2015-08-27T15:56:01-05:00 2014-09-30 410746749 CLIFTONLARSONALLEN LLP 227 WEST TRADE STREET SUITE 800 CHARLOTTE NC 28202 990 2013-10-01 560556760 STANLY REGIONAL MEDICAL CENTER STAN 7049844393 POST OFFICE BOX 1489 ALBEMARLE NC 28002 NYKOLA SAMILO VP, CFO 7049844000 2015-08-27 1 JOHN NORMAN P01506766 7049985200 2013 2016-03-07 17:11:31Z ALFRED TAYLOR 301 YADKIN ROAD ALBEMARLE NC 28001 102503786 0 X WWW.STANLY.ORG X 1945 NC TO FACILITATE IMPROVING THE HEALTH OF PEOPLE IN THE COMMUNITIES WE SERVE. 5 2 857 115 6532640 -406893 530863 383484 98818771 101866195 642175 562442 511033 -308335 100502842 102503786 78400 73219 0 0 47236362 44719317 0 0 0 50108712 48013518 97423474 92806054 3079368 9697732 116138826 118412055 37266024 32411499 78872802 86000556 X STANLY REGIONAL MEDICAL CENTER'S MISSION IS TO FACILITATE IMPROVING THE HEALTH OF THE PEOPLE IN THE COMMUNITIES WE SERV, BY PROVIDING QUALITY SERVICES THAT ARE COMPREHENSIVE, AFFORDABLE AND DELIVERED: COMPASSIONATELY, APPROPRIATELY, RESPONSIBLY, EFFICIENTLY. 0 0 60135074 73219 93318847 STANLY REGIONAL MEDICAL CENTER PROVIDED APPROXIMATELY 16,800 INPATIENT DAYS OF CARE AND APPROXIMATELY 77,300 OUTPATIENT VISITS (EXCLUDING LABS) DURING 2014. DISCHARGES WERE APPROXIMATELY 5,400. THE HOSPITAL USES IT RESOURCES TO EFFECTIVELY AND EFFICIENTLY PROVIDE QUALITY HEALTH CARE TO THE RESIDENTS OF STANLY COUNTY AND THE IMMEDIATE SURROUNDING AREAS IN A PASSIONATE AND RESPONSIVE MANNER. IN KEEPING WITH THE HOSPITAL'S MISSION, THE HOSPITAL: -PROVIDES CARE TO PERSONS COVERED BY GOVERNMENTAL PROGRAMS WITH REIMBURSEMENT AT A LEVEL BELOW THE COST OF PROVIDING THAT CARE: -PROVIDES BAD DEBT AND CHARITY CARE; - PROVIDES HEALTH ACTIVITIES, SPACE, AND PROGRAMS TO SUPPORT THE COMMUNITY. AS STATED ABOVE, STANLY REGIONAL PROVIDED HEALTH CARE TO MEDICARE AND MEDICAID PATIENT WITH REIMBURSEMENT BELOW THE HOSPITAL'S COST. THE HOSPITAL RECOGNIZES THESE AMOUNTS AS A FORM OF UNCOMPENSATED CARE IN MEETING ITS MISSION. 60135074 1 1 0 1 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 86 0 1 857 1 1 1 0 0 0 0 0 0 0 0 0 X 5 2 0 1 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X PENNY PATRICK 7049844643 301 YADKIN STREET ALBEMARLE NC 28001 LARRY BAUCOM CHAIRMAN 1.00 X 0 0 0 DAVID HORTON VICE-CHAIRMAN 1.00 X 0 0 0 MIKE HARWOOD BOARD MEMBER 1.00 X 0 0 0 DAWN ALLEN BOARD MEMBER 1.00 X 0 0 0 DARRELL ALMOND BOARD MEMBER 1.00 X 0 0 0 SHERRILL SMITH BOARD MEMBER 1.00 X 0 0 0 DR RUFUS LEFLER III BOARD MEMBER 1.00 X 0 0 0 KRISTI JACKSON BOARD MEMBER 1.00 X 0 0 0 JACK JORDAN BOARD MEMBER 1.00 X 0 0 0 DR MIKE MCLEOD BOARD MEMBER 1.00 39.00 X 