2014-01-14T12:33:33-06:00 2012-09-30 931298398 FORDHAM GOODFELLOW LLP 233 SE Second Ave Hillsboro OR 971234016 990 2011-10-01 930430029 TUALITY HEALTHCARE TUAL 5036811579 335 SE EIGHTH AVENUE HILLSBORO OR 97123 Tim Fleischmann 5036811579 2014-01-14 1 Lester L Fordham P00079631 5036486651 2011 2016-02-25 16:41:14Z Richard Stenson 335 SE 8th Avenue Hillsboro OR 97123 182237713 0 X www.tuality.org X 1954 OR SEE SCHEDULE O 8 8 1557 204 200234 -258927 1720526 4184621 176504665 177054402 983646 998690 0 0 179208837 182237713 257200 236493 0 0 95015612 99074791 0 0 0 82214902 80867027 177487714 180178311 1721123 2059402 142274448 146431139 75018748 79019539 67255700 67411600 X Tuality Healthcare's Mission is to provide health care to the community with respect for human dignity and without regard for the recipient's ability to pay. We believe that compassion encourages healing, that knowledge is the foundation of CONTINUED ON SCHEDULE O wellness, and that attention to quality and fiscal stability will enable us to continue to service the community. 0 0 174724065 236493 176195012 The organization's primary exempt purpose is to provide cost-effective comprehensive high quality health care to members of the community. Tuality Healthcare is a licensed 215-bed hospital and health services provider operating in Washington County, Oregon. The Company operates its hospital at two locations, Tuality Community Hospital in Hillsboro, Oregon and Tuality Forest Grove Hospital in Forest Grove, Oregon. In addition to acute care hospital services, the Company provides a wide array of outpatient diagnostic and treatment services throughout western Washington County. CONTINUED ON SCHEDULE OIn fiscal 2012, these facilities provided care for 21,950 in-patient acute care days, 42,354 emergency room visits, 20,133 urgent care visits, and 11,657 home health visits. Please view our Community Benefit report found in the About Us section of our website, www.tuality.org, for a description of programs and charity care provided by Tuality Healthcare. 174724065 1 1 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 195 0 1 1557 0 1 1 0 0 0 0 0 0 0 X 8 8 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 OR X X Tim Fleischmann - TUALITY HEALTHCAR 5036811570 335 SE EIGHTH AVE HILLSBORO OR 97123 EUGENE ZURBRUGG 4.00 X 0 0 0 FRED NACHTIGAL 4.00 X 0 0 0 CHARLES ROSENBLATT 4.00 X 0 0 0 MIKE FOGLIA 4.00 X 0 0 0 MARK ROSENBAUM 4.00 X X 0 0 0 LEN BERGSTEIN 4.00 X 0 0 0 DARELL LUMACO 5.00 X X 0 0 0 MIKE HUNDLEY 4.00 X X 0 0 0 RICHARD STENSON 40.00 X 391482 0 62499 JOHN COLETTI JR 40.00 X 389036 0 21999 MANUEL BERMAN 40.00 X 225744 0 38499 EUNICE RECH 40.00 X 170947 0 21766 TIM FLEISCHMANN 40.00 X 189392 0 38500 TODD SADOWSKI 40.00 X 482349 0 0 JEREMIAH MURPHY 40.00 X 444445 0 32999 ROBERT SCHMIDT 40.00 X 441652 0 33000 GREGORY ROSENBLATT 40.00 X 462562 0 32999 PETER HAHN 40.00 X 449974 0 0 3647583 0 282261 10 0 1 0 SOUND PHYSICIANS 31472 PO Box 60000 San Francisco CA 94160 CONTRACT HOSPITALISTS 