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      <Description>Mohave County is one of the fastest growing counties in Arizona. The area around Kingman which is the county seat is expected to continue growing steadily in the coming years. In response to the growth, KRMC has continued to expand its services. We now offer a full range of health and wellness services, including a wellness and fitness center, multiple primary care physician practices, advanced medical programs in cardiology, cancer, and rehabilitation, and home health and hospice care. Moreover, we are honored to serve as a teaching hospital in affiliation with Midwestern University to train doctors specializing in family practice, dermatology, and emergency medicine. With the growing population we are seeing the following problems and trends: We are seeing an increasing number of uninsured patients in our area. We are experiencing a higher volume of self pay patients who are waiting to seek medical care until the time that they must go to the emergency room. Our Medicaid population is 25% of our total patient population. Our Medicare population is 55% of total patient population. Major strategies to address identified needs and problems include: We have increased recruitment efforts of RN's, therapists and skilled technicians to meet the growing needs of the community. We continue to recruit physicians of various specialties to the area. We continue to expand our facilities to meet the needs of the community. KRMC is collaborating with community organizations to improve community health, expand access to health care, or in other ways benefit the community. Some examples are: We work with the Women's Health Organization to provide discounted mammography to self pay patients. We work with the Foster Grandparents Association and provide free physical exams. We pay 50% and write off the other 50% for Victims of Crime collaborating with the Mohave County Attorney's Office. The KRMC Foundation has established the Katherine Duncan Fund as a result of a private donation, to assist those who can not afford to pay. If the patient qualifies for KRMC Charity Care and is left with a private pay balance, they are eligible to receive an additional 25% payment through the Katherine Duncan Fund. KRMC is a teaching hospital with a GME program in association with Midwestern University. KRMC operates several physician practices and a continuity clinic. There are plans to expand these services to the outlying areas of our community. In recent years, KRMC has expanded services to include services that are not usually found in a rural community such as; cardiac catherization; cancer diagnosis and treatment with a state-of-the-art cancer center; a new outpatient imaging and women's health center; acute rehabilitation unit; cardiac surgical unit for open heart surgery; wound care; and hyperbaric. Our uncompensated care policy is called "Qualifying Discount Program". Our program is defined as Charity Care services provided for which payment is not anticipated because of an inability to pay, and may apply to an entire account balance or a portion of it. Charity Care is separate and distinct from Bad Debts, which are accounts for which credit was extended and payment is anticipated, but not received. Our discount program is based on a percentage of the Federal Poverty Level. KRMC has updated it's charity care policy to include those patients whose household income is less than 400% of the FPL. This program is for all patients regardless of their primary insurance status and is based on their family size and income from all sources. Organizational Description for Tax Exemption: KRMC operates an ER that is open to all persons regardless of their ability to pay and complies with all EMTALA regulations. We have notices in the ER that informs the patients of this fact; Our admissions staff advises all patients who present for services that we are calling for a nurse and will perform a Medical Screening exam regardless of their ability to pay. We assist them after the medical screening exam with DES applications and in-service them on our Charity Program if should they have an inability to pay. KRMC has an open medical staff with privileges available to all qualified physicians in the area. Kingman Hospital Inc has a governing body in which independent persons representative of the community comprise a majority. KRMC engages in the training and education of health care professionals with its GME program. We participate with Medicare and Medicaid, Champus, Tricare, Veterans Affairs and other governmental health care programs.</Description>
