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      <Description>On November 23, 2011, Beacon Health System, Inc. (the "Corporation") was established as the parent corporation of Memorial Hospital of South Bend, Inc. ("MHSB") and Elkhart General Hospital, Inc. ("EGH") to develop a full spectrum of health-related services for North Central Indiana and Southwestern Michigan. The Corporation is community-owned and not-for-profit. Along with its subsidiaries, the Corporation serves the greater community throughout the continuum of care from health promotion and sickness prevention to diagnosis, inpatient, outpatient and home health services. The Corporation controls MHSB, EGH, Memorial Health Foundation, and Beacon Health Ventures, Inc., collectively referred to as the "System". Memorial Health Foundation, Inc., (MHF) is a tax-exempt, non-private foundation. It was established in 1982 to provide philanthropic support to MHSB, and continues to provide this support to the newly created Corporation through contributions and management of endowment funds. Memorial Health Foundation's mission is to support the work of Beacon Health System by inspiring generosity and commitment to our cause. MHF exists to allow people to generously support Beacon in a way that connects them with the impact they are having on our work in the community. Memorial Health Foundation works to support Beacon Health System in three key ways: - Creating relationships - Inspiring investment - Stewarding resources Creating Relationships Every day, the associates of Beacon Health System care for those most in need of high quality, specialized medical care. From infants born four months early, to children with cancer, to mothers, fathers, sisters, brothers and friends who have faced a serious injury, we are always here for every member of our community. Memorial Health Foundation (MHF) raises funds for Beacon Health System. Our job is to ensure that charitable support for Beacon is used to create the most significant impact possible at Memorial in a way that is most meaningful to each donor. We build relationships with those who want to make a difference and connect them with a cause within our system that inspires them. Our health system is reliant on the support of our community to ensure that we are always able to provide the highest quality services for every patient. At Memorial Health Foundation, every gift matters and is an investment into our mission and our community. We treat that investment with the same level of care and concern that Beacon Health System shows each one of its patients. Inspiring Investment: In 2012, fund raising at Memorial Health Foundation focused upon the following areas: - Corporate Fundraising - Grant Writing, focusing on private, corporate, and family foundations - Online Giving - Major gift fundraising, focusing on: - Memorial Children's Hospital - The Memorial Neighborhood Health Centers - Memorial HealthWorks! Kids' Museum - Spiritual Care Services - Staff Education - Direct Mail Fundraising Funds available at MHF to support Memorial's mission as of December 31, 2012: Memorial Hospital &amp; Health System $1,188,113 Memorial Children's Hospital $2,940,321 Stewarding Resources In 2012, funds from Memorial Health Foundation went to support the following areas at Memorial: Memorial Hospital &amp; Health System Memorial BrainWorks $ 133,693 Memorial Regional Cancer Center $ 86,343 Community Outreach $ 31,000 Family Medicine Residency Program $ 5,500 Family Emotional Support (Chaplaincy, Social Services, etc.) $ 5,049 Memorial Leighton Heart &amp; Vascular Center $ 35,537 Memorial Neighborhood Health Centers $ 7,110 Pfeil Innovation Center $ 73,637 Reach Out Club $ 78,901 Staff Education $ 122,466 Areas of Greatest Need at Memorial $ 140,291 Memorial Children's Hospital Memorial Children's Hospital $ 23,079 Pediatric Emotional Support (Child Life, Social Services, etc.) $ 11,052 Developmental Pediatrics $ 3,512 HealthWorks! Kids' Museum $ 136,729 Newborn Intensive Care Unit $ 7,798 Pediatric Cancer and Blood Disorders Clinic $ 22,163 Newborn Intensive Care Unit $ 7,798 Pediatric Cancer and Blood Disorders Clinic $ 22,163</Description>
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        <NamePerson>Michael Steinberg MD</NamePerson>
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        <NamePerson>Katie Toothaker</NamePerson>
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        <NamePerson>Emerson Spartz</NamePerson>
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        <NamePerson>David Hornback MD</NamePerson>
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        <NamePerson>Paqui Kelly</NamePerson>
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        <NamePerson>Philip A Newbold</NamePerson>
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        <OtherCompensation>34197</OtherCompensation>
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      <TotalReportableCompFrmRltdOrgs>3483851</TotalReportableCompFrmRltdOrgs>
