - - - 3 - 7 3

Equit securities - PIF

Domestic - - - - 8 - 17 10

Inteniational - - - - 3 - 6 3

Mutual funds

Domestic - - - - 1 - 3 2

Inteniational 8 17 °0 18 10 3 13 °0 6 4

Emerging markets 7 - - 1 2 - 5 3

Ecludh 13 33 27 15 - 30 - -

Fi d income 56 30 54 69 - 27 - -

Othei - 4 - - - 4 - -

Hedge fund-of-funds - PIF - 16 - - - 26 - 1

100 °o 100 °o 100 °o 100 °o 100 °o 100 °o 100 °o 100 °o

Defined Benefit Plan Assets

The valuation methodologies and inputs used for pension plan assets measured at fair value on arecurring basis. as NN ell as the general classification of pension plan assets pursuant to thevaluation hierarchN. are described belo« There have been no significant changes in the valuationtechniques during the s ear ended December 31. 2012

41




Where quoted market prices are available in an active market. plan assets are classified «tthinLevel 1 of the valuation bierarchN Level 1 plan assets include exchange traded equities andmutual funds If quoted market prices are not available. then fair values are estimated bN usingquoted prices of securities «tth similar characteristics or independent asset pricing services andpricing models. the inputs of «bich are market-based or independentlN sourced marketparameters. including. but not limited to. Nield curves. interest rates. volatilities. prepayments.defaults. cumulative loss projections. and cash flo«s Such securities are classified «ithm Level 2of the valuation bierarchN Level 2 plan assets include U S Treasury obligations. U SGovernment obligations. collateralized mortgage and other collateralized asset obligations.corporate debt and PIFs In certain cases NN here Level 1 or Level 2 inputs are not available. planassets are classified «ithin Level 3 of the hierarchN The plans have no Level 3 investments

The value of certain investments classified as PIFs is determined using net asset value (or itsequivalent) as a practical expedient Investments for «bich the Health S-\ stem expects to have theabilit-\ to redeem «ith the investee «ithin 12 months after the reporting date are categorized asLevel 2

The follo«ing tables present the fair value measurements of the Health S-\ stem's pension plans'assets measured at fair value on a recurring basis and the level «ithin the fair value hierarch-\ in«hich the fair value measurements fall at December 31. 2012 and 2011

2012

Fair Value Measurements Using

Cash equn alents and short-term

llll est111ents

Corporate bonds

Mutual funds

Inten1at1011a1

Emerging 11 arkets

FCILl ltN

Fixed ll1C0111e

Other

Hedge fund-of-funds - PIF

Quoted Prices

in Active Significant

Markets for Other Significant

Identical Observable Unobservable

Assets Inputs Inputs

Fair Value (Level 1) (Level 2) (Level 3)

$ 18.891 $ 18.891 $ - $ -

18.273 - 18.273 -

66.021 66.021 - -

15.533 15.533 - -

112.235 112.235 - -

259.698 259.698 - -

6.016 6.016 - -

23S06 - 23.506 -

$ 520.173 $ 478.394 $ 41.779 $ -

42




2011


Quoted Prices





Fair Value (Level 1) (Level 2) (Level 3)

Cash equi alents and short-terns

m\ estments $ 3.830 $ 457 $ 3.373 $ -

U S TreasurN obligations 12.717 - 12.717 -

U S Go\ eminent agenc\ obligations 15.490 - 15.490 -

Asset-backed secunties

Houle eqult\ 1.122 - 1.122 -

Other 2.707 - 2.707 -

Mortgage-backed secunties

Go\ eminent 3.323 - 3.323 -

Non-go\ eminent 5.158 - 5.158 -

Corporate bonds 64.543 46 64.497 -

Corporate bonds - PIF 134.808 - 134.808 -

Equitv secunties

Domestic 13.457 13.457 - -

Equitv secunties - PIF

Domestic 35.814 - 35.814 -

International 12.796 - 12.796 -

Mutual funds

Domestic 6.639 6.639 - -

International 29.358 29.358 - -

Emerging markets 11.034 11.034 - -

Equitv 36.856 36.856 - -

FLLed income 34.277 34.277 - -

Other 5.415 5.415 - -

Hedge fund-of-funds - PIF 33.124 - 33.124 -

$ 462.468 $ 137.539 $ 324.929 $ -

43




The follo« ing benefit pad ments. «hich reflect expected future service. as appropriate. areexpected to be paid as of December 31. 2012

2013 $ 23,943

2014 25,531

2015 27,383

2016 30,645

2017 31,525

2018 - 2022 183,513

Note 11: Risk Management

The Health SNstem's hospitals are pnman1N self-insured for professional and general liabilitv foramounts of $5.000 per claim ($3.000 per claim for MHSC) and $30.000 in the aggregate annuallyProfessional and general liabilit-N insurance coverage is maintained on a claims-made basis. «ith aliabilit-N limit of $35.000 Other entities of the Health S-N stem maintain their professional andgeneral liability coverage on a clauns-made basis «tth no significant deductibles

The Health SNstem is priman1N self-insured for «orkers' compensation and emploNee health careclaims Workers' compensation claims individuallN and in the aggregate that exceed certainamounts are covered bN insurance

PropertN insurance is maintained «ith at least 90% replacement value coverage and minimaldeductibles Business interruption insurance coverage is also maintained bN the Health SN stem

The Health SN stem has accrued as other liabilities of $71.118 and $72.724 for self-insured lossesat December 31. 2012 and 2011. respectivelN These liabilities are presented on a gross basis andanN expected offsetting insurance recoveries are reported as a receivable The accrued liabilitiesare based on management's evaluation of the merits of various claims. historical experience andconsultation «tth external insurance consultants and actuaries. and include estimates for incurredbut not reported claims There can be no assurance that the accrued liabilities NN ill be sufficientfor the ultimate amounts that NN ill be paid for claims and settlements Also. in the ordmar\ courseof business. the Health SN stem is involved in other litigation and claims. none of «bichmanagement believes NN ill ultimatelv result in losses that NN ill adverselv affect the Health S\ stem'sconsolidated net assets or results of operations to a material degree

Cash and investments have been mternallv designated to be held for pad meats of claims. if an.«bich maN result from the self-insured or uninsured portion of liabilrth insurance and «orkers'compensation claims At December 3 1. 2012 and 2011. the cash and investments amounted to$35.383 and $37.049. respectivel\

44




Note 12: Lease Commitments

Certain property and equipment is being leased under long-tens noncancelable operating leasesIn most cases. management expects that. in the normal course of operations. the leases NN ill berene«ed or replaced bN other leases The total rent expense under operating leases for 2012 and2011 vas $50.919 and $46.499. respectivelN

The follo« ing is a schedule b< t ear of future minimum rental pay ments required undernoncancelable operating leases that have initial or remaining noncancelable lease terms in excessof one s ear as of December 31. 2012

2013 $ 33,368

2014 25,534

2015 18,742

2016 14,828

2017 12,163

Thereafter 48,375

Total minimum payments required $ 153,010

Note 13: Disclosures About Fair Value of Assets and Liabilities

Fair value is defined as the pace that «ould be received to sell an asset or paid to transfer aliabilitv in an orderl,, transaction bet\\ een market participants at the measurement date An entitNmust maximize the use of observable inputs and minimize the use of unobservable inputs NN henmeasuring fair value There is a hierarch-N of three levels of inputs that maN be used to measurefair value

Level 1 Quoted paces in active markets for identical assets or liabilities

Level 2 Observable inputs other than Level 1 paces. such as quoted prices for similar assetsor liabilities. quoted paces in active markets that are not active. or other inputs thatare observable or can be corroborated bN observable market data for substantiallNthe full term of the assets or liabilities

Level 3 Unobservable inputs that are supported bN little or no market activit" and that aresignificant to the fair value of the assets or liabilities

45




Financial Instruments Measured at Fair Value on a Recurring Basis

The valuation methodologies and inputs used for assets and liabilities measured at fair value on arecurring basis and recognized in the accompany mg consolidated balance sheets. as NN ell as thegeneral classification of such assets and liabilities pursuant to the valuation hierarch. aredescribed belo« There have been no significant changes in the valuation techniques during thesears ended December 31. 2012 or 2011 For assets classified «tthin Level 3 of the fair valuehierarch. the process used to develop the reported fair value is described belo«

Investments

Where quoted market prices are available in an active market. securities are classified «tthmLevel 1 of the valuation hierarchN Level 1 securities include exchange traded equities and mutualRinds If quoted market prices are not available. then fair values are estimated bN using quotedprices of securities «tth similar characteristics or independent asset pricing services and pricingmodels. the inputs of «bich are market-based or independentlN sourced market parameters.including. but not limited to. N field curves. interest rates. volatilities. prepayments. defaults.cumulative loss projections. and cash flo« s Such securities are classified «ithin Level 2 of thevaluation hierarchN Level 2 securities include U S Treasure obligations. U S Governmentagenc\ obligations. collateralized mortgage and other collateralized asset obligations. corporatedebt. and PIFs In certain cases NN here Level 1 or Level 2 inputs are not available. securities areclassified «ithin Level 3 of the hierarchN The onlN financial instruments «ith Level 3measurements that the Health SN stem holds are beneficial interests in trusts. «hich are discussedbelo« Inputs and valuation techniques used for these Level 3 interests are described belo«

The value of certain investments classified as PIFs is determined using net asset value (or itsequivalent) as a practical expedient Investments for «bich the Health S-\ stem expects to have theabilit-\ to redeem «ith the investee «ithin 12 months after the reporting date are categorized asLevel 2

Fair value detenninations for Level 3 measurements of securities are the responsibility ofmanagement Management contracts «tth a pricing specialist to generate fair value estimates on amonthlv or quarterly basis Management challenges the reasonableness of the assumptions usedand revie« s the methodology to ensure the estimated fair value complies «ith accountingstandards generall\ accepted in the United States

Interest Rate Swap Agreements

The fair value is estimated using fonNard-looking interest rate curves and discounted cash flo«sthat are observable or can be corroborated b\ observable market data and. therefore. are classified«ithin Level 2 of the valuation hierarch

