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      <Description>Infirmary Health System (IHS) provides centralized management and administrative services to four not-for-profit hospitals, a skilled nursing facility, a not-for-profit hospice agency, a charitable foundation, and a network of more than twenty medical clinics. IHS is focused on achieving economies of scale for its supported facilities by providing centralized, coordinated services, allowing the facilities to offer state-of-the-art medical services at the lowest possible cost. Centralized and coordinated services include accounting, accounts payable, human resources, information technology, purchasing, business office, and maintenance, among many other support services. The services are provided to System facilities at a level of knowledge and experience that, in many cases, would not otherwise be available or affordable. IHS has spearheaded efforts to improve the availability of healthcare services in rural areas of Southwest Alabama. Recruitment of physicians to the rural community of Bay Minette, Alabama has remained a focus, resulting in several physicians relocating to the area. Capital investment in the facilities in Bay Minette continue to provide benefit to the community, with over 14,000 emergency services, almost 3,000 surgical cases, 246 newborn deliveries, and 20,447 adjusted patient days being provided. As a result of an assessment of community health needs, IHS supported the initiation of geriatric psychiatric services at its facility in Bay Minette, the only one of its kind in Baldwin County. Studies to determine additional healthcare needs of the community are ongoing. IHS has continued its efforts, begun in 2006, to provide facilities for medical school and residency training through a lease arrangement with the University of South Alabama for two of its teaching hospitals. Through IHS' broader scope of facilities, the arrangement has expanded the opportunity for medical students and residents otherwise limited to the University's hospitals. IHS has coordinated educational programs and opportunities with over twenty colleges and universities throughout the United States, affording internship and residency training opportunities for physical therapists, x-ray technicians, registered nurses, licensed practical nurses, and other health related technical personnel. In response to a community need, IHS built and now operates the E.A. Roberts Alzheimer Center, a day care center for the provision of care to patients suffering from Alzheimer's disease or senile dementia. This low-cost facility, the first of its kind in the region, provides much needed assistance and relief to family members of these patients. IHS and its employees are actively involved in supporting numerous local community benefit organizations, health fairs, and health advocacy organizations. Campaigns for United Way, the American Cancer Society, and many other national organizations are actively supported by the Organization and its employees as well. Blood drives are conducted regularly on IHS' campus, with employee volunteer donations strongly encouraged. In support of its desire to lead by example, IHS has initiated a wellness program for its employees, providing encouragement and incentives for employees to live a healthy lifestyle. The program will include health assessments that provide each participating employee with key health metrics. Plans for improving health will be formulated for each employee based upon their individual assessment results. IHS actively supports the efforts of the Infirmary Foundation, a non-private foundation formed to provide financial support for the Mobile Infirmary Association, a not-for-profit hospital in Mobile, Alabama. The