ASHLAND HOSPITAL CORPORATION: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: ASHLAND HOSPITAL CORPORATION (EIN 61-0444716)
Tax period: 2011-10-01 to 2012-09-30
Filed: 2013-08-14
IRS object ID: 201332269349303308
Schema version: 2011v1.5
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule A
Schedule B
Schedule C
Schedule D
Schedule H
Schedule I
Schedule J
Schedule K
Schedule L
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2013-08-14T15:07:38-05:00	Timestamp
Tax Period End Date	2012-09-30	TaxPeriodEndDate

Preparer Firm PreparerFirm

Field	Value	IRS element (for citing)
EIN	232932984	EIN

Preparer Firm Business Name PreparerFirmBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	PARENTEBEARD LLC	BusinessNameLine1

Preparer Firm US Address PreparerFirmUSAddress

Field	Value	IRS element (for citing)
Address Line1	1650 MARKET STREET SUITE 4500	AddressLine1
City	PHILADELPHIA	City
State	PA	State
ZIP Code	19103	ZIPCode

Field	Value	IRS element (for citing)
Return Type	990	ReturnType
Tax Period Begin Date	2011-10-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	610444716	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	ASHLAND HOSPITAL CORPORATION	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	ASHL	NameControl
Phone	6064084000	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	2201 LEXINGTON AVENUE	AddressLine1
City	ASHLAND	City
State	KY	State
ZIP Code	41101	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	JEFFREY TREASURE	Name
Title	VICE PRESIDENT/CFO	Title
Phone	6064084000	Phone
Date Signed	2013-08-13	DateSigned
Authorize Third Party	1	AuthorizeThirdParty

Preparer Preparer

Field	Value	IRS element (for citing)
Name	JULIUS C GREEN CPA JD	Name
PTIN	P00350393	PTIN
Phone	2159722352	Phone

Field	Value	IRS element (for citing)
Tax Year	2011	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Doing Business As DoingBusinessAs

Field	Value	IRS element (for citing)
Business Name Line1	KING'S DAUGHTERS MEDICAL CENTER	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Of Principal Officer Person	FRED L JACKSON	NameOfPrincipalOfficerPerson

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	2201 LEXINGTON AVENUE	AddressLine1
City	ASHLAND	City
State	KY	State
ZIP Code	41101	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	556665064	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	WWW.KDMC.COM	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1941	YearFormation
State Legal Domicile	KY	StateLegalDomicile
Activity Or Mission Description	TO PROVIDE COMMUNITY HEALTHCARE SERVICES. TO CARE. TO SERVE. TO HEAL.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	13	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	7	NbrIndependentVotingMembers
Total Nbr Employees	3941	TotalNbrEmployees
Total Nbr Volunteers	324	TotalNbrVolunteers
Total Gross UBI	176722	TotalGrossUBI
Net Unrelated Business Txbl Income	0	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	203811	ContributionsGrantsPriorYear
Contributions Grants Current Year	291132	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	534999548	ProgramServiceRevenuePriorYear
Program Service Revenue CY	541522680	ProgramServiceRevenueCY
Investment Income Prior Year	12986750	InvestmentIncomePriorYear
Investment Income Current Year	8154919	InvestmentIncomeCurrentYear
Other Revenue Prior Year	3663228	OtherRevenuePriorYear
Other Revenue Current Year	3480867	OtherRevenueCurrentYear
Total Revenue Prior Year	551853337	TotalRevenuePriorYear
Total Revenue Current Year	553449598	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	113452	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	57393	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	217826537	SalariesEtcPriorYear
Salaries Etc Current Year	238475540	SalariesEtcCurrentYear
Total Prof Fundrsng Exp Prior Year	0	TotalProfFundrsngExpPriorYear
Total Prof Fundrsng Exp CY	0	TotalProfFundrsngExpCY
Total Fundrsng Exp Current Year	0	TotalFundrsngExpCurrentYear
Other Expense Prior Year	295821871	OtherExpensePriorYear
Other Expenses Current Year	278657127	OtherExpensesCurrentYear
Total Expenses Prior Year	513761860	TotalExpensesPriorYear
Total Expenses Current Year	517190060	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	38091477	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	36259538	RevenuesLessExpensesCY
Total Assets BOY	789113026	TotalAssetsBOY
Total Assets EOY	835789288	TotalAssetsEOY
Total Liabilities BOY	394922121	TotalLiabilitiesBOY
Total Liabilities EOY	395652723	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	394190905	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	440136565	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	TO CARE. TO SERVE. TO HEAL.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	449342447	Expense
Grants	57393	Grants
Revenue	541444768	Revenue
Description	COMMUNITY INFORMATION:KING'S DAUGHTERS IS NESTLED IN THE FOOTHILLS OF THE APPALACHIAN MOUNTAINS, WHERE THE KENTUCKY, OHIO, AND WEST VIRGINIA STATE LINES MEET. KDMC'S PRIMARY SERVICE AREA ENCOMPASSES FIVE COUNTIES IN TWO STATES, BOYD, CARTER, AND GREENUP COUNTIES IN KENTUCKY AND LAWRENCE AND SCIOTO COUNTIES IN OHIO. MORE THAN 253,000 PEOPLE (U.S. CENSUS BUREAU) LIVE IN THE FIVE-COUNTY PRIMARY SERVICE AREA. WITH THE EXCEPTION OF TWO CITIES WITH POPULATIONS AROUND 20,000 THE AREA IS VERY RURAL, COVERING NEARLY 2,000 SQUARE MILES WITH A POPULATION DENSITY OF 126 PEOPLE PER SQUARE MILE. MORE THAN 18% OF THE POPULATION LIVES IN POVERTY, WITH CHILDREN IN POVERTY AT MORE THAN 25%. THE POPULATION IS 97% WHITE, 2% BLACK AND ALL OTHER RACES 1%. THE AVERAGE MEDIAN INCOME IS $37,724, WELL BELOW THE LEVELS FOR KENTUCKY, OHIO AND THE NATION. AVERAGE UNEMPLOYMENT IS 10.3% COMPARED TO 7.7% NATIONALLY AND 8.0% FOR KENTUCKY. THE KENTUCKY BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM SHOWS THAT IN 2008, IN KDMC'S KENTUCKY MARKET AREA, 18.9% OF THOSE AGED 19-64 YEARS LACKED ANY FORM OF HEALTHCARE COVERAGE, COMPARED TO 14.4% FOR THE STATE AND 14.5% FOR THE NATION. KDMC'S OHIO MARKET AREA SHOWS 17.4% WITHOUT HEALTHCARE COVERAGE COMPARED TO 12.5% IN THE STATE AND 14.5% IN THE NATION.COMMUNITY BUILDING ACTIVITIES:TO REACH OUR COMMUNITIES AND TO PROVIDE THE BEST OUTREACH SERVICES POSSIBLE, WE PARTNERED WITH A DIVERSE GROUP OF BOTH PUBLIC AND PRIVATE ENTITIES. WE HAVE ESTABLISHED PARTNERSHIPS WITH AREA RETAILERS, HEALTH DEPARTMENTS, FACTORIES AND CHEMICAL PLANTS, CITY OF ASHLAND, LOCAL EMS SERVICES, AMERICAN RED CROSS, SUSAN G. KOMEN FOR THE CURE, FOUNDATION FOR A HEALTHY KENTUCKY, CARES (LOCAL REFERRAL AGENCY), COMMUNITY KITCHEN, SAFE HARBOR, 16 SCHOOL DISTRICTS AND NEARBY COLLEGES AND UNIVERSITIES, NAACP, ASHLAND FAIR HOUSING, SHELTER OF HOPE, ASHLAND AREA YMCA, KENTUCKY STATE POLICE, OHIO HIGHWAY PATROL, AREA SENIOR CENTERS AND MORE THAN 150 CHURCHES. WE SEND OUR HEALTH TEAMS OUT INTO THE COMMUNITY TO MEET PEOPLE ON THEIR TIME AND IN THE PLACES THAT ARE COMFORTABLE FOR THEM - SCHOOLS, MALLS, LIBRARIES, WORKSITES, GROCERY STORES AND MORE. SERVICES PROVIDED INCLUDE MORE THAN 75 SCREENING AND EDUCATIONAL EVENTS PER MONTH, MOBILE HEALTH SERVICES, COORDINATION OF THE CPR TRAINING CENTER, AND A MEALS ON WHEELS PROGRAM. PATIENTS WITH ABNORMAL RESULTS FROM OUR HEALTH SCREENINGS RECEIVE A FOLLOW-UP LETTER REMINDING THEM OF THE IMPORTANCE OF SHARING THE RESULTS WITH THEIR HEALTHCARE PROVIDER. IDENTIFYING THOSE AT RISK FOR HEART AND VASCULAR DISEASE, EDUCATING THE PUBLIC ABOUT HEART ATTACK AND STROKE SIGNS AND SYMPTOMS, AND REDUCING TOBACCO USE THROUGHOUT THE REGION ARE THREE IMPORTANT AREAS OF FOCUS. OUR REGION HAS A HIGH INCIDENCE OF UNDIAGNOSED OR UNTREATED HEART AND VASCULAR DISEASE. HEALTH CONNECTIONS CONTINUES TO EXPAND SERVICES BY OFFERING FREE COMPREHENSIVE HEALTHY HEART SCREENINGS TO HIGH RISK POPULATIONS. THIS SCREENING INCLUDES TOTAL CHOLESTEROL, BLOOD PRESSURE, BLOOD SUGAR AND AN EKG. WE ARE RAISING AWARENESS ABOUT THE CARDIOVASCULAR RISKS AND CATCHING DISEASE THAT HAD NOT BEEN DIAGNOSED SO IT CAN BE TREATED. WE ARE MAKING SURE THE PARTICIPANTS KNOW THEIR HEART RISK NUMBERS. OUR HEART SCREENINGS PROVIDED 6,769 BLOOD PRESSURE (41% ABNORMAL), 6,304 BLOOD SUGAR (10% ABNORMAL) AND 6,275 TOTAL CHOLESTEROL (44% ABNORMAL) SCREENINGS IN 2012. THESE SCREENINGS HAD MORE THAN 3,500 PARTICIPANTS. OTHER INFORMATION:WITH THE EXCEPTION OF TWO CITIES WITH A POPULATION AROUND 20,000, KDMC'S MARKET AREA IS VERY RURAL COVERING NEARLY 2,000 SQUARE MILES WITH A POPULATION DENSITY OF 126 PEOPLE PER SQUARE MILE. BARRIERS TO HEALTHCARE INCLUDE LACK OF TRANSPORTATION, LOW HEALTH LITERACY AND GEOGRAPHIC ISOLATION. IN ADDITION THERE ARE CULTURAL BARRIERS INCLUDING A DISTRUST OF HEALTHCARE PROVIDERS WHICH IMPACTS HEALTH AND HEALTH-RELATED COMMUNICATION. KING'S DAUGHTERS TAKES AN ACTIVE ROLE IN RECRUITING AND RETAINING PHYSICIANS IN THESE RURAL, UNDERSERVED AREAS. EFFORTS ARE MADE TO INTEGRATE THE PHYSICIAN INTO THE NETWORK OF THE COMMUNITY THROUGH FREE SCREENINGS, SPEAKING PRESENTATIONS AND ATTENDANCE AT COMMUNITY EVENTS THUS BUILDING TRUST AND POSITIVE RELATIONSHIPS. FAMILIES THAT LIVE OUTSIDE OUR COMMUNITY WITH LIMITED RESOURCES (FINANCIAL, TRANSPORTATION, FAMILY SUPPORT) WHO HAVE A LOVED ONE IN CRITICAL CARE ARE REFERRED BY KDMC SOCIAL WORKERS TO THE KDMC HOSPITALITY HOUSE. GUESTS OF THE HOSPITALITY HOUSE INCLUDE ADULT FAMILY MEMBERS OR CAREGIVERS OF EITHER CRITICALLY ILL PATIENTS RECEIVING CARE AT KDMC, OR QUALIFYING OUTPATIENTS RECEIVING EXTENDED THERAPEUTIC CARE. IN NEARLY ALL CASES, GUESTS LIVE OUTSIDE A 30-MILE RADIUS OF ASHLAND. THE HOUSE DOES NOT CHARGE FAMILIES TO STAY, HOWEVER A NUMBER OF THE GUESTS MAKE A VOLUNTARY CONTRIBUTION. FAMILY CARE CENTERS PROVIDE SAMPLE MEDICATIONS TO INDIGENT PATIENTS. THIS PROGRAM IS PROVIDED AT NO COST TO THE PATIENT. FAMILY CARE CENTER STAFF RECORDS THE MEDICATIONS, LABEL FOR USE AND DOCUMENT THE DISTRIBUTION. THE TOBACCO CESSATION PROGRAM AND LUNG HEALTH PROGRAM OFFER SUPPORT THROUGH TOBACCO CESSATION CLASSES AND ASSISTANCE TO PATIENTS DIAGNOSED WITH LUNG CANCER AT KDMC. THE LUNG HEALTH PROGRAM INCLUDES A CLINICAL NURSE SPECIALIST WHO PROVIDES PATIENT NAVIGATION FOR NEWLY DIAGNOSED LUNG CANCER PATIENTS. THE PROGRAM INCLUDES TWO LUNG HEALTH ADVOCATES THAT PROVIDE TOBACCO CESSATION COUNSELING AND CLASSES. DURING THE FISCAL YEAR, KDMC PROVIDED 2,000 FREE FLU SHOTS THROUGHOUT THE COMMUNITY. WITH THE FLU SHOT PROGRAM, WE STRIVE TO REACH POPULATIONS THAT ARE AT HIGHER RISK OF CONTRACTING THE FLU. TARGETED POPULATIONS INCLUDE THOSE DESIGNATED HIGH RISK BY THE CENTER FOR DISEASE CONTROL, CAREGIVERS OF VULNERABLE POPULATIONS INCLUDING HOMELESS, INDIGENT, SCHOOL TEACHERS, DAY CARE WORKERS, AND CAREGIVERS FOR THE ELDERLY. FLU SHOTS ARE DELIVERED THROUGH A VARIETY OF SETTINGS AND IN MULTIPLE COUNTIES SERVED BY THE MEDICAL CENTER. THE PASTORAL CARE SERVICE DEPARTMENT EMPLOYS ONE PART-TIME AND TWO FULL-TIME CHAPLAINS TO PROVIDE SPIRITUAL AND EMOTIONAL SUPPORT FOR OUR PATIENTS, THEIR FAMILIES AND FRIENDS AND FOR THE STAFF OF KING'S DAUGHTERS MEDICAL CENTER. ONE-ON-ONE COUNSELING AS WELL AS GROUP COUNSELING, WHICH INCLUDES GRIEF SUPPORT AND PALLIATIVE CARE FOR END-OF-LIFE PATIENTS AND THEIR FAMILIES, IS OFFERED BY THE DEPARTMENT.AFFILIATED HEALTH CARE SYSTEM ROLES:KING'S DAUGHTERS MEDICAL CENTER IS PART OF AN AFFILIATED HEALTH CARE DELIVERY SYSTEM. THE SYSTEM PROVIDES PHYSICIAN SERVICES THROUGH TWO AFFILIATES, KENTUCKY HEART INSTITUTE AND KING'S DAUGHTERS MEDICAL SPECIALTIES. BOTH AFFILIATES PROVIDE CHARITY CARE AND PARTICIPATE IN GOVERNMENT PROGRAMS.	Description
Total Program Service Expense	449342447	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	1	LobbyingActivities
Subject To Proxy Tax	0	SubjectToProxyTax
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	0	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	0	ReportInvestOthSecurities
Report Prog Rel Invest	0	ReportProgRelInvest
Report Other Assets	1	ReportOtherAssets
Report Other Liabilities	1	ReportOtherLiabilities
Report Fin48 Footnote	1	ReportFin48Footnote
Independent Audit Financial Stmt	0	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	1	ConsolidatedAuditFinancialStmt
School	0	School
Foreign Office	0	ForeignOffice
Foreign Activities	0	ForeignActivities
More Than5000 K To Organizations	0	MoreThan5000KToOrganizations
More Than5000 K To Individuals	0	MoreThan5000KToIndividuals
Professional Fundraising	0	ProfessionalFundraising
Fundraising Activities	0	FundraisingActivities
Gaming	0	Gaming
Hospital	1	Hospital
Financial Stmt Attached	1	FinancialStmtAttached
Grants To Organizations	1	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	1	TaxExemptBonds
Invest Tax Exempt Bonds	0	InvestTaxExemptBonds
Escrow Account	0	EscrowAccount
On Behalf Of Issuer	0	OnBehalfOfIssuer
Excess Benefit Transaction	0	ExcessBenefitTransaction
Prior Excess Benefit Transaction	0	PriorExcessBenefitTransaction
Loan To Officer Or DQP	0	LoanToOfficerOrDQP
Grant To Related Person	0	GrantToRelatedPerson
Bsnss Rltnshp With Organization	0	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	1	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	1	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	0	DeductibleNonCashContributions
Deductible Contributions Of Art	0	DeductibleContributionsOfArt
Terminated	0	Terminated
Partial Liquidation	0	PartialLiquidation
Disregarded Entity	0	DisregardedEntity
Related Entity	1	RelatedEntity
Related Org Controlled Entity	1	RelatedOrgControlledEntity
Transaction Related Entity	1	TransactionRelatedEntity
Transfers To Exempt Non Chrtbl Org	0	TransfersToExemptNonChrtblOrg
Activities Conducted Partnership	0	ActivitiesConductedPartnership
Schedule O Required	1	ScheduleORequired
Number Forms Transmitted With1096	423	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	3941	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	1	UnrelatedBusinessIncome
Form990-T Filed	1	Form990-TFiled
Foreign Financial Account	0	ForeignFinancialAccount
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTrans
Taxable Party Notification	0	TaxablePartyNotification
Non Deductible Contributions	0	NonDeductibleContributions
Quid Pro Quo Contributions	0	QuidProQuoContributions
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOf
Funds To Pay Premiums	0	FundsToPayPremiums
Premiums Paid	0	PremiumsPaid
Indoor Tanning Services	0	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	13	NbrVotingGoverningBodyMembers
Number Independent Voting Members	7	NumberIndependentVotingMembers
Family Or Business Relationship	0	FamilyOrBusinessRelationship
Delegation Of Management Duties	0	DelegationOfManagementDuties
Changes To Organizing Docs	1	ChangesToOrganizingDocs
Material Diversion Or Misuse	0	MaterialDiversionOrMisuse
Members Or Stockholders	1	MembersOrStockholders
Election Of Board Members	0	ElectionOfBoardMembers
Decisions Subject To Approval	1	DecisionsSubjectToApproval
Minutes Of Governing Body	1	MinutesOfGoverningBody
Minutes Of Committees	1	MinutesOfCommittees
Officer Mailing Address	0	OfficerMailingAddress
Local Chapters	0	LocalChapters
Form990 Provided To Governing Body	1	Form990ProvidedToGoverningBody
Conflict Of Interest Policy	1	ConflictOfInterestPolicy
Annual Disclosure Covered Persons	1	AnnualDisclosureCoveredPersons
Regular Monitoring Enforcement	1	RegularMonitoringEnforcement
Whistleblower Policy	1	WhistleblowerPolicy
Document Retention Policy	1	DocumentRetentionPolicy
Compensation Process CEO	1	CompensationProcessCEO
Compensation Process Other	1	CompensationProcessOther
Investment In Joint Venture	0	InvestmentInJointVenture
States Where Copy Of Return Is Filed	KY	StatesWhereCopyOfReturnIsFiled
Upon Request	X	UponRequest