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        <Personal>0</Personal>
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      <GrantsToDomesticOrgs>
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        <ProgramServices>955513</ProgramServices>
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      <GrantsToDomesticIndividuals>
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        <ProgramServices>23346</ProgramServices>
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      <ForeignGrants>
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      <BenefitsToMembers>
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        <ProgramServices>0</ProgramServices>
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        <ManagementAndGeneral>149420</ManagementAndGeneral>
        <Fundraising>107464</Fundraising>
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        <ProgramServices>0</ProgramServices>
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        <ProgramServices>26435</ProgramServices>
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      <OtherEmployeeBenefits>
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        <ProgramServices>10</ProgramServices>
        <ManagementAndGeneral>26716</ManagementAndGeneral>
        <Fundraising>26689</Fundraising>
      </OtherEmployeeBenefits>
      <PayrollTaxes>
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        <ProgramServices>1461</ProgramServices>
        <ManagementAndGeneral>11686</ManagementAndGeneral>
        <Fundraising>11199</Fundraising>
      </PayrollTaxes>
      <FeesForServicesManagement>
        <Total>0</Total>
        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </FeesForServicesManagement>
      <FeesForServicesLegal>
        <Total>0</Total>
        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </FeesForServicesLegal>
      <FeesForServicesAccounting>
        <Total>545</Total>
        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>545</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </FeesForServicesAccounting>
      <FeesForServicesLobbying>
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        <ProgramServices>0</ProgramServices>
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        <Fundraising>0</Fundraising>
      </FeesForServicesLobbying>
      <FeesForServicesProfFundraising>
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        <Fundraising>0</Fundraising>
      </FeesForServicesProfFundraising>
      <FeesForServicesInvstMgmntFees>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </FeesForServicesInvstMgmntFees>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>13212</ManagementAndGeneral>
        <Fundraising>1267</Fundraising>
      </FeesForServicesOther>
      <Advertising>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </Advertising>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>25074</ManagementAndGeneral>
        <Fundraising>20600</Fundraising>
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      <InformationTechnology>
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        <ManagementAndGeneral>14387</ManagementAndGeneral>
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      </InformationTechnology>
      <Royalties>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </Royalties>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>16460</ManagementAndGeneral>
        <Fundraising>15775</Fundraising>
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      <Travel>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>1233</ManagementAndGeneral>
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      <TravelEntrtnmntPublicOfficials>
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        <ProgramServices>0</ProgramServices>
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        <Fundraising>0</Fundraising>
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        <ManagementAndGeneral>1656</ManagementAndGeneral>
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      <Interest>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>29200</ManagementAndGeneral>
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      <PaymentsToAffiliates>
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      </PaymentsToAffiliates>
      <DepreciationDepletion>
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        <ProgramServices>0</ProgramServices>
        <ManagementAndGeneral>50513</ManagementAndGeneral>
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      <Insurance>
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        <ManagementAndGeneral>21294</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </Insurance>
      <OtherExpenses>
        <Description>CORPORATE ALLOCATION</Description>
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        <Fundraising>131613</Fundraising>
      </OtherExpenses>
      <OtherExpenses>
        <Description>LICENSES/TAXES</Description>
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        <ProgramServices>0</ProgramServices>