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        <Explanation>Kingman Hospital pays annual dues in which a percentage of their dues is attributable to lobbying. The amount shown on the line above represents that percentage.</Explanation>
      </Form990ScheduleCPartIV>
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        <OtherCostOrOtherBasis>8165050</OtherCostOrOtherBasis>
        <BookValue>8165050</BookValue>
      </OtherLandBuildings>
      <TotalOfBookValueLandBuildings>125592217</TotalOfBookValueLandBuildings>
      <FederalIncomeTaxLiability>0</FederalIncomeTaxLiability>
      <OtherLiabilities>
        <Description>ACCRUED RETIREMENT OBLIGATION</Description>
        <Amount>1252364</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>ESTIMATED SELF-INSURANCE COSTS</Description>
        <Amount>793000</Amount>
      </OtherLiabilities>
      <TotalOfAmounts>2045364</TotalOfAmounts>
      <TotalRevenue>238272269</TotalRevenue>
      <TotalExpenses>227203472</TotalExpenses>
      <ExcessOrDeficitForYear>11068797</ExcessOrDeficitForYear>
      <NetUnrealizedGLOnInvestments>-2168318</NetUnrealizedGLOnInvestments>
      <OtherAmount>-655738</OtherAmount>
      <TotalAdjustments>-2824056</TotalAdjustments>
      <ExcessOrDeficitPerFS>8244741</ExcessOrDeficitPerFS>
      <TotRevenueEtcAuditedFinclStmt>235702764</TotRevenueEtcAuditedFinclStmt>
      <NetUnrealizedGainsInvestments>-2168318</NetUnrealizedGainsInvestments>
      <OtherRevenues>-401187</OtherRevenues>
      <RevenueNotRptdF990>-2569505</RevenueNotRptdF990>
      <RevenueSubtotal>238272269</RevenueSubtotal>
      <TotalRevenuePerForm990>238272269</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>227458023</TotExpensesEtcAuditedFinclStmt>
      <OtherExpensesIncluded>254551</OtherExpensesIncluded>
      <ExpensesNotRptdF990>254551</ExpensesNotRptdF990>
      <ExpensesSubtotal>227203472</ExpensesSubtotal>
      <TotalExpensesPerForm990>227203472</TotalExpensesPerForm990>
      <Form990ScheduleDPartXIV>
        <Identifier>PART V, LINE 4</Identifier>
        <ReturnReference>DESCRIBE THE INTENDED USES OF THE ORGANIZATION'S ENDOWMENT FUNDS:</ReturnReference>
        <Explanation>TEMPORARILY RESTRICTED NET ASSETS ARE THOSE WHOSE USE BY THE MEDICAL CENTER HAS BEEN LIMITED BY DONORS TO A SPECIFIC TIME PERIOD OR PURPOSE. THE TEMPORARILY RESTRICTED NET ASSETS ARE AVAILABLE FOR THE PURCHASE OF SUPPLIES AND TO EDUCATE PERSONNEL INVOLVED WITH EMERGENCY PREPAREDNESS.</Explanation>
      </Form990ScheduleDPartXIV>
      <Form990ScheduleDPartXIV>
        <Identifier>PART XI, LINE 8</Identifier>
        <ReturnReference>DESCRIPTION OF OTHER:</ReturnReference>
        <Explanation>INCOME FROM INVESTMENT IN FOUNDATION: (5,738) GOODWILL IMPAIRMENT: (650,000) TOTAL: (655,738)</Explanation>
      </Form990ScheduleDPartXIV>
      <Form990ScheduleDPartXIV>
        <Identifier>PART XII, LINE 2D</Identifier>
        <ReturnReference>DESCRIPTION OF OTHER:</ReturnReference>
        <Explanation>LOSS ON SALE OF ASSETS: 175,663 COST OF GOODS SOLD: 16,208 INCOME FROM INVESTMENT IN NARIC: 62,680 INCOME FROM INVESTMENT IN FOUNDATION: (5,738) GOODWILL IMPAIRMENT: (650,000) TOTAL: (401,187)</Explanation>
      </Form990ScheduleDPartXIV>
      <Form990ScheduleDPartXIV>
        <Identifier>PART XIII, LINE 2D</Identifier>
        <ReturnReference>DESCRIPTION OF OTHER</ReturnReference>
        <Explanation>LOSS ON SALE OF ASSETS: 175,663 COST OF GOODS SOLD: 16,208 INCOME FROM INVESTMENT IN NARIC: 62,680 TOTAL: 254,551</Explanation>
      </Form990ScheduleDPartXIV>
      <Form990ScheduleDPartXIV>
        <Identifier>Part X, Line 2</Identifier>
        <ReturnReference>Uncertain Tax Positions</ReturnReference>
        <Explanation>Management has evaluated their income tax positions under the guidance included in ASC 740. Based on their review, management has not identified any material uncertain tax positions to be recorded or disclosed in the financial statements.</Explanation>
      </Form990ScheduleDPartXIV>
    </IRS990ScheduleD>
    <IRS990ScheduleH documentId="IRS990ScheduleH">
      <CharityCarePolicy>true</CharityCarePolicy>
      <WrittenPolicy>true</WrittenPolicy>
      <FPGReferenceFreeCare>true</FPGReferenceFreeCare>
      <OtherPercentage>
        <Other>X</Other>
        <FreeOtherPercentage>400.</FreeOtherPercentage>
      </OtherPercentage>
      <FPGReferenceDiscountedCare>true</FPGReferenceDiscountedCare>
      <Pcent400>X</Pcent400>
      <FreeDiscCareMedicallyIndigent>true</FreeDiscCareMedicallyIndigent>
      <AmountsBudgetedForCharityCare>true</AmountsBudgetedForCharityCare>