The Books Are In Care Of TheBooksAreInCareOf

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	AUTUMN MCFANN CONTROLLER	BusinessNameLine1

Field	Value	IRS element (for citing)
Telephone Number	6064084000	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	2201 LEXINGTON AVENUE	AddressLine1
City	ASHLAND	City
State	KY	State
ZIP Code	41101	ZIPCode

Field	Value	IRS element (for citing)
Info In Schedule O Part VII	X	InfoInScheduleOPartVII

Form990 Part VII Section A Form990PartVIISectionA (26 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Individual Trustee Or DirectorIndividualTrusteeOrDirector	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	OfficerOfficer	Key EmployeeKeyEmployee	Highest Compensated EmployeeHighestCompensatedEmployee	FormerFormer
ADDINGTON STEPHEN
DIRECTOR	0.30	X	0	0	0
BLAIR JACK
DIRECTOR	0.30	X	0	0	0
BORDERS CHARLIE
DIRECTOR	0.30	X	0	0	0
BURNETTE TOM
DIRECTOR	0.30	X	0	0	0
CANTRELL JIM
DIRECTOR	0.30	X	0	0	0
CASSIDY DAN
DIRECTOR	0.30	X	0	0	0
HAMMONDS DONALD DO
DIRECTOR	0.30	X	0	88763	2779
HILLMAN TRACY
DIRECTOR	0.30	X	0	0	0
KRIVCHENIA ALEXANDER MD
DIRECTOR	1.30	X	11000	0	0
MECCA RAYMOND MD
DIRECTOR, COMMITTEE CHAIRMAN	0.50	X	1000	0	0
STEWART JOHN
DIRECTOR	0.30	X	0	0	0
JONES DAVID
CHAIRMAN	1.00	X	0	0	0	X
JACKSON FRED
PRESIDENT/CEO	40.00	X	1015643	0	514275	X
MCDOWELL PAUL
TREASURER, VP/CFO	40.00		509198	0	30654	X
MAHANEY SHERYL
SECRETARY, VP/CHIEF LEGAL/REG OFFICER	40.00		388920	0	126640	X
FIORET PHILIP MD
VP/CMO	40.00		765008	0	210477		X
HIGGINS LARRY
VP/CHIEF HR OFFICER	40.00		447689	0	172435		X
WHITLATCH KRISTIE
VP/COO	40.00		483240	0	170743		X
BELL JULIE MD
PHYSICIAN	40.00		467320	0	30007			X
GOUZD VALERIE MD
PHYSICIAN	40.00		480176	0	27624			X
GUIAB ROBIN MD
PHYSICIAN	40.00		500215	0	37409			X
SHARP WENDY MD
PHYSICIAN	40.00		493583	0	20349			X
WOODRUFF ALEXIS M
PHYSICIAN	40.00		505723	0	638			X
CORBITT PATRICIA
FORMER VP/MARKETING & COMM. RELATIONS	0.00		161011	0	10508				X
BAILIFF ROBERT
FORMER PHYSICIAN	0.00		334183	0	14527				X
SMITH PAUL
FORMER PHYSICIAN	0.00		346630	0	5007				X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	6910539	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	88763	TotalReportableCompFrmRltdOrgs
Total Other Compensation	1374072	TotalOtherCompensation
Number Individuals GT100 K	150	NumberIndividualsGT100K
Formers Listed	1	FormersListed
Total Comp GT150 K	1	TotalCompGT150K
Compensation From Other Sources	0	CompensationFromOtherSources

Contractor Compensation ContractorCompensation (5 entries)

Address Line1AddressOfContractor/AddressUS/AddressLine1	CityAddressOfContractor/AddressUS/City	StateAddressOfContractor/AddressUS/State	ZIP CodeAddressOfContractor/AddressUS/ZIPCode	Description Of ServicesDescriptionOfServices	CompensationCompensation
DELOITTE CONSULTING LLP
POBOX 7247-6447	PHILADELPHIA	PA	191706447	CONSULTANTS	3026357
STITES & HARBISON PLLC
250 W MAIN ST 2300 LEXINGTON FINAN	LEXINGTON	KY	405071758	LAWYERS	1758412
TRI-STATE RADIOLOGY ASSOCIATES
POBOX 2617	ASHLAND	KY	411052617	RADIOLOGISTS	1239646
SPECIALTYCARE CARDIOVASCULAR RESOURCES
DEPT 1614 PO BOX 11407	BIRMINGHAM	AL	352461614	PERFUSIONISTS	1088916
TOPPING'S COMMERCIAL SERVICES
1605 BELLEFONTE ROAD	FLATWOODS	KY	41139	JANITORIAL, REMODELING, & MOVING SERVICE	893133

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	57	NumberOfContractorsGT100K
Related Organizations	8942	RelatedOrganizations
All Other Contributions	282190	AllOtherContributions
Noncash Contributions	10942	NoncashContributions
Total Contributions	291132	TotalContributions

Program Service Revenue ProgramServiceRevenue (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue
NET PATIENT SERVICE RE	621110	530894361	530894361
PHARMACY	446110	6430924	6353012	77912
MEANINGFUL USE REVENUE	621110	4197395	4197395

Field	Value	IRS element (for citing)
Total Program Service Revenue	541522680	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	8141630	TotalRevenueColumn
Unrelated Business Revenue	15265	UnrelatedBusinessRevenue
Exclusion	$8,126,365	ExclusionAmount

Gross Rents GrossRents

Field	Value	IRS element (for citing)
Real	1992724	Real
Personal	3150	Personal

Less Rental Expenses LessRentalExpenses

Field	Value	IRS element (for citing)
Real	964835	Real
Personal	5040	Personal

Rental Income Or Loss RentalIncomeOrLoss

Field	Value	IRS element (for citing)
Real	1027889	Real
Personal	-1890	Personal

Net Rental Income Or Loss NetRentalIncomeOrLoss

Field	Value	IRS element (for citing)
Total Revenue Column	1025999	TotalRevenueColumn
Unrelated Business Revenue	-1890	UnrelatedBusinessRevenue
Exclusion	$1,027,889	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Securities	2165720	Securities
Other	93160	Other

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Securities	2196761	Securities
Other	48830	Other

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Securities	-31041	Securities
Other	44330	Other

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	13289	TotalRevenueColumn
Exclusion	$13,289	ExclusionAmount

Other Revenue Misc OtherRevenueMisc (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Unrelated Business RevenueUnrelatedBusinessRevenue	ExclusionExclusionAmount
CAFETERIA	722210	2116189	0	$2,116,189
MEDICAL RECORDS	561499	108948		$108,948
DME SALES	446199	85435	85435

Miscellaneous Revenue MiscellaneousRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	144296	TotalRevenueColumn
Exclusion	$144,296	ExclusionAmount

Field	Value	IRS element (for citing)
Total Other Revenue	2454868	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	553449598	TotalRevenueColumn
Related Or Exempt Function Income	541444768	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	176722	UnrelatedBusinessRevenue
Exclusion	$11,536,976	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	57393	Total
Program Services	57393	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	9424482	Total
Management And General	9424482	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	176649883	Total
Program Services	163354277	ProgramServices
Management And General	13295606	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	7506267	Total
Program Services	6941045	ProgramServices
Management And General	565222	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	32238005	Total
Program Services	29810483	ProgramServices
Management And General	2427522	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	12656903	Total
Program Services	11206422	ProgramServices
Management And General	1450481	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	4155225	Total
Program Services	455848	ProgramServices
Management And General	3699377	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	120000	Total
Management And General	120000	ManagementAndGeneral