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      <OtherExpenses>
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        <ManagementAndGeneral>0</ManagementAndGeneral>
        <Fundraising>5483</Fundraising>
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      <OtherExpenses>
        <Description>DUES/SUBSCRIPTIONS</Description>
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        <ManagementAndGeneral>2020</ManagementAndGeneral>
        <Fundraising>1936</Fundraising>
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      <AllOtherExpenses>
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        <ManagementAndGeneral>11669</ManagementAndGeneral>
        <Fundraising>10986</Fundraising>
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      <TotalFunctionalExpenses>
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        <EOY>0</EOY>
      </OtherLiabilities>
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      <AccountantCompileOrReview>false</AccountantCompileOrReview>
      <FSAudited>true</FSAudited>
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        <CurrentTaxYearMinus1Year>2225724</CurrentTaxYearMinus1Year>
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        <CurrentTaxYearMinus1Year>2225992</CurrentTaxYearMinus1Year>
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        <Total>0</Total>
      </AmtsFromSubstContributors>
      <SupportFromDQPsEtc>
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        <CurrentTaxYearMinus1Year>370311</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>168329</CurrentTaxYear>
        <Total>860506</Total>
      </SupportFromDQPsEtc>
      <PublicSupportTotal509>7509265</PublicSupportTotal509>
      <GrossInvestmentIncome509>
        <CurrentTaxYearMinus4Years>402683</CurrentTaxYearMinus4Years>
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        <CurrentTaxYearMinus1Year>195423</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>548735</CurrentTaxYear>
        <Total>1462108</Total>
      </GrossInvestmentIncome509>
      <Post1975UBTI>
        <CurrentTaxYearMinus4Years>18314</CurrentTaxYearMinus4Years>
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        <Total>28724</Total>
      </Post1975UBTI>
      <InvestmentIncomeAndUBTI>
        <CurrentTaxYearMinus4Years>420997</CurrentTaxYearMinus4Years>
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        <CurrentTaxYearMinus1Year>195423</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>548735</CurrentTaxYear>
        <Total>1490832</Total>
      </InvestmentIncomeAndUBTI>
      <NetIncomeFromOtherUBI>
        <Total>0</Total>
      </NetIncomeFromOtherUBI>
      <OtherIncome509>
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        <CurrentTaxYearMinus4Years>2096374</CurrentTaxYearMinus4Years>
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        <CurrentTaxYearMinus1Year>2423370</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>2123757</CurrentTaxYear>
        <Total>9867858</Total>
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      <PublicSupportPercentage509>0.76098</PublicSupportPercentage509>
      <PriorYearSupportPercentage>0.60659</PriorYearSupportPercentage>
      <InvestmentIncomePercentage>0.15108</InvestmentIncomePercentage>
      <PriorYrInvestIncomePercentage>0.24849</PriorYrInvestIncomePercentage>
      <ThirtyThreePercntTestsCY509>X</ThirtyThreePercntTestsCY509>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="IRS990ScheduleB">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
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          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleD documentId="IRS990ScheduleD">
      <ArtPublicExhibitionAmts />
      <HeldWorksOfArtAmts />
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        <BeginningOfYearBalance>22198822</BeginningOfYearBalance>
        <Contributions>1501904</Contributions>
        <InvestmentEarningsOrLosses>1884305</InvestmentEarningsOrLosses>
        <GrantsOrScholarships>923860</GrantsOrScholarships>
        <EndOfYearBalance>24661171</EndOfYearBalance>
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        <BeginningOfYearBalance>21769701</BeginningOfYearBalance>
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      <EndowmentsHeldByUnrelatedOrgs>false</EndowmentsHeldByUnrelatedOrgs>
      <EndowmentsHeldByRelatedOrgs>true</EndowmentsHeldByRelatedOrgs>
      <Land />
      <Buildings />
      <LeaseholdImprovements />
      <Equipment>
        <OtherCostOrOtherBasis>416856</OtherCostOrOtherBasis>
        <Depreciation>347752</Depreciation>
        <BookValue>69104</BookValue>
      </Equipment>
      <OtherLandBuildings />
      <TotalOfBookValueLandBuildings>69104</TotalOfBookValueLandBuildings>
      <FinancialDerivatives />
      <CloselyHeldEquityInterests />
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        <Identifier>INTENDED USE OF ENDOWMENT FUNDS</Identifier>
        <ReturnReference>Sch. D, Part V, Line 4</ReturnReference>