1335802 TUALITY HEALTH ALLIANCE PO BOX 548 HILLSBORO OR 97123 BENEFITS ADMINISTRATOR 154438 2 1257900 2926721 4184621 NON MCR/MCD HOSP REV 621110 148357435 148357435 CAFETERIA 621110 709866 709866 MANAGEMENT FEES 541610 199452 199452 BILLING SERVICE FEES 518210 782 782 27786867 27786867 177054402 998579 998579 111 111 182237713 176144302 200234 1708556 236493 236493 1685126 1685126 76052340 76052340 5439975 5439975 9115621 8932731 182890 6781729 6645665 136064 588987 547646 41341 9795895 8749392 1046503 279700 279700 1317945 1074286 243659 8251248 8251248 484191 482218 1973 2321 -66116 68437 1365434 1365434 8044401 7239961 804440 1603482 1443134 160348 SUPPLIES 18610235 18606373 3862 BAD DEBT EXP - DIRECT W 13331691 13331691 PROVIDER TAX 6381441 6381441 EQUIPMENT RENTAL AND MA 6239418 6205746 33672 4570638 3524707 1045931 180178311 174724065 5454246 0 30611868 31632996 24618677 27566037 1246479 1138025 2631912 2604044 2221953 2079529 149679522 114163379 35687906 35516143 28652028 28191993 16603625 17702372 142274448 146431139 46967882 54916730 23274000 19899715 1120161 1402421 3656705 2800673 75018748 79019539 X 67128500 66000600 127200 1411000 67255700 67411600 142274448 146431139 X 2059402 -1903502 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 4008069 911906 688295 22507 1014315 4571448 4442993 948326 -27010 23876 1332364 4008069 4402566 800425 255430 31410 984018 4442993 4473568 944880 24688 22124 1018446 4402566 0 1 1 2407626 2407626 54673088 43713508 10959580 3632473 776360 2856113 88790335 69673511 19116824 176000 176000 35516143 SECURITIES AND OTHER INVESTMENTS 28191993 F 28191993 OTHER ASSETS 17448272 INTEREST IN NET ASSETS OF FOUNDATION 154100 Goodwill 100000 17702372 AFFILIATES 2800673 2800673 182237713 180178311 2059402 -1903502 -1903502 155900 185463700 2108052 1117935 3225987 182237713 0 182237713 182122509 1944200 1944200 180178309 2 2 180178311 Part XI, Line 8 - Other Adjustments: CHANGE IN INTEREST IN NET ASSETS UNDER FAS 136 1,283,800. GAAP BAD DEBT EXPENSE IN EXCESS OF DIRECT WRITE OFF METHOD -1,944,200. ROUNDING 23. EQUITY INCOME NET OF DISTRIBUTIONS OF JT VENTURES 3,175,265. CHANGE IN MINIMUM PENSION LIABILITY UNDER FAS 158 -4,469,100. NET ASSETS RELEASED FROM RESTRICTION 50,710. Total to Schedule D, Part XI, Line 8: -1,903,502. Part XII, Line 2d - Other Adjustments: EQUITY INCOME FROM JOINT VENTURES & SUBSIDIARIES 1,067,213. ROUNDING 12. NET ASSETS RELEASED FROM RESTRICTION 50,710. Part XIII, Line 2d - Other Adjustments: GAAP BAD DEBT EXPENSE IN EXCESS OF DIRECT WRITE OFF METHOD 1,944,200. Part XIII, Line 4b - Other Adjustments: ROUNDING 2. 1 1 X 1 X 1 X 1 1 1 0 1 1 4307113 4307113 0.02580 21045376 7357579 13687797 0.08200 25352489 7357579 17994910 0.10780 1907170 1907170 0.01140 250505 250505 0.00150 266524 63330 203194 0.00120 418125 418125 0.00250 2842324 63330 2778994 0.01660 28194813 7420909 20773904 0.12440 128333 128333 0.00080 128333 128333 0.00080 0 15682937 47249562 66485870 -19236308 X 1 1 2 1 Tuality Community Hospital