      <ExpensesExceededBudget>true</ExpensesExceededBudget>
      <UnableToProvideCare>false</UnableToProvideCare>
      <AnnualCommunityBenefitReport>false</AnnualCommunityBenefitReport>
      <CharityCareAtCost>
        <TotalCommunityBenefitExpense>4616241</TotalCommunityBenefitExpense>
        <NetCommunityBenefitExpense>4616241</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.02240</PercentOfTotalExpense>
      </CharityCareAtCost>
      <UnreimbursedMedicaid>
        <TotalCommunityBenefitExpense>33000011</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>28454081</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>4545930</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.02200</PercentOfTotalExpense>
      </UnreimbursedMedicaid>
      <TotalCharityCare>
        <TotalCommunityBenefitExpense>37616252</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>28454081</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>9162171</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.04440</PercentOfTotalExpense>
      </TotalCharityCare>
      <CommunityHealthServices>
        <TotalCommunityBenefitExpense>179855</TotalCommunityBenefitExpense>
        <NetCommunityBenefitExpense>179855</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00090</PercentOfTotalExpense>
      </CommunityHealthServices>
      <CashAndInKindContributions>
        <TotalCommunityBenefitExpense>534335</TotalCommunityBenefitExpense>
        <NetCommunityBenefitExpense>534335</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00260</PercentOfTotalExpense>
      </CashAndInKindContributions>
      <TotalOtherBenefits>
        <TotalCommunityBenefitExpense>714190</TotalCommunityBenefitExpense>
        <NetCommunityBenefitExpense>714190</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00350</PercentOfTotalExpense>
      </TotalOtherBenefits>
      <TotalCommunityBenefits>
        <TotalCommunityBenefitExpense>38330442</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>28454081</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>9876361</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.04790</PercentOfTotalExpense>
      </TotalCommunityBenefits>
      <BadDebtExpenseReported>true</BadDebtExpenseReported>
      <BadDebtExpenseAmount>5400163</BadDebtExpenseAmount>
      <AmountReimbursedByMedicare>51747976</AmountReimbursedByMedicare>
      <CostOfCareReimbursedByMedicare>44666017</CostOfCareReimbursedByMedicare>
      <MedicareSurplusOrShortfall>7081959</MedicareSurplusOrShortfall>
      <CostingMethodologyUsed>
        <Other>X</Other>
      </CostingMethodologyUsed>
      <WrittenDebtCollectionPolicy>true</WrittenDebtCollectionPolicy>
      <ProvisionForCharityCare>true</ProvisionForCharityCare>
      <NumberOfHospitalFacilities>1</NumberOfHospitalFacilities>
      <Form990ScheduleHPartVSectionA>
        <FacilityNumber>1</FacilityNumber>
        <Name>
          <BusinessNameLine1>Kingman Regional Medical Center</BusinessNameLine1>
        </Name>
        <Address>
          <AddressLine1>3269 Stockton Hill Road</AddressLine1>
          <City>Kingman</City>
          <State>AZ</State>
          <ZIPCode>86409</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <GeneralMedicalAndSurgical>X</GeneralMedicalAndSurgical>
        <TeachingHospital>X</TeachingHospital>
        <Er24Hours>X</Er24Hours>
        <Other>Cancer Center Cardiac Cath Lab Acute Rehab Unit</Other>
      </Form990ScheduleHPartVSectionA>
      <Form990ScheduleHPartVSectionB>
        <HospitalFacilityName>
          <BusinessNameLine1>Kingman Regional Medical Center</BusinessNameLine1>
        </HospitalFacilityName>
        <HospitalFacilityNumber>1</HospitalFacilityNumber>
        <CHNAConducted>false</CHNAConducted>
        <EligibilityCriteriaExplained>true</EligibilityCriteriaExplained>
        <UsesFPGFree>true</UsesFPGFree>
        <FPGFreePercent>400.</FPGFreePercent>
        <UsesFPGDiscounted>true</UsesFPGDiscounted>
        <FPGDiscountPercent>400.</FPGDiscountPercent>
        <ExplainsBasis>true</ExplainsBasis>
        <IncomeLevel>X</IncomeLevel>
        <ExplainsApplicationMethod>true</ExplainsApplicationMethod>
        <IncludesPublicityMeasures>true</IncludesPublicityMeasures>
        <PostedOnWebsite>X</PostedOnWebsite>
        <ProvidedOnAdmission>X</ProvidedOnAdmission>
        <AvailableOnRequest>X</AvailableOnRequest>
        <ActionsOnNonpayment>true</ActionsOnNonpayment>
        <PermitOtherActions>X</PermitOtherActions>
        <CollectionActivities>true</CollectionActivities>
        <ReportToCreditAgency>X</ReportToCreditAgency>
        <Lawsuit>X</Lawsuit>