0 272983 26828 ELBERT WHITLEY BOARD MEMBER 1.00 X 0 0 0 STEPHEN CHAMBERS BOARD MEMBER 1.00 X 0 0 0 MIKE LUTES BOARD MEMBER 1.00 X 0 0 0 DENNIS PHILLIPS BOARD MEMBER 1.00 X 0 0 0 JOHN G MOORE BOARD MEMBER 1.00 X 0 0 0 ALFRED P TAYLOR PRESIDENT/CEO 40.00 X 347274 0 54812 NYKOLA SAMILO VP, CFO 40.00 X 216923 0 44585 JUDY DORAN CNE 40.00 X 166868 0 22192 PAUL D'AMICO CMO 40.00 X 153957 0 10826 BRIAN FREEMAN VP, OPERATIONS 40.00 X 165791 0 25638 ANJANA YOUNG DIRECTOR, ANESTHESIOLOGY 40.00 X 249259 0 21817 WILLIAM DENNIS ANESTHESIOLOGIST 40.00 X 178363 0 21838 JEFFREY PITMAN ANESTHESIOLOGIST 40.00 X 202077 0 6955 JESSICA STEED ANESTHESIOLOGIST 40.00 X 180833 0 32989 SUZANNE MCLESTER ANESTHESIOLOGIST 40.00 X 188258 0 23286 2049603 272983 291766 32 0 1 0 CAROLINAS MEDICAL CENTER 1000 BLYTHE BLVD CHARLOTTE NC 28203 MANAGEMENT SERVICES 4178355 CAROLINAS HOSPITALISTS GROUP STANLY 4400 GOLF ACRES CHARLOTTE NC 28208 HOSPITALISTS 762449 DIVERSIFIED CLINICAL SERVICES PO BOX 636981 CINCINNATI OH 482636981 WOUND CARE STAFF 692820 TRUSTAFF 4270 GLENDALE MILFORD RD CINCINNATI OH 45242 NURSE STAFFING 493359 LEIDOS HEALTH LLC 705 E MAIN ST WESTFIELD IN 46074 IT STAFFING 294339 19 193759 189725 383484 PATIENT REVENUE 621400 85689172 85689172 UNRELATED PHARMACY 621400 6532640 6532640 9644383 9644383 101866195 562442 562442 SETTLEMENT OF PENSION ANNUITY CON 900099 -308335 -308335 -308335 102503786 95025220 6532640 562442 73219 73219 188266 188266 32990245 28571003 4419242 641527 641527 8644659 144469 8500190 2254620 1966665 287955 1141394 1141394 201848 201848 71132 71132 8599036 5349253 3249783 357408 46642 310766 1507734 1195627 312107 3996793 3996793 1782425 1193471 588954 26511 14712 11799 94407 59266 35141 1091269 1091269 6044526 3009786 3034740 912776 912776 SUPPLIES/R&M/REMODEL 18217801 17686336 531465 ASSESSMENT & MCRE NON-R 2327984 2327984 MISCELLANEOUS 912322 520003 392319 DUES AND SUBSCRIPTIONS 582541 176587 405954 145611 128035 17576 92806054 60135074 32670980 0 5947485 13534185 13201654 11710749 2339151 2556342 1208634 1270754 148999293 106854766 48182442 42144527 35965608 38554639 9293852 8640859 116138826 118412055 7465500 8122431 22016581 19798185 7783943 4490883 37266024 32411499 X 78166322 85739677 706480 260879 78872802 86000556 116138826 118412055 X 9697732 -2567508 -2470 X 0 1 X 0 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 24682 24682 0 PART II-B, LINE 1: A PORTION OF MEMBER ORGANIZATION DUES ARE ATTRIBUTABLE TO LOBBYING. 