335 SE 8th Ave Hillsboro OR 97123

X X X 2 Tuality Forest Grove Hospital

1809 Maple Street Forest Grove OR 97116

X X X Tuality Community Hospital 1 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 Tuality Forest Grove Hospital 2 0 1 1 200.000000000000 1 400.000000000000 1 X X X X X X 1 1 X X X X X X 1 0 1 X 0 0 14 Tuality Urgent Care at Reedville

7545 SE Tualatin Valley Hwy Hillsboro OR 97123

Urgent Care Tuality Healthplace

1200 NE 48th Ave Ste 7000 Hillsboro OR 97123

OP Therapy TualityOHSU Cancer Center

299 SE 9th Ave Hillsboro OR 97123

OP Radiation Therapy Tuality Home Health

3201 19th Ave Ste F Forest Grove OR 97116

Home Health Services Orenco Station Medical Plaza

6355 NE Cornell Rd Hillsboro OR 97123

MOB Tuality 8th Avenue Medical Plaza

364 SE 8th Ave Hillsboro OR 97123

MOB Tuality 7th Avenue Medical Plaza

333 SE 7th Ave Hillsboro OR 97123

MOB Tuality Forest Grove Medical Plaza

3201 19th Ave Forest Grove OR 97116

MOB Hillsboro Internal Medicine

364 SE 8th Ave Ste 301 Hillsboro OR 97123

Physician Offices North Plains Medical Clinic

10245 NW Glencoe Rd North Plains OR 97133

Physician Offices Northwest Ortho Surgery & Sport Medicine

21255 NW Jacobson Re Ste 500 Hillsboro OR 97124

Physician Offices Tuality Obstetrics & Gynecology

364 SE 8th Ave Ste 205 Hillsboro OR 97123

Physician Offices Westside Medical Clinic

21255 NW Jacobson Re Ste 500 Hillsboro OR 97124

Physician Offices Tuality Hillsboro Hematology & Oncology

364 SE 8th Ave Ste 105 Hillsboro OR 97123

Physician Offices Part I, Line 7, Column (f): The Bad Debt expense included on Form 990, Part IX, Line 25, Column (A), but subtracted for purposes of calculating the percentage in this column is $ 13331691. Part II: The Tuality Health Education Center is a hub for many community activities and organizations in the greater Hillsboro area. The facility provides meeting space for a number of community organizations, ranging from the Hillsboro Rotary Club to Washington County Community Action. The facility also plays host to dozens of Tuality sponsored classes and healthcare presentations. These range from classes on diabetes, yoga and care seat safety to presentations by doctors and other healthcare providers on topics as diverse as COPD, stroke prevention and weight-loss surgery. Tuality also provides free or low-cost blood pressure, cholesterol and blood glucose screenings at many community events. Part III, Line 9b: In addition to referencing and accessing our internal Tuality Financial Assistance program (before, during, and after services are rendered), we also recognize other Portland providers' (hospitals, physician, ambulance, DME, etc) financial assistance determination (with written proof). Tuality Community Hospital Part V, Section B, Line 19d: Average of all negotiated commercial insurance rates. Tuality Forest Grove Hospital Part V, Section B, Line 19d: Average rate of all negotiated commerial insurance rates. Part VI, Line 2: Tuality Healthcare's leadership interacts with the citizens of western Washington County in a variety of ways. Tuality is actively involved as a sponsor in a long list of community events, from the Washington County Airshow, the premier airshow in the Pacific Northwest, to the North Plains Garlic Festival. In addition, we engage our residents through our many partnerships with a host of worthwhile organizations like Pacific University, Virginia Garcia Memorial Health Center, Essential Health Clinic, Hospice of Washington County and many others. Tuality strives to get feedback from our customers through surveys and questionnaires that tell us how well we are doing with current services, as well as what new and improved services may be needed by the community. Part VI, Line 3: Requests for financial assistance may be made at any point before, during, or after the provision of care. Information related to eligibility for financial assistance is located in the lobbies of the hospital and available on the Tuality.org website. Financial assistance requests may be proposed by sources other than the patient, such as the patient's physician, family members, community or religious groups, social services, or hospital personnel. Anyone wishing to make application for financial