Fees For Services Lobbying FeesForServicesLobbying

Field	Value	IRS element (for citing)
Total	37174	Total
Program Services	37174	ProgramServices

Fees For Services Invst Mgmnt Fees FeesForServicesInvstMgmntFees

Field	Value	IRS element (for citing)
Total	756886	Total
Management And General	756886	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	33708816	Total
Program Services	26319096	ProgramServices
Management And General	7389720	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	3069612	Total
Program Services	300	ProgramServices
Management And General	3069312	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	3209149	Total
Program Services	1975093	ProgramServices
Management And General	1234056	ManagementAndGeneral

Information Technology InformationTechnology

Field	Value	IRS element (for citing)
Total	1303588	Total
Program Services	1303588	ProgramServices

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	6724024	Total
Program Services	2389054	ProgramServices
Management And General	4334970	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	752228	Total
Program Services	593623	ProgramServices
Management And General	158605	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	58583	Total
Program Services	58583	ProgramServices

Interest Interest

Field	Value	IRS element (for citing)
Total	9554590	Total
Program Services	2775	ProgramServices
Management And General	9551815	ManagementAndGeneral

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	35110208	Total
Program Services	33024031	ProgramServices
Management And General	2086177	ManagementAndGeneral

Insurance Insurance

Field	Value	IRS element (for citing)
Total	4345712	Total
Program Services	208313	ProgramServices
Management And General	4137399	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Program ServicesProgramServices	Management And GeneralManagementAndGeneral
MEDICAL SUPPLIES	94002038	92083619	1918419
BAD DEBT EXPENSE	51385166	51385166
REPAIRS & MAINTENANCE	14780847	13548643	1232204
TAX (INC. PROVIDER TAX)	7529671	7638902	-109231

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	8053610	Total
Program Services	6949019	ProgramServices
Management And General	1104591	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	517190060	Total
Program Services	449342447	ProgramServices
Management And General	67847613	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	49154674	BOY
EOY	40423793	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	27329088	BOY
EOY	37241519	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	72959350	BOY
EOY	70145614	EOY

Other Notes Loans Receivable Net OtherNotesLoansReceivableNet

Field	Value	IRS element (for citing)
BOY	1872493	BOY
EOY	1102280	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	10389576	BOY
EOY	10105924	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	9769950	BOY
EOY	9157432	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	679052355	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	357080105	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	318410799	BOY
EOY	321972250	EOY

Investments Pub Traded Securities InvestmentsPubTradedSecurities

Field	Value	IRS element (for citing)
BOY	182075735	BOY
EOY	210416254	EOY

Investments Program Related InvestmentsProgramRelated

Field	Value	IRS element (for citing)
BOY	8722251	BOY
EOY	7528398	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	108429110	BOY
EOY	127695824	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	789113026	BOY
EOY	835789288	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	65168270	BOY
EOY	55338396	EOY

Tax Exempt Bond Liabilities TaxExemptBondLiabilities

Field	Value	IRS element (for citing)
BOY	248738461	BOY
EOY	244054896	EOY

Mort Notes Pybl Secured Invest Prop MortNotesPyblSecuredInvestProp

Field	Value	IRS element (for citing)
BOY	8212718	BOY
EOY	4328274	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	72802672	BOY
EOY	91931157	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	394922121	BOY
EOY	395652723	EOY

Field	Value	IRS element (for citing)
Follow SFAS117	X	FollowSFAS117

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	394190905	BOY
EOY	440136565	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	394190905	BOY
EOY	440136565	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	789113026	BOY
EOY	835789288	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	36259538	ReconcilationRevenueExpenses
Reconcilation Other Changes	9686122	ReconcilationOtherChanges
Method Of Accounting Accrual	X	MethodOfAccountingAccrual
Accountant Compile Or Review	0	AccountantCompileOrReview
FS Audited	1	FSAudited
Audit Committee	1	AuditCommittee
Financial Statement Consolidated	X	FinancialStatementConsolidated
Federal Grant Audit Required	0	FederalGrantAuditRequired

Schedule A IRS990ScheduleA

Field	Value	IRS element (for citing)
Hospital170b1 Aiii	X	Hospital170b1Aiii

Schedule B IRS990ScheduleB

Contributor Info ContributorInfo

Field	Value	IRS element (for citing)
Contributor Number	RESTRICTED	ContributorNumber

Contributor Name Business ContributorNameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	RESTRICTED	BusinessNameLine1

Contributor Address US ContributorAddressUS

Field	Value	IRS element (for citing)
Address Line1	RESTRICTED	AddressLine1
Address Line2	RESTRICTED	AddressLine2
City	RESTRICTED	City
State	RESTRICTED	State
ZIP Code	RESTRICTED	ZIPCode

Field	Value	IRS element (for citing)
Aggregate Contributions	RESTRICTED	AggregateContributions

Schedule C IRS990ScheduleC

Field	Value	IRS element (for citing)
Volunteers	0	Volunteers
Paid Staff Or Management	0	PaidStaffOrManagement
Media Advertisements	0	MediaAdvertisements
Mailings Members	0	MailingsMembers
Publications Or Broadcast	0	PublicationsOrBroadcast
Grants Other Organizations	0	GrantsOtherOrganizations
Direct Contact Legislators	0	DirectContactLegislators
Rallies Demonstrations	0	RalliesDemonstrations
Other Activities	1	OtherActivities
Other Activities	$37,174	OtherActivitiesAmount
Total Lobbying Expenditures IIB	37174	TotalLobbyingExpendituresIIB
Not Described In501c3	0	NotDescribedIn501c3

Form990 Schedule C Part IV Form990ScheduleCPartIV

Field	Value	IRS element (for citing)
Identifier	EXPLANATION OF LOBBYING ACTIVITIES:	Identifier
Return Reference	PART II-B, LINE 1:	ReturnReference
Explanation	$30,450: A PORTION OF THE DUES PAID TO THE KENTUCKY HOSPITAL ASSOCIATION ATTRIBUTABLE TO LOBBYING EXPENSES. $3,193: A PORTION OF THE DUES PAID TO THE AMERICAN MEDICAL REHABILITATION PROVIDERS ATTRIBUTABLE TO LOBBYING EXPENSES. $3,531: A PORTION OF THE DUES PAID TO THE AMERICAN HOSPITAL ASSOCIATION ATTRIBUTABLE TO LOBBYING EXPENSES.	Explanation

Schedule D IRS990ScheduleD

Land Land

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	28391667	OtherCostOrOtherBasis
Book Value	28391667	BookValue

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	367321193	OtherCostOrOtherBasis
Depreciation	168316402	Depreciation
Book Value	199004791	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	260827110	OtherCostOrOtherBasis
Depreciation	183546341	Depreciation
Book Value	77280769	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	22512385	OtherCostOrOtherBasis
Depreciation	5217362	Depreciation
Book Value	17295023	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	321972250	TotalOfBookValueLandBuildings

Other Assets OtherAssets (6 entries)

DescriptionDescription	Book ValueBookValue
SELF INSURANCE FUNDS	12082909
TRUSTEED FUNDS	23391837
DEFERRED FINANCING COSTS	2673747
OTHER ASSETS	494101
DUE FROM RELATED PARTIES	82527841
OTHER RECEIVABLES	6525389

Field	Value	IRS element (for citing)
Total Book Value Other Assets	127695824	TotalBookValueOtherAssets

Other Liabilities OtherLiabilities (5 entries)

DescriptionDescription	AmountAmount
MALPRACTICE COSTS	$16,269,858
ACCRUED PENSION	$28,752,366
LONG-TERM RETENTION PLAN	$2,391,040
INTEREST RATE SWAP AGGREMENTS	$22,063,563
ESTIMATED THIRD PARTY PAYOR SETTLEMENTS	$22,454,330

Field	Value	IRS element (for citing)
Total Of Amounts	91931157	TotalOfAmounts
Total Revenue	553449598	TotalRevenue
Total Expenses	517190060	TotalExpenses
Excess Or Deficit For Year	36259538	ExcessOrDeficitForYear
Net Unrealized GL On Investments	14801692	NetUnrealizedGLOnInvestments
Other	-$5,115,570	OtherAmount
Total Adjustments	9686122	TotalAdjustments
Excess Or Deficit Per FS	45945660	ExcessOrDeficitPerFS
Tot Revenue Etc Audited Fincl Stmt	512390199	TotRevenueEtcAuditedFinclStmt
Net Unrealized Gains Investments	14801692	NetUnrealizedGainsInvestments
Other Revenues	-56539834	OtherRevenues
Revenue Not Rptd F990	-41738142	RevenueNotRptdF990
Revenue Subtotal	554128341	RevenueSubtotal
Other Revenues Not Included	-678743	OtherRevenuesNotIncluded
Revenue Not Rptd On Fin Stmt	-678743	RevenueNotRptdOnFinStmt
Total Revenue Per Form990	553449598	TotalRevenuePerForm990
Tot Expenses Etc Audited Fincl Stmt	466444539	TotExpensesEtcAuditedFinclStmt
Other Expenses Included	969875	OtherExpensesIncluded
Expenses Not Rptd F990	969875	ExpensesNotRptdF990
Expenses Subtotal	465474664	ExpensesSubtotal
Other Expenses Not Included	51715396	OtherExpensesNotIncluded
Expenses Not Rptd On Fin Stmt	51715396	ExpensesNotRptdOnFinStmt
Total Expenses Per Form990	517190060	TotalExpensesPerForm990

Form990 Schedule D Part XIV Form990ScheduleDPartXIV (6 entries)

IdentifierIdentifier	Return ReferenceReturnReference	ExplanationExplanation
DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:	PART X:	THE MEDICAL CENTER, KHF, KBNH, CDC, KHI, KDMT, KDMS, AND THE FOUNDATION HAVE BEEN RECOGNIZED BY THE IRS AS SECTION 501(C)(3) CHARITABLE ORGANIZATIONS. SECTION 501(C)(3) ORGANIZATIONS ARE EXEMPT FROM FEDERAL AND STATE INCOME TAXES ON RELATED INCOME. THESE ORGANIZATIONS DO NOT ENGAGE IN SIGNIFICANT UNRELATED ACTIVITIES AND THEREFORE NO TAX IS RECORDED.
PART XI, LINE 8 - OTHER ADJUSTMENTS:		PENSION LIABILITY ADJUSTMENT -4,128,466. CHANGE IN MARKET VALUE INTEREST RATE SWAP -1,951,438. CHANGE IN MARKET VALUE SELF INSURANCE FUNDS 895,720. OTHER ADJUSTMENTS 79,556. CONTRIBUTIONS OF EQUIPMENT NOT REPORTED ON F/S -10,942. TOTAL TO SCHEDULE D, PART XI, LINE 8: -5,115,570.
PART XII, LINE 2D - OTHER ADJUSTMENTS:		CHANGE IN MARKET VALUE INTEREST RATE SWAP -1,951,438. CHANGE IN MARKET VALUE SELF INSURANCE FUNDS 895,720. PENSION LIABILITY ADJUSTMENT -4,128,466. OTHER ADJUSTMENTS 79,556. BAD DEBT EXPENSES (NETTED AGAINST NET PATIENT SERVICE REVENUE ON F/S) -51,385,166. GRANT EXPENSES (NETTED AGAINST OTHER INCOME ON F/S) -50,040.
PART XII, LINE 4B - OTHER ADJUSTMENTS:		RENTAL EXPENSES -969,875. CONTRIBUTIONS NETTED AGAINST EXPENSES ON F/S 280,190. DONATED EQUIPMENT NOT REPORTED ON F/S 10,942.
PART XIII, LINE 2D - OTHER ADJUSTMENTS:		RENTAL EXPENSES 969,875.
PART XIII, LINE 4B - OTHER ADJUSTMENTS:		BAD DEBT EXPENSES (NETTED AGAINST NET PATIENT SERVICE REVENUE ON F/S) 51,385,166. GRANT EXPENSES (NETTED AGAINST OTHER INCOME ON F/S) 50,040. CONTRIBUTIONS NETTED AGAINST EXPENSES ON F/S 280,190.