46




Beneficial Interests in Trusts

The fair value is estimated at the present value of the future distributions expected to be receivedover the term of the agreement Trusts that have a definite duration based on the terms of the trustdocument. and NN here the Health SN stem has the ability to redeem the investment for thetindery mg assets at some future point. are classified «ithin Level 2 of the valuation hierarch-N dueto the nature of the valuation inputs For trusts that are perpetual in nature. in «hich thetindery mg assets NN ill never be available to the Health SN stem. the interest is classified «ithinLevel 3 of the hierarch-N

47




Fair Value Measurements

The follo« ing tables present the fair value measurements of assets and liabilities recognized in theaccompan\ ing consolidated balance sheets measured at fair value on a recurring basis and thelevel «ithin the fair value hierarchN in «bich the fair value measurements fall at December 31.2012 and 2011

2012


Quoted Prices





Fair Value ( Level 1) (Level 2) (Level 3)

Financial Assets

Cash equivalents and short-teem investments S 73.379 S 13.301 S 60.078 S -

US Tieasur obligations 6274 - 6274 -

US Government agenc\ obligations 3.123 - 3.123 -


Home equit 745 - 745 -

(_)thei 71 - 71 -


Government 2.149 - 2.149 -

Non-government 678 - 678 -

Certificates of deposit 379 379 - -

Corpotate bonds 5.933 - 5.933 -

Equrt\ securities

Domestic 14201 14201 - -

International 501 501 - -

Mutual funds

Domestic 2.093 2.093 - -


Emeigmg mallets 22.842 22.842 - -

Index 4 240 4240 - -

EquitN 379.504 379.504 - -

Fned income 468.494 468.494 - -

(_)thei 14.711 14.711 - -


Insutance policies 4.419 - 4.419 -

Beneficial mtetest in trusts 12.390 - 5.787 6.603

Financial Liabilities

Interest late s\xap agreements (net) (92.053) - (92.053) -

S 1.129.032 S 1.081.557 S 40.872 S 6.603

48




2011


Quoted Prices





Fair Value ( Level 1) (Level 2) (Level 3)

Financial Assets

Cash equivalents and short-teiminvestments S 205.626 S 17.410 S 188.216 S -

U S Tieasur obligations 23.249 - 23.249 -

US Government agenc\ obligations 8.140 - 8.140 -


Home equit\ 17.691 - 17.691 -

(_)thei 6.703 - 6.703 -

Moitgage-backed securities

Government 59.252 - 59.252 -

Non-government 40.893 - 40.893 -

Certificates of deposit 474 474 - -

Corpotate bonds 53.718 - 53.718 -

Corpotate bonds - PIF 190.763 - 190.763 -

Equrt\ securities

Domestic 120.855 120.855 - -


Equrt\ securities - PIF

Domestic 149.383 - 149.383 -

International 73.392 - 73.392 -

Mutual funds

Domestic 19.659 19.659 - -

International 85.031 85.031 - -

Emeigmg markets 58.811 58.811 - -

Index 3.192 3.192 - -

EquitN 30.383 30.383 - -

Fned income 67.927 67.927 - -

(_)thei 4.780 4.780 - -


Insutance policies 4.199 - 4.199 -

Beneficial mtetest in trusts 11.521 - 5.497 6.024


Interest late s\xap agreements (net) (97.522) - (97.522) -

S 1.239.699 S 408.657 S 825.018 S 6.024

49




Level 3 Reconciliation

The follo« ing is a reconciliation of the beginning and ending balances of recurring fair valuemeasurements recognized in the accompany ing consolidated balance sheets using significantunobservable (Level 3) inputs

Balance, beginning of year

Gain on beneficial interests m perpetual trusts

Balance , end of year

Financial Instruments Not Measured at Fair Value

2012 2011

$ 6,024 $ 5,487

579 537

$ 6,603 $ 6,024

The fair value for certain financial instruments approximates the cam ing value because of theshort-term matuntv of these instruments. «btch include cash and cash equivalents. short-tenriinvestments. receivables. accounts payable. accrued liabilities. estimated settlements due to third-part\ payers. and other current liabilities

The carr\ ing amount of the variable rate bonds and notes is assumed to approximate fair valueFor the fixed-rate bonds. the estimated fair value is based on quoted prices for similar liabilitiesand is obtained from a financial institution that deals in these tvpes of instruments Other debtobligations are insignificant. and the cam mg amounts are assumed to approximate fair value

Estimates of fair values are subjective in nature and involve uncertainties and matters ofsignificant judgment and. therefore. cannot be determined «tth precision Changes in assumptionscould affect the estimates The fair market value of the Health S-\ stem's financial instruments atDecember 31 approximates the carr\ ing value except as follo« s


Quoted Prices




Carrying Assets Inputs Inputs

Value (Level 1) (Level 2) (Level 3)

December 31, 2012


Long-terns debt, e'chiduig capital

leases and interest rate swaps $ 784.490 $ 825.639

December 31, 2011


Long-terns debt, e'chiduig capital

leases and interest rate swaps $ 779.426 $ 803.109

50




Note 14 : Temporarily and Permanently Restricted Net Assets

TemporanIN restricted net assets are available for the follo« mg purposes or periods as ofDecember 31

2012 2011

Purchase of equipment $ 18,235

Indigent care/operations 27,139

Health education 8,182

For use m future periods 10,220

Other 1,159

Total temporarily restricted net assets $ 64,935

PermanentIN restricted net assets are restricted to the follo« mg as of December 31

2012

Investments (generally including net investment

appreciation and depreciation) to be held m

perpetuity (income is restricted)

Investments (generally including net investment

appreciation and depreciation) to be held m

perpetuity (income is restricted for various

purposes as directed by the donors)

Total permanently restricted net assets

$ 25,150

$ 13,594

29,121

6,217

5,071

3,821

$ 57,824

2011

$ 24,291

24,123 22,778

$ 49,273 $ 47,069

51




Note 15: Asset Retirement Obligation

Accounting principles generallN accepted in the United States of America require that an assetretirement obligation (ARO) associated «ith the retirement of a tangible long-lived asset berecognized as a liabilitN in the period in «hich it is incurred or becomes determinable (as definedbN the standard) even NN hen the timing and/or method of settlement ma-N be conditional on a futureevent The Health S-N stem's conditional asset retirement obligations primanlN relate to asbestoscontained in vanous buildings Environmental regulations in the states NN here the Health S-N stemoperates require the Health S-N stem to handle and dispose of asbestos in a special manner if abuilding undergoes mayor renovations or is demolished

A summarv of changes in asset retirement obligations. «bich are included on the accompany mgconsolidated balance sheets in other long-term liabilities. during 2012 and 2011 is included in thetable belo«

2012 2011

Liability, beginning of year

Liabilities incurred

Liabilities settled

Accretion expense

Liabilities assumed m affiliation with MHSC

Changes in estimates, including tinging

Liability, end of year

Note 16: Commitments and Contingencies

$ 12,798 $ 12,108

14 -

(494) (1,052)

1,066 718

- 1,024

414 -

$ 13,798 $ 12,798

The health care industr is subject to numerous la« s and regulations of federal. state and localgovernments Compliance «ith these la«s and regulations can be subject to government revie«and interpretation. as NN ell as regulator\ actions unkno« n and unasserted at this time Governmentactivrth has increased «ith respect to investigations and allegations concerning possible violationsof regulations b-\ health care providers. «hich could result in the imposition of significant finesand penalties as NN ell as significant repayments ofpreviousk billed and collected revenues forpatient services The Health S-\ stem has a corporate compliance plan intended to meet federalguidelines Asa part of this plan. the Health S-\ stem performs pen odic internal revie« s of itscompliance «ith la« s and regulations As part of the Health S-\ stem's compliance efforts. theHealth S-\ stem investigates and attempts to resolve and remedy all reported or suspected incidentsof material noncompliance «ith applicable la« s. regulations or policies on a timely basis TheHealth S-\ stem believes that these compliance programs and procedures lead to substantialcompliance «ith current la« s and regulations

52




The Health SN stem is in various stages of responding to inquiries and investigations Thesevarious inquiries and investigations could result in fines and/or financial penalties. «hich could bematerial At this time. the Health SNstem is unable to estimate the possible liabilitN. if anN. thatmaN be incurred as a result of these inquiries and investigations. but the Health SN stem does notbelieve it «ould matenallN affect the financial position of the Health SN stem

Guarantees

The Health SN stem has guaranteed approvmatelN $23.040 and $24.747 at December 3 1. 2012 and2011. respectivelN . relating to long-term debt for the construction of a cancer center. a medicaloffice building that includes clinic and office space. a fami1N practice residencN programeducation facility. and debt related to joint ventures

Employment Contracts

The Health SN stem is committed for noncancelable phi sician emploN meet contracts in thefollo« mg amounts. prior to inflationan adjustments and bonuses based on future events

2013 $ 1,914

2014 845

2015 24

Patient Protection and Affordable Care Act

The Patient Protection and Affordable Care Act (PPACA) NN ill substantiall-\ reform the UnitedStates health care s-\ stem The legislation impacts multiple aspects of the health care s-\ stem.including mans provisions that change pa-\ ments from Medicare. Medicaid. and insurancecompanies Starting in 2014. the legislation requires the establishment of health insuranceexchanges. «bich NN ill provide individuals «ithout emplo-\ er provided health care coverage theopportunitv to purchase insurance It is anticipated that some emplo-\ ers currentl-\ offeringinsurance to emplo-\ ees NN ill opt to have emplo-\ ees seek insurance coverage through the insuranceexchanges It is possible that the reimbursement rates paid b-\ insurers participating in theinsurance exchanges maN be substautiall-\ different than rates paid under current health insuranceproducts Another significant component of the PPACA is the expansion of the Medicaidprogram to a «ide range of ne« 1v eligible individuals In anticipation of this expansion. pay mentsunder certain existing programs. such as Medicare disproportionate share. NN ill be substantiall-\decreased Each state's participation in an expanded Medicaid program is optional

The state of Io«a has not indicated «hether it NN ill participate in the expansion ofthe Medicaidprogram The ultimate impact on the overall reimbursement to the Health S-\ stem of an-\ decisionto be made cannot be quantified at this point The state of Illinois has currentl-\ indicated it NN illparticipate in the Medicaid expansion program