        <NotifyUponAdmission>X</NotifyUponAdmission>
        <NotifyBeforeDischarge>X</NotifyBeforeDischarge>
        <NotifiedAllPatients>X</NotifiedAllPatients>
        <DocumentedDetermination>X</DocumentedDetermination>
        <NondiscrimEmergencyCarePolicy>true</NondiscrimEmergencyCarePolicy>
        <UsedOtherMethod>X</UsedOtherMethod>
        <AmountsGenerallyBilled>false</AmountsGenerallyBilled>
        <GrossCharges>true</GrossCharges>
      </Form990ScheduleHPartVSectionB>
      <Form990ScheduleHPartVI>
        <Identifier>Part V, Question 15</Identifier>
        <ReturnReference>Permitted Collection Actions against a patient</ReturnReference>
        <Explanation>THE HOSPITAL SENDS STATEMENTS, COLLECTION LETTERS, MAKES PHONE CALLS AND DISCUSSES HOSPITAL DISCOUNT AND CHARITY CARE POLICIES THAT ARE AVAILABLE FOR PATIENTS. ADDITIONALLY, WHEN AN ACCOUNT HAS BEEN TURNED OVER TO A COLLECTION AGENGY, THAT AGENCY IS INFORMING PEOPLE ABOUT OUR CHARITY CARE POLICY.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART V, QUESTION 19</Identifier>
        <ReturnReference>HOW HOSPITAL DETERMINES AMOUNT BILLED FOR THOSE W/O INSURANCE</ReturnReference>
        <Explanation>ALL UNINSURED PATIENTS ARE ELIGIBLE FOR A 25% DISCOUNT WHICH IS EQUAL TO THE AVERAGE COMMERCIAL INSURANCE RATES.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART V, QUESTION 21</Identifier>
        <ReturnReference>DID HOSPITAL CHARGE AMOUNT EQUAL TO GROSS CHARGE FOR ANY SERVICES</ReturnReference>
        <Explanation>ALL UNINSURED PATIENTS WHO DO NOT MEET THE ELIGIBILITY REQUIREMENTS OF THE CHARITY CARE POLICY OR SELF PAY DISCOUNT CAN QUALIFY FOR A NO INTEREST LOAN FROM THE HOSPITAL OVER 3-5 YEARS. THESE PATIENTS ARE CHARGED TOTAL GROSS CHARGES. NEW POLICY EFFECTIVE FOR FISCAL YEAR 2012 WILL GRANT 30% DISCOUNT TO ALL SELF PAY PATIENTS REGARDLESS OF ABILITY TO PAY.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>NEEDS ASSESSMENT</Identifier>
        <Explanation>A community survey was conducted in September 2007 to help identify the communities perceptions about the services provided at KRMC and what could be done to improve healthcare in our community. In Addition, we rely on our current medical staff to communicate perceived needs and opportunities in the community. The hospital uses Intellimed data that tracks where patients are coming from which shows need for specific services and demographics of patients by zip code. We monitor community growth and identify benchmarks based on demographics of the population and look at the number of cases transferred to other hospitals because we currently do not have that service and/or physician.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>COMMUNITY INFORMATION</Identifier>
        <Explanation>Kingman Regional Medical Center (KRMC) serves an approximate 1500 square-mile geographic area in Mohave County, Arizona called Hospital District Number One of Mohave County. The district includes the City of Kingman (pop. 28,000) and numerous smaller outlaying communities. The total estimated population of the district is 78,000, with an estimated 11.6 persons per square mile. According to the latest statistics of the U.S. Census Bureau, the racial mix of the population is 92% Caucasian, 1.5% African American, 2.6% Native American, and 14.1% Hispanic or Latino origin. U.S. Census Bureau statistics for 2006 show 16.8% of Mohave County's population is 100% below the federal poverty level and about 38.7% of the population is 200% below the federal poverty level. The median household income is $38,641. The current unemployment rate in Mohave County is 11.1% (as of January, 2011). Approximately 77.5% of the county's population over age 25 are high school graduates, with 9.9% of the population over age 25 holding a Bachelor's degree or higher.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>OTHER INFORMATION</Identifier>
        <Explanation>Kingman Hospital Incorporated is organized exclusively for charitable, scientific, and educational purposes relating to healthcare in Hospital District #1 of Mohave County. Its primary function is to operate Kingman Regional Medical Center. KHI's Board of Directors consists of 25 members holding terms of five years. All board members are community-minded individuals who receive no compensation for their services on the KHI Board. All excess funds are kept for the benefit and development of the community's health services as determined by our local board. With this, our hospital average inpatient charges have remained significantly below the Arizona average for the same types of patients. Additionally, excess funds accumulated since KRMC