Schedule H IRS990ScheduleH

Field	Value	IRS element (for citing)
Charity Care Policy	1	CharityCarePolicy
Written Policy	1	WrittenPolicy
FPG Reference Free Care	1	FPGReferenceFreeCare
Pcent200	X	Pcent200
FPG Reference Discounted Care	1	FPGReferenceDiscountedCare
Pcent300	X	Pcent300
Free Disc Care Medically Indigent	1	FreeDiscCareMedicallyIndigent
Amounts Budgeted For Charity Care	1	AmountsBudgetedForCharityCare
Expenses Exceeded Budget	1	ExpensesExceededBudget
Unable To Provide Care	0	UnableToProvideCare
Annual Community Benefit Report	1	AnnualCommunityBenefitReport
Report Publically Available	1	ReportPublicallyAvailable

Charity Care At Cost CharityCareAtCost

Field	Value	IRS element (for citing)
Total Community Benefit Expense	20301743	TotalCommunityBenefitExpense
Net Community Benefit Expense	20301743	NetCommunityBenefitExpense
Percent Of Total Expense	0.04360	PercentOfTotalExpense

Unreimbursed Medicaid UnreimbursedMedicaid

Field	Value	IRS element (for citing)
Total Community Benefit Expense	74221631	TotalCommunityBenefitExpense
Direct Offsetting Revenue	55973914	DirectOffsettingRevenue
Net Community Benefit Expense	18247717	NetCommunityBenefitExpense
Percent Of Total Expense	0.03920	PercentOfTotalExpense

Total Charity Care TotalCharityCare

Field	Value	IRS element (for citing)
Total Community Benefit Expense	94523374	TotalCommunityBenefitExpense
Direct Offsetting Revenue	55973914	DirectOffsettingRevenue
Net Community Benefit Expense	38549460	NetCommunityBenefitExpense
Percent Of Total Expense	0.08280	PercentOfTotalExpense

Community Health Services CommunityHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	3711590	TotalCommunityBenefitExpense
Net Community Benefit Expense	3711590	NetCommunityBenefitExpense
Percent Of Total Expense	0.00800	PercentOfTotalExpense

Health Professions Education HealthProfessionsEducation

Field	Value	IRS element (for citing)
Total Community Benefit Expense	324019	TotalCommunityBenefitExpense
Net Community Benefit Expense	324019	NetCommunityBenefitExpense
Percent Of Total Expense	0.00070	PercentOfTotalExpense

Subsidized Health Services SubsidizedHealthServices

Field	Value	IRS element (for citing)
Total Community Benefit Expense	1710391	TotalCommunityBenefitExpense
Direct Offsetting Revenue	1651954	DirectOffsettingRevenue
Net Community Benefit Expense	58437	NetCommunityBenefitExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Research Research

Field	Value	IRS element (for citing)
Total Community Benefit Expense	165694	TotalCommunityBenefitExpense
Net Community Benefit Expense	165694	NetCommunityBenefitExpense
Percent Of Total Expense	0.00040	PercentOfTotalExpense

Cash And In Kind Contributions CashAndInKindContributions

Field	Value	IRS element (for citing)
Total Community Benefit Expense	57393	TotalCommunityBenefitExpense
Net Community Benefit Expense	57393	NetCommunityBenefitExpense
Percent Of Total Expense	0.00010	PercentOfTotalExpense

Total Other Benefits TotalOtherBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	5969087	TotalCommunityBenefitExpense
Direct Offsetting Revenue	1651954	DirectOffsettingRevenue
Net Community Benefit Expense	4317133	NetCommunityBenefitExpense
Percent Of Total Expense	0.00930	PercentOfTotalExpense

Total Community Benefits TotalCommunityBenefits

Field	Value	IRS element (for citing)
Total Community Benefit Expense	100492461	TotalCommunityBenefitExpense
Direct Offsetting Revenue	57625868	DirectOffsettingRevenue
Net Community Benefit Expense	42866593	NetCommunityBenefitExpense
Percent Of Total Expense	0.09210	PercentOfTotalExpense

Workforce Development WorkforceDevelopment

Field	Value	IRS element (for citing)
Total Community Building Expense	219985	TotalCommunityBuildingExpense
Net Community Building Expense	219985	NetCommunityBuildingExpense
Percent Of Total Expense	0.00050	PercentOfTotalExpense

Total Total

Field	Value	IRS element (for citing)
Total Community Building Expense	219985	TotalCommunityBuildingExpense
Net Community Building Expense	219985	NetCommunityBuildingExpense
Percent Of Total Expense	0.00050	PercentOfTotalExpense

Field	Value	IRS element (for citing)
Bad Debt Expense Reported	1	BadDebtExpenseReported
Bad Debt Expense	$16,455,429	BadDebtExpenseAmount
Amount Attributable To	3588727	AmountAttributableTo
Amount Reimbursed By Medicare	137603405	AmountReimbursedByMedicare
Cost Of Care Reimbursed By Medicare	158181436	CostOfCareReimbursedByMedicare
Medicare Surplus Or Shortfall	-20578031	MedicareSurplusOrShortfall

Costing Methodology Used CostingMethodologyUsed

Field	Value	IRS element (for citing)
Other	X	Other

Field	Value	IRS element (for citing)
Written Debt Collection Policy	1	WrittenDebtCollectionPolicy
Provision For Charity Care	1	ProvisionForCharityCare
Number Of Hospital Facilities	1	NumberOfHospitalFacilities

Form990 Schedule H Part V Section A Form990ScheduleHPartVSectionA

Field	Value	IRS element (for citing)
Facility Number	1	FacilityNumber

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	ASHLAND HOSPITAL CORPORATION	BusinessNameLine1

Address Address

Field	Value	IRS element (for citing)
Address Line1	2201 LEXINGTON AVENUE	AddressLine1
City	ASHLAND	City
State	KY	State
ZIP Code	41101	ZIPCode

Field	Value	IRS element (for citing)
Licensed Hospital	X	LicensedHospital
General Medical And Surgical	X	GeneralMedicalAndSurgical
Er24 Hours	X	Er24Hours

Form990 Schedule H Part V Section B Form990ScheduleHPartVSectionB

Hospital Facility Name HospitalFacilityName

Field	Value	IRS element (for citing)
Business Name Line1	ASHLAND HOSPITAL CORPORATION	BusinessNameLine1

Field	Value	IRS element (for citing)
Hospital Facility Number	1	HospitalFacilityNumber
CHNA Conducted	0	CHNAConducted
Eligibility Criteria Explained	1	EligibilityCriteriaExplained
Uses FPG Free	1	UsesFPGFree
FPG Free Percent	200.000000000000	FPGFreePercent
Uses FPG Discounted	1	UsesFPGDiscounted
FPG Discount Percent	300.000000000000	FPGDiscountPercent
Explains Basis	1	ExplainsBasis
Income Level	X	IncomeLevel
Uninsured Discount	X	UninsuredDiscount
Explains Application Method	1	ExplainsApplicationMethod
Includes Publicity Measures	1	IncludesPublicityMeasures
Posted On Website	X	PostedOnWebsite
Actions On Nonpayment	1	ActionsOnNonpayment
Collection Activities	1	CollectionActivities
Report To Credit Agency	X	ReportToCreditAgency
Notify Upon Admission	X	NotifyUponAdmission
Notified All Patients	X	NotifiedAllPatients
Documented Determination	X	DocumentedDetermination
Nondiscrim Emergency Care Policy	1	NondiscrimEmergencyCarePolicy
Used Other Method	X	UsedOtherMethod
Amounts Generally Billed	0	AmountsGenerallyBilled
Gross Charges	0	GrossCharges

Form990 Schedule H Part V Section C Form990ScheduleHPartVSectionC

Field	Value	IRS element (for citing)
Number Of Other Facilities	23	NumberOfOtherFacilities

Other Facilities OtherFacilities (23 entries)

Address Line1Address/AddressLine1	CityAddress/City	StateAddress/State	ZIP CodeAddress/ZIPCode	Facility TypeFacilityType
CENTER FOR ADVANCED IMAGING
2225 CENTRAL AVENUE	ASHLAND	KY	41101	OUTPATIENT IMAGING CENTER
ASHLAND URGENT CARE
2245 WINCHESTER AVENUE	ASHLAND	KY	41101	URGENT CARE
GRAYSON URGENT CARE
I-64 INTERCHANGE	GRAYSON	KY	41143	URGENT CARE
IRONTON URGENT CARE
912 PARK AVENUE	IRONTON	OH	45638	URGENT CARE
PORTSMOUTH URGENT CARE
2001 SCIOTO TRAIL	PORTSMOUTH	OH	45662	URGENT CARE
OUTPATIENT SERVICES CENTER
480 23RD STREET	ASHLAND	KY	41101	PHYSICAL, OCCUPATIONAL AND SPEECH THERAPY
CATLETTSBURG FAMILY CARE CENTER
4004 LOUIS RD	CATLETTSBURG	KY	41129	FAMILY CARE CENTER
CEDAR KNOLL FAMILY CARE CENTERPEDIATRIC
10650 US ROUTE 60	ASHLAND	KY	41102	FAMILY CARE CENTER/PEDIATRICS
FLATWOODS FAMILY CAREMED SPECIALTIES
1107 BELLEFONTE RD	FLATWOODS	KY	41139	FAMILY CARE CENTER
GRAYSON MEDICAL SPECIALTIES
609 N CAROL MALONE BLVD	GRAYSON	KY	41143	FAMILY CARE CENTER
PIKEVILLE MEDICAL SPECIALTIES
5425 N MAYO TRAIL SUITE 202	PIKEVILLE	KY	41501	FAMILY CARE CENTER
OLIVE HILL FAMILY CARE CENTER
391 WEST TOM T HALL BOULEVARD	OLIVE HILL	KY	41164	FAMILY CARE CENTER
BURLINGTON FAMILY CARE CENTER
384 COUNTRY ROAD 120 SOUTH	SOUTH POINT	OH	45680	FAMILY CARE CENTER
IRONTON FAMILY CARE CENTER
912 PARK AVENUE	IRONTON	OH	45638	FAMILY CARE CENTER
JACKSON MEDICAL SPECIALTIES
14395 STATE ROUTE 93	JACKSON	OH	45640	FAMILY CARE CENTER
PORTSMOUTH MEDICAL SPECIALTIES
2001 SCIOTO TRAIL	PORTSMOUTH	OH	45662	FAMILY CARE CENTER
PROCTORVILLE MEDICAL SPECIALTIES
6276 COUNTY ROAD 107	PROCTORVILLE	OH	45669	FAMILY CARE CENTER
WHEELERSBURG FAMILY CARE
8750 OHIO RIVER ROAD	WHEELERSBURG	OH	45694	FAMILY CARE CENTER
SANDY HOOK FAMILY CARE CENTER
STATE ROUTES 7 AND 32	SANDY HOOK	KY	41171	FAMILY CARE CENTER
KDMC SKILLED NURSING FACILITY
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	SKILLED NURSING
KDMC INPATIENT REHABILITATION
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	INPATIENT REHABILITATION
KDMC OCCUPATION MEDICINE
336 29TH STREET	ASHLAND	KY	41101	OCCUPATION MEDICINE
KDMC HOME HEALTH
10730 MIDLAND TRAIL	ASHLAND	KY	41101	HOME HEALTH SERVICES

Form990 Schedule H Part VI Form990ScheduleHPartVI (14 entries)