assistance with Tuality Healthcare will be given a Financial Assistance Application, which includes instructions on how to apply. All private pay admits are screened for Medicaid/Social Security disability coverage and a hold is placed on the account while we assist the patient and /or their family apply for government benefits. Part VI, Line 4: Tuality Healthcare serves a large geographic area of western Washington County that stretches from the suburban Portland cities of Aloha and Beaverton to the Coast Range. The market includes the cities of Hillsboro and Forest Grove, sites of Tuality's two hospitals, plus smaller towns such as Cornelius, Gaston, North Plains and Banks. This region is roughly 250,000 people and is one of the fastest growing areas in Oregon. In addition, Tuality is one of the region's largest employers with a staff of over 1,200. Tuality provides financial, material and medical assistance to many community partners in the region. Tuality Healthcare is designated a " Disproportionate Share Hospital" by the Centers for Medicare and Medicaid Services, due to the larger than normal percentage of care we provide to the low income and indigent population in our area. Part VI, Line 5: When it comes to community, everyone has a part to play. For us, it's an honor and a duty to help those near us receive the best medical care possible. That's why, since our beginnings in 1918, we've worked hard to provide quality, convenient care for people in western Washington County. Today, we're the only local, independent, community-governed healthcare system in the area, offering inpatient and outpatient treatment, specialty services, health education, and more.Of course, our goal isn't only to treat you when you're sick, but also to help you stay well. For that reason, you'll often find us at local events and other public places, offering free or low-cost health screenings and educational courses. For those who need it, we even provide transportation to and from medical appointments.Many of these services are offered at Tuality Health Education Center and other locations. We really are your neighbors! Many of our 1,400 employees live just a short distance from work.Our larger facilities include Tuality Community Hospital in Hillsboro and Tuality Forest Grove Hospital. In addition, we have numerous other medical centers and outpatient facilities. By keeping up with the latest advances in medical science, we've earned a sterling reputation for the quality of our heart, cancer, stroke, and diagnostic imaging services.In this way, we are able to offer the best possible medical care to the Tualatin Valley cities and communities in western Washington County, such as Aloha, Beaverton, Hillsboro, Forest Grove, Cornelius, and the smaller communities of the Coastal Range foothills. Part VI, Line 6: N/A Reports Filed With States Part VI, Line 7 OR 1 ALS ASSOCIATION 4400 NE HALSEY ST BLDG 2 STE 599 PORTLAND OR 97213 930813252 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT AMERICAN CANCER SOCIETY-RELAY 0330 SW CURRY ST PORTLAND OR 97239 936054242 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT AMERICAN HEART ASSOC-WESTERN 1200 NW NATO PARKWAY STE 220 PORTLAND OR 97209 135613797 501C3 1750 VARIOUS COMMUNITY AND HEALTH ENRICHMENT BIENESTAR 220 SE 12TH AVE A-100 HILLSBORO OR 97123 930860753 501C3 250 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CASCADE PACIFIC COUNCIL BOY SCOUTS OF AMERICA 2145 SW FRONT AVE PORTLAND OR 97201 930386792 501C3 250 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CENTRO CULUTURAL OF WASH COUNTY PO BOX 708 CORNELIUS OR 97113 930606729 501C3 5000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CITY OF HILLSBORO 4400 4400 NW 229TH HILLSBORO OR 97124 930978514 501C3 5000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CITY OF HILLSBORO P&R 4400 NW 229TH HILLSBORO OR 97124 930978514 501C3 5000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CLEAN COPY 946 SE BASELINE ST HILLSBORO OR 97123 930978514 501C3 138 VARIOUS COMMUNITY AND HEALTH ENRICHMENT COMMUNITY ACTION ORGANIZATION 1001 SW BASELINE HILLSBORO OR 97123 930554941 501C3 10000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT ESSENTIAL HEALTH CLINIC 3700 SW MURRAY STE 250 