53




The PPACA is extremelN complex and maN be difficult for the federal government and each stateto implement While the overall impact of the PPACA cannot currentl,, be estimated. it ispossible that it NN ill have a negative impact on the Health S,, stem's net patient service revenueAdditionally. it is possible the Health SNstein NN ill experience payment delays and otheroperational challenges during PPACA's implementation

Note 17: Subsequent Events

Subsequent events have been evaluated through Apn125. 2013 . «hich is the date the financialstatements NN ere issued

Certain provisions of the Federal Government's Budget Control Act of2011 « ent into effect onJanuar\ 1. 2013 Among these are mandator\ pad ment reductions under the Medicare Fee-for-Service program . kno« n as sequestration The American Taxpmêr RehefAct of2012 postponedsequestration for M o months. but the order as issued b-\ President Obama on March 1. 2013Under these provisions . Medicare reimbursement NN as reduced b-\ t« o percent on all claims «ithdates -of-service or dates-of-discharge on or after April 1. 2013 Under current la«. sequestrationis scheduled to last through 2021 The continuation of these pad ment cuts for an extended periodof time NN ill have an adverse effect on operating results of the Health S-\ stem

On April 16. 2013. the Health Sv stem began being publicalk kno« n as Units Point Health Thisname change reflects the transformation of clinical processes under« a< «ithin the Health Sv stemand the adaptation to better address the health care needs of communities. including building amodel of delivering health care that coordinates care around the patient «hile focusing onimproving the qualit\ of care and reducing costs The legal name of the parent NN ill remain Io« aHealth Sv stem. «ith the UnitvPoint Health name reflecting a doing business as (d/b/a) This namechange impacts the subsidiar\ entities as NN ell As part of this transition. some of the HealthSv stem's subsidiaries NN ill be changing their legal names. but most NN ill just be changes in thed/b/a

54

Iowa Health System and Subsidiaries Schedule 1Consolidating Schedule - Balance Sheet Information

(In Thousands)

December 31, 2012

AssetsIHDM MHSC TRHS SLHC AHS SLHS THS TRI-ST IHP IHHC IHS & Other Eliminations C onsolidated

Current AssetsCa h h rind is 1 1 eqt Jeol. S 29 -69 S 3o 131 S 1 - 134 $ 1 - '_ « $ (Sc- $ 8 49 $ 9 133 $ 1 131 S 3 138 $ 3 29- $ 9 393 $ $ 1411 9911

Short-le, i -unent, 21169- 4! - __- 9o-13 4 384 2 81 1 449 1 2o' < 631 2 123 In n24 644o84-l, hoated a, to u,e - required for aurent liabiluie, 1 822 3 312 2 -34 9, I n-U 138 144o'Patient auounik reienable le- estimated uniollel iblel 94 16(1 11941 164oo 12424 21 842 23 cnn 1"a6 Ic8o4 19 n68 I-6Th 3-8 «<

Other -enable, 8884 cncn 1 638 1912 29o' 2 318 21143 31-2 1813 2 tic- -486 43 318

Ilnentorie, 11261 4 114 9231 "'1 16-1 3 1S' 3161 22c8 2 184 12« 69 cn91u

Prepaid e\pell- 2486 2 913 1 426 1 136 I lug 69- 168 c'9 4-4 In! 14 182 26111

Due trom affiliate, 4o (122) 433 69 S3 In 2-3 1-616 191 394-6 (1S 169)

Total cunelll -1, 1-34822 991143 96646 9- InS 4--98 42 62_- 34 ((49 28421 to 368 '_-1194 Sn 63o (18 c69) -1869-

Assets Limited As to Use noncurrent

Held b^ Inr tee under bond indenture agreement, 2 92c 2 92c

Inlern,ll^ Jeîenaled 461 123 3 'oi IC 3n8 Iln Th 1228 49'96 4cn22 18 o61 c26 882 4'2

Total -et hoated a to u,e noniunenl 464 ((48 3 'IH 112 3n8 Ito -o3 1 228 49 -96 4 ((22 cS n6< c26 881 39-

Properh Plait mid Equipment net 26o842 244 143 112 ((6- 166Th) 1n4 992 -6 Inc -S -43 lo-1-6 22 621 6 c2o 16o849 1 324 488

Other Long term Imeslmeots 4- IH 3 161 196 2 368 22 21o 99 988 1 298 13 SI- 299 34 168 18 I(( 8 189 413((49

Imeslmeots in Joint Neotores mid Other hneslments 69628 I (n(9 "u9 11 113 - 161 12 321 4 613 4 186 c1- _"92 (S3 189) -4 6o8

Conlrlbuhons Rerennble net 6846 1-8- 3a« 31 311 2821 3464 1 324 61-1 611-9

Other 882 1 Gall 1 1SS 1 666 3 «1 381 1 3-o 1- -41 12 21' 23 941

Due From Affiliates 1c)I 911 461 141 (461 '8I)

Total -et S 1 II?? -41 S 132 -19 S 416 141 S 449 24! S 268o93 S 186111111 S 1'S 9-S S 148 161 S Io8 3o2 g 1"3a S Io 288 S (6n' 143( S 3 cnc 319


Current LiabilitiesCu rent maturit ies of lone-term debt S 2o6 S 1 361 S 1 112 S S 211 S I I S 366 S S 4-2 S 191 S 64 8-9 S S -3 II"

4uountI payable 22999 23 San 16-96 12(128 8-31 9 131 4689 1 148 x16- 3869 In 849 12261

4-Ued pa^TOll 31 1189 11 8(11 14 -1- 211511 11 -93 6111 - 36o 146- 199o- 1648 9 1-3 144 ((46

4LaUed mle-l 12 22o - 9-- 8 2(19

ESInlated 111-c H, due to Third-part paler, 3 863 31 368 8 36o 4((9I 6 214 1 -98 8n2 814 696 IS In 6Duero affiliate, IS 713 c-1 S-SS lnnc -4-2 6686 1«9 13S6 4n 1(1(12 26n (18 399( -

OIhercurrent liabiluie, 12646 8 113 -3n9 6-SS 4 838 24-1 231- 2 832 6n6c 9c2 614( 1 (1-4) 6n 29

Total cunenit liahilitie S9n6S 81268 1-482 13 122 39 68 266(18 F1(93 1164' 31 uc1 12 318 lug n2c (1S 1-3) 46621-

Long term Debt net '_6139 9911111 14 -22o 3 3o 34 9443 36o c-- 446 -2- 181

Other Long term Llnblhhes 292 -8 InSnS6 12 111 3S41S 13 811 6213 111-o SITS 23n6- 1(122 114 SII 318 831

Due to 4frihnles 128 -98 124 4o o -1 -82 cS 9n n 14 6n 21 1 440 6 -13 In c (461 -81)

Total liabilitle, 2-3 6S3 288 364 2n5 -13 163 321 111 8( 1 9 S' 462 48 o3 23 2n5 63 161 13 Sal -94 282 (124 318) 1 112 6i'

Net Asset,

Unrellniled -22 694 23o 23S 196611 24- 4-9 148 3n' 94 -18 124 u3S 118 -86 44 -41 38o'6 (441113) (83 181) I S3S 114

Temporarily retailed to"' to 133 9126 211 321 a 149 2211 4 393 39S4 333 c9 64 931

Pemlvlenlh reSlniled 16142 3984 1 OF 18 112 3828 1 169 1 Sax 2182 492-3

Total net a-et -49o'8 244 311 2n' 3SS 281 916 116 284 9S 138 13n 2-c 124 91' 44'41 3S 3S9 (43 994) IS3 1511 1 9c2 '"

Total I abiluie, and net a-et, S 1 (122 -41 S 132 -19 S 416 141 S 449 241 S 268o93 S 186 ooo S 1'8 9'8 S 148 161 S Ins 3n 2 S 1" 3a S -Io 2 88 S (6n ' 14 3( S 3 cn c 319

Der Ilion.

IHDM7 - Io,,n Hr:Jdi - Dr, M1oai mid Sob-dnv- (Dr, Mooe,) THS -Trine, He old i S,-,a, Inc mid Sub ,i ii- (Font Dodpr(

NIHSL- M1rlhodi,I H"11, Srnic L oil) mid Sob,idme, (Poona( TRI-ST - Fole, Trr Sia Hrahii Group laic mid Sob-ho,- (Dub uque)

TRH,-Tnnih Rnion:JH"11, S,Irm mid Sub-ho,- ( Rock Wood) DIP- Io,,n He oldi P h, -on, C (link',

SLHL - SI Luke ', Hr:Jlhc an mid Snb,idi- ( L eda R.y)id-( DIHL- Io,,a Hr : Jlh Home (an

AHS - Alba Heold, S-rm, Inc mid Sub,id me, (wmrrloo( H-S C I Mier - to,,, Heold, S ,,Irm mid other Sub-d me,

SLHS-SI Luke ', Hr:JIh ,,Agra Inc (Sioux C,,)

Iowa Health System and Subsidiaries Schedule 2Consolidating Schedule - Revenue and Gains, Expenses and Losses Information

(In Thousands)

Year Ended December 31, 2012

IHDM MHSC TRHS SLHC AHS SLHS THS TRI-ST IHP IHHC IHS & Other Eliminations ConsolidatedRevenue

Patient erg ILe revenue (n el of ionlraduaI aI Io an e.l S 636 too S 314 89o S 4((4 ((2- S 361 c S 213 882 S 163 234 S 136 264 S 9- 229 S 22342o S 92 6(8 S S I 12(( S 2 686 (((8

Proni.ion for patient uncollewble account. (31-11) (19 uu9) C9-43( (149u2( I - 9331 (13113) (6 u2c) (3929) (4 6M8) (131 413)

Net patient erg ice revenue 6o4 349 331 881 3-4 2S4 31o 611 2Mc 949 149 -21 13o 239 93 3(w 218 812 92 6((S I 12M3( 2 114 191

Ca ll eroperaunerev enue,

---S3 21-a9 12864 214-a 11 o31 611- 12 193 1684 23 823 2631 196481 (1-1411( 1-1263