ExplanationExplanation	IdentifierIdentifier
PART I, LINE 7: KDMC USED WORKSHEET 2 PROVIDED IN THE 2011 SCHEDULE H INSTRUCTIONS (FORM 990) TO CALCULATE A COST OF CHARGE RATIO. THIS RATIO WAS USED TO CALCULATE CHARITY CARE AT COST. ALL OTHER ITEMS WERE REPORTED AT NET EXPENSE.
PART I, LINE 7G: THERE ARE NO COSTS ATTRIBUTABLE TO PHYSICIAN CLINICS INCLUDED AS SUBSIDIZED HEALTH SERVICES.
PART I, L7 COL(F): BAD DEBT EXPENSE INCLUDED ON FORM 990 PART IX, LINE 25, BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $51,385,166.
PART II: TO REACH OUR COMMUNITIES AND TO PROVIDE THE BEST OUTREACH SERVICES POSSIBLE, WE PARTNER WITH A DIVERSE GROUP OF BOTH PUBLIC AND PRIVATE ENTITIES. WE HAVE ESTABLISHED PARTNERSHIPS WITH AREA RETAILERS, HEALTH DEPARTMENTS, FACTORIES, CITY OF ASHLAND, LOCAL EMS SERVICES, AMERICAN RED CROSS, SUSAN G. KOMEN FOR THE CURE, CARES, COMMUNITY KITCHEN, SAFE HARBOR, 16 SCHOOL DISTRICTS AND NEARBY COLLEGES AND UNIVERSITIES, SHELTER OF HOPE, ASHLAND AREA YMCA, AREA SENIOR CITIZENS CENTERS, AND MORE THAN 150 CHURCHES. WE SEND OUR OUTREACH TEAMS OUT INTO THE COMMUNITY TO MEET PEOPLE ON THEIR TIME AND IN THE PLACES THAT ARE COMFORTABLE FOR THEM - SCHOOLS, MALLS, CHURCHES, LIBRARIES, WORKSITES, GROCERY STORES AND MORE. SERVICES PROVIDED INCLUDE MORE THAN 75 SCREENING AND EDUCATIONAL EVENTS EACH MONTH, MOBILE HEALTH SERVICES, COORDINATION OF A REGIONAL CPR TRAINING CENTER AND A MEALS ON WHEELS PROGRAM. PATIENTS WITH ABNORMAL RESULTS FROM OUR HEALTH SCREENINGS RECEIVE A FOLLOW-UP LETTER REMINDING THEM OF THE IMPORTANCE OF SHARING THE RESULTS WITH THEIR HEALTHCARE PROVIDER.IDENTIFYING THOSE AT RISK FOR HEART AND VASCULAR DISEASE, EDUCATING THE PUBLIC ABOUT HEART ATTACK AND STROKE SIGNS AND SYMPTOMS, AND REDUCING TOBACCO USE THROUGHOUT THE REGION ARE THREE IMPORTANT AREAS OF FOCUS. OUR REGION HAS A HIGH INCIDENCE OF UNDIAGNOSED OR UNTREATED HEART AND VASCULAR DISEASE. OUR "HEALTH CONNECTIONS" PROGRAM CONTINUES TO EXPAND SERVICES BY OFFERING FREE COMPREHENSIVE HEALTHY HEART AND VASCULAR SCREENINGS TO HIGH RISK POPULATIONS. THIS SCREENING MAY INCLUDE A FASTING LIPID PANEL, TOTAL CHOLESTEROL, AN ANKLE BRACHIAL INDEX, BLOOD PRESSURE, BLOOD SUGAR, OR AN EKG. WE ARE RAISING AWARENESS ABOUT THE CARDIOVASCULAR RISKS AND CATCHING DISEASE THAT HAD NOT BEEN DIAGNOSED SO IT CAN BE TREATED. WE ARE MAKING SURE THE PARTICIPANTS KNOW THEIR HEART RISK NUMBERS. OUR HEART SCREENINGS PROVIDED 6,769 BLOOD PRESSURE (41% ABNORMAL), 6,304 BLOOD SUGAR (10% ABNORMAL) AND 6,275 TOTAL CHOLESTEROL (44% ABNORMAL) SCREENINGS IN 2012. THESE SCREENINGS HAD MORE THAN 3,500 PARTICIPANTS.
PART III, LINE 4: MANAGEMENT MAINTAINS AN ALLOWANCE FOR DOUBTFUL ACCOUNTS TO RESERVE FOR ESTIMATED LOSSES BASED ON THE LENGTH OF TIME THE ACCOUNT HAS BEEN PAST DUE, THIRD PARTY PAYER CLASSIFICATION, AND HISTORICAL EXPERIENCE. BAD DEBT IS CLASSIFIED AS A DEDUCTION FROM REVENUE WHICH IS CONSISTENT WITH THE HFMA PRINCIPLES AND PRACTICES BOARD STATEMENT NO. 15.KDMC USED WORKSHEET 2 PROVIDED IN THE 2011 SCHEDULE H INSTRUCTIONS (FORM 990) TO CALCULATE A COST TO CHARGE RATIO. THIS RATIO WAS USED TO CALCULATE BAD DEBT EXPENSE AT COST. BAD DEBT EXPENSE IS RECORDED AFTER ANY DISCOUNTS AND PAYMENTS ARE MADE ON PATIENT ACCOUNTS. THE BUSINESS OFFICE ESTIMATED AN AMOUNT BASED ON A NUMBER OF "NO-RESPONSE" APPLICATIONS ANNUALLY. THEY THEN APPLY THIS NUMBER TO A PRO-RATED AVERAGE COST OF IP AND OP CASES TO ESTIMATE THE COST. A PORTION SHOULD BE CONSIDERED COMMUNITY BENEFIT AS THE HOSPITAL PROVIDES CARE TO ALL PATIENTS REGARDLESS OF ABILITY TO PAY.
PART III, LINE 8: THE HOSPITAL CONTINUES TO PROVIDE CARE TO ALL PRESENTING AND ADMITTED PATIENTS, REGARDLESS OF ABILITY TO PAY. NOTWITHSTANDING THE COSTS TO PROVIDE CARE, RECEIVING "LESS" THAN WHAT IT COSTS TO PROVIDE ADEQUATE CARE TO MEDICARE COVERED LIVES DOES THE HOSPITAL A DISSERVICE. THIS SHORTFALL SHOULD COUNT AS A COMMUNITY BENEFIT. THE HOSPITAL USES THE ALLOWABLE COSTS PER THE MEDICARE COST REPORT.
PART III, LINE 9B: THE HOSPITAL DOES HAVE A WRITTEN POLICY FOR BAD DEBT. IT IS A SYSTEM PROGRESSION WITH THREE PATIENT STATEMENTS, THREE LETTERS FROM CREDIT COLLECTIONS, INC., AND IF NO PAYMENT ARRANGEMENTS ARE MADE DURING THIS TIME, THERE IS AUTOMATION TO THE COLLECTION AGENCY. EACH BILL THAT A PATIENT RECEIVES HAS A STATEMENT STATING IF THEY ARE UNABLE TO PAY THEIR BILL TO CONTACT THE HOSPITAL'S FINANCIAL ASSISTANCE TEAM WITH A DIRECT LINE NUMBER. ALSO, EACH SELF-PAY PATIENT IS CONTACTED BY THE HOSPITAL'S MEDICAID ELIGIBILITY VENDOR AS WELL AS RECEIVING A FINANCIAL ASSISTANCE APPLICATION.
PART V, SECTION B, LINE 13G: THE POLICY IS NOT POSTED IN ITS ENTIRETY, BUT WE HAVE SIGNAGE ADVERTISING WHO TO CONTACT FOR FINANCIAL ASSISTANCE ON THE PATIENT STATEMENT, IN THE HOSPITAL ED AND WAITING ROOMS, ADMISSIONS OFFICES, AND OTHER PATIENT AREAS.	ASHLAND HOSPITAL CORPORATION
PART V, SECTION B, LINE 19D: 20% SELF PAY DISCOUNT-AVERAGE OVERALL COMMERCIAL RATE	ASHLAND HOSPITAL CORPORATION
PART VI, LINE 2: WE USE A VARIETY OF RESOURCES TO HELP US MAKE DECISIONS ON HOW TO BEST TARGET OUR ACTIVITIES. WE'VE CONDUCTED INFORMAL NEEDS ASSESSMENTS, ANALYZED STATE AND COUNTY MORTALITY DATA AND TALKED WITH SCHOOL OFFICIALS, NON-PROFIT AGENCIES AND ELECTED OFFICIALS ABOUT TRENDS AND ISSUES. ONCE WE KNOW WHAT ISSUES WE WANT TO TARGET, OUR COMMUNITY HEALTH INITIATIVES ARE BUILT INTO THE MEDICAL CENTER'S THREE-YEAR STRATEGIC PLAN. IN 2012, THE CORPORATE GOAL WAS TO PROMOTE WELLNESS THROUGH AT LEAST 325 COMMUNITY HEALTH AND DIABETES SCREENINGS AND EDUCATIONAL PROGRAMS THROUGH THE PARTICIPATION OF NO LESS THAN 2,737 KDMC TEAM MEMBERS, PHYSICIANS, AND ALLIED HEALTH PROFESSIONALS AS VOLUNTEERS. THE KDMC TEAM EXCEEDED THIS GOAL BY PROVIDING 342 SCREENINGS AND EDUCATIONAL PROGRAMS WITH 2,781 TEAM MEMBERS AND PROVIDERS VOLUNTEERING MORE THAN 33,000 HOURS.
PART VI, LINE 3: THE MEDICAL CENTER'S FINANCIAL ASSISTANCE POLICY PROVIDES DIRECTION FOR FREE OR DISCOUNTED SERVICES TO RESIDENTS OF THE COMMUNITY WHO HAVE INADEQUATE FINANCIAL RESOURCES TO PAY FOR NECESSARY HEALTHCARE SERVICES PROVIDED BY KDMC. THE POLICY STATES THAT THE MEDICAL CENTER WILL NOT DENY CARE TO ANY PATIENT REQUIRING CARE DUE TO THEIR INABILITY TO PAY. THE FINANCIAL ASSISTANCE POLICY PROVIDES GUIDANCE TO PROVIDING ASSISTANCE BASED ON SLIDING SCALE METHODOLOGY AND THE FEDERAL POVERTY GUIDELINES ESTABLISHED BY THE DEPARTMENT OF HEALTH AND HUMAN SERVICES. PATIENTS REQUIRING CARE WITH INCOME BELOW 300% OF THE FEDERAL POVERTY LEVEL QUALIFY FOR FREE OR REDUCED COST SERVICES. THE FINANCIAL ASSISTANCE PROGRAM IS ON THE KDMC WEBSITE AND THE PHONE NUMBER TO ACCESS INFORMATION IS PROVIDED TO PATIENTS THROUGH THE PATIENT INFORMATION GUIDE AT ADMITTANCE TO THE HOSPITAL. KDMC WORKS TO IDENTIFY PATIENTS THAT MAY HAVE LIMITED RESOURCES AND OFFERS FINANCIAL ASSISTANCE WHEN APPROPRIATE. THERE ARE SIGNS POSTED IN VARIOUS REGISTRATION AREAS INFORMING PATIENTS OF THE PHONE NUMBER TO CALL IF THEY NEED FINANCIAL ASSISTANCE. ON EACH PATIENT STATEMENT THE INFORMATION IS ALSO PRINTED WITH THE PHONE NUMBER. WE ALSO HAVE STAFF IN THE OUTPATIENT IMAGING CENTER, HEART AND VASCULAR CENTER, ADMITTING AND PRE ADMISSION TESTING AREAS. ALL SELF-PAY PATIENTS RECEIVE CORRESPONDENCE AND PHONE CALLS AND INPATIENTS RECEIVE VISITS FROM OUR MEDICAID ELIGIBILITY VENDOR IN REFERENCE TO GOVERNMENT PROGRAMS.
PART VI, LINE 4: KDMC IS NESTLED IN THE FOOTHILLS OF THE APPALACHIAN MOUNTAINS, WHERE THE KENTUCKY, OHIO, AND WEST VIRGINIA STATE LINES MEET. OUR PRIMARY SERVICE AREA ENCOMPASSES FIVE COUNTIES IN TWO STATES, BOYD, CARTER, AND GREENUP COUNTIES IN KENTUCKY AND LAWRENCE AND SCIOTO COUNTIES IN OHIO. MORE THAN 253,000 PEOPLE (U. S. CENSUS BUREAU) LIVE IN THE FIVE-COUNTY AREA. WITH THE EXCEPTION OF TWO CITIES WITH POPULATIONS AROUND 20,000, THE AREA IS VERY RURAL, COVERING APPROXIMATELY 2,000 SQUARE MILES WITH A POPULATION DENSITY OF 126 PEOPLE PER SQUARE MILE. MORE THAN 18% OF THE POPULATION LIVES IN POVERTY, WITH CHILDREN IN POVERTY AT MORE THAN 25%. THE POPULATION IS 97% WHITE, 2% BLACK AND ALL OTHER RACES 1%. APPROXIMATELY 20% OF THE POPULATION DID NOT GRADUATE FROM HIGH SCHOOL. THE AVERAGE MEDIAN INCOME IS $37,724, WELL BELOW THE LEVELS FOR KENTUCKY, OHIO, AND THE NATION. AVERAGE UNEMPLOYMENT IS 10.3% COMPARED TO 7.7% NATIONALLY AND 8% FOR KENTUCKY. THE KENTUCKY BEHAVIORAL RISK FACTOR SURVEILLANCE SYSTEM SHOWS THAT IN 2008, IN KDMC'S KENTUCKY MARKET AREA, 18.9% OF THOSE AGE 19-64 YEARS LACKED ANY FORM OF HEALTHCARE COVERAGE, COMPARED TO 14.4% IN KENTUCKY AND 14.6% IN THE NATION.
PART VI, LINE 5: KING'S DAUGHTERS MEDICAL CENTER ("KDMC") IS A LOCALLY CONTROLLED, NOT-FOR-PROFIT, 465-BED REGIONAL REFERRAL CENTER, COVERING A 150-MILE RADIUS THAT INCLUDES SOUTHERN OHIO, EASTERN KENTUCKY, AND WESTERN WEST VIRGINIA. KDMC OFFERS COMPREHENSIVE CARDIAC, MEDICAL, SURGICAL, PEDIATRIC, REHABILITATIVE, PSYCHIATRIC, CANCER, NEUROLOGICAL, PAIN CARE, WOUND CARE AND, HOME CARE SERVICES IN ONE CONVENIENT LOCATION.THERE ARE 279 PHYSICIANS ON STAFF, AND 1,747 CLINICAL EMPLOYEES, INCLUDING LAB TECHNICIANS, NURSES, NURSING ASSISTANTS, PHYSICAL, OCCUPATIONAL AND SPEECH THERAPISTS, RADIOLOGY TECHNICIANS, PHLEBOTOMISTS, AND SUPPORT PERSONNEL. EACH ARE HIGHLY TRAINED TO DELIVER QUALITY AND SAFE CARE TO INPATIENTS AND OUTPATIENTS. THE MEDICAL CENTER HAS:1) AN OPEN MEDICAL STAFF WITH PRIVILEGES AVAILABLE TO ALL QUALIFIED PHYSICIANS IN THE AREAS;2) A BOARD OF DIRECTORS WHO GOVERN THE ORGANIZATION. THE BOARD IS COMPRISED OF COMMUNITY AND BUSINESS LEADERS, AND PHYSICIANS REPRESENTING THE GEOGRAPHIC AREA OF OUR REGION;3) AN EMERGENCY DEPARTMENT THAT IS OPEN TO ALL PERSONS IN NEED REGARDLESS OF THEIR ABILITY TO PAY FOR SERVICES;4) PROVIDES FINANCIAL SUPPORT TO OTHER NONPROFIT ORGANIZATIONS FOR THE PURPOSE OF HEALTH PROMOTION AND COLLABORATING TO MEET UNMET NEEDS IN THE COMMUNITY.5) THE MEDICAL CENTER'S COMMUNITY RELATIONS DEPARTMENT IS FUNDED USING MEDICAL CENTER RESOURCES. THE DEPARTMENT INITIATES AND ORGANIZES HEALTH SCREENINGS AND EDUCATIONAL EVENTS DEVELOPED FOR THE SOLE PURPOSE OF IMPROVING THE HEALTH OF THOSE IN OUR REGION. THE COMMUNITY RELATIONS STAFF OFFERS: HEALTH SCREENINGS, HEALTH EDUCATION TO ADULTS AND CHILDREN, SUPPORT GROUPS, FLU SHOTS, AND SAFETY INSPECTIONS. IN FISCAL YEAR 2012, THE COMMUNITY RELATIONS DEPARTMENT PROVIDED 342 HEALTH SCREENING EVENTS, 2,000 FLU VACCINATIONS AND EDUCATED 19,000 YOUTH ABOUT THE HARMFUL EFFECTS OF TOBACCO USE AND THE IMPORTANCE OF HEALTHY EATING. ANY SURPLUS FUNDS ARE REINVESTED IN THE CAPITAL AND OPERATIONS OF THE HOSPITAL.
PART VI, LINE 6: KING'S DAUGHTERS MEDICAL CENTER IS PART OF AN AFFILIATED HEALTH CARE DELIVERY SYSTEM. THE SYSTEM PROVIDES PHYSICIAN SERVICES THROUGH TWO AFFILIATES, KENTUCKY HEART INSTITUTE AND KING'S DAUGHTERS MEDICAL SPECIALTIES, INC. BOTH AFFILIATES PROVIDE CHARITY CARE AND PARTICIPATE IN GOVERNMENT PROGRAMS. KING'S DAUGHTERS ALSO INCLUDES TWO OTHER AFFILIATES - KING'S DAUGHTERS MEDICAL TRANSPORT, WHICH SEEKS TO CONTINUOUSLY IMPROVE THE PRE- AND POST-HOSPITAL HEALTHCARE PROVIDED IN ALL OF ITS SERVICE AREAS WHILE ENSURING THAT EMERGENCY AND NON-EMERGENCY AMBULANCE SERVICE WILL BE AVAILABLE TO ALL THOSE IN NEED; AND KINGSBROOK NURSING HOME, WHICH PROVIDES QUALITY CARE TO PATIENTS, MEETING THE NEEDS AND DESIRES OF RESIDENTS AT VARIOUS LEVELS OF CARE, INCLUDING SHORT-TERM AND LONG-TERM CARE.PART VI LINE 7: THE COMMUNITY BENEFIT REPORT IS NOT REPORTED WITH ANY STATE BUT IT IS AVAILABLE TO THE PUBLIC.