8085076 8085076 86202238 59969615 26232623 54711979 46885151 7826828 42144527 INVESTMENTS 38554639 F 38554639 OTHER RECEIVABLES 2634223 ADVANCES TO AFFILIATES 1992098 OTHER ASSETS 4014538 8640859 ESTIMATED THIRD-PARTY PAYOR SETTLEMENTS 5549626 PENSION LIABILITY -1554273 INVENTORY CLEARING 495530 4490883 X PART X, LINE 2: THE SYSTEM, HOSPITAL, FOUNDATION, STANLEX, SMS AND MANOR ARE NON PROFIT ORGANIZATIONS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND ARE EXEMPT FROM INCOME TAX ON REVENUE EARNED FROM THEIR TAX-EXEMPT STATUS. ALLIANCE AND LIFESMART ARE FOR-PROFIT ENTITIES AND THEREFORE, RECORD INCOME TAX EXPENSE/BENEFIT, AS APPLICABLE. THE SYSTEM, HOSPITAL, FOUNDATION, STANLEX, SMS AND MANOR'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES. THE SYSTEM, HOSPITAL, FOUNDATION, STANLEX, SMS AND MANOR ARE NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE THEIR TAX-EXEMPT STATUSES. THE SYSTEM, HOSPITAL, FOUNDATION, STANLEX, SMS AND MANOR ARE NOT AWARE OF ANY ACTIVITIES THAT ARE SUBJECT TO TAX ON UNRELATED BUSINESS INCOME OR EXCISE OR OTHER TAXES. THE TAX RETURNS FOR THE YEARS 2010 TO 2013 ARE OPEN TO EXAMINATION BY FEDERAL, LOCAL, AND STATE AUTHORITIES. THE SYSTEM HAS ADOPTED THE INCOME TAX STANDARD ISSUED BY FINANCIAL ACCOUNTING STANDARDS BOARD IN LIGHT OF ITS STATUS AS AN ORGANIZATION EXEMPT FROM FEDERAL AND STATE INCOME TAXES. THIS STANDARD CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS IN ACCORDANCE WITH THE INCOME TAX STANDARD. THIS STANDARD PRESCRIBES RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN THAT ARE NOT CERTAIN TO BE REALIZED. 1 1 1 X 1 X 1 1 0 1 1 2249200 500312 1748888 0.01880 17621171 12764120 4857051 0.05230 237637 127691 109946 0.00120 20108008 13392123 6715885 0.07230 360230 151363 208867 0.00230 7787 7787 0.00010 368017 151363 216654 0.00240 20476025 13543486 6932539 0.07470 83213 83213 0.00090 83213 83213 0.00090 1 17091918 27405967 32230460 -4824493 X 1 1 1 1 STANLY REGIONAL MEDICAL CENTER INC 301 YADKIN STREET ALBEMARLE NC 28001 X X X INPATIENT PSYCHIATRIC UNIT STANLY REGIONAL MEDICAL CENTER INC 1 1 X X X X X X X 12 1 0 1 X X X X X X X X X X 0 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X 1 1 X X X X X 1 1 X X X X X 1 X 0 1 STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 3: REPRESENTATIVES FROM THE LOCAL HEALTH DEPARTMENT AND UNITED WAY WERE INVOLVED IN CONDUTING THE CHNA, FOCUS GROUPS AND COLLOBORATED IN THE FINAL WRITTEN DOCUMENT AND INPLEMENTATION STRATEGY. STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 7: STANLY REGIONAL MEDICAL CENTER HAS NOT ADDRESSED THE COMMUNITY CONCERN REVOLVING AROUNG ILLEGAL DRUG USE AS THIS IS BEST ADDRESSED BY LOCAL LAW ENFORCEMENT AND IT OUTSIDE OF THE