        <Explanation>The Board has discretion to utilize each year the incomes, revenues, and profits arising and accruing from the endowments in defraying costs associated with the trust and the remainder for support, betterment, improvement, upkeep, expansion, and replacement of Beacon Health System, Inc. and its corporate affiliates. Term endowments, which are the Temporarily restricted net assets, are used as designated by the donor. The permanent endowment provides income to be used for health care educational purposes and patient care.</Explanation>
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      <Form990ScheduleDPartXIII>
        <Identifier>FIN 48 (ASC 740) Footnote</Identifier>
        <ReturnReference>Sch. D, Part X, line 2</ReturnReference>
        <Explanation>Memorial Health Foundation did not have a footnote addressing FIN 48 (ASC 740) liabilities for uncertain tax positions in it's consolidated financial statements. Memorial Health Foundation does not have any uncertain tax positions recorded during fiscal year.</Explanation>
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        <Region>Central America and the Caribbean</Region>
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      </AcctsActvsOutUSTable>
      <SubtotalAmountSpent>2183753</SubtotalAmountSpent>
      <TotalAmountSpent>2183753</TotalAmountSpent>
      <TransferToForeignCorp>false</TransferToForeignCorp>
      <InterestInForeignTrust>false</InterestInForeignTrust>
      <OwnForeignCorp>true</OwnForeignCorp>
      <PassiveForeignInvestCo>false</PassiveForeignInvestCo>
      <ForeignPartnership>false</ForeignPartnership>
      <BoycottCountries>false</BoycottCountries>
    </IRS990ScheduleF>
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        <NameOfEvent1>Jazz About Art</NameOfEvent1>
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        <GrossRevenueEvent1>5300</GrossRevenueEvent1>
        <FoodAndBeverageEvent1>8264</FoodAndBeverageEvent1>
        <EntertainmentEvent1>132</EntertainmentEvent1>
        <TotalNumberOfOtherEvents>0</TotalNumberOfOtherEvents>
        <GrossReceiptsOtherEvents>0</GrossReceiptsOtherEvents>
        <CharitableContribOtherEvents>0</CharitableContribOtherEvents>
        <GrossRevenueOtherEvents>0</GrossRevenueOtherEvents>
        <CashPrizesOtherEvents>0</CashPrizesOtherEvents>
        <NonCashPrizesOtherEvents>0</NonCashPrizesOtherEvents>
        <RentFacilityCostsOtherEvents>0</RentFacilityCostsOtherEvents>
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        <EntertainmentOtherEvents>0</EntertainmentOtherEvents>
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        <FoodAndBeverageTotalEvents>8264</FoodAndBeverageTotalEvents>
        <EntertainmentTotalEvents>132</EntertainmentTotalEvents>
        <OtherDirectExpensesTotalEvents>0</OtherDirectExpensesTotalEvents>
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        <NetIncomeSummary>-3096</NetIncomeSummary>
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          <BusinessNameLine1>Memorial Hospital of South Bend Inc</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>615 N Michigan Street</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
          <ZIPCode>46601</ZIPCode>
        </AddressUS>
        <EINOfRecipient>350868132</EINOfRecipient>
        <IRCSection>501(c)(3)</IRCSection>
        <AmountOfCashGrant>694548</AmountOfCashGrant>
        <PurposeOfGrant>General Support</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
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          <AddressLine1>615 N Michigan Street</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
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        <RecipientNameBusiness>
          <BusinessNameLine1>Ronald McDonald Charities</BusinessNameLine1>
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          <AddressLine1>One Kroc Drive</AddressLine1>
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          <ZIPCode>60523</ZIPCode>
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          <BusinessNameLine1>Samantha Hickey Foundation Inc</BusinessNameLine1>
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          <AddressLine1>54530 White Tail Dr</AddressLine1>
          <City>Mishawaka</City>
          <State>IN</State>
          <ZIPCode>46545</ZIPCode>
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        <Identifier>GRANT MONITORING PROCEDURES</Identifier>
        <ReturnReference>Schedule I, Part I</ReturnReference>