Schedule I IRS990ScheduleI

Field	Value	IRS element (for citing)
Records Maintained	1	RecordsMaintained

Recipient Table RecipientTable (2 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EIN Of RecipientEINOfRecipient	IRC SectionIRCSection	Amount Of Cash GrantAmountOfCashGrant	Purpose Of GrantPurposeOfGrant
UNITED WAY OF NORTHEAST KENTUCKY
1236 WINCHESTER AVENUE	ASHLAND	KY	41101	616000060	501(C)(3)	7629	ANNUAL SUPPORT
SALVATION ARMY
964 BROADWAY STREET 1	PAINTSVILLE	KY	41240	133485289	501(C)(3)	23846	EASTERN KENTUCKY TORNADO RELIEF

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	2	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	0	TotalNbrOfOtherOrganizations

Form990 Schedule I Part IV Form990ScheduleIPartIV

Field	Value	IRS element (for citing)
Identifier	PROCEDURE FOR MONITORING GRANTS IN THE U.S.:	Identifier
Return Reference	PART I, LINE 2:	ReturnReference
Explanation	SCHEDULE I, PART I, LINE 2: ANY REQUEST FOR A GRANT MUST BE SUBMITTED IN WRITING TO THE COMMUNITY SERVICES DEPARTMENT AT KDMC. THIS REQUEST MUST BE SPECIFIC AS TO THE USE OF THE GRANT BY THE REQUESTING ORGANIZATION. ONCE THE GRANT CHECK IS ISSUED, A REPRESENTATIVE FROM THE GRANTEE ORGANIZATION MUST SIGN FOR THE CHECK AND SUBMIT A REPORT ON THE USE OF THE FUNDS AS WELL AS THE NUMBER OF PEOPLE SERVED BY THE GRANT. SINCE THIS IS A SMALL COMMUNITY, KDMC ALSO USUALLY KNOWS SOMEONE WITH CLOSE ASSOCIATION TO THE ORGANIZATION OR WHO REPRESENTS THE MEDICAL CENTER ON THEIR BOARD SO THAT USE OF THE GRANT CAN BE INDIRECTLY MONITORED.	Explanation

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Club Dues Or Fees	X	ClubDuesOrFees
Written Policy Re T And E Expenses	1	WrittenPolicyReTAndEExpenses
Substantiation Required	1	SubstantiationRequired
Compensation Committee	X	CompensationCommittee
Independent Consultant	X	IndependentConsultant
Written Employment Contract	X	WrittenEmploymentContract
Compensation Survey	X	CompensationSurvey
Board Or Committee Approval	X	BoardOrCommitteeApproval
Severance Payment	1	SeverancePayment
Supplemental Nonqual Retire Plan	1	SupplementalNonqualRetirePlan
Equity Based Comp Arrangement	0	EquityBasedCompArrangement
Comp Based On Revenue Of Filing Org	0	CompBasedOnRevenueOfFilingOrg
Comp Based On Revenue Related Orgs	0	CompBasedOnRevenueRelatedOrgs
Comp Based Net Earnings Filing Org	0	CompBasedNetEarningsFilingOrg
Comp Based Net Earnings Relate Orgs	0	CompBasedNetEarningsRelateOrgs
Any Non Fixed Payments	0	AnyNonFixedPayments
Initial Contract Exception	0	InitialContractException

Form990 Schedule J Part II Form990ScheduleJPartII (14 entries)

Base Compensation Filing OrgBaseCompensationFilingOrg	Comp Based On Related OrgsCompBasedOnRelatedOrgs	Bonus Filing OrgBonusFilingOrg	Bonus Related OrgsBonusRelatedOrgs	Other Compensation Filing OrgOtherCompensationFilingOrg	Other Compensation Related OrgsOtherCompensationRelatedOrgs	Deferred Comp Filing OrgDeferredCompFilingOrg	Deferred Comp Related OrgsDeferredCompRelatedOrgs	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrg	Nontaxable Benefits Related OrgsNontaxableBenefitsRelatedOrgs	Total Compensation Filing OrgTotalCompensationFilingOrg	Total Compensation Related OrgsTotalCompensationRelatedOrgs	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrg	Comp Report Prior990 Related OrgsCompReportPrior990RelatedOrgs
JACKSON FRED
748705	0	231720	0	35218	0	494888	0	19387	0	1529918	0	0	0
MCDOWELL PAUL
261976	0	165224	0	81998	0	11025	0	19629	0	539852	0	72151	0
MAHANEY SHERYL
206666	0	128378	0	53876	0	107154	0	19486	0	515560	0	49096	0
FIORET PHILIP MD
444698	0	196406	0	123904	0	188874	0	21603	0	975485	0	94103	0
HIGGINS LARRY
214773	0	150252	0	82664	0	152395	0	20040	0	620124	0	58089	0
WHITLATCH KRISTIE
286596	0	141110	0	55534	0	151257	0	19486	0	653983	0	47622	0
BELL JULIE MD
437016	0	20000	0	10304	0	11025	0	18982	0	497327	0	0	0
GOUZD VALERIE MD
447908	0	20000	0	12268	0	11025	0	16599	0	507800	0	0	0
GUIAB ROBIN MD
499957	0	0	0	258	0	13766	0	23643	0	537624	0	0	0
SHARP WENDY MD
493583	0	0	0	0	0	0	0	20349	0	513932	0	0	0
WOODRUFF ALEXIS M
505723	0	0	0	0	0	0	0	638	0	506361	0	0	0
CORBITT PATRICIA
44987	0	0	0	116024	0	0	0	10508	0	171519	0	0	0
BAILIFF ROBERT
298600	0	0	0	35583	0	0	0	14527	0	348710	0	0	0
SMITH PAUL
309141	0	0	0	37489	0	0	0	5007	0	351637	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (3 entries)

Return ReferenceReturnReference	ExplanationExplanation
PART I, LINE 1A	THE HOSPITAL PAYS DUES DIRECTLY TO THE COUNTRY CLUB ON BEHALF OF TWO OF THE HIGHEST COMPENSATED EMPLOYEES, JULIE BELL ($2,304) AND VALERIA GOUZD ($2,268). THESE DUES ARE INCLUDED IN TAXABLE COMPENSATION.
PART I, LINE 1B
PART I, LINES 4A-B	SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN PAYMENTS: PAUL MCDOWELL $72,151, SHERYL MAHANEY $49,096, PHILIP FIORET $94,103, LARRY HIGGINS $58,089, KRISTIE WHITLATCH $47,622. THE CEO AND VICE PRESIDENTS WHOSE BENEFIT IN THE QUALIFIED TAX SHELTERED ANNUITY PLAN IS LIMITED DUE TO THE IRS COMPENSATION AND BENEFIT LIMITS RECEIVE A BENEFIT RESTORATION CONTRIBUTION UNDER THE DEFERRED ANNUITY PLAN THAT IS PAID AS A TAXABLE DISTRIBUTION TO THE PARTICIPANT ANNUALLY. IN ADDITION, FRED JACKSON WILL BE PROVIDED WITH A LUMP SUM SUPPLEMENTAL RETIREMENT BENEFIT IF HE REMAINS EMPLOYED UNTIL AGE 62. THE LUMP SUM PAYMENT, WHEN COMBINED WITH ALL OTHER RETIREMENT BENEFITS, IS ESTIMATED TO PRODUCE A TARGET RETIREMENT INCOME REPLACEMENT EQUAL TO A PERCENTAGE OF FRED JACKSON'S FINAL AVERAGE PAY COMMENCING AT AGE 62. SEVERANCE PAYMENT: ROBERT BAILIFF AND PAUL SMITH RECEIVED SEVERANCE PAYMENTS OF $35,385 EACH. ELAINE CORBITT RECEIVED $115,840.

Schedule K IRS990ScheduleK

Form990 Schedule K Part I Form990ScheduleKPartI (3 entries)

Issuer EINIssuerEIN	CUSIP NumberCUSIPNumber	Date IssuedDateIssued	Issue PriceIssuePrice	Description Of PurposeDescriptionOfPurpose	DefeasedDefeased	On Behalf Of IssuerOnBehalfOfIssuer	Pool FinancingPoolFinancing
KENTUCKY ECONOMIC DEVELOPMENT AUTHORITY (KEDFA)
610600439	491269CG9	2008-09-24	146580000	REFUND PRIOR BOND ISSUES	0	0	0
KENTUCKY ECONOMIC DEVELOPMENT AUTHORITY (KEDFA)
610600439	491269CX2	2010-04-01	75000000	HEALTHCARE FACILITIES, BUILDING AND EQUIPMENT	0	0	0
CITY OF ASHLAND KENTUCKY
616001775	044293AA6	2010-04-01	32615000	REFUND SERIES 1998 BONDS	0	0	0

Form990 Schedule K Part II Form990ScheduleKPartII (3 entries)

Amount RetiredAmountRetired	Total ProceedsTotalProceeds	Issuance Costs From ProceedsIssuanceCostsFromProceeds	Capital ExpendituresCapitalExpenditures	Other Spent ProceedsOtherSpentProceeds	Year Of Subst CompletionYearOfSubstCompletion	Current RefundingCurrentRefunding	Final Allocation MadeFinalAllocationMade	Adequate Books And Recds MaintaindAdequateBooksAndRecdsMaintaind	Amount UnspentAmountUnspent
325000	145708338	1423351	12574982	131710005	2010	1	1	1
4555000	73885205	1170837	49322850			0	0	1	23391518
4440000	33986558	507546		33479012		1	1	1

Form990 Schedule K Part III Form990ScheduleKPartIII (2 entries)

Owning Bond Financed PropertyOwningBondFinancedProperty	Any Lease ArrangementsAnyLeaseArrangements	Mngment Cntrct Bond Financd PrprtyMngmentCntrctBondFinancdPrprty	Any Research AgreementsAnyResearchAgreements	Prcntge Prvt Business Use By OthersPrcntgePrvtBusinessUseByOthers	Percentage Of Prvt Business Re UBIPercentageOfPrvtBusinessReUBI	Total Private Business UseTotalPrivateBusinessUse	Post Issuance Compliance ProcdrsPostIssuanceComplianceProcdrs
0	0	0	0	0.00000	0.00000	0.00000	1
0	0	0	0	0.00000	0.00000	0.00000	1

Form990 Schedule K Part IV Form990ScheduleKPartIV (3 entries)

Form8038 T FiledForm8038TFiled	Variable Rate IssueVariableRateIssue	Hedge Identified In Books And RecdsHedgeIdentifiedInBooksAndRecds	Term Of HedgeTermOfHedge	Superintegrated HedgeSuperintegratedHedge	Hedge TerminatedHedgeTerminated	Gross Proceeds Invested In GICGrossProceedsInvestedInGIC	Gross Proceeds InvestedGrossProceedsInvested	Exception To RebateExceptionToRebate
JP MORGAN
0	1	1	22.500000000000	0	0	0	0	0
(no name)
0	0	0				0	0	0
(no name)
0	0	0				0	0	0

Form990 Schedule K Part VI Form990ScheduleKPartVI (4 entries)

IdentifierIdentifier	Return ReferenceReturnReference	ExplanationExplanation
PART II, LINE 3, ISSUE A	TOTAL PROCEEDS LISTED ON LINE 3 ARE NOT THE SAME AS THE ISSUE PRICE.	SERIES 2008C BOND DISCOUNT $871,662. ALSO, THE BOND ISSUES LISTED ON SCHEDULE K, PART I, LINE A CONSISTED OF THREE SERIES: SERIES 2008A, CUSIP 49126CG9, ISSUE PRICE 50,000,000 VARIABLE RATE ISSUE; SERIES 2008B, CUSIP 401269CH7, ISSUE PRICE 50,000,000, VARIABLE RATE ISSUE; SERIES 2008C, CUSIP 491269CJ3, ISSUE PRICE $46,580,000, FIXED RATE ISSUE.
PART II, LINE 3, ISSUE B	TOTAL PROCEEDS LISTED ON LINE 3 ARE NOT THE SAME AS THE ISSUE PRICE.	SERIES 2010A BOND DISCOUNT $1,318,161.05, OFFSET BY $203,266 INTEREST EARNED THROUGH SEPTEMBER 30, 2012.
PART II, LINE 3, ISSUE C	TOTAL PROCEEDS LISTED ON LINE 3 ARE NOT THE SAME AS THE ISSUE PRICE.	SERIES 2010B BOND PREMIUM $1,371,558.05
PART V	CURRENTLY IMPLEMENTING WRITTEN PROCEDURES	KING'S DAUGHTERS MEDICAL CENTER IS CURRENTLY IMPLEMENTING WRITTEN PROCEDURES TO ENSURE TIMELY IDENTIFICATION OF VIOLATIONS OF FEDERAL TAX REQUIREMENTS AND TIMELY CORRECTION OF ANY IDENTIFIED VIOLATIONS THROUGH USE OF THE VOLUNTARY CLOSING AGREEMENT PROGRAM WHEN SELF-REMEDIATION IS NOT AVAILABLE UNDER APPLICABLE REGULATIONS. IN ACCORDANCE WITH THE INSTRUCTIONS, BECAUSE KING'S DAUGHTERS MEDICAL CENTER HAD NOT ESTABLISHED WRITTEN PROCEDURES APPLICABLE TO FISCAL YEAR 2012, THE BOX HAS BEEN CHECKED "NO".