Net a..el, relea .ed trot, reriwom u.ed for operat ion, 2 94- 643 '((2 -35 sl l las lot --3 128 6 686Total re%enue 631 (r9 3622-3 3S- S1(( 3-2861 21-491 1162-S 1429-- 99oSc 242 631 96(H6 1966(9 (1-6614( 2 -32 144

Elpe11Ses

Salarie. and v,aee . 22- 1-1 118 821 129 --9 142 2(6 -1 621 C -2S 48 119 31 333 -6 312 49 888 12 362 1 ((((a 38

Phi -Ian L01111 matron and .erice. 139((6 46119 323M8 3((8« 16 234 1349o --?s3 4 9((8 1((4 119 --- 16 Is o-al 324 361

Employee benefit . 1S-SS 22992 32 118 1119 18 13- 13-1o 1192c SMca 1-412 11 334 too--(( (2 (H1) 24((868

Supplie. 11-ol- cM9c6 -6 IS< 19 181 4- 3-- 2-6L( 2((((43 14 196 188-4 13424 boo 44 913

Other e\peme. 114 14)) -3 313 91 -31 -4 298 3S 361 33 -98 26 163 21 -3S 1o836 14 328 86438 (1-o64-) 41S 941Depreciation aidanonizaion 333-o 246-6 1-424 1-843 1269)) -1« 6424 1911 44oo 2M26 319-6 163 891

Inlet-et -669 24-6 6S3' 3861 3 ((43 2-43 1 161 4-- 1o8 44 2- c9(( (24683) 31-3a

Propi.ion for uncollewble account. Sc 122 ii c 22 32 6-S 1 ((caTotal e\peme. 612 186 339 393 386 X44 W 482 2M- 889 1c1 316 141 X32 9c (H- -2 cMI 91 949 2M9 -c2 (2M2 41 c1 2 Cl 146

Opernhng Income (Loss) 22 893 22 SS)) 13M6 - 383 9 6M2 a 962 144 1 4 o68 (29 866) 4 ((6- 113 1431 21 SMH 61 398

Nonopernlmg Gains (Losses)111-11nenl income 18418 139-1 169-- 141u1 1u612 1-o6 193(( 6411 33M4 2u1- 216- 1132-I 134 811Other net 3'2 3 9-8 - 8 61 lion (113) 128 6 (3 32o) 1 382

Total nonoperalineetim do..e.l net c8 83o 1-913 1 249 14 1M9 IM-13 696 cSl- 6W 3 31)) 2MF I-s31 Is 32-I 13619-

Revenue Over ( Under) Expenses S 81 -23 S a)) 833 S 18 «< S 21 492 S 2)) 311 S IM 6c8 S 262 S 1)) 6c1 S (26 116) S 6o84 S (13 896) S 2o4-4 S 19- 19,

Der .lion.

tHDM7 - loge Hr ahii- Dr, Moat mid Sob-dnv- ( Dr, Mfoomr,) THS-Trine, Hrahii S, lr m, Inc mid Sob,i diar- ( Fo, Dodpr(

NDISL - MMHhodi,I Hr:JIh Srn is L oil) mid Sob,idiarir, (Poona( TRI-ST - Fole, TrrSlmr, Hr:Jdi Group Li, mid Sob-hor- ( Dub uque)

TRHS-Tnnih Rnion :JHr:JIh S, -n mid Sub-hor- (Rock Wood) DIP- loge Hr : Jdi Ph, -on, C Limit',

SLHL -Si Luke' ,Hr:Jlhc ore mid Snb,idi- ( L ed:v R.y)id,l DIHL -Io,,a Hr : Jlh Home Core

AHS - Allen Hr:Jih S, 1rm, Inc mid Sub,idiar- ( wmrrloo( H-S C deer - Iona Hr : Jih S, 1rm mid other Sub,id me,

SLHS -SI Luke' , Hr:Jlh S, -n Inc (Sioux L n, )

Iowa Health System and Subsidiaries Schedule 3Iowa Health - Des Moines and Subsidiaries (Des Moines)

Consolidating Schedule - Balance Sheet Information

(In Thousands)

December 31, 2012

AssetsIHDM CIHC IHF CIHP IHHC IHP Eliminations Consolidated

Current assets

Ca h .md r ash egtu lens. S S 23 6-4 S i2o S i S S S S 29 -69

Spoil-lent) ul-lnlenik 20 69- 20 69-

A et hunted as to u e - reywred for r w-renl habilu- S 822 S 822

Patient arr ounik reren able l- e^tunaled Imroller nble^ 94 16(1 94 16(1

Other rerenable, 3 3_3 S 1 3 884

Inenlo- 11 li9 UC 11 261

Prepad e\pen e 2414 3(1 42 2436

Due from atfiliate, 2 - i 823 F 64-1 41(3

Total r w-renl iset 1-4 ((31 6 i- 6441 64L 1-3482


Held b) Inrlee under bond indenture aereenienik 2 925 2 925

Inlem.ilh deg haled 39243(1 63643 461 123

Total 1s et Imuled , to u e nomunenl 39i 4ui 68 643 464 ((43

Propern Plant and Eqw pment net 214 iii -a 26 211 '_6(1842

Other Long- term hi -Intents 9 33(1 3- 633 a- ((13

In eslments in Joint A entures and Other Im eslments 29 126 22 4 i43 114-6 2i 61i (231i4) 69 628

Contributions Recen able net 6846 6846

Other 333 44 882

Due Front Affiliates 2 543 (2 543)

Total accelc S S 34 i 333 S 11392 1 S z- 241 S 314-6 S 2 i 61 i S (33349( S 1(1_=-a1


Current Liabilities

Cturenl nlaltlnl- of lone-lent) debt S $ :u6 S S S S S S :u6

Orr ounlc pad able 22 298 1 -uu 22 999

Orr rued pad roll 3u 91(3 186 31 u39

4rrnued ml ere t 12 12

Eamialed êlllemenik due to Ilurd-pang paler. 3 363 3 363

Due to 23 3u3 361 I -T F 64-) 13 213

( )(her r urrenl habifit- 12 i t- 129 12 646

Total anent habiWiec 93 6(( --_ _ ii6 F 64-) 39 (163

Long - term Debt net 26 139 26 139

Other Long- term Liabilities 28 1i- 1 121 29 2-8

Due to Affiliates 128 ((13 3 323 (2 543) 128 -93

Total habtWtec 2-6 321 1 6-3 i 334 (1u 1911 2-3 633

Net assets

Unreanr led iai 999 86 _a- 31 3i- 114-6 2i 611 -:_ 694

Tempor nl^ -l-led - 319 9 363 (696o) to 222

Pemiaienll^ -lnrled 16 194 16 142 (16194) 16 142

Total net -etc 1 69 1 12 11== i: 313 5 334-6 2 i 61 i (231i4) -49 ui3

Total Ilabiflnec and net -etc S S 34 i 333 S 113 92 1 S z- 241 S 114-6 S 2 i 61 1 S (33 349) S 1 (12= -41

Definition.

IHDA1 - Io,,a Hr:Jlh - Dr, Nloin- IHH(- Io,,a H-1 11, Hone C :ur IHDA1 potion

(IH( - C IHP - Io,,n H-111, C (tinicy IHDAM you on

IHF - Io,,n Hr :Jlh Foundation

U IHP - C rntr:J Io,,n H-111, Proprnir, (orfloranon

ReNenue

Patient en ice re enue (net of contractual aIlo ance,)

Pros i,ion for patient uncollectible account,

Net Patient Ven ice re%enue

( )ther operating re%enue

Net a,,et, relea,ed from re,triction used for operation,

Total re%enue

Expenses

Salarie, and ^âge,

Phi,ician compen,ation and en ice,

Emplo\ ee benefit,

Supplie,

( )ther e\peme,

Depreciation and amortization

Intere,t

Pros i,ion for uncollectible account,

Total e\penme,

Operating Income (Loss)

Nonoperating Gains

In, e,tment income

)ther net

Total nonoperatmg gam, net

ReNenue ONer (Under) Expenses

Definition

IHDNI - Iowa Health - De, Nlome,

Cl HC - Central Iowa Hospital Corpoi anon

IHF - Iowa Health Foundation

CIHP - Central Iowa Health Piopertie, Corporation

Iowa Health System and Subsidiaries Schedule 4

Iowa Health - Des Moines and Subsidiaries (Des Moines)

Consolidating Schedule - Revenue and Gains, Expenses and Losses Information

(In Thousands)


IHDM CIHC IHF CIHP IHHC IHP Eliminations Consolidated

$ S 63663o $ $ $ $ $ u3n S 636 1 nn

(31751) 31751)

6o4879 u3n 6o4349

46 718 344 2264 17 s(S 9113, 783

9'-4 2 3

-

_ 947

6S4 ,21 23 344 2 264 ( 17 s(8 9 6, 63s079

226 H26 1 X187 58 2_7 171

S7976 (4(17(1) 5; 9(16

5C 488 276 _4 5C 788

117o48 6 3 117 (157

78 116777 61_ _ 168 (S495 114141

31 9611 16 1 394 33 37o

7465 _ 4 7669

Cs C5

78 6 1 5 S_5 1 997 ; SS I 9 565 61 2 186

7838 696 1 974 1 493 264 ( 17 C 2 893

44336 11 112; 1 nn9 -logo >8458

3 7_ 372

44336 11 39S 1 nn9 -logo >8 8311

IHHC - Iowa Health Home Cale IHDNI portion

IHP - Iowa Health Ph\,icam & Clinic, IHDNI portion

(n00

Assets

Current Assets

Ca.h and ca,h equn alent,

Shot t-tel in un e,tment,

Patient account, iecen able le- e,tmiated uncollectible,

thei Iecenable,

In entol le,

Prepaid e\peme,

Due Iiom attiliate,

Total cunent a-et,

Assets Limited AS to Use, noncurrent

Inteinalh de,ignated

Properh, Plant and Equipment, net


Investments in Joint \ entures and Other Investments

Contributions Recen able, net

Other

Total a-et,


C urrent Liabilities

Cunent matul tie, of long-term debt

acco uith pad able

Accrued pad l of l

accrued mtele't

E,tunated ettlenient, due to tluud-party pad ei,

Due to attiliate,

thei current habilitie,

Total current habilitie,

Long-term Debt, net


Total habilitie,

Net Assets

I Tm e,tI Icted

Tempoiaol\ Ie,tocted

Permanentl\ Ie'tiicted

Total net a-et,

Total habilitie, and net a-et,

Definitions

NIHSC - Nkthoch.t HeAth Seri ice. C oq)oration

NINIC I - Nletlmdi,t Medical C enter of Illmoi,

NISI - methodi t Sen ice, Inc

NINIC F - Nkthoch.t Nkchc l Center Foundation

Iowa Health System and SubsidiariesMethodist Health Services Corporation and Subsidiaries ( Peoria)