        <Explanation>The organization has numerous temporarily restricted funds from which the distributions are considered grants. In general the grants are to provide scholarships and/or are distributions for the purpose of the specific fund. All distributions of the funds are supported by evidence that the expenditure meets the donor's intent. For scholarships the individual must meet several requirements to qualify. In order to qualify for a scholarship the individual must (1)Apply on-line (intranet) and within the acceptable time parameters for the semester of funds being requested, (2) Maintain a grade of C or better,(3)Pay for tuition/books and submit corresponding original receipts for reimbursement - reimbursed up to the amount awarded by the scholarship committee. (4) Meet any additional requirements of the specific scholarship fund, and (5) Meet eligibility requirements. Eligibility requirements include: (A) Employed by Memorial Health System, Inc. (B) Enrolled in a qualified program; (C) Submitted a positive recommendation each semester from the immediate supervisor; and (D) Submitted a positive recommendation each semester from the school.</Explanation>
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        <NamePerson>Michael Steinberg MD</NamePerson>
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        <NamePerson>David Hornback MD</NamePerson>
        <Title>Director</Title>
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        <NamePerson>Kellie Porter</NamePerson>
        <Title>Asst. Secretary</Title>
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      <Form990ScheduleJPartIII>
        <Identifier>PART I, LINE 1A</Identifier>
        <ReturnReference>SOCIAL CLUB AND SPOUSAL TRAVEL</ReturnReference>
        <Explanation>MEMORIAL HEALTH FOUNDATION, INC. (MHF) REIMBURSES TRUSTEES FOR THE TAX EFFECT OF THE 1099 REPORTABLE BENEFITS FOR HEALTH CLUB MEMBERSHIP, WITH MHS'S HEALTH AND LIFESTYLE CENTER, AND SPOUSAL TRAVEL. THIS REPORTING IMPACTS 14 CURRENT BOARD MEMBERS. MHF ALSO REIMBURSES FOR DIRECT EXPENSES RELATED TO ANY TRAVEL ON THE ORGANIZATION'S BEHALF. SPOUSAL TRAVEL WAS INCLUDED IN TAXABLE COMPENSATION FOR 2 EMPLOYEES (PHILIP NEWBOLD AND JEFFREY COSTELLO). SOCIAL CLUB MEMBERSHIP WAS INCLUDED IN TAXABLE COMPENSATION FOR 1 EMPLOYEE (JEFFREY COSTELLO).</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>PART 1, LINE 3</Identifier>
        <ReturnReference>COMPENSATION REVIEW PROCESS</ReturnReference>
        <Explanation>MEMORIAL HEALTH FOUNDATION, INC. USES A RELATED ORGANIZATION'S (MEMORIAL HEALTH SYSTEM, INC.) COMPENSATION REVIEW PROCESS. THIS REVIEW PROCESS INCLUDES AN EXTENSIVE EXAMINATION USING COMPARABLE MARKET DATA THAT IS THEN REVIEWED BY AN INDEPENDENT CONSULTANT HIRED BY, AND REPORTING TO, THE BOARD OF DIRECTORS. RECOMMENDATIONS ARE PRESENTED TO THE BOARD FOR DELIBERATION AND FINAL DECISION.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>PART I, LINE 4B</Identifier>
        <ReturnReference>EXECUTIVE RETENTION PLAN</ReturnReference>
        <Explanation>Beacon Health System implemented an Executive Retention Plan to attract and retain key employees by providing additional deferred compensation. The Chief Executive Officer will participate in the plan and will select other participants pursuant to the guidelines set by the Employer's Board of Directors. The Employer may make contributions under the plan and has sole discretion over whether to make a contribution. Vesting occurs on January 1 of the fifth year for which such contributions are made for participants who have been continuously employed.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>PART I, LINE 6A &amp; 6B</Identifier>
        <ReturnReference>COMPENSATION CONTINGENT ON NET EARNINGS</ReturnReference>
        <Explanation>THE RELATED ORGANIZATION, MEMORIAL HEALTH SYSTEM, HAS THREE INCENTIVE PLANS (EMPLOYEE, MANAGEMENT AND EXECUTIVE) WHICH HAVE A NET OPERATING INCOME TO BUDGET MEASUREMENT FOR THE PAYOUT THRESHOLD. THE EMPLOYEE PLAN SHARES THE EXCESS OVER BUDGET NET OPERATING INCOME WITH THE NON-MANAGMENT EMPLOYEES FOR MEMORIAL HEALTH SYSTEM, INC AND THE AFFILIATED ENTITIES, WHICH INCLUDES MEMORIAL HOSPITAL OF SOUTH BEND, INC. THE EMPLOYEE INCENTIVE HAS A MAXIMUM CAP OF $2,500,000. THE MANAGEMENT INCENTIVE PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET OPERATING INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME. EXECUTIVES ARE COVERED UNDER THE BEACON HEALTH SYSTEM EXECUTIVE SHORT-TERM INCENTIVE PLAN(ESTIP). THE ESTIP PLAN PAYS A SLIDING PERCENTAGE OF BASE COMPENSATION IF THE NET OPERATING INCOME IS EQUAL TO OR GREATER THAN 80% OF THE BUDGETED NET INCOME. THE SLIDING SCALE CAPS WHEN OPERATING INCOME REACHES 120% OF THE BUDGETED OPERATING INCOME.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleM documentId="IRS990ScheduleM">
      <WorksOfArt />
      <ArtHistoricalTreasures />
      <ArtFractionalInterest />
      <BooksAndPublications />
      <ClothingAndHouseholdGoods />
      <CarsAndOtherVehicles />
      <BoatsAndPlanes />
      <IntellectualProperty />
      <SecuritiesPubliclyTraded />
      <SecuritiesCloselyHeldStock />
      <SecuritiesPrtnrshpTrustIntrsts />
      <SecuritiesMiscellaneous />
      <QualifiedContribHistStruct />
      <QualifiedContribOther />
      <RealEstateResidential />
      <RealEstateCommercial />
      <RealEstateOther />
      <Collectibles />
      <FoodInventory />
      <DrugsAndMedicalSupplies />
      <Taxidermy />
      <HistoricalArtifacts />
      <ScientificSpecimens />
      <ArchaeologicalArtifacts />