BEAVERTON OR 97005 383672046 501C3 23750 VARIOUS COMMUNITY AND HEALTH ENRICHMENT FOREST GROVE CHAMBER OF COMMERCE 2417 PACIFIC AVE FOREST GROVE OR 97116 930420710 501C6 800 VARIOUS COMMUNITY AND HEALTH ENRICHMENT FOREST GROVE FARMERS MARKET 2420 19TH AVE FOREST GROVE OR 97116 030473181 501C3 2500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT FOREST GROVE SNR & COMMUNITY PO BOX 784 FOREST GROVE OR 97116 910874521 501C3 350 VARIOUS COMMUNITY AND HEALTH ENRICHMENT HILLSBORO KIWANIS PO BOX 311 HILLSBORO OR 97123 931285646 501C3 250 VARIOUS COMMUNITY AND HEALTH ENRICHMENT HILLSBORO SCHOOLS FOUNDATION 5193 NE ELAM YOUNG PARKWAY-STE A HILLSBORO OR 97124 911779425 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT KUIK RADIO PO BOX 566 HILLSBORO OR 97123 1000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT LIBRARY FOUNDATIONHILLSBORO 2850 NE BROOKWOOD PKWAY HILLSBORO OR 97124 943107840 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT MULTIPLE SCLEROSIS FOUNDATION C/O DONOR RESPONSE CENTER PO BOX 21360 KEIZER OR 97307 592792934 501C3 100 VARIOUS COMMUNITY AND HEALTH ENRICHMENT NORTH PLAINS CHAMBER OF COMMERCE PO BOX 152 NORTH PLAINS OR 97133 930930716 501C6 2500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT OHCC 25195 SW PKWY AVE 204 WILSONVILLE OR 97070 931166189 400 VARIOUS COMMUNITY AND HEALTH ENRICHMENT OHSU FOUNDATION 19758 1211 SW SALMON ST 100 PORTLAND OR 97205 237083114 501C3 250 VARIOUS COMMUNITY AND HEALTH ENRICHMENT OREGON HEALTH CAREER CENTER 25195 SW PKWY AVE 204 WILSONVILLE OR 97070 931166189 1220 VARIOUS COMMUNITY AND HEALTH ENRICHMENT OREGON INTERNATIONAL AIRSHOW PO BOX 37 HILLSBORO OR 97123 300143892 501C3 6500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT OREGON STATE POLICE PO BOX 14129 PORTLAND OR 97293 930893185 501C5 100 VARIOUS COMMUNITY AND HEALTH ENRICHMENT PACIFIC UNIVERSITY 2043 COLLEGE WAY FOREST GROVE OR 97116 930386892 501C3 8000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT PCC AR DC118 PO BOX 19000 PORTLAND OR 97280 930811291 501C3 1500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT PROJECT ACCESS NOW PO BOX 10953 PORTLAND OR 97296 208928388 501C3 6000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT PORTLAND CHAMBER ORCHESTRA-HILLS PO BOX 9024 PORTLAND OR 97207 930556942 501C3 1000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT ROTARY CLUB OF MCMINNVILLE 1301 NE 99W MCMINNVILLE OR 97128 931043552 501C3 1500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT SPECIAL OLYMPICS OREGON PO BOX 2886 PORTLAND OR 97208 930752969 501C3 100 VARIOUS COMMUNITY AND HEALTH ENRICHMENT THE GREATER HILLSBORO AREA ASSOCHILLSBORO 5193 NE ELAM YOUNG PARKWAY-STE A HILLSBORO OR 97123 930420710 501C6 2700 VARIOUS COMMUNITY AND HEALTH ENRICHMENT TUALATIN VALLEY WORKSHOP 6615 SW ALEXANDER HILLSBORO OR 97123 936050200 501C3 800 VARIOUS COMMUNITY AND HEALTH ENRICHMENT TUALITY HEALTHCARE FOUNDATION 335 SE 8TH AVE HILLSBORO OR 97123 930751507 501C3 100 VARIOUS COMMUNITY AND HEALTH ENRICHMENT TUESDAY MARKET PLACE SPONSOR PO BOX 611 HILLSBORO OR 97123 931249105 501C4 7500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT LIFEWORKS NW 6615 SW ALEXANDER HILLSBORO OR 97123 930502822 501C3 1500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT VIRGINIA GARCIA CLINIC PO BOX 486 CORNELIUS OR 97113 930717997 501C3 125000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT VIRGINIA GARCIA MEMORIAL FOUNDATION PO BOX 486 CORNELIUS OR 97113 930717997 501C3 2000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT VISION ACTION NETWORK 3700 SW MURRAY STE 250 BEAVERTON OR 97005 931317190 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT WAPATO SHOWDOWNGASTON OREGON PYTHON PO BOX 507 GASTON OR 97119 431838270 501C10 90 VARIOUS COMMUNITY AND HEALTH ENRICHMENT WASHINGTON COUNTY FAIRGROUNDS 1400 SW WALNUT ST HILLSBORO OR 97123 930764165 501C3 5000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT WESTERN FARM WORKERS ASSOC 725 SE 7TH HILLSBORO OR 97123 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT WESTSIDE ECONOMIC ALLIANCE 10220 SW NIMBUS AVE ST K12 PORTLAND OR 97223 930818096 501C6 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT CITY OF HILLSBORO 4401 NW 229TH HILLSBORO OR 97124 930978514 501C3 1000 