SCOPE OF SERVICES PROVIDED BY THE HOSPITAL. SRMC HAS CHOSEN TO WORK ON OBESITY/DIABETES AND CANCER IN CONJUNCTION WITH THE LOCAL HEALTH DEPARTMENT. LACK OF PHYSICAL ACTIVITY WILL BE ADDRESSED INDIRECTLY THROUGH THE OBESITY/DIABETES INITIATIVES. STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 14G: AVAILABLILITY OF FINANCIAL ASSISTANCE POLICY IS NOTED ON EACH BILLING STATEMENT STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 18E: SEND LETTER TO POTENTIAL PATIENTS AFTER DISCHARGE. STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 20D: ALL PATIENTS REGARDLESS OF COVERAGE ARE CHARGED THE SAME AMOUNT FOR ALL PROCEDURES. STANLY REGIONAL MEDICAL CENTER, INC. PART V, SECTION B, LINE 22: SAME AMOUNT IS CHARGED FOR ALL PATIENTS, THEN FINANCIAL ASSISTANCE ADJUSTMENT IS TAKEN WHEN APPROVED. PART I, LINE 3C: WE USE THE FEDERAL POVERTY GUIDELINES AT 200% AS PUBLISHED BY THE US DEPT OF HEALTH AND HUMAN SERVICES. WE USE INCOME AND LIST OF ASSETS TO DETERMINE ELIGIBILITY. PART I, LINE 7: THE ORGANIZATION USED THE IRS WORKSHEETS TO CALCULATE THE AMOUNTS REPORTED ON SCHEDULE H. PART I, LINE 7G: N/A. NO SUBSIDIZED HEALTH SERVICES PROVIDED. PART I, LN 7 COL(F): THE ORGANIZATION DOES NOT HAVE A PROCESS FOR ESTIMATING THE AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE ORGANIZATION'S CHARITY FINANCIAL ASSISTANCE POLICY. THE ORGANIZATION MAKES ITS BEST EFFORT TO DETERMINE FINANCIAL ASSISTANCE ELIGIBILITY WITH EVERY PATIENT. PART II, COMMUNITY BUILDING ACTIVITIES: STANLY REGIONAL RECRUITS PHYSICIANS NEEDED TO PROVIDE ADEQUATE CARE AND PROMOTE HEALTH AMONG OUR COMMUNITY. PHYSICIANS RECRUITED RECENTLY INCLUDE FAMILY MEDICINE, PEDIATRICS, AND GENERAL SURGERY ABD STANLY REGIONAL IS ACTIVELY RECRUTING IN THE AREAS OF NEUROLOGY, NEPHROLOGY AND UROLOGY. ALSO, A MEMBER OF THE EXECUTIVE LEADERSHIP TEAM PARTICIPATES IN COMMUNITY COMMITTEES - LOCAL EMERGENCY PLANNING COMMITTEE AND ENVIRONMENTAL AFFAIRS BOARD AND THE AMERICAN RED CROSS. PART III, LINE 4: BAD DEBT EXPENSE IS CALCULATED BY ANALYZING THE AGING OF ACCOUNTS FROM THEIR SERVICE DATE AND APPLYING A RESERVE PERCENTAGE BASED ON THE AGING BUCKET THAT THEY FALL INTO. AGING BUCKETS ARE AS FOLLOWS: IN-HOUSE/UNBILLED @ 60%; < 30 DAYS @ 80%; 31-60 DAYS @ 90%; >60 DAYS @ 100%. BAD DEBT WRITE OFFS AND RECOVERIES ARE POSTED TO THE BAD DEBT ALLOWANCE ACCOUNT AND THE ALLOWANCE ACCOUNT IS THEN ADJUSTED TO MATCH THE CALCULATED AMOUNT PER THE AGING MODEL. PART III, LINE 9B: THERE ARE NO COLLECTION EFFORTS AS SOON AS AN ACCOUNT IS IDENTIFIED AS CHARITY CARE OR FINANCIAL ASSISTANCE IF IT IS 100%. WE APPLY THE FULL