2014-08-15T11:43:52-05:00 2013-09-30 ERNST & YOUNG US LLP TWO NORTH CENTRAL AVENUE STE 2300 PHOENIX AZ 85004 990 2012-10-01 942735850 SCOTTSDALE HEALTHCARE CORPORATION % TODD LAPORTE SCOT 4808824000 8125 N HAYDEN ROAD Suite SCOTTSDALE AZ 85258 TODD LAPORTE 2014-08-13 6023223000 2012 2016-03-07 17:11:31Z X THOMAS J SADVARY 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 116005717 false X WWW.SHC.ORG X 1964 AZ SEE SCHEDULE O 18 14 7631 12 11558 0 487094 135131 62721295 86125736 45601184 29744850 0 0 108809573 116005717 0 3550023 0 0 32834362 47459245 0 0 0 35061561 41251915 67895923 92261183 40913650 23744534 633736658 694730996 522446081 545388017 111290577 149342979 X SEE SCHEDULE O false false 59235575 3550023 86125736 SCOTTSDALE HEALTHCARE CORPORATION PROVIDES OVERALL PLANNING AND DIRECTION TO ALL AFFILIATED EXEMPT ORGANIZATIONS, COORDINATES GROWTH AND DEVELOPMENT, SECURES FINANCING, AND IDENTIFIES NEW OR EXPANDED HEALTH SERVICE NEEDS FOR THE COMMUNITY. IT CONDUCTS THE OPERATION AND LONG RANGE HEALTH CARE PLANNING AND FUNDRAISING FOR FURTHERING, PROMOTING, AND SUPPORTING COMMUNITY HEALTH THROUGH (SECTION 501(C)(3)) ORGANIZATIONS. 59235575 true true false true false false false false false false true false false true true false false true false false true false false false false false false true false true true false false true false false false false false false false false false false false false true true true true false true 836 0 true 7631 true false false false false false false false false false false false X 18 14 false false false false false false false true true false false true true true true true true true true true true AZ X TODD LAPORTE 4808826186 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 X RAYMOND BARTON 1.0 2.0 X 0 0 0 DREW BROWN 1.0 2.0 X 0 0 0 RICHARD FOX 1.0 2.0 X 0 0 0 KARRIE FRANCOIS 1.0 2.0 X 18550 0 0 BRAD GAZAWAY 1.0 2.0 X X 0 0 0 DANIEL GEE 1.0 2.0 X 18000 0 0 RUFUS GLASPER 1.0 2.0 X X 0 0 0 JOHN B GROTTING 1.0 2.0 X X 0 0 0 ANDREW KASSIR 1.0 2.0 X 28200 0 0 JOHN D MUSIL 1.0 2.0 X 0 0 0 KATHLEEN PLAYER 1.0 2.0 X 0 0 0 MARILYN QUAYLE 1.0 2.0 X 0 0 0 THOMAS J SADVARY 37.0 3.0 X X 1267459 0 320586 ELENA SIBLEY 1.0 2.0 X 0 0 0 PAUL W SIECKMANN 1.0 2.0 X 49733 0 0 RICHARD SILVERMAN 1.0 2.0 X 0 0 0 MIKE WELBORN 1.0 2.0 X X 0 0 0 STEVEN M WHEELER 1.0 2.0 X X 0 0 0 F KEITH WITHYCOMBE 1.0 3.0 X 0 891 0 GARY E BAKER 14.0 26.0 X 386468 0 181971 DAVID A BARBER 40.0 0.0 X 297511 0 140939 JAMES F BURKE 16.0 24.0 X 395196 0 237440 JAMES R CRAMER 40.0 0.0 X 1639037 0 142123 ALAN B KELLY 0.0 40.0 X 459066 0 137090 TODD A LAPORTE 32.0 