was organized, have been utilized to pay campus expansion / improvements, state-of-the-industry technology, and competitive salaries for employees. Kingman Hospital Inc. continually invests in advanced medical technologies. From specialized diagnostic capabilities to advanced treatments in cardiac care and cancer, patients at KRMC benefit from some of the most sophisticated medical technologies in the region. In 2007, KRMC received the Governor's Arizona Innovation Award in recognition for its investment in technology and services not normally seen in a rural community. KRMC is a major community partner dedicated to enhancing the overall quality-of-life in northwest Arizona. We offer many services and programs to benefit the community, especially our most vulnerable citizens- children, elderly, those in ill health, and those in socio-economic distress. Examples of our community building activities include: -Conducting public health lectures at the hospital and at area nursing homes and businesses(monthly). -Conducting health fairs, which are free and open to the public (8 health fairs per year) -Offering a variety of free support groups to help people who are working to change a behavior or who are dealing with a loss, condition, or disease. -Publishing a quarterly 8-page newsletter (called Healthwise), which contains important health information for the public. The newsletter is free and distributed throughout northwest Arizona. -Providing free growth mats and car seats for babies born at KRMC -Sponsoring physical fitness programs at community elementary schools to help kids be active, fit, and healthy -Placing defibulators in our community's high-traffic public places to provide immediate lifesaving treatment to someone with cardiac arrest. -Providing free or low cost mammograms to uninsured or underinsured women residing in the Hospital District of Mohave County. -Providing scholarships for qualified individuals who cannot afford a membership to KRMC's Del E. Webb Wellness Center -Providing scholarships to help nursing students with their educational costs -Providing cash contributions, free services, or other support to over 40 local organizations that serve the needs of our community (e.g, Boys &amp; Girls Club, Kingman Food Bank, Sarah's House, etc.). -Helping uninsured/underinsured patients with their healthcare costs through KRMC's charity care program. Additionally, KRMC is one of the area's largest contributors to the local economy. We employ over 1500 people and during the past year spent over $10,000,000 with local businesses. In 2011, and for the sixth time in seven years, KRMC was named by Cleverley + Associates as a national 5-Star Hospital for the value we provide to our community.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>AFFILIATED HEALTH CARE SYSTEM ROLES</Identifier>
        <Explanation>N/A</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART I, LINE 7, COLUMN F</Identifier>
        <Explanation>TOTAL BAD DEBT EXPENSE REMOVED FROM THE DENOMINATOR PRIOR TO THE PERCENTAGE CALCULATION = $20,874,227.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART I, LINE 7</Identifier>
        <Explanation>THE ORGANIZATION USED A COST-TO-CHARGE RATIO FOR LINES 7A, 7B, AND 7B. THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES. THE INFORMATION FOR LINES 7E THROUGH 7I WAS DERIVED FROM INFORMATION IN THE GENERAL LEDGER AND OTHER FINANCIAL DATA RELATED SPECIFICALLY TO THE VARIOUS TYPES OF COMMUNITY BENEFITS.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART III, LINE 4</Identifier>
        <Explanation>Accounts receivable are reduced by an allowance for doubtful accounts. In evaluating the collectability of accounts receivable, the Medical Center analyzes its past history and identifies trends for each of its major payer sources of revenue to estimate the appropriate allowances for doubtful accounts and provision for uncollectible accounts. Management regularly reviews data about these major payer sources of revenue in evaluating the sufficiency of the allowances for doubtful accounts. For receivables associated with services provided to patients who have third party coverage, the Medical Center analyzes contractually due amounts and provides an allowance for doubtful accounts and a provision for uncollectable accounts, if necessary (for example, for expected uncollectible deductibles and copayments on accounts for which the third party payer has not yet paid, or for payers who are known to be having financial difficulties that make the realization of amounts due unlikely.) For receivables associated with self-pay patients (which include