ADJUSTMENT AT TIME OF APPROVAL. FOR ACCOUNTS THAT HAVE ONLY PARTIAL FINANCIAL ASSISTANCE THE REMAINING BALANCE FOLLOWS COLLECTION PROCESS DEFINED FOR ALL OTHER ACCOUNTS. PART VI, LINE 2: STANLY REGIONAL WORKS IN PARTNERSHIP WITH THE STANLY COUNTY HEALTH DEPARTMENT AND OTHER AREA AGENCIES TO CONDUCT A COMMUNITY HEALTH NEEDS ASSESSMENT. THE FINDINGS FROM THIS REPORT ARE USED TO HELP OUR ORGANIZATION TARGET SPECIFIC DEMOGRAPHICS AND RELATED HEALTH CONCERNS AND ILLNESSES WITH SIGNIFICANT PREVALENCE IN OUR SERVICE AREA. IN ADDITION TO THIS LOCAL EFFORT, STANLY REGIONAL ALSO RELIES ON STATISTICS PROVIDED BY THE NORTH CAROLINA HOSPITAL ASSOCIATION AND VARIOUS DISEASE-SPECIFIC AGENCIES SUCH AS THE NORTH CAROLINA STROKE ASSOCIATION TO OBTAIN NEEDS ASSESSMENT INFORMATION. PART VI, LINE 3: WE HAVE OUR POLICY POSTED ON OUR WEBSITE AS WELL AS THROUGH THE NC HOSPITAL ASSOCIATION. WE PROVIDE A GENERAL NOTICE OF THE AVAILABILITY OF PROGRAMS IN EACH BILLING STATEMENT AS WELL AS GENERAL NOTICES POSTED THOUGHOUT THE HOSPITAL. WE HAVE BILLING STAFF AVAILABLE M-F, 8:30 - 5:00 TO ASSIST AND ANSWER QUESTIONS RELATING TO OUR FINANCIAL ASSISTANCE POLICY. PART VI, LINE 4: THE PROFILES OF STANLY REGIONAL MEDICAL CENTER AUDIENCES CONSIST OF THE FOLLOWING GEOGRAPHIC AREAS: (1) CENTRAL SERVICE AREA - CONSISTING OF ALBEMARLE, NORWOOD, NEW LONDON, AND BADIN; (2) WESTERN SERVICE AREA -CONSISTING OF OAKBORO, STANFIELD, RICHFIELD, LOCUST, MISENHEIMER, GOLD HILL, AND MT. PLEASANT; (3) EASTERN SERVICE AREA - CONSISTING OF MT. GILEAD AND TROY. THE 2010 POPULATION FOR THE COUNTY WAS 60,585. THE 2014 PROJECTED POPULATION FOR THIS AREA IS 61,545. THE MEDIAN INCOME FOR STANLY COUNTY IS $42,518 WITH APPROXIMATELY 16% OF THE POPULATION FALLING BELOW THE POVERTY LEVEL. PART VI, LINE 5: STANLY REGIONAL PROMOTES WELLNESS AND DISEASE MANAGEMENT IN THE COMMUNITIES IT SERVES BY HOSTING NUMEROUS HEALTH SCREENINGS TARGETING HIGH BLOOD PRESSURE, STROKE PREVENTION, HEART DISEASE AND DIABETES. THESE SCREENINGS TAKE PLACE THROUGH CIVIC GROUPS, AREA CHURCHES, COMMUNITY GROUPS AND GEOGRAPHIC SERVICE AREA EVENTS AND FESTIVALS. OUR EMPLOYEES ALSO SERVE AS MEMBERS OF A SPEAKER'S BUREAU WHERE THEY SERVE AS GUEST LECTURERS ON HEALTHCARE TOPICS OF INTEREST TO ORGANIZATIONS, SCHOOLS AND PUBLIC FORUMS.IN ADDITION TO DISEASE-SPECIFIC HEALTH SCREENINGS AND EDUCATION, THE HOSPITAL WORKS CLOSELY WITH OTHER AREA NOT-FOR-PROFITS TO CULTIVATE THE COMMUNITY'S NEEDS (HABITAT FOR HUMANITY, ADOPT-A-HIGHWAY, COMMUNITY TABLE, GROUP HOMES FOR THE AUTISTIC, ETC). THROUGH COMMUNITY EFFORTS AND INITIATIVES, THE HOSPITAL'S EMPLOYEES