Infirmary Foundation provides financial support for investment in state-of-the-art technology, allowing the Mobile Infirmary Association to provide the latest in advanced treatment options for its patients. The Infirmary Foundation, recognizing the shortage of qualified healthcare providers in the community, also invests in the education of future healthcare providers by offering scholarship opportunities for college students in the field of healthcare, and by providing funding support for System employees who further their education in the field of nursing. The IHS board, management and staff are committed to enhancing the healthcare status and related quality of life of the residents in the areas we serve along the central gulf coast region. By bringing efficiency through the coordination of services, eliminating redundancy and reducing cost, focusing on specific community needs, encouraging healthy lifestyles, supporting employee involvement in healthy initiatives, and enhancing educational opportunities for tomorrow's caregivers, these goals are being realized.</Description>
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        <BonusFilingOrg>41537</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>40984</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>9567</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>277096</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DANNY HARRISON</NamePerson>
        <Title>VICE PRESIDENT</Title>
        <BaseCompensationFilingOrg>165327</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>30533</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>37865</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>5294</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>239019</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>LABARRON MCCLENDON</NamePerson>
        <Title>VICE PRESIDENT</Title>
        <BaseCompensationFilingOrg>219542</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>36095</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>61252</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>12441</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>329330</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>ORMOND THOMPSON</NamePerson>
        <Title>VICE PRESIDENT</Title>
        <BaseCompensationFilingOrg>213433</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>40147</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>42460</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>12315</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>308355</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>HARRY BRISLIN</NamePerson>
        <Title>VICE PRESIDENT</Title>
        <BaseCompensationFilingOrg>143479</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>24614</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>31089</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>10932</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>210114</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <Identifier>HEALTH OR SOCIAL CLUB DUES AND FIRST CLASS CHARTER TRAVEL</Identifier>
        <ReturnReference>SCHEDULE J, PART I, LINE 1A</ReturnReference>
        <Explanation>SOCIAL CLUB DUES ARE PAID FOR EXECUTIVES TO CARRY ON INFIRMARY HEALTH SYSTEM, INC. (IHS) BUSINESS. THESE AMOUNTS ARE PART OF THE OVERALL COMPENSATION PACKAGE AND ARE APPROVED BY THE COMPENSATION COMMITTEE OF THE BOARD. The organization also CHARTERED a PLANE FOR FIVE BOARD MEMBERS TO ATTEND the VHA SEmi-ANNUAL CONFERENCE, SEPTEMBER 2012</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>SEVERANCE PAYMENTS</Identifier>
        <ReturnReference>SCHEDULE J, PART I, LINE 4A</ReturnReference>