      <OtherNonCashContributionsTable>
        <NonCashCheckbox>X</NonCashCheckbox>
        <Description>Toys, stuffed animals, books and electronics</Description>
        <NumberOfContributions>456</NumberOfContributions>
        <NoncashContribsRptdF990>10031</NoncashContribsRptdF990>
        <MethodOfDeterminingRevenues>Cost Donated Propert</MethodOfDeterminingRevenues>
      </OtherNonCashContributionsTable>
      <OtherNonCashContributionsTable>
        <NonCashCheckbox>X</NonCashCheckbox>
        <Description>Hosting/sponsoring events</Description>
        <NumberOfContributions>1113</NumberOfContributions>
        <NoncashContribsRptdF990>28015</NoncashContribsRptdF990>
        <MethodOfDeterminingRevenues>Cost Donated Propert</MethodOfDeterminingRevenues>
      </OtherNonCashContributionsTable>
      <OtherNonCashContributionsTable>
        <NonCashCheckbox>X</NonCashCheckbox>
        <Description>Gift cards, coupons, etc.</Description>
        <NumberOfContributions>115</NumberOfContributions>
        <NoncashContribsRptdF990>6500</NoncashContribsRptdF990>
        <MethodOfDeterminingRevenues>Cost Donated Propert</MethodOfDeterminingRevenues>
      </OtherNonCashContributionsTable>
      <AnyPropertyThatMustBeHeld>false</AnyPropertyThatMustBeHeld>
      <ReviewProcessUnusualNCGifts>false</ReviewProcessUnusualNCGifts>
      <ThirdPartiesUsed>false</ThirdPartiesUsed>
      <Form990ScheduleMPartII>
        <Identifier>GIFT ACCEPTANCE AND REVIEW</Identifier>
        <ReturnReference>Sch. M, Question 31</ReturnReference>
        <Explanation>Memorial Health Foundation has a written process for review of all gifts, it does not speak specifically to non-standard gifts, however there is a review process in place.</Explanation>
      </Form990ScheduleMPartII>
    </IRS990ScheduleM>
    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>EMPLOYEES OF THE ORGANIZATION</Identifier>
        <ReturnReference>Core Form, Part V, Question 1a &amp; 2a</ReturnReference>
        <Explanation>Employees are paid by Memorial Health System, Inc.(EIN 35-1536132) and expensed to Memorial Health Foundation through contract labor. Memorial Health System, Inc. issues all W-2s and 1099s.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN GOVERNING DOCUMENTS</Identifier>
        <ReturnReference>Core Form, Part VI, Section A, Question 4</ReturnReference>
        <Explanation>THE ARTICLES OF INCORPORATION AND BYLAWS WERE CHANGED TO HAVE BEACON HEALTH SYSTEM, INC. BECOME THE SOLE CORPORATE MEMBER.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>MEMBERS OF THE ORGANIZATION</Identifier>
        <ReturnReference>Core Form, Part VI, Section A, Question 6</ReturnReference>
        <Explanation>Membership in the Corporation shall be divided into two classes: Corporate and Personal. The Corporate Member shall be the Beacon Health System, Inc. The Personal Members shall be the directors of the Corporation.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ELECTION OF BOARD MEMBERS</Identifier>
        <ReturnReference>Core Form, Part VI, Section A, Question 7a</ReturnReference>
        <Explanation>The Corporate Member shall appoint the Board of Directors of the Corporation and shall have such powers of advance approval regarding Corporate actions as are delineated in the By-laws of the Corporation.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>DECISIONS OF THE BOARD OF DIRECTORS</Identifier>
        <ReturnReference>Core Form, Part VI, Section A, Question 7b</ReturnReference>
        <Explanation>Decisions of the Board of Directors must be approved by the Corporate Member.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>REVIEW PROCESS</Identifier>
        <ReturnReference>Core Form, Part VI, Section B, Line 11B</ReturnReference>
        <Explanation>The organization incorporates numerous parties in the production and review of the Form 990 and associated schedules. Senior accounting staff and management complete the Form 990 and schedules. The forms and schedules are reviewed by the Controller and CFO. Subsequent to those steps, the organization engaged Ernst &amp; Young to review the completed Form 990 and appropriate schedules. Prior to filing the return, the compensation committee of the organization and the CEO conduct a general overview of the form 990, including applicable compensation schedules. In addition, the Board of Directors and the audit committee receive a copy of the Form 990 prior to filing.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CONFLICT OF INTEREST STATEMENTS</Identifier>
        <ReturnReference>Core Form, Part VI, Section B, Line 12c</ReturnReference>