HAVE ASSISTED IN BUILDING AND CLEAN UP PROJECTS, AS WELL AS FEEDING AND CARING FOR THOSE LESS FORTUNATE IN THE AREA. STANLY REGIONAL ALSO DONATES MEDICAL SUPPLIES AS NEEDED TO AREA CHURCH GROUPS LEAVING FOR OVERSEAS MISSION TRIPS. PART VI, LINE 7, REPORTS FILED WITH STATES NC 1 EDUCATIONAL ASSISTANCE 20 73219 PART I, LINE 2: EMPLOYEES ARE GRANTED EDUCATION REIMBURSEMENT BASED ON NEED, AVAILABILITY, AND APPROPRIATE DOCUMENTATION. X X X X X 0 0 0 0 0 0 0 0 0 DR MIKE MCLEOD BOARD MEMBER 0 272983 0 0 0 0 0 6160 0 20668 0 299811 0 0 ALFRED P TAYLOR PRESIDENT/CEO 259455 0 68265 0 19554 0 24597 0 30215 0 402086 0 0 0 NYKOLA SAMILO VP, CFO 177964 0 36140 0 2819 0 19457 0 25128 0 261508 0 0 0 JUDY DORAN CNE 137350 0 27740 0 1778 0 12194 0 9998 0 189060 0 0 0 PAUL D'AMICO CMO 133957 0 20000 0 0 0 1125 0 9701 0 164783 0 0 0 BRIAN FREEMAN VP, OPERATIONS 165791 0 0 0 0 0 6975 0 18663 0 191429 0 0 0 ANJANA YOUNG DIRECTOR, ANESTHESIOLOGY 249259 0 0 0 0 0 9708 0 12109 0 271076 0 0 0 WILLIAM DENNIS ANESTHESIOLOGIST 178363 0 0 0 0 0 3680 0 18158 0 200201 0 0 0 JEFFREY PITMAN ANESTHESIOLOGIST 202077 0 0 0 0 0 0 0 6955 0 209032 0 0 0 JESSICA STEED ANESTHESIOLOGIST 180833 0 0 0 0 0 7729 0 25260 0 213822 0 0 0 SUZANNE MCLESTER ANESTHESIOLOGIST 188258 0 0 0 0 0 5902 0 17384 0 211544 0 0 0 FORM 990, PART VI, SECTION A, LINE 3 THREE EMPLOYEES (CEO, COO, CFO) ARE EMPLOYED BY THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM ("CHS") AND LEASED TO THE ORGANIZATION THROUGH A MANAGEMENT AGREEMENT. FORM 990, PART VI, SECTION A, LINE 4 SUMMARY OF SIGNIFICANT CHANGES TO GOVERNING DOCUMENTS STANLY REGIONAL MEDICAL CENTER EFFECTIVE MARCH 1, 2014, THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY ("CMHA"), A NORTH CAROLINA HOSPITAL AUTHORITY THAT AS A POLITICAL SUBDIVISION OF THE STATE OF NORTH CAROLINA, IS NOT SUBJECT TO FEDERAL INCOME TAXES, BECAME THE SOLE MEMBER OF STANLY HEALTH SERVICES, INC. ("SHS"), A NORTH CAROLINA NONPROFIT ORGANIZATION EXEMPT UNDER SECTION 501(C)(3). BECAUSE THE ORGANIZATION'S SOLE MEMBER IS SHS, CMHA IS NOW THE ULTIMATE PARENT OF THE ORGANIZATION. THE FOLLOWING SIGNIFICANT CHANGES WERE MADE TO THE ORGANIZATION'S GOVERNING DOCUMENTS IN 2014: - THE GOVERNING DOCUMENTS INDICATE THAT SHS, A WHOLLY OWNED SUBSIDIARY OF CMHA, IS THE SOLE MEMBER OF THE ORGANIZATION, AND THAT CMHA IS THE ULTIMATE PARENT OF THE ORGANIZATION. - A NEW EXEMPT PURPOSE OF THE ORGANIZATION WAS ADDED: TO ACT AS AN INTEGRAL PART AND INSTRUMENTALITY OF CMHA, A VERTICALLY INTEGRATED HEALTHCARE DELIVERY SYSTEM ORGANIZED AS A HOSPITAL AUTHORITY UNDER THE NORTH CAROLINA HOSPITAL