        <Explanation>SEVERANCE PAYMENT TO ALAN WHALEY $40,384</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>457(F) PARTICIPATION</Identifier>
        <ReturnReference>SCHEDULE J, PART I, LINE 4B</ReturnReference>
        <Explanation>457(f) CONTRIBUTIONS: MARK NIX 107,067 JOSEPH DENTON 49,440 SCOTT BROWNING 24,205 MARY GEARY 18,564 DANNY HARRISON 15,758 WILLIAM MCLAUGHLIN 37,793 LABARRON MCCLENDON 21,002 JAMES MITCHELL 13,183 GENE MIYAMOTO 30,764 BARRE SANDERS 40,470 EDDY STEPHENS 23,001 DENNIS SUMMERFORD 15,656 ORMAND THOMPSON 19,583 ALAN WHALEY 45,000 KERN WILSON 17,341 SHEILA YOUNG 21,114 457(f) PAYMENTS: ALAN WHALEY 576,677</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>DESCRIPTION OF NON-FIXED PAYMENTS</Identifier>
        <ReturnReference>SCHEDULE J, PART I, LINE 7</ReturnReference>
        <Explanation>EACH FISCAL YEAR, INFIRMARY HEALTH SYSTEM, INC. AND ITS AFFILIATES ESTABLISH CORPORATE AND INDIVIDUAL GOALS BASED ON STRATEGIC INITIATIVES APPROVED BY THE BOARD OF DIRECTORS. THE GOALS ENSURE FOCUS ON AREAS SUCH AS: QUALITY, SERVICE, FINANCE, COMMUNITY, AND LEADERSHIP. A BOARD APPROVED COMPENSATION PHILOSOPHY OUTLINES THE PAYMENT OF ANNUAL INCENTIVES IF THE ESTABLISHED GOALS/CRITERIA ARE MET. GOAL SETTING AND ACCOMPLISHMENTS ARE REVIEWED ANNUALLY BY AN INTERNAL EXECUTIVE COMMITTEE AND APPROVED BY THE COMPENSATION COMMITTEE AND THE BOARD OF DIRECTORS. THE BOARD OR AUTHORIZED COMMITTEE THEREOF HAS THE DISCRETION TO DENY OR REDUCE PAYMENT UNDER THIS COMPENSATION PLAN DEPENDENT UPON THE PARTICULAR FACTS AND CIRCUMSTANCES.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleK documentId="IRS990ScheduleK">
      <Form990ScheduleKPartI>
        <BondReferenceCd>A</BondReferenceCd>
        <IssuerName>
          <BusinessNameLine1>INFIRMARY HEALTH SYSTEM SPECIAL CARE FACILITIES</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>631241115</IssuerEIN>
        <CUSIPNumber>45663NA25</CUSIPNumber>
        <DateIssued>2010-02-04</DateIssued>
        <IssuePrice>67801753</IssuePrice>
        <DescriptionOfPurpose>REVENUE BONDS SERIES 2006 AND 2008</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <BondReferenceCd>B</BondReferenceCd>
        <IssuerName>
          <BusinessNameLine1>IHS SPECIAL CARE FACILITIES AUTHORITY OF MOBILE</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>631241115</IssuerEIN>
        <CUSIPNumber>45663NBC5</CUSIPNumber>
        <DateIssued>2012-04-30</DateIssued>
        <IssuePrice>169408000</IssuePrice>
        <DescriptionOfPurpose>REVENUE BONDS SERIES 2012B,C,D,E,F</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartII>
        <BondReferenceCd>A</BondReferenceCd>
        <AmountRetired>7520000</AmountRetired>
        <AmountBondDefeased>0</AmountBondDefeased>
        <TotalProceeds>67801753</TotalProceeds>
        <AmountInReserveFund>6696288</AmountInReserveFund>
        <CapitalizedInterest>0</CapitalizedInterest>
        <RefundingEscrow>0</RefundingEscrow>
        <IssuanceCostsFromProceeds>0</IssuanceCostsFromProceeds>
        <CreditEnhancement>0</CreditEnhancement>
        <WorkingCapitalExpenditures>0</WorkingCapitalExpenditures>
        <CapitalExpenditures>0</CapitalExpenditures>
        <OtherSpentProceeds>61105465</OtherSpentProceeds>
        <AmountUnspent>0</AmountUnspent>
        <YearOfSubstCompletion>2012</YearOfSubstCompletion>
        <CurrentRefunding>true</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <BondReferenceCd>B</BondReferenceCd>
        <AmountRetired>0</AmountRetired>
        <AmountBondDefeased>0</AmountBondDefeased>
        <TotalProceeds>169408000</TotalProceeds>
        <AmountInReserveFund>0</AmountInReserveFund>
        <CapitalizedInterest>0</CapitalizedInterest>
        <RefundingEscrow>0</RefundingEscrow>
        <IssuanceCostsFromProceeds>0</IssuanceCostsFromProceeds>
        <CreditEnhancement>0</CreditEnhancement>
        <WorkingCapitalExpenditures>0</WorkingCapitalExpenditures>
        <CapitalExpenditures>0</CapitalExpenditures>
        <OtherSpentProceeds>169408000</OtherSpentProceeds>
        <AmountUnspent>0</AmountUnspent>
        <CurrentRefunding>true</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartIII>
        <BondReferenceCd>A</BondReferenceCd>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <PrcntgePrvtBusinessUseByOthers>0</PrcntgePrvtBusinessUseByOthers>
        <BondIssMeetPrvtSecurityPayTest>false</BondIssMeetPrvtSecurityPayTest>
        <ChangeInUseBondFinancedProp>false</ChangeInUseBondFinancedProp>
        <RemedialActionTaken>false</RemedialActionTaken>
        <NonQualifiedBondRemedProcdrs>false</NonQualifiedBondRemedProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <BondReferenceCd>B</BondReferenceCd>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>true</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <PrcntgePrvtBusinessUseByOthers>0.01257</PrcntgePrvtBusinessUseByOthers>
        <PercentageOfPrvtBusinessReUBI>0.00166</PercentageOfPrvtBusinessReUBI>
        <TotalPrivateBusinessUse>0.01422</TotalPrivateBusinessUse>
        <BondIssMeetPrvtSecurityPayTest>false</BondIssMeetPrvtSecurityPayTest>
        <ChangeInUseBondFinancedProp>false</ChangeInUseBondFinancedProp>
        <RemedialActionTaken>false</RemedialActionTaken>
        <NonQualifiedBondRemedProcdrs>false</NonQualifiedBondRemedProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIV>
        <BondReferenceCd>A</BondReferenceCd>
        <Form8038TFiled>false</Form8038TFiled>
        <RebateNotDueYet>true</RebateNotDueYet>
        <VariableRateIssue>false</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>0</BusinessNameLine1>
        </NameOfHedgeProvider>
        <GrossProceedsInvestedInGIC>false</GrossProceedsInvestedInGIC>
        <NameOfGICProvider>
          <BusinessNameLine1>0</BusinessNameLine1>
        </NameOfGICProvider>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <WrittenProcToMonitorReqs>false</WrittenProcToMonitorReqs>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <BondReferenceCd>B</BondReferenceCd>
        <Form8038TFiled>false</Form8038TFiled>
        <RebateNotDueYet>true</RebateNotDueYet>
        <VariableRateIssue>true</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <NameOfHedgeProvider>
          <BusinessNameLine1>0</BusinessNameLine1>
        </NameOfHedgeProvider>
        <GrossProceedsInvestedInGIC>false</GrossProceedsInvestedInGIC>
        <NameOfGICProvider>
          <BusinessNameLine1>0</BusinessNameLine1>
        </NameOfGICProvider>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <WrittenProcToMonitorReqs>false</WrittenProcToMonitorReqs>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartV>
        <BondReferenceCd>A</BondReferenceCd>
        <ProcToUndertkCorrectiveAction>false</ProcToUndertkCorrectiveAction>
      </Form990ScheduleKPartV>
      <Form990ScheduleKPartV>
        <BondReferenceCd>B</BondReferenceCd>
        <ProcToUndertkCorrectiveAction>false</ProcToUndertkCorrectiveAction>
      </Form990ScheduleKPartV>
      <Form990ScheduleKPartVI>
        <Identifier>REVENUE BONDS SERIES 2012 CUSIP NUMBER</Identifier>
        <ReturnReference>SCHEDULE K, PART I, LINE 1B, COLUMN (C)</ReturnReference>
        <Explanation>THE SERIES 2012 BONDS ARE BEING ISSUED IN THE BANK LOAN MODE UNDER THE RELATED INDENTURES FOR SUCH BONDS. EACH OF THE SERIES 2012B BONDS, 2012C BONDS, SERIES 2012E BONDS, AND SERIES 2012F BONDS WILL BE EVIDENCED BY A SINGLE PHYSICAL CERTIFICATE THAT WILL NOT BE IN THE BOOK ENTRY SYSTEM. THOSE BONDS WILL NOT BE ASSIGNED CUSIP NUMBERS. THE SERIES 2012D BONDS ARE BEING ISSUED IN THE BOOK ENTRY SYSTEM AND WILL BE ASSIGNED CUSIP NUMBER 45663N BC5.</Explanation>