Schedule L IRS990ScheduleL

Form990 Schedule L Part IV Form990ScheduleLPartIV (6 entries)

RelationshipRelationship	Amount Of TransactionAmountOfTransaction	Description Of TransactionDescriptionOfTransaction	Sharing Of RevenuesSharingOfRevenues
ASHLAND AREA YMCA
TOM BURNETTE,BOARD DIRECTOR, IS ON THE BOARD OF ASHLAND AREA YMCA	387565	TOM BURNETTE IS ON THE ASHLAND AREA YMCA BOARD. ASHLAND HOSPITAL CORPORATION PAID THE YMCA VIA PAYROLL DEDUCTIONS FOR DUES FOR EMPLOYEES.	0
ASHLAND OFFICE SUPPLY
TOM BURNETTE, BOARD DIRECTOR, IS THE OWNER OF ASHLAND OFFICE SUPPLY	1861014	TOM BURNETTE IS OWNER OF ASHLAND OFFICE SUPPLY. THE HOSPITAL PURCHASES OFFICE SUPPLIES & EQUIPMENT FROM ASHLAND OFFICE SUPPLY.	0
SUSAN K SCHNEIDER
SISTER OF TRACY HILLMAN, BOARD DIRECTOR	32775	EMPLOYEE PAYROLL COMPENSATION FOR SUSAN SCHNEIDER	0
VAN ART PROPERTIES
SON OF JOHN STEWART, BOARD DIRECTOR, IS THE OWNER OF VAN ART PROPERTIES	433915	THE SON OF JOHN STEWART IS THE OWNER OF VAN ART PROPERTIES. THE HOSPITAL RENTS OFFICE SPACE FROM VAN ART PROPERTIES.	0
ANNE SLOAN
SISTER IN LAW OF JOHN STEWART, BOARD DIRECTOR	49915	EMPLOYEE PAYROLL COMPENSATION FOR ANNE SLOAN	0
ASHLAND ALLIANCE
JOHN STEWART, BOARD DIRECTOR, IS A BOARD MEMBER OF ASHLAND ALLIANCE	25879	JOHN STEWART IS A BOARD MEMBER OF ASHLAND ALLIANCE. THE HOSPITAL PAID CHAMBER OF COMMERCE DUES TO ASHLAND ALLIANCE.	0

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (10 entries)