Consolidating Schedule - Balance Sheet Information( In Thousands)

December 31, 2012

MHSC MCI MSI MMCF Eliminations Consolidated

$ _ -61 $ $ 199 $ _9o $ $ 3o 3^

41o 41o

66 55 ^t-5 55 941

1lfn 4 696 1-4 > n>n

346 3 IM8 4 1 s4

1(1_938 953

1_8 44 3 (4611) -

3 491 99 495 3-3 _95 (4611) 99l143

3 -ol 3 -nl

- 166 669 -- 84- 244 543

14 2511 1- 946 165 196

359 iii-45 1-1_ (18 _3-) 13(1(19

1 318 144o

$ 3999 $ 454965 $ 8 ( l $ 1S3S3 $ 84 1 $ 53_-19

$ $ 5 365 $ $ $ $ 5 365

9- 23 494 _39 _3 ^t3l l

11_-5„i i

11 8ol

i

31 36 31 36

1 186 -nn 3 296 (4611) 5-1

-1-3 911 3^ 8 113

18 o9 -9595 444 3^ (4611) 8 1_6

99u1u 99u1u

1o-9-> 1 1 1 1 8o8 60

18 o9 _8 658 o 4440 146 (4611) 2," 364

219o1 154268 3-8o 1(1(196 (1(1(196) 23o_38

1(1133 41-- 1-11--i 1(1133

398 4 3964 (3964) 3984

_ 19o1 16 38 5 3 -8 ii 18 _3- (18 _3-) 2443^^

$ 3999 $ 454965 $ 8 ( l $ 1S3S3 $ 84 1 $ 53_-19

Schedule 5


Methodist Health Services Corporation and Subsidiaries (Peoria)Consolidating Schedule - Revenue and Gains, Expenses and Losses Information

(In Thousands)


MHSC MCI MSI MMCF Eliminations ConsolidatedReaenue

Patient sentce te%enue (net ofconttactual allo%xai ces)

Pt o\ tston fot patient uncollectible accounts

Net patient set\ ice te%enue

Other opetatmg te%enue

Net assets released fiom Iestttctions used for operations

Total Ie%enue

Expenses

Salaries and ages

Phv stcian compensation and sen ices

Emplo,, ee benefits

Supplies

Other expenses

Dept eciation and amortization

Interest

Total expenses


Nonoperating Gains

In estment Income

Other. net

Total nonopetatmg gain,,, net

Rea enue Owr (Under) Expenses

Definitions

NIHSC - Methodist Health Semces Coipolation

nInICI - nethodistMedical Centei ofIllinoss

NISI - Methodist SeiN ices Inc

1INICF - Methodist Medical Centel Foundation

$ ?74 $ 355.978 $ $

(19.009)

574 336.969

12.190 25.069 7.578

202

12.764 362.240 7.578

46.119

2.662 2 0.580 20

9 -50.93.4 11

$ (1.662) $ 354.890

(19.009)

(1.662) 335.881

(19.299) 25.749

643

652 (20.961

174

45 (315)

2

626 (20.646)

13.113 337.824 8.570 847 (20.961)

(349) 24.416 (992) (195)

12 12.909 1.054

3.061 917

12 15.970 1.971

362.273

118.821

46.119

22.992

50.956

73.353

24.676

2.476

339.393

22.880

13.975

3.978

17.953

$ (337) $ 40.386 $ (992) $ 1.776 $ - $ 40.833

0)O

Iowa Health System and Subsidiaries Schedule 7Trinity Regional Health System and Subsidiaries (Rock Island)


(In Thousands)

December 31, 2012

AssetsTRHS TMC VNHA THE THE TM IHP Eliminations Consolidated

C urrent assets

Ca,h and ca,h equn alent, $ 37'_ $ 12 107 $ $ 300 $ 1 509 $ 3 '_46 $ $ $ 17 S34

Short-term in e,tntent, 687 7 4 S33 7

A -et, limited a, to u,e - iequued tot cunent liabilities III- III-

Patient account, tecen able le- eStmtated uncollectible, 48 S'S 463 7 409 S6400

Other tecen able, 76 1 s62_ 1638

Im entone, 7 436 316 1 479 91_31

Prepaid e\peme, 1 130 3S 33 1 426

Due hour affiliate, 3 8246 14 6 (8391)

Total cunent a-et, 375 S3 S'_'_ 34S '_ 33S 184611 (S 391 96646

Wet% Limited %s to Use, noncurrent

Inteniall deStonated 13 8S9 1'_S 40'_ 4 'S3 S 794 IS,_ 308

Property , Plant and Equipment , net 133 519 480 18 068 Is'_ 067

Other Long-term Investments 2 134 '_34 '_ 368

Imestmenh in Joint \ entures and Other Inv e,J vents 749 7 391 (S67 ( 116 3 613 (5 593 ( 7 709

Contributions Recenable, net 3 -1» 3 -1»

Other 1 363 1 588

Due from %ffihates 5 700 (5 700) -

Total i -et, 7 16 983 $ 361 893 $ X67 7 -1 832_ 931 $ 46 140 $ 3 613 $ ( 19684 ) $ 416 141


Current Liabilities

Cunent ntattuntie, of long-term debt $ $ $ $ $ $ 1 51'_ $ $ $ 1 51'_

Account, pay able 60 14 899 10 40 1 787 16 796

Accrued pa) toll 661 11081 6 69 1 900 14 717

E,tmtated ettlenient, clue to thu cl-part\ pa) et, 7 731 62_9 8 360

Due to affiliate, 4 613 8 738 630 '_ 976 (S 391) 8 788

Other cunent liabilitie, 29 6 664 16 (143) 743 7 309

Total cunent liabilitie, 5 363 50 113 66'_ 1SS 9 547 (S 391) 57 48'_

Long -term Debt , net 14 720 14 720

Other Long-term Liabilities 11 170 68 913 11_ 151

Due to %ffthatet 124 400 5 700 (5 700) 124 400

Total liabilitie, 5 363 185 683 730 188 30 880 (14 091) 208 753

Net Weh (Deficit)

Ulue'tncted 11 620 173 523 (W) 1' ' 713 8 683 3 613 ('99,) 196 655

Tentpot u-tl\ ie,tncted 1 3'_0 463 6 577 (1 '_34) 9 12_6

Petmutentl) te'tncted 1 367 1 607 (1 367) 1 607

Total net -et, (deficit ( 1 1 62_0 176 '10 (W) 4 10'_ 713 I s '_60 3 613 (5 593) '_07 388

Total liabilitie, and net a-et, (deficit ( $ 16 983 $ 361 893 $ (S67 ( $ 4 832 $ 931 $ 46 140 $ 3 613 $ (19684) $ 416 141

Defi n itions

TRHS - Truuh Regional Health S , Stem THE - Truut Health Enterpn- Inc

TNIC - Tmut Medical Center TNI - Truuth Nlu.cahne

\ NH A - Tmuh \ nitre Nur.e. mid Honieniaker. A ociation IHP - Iorr a Health Ph%.tcan. S Cluuc. TRHS portion

o) THE - Tntuh Health Foundation


Trinity Regional Health System and Subsidiaries (Rock Island)


(In Thousands)


TRHS TMC VNHA THE THE TM IHP Eliminations Consolidated

Re%enue

Patient en ice te\ enue ( net of contiachuil allow ance . ) $ $ 341 1((? $ $ $ 4 865 $ 58 (Jr $ $ $ 4()4 (1_-

Pio%t.ion tot patient tuicollectible account. (_^ "f o-) (5( (3"6 ( 2 9-43)

Net patient en ice t e% enue 31 ? 298 4 81 ? 54 1 -1 3-4 _84

thei opetatmg te\enue 393 16 -82 (3n9( ?n 3 533 (6 Ana (1 nl'^n( 1 _ 864

Net a.,et. Ielea.ed ti om te.ti ictionm u.ed tot opei attom

Total te\enue 393 33_ n8n (3n9( -n' 4 86 -- -na (6 Ana (1 nl'^n( 38 f i n

Expenses

Salat te, and wi age , 33() 1 1(1 198 388 1 33 1-

Pk Ician compensation and en ice, 23 934 8 3-6 (_ ( 83 ' 3( ) 8Employee benefit . _ _> -nn 9 1 33 ' fin.' (9M 3_ l^8

Supplie. 1- 6- 696 - _ 346 6n-3 46 -6 185

)thee e\peme. 594 -- 938 1 33- 691 1 _ 18() U nog) 91 -31

Dept eclat ton and amortization 1 > 381 134 1 9O9 1- 424

Intele.t 66-3 319 (1 5>( 683-

Pi o% t. ton tot uncol lect ible accotuit. 1 " 1-

Total e\pen.e. 1 ()13 3-2 -64-2 1 8_4 4 838 43- (1 _1(l ( 386 x44

Operating Income (Loss ) (fi_n( 4438 (3n9( (1122) - 6- (fi>na 13n 1306

Nonoperating Gains

Im e.tment Income 1 ?94 14 1 _6 416 -14 _?9 (1 ?- ( 16 9--

)thet net 139 133

Total nonopetatmg gam . net 1 594 14 1-26 416 164 84- _>9 (15 ( 1- 249

Re%enueO%er (iinder ) Expenses $ 9-4 $ 18564 $ 1(1 S (958( $ $ 6114 5 (6246( $ $ 18555

DeOmuons

TRHS - Truuh Regional Health S , Stem THE - Truuh Health Enterer e. Inc

TNIC - Truuh Medical Center TNI - Tnmh Nlu.catme

\ NH A - Tmuh \ nitm¢ Nur.e. and Honieniaker. A..ociation IHP - Iorr a Health Ph%.K lan. S Cluuc. TRHS portion