        <Explanation>THERE ARE THREE SEPARATE FORMS THAT ARE SENT OUT THROUGH THE INTERNAL AUDIT DEPARTMENT TO KEY EMPLOYEES OR BOARD MEMBERS REGARDING CONFLICT OF INTEREST. THEY ARE AS FOLLOWS: 1. THE FIRST IS A CONFLICT OF INTEREST STATEMENT THAT IS SENT TO SENIOR LEVEL ADMINISTRATION, MANAGEMENT, AND SELECT STAFF SUCH AS PURCHASING DEPARTMENT EMPLOYEES. THE PURPOSE OF THE STATEMENT IS TO REQUIRE THESE EMPLOYEES TO DISCLOSE ANY POTENTIAL CONFLICT OF INTERESTS THEY MAY HAVE. THE STATEMENTS ARE SENT IN JANUARY OF EACH YEAR for the previous year activities WE PURSUE THE REPLIES TO GET A 100% RESPONSE RATE. IN THE CURRENT YEAR WE SENT OUT OVER 250 STATEMENTS AND DID ACHIEVE A 100% RESPONSE RATE. EACH RESPONSE IS REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT AND THE RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AS WELL AS THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. It should be noted that in 2012 the Conflict of Interest Statement were not sent to Elkhart General Hospital Employees but will be sent for the calendar year 2013 in January, 2014. 2. THE SECOND STATEMENT IS THE BOARD DUALITY OF INTEREST STATEMENT THAT is SENT TO CURRENT BOARD MEMBERS, FORMER BOARD MEMBERS FROM THE LAST FIVE YEARS, and OTHER KEY EMPLOYEES. THE DUALITY OF INTEREST STATEMENT is sent using a web based survey tool provided by Ernst &amp; Young. THE REPLIES ARE REVIEWED BY THE DIRECTOR OF INTERNAL AUDIT. THE RESULTS of the surveys are summarized using the web based tool, and are reviewed by Ernst &amp; Young in completing the 990. The RESULTS ARE REPORTED TO THE CEO OF Beacon Health System, the Audit Committee Chairman, AND THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS. 3. THE THIRD STATEMENT IS ENTITLED "CODE OF ETHICS FOR SENIOR FINANCIAL OFFICERS". THE STATEMENT REQUIRES AN ACKNOWLEDGEMENT FORM TO BE SIGNED BY Beacon Health System's KEY FINANCIAL EMPLOYEES THAT Beacon's FINANCIAL INFORMATION IS TO THE BEST OF THEIR KNOWLEDGE TRUE AND ACCURATE. THIS STATEMENT WAS SENT OUT IN EARLY JANUARY, 2013 AND THE SIGNED ACKNOWLEDGEMENTS ARE KEPT BY THE DIRECTOR OF INTERNAL AUDIT. IN 2013, Seventeen DESIGNATED EMPLOYEES WERE REQUESTED TO SIGN THE FORM AND WE HAD A 100% COMPLIANCE RATE. ANY POTENTIAL CONFLICTS OF INTERESTS ARE REVIEWED BY INDEPENDENT PARTIES BOTH INTERNAL AND EXTERNAL TO THE ORGANIZATION, AND IF NECESSARY, CORRECTIVE ACTION WOULD BE TAKEN TO RESOLVE A TRUE CONFLICT. THE INDIVIDUAL WITH THE POTENTIAL CONFLICT OF INTEREST IS would be EXCLUDED FROM ALL REVIEW PROCEEDINGS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMPENSATION REVIEW</Identifier>
        <ReturnReference>Core Form, Part VI, Line 15a &amp; 15b</ReturnReference>
        <Explanation>Beacon Health System, Inc. has an extensive examination that is conducted,for Vice President and higher, using comparable market data and that is then reviewed by an independant consultant hired by, and reporting to, the Board of Directors. Recommendations are presented to the Board for deliberation and final decision. Deliberation and final decision are performed by the independent members of the Board. Vice President and higher compensation is determined after an extensive examination is conducted using comparable market data and then reviewed by an independent consultant hired by, and reporting to, the Board of Directors. Recommendations are presented to the Compensation Committee of the Beacon Health System, Inc. Board for deliberation and final decision. Deliberation and final decision are performed by the independent members of the Board.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>AVAILABILITY OF GOVERNING DOCUMENTS</Identifier>
        <ReturnReference>Core Form 990, Part VI, Section C, Line 19</ReturnReference>
        <Explanation>The governing documents and conflict of interest policy are not made available to the public. The financial statements are distributed quarterly to the Electronic Municipal Market Access (EMMA) website as part of the continuing disclosures for the Memorial Health System, Inc. bonds.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>PY RECLASS OF ALTERNATIVE INVESTMENTS</Identifier>
        <ReturnReference>Core Form, Part X, Lines 11 &amp; 12</ReturnReference>
        <Explanation>Prior year alternative investments were reclassed from line 11 to line 12 to be consistent with current year presentation.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGE IN FUND BALANCE</Identifier>
        <ReturnReference>Core Form, Part XI, Line 5</ReturnReference>
        <Explanation>Other changes in fund balance: Writeoff of Intercompany MHS $831,954 Writeoff of Intercompany MHSB (22,393) Change in Grube Trust 77,573 Total $887,134</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>BUSINESS RELATIONSHIPS</Identifier>
        <ReturnReference>Form 990, Schedule L, Part IV</ReturnReference>
        <Explanation>John Phair is president of Holladay Properties from which Memorial Health Foundation, Inc. rents property for values less than the reporting thresholds for Schedule L.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>615 N Michigan St</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
          <ZIPCode>46601</ZIPCode>
        </AddressUS>
        <EIN>351536132</EIN>
        <PrimaryActivities>Corp Services</PrimaryActivities>