both patients without insurance and patients with deductible and copayment balances due for which third-party coverage exists for part of the bill), the Medical Center records a significant provision for uncollectible accounts in the period of service on the basis of its past experience, which indicates that many of the patients are unable or unwilling to pay the portion of their bill for which they are financially responsible. The difference between the standard rates (or the discounted rates if negotiated or provided by policy) and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for doubtful accounts. The Medical Center's allowance for doubtful accounts for self-pay patients decreased from 95% of self-pay accounts receivable at June 30, 2011 to 81% of self-pay accounts receivable at June 30, 2012. In addition, the Medical Center's write-offs decreased approximately $8,300,000 from approximately $16,900,000 for the year ended June 30, 2011, to approximately $8,600,000 for the year ended June 30, 2012. Both changes are primarily due to the Medical Center recording an uninsured discount of 30% and increasing the charity care policy's threshold starting in fiscal year 2012. This discount is recorded for self-pay accounts at the time of billing.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART III, LINE 8</Identifier>
        <Explanation>The Organization is a sole community hospital that provides healthcare services to community residents and visitors. Accessible, high-quality healthcare service is important for the overall health of all residents. Were there to be a Medicare shortfall, this would reflect the excess of costs over payments received for participants in the Medicare program. Costs are based on Medicare cost report allocations.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PART III, LINE 9B</Identifier>
        <Explanation>For Self-Pay Patients: Once the patient is billed and contacted, they are informed of options and of the Qualifying Discount Program (QDP). The other options include paying up front or no interest payments within a scheduled number of days. A cash discount is available to the patient. If qualified for the QDP, the appropriate qualifying amount is adjusted to Charity Care. If a balance remains that does not qualify, the patient has cash discount and no interest payment plan as described above. For patients that the hospital is unable to contact: Eight account statements are sent. Three letters explaining that if the patient fails to contact Patient Financial Services, collection efforts will be passed to an agency. The above is a minimum of 120 day process for all patient payer types. Once the patient account is submitted to a collection agency, it is adjusted to bad debt.</Explanation>
      </Form990ScheduleHPartVI>
    </IRS990ScheduleH>
    <IRS990ScheduleI documentId="IRS990ScheduleI">
      <RecordsMaintained>true</RecordsMaintained>
      <Form990ScheduleIPartIII>
        <TypeOfGrant>Scholarships</TypeOfGrant>
        <NumberOfRecipients>63</NumberOfRecipients>
        <AmountOfCashGrant>186942</AmountOfCashGrant>
      </Form990ScheduleIPartIII>
      <Form990ScheduleIPartIV>
        <Identifier>Part I, Question 2</Identifier>
        <ReturnReference>Procedures for Monitoring the use of grant funds to U.S.</ReturnReference>
        <Explanation>Fund usage is predetermined by the Board of Directors of Kingman Regional MedicaY Center (KRMC). Scholarships are provided to students in the U.S. for tuition and related educational expenses only.</Explanation>
      </Form990ScheduleIPartIV>
    </IRS990ScheduleI>
    <IRS990ScheduleJ documentId="IRS990ScheduleJ">
      <CompensationCommittee>X</CompensationCommittee>
      <IndependentConsultant>X</IndependentConsultant>
      <WrittenEmploymentContract>X</WrittenEmploymentContract>
      <CompensationSurvey>X</CompensationSurvey>
      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
      <SeverancePayment>false</SeverancePayment>
      <SupplementalNonqualRetirePlan>false</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>false</EquityBasedCompArrangement>
      <CompBasedOnRevenueOfFilingOrg>true</CompBasedOnRevenueOfFilingOrg>
      <CompBasedOnRevenueRelatedOrgs>false</CompBasedOnRevenueRelatedOrgs>
      <CompBasedNetEarningsFilingOrg>false</CompBasedNetEarningsFilingOrg>
      <CompBasedNetEarningsRelateOrgs>false</CompBasedNetEarningsRelateOrgs>
      <AnyNonFixedPayments>false</AnyNonFixedPayments>
      <InitialContractException>false</InitialContractException>
      <Form990ScheduleJPartII>
