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      <FeesForServicesLobbying>
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        <Explanation>ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE SYSTEM AND RECOGNIZE A TAX LIABILITY IF THE SYSTEM HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY VARIOUS FEDERAL AND STATE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE SYSTEM AND HAS CONCLUDED THAT AS OF SEPTEMBER 30, 2013 AND 2012, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. THE SYSTEM IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS.</Explanation>
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      <Form990ScheduleJPartII>
        <NamePerson>GARY KEEPES MD</NamePerson>
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        <NamePerson>DAVID KOEHLER MD</NamePerson>
        <Title>DIRECTOR</Title>
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        <NamePerson>ANNE MCLAUGHLIN MD</NamePerson>
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        <NamePerson>BARRY PHILLIPS MD</NamePerson>
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        <NamePerson>BRUCE SCHNEIDER MD</NamePerson>
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        <NamePerson>YOUSSEF SIAGE MD</NamePerson>
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        <NamePerson>RUSTON STOLTZ MD</NamePerson>
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        <NamePerson>FREDERICK WALLISCH</NamePerson>
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        <NamePerson>LINDA WHITE</NamePerson>
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        <NamePerson>W ALLEN WHITE MD</NamePerson>
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        <NamePerson>JULIE DINGMAN</NamePerson>
        <Title>OPERATIONS ADMINISTRATOR</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>MAQBOOL AHMED MD</NamePerson>
        <Title>MD</Title>
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        <NamePerson>PAUL SIAMI MD</NamePerson>
        <Title>MD</Title>
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        <NamePerson>JEFFREY MOORE MD</NamePerson>
        <Title>MD</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>MAJED KOLEILAT MD</NamePerson>
        <Title>MD</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>ANVITA SINHA MD</NamePerson>
        <Title>MD</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>GARY ERDY MD</NamePerson>
        <Title>FORMER DIRECTOR</Title>
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        <BonusFilingOrg>9041</BonusFilingOrg>
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      <Form990ScheduleJPartII>
        <NamePerson>JAMES GUTMANN MD</NamePerson>
        <Title>FORMER DIRECTOR</Title>
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      <Form990ScheduleJPartII>
        <NamePerson>ROBERT KAYLOR</NamePerson>
        <Title>FORMER DIRECTOR</Title>
        <BaseCompensationFilingOrg>243059</BaseCompensationFilingOrg>
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      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 1A</ReturnReference>
        <Explanation>SOCIAL CLUB DUES ARE PAID FOR LINDA WHITE FOR ORGANIZATION BUSINESS ONLY. ANY PERSONAL USE OF THE CLUB MUST BE PAID BY THE EMPLOYEE.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 4B</ReturnReference>
        <Explanation>SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS: SEVERANCE NONQUALIFIED EQUITY-BASED CHERYL WATHEN $ -0- $17,000 -0- DAVID CHRISTESON, MD 0 17,000 0 GARY KEEPES, MD 0 17,000 0 DAVID KOEHLER, MD 0 17,000 0 ANNE MCLAUGHLIN, MD 0 17,000 0 YOUSSEF SIAGE, MD 0 17,000 0 RUSTON STOLTZ, MD 0 17,000 0 LINDA WHITE 0 17,000 0 W. ALLEN WHITE, MD 0 17,000 0 MAQBOOL AHMED, MD 0 17,000 0 PAUL SIAMI, MD 0 17,000 0 JEFFREY MOORE, MD 0 17,000 0 MAJED KOLEILAT, MD 0 17,000 0 SEVERANCE NONQUALIFIED EQUITY-BASED (CONT.) GARY ERDY, MD $ -0- $11,551 $ -0- PART 1, LINE 4B: CHERYL WATHEN: SUPPLEMENTAL ACCUMULATION ACCOUNT CONTRIBUTIONS OF $51,429. LINDA WHITE: SUPPLEMENTAL ACCUMULATION ACCOUNT CONTRIBUTIONS OF $206,738.