TH F - Tnmh Health Foundation

or)N)

Iowa Health System and Subsidiaries Schedule 9St Luke's Healthcare and Subsidiaries (Cedar Rapids)


(In Thousands)

December 31, 2012

AssetsSLNIH CARE CC-STL STL -HR JONES CARDIO LC STEAM, INC IHP Eliminations Consolidated

Current Assets

Call .ul^l â.ll egtn a1enl. S 842- S 1 348 S 929 S --u S i -36 S ai S S S S 1- =ii

Shoe-term ut -lnlenik - 159 1 884 9 ((43

A et Imlued as to t e - required for uurrenl liabilities 2 -34 2 -34

Patient a«ounl^ re,enable l- e^lmlaled tunolleaible^ 46 148 1 148 931 1 141 l uia i2 424

Other re,en able, S 291 6 46- 69 -9 S 912

Imenlonec - iuu i3 213 - __1

Prepaid e\pen e 1 141 42 to 34 -3 31 1 S36

Due trout atthale^ 1434 1 498 (3) 1 i u 6u (_-u6) 433

Total w-renl -et, 3u u3.1 2 S33 1 928 2 2-4 11 a-a 1 396 1-u (2 -u6( 9- lu3


Inlemalh designated too -lit 9 993 I lit -u3

Propern Plant and Equipment net 141 464 4 3u3 2-9 1 668 13 343 39S 4 boo 6-3 166-lo

Other Long-term Im eslments 21 463 -a- __ _lu

Imeslments in Joint A entures and Other lmeslments 12 aiu 9426 (6363) IS i13

Contributions Recen able 34 3il 96(1 3i 311

Other I lo- ii9 1 666

Due From Affiliates l l 635 1 349 (12 934)

Total accelc 5 41 (3 2 14 S 1,841, S 2 : u- S 1 2 91 S 3 i --u g 3 u 9- S 4 -- u g 9 4_6 S (=1 38 o ) S 449 241


Current Liabilities

Cunenl maltlnl- of long-tenll debt

A otutt pa% able S III 4(16 S 452 S 41(4 5 S 498 S 121 S 14 - S S S 1=u_3

A rued pa, roll 13:(1(1 331 12 826 696 20 13u

Eûnlaled êlllenlenik due to Ilurd-pang pad erg 1-84 - 3uu 4 ((91

Due to atfiltale, II i93 96 393 648 1 (2 -u6( luu3i

( )Iher,urrenl habllu- Ea u- l u 6 t o ta u 12 i 6-33

Total w-renl habnWlec iu 39i 93i 946 tau 943 14- (2 -u6( ?3 122

Long - term Debt net 3 3

Other Long - term Liabilities 3- 143 i23 -a- 33 a 13

Due to Affiliates -3 131 261 a 364 6 51(1 ( _ 984 ) -1 -82

Total habnWle, 16 (1 669 1 246 i 813 668 8 -82 1 69 (1 14- (I i 69(1 1 163 32i

Net Assets (Defial)

ll)Ilecln,ledl 2(19 :29 i 6(1(1 (3 06) 4 621 '_( (123 1 411- 462 9 426 (i 69111 24-4-9

Tenlpor d -l-led IS 2(14 96(1 4 161 20 32S

Peml.ulentl -l-led 13112 13112

Total net -etc (dettit 1 242 iai i 6uu (3 6(16) a 623 26 933 1 au- a 623 9 426 (i 69(1) 23 i 916

Total Ilablflllec am! net -etc 5 4n3 214 S 6 346 S 2 :u- S 1 2 91 S 3 i -- u g 3 u9- S a-u g 9 426 S (=1 38o) S 449 241

Derinuions

SLMMFI - SI Luke', Mtelllodi,l Ho,pnal JUNES -Jones Regional Medical t enter

L ARE - STL L are L onlpwn L 4RDI11 LL - L and iologi,NN L L

CC -STL- t onlinuine t are Ho,pual STL STEAM Mt -SI Luke'-e Steam I nc

STL-HR- STL Health Re,ource, IHP- Ionia Health Pli-u'iami 1, t luun SLHC po rtion

W

Re, enue

Patient en, e rep enue (net of, onlra, lual alloo am-1

Pro-ion tor patient on, olleu able a« ouno,

Net patient -(.e revenue

( )tiler operating re\enlle

Net is el^ released trom -lnuuon^ uced tor operauonL

Total re% enue

E,pe11SPS

Sala- and o a,-el

Phi-(an ornpen.auon and ceni-

Employee benetil^

Supple,

(alter e\pen e

Depre,(anon and unomzation

Inle-I

Pro-ion for umolleUuble a«ounl,

Total e\pen e


Nonoperan ng Gains

In-Intent -cone

(Utter net

Total nonopervme eam^ net

Re% en tie O%er ( tinder) Expenses

Derinnioos

SLifH - SI Luk e', Mtelliodi,l Ho,pnal

L ARE - STL L are L ompwn

cc -STL- t onnnuine tare Ho,pual STL

STL-HR - STL Healllt Re,ource,


St Luke's Healthcare and Subsidiaries (Cedar Rapids)Consolidating Schedule - Revenue and Gains, Expenses and Losses Information

(In Thousands)


Schedule 10

SLMH CARE CC-STL STL-HR JONES CARDIO LC STEAM, INC IHP Eliminations Consolidated

S III 21i S 11488 S - u _ u S S 21211 S 11-1? S S S (I o9u) S 36;;;-

(13 --a) (49) (-9u1 (289) (14 9u=)

299441 11488 69-1 20-121 11424 (1 u9u) 3;u 6;;

24 348 2i9 2 228 ;9u 3;u 1 311 (162o) (4 494( 214-4-36 -36

324 ;2; 11 -4- 6 9-3 228 21 o l I 14 2-4 1 311 (1 62o) 0 i84) 1-2 86;

122 9u3 ; 89- 2 931 6 14- 4 103 22u 142 2u6

19 =u9 26 12 1 -u: to :;u (,aa ) ,.. s;;12 968 -82 466 ; 19'_u 932 46 1- 119

;4 941 1 22u 46- 1 448 1 u84 84 (63( ;9 1816; 264 2 -6- 3 111 91 4 620 1 99- 1 211 (4 -63( -4 2981; 12; 292 93 lu3 1 222 --u 211 1- 843

18-;

11 ;42 183 zau IN (6-9( 186;

11;

114 4 u; 11 u2 6 263 2 u4 1- 399 19 24 u I ;2 3 0 ; 33( 36 ; 482

lul=u -21 (29u) 24 3612 (4 966( (] 1-) (I 62o) (I1 -383

12 i-u 1 1-6 ;;; 14 lot

8 8123-u 1 184 --- 14 lu9

S =249 u S -21 S (2 9 u ) S 24 S a-96 S (4 966( S (2 1-) S (I u 6 ; ( S (I1 S 21492

J( (NES - Jove, Regional Medical L enter

t 4RDI11 Lc - t ardioloeiNI, L L

STEAM INL -SI Luke', L oe Steam Inc

IHP - lo- Heallli Pln iciam 1, c liriic SLHc portion

Assets

C urrent assets

Ca,h and ca,h equn alent,

Short-term in e,tment,

A -et, limited a, to lie - lequued tot current liabilitie,

Patient account, lecen able le- e,tmtated uncollectlble,

Other lecen able,

Im entone,

Pl epald e\peme'

Due tl om affiliate,

Total current a-et,

Wet% Limited %s to Use, noncurrent

Intemalh cle,lonated

Property , Plant and Equipment, net

Other Long-term Investments

Irnestmenh in Joint \ entures and Other Investments

Contributions Recen able

Other

Due From %ffthates

Total &-et,


Current Liabilities

Cunent mat untie, of long-term debt

Account, pa) able

Accrued pa) loll

E,tmtated ettlenient, clue to thu cl-part\ pa) el,

Due to affiliate,

Other current liabilitie,

Total cunent liabilitie,

Long -term Debt, net


Due to %ffthates

Total liabilitie,

Net Wet ( Deficit)

Um e'tncted

Tempo) u-ll) le,tncted

Pemtutentl) le'tncted

Total net &-et, (deficit)

Total liabilitie, and net a-et,

Defi n itions

((ii AHS - Allen Health S, Stem

ANIH - Allen Nlemonal Ho.pita1 Corporation

NIFAH - Memorial Foundation of \Jlen Ho.pita1

Iowa Health System and Subsidiaries Schedule 11Allen Health Systems, Inc and Subsidiaries (Waterloo)


(In Thousands)

December 31, 2012

AHS AMH MFAH AC IHP IHHC Eliminations Consolidated

$ $ 6145 $ 71'_ $ $ $ $ $ 68S7

4381 3 4384

9S7 9S7

'S 142 'S 14 '

_ »6 349 '_ 90S

S67S S67S

999 110 1 1119

SO 111 69

46635 71S 459 (11) 47798

1 1S'_ 76 1

104 99'_ 104 99'_

94 444 S 166 378 99 988

1 866 1 016 4 221 6087 164 (S 809) 7 sos

1 9» 866 S'_ 1

3551 3551

150 150

$ $ 254 745 $ 7 859 $ 5 1158 $ 6 087 $ 164 $ (S 820) $ 268 093

$ $ 2211 $ $ $ $ $ $ 2211

8 683 4 44 8 731

11 793 11 793

6'_14 6'_14

13'_77 46 488

S8900

3 111 2113 70 544

(3) 139 789 1 977 293

X11) 39 068

311

X11) 111 809

6 087 164 148 3117

AC - Allen C ollege

IHP - Iorra Health Plq.ruan. S Ch,u AHS portion

IHHC - Iorra Health Honie Care AHS portion

Reeenue

Patient er\ Ice e\ enue (net of contractual ,dlo\+,ince,)

Pro% Lion for patient uncoltectlbte account.

Net p.atlerit er\ Ice re\ ernie

Other operating re\ enue

Net .-et, re!ea ed from re.trichon, wed for operation.

Total re\ enue

Expenses

S,d,ule. and eee,

Ph\icl,in conlpen.atlon and er\ Ice.

EI11PIo\cc Ilenetit.

Supplle.

Other e\pen e

Deprecia tion an d anlortlZ.1hon

Intere t

Pro% Lion for uncoltectlbte ,recount.