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        <CompBasedOnRelatedOrgs>0</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>33500</BonusFilingOrg>
        <BonusRelatedOrgs>0</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>16500</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>0</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>0</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>22576</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>0</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>520130</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>0</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>RYAN KENNEDY</NamePerson>
        <BaseCompensationFilingOrg>160908</BaseCompensationFilingOrg>
        <BonusFilingOrg>0</BonusFilingOrg>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>22756</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>183664</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>LAWRENCE LEWIS</NamePerson>
        <BaseCompensationFilingOrg>261994</BaseCompensationFilingOrg>
        <BonusFilingOrg>0</BonusFilingOrg>
        <OtherCompensationFilingOrg>13359</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>9971</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>18551</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>303875</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>JEFFREY LUNN MD</NamePerson>
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        <TotalCompensationFilingOrg>528042</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DEBORAH BENNETT DO</NamePerson>
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        <BonusFilingOrg>0</BonusFilingOrg>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>8402</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>24406</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>240667</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>EMMETT MCELENEY</NamePerson>
        <BaseCompensationFilingOrg>901693</BaseCompensationFilingOrg>
        <BonusFilingOrg>191905</BonusFilingOrg>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>1551</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>1095149</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>ROBERT MATHENEY</NamePerson>
        <BaseCompensationFilingOrg>721392</BaseCompensationFilingOrg>
        <BonusFilingOrg>15134</BonusFilingOrg>
        <OtherCompensationFilingOrg>36447</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>6758</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>1551</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>781282</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>HESHAM SAHAWNEH</NamePerson>
        <BaseCompensationFilingOrg>587554</BaseCompensationFilingOrg>
        <BonusFilingOrg>55000</BonusFilingOrg>
        <OtherCompensationFilingOrg>35436</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>7350</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>23154</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>708494</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>ERICK MONTERO</NamePerson>
        <BaseCompensationFilingOrg>657967</BaseCompensationFilingOrg>
        <BonusFilingOrg>843</BonusFilingOrg>
        <OtherCompensationFilingOrg>46882</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>1551</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>707243</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>SAADEH SAADEH</NamePerson>
        <BaseCompensationFilingOrg>641842</BaseCompensationFilingOrg>
        <BonusFilingOrg>36148</BonusFilingOrg>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>3571</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>681561</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>TIMOTHY BLANCHARD</NamePerson>
        <BaseCompensationFilingOrg>139685</BaseCompensationFilingOrg>
        <BonusFilingOrg>0</BonusFilingOrg>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>27122</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>166807</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <Identifier>Part 1 Question 5</Identifier>
        <ReturnReference>Explanation of compensation contingent of Revenues</ReturnReference>
        <Explanation>Employed physicians are eligible for bonuses based on either revenues or business line income depending on their individual employment contracts.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>Part VI, Question 11</Identifier>
        <ReturnReference>Process to review the form 990</ReturnReference>