AUTHORITIES ACT. - THE COMPOSITION OF THE BOARD OF DIRECTORS WAS CHANGED FROM A MINIMUM OF TWELVE, TO A BOARD COMPOSED OF THREE TO TEN MEMBERS, AS FIXED BY THE ORGANIZATION'S SOLE MEMBER, SHS. UNTIL MARCH 1, 2016, TWO OF THE ORGANIZATION'S DIRECTORS MUST HAVE BEEN DIRECTORS OF SHS AS OF FEBRUARY 28, 2014; OTHERWISE, ONLY OFFICERS OR EMPLOYEES OF CMHA MAY SERVE AS DIRECTORS. - THE ORGANIZATION'S SOLE MEMBER, SHS, NOW HAS THE RIGHT TO APPOINT THE ORGANIZATION'S DIRECTORS AND TO REMOVE DIRECTORS AT ANY TIME WITHOUT CAUSE. PREVIOUSLY, SHS HAD THE RIGHT TO APPOINT DIRECTORS AND DIRECTORS COULD BE REMOVED FOR CAUSE BY A 2/3 VOTE OF THE ORGANIZATION'S BOARD OF DIRECTORS OR BY SHS. - THE OFFICERS OF THE ORGANIZATION NOW CONSIST OF A PRESIDENT, A SECRETARY, A TREASURER AND SUCH VICE PRESIDENTS, ASSISTANT SECRETARIES, AND OTHER OFFICERS AS THE BOARD MAY FROM TIME TO TIME APPOINT. PREVIOUSLY, THE BOARD OF DIRECTORS APPOINTED THE PRESIDENT AND CEO, WHO APPOINTED OTHER OFFICERS. - THE FOLLOWING FUNDAMENTAL ACTIONS REQUIRE ACTION BY OR APPROVAL OF SHS AND CMHA: (A) AMENDMENT OF THE ORGANIZATION'S BYLAWS OR ARTICLES OF INCORPORATION; (B) SALE OF SUBSTANTIALLY ALL OF THE ORGANIZATION'S ASSETS; AND (C) MERGER OR DISSOLUTION OF THE ORGANIZATION. PREVIOUSLY, SHS'S APPROVAL WAS REQUIRED TO AMEND THE ORGANIZATION'S BYLAWS. - CMHA IS GIVEN THE RIGHT TO: (A) PREPARE, CONTROL OR APPROVE THE ORGANIZATION'S BUDGETS; (B) REQUIRE AUDITS OF THE ORGANIZATION'S BOOKS AND OTHER RECORDS; (C) CONTROL OR APPROVE THE ORGANIZATION'S INVESTMENTS, EXPENDITURES, DEBTS AND LIABILITIES; AND (D) MONITOR THE ORGANIZATION'S DAILY OPERATIONS. - UPON DISSOLUTION OF THE ORGANIZATION, ITS ASSETS ARE TO BE DISTRIBUTED, TO BE USED FOR A PUBLIC PURPOSE OR FOR ONE OR MORE EXEMPT PURPOSES WITHIN THE MEANING OF SECTION 501(C)(3), TO CMHA OR ANY CORPORATE ENTITY CONTROLLED BY CMHA WHOSE INCOME IS EXEMPT FROM FEDERAL TAXATION AS AN INTEGRAL PART OF CMHA, UNDER SECTION 115 OF THE INTERNAL REVENUE CODE OR UNDER SECTION 501(C)(3). IF CMHA IS NOT THEN IN EXISTENCE, ITS INCOME IS NOT THEN EXEMPT FROM TAXATION, OR NO ENTITY CONTROLLED BY CMHA WHOSE INCOME IS EXEMPT FROM FEDERAL TAXATION IS THEN IN EXISTENCE, THE ASSETS OF THE CORPORATION ARE TO BE DISTRIBUTED FOR ONE OR MORE EXEMPT PURPOSES WITHIN THE MEANING OF SECTION 501(C)(3) OR TO THE FEDERAL GOVERNMENT, A STATE OR LOCAL GOVERNMENT, OR A POLITICAL SUBDIVISION THEREOF, FOR A PUBLIC PURPOSE. FORM 990, PART VI, SECTION B, LINE 11 CFO & CONTROLLER WILL REVIEW THE FORM 990. AFTER INTERNAL REVIEW, THE FORM 990 IS DISTRIBUTED ELECTRONICALLY TO BOARD MEMBERS VIA