Total e\pen e

Operating Income (Lox)

Nonoperating Galin

III%e to ie nt Income

Other net

Total nonoperntmg gain, net

Reeenue Oeer ( Under ) Expenses

Derimuons

kHS - -Wen Health S\,Ienl

-U\IH - k1len Menlonal H,pita1 Corporation

NIFkH - Menlonal For-4mon of k1len H,pu.il

Iowa Health System and SubsidiariesAllen Health Systems, Inc and Subsidiaries ( Waterloo)


( In Thousands)


AHS AMH MFAH AC IHP IHHC Eliminations Consolidated

S S '_13882 S S S S S S '_13882(- 0331 (- 0331

20S 040 20S )4)

o 300 3o 822S (4 2233) S81 23 11011

121, 0 3-0 Sit

'_124-1 48 3001 (42233) 581 23 '_1-401

0- 01'2 '_o- 4 2o4 -11'21

11,214 11,214

1 4o2 -4 0-8 23 18 S3-

4- 1-8 S 104 4_ 1--

21 30404 lol I -1- 383oS

12 O00 12 O00

1014 1

'

1 041

1 _I

23 200 125 544 -1-4 23

2220- 88

(23) 12 34o (40o) 142- (4 2233) 531 0 o02

o 4SO Soo 40 23? 10 o52„1 , „1

4C - Allen College

IHP- Io\\a Health Ph^^1^lalr& Cline AHS polon

IHHC - Io\\a Health Honle Cue -ViS ponlon

Schedule 12

mm

Assets

Current Assets

Ca,h and ca,h equn alent,

Shot t-tel in un e,tment,

-%-et, linuted a, to ttc - Ieyuued tot current habilitie,

Patient account, iecen able le- e,tmiated uncollectible,

thei Iecenable,

In entol le,

Prepaid e\peme,

Due Iiom athliate,

Total cunent a-et,


Inteinalh de,ignated

Properh, Plant and Equipment, net



Contributions Recen able

Other

Total a-et,

Liabilities and Net Assets ( Deficit)

C urrent Liabilities

Current matul tie, of long-term debt

acco uit, pad able

Accrued pad l of l

E,tunated ettlenient, due to tluud-party pad ei,

Due to athliate,

thei current habilitie,

Total current habilitie,

Long-term Debt, net


Due to Affiliates

Total habilitie,

Net Assets ( Deficit)

I Tm e,tI Icted

Tempolaol\ Ie,tocted

Permanently ie'tiicted

Total net a-et, (deficit i

Total habilitie, and net a-et,

Definitionor)V SLHS - St Luke, Health S\teni

SLRAI - St Luke, Regional Nle llc.tl C enter

SLHR - St Luke, Health Re,ource,

PACE - Sotu\Lmd PACE

Iowa Health System and SubsidiariesSt. Luke's Health System, Inc. (Sioux City)

Consolidating Schedule - Balance Sheet Information(In Thousands)

December 31, 2012

SLHS SLRMC SLHR PACE Eliminations Consolidated

$ 1 X- $ 69-o $ 993 $ 399 $ $ X 549

_8 11 _1t11

1 n-1_ 1 n-1_

6 941 311 (310 23 5(M )

6 99 - _ 3 518

3 iio 3- 3 >X-

61- 3_ 23 69-

4(1 43 s , 3 t43 X loot X3

S33;; _lo_ 4(I (43X410 _-4 _6

49 -96 49 -96

14 4511 ^y 11_9 _ ^-4 -6 i 5

1_918 1_918

11 499 X_6 1 _ 3_5

3 464 3 464

3s; 3S5

$ _fi-- $ 198 153 $ 46-6 $ -9 1 $ 438 48 $ 1186IMMI

$ $ 11 $ $ $ $ 11

- ^t3ll4 191 6618 (310 9131

624 19- 3o 6511

1 65- 141 1 -98

6„ 5918- 41826 61 t-138 1(li 6656

38 9 1 9 2 3 1 59 _ 4-1

3o18 _4166 -1_3-2 goo t-138 48 1 266 8

34 34

fi 11_5 I1" fi _13

996o 44 64 54 OF

1 _ 9-8 -4 8-2 4_ 5611 goo (43 8 48 8 - 462

13249 119ôl t3-M4 Io81 94-58

1 569 1 569

13249 1_3_8 l (3-"4) t1 o81 9S53S

$ 26 22- $ 198 153 $ 46-6 $ -9 1 $ (438 48 $ i 6IMMI

Schedule 13

Iowa Health System and SubsidiariesSt. Luke's Health System, Inc. (Sioux City)

Consolidating Schedule - Revenue and Gains, Expenses and Losses Information( In Thousands)


SLHS SLRMC SLHR PACE Eliminations Consolidated

Re%enue

Patient yen ice le\ enue ( net of contract uil allowance,) $ $ 143 39() $ 11 998 $ 8 631 $ (-85 ( $ 163 234

Pio%I,ion tot patient uncollectible account, (1_- O8 (8o7 (13513)

Net patient yen ice Ie\ enue 13(1 68_ 11 193 8 631 (-85 ( 149 -_1

Ithel opelatmg le\enue 4 1 (1 9 3 ni fi _^9 4 (8-1 ( 6 ^^-

Total Ie\enue 4 DO 133 -38 11 452 8 635 (1 656( 1>6 2-8

Expenses

Sala)ie. and wi age . 9 4- 323 39_6 14-() 52-28

Pin ician compen . ation and en ice. 8 3o6 4 91 ? 269 13 49u

Employ ee benehh 1_4(16 1()()3 341 13- 5()

Supplie. 3 _^ 848 494 1 6_n

)thee ewen.e . 936 26 - _2 3o69 4 5 (1 656) 33 -98

Dept eclat ion and amortization 1 n3n 38 - 1??

Intel e,t 186 _ -43

Pi o% ),ion tot uncollectible account, 3_ 3_

Total e\penme, 2535 1218 652 13 66 8 118 1 656 151 316

Operating Income ( Loss ) 1 ?-4 5()86 (__15( ?1- 4962

Nonoperating Gains ( Losses)

In e.tment Income 1 5_ _ ?5-1 ? -o6

)the) net U (n (1

Total nonopelatmg gain. (lo..e. ( net 142 - 554 5 696

Re%enue O%er (iinder) Expenses $ 1-16 $ l(164() $ 15( $ ?1- $ $ l(1658

Definitions

SLHS - St Luke. Health S\.tem

SLRM( - St Luk e, Regional Mc llc.tl C enter

SLHR - St Luke. Health Re,otirce,

PACE - Sotu\Lmd PACE

Schedule 14

0)00

Assets

Current Assets

Cali and ca.h eyun alentn

Short-term iris e. tment.

A et, Imuted a, to Ile - required for current habihtte

Patient account, recen able le.. e.hniated uncolIectible,

( )ther recen able.

Im entone,

Prepaid e\pen.e.

Due troni atfliate'

Total current a..et.

Assets Limned As to Use, nonce rrenl

Intemall, de,anated

PropertN , Plant and Egwpmenl, net

Other Long-tern Im esnnen is

in Joint \ enlures and Other Imesnnenls

Con lribunons Recen able

Other

Due From Affiliates

Total a"et.


Current LiabilitiesCurrent niahmtie, of lone-term debt

Account, pa) able

Accrued pa% roll

E.tmiated ettlenient, due to tlurd-part` pa% er.

Due to affiliate.

Other current habilibe.

Total current habihtie

Other Long-tern Liabilities

Due to Affiliates

Total habilme.

Net Assets ( Deficit)

Unu•e%tncted

Teniporanl% re.tncted

Pemianent1 re.tncted

Total net a"eth (deficit)

Total habilme, and net a..etn

Definitions

THS - Tnna^ Health S^.lem.

TRDIC - Trina^ Regional Medical Center

BNIHC - Bemhill Menial Health Clinic

THE - Trina^ Health Foundation

o

Iowa Health System and Subsidiaries Schedule 15Trinity Health Systems, Inc and Subsidiaries ( Fort Dodge)

Consolidating Schedule - Balance Sheet Information( In Thousands)

December 31, 2012

THS TRMC BMHC THE TBC TPG TP ACO IHHC Eliminations Consolidated

S 442 S 2 0S( S QS) S 1228 S 1 884 S 2Q04 S S S S 9 ill 11

449 449

3S i3S

12 SQ- is" 4 000 Fab

220 13-0 14 431 '_043

2 S2 483 3 Obi

4 311 I 0 138 28 i0s

34 (36i - 28 382 (r'-O-) 10-

-00 '_b (,-S 11-S 1 228 1')-,2 1 012_ 28 (6 -0Th 3a 041)

,2 ,)2,) 12 09: 4 022

438 (4 201) S9- I 12 333 80 -8 -43

0-1 4 040 )100 13 SI^

3S 201 F -Si 21:0 o,4(,) 4b?:

1?'_a 1?'_a

__ 1 ]3I IIb 1 3^0

-a C4)

S 400,1 S 142 1)00 S '_0-? S IS(Q2 S l42( S 1101-, S 28 S '_ 130 S ((02_44) S I-S 1-S

2 4 bl )13 4 bS)ill 4ii2 4) 13 2 __- - :60

1012 210) 802

8)4 I 2Q 11-2 I i44 112 2S( IMO (6-0-) I iiq

23 1 -Sb '_) 4 412 b1 2 IFl ail 121)4- 1 044 I i0s i)-l 6000 IMO (6-0T) 1-013

- I '_(S 34 1 OQ 11 1-0

20440 -a C4) '_0440

00 340ii I IM2 I i0s IM l( IM0 (0-81) 48-03

101 -i4 23 121M 1361 3128 (122) '_130 (48l 4i 124 OAS

4 b?: 1 lab 0, 40(i 43Q3

1 844 I S01 I S63) 1 844

833 108 ]i1 )2, F 124 1361 3128 (1.2) 130 o3 4(3i 130'_-?

TBC - Trina^ Budding Corporation

TPG - Trunark Ph^.iuvi. Group

TP 4CO- Trina^ Pioneer 4CO

IHHC - loo a Health Home Care THS portion

Reeenue

Patient er\ Ice e\ enue (net of contractual ,dlo\+,ince,)

Pro% Lion for patient uncoltectlbte account.