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>CLASSES OF MEMBERS OR STOCKHOLDERS DEACONESS HEALTH SYSTEM, INC., A TAX EXEMPT 501(C)(3) ORGANIZATION, IS THE SOLE CORPORATE MEMBER OF DEACONESS CLINIC, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>ELECTION OF MEMBERS AND THEIR RIGHTS THE DEACONESS HEALTH SYSTEM, INC. MUST APPROVE THE CHOSEN DEACONESS CLINIC CHIEF PHYSICIAN ADMINISTRATIVE OFFICER</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>APPOINTMENT OF CHIEF PHYSICIAN ADMINISTRATIVE OFFICER (CPAO) REQUIRES APPROVAL OF THE MEMBER. CHANGES TO PHYSICIAN COMPENSATION PLAN REQUIRES THE APPROVAL OF THE MEMBER THROUGH ITS COMPENSATION COMMITTEE WHICH IS COMPRISED OF INDEPENDENT MEMBERS OF THE DEACONESS HEALTH SYSTEM BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE PROCESS THAT DEACONESS CLINIC UTILIZES TO PRESENT THE FORM 990 TO ITS GOVERNING BODY PRIOR TO FILING IS TO PRESENT THE FORM 990 TO THE CFO AND CEO OF THE ORGANIZATION FOR REVIEW. AFTER THIS REVIEW IS PERFORMED AND ALL QUESTIONS ARE ANSWERED, THE FORM 990 IS PRESENTED TO THE BOARD OF DIRECTORS AT THE BOARD MEETING PRIOR TO THE FILING DATE OF THE FORM 990. ANY ADDITIONAL QUESTIONS ARE ANSWERED AND THE FINAL FILING IS THEN COMPLETED.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>OFFICERS WHO CANNOT BE REACHED: GARY ERDY, MD 1045 APT C SEACOVE CIRCLE LONDON, OH 43140</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>CONFLICT OF INTEREST REVIEW AND COMPLIANCE ACTIVITIES ARE CONDUCTED THROUGHOUT THE YEAR UNDER THE DIRECTION OF DEACONESS HOSPITAL'S CORPORATE COMPLIANCE OFFICER. UPON APPOINTMENT, AND ANNUALLY THEREAFTER, OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES, ALSO KNOWN AS INTERESTED PERSONS, ARE REQUIRED TO COMPLETE "THE CONFLICTS OF INTEREST QUESTIONNAIRE" AND/OR THE "THE DISCLOSURE QUESTIONNAIRE". THESE DOCUMENTS SERVE TO ENSURE INTERESTED PERSONS OR COMMITTEE MEMBERS WITH BOARD DELEGATED POWERS HAVE AN APPROPRIATE AND TIMELY MANNER IN WHICH TO DISCLOSE ANY POTENTIAL CONFLICTS. CONFLICTS ARE CONSIDERED WITH RESPECT TO OUTSIDE INTEREST, INVESTMENTS, OUTSIDE ACTIVITIES, AND BUSINESS INTERESTS AMONG THE INTERESTED PERSONS AS WELL AS THEIR FAMILY MEMBERS. ON A PERIODIC BASIS, REVIEWS OCCUR TO ENSURE DEACONESS CLINIC OPERATES IN A MANNER CONSISTENT WITH ITS CHARITABLE PURPOSE. SUBJECTS THAT ARE REVIEWED ON A PERIODIC BASIS INCLUDE COMPENSATION, PHYSICIAN RELATIONSHIPS, PARTNERSHIP AND JOINT VENTURE ARRANGEMENTS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15A</ReturnReference>
        <Explanation>COMPENSATION FOR TOP OFFICIALS AND OTHER OFFICERS: SALARIES AND BENEFITS OF OFFICERS AND PHYSICIANS AT DEACONESS CLINIC ARE APPROVED BY THE DEACONESS HEALTH SYSTEM COMPENSATION COMMITTEE. DEACONESS CLINIC BOARD CAN ONLY MAKE RECOMMENDATION TO THE DEACONESS HEALTH SYSTEM COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS OF DEACONESS HEALTH SYSTEM INC. AND MUST MEET THE INDEPENDENCE REQUIREMENTS OF THE SEC. THE COMMITTEE HAS THE POWER AND AUTHORITY TO: 1. ANNUALLY REVIEW, APPROVE, AND RECOMMEND TO THE BOARD OF DIRECTORS FOR ITS FINAL APPROVAL FOR THE CPAO AND EACH OTHER EXECUTIVE OFFICERS ALL ELEMENTS OF EXECUTIVE COMPENSATION. 2. MONITOR BROADLY THE STRUCTURE, PHILOSOPHY OR COMPETITIVENESS OF THE SYSTEM'S GENERAL HIRING OR COMPENSATION PRACTICES. 3. OVERSEE THE ESTABLISHMENT AND ADMINISTRATION OF THE COMPANY'S BROAD-BASED BENEFIT PLANS AND PROGRAMS. 4. REVIEW OR APPROVE SIGNIFICANT AMENDMENTS OR CHANGES TO THE PLANS AND PROGRAMS. 5. RETAIN AND TERMINATE ANY COMPENSATION CONSULTANT TO BE USED TO ASSIST IN THE EVALUATION OF DIRECTOR, CPAO OR EXECUTIVE OFFICE COMPENSATION. 6. SOLE AUTHORITY TO APPROVE THE CONSULTANT'S FEES AND OTHER RETENTION TERMS. 7. OBTAIN ADVICE AND ASSISTANCE FROM INTERNAL OR EXTERNAL LEGAL, ACCOUNTING OR OTHER ADVISORS. 8. APPROVE ALL PHYSICIAN AND PHYSICIAN-RELATED CONTRACTS. 9. MAKE REGULAR REPORTS TO THE BOARD.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>DEACONESS CLINIC'S ARTICLES OF INCORPORATION ARE AVAILABLE ON THE SECRETARY OF STATE'S WEBSITE. AS REQUIRED BY LAW, DEACONESS CLINIC SUBMITS ITS CONSOLIDATED FINANCIAL STATEMENTS TO THE INDIANA DEPARTMENT OF HEALTH WHICH ARE PUBLISHED ON ITS WEBSITE. GOVERNING DOCUMENTS, ASIDE FROM THE ARTICLES OF INCORPORATION, AND THE CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE FOR PUBLIC INSPECTION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 9:</ReturnReference>
        <Explanation>CAPITAL CONTRIBUTED 20,613,263.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OVERSIGHT OF AUDIT</Identifier>
        <ReturnReference>FORM 990, PART XII, LINE 2C</ReturnReference>
        <Explanation>THE BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF THE INDEPENDENT ACCOUNTANT; AND NO PROCESSES HAVE CHANGED FROM PRIOR YEAR.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
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          <BusinessNameLine1>DEACONESS HEALTH SYSTEM INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 MARY STREET</AddressLine1>
          <City>EVANSVILLE</City>
          <State>IN</State>
          <ZIPCode>47747</ZIPCode>
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        <PrimaryActivities>HEALTHCARE</PrimaryActivities>
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