        <LegalDomicileState>IN</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>9</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>BEACON</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>Memorial Hospital of South Bend Inc</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>615 N Michigan St</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
          <ZIPCode>46601</ZIPCode>
        </AddressUS>
        <EIN>350868132</EIN>
        <PrimaryActivities>Hospital</PrimaryActivities>
        <LegalDomicileState>IN</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>BEACON</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>ELKHART GENERAL HOSPITAL INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 EAST BOULEVARD</AddressLine1>
          <City>ELKHART</City>
          <State>IN</State>
          <ZIPCode>46514</ZIPCode>
        </AddressUS>
        <EIN>350877574</EIN>
        <PrimaryActivities>HOSPITAL</PrimaryActivities>
        <LegalDomicileState>IN</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>BEACON</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>BEACON HEALTH SYSTEM INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>600 EAST BOULEVARD</AddressLine1>
          <City>ELKHART</City>
          <State>IN</State>
          <ZIPCode>46514</ZIPCode>
        </AddressUS>
        <EIN>453864076</EIN>
        <PrimaryActivities>Parent Org</PrimaryActivities>
        <LegalDomicileState>IN</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>11C III-FI</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>false</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>MEMORIAL ENDOWMENT FUND FOR MEM HOSP</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>PO BOX 1602</AddressLine1>
          <City>SOUTH BEND</City>
          <State>IN</State>
          <ZIPCode>46634</ZIPCode>
        </AddressUS>
        <EIN>356068581</EIN>
        <PrimaryActivities>ENDOWMENT</PrimaryActivities>
        <LegalDomicileState>IN</LegalDomicileState>
        <ExemptCodeSection>501(c)(3)</ExemptCodeSection>
        <PublicCharityStatus>11D III-O</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>MEM HOSPITAL</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>Beacon Health Ventures Inc</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>615 N Michigan St</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
          <ZIPCode>46601</ZIPCode>
        </AddressUS>
        <EIN>351901068</EIN>
        <PrimaryActivity>Home Medical</PrimaryActivity>
        <LegalDomicileState>IN</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>Beacon Health Ventures Michigan Inc</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>615 N Michigan St</AddressLine1>
          <City>South Bend</City>
          <State>IN</State>
          <ZIPCode>46601</ZIPCode>
        </AddressUS>
        <EIN>208259773</EIN>
        <PrimaryActivity>HOME MEDICAL</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C</TypeOfEntity>
      </Form990ScheduleRPartIV>
      <ReceiptOfIntAnnRentsRoyalties>false</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>true</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>true</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>true</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>true</SharingOfFacilities>
      <SharingOfPaidEmployees>false</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>true</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>true</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>true</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>true</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>831951</AmountInvolved>
        <MethodOfAmtDetermination>ACCT ACTIVITY</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>B</TransactionType>
        <AmountInvolved>215681</AmountInvolved>
        <MethodOfAmtDetermination>CASH TRANSFER</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Hospital of South Bend Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>B</TransactionType>
        <AmountInvolved>694548</AmountInvolved>
        <MethodOfAmtDetermination>CASH TRANSFER</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>M</TransactionType>
        <AmountInvolved>286116</AmountInvolved>
        <MethodOfAmtDetermination>ACCT ACTIVITY</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>464928</AmountInvolved>
        <MethodOfAmtDetermination>PAYROLL</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>1167360</AmountInvolved>
        <MethodOfAmtDetermination>ACCT ACTIVITY</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>182500</AmountInvolved>
        <MethodOfAmtDetermination>CASH TRANSFER</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Hospital of South Bend Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>R</TransactionType>
        <AmountInvolved>57559</AmountInvolved>
        <MethodOfAmtDetermination>CASH TRANSFER</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Memorial Health System Inc</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>S</TransactionType>
        <AmountInvolved>1167360</AmountInvolved>
        <MethodOfAmtDetermination>ACCT ACTIVY</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>