8.0 X 496754 0 263442 CAROL HENDERSON MCCUNE 37.0 3.0 X 482728 0 146487 VIKKI L NOYES 8.0 32.0 X 247351 0 103337 KIMBERLY A POST 8.0 32.0 X 294676 0 134710 PEGGY J REILEY 16.0 24.0 X 422339 0 73263 RICHARD C SILVER 20.0 20.0 X 339442 0 35992 MARK A SLATER 0.0 40.0 X 273009 0 143549 BRIAN D STEINES 40.0 0.0 X 276544 0 102770 DEAN C THOMAS 0.0 40.0 X 273613 0 126219 LOIS E UNIAT 20.0 20.0 X 250237 0 12289 KATHI L ZARUBI 0.0 40.0 X 231783 0 19131 CHERALYN T BEAUDRY 40.0 0.0 X 217129 0 27229 MICHAEL H HILDEBRANDT 40.0 0.0 X 217271 0 8577 JAMES G STELZER 40.0 0.0 X 219343 0 14210 SUSAN LIVENGOOD 40.0 0.0 X 250124 0 27991 ROBERT A MARLOW 40.0 0.0 X 242559 0 12622 MARVIN MOE BELL 40.0 0.0 X 233778 0 17415 KRISTIE A DEYERLE 0.0 40.0 X 233643 0 10065 CYNTHIA L KEGOWICZ 40.0 0.0 X 232340 0 26296 BELLE A BUTLER 40.0 0.0 X 191794 0 9849 WENDY H LYONS 0.0 0.0 X 265076 0 60459 JEAN KNOEDLER 0.0 0.0 X 107150 0 6683 MICHAEL R FOLEY 0.0 0.0 X 368547 0 30903 10926450 891 2573637 419 true true false RSI ENTERPRISES INC PO BOX 16190 PHOENIX AZ 85011 COLLECTIONS 1961819 GAMMAGE BURNHAM TWO CENTRAL AVE 18TH FL PHOENIX AZ 85004 LEGAL 1138226 KIM FLAGG DBA THREE FLAGGS MEDIA 701 E FAIRWAY DR LITCHFIELD PARK AZ 85340 MARKETING MEDIA 1122393 BIG FISH CREATIVE GROUP LLC 7000 E 1ST AVE SCOTTSDALE AZ 85251 MARKETING MEDIA 574420 BERRY AND DAMORE LLC 6750 E CAMELBACK RD STE 100 SCOTTSDALE AZ 85251 LEGAL 556858 49 135131 135131 CONTRACT MANAGEMENT FEE/UNDERWRITING 900099 83542130 83542130 MISCELLANEOUS HEALTHCARE REVENUE 900099 2583606 2583606 86125736 27905773 11558 27894215 489378 489378 0 0 0 0 1349699 1349699 1349699 1349699 0 0 0 0 116005717 86125736 11558 29733292 X 3550023 3550023 0 0 0 10199434 10199434 0 29417081 21768640 7648441 690609 379835 310774 5293663 2911515 2382148 1858458 1022152 836306 0 1836204 1358791 477413 713298 527841 185457 0 0 0 14647562 10839196 3808366 1463224 1082786 380438 1535236 1136075 399161 767565 567998 199567 0 3265742 2416649 849093 340997 252338 88659 0 159308 117888 41420 1943468 1438166 505302 0 3297862 2440418 857444 774283 572969 201314 MEDICAL SUPPLIES 7915380 5857381 2057999 ADMINISTRATIVE EXPENSES 1482718 1097211 385507 COMMUNITY NEEDS SUBSIDY 1461936 1081833 380103 INTERCOMPANY EXPENSES -1976114 -2385331 409217 1623246 1201201 422045 92261183 59235575 33025608 0 X 10078326 8259432 314648622 337006920 0 0 0 0 0 0 0 0 588214 3475277 0 0 432614 1232531 43137472 6439527 2832877 36697945 0 0 0 0 15232265 5670178 0 7502993 289923740 294885720 633736658 694730996 46160186 31807101 0 0 0 16188338 372894139 406555593 0 0 0 0 422628 0 0 0 102969128 