      </Form990ScheduleKPartVI>
      <Form990ScheduleKPartVI>
        <Identifier>EXPENDITURES OF EXEMPT BOND PROCEEDS</Identifier>
        <ReturnReference>0</ReturnReference>
      </Form990ScheduleKPartVI>
    </IRS990ScheduleK>
    <IRS990ScheduleL documentId="IRS990ScheduleL">
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>JOHN WHITESPUNNER</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>DIRECTOR</Relationship>
        <AmountOfTransaction>100000</AmountOfTransaction>
        <DescriptionOfTransaction>building construction</DescriptionOfTransaction>
        <SharingOfRevenues>false</SharingOfRevenues>
      </Form990ScheduleLPartIV>
    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>Describe the Process used by Management &amp;/or Governing Body to Review 990</Identifier>
        <ReturnReference>Form 990, Part VI, Question 11B</ReturnReference>
        <Explanation>ERNST &amp; YOUNG PREPARED FORM 990 FROM INFORMATION PROVIDED BY IHS. THE FORM 990 IS THEN REVIEWED BY THE IHS ACCOUNTING DEPARTMENT BEFORE A FINAL DRAFT COPY IS PROVIDED TO THE PRESIDENT/CHIEF EXECUTIVE OFFICER AND INHOUSE COUNSEL FOR REVIEW. THE FORM 990 WILL NOT BE PRESENTED TO THE BOARD OF DIRECTORS FOR REVIEW BEFORE FILING WITH INTERNAL REVENUE SERVICE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Description of Process to Monitor Transactions for Conflicts of Interest</Identifier>
        <ReturnReference>Form 990, Part VI, Question 12c</ReturnReference>
        <Explanation>OFFICERS ARE REQUIRED ANNUALLY TO REVIEW THE CONFLICT OF INTEREST POLICY WHICH DEFINES CONFLICTS OF INTEREST AND ADVISES THAT ALL SUCH CONFLICTS SHOULD BE AVOIDED IF POSSIBLE. ALL OFFICERS ARE REQUIRED TO REPORT ANY CONFLICTS OF INTEREST AS THEY BECOME AWARE. DIRECTORS ARE ASKED ANNUALLY TO SIGN A CONFLICT OF INTEREST STATEMENT WHICH INCLUDES THE CONFLICT OF INTEREST POLICY. THE DIRECTOR IS ASKED TO DISCLOSE AT THE EARLIEST POSSIBLE MEETING OF THE BOARD OF DIRECTORS AFTER THE DIRECTOR BECOMES AWARE OF THE EXISTING OR POTENTIAL CONFLICTING INTEREST. THE CHAIRMAN OF THE BOARD MAKES THE DECISION AS TO WHETHER THERE IS A CONFLICT OF INTEREST AND WILL ALSO RESOLVE ANY CONFLICTS WITHIN THE BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Offices &amp; Positions for Which Process was Used, &amp; Year Process was Begun</Identifier>
        <ReturnReference>Form 990, Part VI, Question 15a &amp; 15b</ReturnReference>
        <Explanation>THE IHS EMPLOYEES DESIGNATED AS OFFICERS, DIRECTORS AND KEY EMPLOYEES ARE PARTICIPANTS IN THE ORGANIZATION'S PERFORMANCE MANAGEMENT PROGRAM. EACH EMPLOYEE HAS AN INDIVIDUAL PERFORMANCE PLAN AND IS REVIEWED ANNUALLY FOR MERIT INCREASES. THE ANNUAL REVIEW COVERS THE EMPLOYEE'S PERFORMANCE FOR THE FISCAL YEAR OF APRIL 1 THROUGH MARCH 31 OF THE FOLLOWING YEAR. THE AMOUNT OF INDIVIDUAL MERIT/SALARY INCREASES ARE DETERMINED BASED ON THE COMPA-RATIO (HOURLY RATE RELATIVE TO SALARY RANGE MIDPOINT), THE NUMBER OF MONTHS SINCE THEIR LAST INCREASE AND PERFORMANCE SCORE (RATING) AND THE ORGANIZATION'S ANNUAL MERIT GUIDELINES. EACH POSITION IS ASSIGNED A SALARY RANGE BASED ON THE HAY METHODOLOGY OF ACCOUNTABILITY, KNOW HOW AND PROBLEM SOLVING ABILITY. SALARY RANGE MIDPOINTS (THE MIDPOINT REPRESENTS 100% OF THE MARKET) INCREASE EACH YEAR BASED ON EXTERNAL MARKET DATA. IHS PARTICIPATES IN NUMEROUS SALARY SURVEYS. DEPENDING ON THE POSITION, THE SURVEY DATA MAY BE INDUSTRY SPECIFIC (E.G. HEALTHCARE) OR FROM OTHER INDUSTRIES. CURRENTLY, EXECUTIVE POSITION MARKET DATA COMES FROM WATSON WYATT, INTEGRATED HEALTHCARE STRATEGIES, SULLIVAN COTTER AND HAY CONSULTING. THE ANNUAL MERIT GUIDELINES ARE DETERMINED BY THE