DIRECTOR'S DESK FOR REVIEW PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C EACH MEMBER OF THE BOARD OF DIRECTORS FILES A CONFLICT OF INTEREST STATEMENT ANNUALLY WHICH IS REVIEWED BY THE CORPORATE COMPLIANCE OFFICE AND THE BOARD CHAIR AND IS MAINTAINED BY THE CORPORATE SECRETARY. MEMBERS WITH POTENTIAL CONFLICTS ARE ASKED TO EXCUSE THEMSELVES FROM VOTING ON MATTERS THAT ARE OF POTENTIAL CONFLICT. DIRECTORS AND EMPLOYESS WITH PURCHASING RESPONSIBILITIES ARE ALSO REQUIRED TO COMPLETE A CONFLICT OF INTEREST STATEMENT WHICH IS MAINTAINED BY THE CORPORATE COMPLIANCE OFFICER. FORM 990, PART VI, SECTION B, LINE 15 CHS, WHICH LEASES THE CEO, CNO, CMO AND CFO TO THE ORGANIZATION THROUGH A MANAGEMENT AGREEMENT, CONDUCTS AN ANNUAL COMPENSATION THAT BENCHMARKS THE SALARIES OF THOSE INDIVIDUALS TO THE SALARIES OF SIMILARLY SITUATED SERVICE PROVIDERS. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: UNRECOGNIZED PENSION EXPENSE TRANSFERS TO AFFILIATES, NET -3,761,205. EQUITY EARNINGS -454,108. ASSETS RELEASED FROM RESTRICTIONS 130,440. ASSETS RELEASED FROM RESTRICTIONS 130,440. CHANGE IN ACCOUNTING STANDARDS FROM FASB TO GASB 3,951,963. STANLY REGIONAL MEDICAL CENTER FOUNDATION INC 301 YADKIN STREET ALBEMARLE NC 28001 561698181 CHARITY NC 501(C)(3) 170(B)(1)(A)(VI) N/A 0 STANLY MEDICAL SERVICES INC 320 YADKIN STREET ALBEMARLE NC 28001 561892763 HEALTHCARE NC 501(C)(3) 509(A)(2) N/A 0 STANLY MANOR INC 625 BETHANY ROAD ALBEMARLE NC 28001 561623092 LONG-TERM HEALTHCARE NC 501(C)(3) 509(A)(2) N/A 0 STANLEX INC 907 NORTH SECOND STREET ALBEMARLE NC 28001 561532751 HEALTHCARE NC 501(C)(3) 509(A)(3) N/A 0 STANLY REGIONAL WEST LLC 301 YADKIN STREET ALBEMARLE NC 28001 260512251 HEALTHCARE NC N/A RELATED 0 1 0.24200 WEST STANLY IMAGING LLC 301 YADKIN STREET ALBEMARLE NC 28001 262414332 HEALTHCARE NC N/A RELATED 0 1 0.51000 ALLIANCE MEDICAL INC 907 N SECOND STREET ALBEMARLE NC 28002 561682606 HEALTHCARE NC N/A C 1.00000 0 LIFESMART INC 301 YADKIN STREET ALBEMARLE NC 28001 010790640 HEALTHCARE NC N/A C 1.00000 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 STANLY MEDICAL SERVICES INC A 982647 STANLY MEDICAL SERVICES INC P 1645256 STANLY MEDICAL SERVICES INC R 215000 STANLY REGIONAL MEDICAL CENTER FOUNDATION INC C 124514 STANLY REGIONAL MEDICAL CENTER FOUNDATION INC M 69245 STANLY REGIONAL MEDICAL CENTER FOUNDATION INC Q 4884 STANLY MANOR INC L 47250 STANLY MANOR INC Q 622614 HOME CARE OF THE CAROLINAS INC L 24000 HOME CARE OF THE CAROLINAS INC Q 506731 WEST STANLY IMAGING INC O 162469 ALLIANCE MEDICAL INC Q 117052 LIFESMART INC L 59044 LIFESMART INC Q 2747