90836985 522446081 545388017 X 111290577 149342979 0 0 0 0 111290577 149342979 633736658 694730996 X 23744534 1777219 12530649 X false true X true false X X X X false false false SCOTTSDALE HEALTHCARE HOSPITALS 860181654 03 true 59235575 1 59235575 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false false false false false LOBBYING ACTIVITIES SCHEDULE C, PART II-B THE GOVERNMENT RELATIONS STAFF OF SCOTTSDALE HEALTHCARE ARE THE PRIMARY LOBBYISTS FOR SCOTTSDALE HEALTHCARE AND ARE CHARGED WITH ADVANCING THE SYSTEM ADVOCACY PRIORITIES AT THE FEDERAL, STATE AND LOCAL LEVELS USING A DISTRIBUTIVE MODEL THAT INCLUDES EXECUTIVE STAFF, MEDICAL STAFF, BOARD OF DIRECTORS AND VOLUNTEER AUXILIARY. BECAUSE THE HEALTHCARE INDUSTRY IS SO HEAVILY REGULATED AND EVOLVING DAILY, WE HAVE A TEAM OF DEDICATED PROFESSIONALS WHO MEET REGULARLY WITH REPRESENTATIVES FROM THE FEDERAL AGENCIES, THE UNITED STATES CONGRESS, THE ARIZONA STATE LEGISLATURE, THE GOVERNOR'S OFFICE, THE ARIZONA DEPARTMENT OF HEALTH SERVICES, AND THE CITY OF SCOTTSDALE. 17524507 2295447 15229060 716013 715814 199 20506055 3049009 17457046 4390897 379257 4011640 36697945 CASH RESERVED FOR FUNDED DEPR 144962779 DUE FROM AFFILIATES 60710162 TRUSTEE FUNDS 25568520 BOND ISSUE COSTS 17042631 INSURANCE RECOVERIES 16913535 CASH VALUE LIFE INSURANCE 11816171 RABBI TRUST RETIREMENT PLAN 11266043 OTHER RECEIVABLES 6525631 OTHER MISCELLANEOUS 80248 294885720 0 INSURANCE RESERVE 35805967 HEDGE RATE SWAP & MARK TO MARKET 24859683 SERP-EXEC RETIREMENT PLAN 16357081 EXEC DEFERRED COMPENSATION 10645773 PHYSICIAN GUARANTEE 985665 ACCRUED INTEREST 145475 MISC LIABILITIES 2037341 90836985 UNCERTAIN TAX POSITIONS SCHEDULE D, PART X, LINE 2 NO UNCERTAIN TAX POSITIONS HAVE BEEN IDENTIFIED AS OF SEPTEMBER 30, 2013. Central America and the Caribbean Investments 54957926 Central America and the Caribbean Program Services CAPTIVE INSURANCE 12150706 67108632 67108632 true false true false false false true SCOTTSDALE HEALTHCARE FOUNDATION 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 742355411 501(C)(3) 3550023 PROGRAM SUPPORT 1 DESCRIPTION OF ORGANIZATION'S PROCEDURES FOR MONITORING THE USE OF GRANTS SCHEDULE I, PART I, LINE 2 SCOTTSDALE HEALTHCARE HAS AN OVERLAP IN LEADERSHIP WHICH MONITORS THE USE OF GRANTS BETWEEN RELATED ORGANIZATIONS. X X true true X X X X true true false false false false false false false THOMAS J SADVARY 675271 0 220488 0 371700 0 311221 0 9365 0 1588045 0 355410 0 GARY E BAKER 312315 0 67016 0 7137 0 173368 0 8603 0 568439 0 0 0 DAVID A BARBER 253017 0 40980 0 3514 0 130509 0 10430 0 438450 0 0 0 JAMES F BURKE 299586 0 83632 0 11978 0 224826 0 12614 0 632636 0 0 0 JAMES R CRAMER 280762 0 42273 0 1316002 0 135675 0 6448 0 1781160 0 1307911 0 ALAN B KELLY 281815 0 62386 0 114865 0 130587 0 6503 0 596156 0 107754 0 TODD A LAPORTE 407290 0 80603 0 8861 0 252677 0 10765 0 760196 0 0 0 WENDY H LYONS 156618 0 37637 0 70821 0 52825 0 7634 0 325535 0 49922 0 CAROL HENDERSON MCCUNE 254347 0 58212 0 170169 0 132862 0 13625 0 629215 0 162753 0 VIKKI L NOYES 208362 0 34999 0 3990 0 98095 0 5242 0 350688 0 0 0 KIMBERLY A POST 244774 0 38523 0 11379 0 129302 0 5408 0 429386 0 0 0 PEGGY J REILEY 322238 0 73732 0 26369 0 67595 0 5668 0 495602 0 0 0 RICHARD C SILVER 294707 0 37463 0 7272 0 27000 0 8992 0 375434 0 0 0 MARK A SLATER 229258 0 40235 0 3516 0 129884 0 13665 0 416558 0 0 0 BRIAN D STEINES 234259 0 37244 0 5041 0 98402 0 4368 0 379314 0 0 0 DEAN C THOMAS 223119 0 39514 0 10980 0 118927 0 7292 0 399832 0 0 0 LOIS E UNIAT 221184 0 23503 0 5550 0 9013 0 3276 0 262526 0 0 0 KATHI L ZARUBI 203229 0 21262 0 7292 0 12763 0 6368 0 250914 0 0 0 CHERALYN T BEAUDRY 188084 0 20381 0 8664 0 24627 0 2602 0 244358 0 0 0 MICHAEL H HILDEBRANDT 178453 0 19699 0 19119 0 7291 0 1286 0 225848 0 0 0 ROBERT A MARLOW 213463 0 23436 0 5660 0 8176 0 4446 0 255181 0 0 0 MARVIN MOE BELL 203508 0 24907 0 5363 0 8497 0 8918 0 251193 0 0 0 KRISTIE A DEYERLE 204688 0 22092 0 6863 0 8260 0 1805 0 243708 0 0 0 CYNTHIA L KEGOWICZ 203856 0 24227 0 4257 0 8527 0 17769 0 258636 0 0 0 BELLE A BUTLER 159413 0 31292 0 1089 0 6510 0 3339 0 201643 0 0 0 JAMES G STELZER 204946 0 13523 0 874 0 8429 0 5781 0 233553 0 0 0 JEAN KNOEDLER 0 0 0 0 107150 0 5094 0 1589 0 113833 0 0 0 SUSAN LIVENGOOD 170421 0 24449 0 55254 0 22921 0 5070 0 278115 0 0 0 MICHAEL R FOLEY 304606 0 59688 0 4253 0 24498 0 6405 0 399450 0 0 0 SUPPLEMENTAL COMPENSATION INFORMATION SCHEDULE J, PART I, LINE 1 HOUSING ALLOWANCE - THE HOUSING ALLOWANCE IS A TEMPORARY ALLOWANCE WHICH IS TAXABLE AND PAID THROUGH PAYROLL ON THE FIRST PAYCHECK OF EACH MONTH DURING THE PERIOD OF THE TEMPORARY HOUSING. THIS IS PART OF THE RELOCATION PACKAGE FOR MANAGERS AND ABOVE AS WELL AS PHYSICIANS. THE AMOUNT PAID PER MONTH AND THE LENGTH IS DETERMINED BY THE LEVEL OF THE POSITION. TAX GROSS-UP PAYMENTS - THESE ARE PAYMENTS FOR: 1.) EMPLOYEES RECEIVING A TAXABLE AWARD, GIFT, OR GIFT CERTIFICATE; 2.) PAYMENTS MADE ON BEHALF OF STAFF TO VENDORS DUE TO A CRISIS; 3.) GROUP TERM LIFE EXCESS BENEFIT OF $50,000. IT IS AVAILABLE TO ANY RANK OF EMPLOYEE; OR 4.) A DOMESTIC PARTNER. IT IS AVAILABLE AT OPEN ENROLLMENT FOR INDIVIDUALS WHO WANT TO COVER THEIR NON-MARRIED PARTNER