Net p.1tlelit er\ Ice re\ ernie

Other operating re\ ernie

Net .-et, re!ea ed from re.trichon, wed for operation.

Total re\ enue

Expenses

S,d,ule. and eee,

Ph\ici.in conlpen.atlon and er\ Ice.

EI11PIo\cc benefit,

Supplie

Other e\pen e

Deprecia tion an d milortlZ.1hon

Intere t

Total e\pen e

Operating Income (Lox)

Nonoperating Galin (Loxes)

III%e to ie nt Income

Other net

Total nonoperntmg gain. I lo..e.l net

Reeenue Oeer ( Under ) Expenses

Definitions

TH S - Trnul\ Health S\ Î ear

TRDIC - Trnul\ Regional NIedn.il Center

BNIHC - Bem lull Menial Health Chin,

THE - Trnul\ Health Foundation

Iowa Health System and SubsidiariesTrinity Health Systems, Inc and Subsidiaries (Fort Dodge)


(In Thousands)

Year Ended December 31. 2012

Schedule 16

THS TRMC BMHC THE TBC TPG TPACO IHHC Eliminations Consolidated

S S 03 42o S 2 1-2 S S S 40ooo S S S S l3o 21,4

3'-'-3 - s8u IOo '-o 2IO5 3-03 1 201 (s s-12) 12 So l

10- 33 I-IS

3 '- '- 3 0o 1 3 1 2 231 o4 '- I O s 43 4-2 I 203 I s s-121 142 0--

2 3» 34 1 0 - I 011, 13- 1 3 1 1 0 240 83 48 1 S

-30) 400 18883 2 -- 2S3

4S4 8'-30 242 -IS 33 '-804 18 II 02S

S Io )-'- 21 2 13 3030 '-0043

00 21 201 400 318 I I» 8041, lu 1> >-121 '-o So3

00 S 11- lp 2 -S3 I10 o 424

Ill -1 I IlS

'_ 040 u4 330 S04 '_ 08S -1-1300 I" 1> >-121 141 S3'-

283 I 2» 14-1 14401 20 133-1 11221 I 203 144S

1 3 ('12 '- 104 3 ? 20S S o30

14131 300 11131

1 3I>> 2404 3 - 20S S81-

R 284 R 44,11 S 14-1 R I IIA R 23 S 13321 S 1221 S 1408 R S - 2o2

TBC - Truul^ Bulhlne Corporation

TPG - Trunuk Phi- I.ur Group

TP 4CO - Trnul\ Pioneer 4C( )

IHHC - Io\\a Health Home C- TH, Portion

NO

Assets

Current Assets('a,h and ca,h eyun alent,

Short-term ime,tment,

Patient account, recen able le- e,timated uncollectible,

( )ther recen able,

Im entorie,

Prepaid e\peme,

Due from attiliate,

Total current a»et,


Internally designated

Property, Plant and Equipment, net

Other Long -term Investments


Contributions Recenable

Other

Due From Affiliates

Total a»et,


Current Liabilitiesaccount, pad able

accrued pad roll

E,tmi ated ettlenient, due to third-parts pat en

Due to attiliate,

)ther current liabilitie,

Total current liabihtie,

Other Long -term Liabilities

Due to Affiliates

Total liabihtie,

Net Assets

tinre,trietell

Temporanl\ re,tricted

Permanentl\ re,tricted

Total net a»et,

Total liabihtie, and net a»eh

Definition

TRI-ST - Fuile\ Tn-Stete. He,dth Group Inc

Fuile\ - The Fuile\ Ho.pit.d

VN A - \ i itme Nur.e 4..ocietion


Finley Tri-States Health Group , Inc. and Subsidiaries (Dubuque)


(In Thousands)

December 31, 2012

TRI-ST Finley VNA liminations

Schedule 17

onsolidated

$ $ 481;

(151

317 51 31

(1512

Is 438 366

2

Is 8o4

; 149 23 ; 172'S8 'S8

578 1 579

33 o 3 (6 o ) 273

_7 771 71o 60 28 42 1

>R o65 >R o6S

s0369 l117 5(1476

299 299

14 4 57_ 4 586

4 54; 1 628 6 171

go go

14 145 764 2447 6(l 14816s

51;7 11 51485 "' 245 5 467

79i i 24 814

1389 >7 6(l 1386

_711 1;1 28;'

1 s 239 468 6( 15647

Rn6 _ W8

6 7s3 6 753

798 471 6n 23 _nR

14 118 42; 349 118 786

_ 356 1 628 3984

1 R 7 _ 1 8 7

14 12' 966 1 977 124 957

14 145 764 2447 6(l 14816s


Finley Tri-States Health Group, Inc. and Subsidiaries ( Dubuque)Consolidating Schedule - Revenue and Gains, Expenses and Losses Information

( In Thousands)Year Ended December 31, 2012

TRI-ST Finley VNA Eliminations Consolidated

Re%enue

Patient,enice le\enue(net ofcontiact uilallowante,) $ $ 96-_1 $ >(18 $ $ 9-119

Pi o% mon tot patient uncollectible account, (3 929) (39,9)

Net patient, en ice le\enue 92-9_ 5(18 933()()

thei opei atmg Ie\ enue 3 ?n- _ 1-- > 684

Net a-et, Ielea,ed Ii om Ie,ti fiction, a ed tot opei ationm 93 8 lol

Total Ie\ enue 96 392 _ 693 99 of 5

Expenses

Salai fie, and wi age. 33 486 1 84- 3 ^ 333

Ph\,ician compen.ation and .en ice. 4 9(8 4 9()8

Employee benefit, - 4-9 8((54

Supplies 14 555 41 14 596

thei e\pen.e. 49- 241 -38

Dept eciation and amortization ? 88)) 31 ? 911

Intel e't 4-- 4--

Totale\pen.e. 9,„f, ,-35 9• o l-

Operating Income (Loss) 411)) (42( 4((68

Nonoperating Gains

Im e.tment Income 6 454 1 6 455

)thee net 69 59 1 _8

Total nonopelatmg gam. net 6 .23 fin 6X83

Rex enue O%er Expenses $ - $ 1(1633 $ 18 $ - $ 1(1651

Definitions

TRI-ST - Fuile\ Tn-Stete. Health Group Inc

Fuile\ - The Fuile\ Ho.pit.d

VN A - \ i itme Nw.e 4..oci ution

N

Iowa Health System and SubsidiariesAffiliated Colleges

Balance Sheet Information

(In Thousands)

December 31, 2012

AssetsMC TCN AC SLC

Current Assets

Ca,h and cash equnalent S _ 195 S 1117 $ $ 195

Student loan and other recei\ able, _75 11-1 349

Im entorie, 8

Prepaid e\pen,e, 9n 6 11o 4

Total current a,eh _ 568 5 459 _s_

Property, Pla n t and Equipment, net 972 1 436 loos

Other Long-terns Investments 378

Interest in Net Assets of Foundation 1 _4_ _ ((87 1 619

Other 1 48

Total a ,et, $ 4782 $ 3 748 $ C $ 4


Current Liabilities

Current maturitie, of ling-term debt S $ 69 $ $

Account, pa%able 5l 11 -I4 11111

Accrued pa% roll 91 84 1 4 ,

Other current liabilitie, 1S_ _>9 1_ 1111

Total current liabilitie, 3 _-1 42; 56 4s ,

Long -term Debt, net 1 457

Other Long-terns Liabilities 4 488 6

Total liabilitie, 324 1 884 544 458

Net Assets

Unre,tricted 3 216 (3119) 11691

Temporanl\ re,tricted 526 883 348 S5_

Permanentl\ re,tricted 716 1 29(1 1 873 1 (183

Total net a»et, 4 458 1 864 4 514 1 766

Total liabilitie, and net a»et, $ 4 7' $ 3 748 $ 5 (158 $ _24

Definition

NIC - Nlethodi t college (Peona)

TCN - Tniut^ College of Nw,mo C Health Science , (Quad Clue,)

AC - Allen College (Waterloo)

SLC - St Luke', College (Sioux Cm

Note I Fi\ed &-et, utilized b\ AC belong to then patent ho,pital corpoi anon Allen Memorial Ho,pital Corporation ( ANtH) aid thug ue not ietlected in th e b al ance sheet of the College

AC Iecen e, the benefit of u,mo certain pace ww itlun ANt H', tacilitie, but donated ie% enue and donated e\pemei not ietlected within the income statemen t of AC I located in

Note '_ Certain &-et, and liabilitie, such a, ca,h and accrued liabilitie, ale also not shown epaiatel\ on the AC balance ,heet but iathei included in ANtH

Schedule 19

VW

Iowa Health System and SubsidiariesAffiliated Colleges

Revenue and Gains, Expenses and Losses Information(In Thousands)


MC TCN AC SLC

Re en ue

Tuition and student tex enue

Go\emmental pass-thru

Giantte\enue

()thee i e\ enue

Net assets released fiom iestttetions used foi operations

Total tex enue

Expenses

Salattes and NN ages

Employee benefits

Supplies

()thee expenses

Depieciation and amoitization

Interest

Pi ox ision foi uncollectible accounts

Total expenses


Re%enue O%er (Under) Expenses

Definitions

DI(' - Ilethodi t College ( Peoria

TCN - Trinity College of Nunm^, S Health Science, (Quad Citie,)

AC - Allen College (\\ aterloo

SL(' - St Luke', College (Sioux (1t\

$ 10.068 $ 3,009 $ 7,73 7 $ 2.450

15 876

76 465 9

;1 7; 1Ri

10.068 3,134 8.601 .520

4.476 1.853 4.264 2.071

1.111 452 978 572

228 66 194 169

2.303 468 1.717 855

525 120 2

60

122 21 20

8.643 3,141 7.174 3,689

1.425 (7) 1.427 (169)

$ 1.425 $ (7) $ 1.427 $ (169)

Schedule 20

Documents

990 Return ofOrganization ExemptFromIncomeTax990s.foundationcenter.org/990_pdf_archive/420/420504780/... · 2017-06-23 · efile GRAPHICprint - DONOT PROCESS As Filed Data - DLN: