2015-05-12T07:55:20-05:00 2014-06-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2013-07-01 561844262 MURPHY MEDICAL CENTER INC MURP 8288357505 4130 US HWY 64 EAST MURPHY NC 28906 STEVE GILGEN CFO 8288357505 2015-05-11 1 JEREMY NAESS P01306905 8282542254 2013 2016-02-25 16:41:14Z MIKE STEVENSON 4130 US HWY 64 EAST MURPHY NC 28906 61841193 0 X HTTP://WWW.MURPHYMEDICAL.ORG/ X 1993 NC PROVIDING MEDICAL CARE TO THE COMMUNITY. 8 6 634 135 0 0 77854 171328 59776614 60782985 74982 51577 784230 760458 60713680 61766348 0 0 0 0 31319654 31920042 0 0 0 30038504 29634648 61358158 61554690 -644478 211658 42953872 44808238 11015529 12651062 31938343 32157176 TO HELP MAKE OUR COMMUNITY A HEALTHIER AND BETTER PLACE TO LIVE. 0 0 50424082 0 60807101 THE MISSION OF MURPHY MEDICAL CENTER, INC. IS TO ENSURE QUALITY HEALTHCARE TO THE RESIDENTS OF MURPHY, NC AND SURROUNDING COMMUNITIES. DURING FISCAL YEAR 06/30/14 THE MEDICAL CENTER PROVIDED 7,053 INPATIENT DAYS, 60,871 OUTPATIENT VISITS, 39,114 DAYS OF LONG TERM CARE, 11,875 URGENT CARE CENTER VISITS, 10,589 HOME HEALTH VISITS, AND RESPONDED TO 17,003 EMERGENCY ROOM VISITS. THE AMOUNT OF CHARITY CARE FOR THE YEAR WAS APPROXIMATELY $6,737,013. 50424082 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 67 0 1 634 1 0 0 0 0 0 0 0 0 0 0 X 8 6 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X STEVE GILGEN 8288357505 3990 E US HWY 64 ALT MURPHY NC 28906 JOHN CARRINGER CHAIRMAN-TRUSTEE 1.00 1.00 X X 0 0 0 BILL HUGHES VICE CHAIRMAN-TRUSTEE 1.00 1.00 X X 0 0 0 TOM O'BRIEN TREASURER-TRUSTEE 1.00 X X 0 0 0 BILL FORSYTH TRUSTEE 1.00 X 0 0 0 DAVID HILTON TRUSTEE 1.00 X 0 0 0 LARRY KERNEA TRUSTEE 1.00 X 0 0 0 DANIEL STROUP TRUSTEE 1.00 X 0 0 0 MIKE STEVENSON PRESIDENT/CEO 40.00 1.00 X 234288 0 64194 STEVE GILGEN CFO 40.00 X 152201 0 34446 TONI LOVINGOOD COO 40.00 X 146835 0 35019 ROSEMARY CHICKOS PHYSICIAN 40.00 X 275901 0 9402 BRENT DAVIS MD PHYSICIAN 40.00 X 755845 0 15581 LANEAU HAYES PHYSICIAN 40.00 X 362067 0 0 LARRY HOLDER MD PHYSICIAN 40.00 X 284845 0 15581 LAURENCE SO PHYSICIAN 40.00 X 276134 0 5791 2488116 0 180014 29 0 1 0 PHOENIX PHYSICIANS 1501 NW 49TH ST STE 140 FORT LAUDERDALE FL 33309 ER PHYSICIAN COVERAGE 494765 DIXON HUGHES GOODMAN LLP PO BOX 3049 ASHEVILLE NC 28802 ACCOUNTING AND CONSULTING 248503 2 90131 81197 171328 NET PATIENT SERVICE REVENUE 621110 59912761 59912761 MEANINGFUL USE 900099 712145 712145 REHABILITATION CENTER 621110 163409 163409 ANCILLARY SERVICES 621110 5332 5332 INCOME FROM WRRTCP 621110 -10662 -10662 60782985 36361 36361 112731 36256 76475 76475 76475 15216 0 15216 15216 15216 62705 38589 24116 24116 CAFETERIA INCOME 722210 358062 358062 PHARMACEUTICAL SALES 446110 147231 147231 VENDOR DISCOUNTS 621110 134414 134414 20160 20160 659867 61766348 60807101 0 787919 X 799568 799568 25472063 21017305 4454758 3705663 2964530 741133 1942748 1554198 388550 30218 30218 322153 322153 1628692 1628692 8145960 6516768 1629192 83170 83170 1709603 1367682 341921 1133348 906678 226670 306255 245004 61251 118902 118902 2698602 2698602 423332 423332 MEDICAL SUPPLIES 7667149 7667149 BAD DEBT 5320525 5320525 MISCELLANEOUS 46739 46739 61554690 50424082 11130608 0 2243995 2915336 10736307 13348699 8770813 7892811 358252 289586 1128323 1145701 378637 338092 54411095 36241646 18107852 18169449 -34558 -45220 1264251 753784 42953872 44808238 6383825 6533760 3246785 4025988 1384919 2091314 11015529 12651062 X 31938343 32157176 31938343 32157176 42953872 44808238 211658 7175 0 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 631477 1373207 2004684 25957017 15272349 10684668 2357030 2052624 304406 23973900 18916673 5057227 118464 118464 18169449 3RD PARTY SETTLEMENTS 2091314 2091314 X 56512627 7175 74845 82020 56430607 5335741 5335741 61766348 56293794 74845 74845 56218949 5335741 5335741 61554690 PART X, LINE 2: THE SYSTEM HAS BEEN RECOGNIZED AS TAX-EXEMPT PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE SYSTEM ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH ASC TOPIC 740, INCOME TAXES ("ASC 740"); HOWEVER, DURING 2014 AND 2013, NO SIGNIFICANT TRANSACTIONS RESULTED UNDER ASC 740. ACCORDINGLY, NO PROVISION FOR STATE OR FEDERAL INCOME TAXES HAS BEEN PRESENTED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. ASC 740 ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNDER ASC 740-10-25, THE SYSTEM MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES BASED ON THE TECHNICAL MERITS OF THE POSITION. ANY TAX POSITION RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. ASC 740 ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES AND ACCOUNTING IN INTERIM PERIODS. THE SYSTEM HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF JUNE 30, 2014 AND 2013, RESPECTIVELY. FISCAL YEARS ENDING ON AND AFTER JUNE 30, 2011 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 36,256. GIFT SHOP EXPENSES 38,589. GAP ASSESSMENT PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN FROM SALE OF ASSETS 15,216. BAD DEBT EXPENSE - NETTING 5,320,525. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 36,256. GIFT SHOP EXPENSES 38,589. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN FROM SALE OF ASSETS 15,216. BAD DEBT EXPENSE 5,320,525. 1 1 1 X 1 X 1 1 1 0 1 1 2317901 2317901 0.04120 8204722 8666174 -461452 0.00000 10522623 8666174 1856449 0.04120 379761 379761 0.00680 379761 379761 0.00680 10902384 8666174 2236210 0.04800 0 5320525 16906326 14774309 2132017 X 1 1 1 1 MURPHY MEDICAL CENTER 3990 E US HWY 64 ALT MURPHY NC 28906 X X X MURPHY MEDICAL CENTER 1 1 X X X X X X X X X 12 1 0 1 X SEE DISCLOSURE FOR URL X X X X X X X X X 1 0 1 1 200.000000000000 1 350.000000000000 1 X X X X X X 1 1 X X 1 0 1 X 0 0 MURPHY MEDICAL CENTER PART V, SECTION B, LINE 3: THE GOOD WORK OF MURPHY MEDICAL CENTER IS HIGHLY DEPENDENT ON GOOD RELATIONSHIPS WITH LOCAL AND REGIONAL PARTNERS WORKING ON BEHALF OF AREA RESIDENTS. IT ROUTINELY WORKS WITH THE FOLLOWING AGENCIES AND BUSINESSES IN THE SERVICE OF IT COMMUNITY MEMBERS:- CHEROKEE COUNTY COMMISSIONERS- CHEROKEE COUNTY EMS- CHEROKEE COUNTY HEALTH DEPARTMENT- CHEROKEE COUNTY SCHOOLS- CHEROKEE COUNTY SENIOR SERVICES- CHEROKEE COUNTY SHERIFF'S DEPARTMENT- CHEROKEE COUNTY SOCIAL SERVICES- CHEROKEE COUNTY TRANSPORTATION- COALITION FOR SAFE & DRUG-FREE CHERKEE COUNTY- TOWN OF ANDREWS- TOWN OF MURPHY- CLAY COUNTY COMMISSIONERS- CLAY COUNTY EMS- CLAY COUNTY HEALTH DEPARTMENT- CLAY COUNTY SCHOOLS- CLAY COUNTY SENIOR CENTER- CLAY COUNTY SHERIFF'S DEPARTMENT- CLAY COUNTY SOCIAL SERVICES- CLAY COUNTY TRANSPORTATION- TOWN OF HAYESVILLE- GRAHAM COUNTY COMMISSIONERS- GRAHAM COUNTY EMS- GRAHAM COUNTY HEALTH DEPARTMENT- GRAHAM COUNTY SCHOOLS- GRAHAM COUNTY SHERIFF'S DEPARTMENT- TOWN OF ROBBINSVILLE- ANDREWS INTERNAL MEDICINE- JACK CHAPMA, MD- CHATUGE FAMILY PRACTICE- DANIEL EICHENBAUM, MD- JEFFREY MARTIN, MD MURPHY MEDICAL CENTER PART V, SECTION B, LINE 5D: THE ORGANIZATIONS COMMUNITY HEALTH NEEDS ASSESSMENT CAN BE FOUND AT THE FOLLOWING WEBSITE ADDRESS:HTTP://WWW.MURPHYMEDICAL.ORG/WP-CONTENT/UPLOADS/2014/03/MMCCHNAFINAL.PDF MURPHY MEDICAL CENTER PART V, SECTION B, LINE 20D: THE HOSPITAL USED A SLIDE SCALE TO DETERMINE THE MAXIMUM AMOUNTS THAT CAN BE CHARGED TO FAP-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE. 3 GOOD SHEPHERD HOME AND HEALTH HOSPICE 3990 EAST US HWY 64 ALT MURPHY NC 28906 HOSPICE URGENT CARE CENTER 183 LEDFORD STREET MURPHY NC 28906 URGENT CARE CENTER MURPHY GROUP PRACTICE 2076 HWY 69S HAYESVILLE NC 28904 GROUP PRACTICE PART I, LINE 7: THE ORGANIZATION UTILIZED THE IRS SCHEDULE H WORKSHEETS IN DETERMINING A COST TO CHARGE RATIO. PART I, LN 7 COL(F): THE TOTAL EXPENSE ON FORM 990, PART XI, LINE 25 CONTAINS A BAD DEBT EXPENSE OF 6,714,737 THAT HAS BEEN REMOVED FOR PURPOSES OF COMPUTING LINE 7, COLUMN R. PART II, COMMUNITY BUILDING ACTIVITIES: THE ORGANIZATIONS EFFORT IN COMMUNITY BUILDING ACTIVITIES IMPROVE THE COMMUNITY IN THE FOLLOWING WAYS.ECONOMIC DEVELOPMENT - EMPLOYEES ATTEND REGULAR MEETINGS AND SERVE ON BOARDS SUCH AS THE JOB SERVICE EMPLOYEE COUNCIL AND CAREER AND TECHNICAL EDUCATION COUNCIL THAT HELP CREATE/RETAIN JOBS IN OUR SERVICE AREA.COMMUNITY SUPPORT - SPONSORSHIPS TO VARIOUS ORGANIZATIONS SUCH AS AMERICAN CANCER SOCIETIES, UNITED WAY, HAVEN (A CHILD ADVOCACY PROGRAM) , NC FOUNDATION FOR ADVANCED HEALTH PROGRAMS, AND NC HEALTH PHYSICIANS PROGRAM. SPONSORED A LOCAL GOLF TOURNAMENT BENEFITING THE JUVENILE DIABETES RESEARCH FOUNDATION. DONATED FOOD MONTHLY TO A LOCAL HOMELESS SHELTER. PROVIDED MEALS DURING CME COURSES FOR COMMUNITY PHYSICIANS. SPONSORED A COMMUNITY YARD SALE FOR FINANCIALLY CHALLENGED FAMILIES WITH SMALL CHILDREN.COMMUNITY HEALTH IMPROVEMENT ADVOCACY - ALLOW LOCAL HIGH SCHOOL STUDENTS PLANNING TO ENTER THE HEALTH CARE FIELD TO SHADOW VARIOUS EMPLOYEES IN CERTAIN DEPARTMENTS; AWARDED 21 SCHOLARSHIPS TO LOCAL GRADUATING HIGH SCHOOL STUDENTS PLANNING TO ENTER THE HEALTH CARE FIELD; ALLOW EMPLOYEES TO DONATE BLOOD DURING WORK DAY; FREE RENT AND UTILITIES IN A VACANT DOCTOR'S OFFICE FOR A GOODWILL STORE OFFERED THROUGH SOCIAL SERVICES FOR FOSTER PARENTS/CHILDREN; FREE RENT FOR A DENTAL CLINIC.WORKFORCE DEVELOPMENT - PHYSICIAN RECRUITMENT PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOT NOTE ON BAD DEBT. THE COST TO RATIO WAS CALCULATED USING THE IRS SCHEDULE WORKSHEETS. THE ORGANIZATION IS NOT INCLUDING ANY AMOUNT OF BAD DEBT AS COMMUNITY BENEFIT IN THIS REPORT. PART III, LINE 9B: IF PATIENTS MEET THE QUALIFICATIONS IN REGARDS TO OUR CHARITY CARE POLICY THEY ARE GIVEN CHARITY CARE. THE ORGANIZATION USES FINANCIALS COUNSELORS TO DETERMINE THIS ELIGIBILITY. PART VI, LINE 2: MURPHY MEDICAL CENTER WORKS WITH COUNTY HEALTH DEPARTMENTS AND COUNTY GOVERNMENT AS A HEALTH COALITION TO DETERMINE HEALTH CARE NEEDS IN THE COMMUNITY. INPUT IS ALSO SOLICITED FROM SURROUNDING PHYSICIANS REGARDING APPROPRIATE SERVICES FOR THE AREA. PART VI, LINE 3: THE HOSPITAL NOTIFIES PATIENTS WHEN THEY REGISTER THAT WE HAVE A CHARITY CARE POLICY. THE CHARITY CARE POLICY IS ALSO POSTED ON THE FRONT PAGE OF THE WEBSITE. THE HOSPITAL THEN USES FINANCIAL COUNSELORS TO ASSIST PATIENTS IN DETERMINING IF THEY QUALIFY FOR CHARITY CARE. THE HOSPITAL ALSO DISCUSSES WITH THE PATIENT THE AVAILABILITY OF VARIOUS GOVERNMENT BENEFITS, SUCH AS MEDICAID OR STATE PROGRAMS, AND ASSIST THE PATIENT WITH QUALIFICATION FOR SUCH PROGRAMS, WHERE APPLICABLE. LANGUAGE BARRIERS ARE TAKEN INTO ACCOUNT WITH ALL PATIENT COMMUNICATIONS. A COPY OF THE POLICY CAN BE FOUND ON THE ORGANIZATION'S WEBSITE. PART VI, LINE 4: THE ORGANIZATION'S PRIMARY SERVICE AREAS ARE CHEROKEE AND CLAY COUNTY LOCATED IN THE SOUTHWESTERN CORNER OF NORTH CAROLINA. BOTH OF THESE AREAS HAVE BEEN DESIGNATED AS MEDICALLY UNDERSERVED. THE SECONDARY MARKETS COSIST OF FANNIN AND UNION COUNTIES IN NORTH GEORGIA, POLK COUNTY IN EAST TENNESSEE AND GRAHAM COUNTY IN NORTH CAROLINA. PART VI, LINE 5: THE ORGANIZATION'S HOSPITAL, PHYSICIANS, LONG TERM CARE FACILITY AND HOME HEALTH AND HOSPICE AGENCY FURTHER ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY IN SEVERAL OTHER WAYS. A MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE AREA WHO ARE NEITHER EMPLOYEES, CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. FURTHERMORE, THE ORGANIZATION EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR ALL OF ITS DEPARTMENTS. IF ANY SURPLUS EXISTS AT THE END OF THE FISCAL YEAR, THE ORGANIZATION APPLIES SURPLUS FUNDS TO IMPROVEMENTS IN PATIENT CARE AND MEDICAL EDUCATION. THE HOSPITAL OPERATES AN EMERGENCY ROOM AVAILABLE TO ALL REGARDLESS OF ABILITY TO PAY. THE HOSPITAL PARTICIPATES IN EDUCATION AND TRAINING OF HEALTHCARE PROFESSIONALS. THE HOSPITAL PARTICIPATES IN GOVERNMENT-SPONSORED HEALTH PROGRAMS. THE ORGANIZATION SERVES AS A VEHICLE FOR ATTRACTING AND EFFECTIVELY USING DONATED FUNDS. THE HOSPITAL OFFERS VOLUNTEER OPPORTUNITES TO MEMBERS OF THE COMMUNITY. PART VI, LINE 7, REPORTS FILED WITH STATES NC X X 0 0 0 0 0 0 0 0 0 MIKE STEVENSON PRESIDENT/CEO 216295 0 0 0 17993 0 48167 0 16027 0 298482 0 0 0 STEVE GILGEN CFO 149976 0 0 0 2225 0 16935 0 17511 0 186647 0 0 0 TONI LOVINGOOD COO 135507 0 0 0 11328 0 16281 0 18738 0 181854 0 0 0 ROSEMARY CHICKOS PHYSICIAN 275799 0 102 0 0 0 0 0 9402 0 285303 0 0 0 BRENT DAVIS MD PHYSICIAN 509908 0 245937 0 0 0 0 0 15581 0 771426 0 0 0 LANEAU HAYES PHYSICIAN 361965 0 102 0 0 0 0 0 0 0 362067 0 0 0 LARRY HOLDER MD PHYSICIAN 284634 0 211 0 0 0 0 0 15581 0 300426 0 0 0 LAURENCE SO PHYSICIAN 276032 0 102 0 0 0 454 0 5337 0 281925 0 0 0 CHATUGE FAMILY PRACTICE - DR DANIE PRACTICE LOAN - CAPITAL / OPERATIONS X 500000 289586 0 1 1 289586 FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL BE COMPOSED OF THE CHAIRMAN OF THE BOARD OF DIRECTORS AS THE CHAIRMAN OF THE COMMITTEE, THE VICE CHAIRMAN OF THE BOARD OF DIRECTORS, AND ONE OTHER MEMBER OF THE BOARD OF DIRECTORS ELECTED TO THE COMMITTEE BY THE BOARD OF DIRECTORS. MEMBERS OF THE EXECUTIVE COMMITTEE SHALL SERVE A TERM OF THE OFFICE OF ONE YEAR WHICH WILL CO-EXTEND WITH THE TERM OF OFFICE OF THE CHAIRMAN OF THE BOARD OF DIRECTORS. THE EXECUTIVE COMMITTEE SHALL HAVE THE AUTHORITY AND RESPONSIBILITY: - TO TRANSACT ALL REGULAR BUSINESS OF THE BOARD OF DIRECTORS DURING THE INTERIM BETWEEN REGULAR MEETINGS OF THE BOARD OF DIRECTORS, PROVIDED THAT ANY ACTION TAKEN SHALL NOT CONFLICT WITH POLICIES AND DIRECTIVES PREVIOUSLY ADOPTED BY THE ENTIRE BOARD DIRECTORS, AND - TO HEAR AND ACT UPON FORMAL RECOMMENDATIONS AND COMPLAINTS PRESENTED BY THE MEDICAL STAFF TO THE EXECUTIVE COMMITTEE FOR CONSIDERATION AND ACTION. - SHOULD ANY MATTER OF MAJOR IMPORTANCE AND EXTREME URGENCY COME TO THE ATTENTION OF THE EXECUTIVE CIMMITTEE BETWEEN REGULAR MEETINGS, IF TIME PERMITS, THE EXECUTIVE COMMITTEE SHALL REFER THAT MATTER TO THE BOARD OF DIRECTORS AND REQUEST THE CHAIRMAN TO CALL A SPECIAL MEETING OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION ENTERED INTO A TEN-YEAR MANAGEMENT SERVICES AGREEMENT WITH THE CHARLOTTE-MECKLENBURG HOSPITAL AUTHORITY DBA CAROLINAS HEALTHCARE SYSTEM (CHS) ON JULY 1, 2011. UNDER THE TERMS OF THE AGREEMENT, THE CURRENT BOARD OF DIRECTORS WILL CONTINUE TO GOVERN WHILE THE EXECUTIVE OFFICERS (CEO,CFO,COO, AND CNO) WILL BECOME EMPLOYEES OF CHS. THE ORGANIZATION REIMBURSES CHS THE SALARY AND BENEFIT COST OF THESE INDIVIDUALS. THE ORGANIZATION IS UTILIZING PART VII AND SCHEDULE J OF THE FORM 990 TO REPORT THE COMPENSATION PAID TO THE CEO, CFO, AND COO BY THE MANAGEMENT COMPANY FOR SERVICES PROVIDED TO THE FILING ORGANIZATION. THE COMPENSATION HAS BEEN REPORTED IN THE FILING ORGANIZATION'S COMPENSATION COLUMNS. FORM 990, PART VI, SECTION B, LINE 11 THE 990 WAS REVIEWED BY THE INDEPENDENT RETURN PREPARER WITH THE BOARD OF DIRECTORS WITH A QUESTION AND ANSWER PERIOD AT A BOARD MEETING PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES BOARD MEMBERS TO SIGN A CONFLICT OF INTEREST POLICY ANNUALLY. IT IS THE RESPONSIBILITY OF EACH MEMBER TO DISCLOSE ANY POTENTIAL CONFLICTS AND REMOVE HIMSELF FROM SITUATIONS WITH A POTENTIAL CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMING COMPENSATION FOR THE CEO AND CFO ENTAILS A REVIEW OF PERFORMANCE BY THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES. CONDUCTING A COMPENSATION BENCHMARK STUDY BY AN INDEPENDENT RECOGNIZED THIRD PARTY, AND A REVIEW OF COMPENSATION BY CAROLINAS HEALTHCARE SYSTEM'S COMPENSATION COMMITTE OF THE BOARD OF DIRECTORS. FINAL APPROVAL IS THEN MADE AND DOCUMENTED BY THE MURPHY MEDICAL CENTER BOARD OF TRUSTEES. FORM 990, PART VI, SECTION C, LINE 18 IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE MADE AVAILABLE ONLINE AT WWW.GUIDESTAR.COM. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 2,361,071. MANAGEMENT AND GENERAL EXPENSES 590,268. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,951,339. CONTRACT SERVICES: PROGRAM SERVICE EXPENSES 3,274,090. MANAGEMENT AND GENERAL EXPENSES 818,522. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,092,612. CONSULTANT FEES: PROGRAM SERVICE EXPENSES 99,669. MANAGEMENT AND GENERAL EXPENSES 24,917. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 124,586. PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 662,319. MANAGEMENT AND GENERAL EXPENSES 165,580. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 827,899. OTHER PROFESSIONAL FEES: PROGRAM SERVICE EXPENSES 119,619. MANAGEMENT AND GENERAL EXPENSES 29,905. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 149,524. PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM PRIOR YEARS. MURPHY MEDICAL CENTER FOUNDATION INC 3990 US HWY 64 EAST ALT MURPHY NC 28906 561877247 TO SUPPORT MURPHY MEDICAL CENTER NC 501(C)(3) LINE 11A, I SOUTHWESTERN HEALTH SYSTEM INC 0 SOUTHWESTERN HEALTH SYSTEM INC 3990 US HWY 64 EAST ALT MURPHY NC 28906 010552914 NO ACTIVITY NC 501(C)(3) LINE 11A, I N/A 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0