ORGANIZATION'S ABILITY TO PAY (BUDGET). THE ANNUAL MERIT GUIDELINES PROVIDE A MERIT INCREASE PERCENTAGE RANGE BASED ON THE INDIVIDUAL EMPLOYEE'S PERFORMANCE RATING AND COMPA-RATIO. FOR EXECUTIVES, THE CEO AND VP, HUMAN RESOURCES REVIEWS THE SUGGESTED MERIT INCREASE AND MAKE RECOMMENDATIONS TO THE INFIRMARY HEALTH SYSTEM COMPENSATION COMMITTEE. THE FINAL RECOMMENDATIONS PRESENTED BY THE COMPENSATION COMMITTEE ARE APPROVED BY THE IHS BOARD OF DIRECTORS. IHS HAD AN EXTERNAL REVIEW OF COMPENSATION PRACTICES PERFORMED BY HEWITT &amp; ASSOCIATES IN 2010 AND SULLIVAN COTTER IN 2012.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Avail of Gov Docs, Conflict of Interest Policy, &amp; Fin Stmts to Gen Public</Identifier>
        <ReturnReference>Form 990, Part VI, Question 19</ReturnReference>
        <Explanation>THE CORPORATE CHARTER OF INFIRMARY HEALTH SYSTEM IS A MATTER OF PUBLIC RECORD IN THE PROBATE COURT OF MOBILE COUNTY, AL. THE CORPORATE BYLAWS, THE CONFLICT OF INTEREST POLICY AND THE FINANCIAL STATEMENTS ARE NOT MADE AVAILABLE TO THE PUBLIC AT THIS TIME.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER CHANGES IN NET ASSETS</Identifier>
        <ReturnReference>FORM 990, PART XI, QUESTION 9</ReturnReference>
        <Explanation>CHANGE IN HEDGE FMV 1,540,848 PENSION PLAN CHANGE (842,246) INTERCOMPANY TRANSFERS 24,615 ROUNDING (2) ----------- TOTAL LINE 9 723,215</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>GULF HEALTH HOSPITALS INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>P O BOX 2226</AddressLine1>
          <City>MOBILE</City>
          <State>AL</State>
          <ZIPCode>36652</ZIPCode>
        </AddressUS>
        <EIN>630891904</EIN>
        <PrimaryActivities>HOSPITAL</PrimaryActivities>
        <LegalDomicileState>AL</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>IHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>GULF HEALTH PROPERTIES INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>P O BOX 2226</AddressLine1>
          <City>MOBILE</City>
          <State>AL</State>
          <ZIPCode>36652</ZIPCode>
        </AddressUS>
        <EIN>630933700</EIN>
        <PrimaryActivities>REAL ESTATE</PrimaryActivities>
        <LegalDomicileState>AL</LegalDomicileState>
        <ExemptCodeSection>501(C)(2)</ExemptCodeSection>
        <PublicCharityStatus>N/A</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>IHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>INFIRMARY FOUNDATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>P O BOX 2226</AddressLine1>
          <City>MOBILE</City>
          <State>AL</State>
          <ZIPCode>36652</ZIPCode>
        </AddressUS>
        <EIN>630870620</EIN>
        <PrimaryActivities>FOUNDATION</PrimaryActivities>
        <LegalDomicileState>AL</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>7</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>IHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>INFIRMARY HEALTH HOSPITALS INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>P O BOX 2226</AddressLine1>
          <City>MOBILE</City>
          <State>AL</State>
          <ZIPCode>36652</ZIPCode>
        </AddressUS>
        <EIN>203713023</EIN>
        <PrimaryActivities>HOSPITALS</PrimaryActivities>
        <LegalDomicileState>AL</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>IHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>MOBILE INFIRMARY ASSOCIATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>P O BOX 2226</AddressLine1>
          <City>MOBILE</City>
          <State>AL</State>
          <ZIPCode>36652</ZIPCode>
        </AddressUS>
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      </AffiliatedSchedule>
    </AffiliatedGroupSchedule>
  </ReturnData>
</Return>