        <Explanation>The Form 990 is prepared by a third party preparer with a detail review being conducted by the general accounting manager and accountant of the organization. A final copy of the Form 990 is then e-mailed to the board of directors before the return is filed with the IRS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Part VI, Question 12c</Identifier>
        <ReturnReference>Process for monitoring compliance with conflict of interest policy</ReturnReference>
        <Explanation>The executive assistant to the CEO annually distributes the policy documents and forms to all managers and board members. The related forms contain written explanations by managers and board members. If a potential conflict arises, the situation is then reviewed by the CEO. If a conflict of interest covered by this policy exists, whether or not listed on a disclosure form, then the person involved with the potential conflict of interest recuses themself from voting on the matter.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Part VI, Question 15A-B</Identifier>
        <ReturnReference>Process for Determining Compensation</ReturnReference>
        <Explanation>A benefits and compensation analyst prepares a study based on external comparisons of similar positions in similar sized organizations in the industry. The study is reviewed by a compensation committee then submitted to the Executive Board for final approval. Contemporaneous documentation and recordkeeping with respect to deliberations and decisions regarding the compensation process are kept on file. This study is conducted annually.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Part VI, Question 19</Identifier>
        <ReturnReference>Governing Documents Available to the Public</ReturnReference>
        <Explanation>The organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request for a valid business purpose.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Part XI, Line 5</Identifier>
        <ReturnReference>Other Changes in Net Assets or Fund Balances</ReturnReference>
        <Explanation>Unrealized Gain or Loss: (2,168,318) Goodwill Impairment: (650,000) Change in Investment of Foundation: (5,738) Total: (2,824,056)</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>NORTHWESTERN ARIZONA REGIONAL INSURANCE</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>4041 N CENTRAL AVE</AddressLine1>
          <City>PHOENIX</City>
          <State>AZ</State>
          <ZIPCode>85012</ZIPCode>
        </AddressUS>
        <EIN>208081486</EIN>
        <PrimaryActivities>INSURER</PrimaryActivities>
        <LegalDomicileState>AZ</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 9</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>KINGMAN REGIONAL MEDICAL CENTER FOUNDATI</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>3269 STOCKTON HILL ROAD</AddressLine1>
          <City>KINGMAN</City>
          <State>AZ</State>
          <ZIPCode>86409</ZIPCode>
        </AddressUS>
        <EIN>742388735</EIN>
        <PrimaryActivities>FUND RAISING</PrimaryActivities>
        <LegalDomicileState>AZ</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 7</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>false</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>false</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>true</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>false</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>false</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>false</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>false</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>false</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>false</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>false</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>false</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>false</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>true</SharingOfFacilities>
      <SharingOfPaidEmployees>true</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>false</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>false</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>true</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>false</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Northwestern Arizona Regional Insurance Co</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>q</TransactionType>
        <AmountInvolved>1742433</AmountInvolved>
        <MethodOfAmtDetermination>FMV</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>KINGMAN REGIONAL MEDICAL CENTER FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>228617</AmountInvolved>
        <MethodOfAmtDetermination>FMV</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>