VARIOUS COMMUNITY AND HEALTH ENRICHMENT HILLSBORO CHAMBER OF COMMERCE 5193 NE ELAM YOUNG PARKWAY-STE A HILLSBORO OR 97123 930188235 501C6 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT HILLSBORO COMMUNITY ARTS PO BOX 3303 HILLSBORO OR 97123 930698408 501C3 500 VARIOUS COMMUNITY AND HEALTH ENRICHMENT VARIOUS COMMUNITY AND HEALTH ENRICHMENT 37 9 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Internal records document the award of grants or assistance and the intended use. X 0 1 0 0 0 0 0 0 0 RICHARD STENSON 391482 0 0 0 0 0 24000 0 38499 0 453981 0 0 0 JOHN COLETTI JR 389036 0 0 0 0 0 0 0 21999 0 411035 0 0 0 MANUEL BERMAN 225744 0 0 0 0 0 0 0 38499 0 264243 0 0 0 EUNICE RECH 170947 0 0 0 0 0 0 0 21766 0 192713 0 0 0 TIM FLEISCHMANN 189392 0 0 0 0 0 0 0 38500 0 227892 0 0 0 TODD SADOWSKI 482349 0 0 0 0 0 0 0 0 0 482349 0 0 0 JEREMIAH MURPHY 444445 0 0 0 0 0 0 0 32999 0 477444 0 0 0 ROBERT SCHMIDT 441652 0 0 0 0 0 0 0 33000 0 474652 0 0 0 GREGORY ROSENBLATT 462562 0 0 0 0 0 0 0 32999 0 495561 0 0 0 PETER HAHN 449974 0 0 0 0 0 0 0 0 0 449974 0 0 0 Part I, Line 4b Richard Stenson - $24,000 paid in the fiscal year ended 9/30/2012. Part I, Line 4b: Under the plan, Tuality Healthcare is obligated to contribute vested accrued benefits to the participant's plan account. Contributions to the participant's plan account are made on a monthly basis at an amount equal to two thousand dollars per month. Hospital Facility Authority of Hillsboro Oregon 930554495 432101CY7 2004-08-01 27432495 Refund of Series 1993 Bonds 0 0 0 27432495 115500 304910 1003472 2005 0 1 1 1 0 0 0 0 0 0 1 0 0 0 1 Organization Mission Statement Form 990, Part I, Line 1 Tuality Healthcare's Mission is to provide health care to the community with respect for human dignity and without regard for the recipient's ability to pay. We believe that compassion encourages healing, that knowledge is the foundation of wellness, and that attention to quality and fiscal stability will enable us to continue to service the community. Form 990, Part VI, Section B, line 11 A copy of the 990 is reviewed by Tuality Healthcare's Chief Financial Officer. It is then presented to the Tuality Healthcare Board of Directors for review, prior to being filed. Form 990, Part VI, Section B, line 12c The organization regularly and consistently monitors and enforces compliance with the conflict of interest policy by making it part of the employee's annual review. Board members are also required to review the policy annually. All afore said parties are required to certify that they have read the conflict of interest policy, have disclosed any potential conflicts of interest, and agree to immediately notify the Compliance Officer if a conflict should arise. Corrective actions are to be taken immediately to address any conflicts of interest. Form 990, Part VI, Section B, line 15 The Executive group's compensation is periodically reviewed every 3-5 yrs by an independent party, at the direction of the board of directors. The Tuality Healthcare HR department annually reviews compensation for all others. Form 990, Part VI, Section C, line 19 The organization's tax returns are made available for public inspection on the following website: Guidestar.org. Governing documents are made available upon written request to the Chief Financial Officer of Tuality Healthcare. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: CHANGE IN INTEREST IN NET ASSETS UNDER FAS 136 1,283,800. GAAP BAD DEBT EXPENSE IN EXCESS OF DIRECT WRITE OFF METHOD -1,944,200. ROUNDING 23. EQUITY INCOME NET OF DISTRIBUTIONS OF JT VENTURES 3,175,265. CHANGE IN MINIMUM PENSION LIABILITY UNDER FAS 158 -4,469,100. NET ASSETS RELEASED FROM RESTRICTION 50,710. Total to Form 990, Part XI, Line 5: -1,903,502. Reasonable Cause Explanation for Late Electronic Filing of Form #990 The taxpayer is herewith electronically filing its Form #990 for the tax year ended September 30, 2012. The return was originally due on February 15, 2013 and was timely extended until August 15, 2013. At that time, an electronic Form #990 could not be filed as explained below. However, in an effort to comply with filing requirements, Tuality Healthcare timely filed a paper tax return for this tax period. Since then, the