WITH MEDICAL AND/OR DENTAL COVERAGE. SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS DURING THE YEAR: JEAN KNOEDLER $107,150. SUSAN LIVENGOOD $41,980. SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, LINE 4B SCOTTSDALE HEALTHCARE OFFERS CERTAIN EXECUTIVES A NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). IT IS INTENDED THAT THIS PLAN BE AN INELIGIBLE DEFERRED COMPENSATION PLAN UNDER THE PROVISIONS OF CODE SECTION 457(F) AND BE OPERATED IN COMPLIANCE WITH CODE SECTION 409A. THE DESIGN OF THE SERP IS SUCH THAT IT PROVIDES A MECHANISM FOR RESTORATION OF DEFERRED RETIREMENT THAT OTHERWISE WOULD BE LOST TO THE EXECUTIVES DUE TO MANDATORY CAP ON DEFERRALS WITHIN THE QUALIFIED RETIREMENT PLAN OFFERED TO OTHER EMPLOYEES OF SCOTTSDALE HEALTHCARE. THE SERP IS ALSO DESIGNED TO DISCOURAGE EXECUTIVE TURNOVER, WHICH COULD HAMPER ORGANIZATIONAL STABILITY AND SUSTAINABILITY, THROUGH THE AGE AND SERVICE REQUIREMENTS THAT AN EXECUTIVE MUST MEET IN ORDER TO RECEIVE BENEFITS FROM THIS PLAN. THE ANNUAL VALUE OF EACH EXECUTIVE'S PARTICIPATION IN THE PLAN IS TAKEN INTO CONSIDERATION AS PART OF THE CALCULATION OF TOTAL COMPENSATION WHEN TESTED AGAINST THE MARKET FOR REASONABLENESS. DEFERRED COMPENSATION, REPORTED IN SCHEDULE J, PART II, COLUMN (C), INCLUDES THE INCREASE IN VALUE OF THE SERP ACCOUNT FOR THE FOLLOWING INDIVIDUALS: GARY E BAKER DAVID A BARBER JAMES F BURKE JAMES R CRAMER JEAN KNOEDLER TODD A LAPORTE WENDY H LYONS CAROL H MCCUNE VIKKI L NOYES KIMBERLY A POST PEGGY J REILEY THOMAS J SADVARY MARK A SLATER BRIAN D STEINES DEAN C THOMAS ALAN B KELLY THE FOLLOWING INDIVIDUALS EXPERIENCED A TAXABLE VESTING EVENT DURING THE YEAR AS FOLLOWS. THESE AMOUNTS WERE INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III) AS TAXABLE WAGES AND COLUMN (F) AS AMOUNTS PREVIOUSLY REPORTED ON THE 990 AS DEFERRED. NOTE THAT THESE AMOUNTS WERE ACCUMULATED OVER MANY YEARS OF SERVICE TO THE ORGANIZATION. THOMAS J SADVARY - $355,410 JAMES R CRAMER - $1,307,911 ALAN B KELLY - $107,754 WENDY H LYONS - $49,922 CAROL HENDERSON MCCUNE - $162,753 A THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472EX4 2006-05-25 175800000 SEE PART VI false true false B THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472FW5 2008-06-04 151350684 REFUND OF 5/25/06 & 8/1/07 BONDS false true false C THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 810472GBO 2010-08-26 109852372 SEE PART VI false true false D THE IDA OF THE CITY OF SCOTTSDALE AZ 860494636 2010-09-30 34310000 REFUND OF 6/9/06 BONDS false true false A 0 0 81070281 11777422 0 0 1365670 12683620 0 78497454 0 0 2010 