Internal Revenue Service has provided Tuality Healthcare with Notice CP254 requesting an electronic tax return to be submitted. This notice prompted Tuality Healthcare to attempt again to file electronically in an effort to comply with the electronic filing requirement. By your receipt of this notice, this attempt is successful. For many years, Tuality Healthcare has successfully electronically submitted its annual tax return, and fully anticipated electronically submitting this tax return on a timely basis. Historically, Tuality Healthcare has electronically attached items to its tax returns without any problems. Specifically, in an abundance of disclosure, Tuality Healthcare has historically attached its Community Benefit Statement along with its required annual audited financial statements. However, in the electronic filing for this tax year, a technical diagnostic generated from the tax preparation software disqualified the tax return from being electronically filed. In part, the diagnostic stated "An entry has been made for an optional PDF attachment. Please note that PDF attachments are not generally allowed for exempt organization returns per IRS...Certain forms that are not currently supported in the exempt organization system may be attached as PDF files with prior IRS approval. If an IRS approved PDF form or document is required it will have to be attached as a PDF file using the 'All other PDF attachments' section on Interview Form." However Tuality Healthcare was unable to find any guidance on how to obtain IRS approval. Except for attached financial statements,the input codes that were successfully used in the software for attaching the other PDFs became obsolete in this tax year. Therefore, not having any other recourse, and in an attempt to timely file its tax return, Tuality Healthcare submitted a paper return. Since receiving the IRS notice, we have reviewed more closely on how to submit the Community Benefit Statement electronically. Tuality Healthcare has learned that it is still unable to attach it eventhough Tuality Healthcare has historically submitted the statement electronically, and specifically, has since learned that it is not required to attach this to the annual tax return. By removing this Community Benefit Statement, and only attaching the required audited financial statements, this return is now eligible through the software to be filed electronically. Based on Tuality Healthcare's consistent and extensive history of electronically filing its annual Form #990, because of Tuality Healthcare's desire to submit information that was previously required and allowed, because of a technical change in having a code become obsolete by the tax preparation software and thereby limiting attachments for electronic filings, and because Tuality Healthcare made an effort to comply with its annual filing requirement by submitting a paper return in lieu, we believe that Tuality Healthcare has reasonable cause for filing its electronic tax return late, and did not demonstrate disregard for filing requirements. Further, now upon learning of the change in the electronic filing coding of the tax software and that only required attachments are permitted to be electronically submitted, Tuality Healthcare has taken necessary steps to forego submitting ineligible documents. This will allow Tuality Healthcare to timely file future annual returns electronically. Please accept this as resonable cause for the late return filing, a sincere effort to avoid this situation in the future, and a request not to have any late filing penalties assessed. Tuality Healthcare Foundation 334 SE 8th Avenue Hillsboro OR 97123 930751507 Charitable Foundation OR 501(C)(3) 7 Tuality Healthcare 0 Tuality Property Management PO Box 309 Hillsboro OR 97123 930840810 Exempt Organization Property Management OR 501(C)(2) N/A Tuality Healthcare 0 Tuality Management Systems Inc 335 SE 8th Avenue Hillsboro OR 97123 930840778 Other Medical Services OR Tuality Healthcare C 1357753 1.00000 0 0 1 1 0 0 0 0 0 1 1 1 1 1 0 0 0 1 Tuality Management Systems Inc K 199452 Actual Cost Tuality Property Management K 424356 Actual Cost Tuality Healthcare Foundation C 1257900 Cash Tuality Healthcare Foundation N 345322 Actual Cost