true false true true B 0 0 151350684 13271860 0 0 1911360 0 0 0 0 0 true false false true C 0 0 109852372 0 0 0 0 0 0 0 0 0 true false false true D 0 0 34310000 0 0 0 210000 0 0 0 0 0 true false false true A false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true B false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true C false false false false 0 false false false true D false false false false 0.00000 0.00000 0.00000 false false 0.00000 false true A false false true false 0 true MRGN STNLYCITIMBIA 8. true false true B false false false false 0 false 0 false true C false false false false 0 true MRGN STNLYCTIMBIA 8. true false true D false false true false 0 false 0 false true A true B true C true D true . 0 DESCRIPTION OF PURPOSE SCHEDULE K, PART I, COLUMN (F) BOND A - FINANCE NEW MONEY PROJECTS AND REFUND 7/8/93, 6/11/03 AND 6/25/03 BONDS. BOND C - CONVERSION OF SERIES 2006C-E THROUGH CURRENT REFUNDING OF 5/25/06 BONDS. SCHEDULE K, PART IV, LINE 2C BOND A - THE REBATE COMPUTATION WAS PERFORMED IN SEPTEMBER 2013 BOND B - THE REBATE COMPUTATION WAS PERFORMED IN JUNE 2013. DESCRIPTION OF THE ORGANIZATION'S MISSION FORM 990, PART I, LINE 1 AND PART III, LINE 1 OUR MISSION IS TO IMPROVE THE HEALTH AND WELL-BEING OF THOSE WE SERVE. OUR VISION IS TO BE THE PARTNER OF CHOICE AS WE TRANSFORM HEALTHCARE FOR OUR COMMUNITIES. WE WILL ATTAIN OUR VISION THROUGH THE FOLLOWING: - PROVIDING THE HIGHEST QUALITY OUTCOMES, EFFICIENT CARE AND BEST EXPERIENCE FOR OUR PATIENTS. - PROMOTING ACCESSIBLE AND CONVENIENT CARE THROUGH OUR CLINICALLY INTEGRATED DELIVERY NETWORK. - PURSUING STRATEGIC PARTNERSHIPS TO ACCELERATE LEARNING, INNOVATION AND OUR NETWORK DEVELOPMENT. PROCESS USED BY MANAGEMENT AND/OR GOVERNING BODY TO REVIEW FORM 990 FORM 990, PART VI, LINE 11B THE TAX RETURN INFORMATION IS GATHERED BY THE FINANCE TEAM FROM VARIOUS SOURCES WITHIN THE ORGANIZATION INCLUDING HUMAN RESOURCES, PAYROLL, DEVELOPMENT AND THE LEGAL DEPARTMENT. THE INFORMATION IS REVIEWED BY THE CONTROLLER AND PROVIDED TO AN ACCOUNTING FIRM THAT PREPARES THE TAX RETURNS. AN INITIAL DRAFT OF THE FORM 990 IS SUBMITTED TO THE CONTROLLER AND CHIEF FINANCIAL OFFICER FOR REVIEW. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A REVISED DRAFT THAT IS PRESENTED TO THE BOARD OF DIRECTORS PRIOR TO FILING. THE BOARD OF DIRECTORS REVIEWS THE REVISED DRAFT AND SUBMITS COMMENTS TO THE CONTROLLER. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A FINAL DRAFT PREPARED FOR FILING. THE FINAL DRAFT IS THEN MADE AVAILABLE FOR BOARD MEMBERS PRIOR TO FILING WITH THE IRS. PROCESS USED TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST FORM 990, PART VI, LINE 12C EACH BOARD MEMBER, OFFICER OF THE CORPORATION AND BOARD COMMITTEE MEMBER COMPLETES A CONFLICT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. THE COMPLIANCE OFFICE, ALONG WITH GENERAL COUNSEL, EXAMINES EACH DISCLOSURE STATEMENT WHERE POTENTIAL CONFLICTS HAVE BEEN DISCLOSED. RECOMMENDATIONS ARE MADE TO THE CHAIR OF THE BOARD ON HOW TO APPROPRIATELY REMEDIATE, MONITOR, OR ELIMINATE ANY CONFLICTS. THE COMPLIANCE OFFICE/GENERAL COUNSEL THEN PROVIDES TO THE INTERESTED PERSON, WITH COPIES TO THE CHAIR OF THE BOARD, THE CEO, AND, IF NEEDED, THE APPROPRIATE COMMITTEE CHAIR, A CORRESPONDENCE THAT SPECIFIES WHAT ACTIONS, CONDITION, OR MONITORING OF THE CONFLICT ARE REQUIRED AND WHETHER THE INTERESTED PERSON IS PERMITTED TO GIVE A PRESENTATION TO THE BOARD OR APPROPRIATE COMMITTEE AFTER FULL DISCLOSURE OF THE CONFLICT. IN SUCH AN EVENT, THE INTERESTED PERSON LEAVES THE MEETING WHILE THE PROPOSED TRANSACTION IS DISCUSSED. THE INTERESTED PERSON IS REQUIRED TO CO-SIGN CORRESPONDENCE SENT BY THE GENERAL COUNSEL AND ADHERE TO IT THROUGHOUT THE YEAR. IF A CONFLICT OR FINANCIAL INTEREST ARISES AFTER THE ANNUAL DISCLOSURE PROCESS THE INTERESTED PERSON WILL CONSULT WITH THE COMPLIANCE OFFICE OR GENERAL COUNSEL AND UPDATE THE DISCLOSURE STATEMENT CONSISTENT WITH THE ADVICE OF THE GENERAL COUNSEL. A RECORD OF THE BOARD OR COMMITTEE MEETING WHERE PROPOSED TRANSACTIONS OR ARRANGEMENTS THAT ARE AFFECTED BY CONFLICT OF INTEREST AND THE MANAGEMENT OF SUCH ARE CONTAINED IN THE BOARD/COMMITTEE MINUTES. IF VIOLATIONS OF THE CONFLICT OF INTEREST POLICY/MANAGEMENT ARE REPORTED, THE GENERAL COUNSEL WILL LOOK INTO THE MATTER. CONFIRMED VIOLATIONS MAY INCLUDE REMOVAL FROM THE BOARD OR COMMITTEE OR OFFICER POSITION PURSUANT TO THE REMOVAL PROCEDURES STATED IN THE BYLAWS. BYLAWS INCLUDE THE PROVISIONS THAT INTERESTED PERSONS WHO RECEIVE COMPENSATION DIRECTLY OR INDIRECTLY FROM THE HOSPITAL SYSTEM MAY NOT VOTE IN SUCH MATTERS. A VOTING MEMBER OF ANY COMMITTEE WHOSE JURISDICTION INCLUDES MAKING CHOICES ON GOODS OR SERVICES FOR THE HOSPITAL SYSTEM OR WHAT AMOUNTS SHOULD BE PAID FOR GOODS OR SERVICES SHALL BE PROHIBITED FROM VOTING ON ANY SUCH MATTER AND MAY BE PROHIBITED FROM DISCUSSING THE MATTER. PERIODIC REVIEWS OF THE PROCESS ARE CONDUCTED. OUTSIDE EXPERTS MAY, BUT NEED NOT BE, USED TO EVALUATE POLICIES AND PROCESSES. PROCESS USED TO DETERMINE COMPENSATION FORM 990, PART VI, LINES 15A AND 15B AN EXECUTIVE COMPENSATION CONSULTANT CONDUCTS DETAILED MARKET ANALYSIS FOR EXECUTIVE CASH COMPENSATION. THEY UTILIZE AVAILABLE PUBLISHED HEALTHCARE SURVEY SOURCES. EXECUTIVE POSITIONS ARE MATCHED TO APPROPRIATE SURVEY POSITIONS BASED ON JOB CONTENT, DUTIES AND SCOPE OF RESPONSIBILITY. SURVEY DATA IS MATCHED FROM ORGANIZATIONS OF SIMILAR SIZE AND SCOPE. RESULTS OF THE STUDY ARE SHARED WITH THE BOARD FOR APPROVAL. THE STUDY WAS LAST COMPLETED IN OCTOBER 2013. AVAILABILITY OF CERTAIN DOCUMENTS TO THE GENERAL PUBLIC FORM 990, PART VI, LINE 19 DOCUMENTS ARE AVAILABLE FOR PUBLIC INSPECTION UPON REQUEST TO THE CORPORATE CONTROLLER AT: 8125 N. HAYDEN ROAD, SCOTTSDALE, AZ 85258 INDIVIDUALS PREVIOUSLY REPORTED AS KEY EMPLOYEES FORM 990, PART VII, SECTION A CERTAIN INDIVIDUALS WERE REPORTED AS KEY EMPLOYEES IN PRIOR YEARS WHO DID NOT MEET THE RESPONSIBILITY TEST REQUIRED TO BE CONSIDERED A KEY EMPLOYEE. AS SUCH, THESE INDIVIDUALS ARE NO LONGER BEING REPORTED AS KEY EMPLOYEES. ADDITIONALLY, THESE INDIVIDUALS ARE NOT BEING REPORTED AS FORMER KEY EMPLOYEES BECAUSE THEY HAVE NEVER MET THE DEFINITION OF A "KEY EMPLOYEE" AS PER THE FORM 990 INSTRUCTIONS. NOTES AND LOANS RECEIVABLE FORM 990, PART X, LINE 7 ALL OF THE NOTES AND LOANS RECEIVABLE REPORTED ON LINE 7 REPRESENT PHYSICIAN GUARANTEE AGREEMENTS THAT MUST BE PAID BACK IF THE PHYSICIANS DO NOT FULFILL THEIR CONTRACTS. PHYSICIANS ARE SENT A 1099 FOR THE FULL AMOUNT WHEN THEY ARE PAID. OTHER CHANGES IN NET ASSETS FORM 990, PART XI, LINE 9 CHANGE CAUSED BY ADOPTION OF FAS 158 $8,119,980 JOINT VENTURE MINORITY INTEREST 4,410,669 ----------- TOTAL OTHER CHANGES IN NET ASSETS $12,530,649 =========== OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:COLLECTION FEES TOTAL FEES:3932290 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:CONSULTING FEES TOTAL FEES:3354628 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:AFFILIATION FEES TOTAL FEES:2472710 OTHER FEES FOR SERVICES FOR NON-EMPLOYEES FORM 990 PART IX LINE 11G DESCRIPTION:OTHER FEES FOR SERVICES TOTAL FEES:4887934 SCOTTSDALE HEALTHCARE HOSPITALS 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 860181654 HEALTHCARE AZ 501(C)(3) 3 SHC true SCOTTSDALE HEALTHCARE REALTY CORPORATION 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 942735851 RENTAL AZ 501(C)(2) N/A SHC true SCOTTSDALE HEALTHCARE FOUNDATION 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 742355411 FOUNDATION AZ 501(C)(3) 7 SHC true SCOTTSDALE MEMORIAL HEALTH SERVICES CO 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 942735859 HEALTHCARE AZ 501(C)(3) 3 SHC true SCOTTSDALE CAPTIVE INSURANCE COMPANY 8125 N HAYDEN ROAD SCOTTSDALE AZ 85258 203455823 CAPTIVE INS. 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