Return ReferenceReturnReference	ExplanationExplanation	IdentifierIdentifier
FORM 990, PART VI, SECTION A, LINE 4	ASHLAND HOSPITAL CORPORATION (AHC) HAS HISTORICALLY SERVED AS THE PARENT ORGANIZATION OF A HEALTH CARE SYSTEM COMPRISED OF IT AND OTHER TAX-EXEMPT ORGANIZATIONS. IN 2010, KING'S DAUGHTERS HEALTH SYSTEM, INC. WAS FORMED AS A KENTUCKY NONPROFIT CORPORATION (KDHS) IN ANTICIPATION OF A CORPORATE RESTRUCTURING IN WHICH KDHS WOULD BECOME THE NEW PARENT ORGANIZATION FOR THE HEALTH CARE SYSTEM. IN 2011, KDHS APPLIED FOR AND OBTAINED A DETERMINATION LETTER FROM THE INTERNAL REVENUE SERVICE CONFIRMING KDHS' STATUS AS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE CODE AND AS A NON-PRIVATE FOUNDATION UNDER SECTION 509(A)(3) OF THE CODE. AHC ARTICLES AND BYLAWS WERE AMENDED IN FISCAL YEARS 2011 AND 2012 AS PART OF THIS RESTRUCTURING. THE INITIAL PHASE OF THE RESTRUCTURING BECAME EFFECTIVE ON JUNE 1, 2012 WHEN KDHS ACQUIRED CERTAIN VOTING AND APPROVAL RIGHTS AS THE SOLE CORPORATE MEMBER OF AHC. THE INITIAL KDHS BOARD WAS SUBSTANTIALLY IDENTICAL TO THE THEN BOARD OF DIRECTORS OF AHC, AND KDHS' ARTICLES AND BYLAWS PROVIDE THAT AT LEAST A MAJORITY OF THE ELECTED TRUSTEES OF KDHS ARE TO HAVE BEEN RESIDENTS OF EITHER BOYD COUNTY, KENTUCKY OR GREENUP COUNTY, KENTUCKY FOR AT LEAST TEN YEARS. IN CONNECTION WITH THE RESTRUCTURING, KDHS MAY ALSO REPLACE AHC AS THE SOLE CORPORATE MEMBER OF THE OTHER TAX-EXEMPT ORGANIZATIONS IN THE HEALTH CARE SYSTEM. PRIOR TO 2013, KDHS HAS NOT ENGAGED IN ANY SIGNIFICANT ACTIVITIES. AS THE NEW PARENT ORGANIZATION OF THE HEALTH CARE SYSTEM, KDHS HAS CERTAIN GOVERNANCE RIGHTS WITH RESPECT TO AHC. THOSE RIGHTS REQUIRE CERTAIN SIGNIFICANT AHC ACTIONS TO NOW ALSO BE APPROVED BY KDHS, INCLUDING, AMONG OTHERS, A CHANGE OF MEMBERSHIP OR SALE OF AHC, ELECTING OR REMOVING AHC'S DIRECTORS AND OFFICERS, AMENDING AHC'S ARTICLES AND BYLAWS, OR ANY BANKRUPTCY, LIQUIDATION OR DISSOLUTION OF AHC, INCLUDING THE TAX-EXEMPT ORGANIZATION TO WHOM AHC'S ASSETS ARE DISTRIBUTED UPON ITS DISSOLUTION. PRIOR TO JUNE 1, 2012, SUCH ACTIONS WOULD GENERALLY ONLY REQUIRE THE APPROVAL OF AHC'S BOARD OF DIRECTORS, OR, IN SOME LIMITED CASES, THE BOARD OF INCORPORATORS OF AHC. KDHS' BOARD OF TRUSTEES MAY IDENTIFY ADDITIONAL AHC ACTIONS THAT MUST BE APPROVED BY KDHS IN ADDITION TO THOSE SPECIFICALLY LISTED IN AHC'S ARTICLES AND BYLAWS. AHC'S AMENDED ARTICLES ALSO ELIMINATED THE BOARD OF INCORPORATORS, A GROUP OF INDIVIDUALS THAT HAD PREVIOUSLY ELECTED AHC'S BOARD OF DIRECTORS AND HAD TO APPROVE CERTAIN REAL ESTATE TRANSACTIONS. AHC'S AMENDED ARTICLES AND BYLAWS ALSO MADE CERTAIN CHANGES WITH RESPECT TO AHC'S BOARD AND BOARD COMMITTEES. FOR EXAMPLE, AHC'S BYLAWS NOW PROVIDE FOR A MINIMUM NUMBER OF 7 DIRECTORS WHILE ELIMINATING A MAXIMUM LIMIT OF 17 DIRECTORS. FURTHER, DIRECTORS NOW SERVE STAGGERED TERMS OF 4 YEARS INSTEAD OF 3 AND TERM AND AGE LIMITS FOR AHC DIRECTORS WERE ELIMINATED. THE ONLY EX-OFFICIO MEMBER OF THE AHC BOARD IS NOW AHC'S PRESIDENT/CEO. WITH RESPECT TO AHC BOARD COMMITTEES, THE CHAIR OF THE BOARD OF TRUSTEES OF KDHS IS TO CHAIR ANY AHC BOARD COMMITTEES, INCLUDING ITS AUDIT COMMITTEE AND PERSONNEL AND COMPENSATION COMMITTEE, UNLESS KDHS DETERMINES OTHERWISE. IN ADDITION, CERTAIN PROVISIONS IN AHC'S BYLAWS WITH RESPECT TO AHC'S PERSONNEL AND COMPENSATION COMMITTEE CONCERNING THE QUALIFICATIONS FOR DIRECTORS OF AHC AND EXECUTIVE COMPENSATION WERE REMOVED THOUGH AHC CONTINUES TO FOLLOW THE PROCEDURES FOR REVIEWING AND APPROVING EXECUTIVE COMPENSATION OUTLINED ELSEWHERE IN THIS FORM 990. WITH RESPECT TO THE OFFICERS OF AHC, A LAUNDRY LIST OF SPECIFIC DUTIES OF THE PRESIDENT/CEO OF AHC WAS ELIMINATED IN FAVOR OF A MORE GENERAL DESCRIPTION OF THE PRESIDENT/CEO'S RESPONSIBILITIES, WHICH INCLUDE OVERALL GENERAL ADMINISTRATIVE MANAGEMENT OF AHC AND SUCH OTHER DUTIES AS ARE INCIDENT TO THE OFFICE OR AS DETERMINED BY AHC'S BOARD. FURTHER, THE SECRETARY OF AHC NO LONGER NEEDS TO BE A MEMBER OF THE EXECUTIVE STAFF OF AHC. LASTLY, AHC'S AMENDED BYLAWS NOW SPECIFICALLY REQUIRE THE AHC BOARD TO ADOPT A CONFLICT OF INTEREST POLICY. THE AHC BOARD ALREADY HAD A CONFLICT OF INTEREST POLICY IN PLACE. THE TAX-EXEMPT, CHARITABLE PURPOSES OF AHC WERE NOT CHANGED IN THE AMENDED AND RESTATED ARTICLES OF AHC.
FORM 990, PART VI, SECTION A, LINE 6	AS NOTED IN THE RESPONSE TO PART VI LINE 4, DURING 2012, KDHS ACQUIRED CERTAIN VOTING AND APPROVAL RIGHTS AS THE SOLE CORPORATE MEMBER OF AHC.
FORM 990, PART VI, SECTION A, LINE 7B	AS NOTED IN THE RESPONSE TO PART VI LINE 4, DURING 2012, KDHS ACQUIRED CERTAIN VOTING AND APPROVAL RIGHTS AS THE SOLE CORPORATE MEMBER OF AHC. AS THE NEW PARENT ORGANIZATION OF THE HEALTH CARE SYSTEM, KDHS HAS CERTAIN GOVERNANCE RIGHTS WITH RESPECT TO AHC. THOSE RIGHTS REQUIRE CERTAIN SIGNIFICANT AHC ACTIONS TO NOW ALSO BE APPROVED BY KDHS, INCLUDING, AMONG OTHERS, A CHANGE OF MEMBERSHIP OR SALE OF AHC, ELECTING OR REMOVING AHC'S DIRECTORS AND OFFICERS, AMENDING AHC'S ARTICLES AND BYLAWS, OR ANY BANKRUPTCY, LIQUIDATION OR DISSOLUTION OF AHC, INCLUDING THE TAX-EXEMPT ORGANIZATION TO WHOM AHC'S ASSETS ARE DISTRIBUTED UPON ITS DISSOLUTION. KDHS' BOARD OF TRUSTEES MAY IDENTIFY ADDITIONAL AHC ACTIONS THAT MUST BE APPROVED BY KDHS IN ADDITION TO THOSE SPECIFICALLY LISTED IN AHC'S ARTICLES AND BYLAWS. WITH RESPECT TO AHC BOARD COMMITTEES, THE CHAIR OF THE BOARD OF TRUSTEES OF KDHS IS TO CHAIR ANY AHC BOARD COMMITTEES, INCLUDING ITS AUDIT COMMITTEE AND PERSONNEL AND COMPENSATION COMMITTEE, UNLESS KDHS DETERMINES OTHERWISE.
FORM 990, PART VI, SECTION B, LINE 11	THE 990 WILL BE REVIEWED IN DETAIL BY THE CFO AND CONTROLLER. AFTER THIS REVIEW, BUT BEFORE IT IS FILED WITH THE IRS, THE FINAL 990 WILL BE PROVIDED TO THE FULL BOARD OF DIRECTORS USING BOARD EFFECTS SOFTWARE. AN E-MAIL WITH A LINK TO THE POSTING WILL BE SENT TO EACH BOARD MEMBER ONCE THE REPORT HAS BEEN POSTED.
FORM 990, PART VI, SECTION B, LINE 12C	KING'S DAUGHTERS MEDICAL CENTER REQUIRES ALL DIRECTORS, OFFICERS, AND KEY EMPLOYEES TO COMPLY WITH ITS CONFLICTS OF INTEREST POLICY, WHICH TRACKS THE IRS'S RECOMMENDED POLICY WITH RESPECT TO SUCH OFFICERS AND DIRECTORS. MEMBERS OF THE MEDICAL CENTER'S BOARD OF DIRECTORS MUST ANNUALLY IDENTIFY, IN WRITING, ANY INTEREST THAT COULD GIVE RISE TO A CONFLICT, SUCH AS A LEADERSHIP POSITION IN A CONFLICTING ORGANIZATION; DISCLOSURE IS NOT LIMITED TO FINANCIAL CONFLICTS. LEADERSHIP EMPLOYEES MUST ANNUALLY CERTIFY, IN WRITING, THAT NO CONFLICTS OF INTEREST EXIST. IN ADDITION, EMPLOYEES OF THE MEDICAL CENTER MUST CERTIFY THAT NO CONFLICTS OF INTEREST EXIST OR OBTAIN AN ADVANCE WAIVER OF ANY CONFLICTS. THE MEDICAL CENTER'S GENERAL COUNSEL OBTAINS ALL RELEVANT DISCLOSURES AND SIGNATURES. IF A CONFLICT OF INTEREST IS REPORTED, THE VICE PRESIDENT OR SENIOR VICE PRESIDENT TO WHOM THE REPORTING EMPLOYEE DIRECTLY OR INDIRECTLY REPORTS, TOGETHER WITH THE CEO, DETERMINES IF A CONFLICT EXISTS. IF THE REPORTING EMPLOYEE IS A SENIOR VICE PRESIDENT, THE CEO, IN CONSULTATION WITH THE GENERAL COUNSEL, DETERMINES IF A CONFLICT EXISTS. A MEMBER OF THE MEDICAL CENTER'S BOARD OF DIRECTORS REPORTS ANY CONFLICT OR POTENTIAL CONFLICT TO THE CHAIRMAN OF THE BOARD, THE CEO AND/OR THE GENERAL COUNSEL OF THE MEDICAL CENTER, AS APPROPRIATE. IF IT IS DETERMINED THAT A CONFLICT EXISTS, THE EMPLOYEE OR BOARD MEMBER IS REMOVED FROM ANY PART OF THE DECISION-MAKING PROCESS, AND HAS NO ROLE IN THE INSTANCE IN WHICH THE CONFLICT EXISTS. A BOARD MEMBER WHO REPORTS A POTENTIAL OR ACTUAL CONFLICT OF INTEREST MUST ABSTAIN FROM ANY RELEVANT DISCUSSION OR VOTE. IF A CONFLICT OF INTEREST IS DISCOVERED AFTER THE FACT, THE CEO AND VICE PRESIDENT OR SENIOR VICE PRESIDENT, TOGETHER WITH THE GENERAL COUNSEL, IF APPROPRIATE, REVIEWS THE INSTANCE IN WHICH THE CONFLICT OCCURRED. THOSE LEADERS ENSURE THAT THE CONFLICTED INDIVIDUAL DID NOT INFLUENCE DECISION-MAKING OR PROFIT FROM THE CONFLICT. THE CONFLICTED INDIVIDUAL IS REMOVED FROM ANY FURTHER INVOLVEMENT. IN ADDITION, ANY FAILURE TO REPORT CONFLICTS OF INTEREST VIOLATES THE MEDICAL CENTER'S POLICY AND COULD RESULT IN DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION OF EMPLOYMENT OR REMOVAL FROM THE MEDICAL CENTER'S BOARD OF DIRECTORS.
FORM 990, PART VI, SECTION B, LINE 15	AT THE DIRECTION OF THE HUMAN RESOURCES & COMPENSATION COMMITTEE OF THE BOARD, KDMC ENGAGES AON HEWITT, A LEADING INDEPENDENT GLOBAL HUMAN CAPITAL AND COMPENSATION CONSULTING COMPANY TO ASSIST IN DETERMINING COMPENSATION OF THE CEO AND VICE PRESIDENTS. THIS IS AN ANNUAL PROCESS AND AON HEWITT'S MOST RECENT EXECUTIVE COMPENSATION REVIEW WAS PERFORMED IN 2012. AON HEWITT IS NOT ENGAGED IN ANY OTHER WORK WITH KDMC. THE PRINCIPLE OBJECTIVE OF THIS STUDY WAS TO ASSEMBLE A DETAILED PROFILE OF THE CURRENT COMPENSATION LEVELS AVAILABLE TO EXECUTIVES MANAGING SIMILAR TASKS AND RESPONSIBILITIES AS MEMBERS OF THE KDMC EXECUTIVE TEAM, AS AON HEWITT SELECTED OTHER KEY EXECUTIVE MANAGEMENT ROLES. MOREOVER, THE OBJECTIVE WAS TO COMPILE MARKET DATA FOR EACH POSITION THAT WAS REFLECTIVE OF THE PAY LEVELS OFFERED BY INDEPENDENT, NOT-FOR-PROFIT HEALTH CARE ORGANIZATIONS OF COMPARABLE SIZE (I.E., $500 MILLION IN ANNUAL REVENUE) WITH OPERATIONS IN THE UNITED STATES. THE AON HEWITT DATA COUPLED WITH THE PERFORMANCE OF THE ORGANIZATION AS WELL AS THE PERSONAL PERFORMANCE OF EACH EXECUTIVE IS THE BASIS FOR KDMC'S HUMAN RESOURCE & COMPENSATION COMMITTEE'S REVIEW AND RECOMMENDATIONS, AND THE BOARD'S REVIEW AND APPROVAL OF ANNUAL COMPENSATION INCREASES. THE PROCESS INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. THIS PROCESS WAS USED TO DETERMINE COMPENSATION FOR THE PRESIDENT/CEO AND ALL VICE-PRESIDENTS.
FORM 990, PART VI, SECTION C, LINE 19	ON A QUARTERLY BASIS, THE FINANCIAL STATEMENTS ARE REPORTED TO EMMA AND MADE AVAILABLE ON THEIR WEBSITE. GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST.
FORM 990, PART VII	AVERAGE HOURS PER WEEK FOR ASHLAND HOSPITAL CORPORATION AND ALL RELATED ORGANIZATIONS IS AS FOLLOWS: STEPHEN ADDINGTON - 0.8 HOURS JACK BLAIR - 0.8 HOURS TOM BURNETTE - 1.0 HOUR JIM CANTRELL - 0.6 HOURS DAN CASSIDY - 1.6 HOURS DONALD HAMMONDS - 40.6 HOURS ALEXANDER KRIVCHENIA - 2.6 HOURS RAYMOND MECCA - 0.8 HOURS JOHN STEWART - 0.8 HOURS DAVID JONES - 6.5 HOURS FRED JACKSON - 49.0 HOURS PAUL MCDOWELL - 48.3 HOURS SHERYL MAHANEY - 48.0 HOURS PHILIP FIORET - 40.3 HOURS LARRY HIGGINS - 41.5 HOURS KRISTIE WHITLATCH - 40.8 HOURS
FORM 990, PART XI, LINE 5:	NET UNREALIZED GAINS ON INVESTMENTS: 14,801,692. PENSION LIABILITY ADJUSTMENT -4,128,466. CHANGE IN MARKET VALUE INTEREST RATE SWAP -1,951,438. CHANGE IN MARKET VALUE SELF INSURANCE FUNDS 895,720. OTHER ADJUSTMENTS 79,556. CONTRIBUTIONS OF EQUIPMENT NOT REPORTED ON F/S -10,942. TOTAL TO FORM 990, PART XI, LINE 5: 9,686,122.	CHANGES IN NET ASSETS OR FUND BALANCES:
FORM 990, PART VI LINE 1A:	THE EXECUTIVE COMMITTEE OF THE AHC BOARD IS MADE UP OF THE FOLLOWING MEMBERS: DAVID JONES, CHAIR STEPHEN ADDINGTON, VICE CHAIR FRED JACKSON, CHIEF EXECUTIVE OFFICER JOHN STEWART, TRUSTEE TOM BURNETTE, TRUSTEE DR. RAYMOND MECCA, TRUSTEE JIM CANTRELL, TRUSTEE THE EXECUTIVE COMMITTEE SHALL BE COMPOSED OF THE TRUSTEES CHAIR, ANY VICE-CHAIRS, THE CHIEF EXECUTIVE OFFICER, AND ANY OTHER TRUSTEE RECOMMENDED BY THE CHAIR AND APPROVED BY THE TRUSTEES. THE TRUSTEES CHAIR SHALL SERVE AS CHAIR OF THE EXECUTIVE COMMITTEE. THE CHIEF EXECUTIVE OFFICER SHALL SERVE AS AN EX OFFICIO VOTING MEMBER OF THE EXECUTIVE COMMITTEE. THE EXECUTIVE COMMITTEE SHALL HAVE ALL POWERS AND AUTHORITY OF THE TRUSTEES TO TRANSACT ALL REGULAR BUSINESS OF THE CORPORATION, SUBJECT TO ANY LIMITATIONS IMPOSED BY THE TRUSTEES, THE BYLAWS OR BY APPLICABLE LAW. MEETINGS OF THE EXECUTIVE COMMITTEE SHALL BE HELD AS NEEDED. THE EXECUTIVE COMMITTEE SHALL FROM TIME TO TIME AS IT DETERMINES APPROPRIATE REVIEW AND RECOMMEND REVISIONS TO THE BYLAWS FOR CONSIDERATION AND APPROVAL BY THE TRUSTEES. THE EXECUTIVE COMMITTEE SHALL ALSO RECEIVE SUCH REPORTS AS THE COMMITTEE MAY DIRECT FROM THE EXECUTIVE OR ANY SIMILAR COMMITTEE OF THE BOARD OF DIRECTORS OF EACH AFFILIATED ORGANIZATION CONCERNING THE ACTIVITIES OF SUCH COMMITTEE AND PROVIDE PERIODIC REPORTS ON SUCH ACTIVITIES TO THE TRUSTEES.

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (9 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Business Name Line1DirectControllingEntityName/BusinessNameLine1	Controlled OrgControlledOrg	Direct Controlling Entity NADirectControllingEntityNA
ASHLAND NURSING HOME CORP
2500 STATE ROUTE 5	ASHLAND	KY	41102	611386016	NURSING HOME	KY	501(C)(3)	11-I	ASHLAND HOSPITAL CORPORATION	1
CHILD DEVELOPMENT CENTER CORP
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	010560598	CHILD CARE	KY	501(C)(3)	11-I	ASHLAND HOSPITAL CORPORATION	1
KENTUCKY HEART INSTITUTE
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	611255904	PHYSICIANS	KY	501(C)(3)	9	ASHLAND HOSPITAL CORPORATION	1
KENTUCKY HEART FOUNDATION
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	260791997	MEDICAL RESEARCH	KY	501(C)(3)	7	ASHLAND HOSPITAL CORPORATION	1
KENTUCKY MEDICAL LOGISTICS INC
2518 STATE ROUTE 5	ASHLAND	KY	41102	264736971	MEDICAL TRANSPORT	KY	501(C)(3)	9	ASHLAND HOSPITAL CORPORATION	1
KING'S DAUGHTERS HEALTH FOUNDATION INC
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	611035701	FUNDRAISING	KY	501(C)(3)	11-III-FI	ASHLAND HOSPITAL CORPORATION	1
KING'S DAUGHTERS HEALTH SYSTEM INC
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	274553836	HEALTHCARE	KY	501(C)(3)	11-II		1	N/A
KING'S DAUGHTERS MEDICAL SPECIALTIES INC
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	264183569	PHYSICIANS	KY	501(C)(3)	9	ASHLAND HOSPITAL CORPORATION	1
PORTSMOUTH HOSPITAL CORP
2201 LEXINGTON AVENUE	ASHLAND	KY	41101	453215312	HEALTHCARE	KY	501(C)(3)	3	ASHLAND HOSPITAL CORPORATION	1

Form990 Schedule R Part IV Form990ScheduleRPartIV

Name Of Related Org NameOfRelatedOrg

Field	Value	IRS element (for citing)
Business Name Line1	ASHLAND MEDICAL PROPERTIES INC	BusinessNameLine1

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	2201 LEXINGTON AVENUE	AddressLine1
City	ASHLAND	City
State	KY	State
ZIP Code	41101	ZIPCode

Field	Value	IRS element (for citing)
EIN	611079090	EIN
Primary Activity	RENTALS	PrimaryActivity
Legal Domicile State	KY	LegalDomicileState

Direct Controlling Entity Name DirectControllingEntityName

Field	Value	IRS element (for citing)
Business Name Line1	ASHLAND HOSPITAL CORPORATION	BusinessNameLine1

Field	Value	IRS element (for citing)
Type Of Entity	C	TypeOfEntity
Share Of EOY Assets	58416	ShareOfEOYAssets
Percentage Ownership	1.00000	PercentageOwnership

Field	Value	IRS element (for citing)
Receipt Of Int Ann Rents Royalties	1	ReceiptOfIntAnnRentsRoyalties
Gift Grant Or Cap Contr To Other Org	1	GiftGrantOrCapContrToOtherOrg
Gift Grant Or Cap Contr Fr Other Org	0	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	0	LoansOrGuaranteesFromOtherOrg
Sale Of Assets To Other Org	0	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	0	PurchaseOfAssetsFromOtherOrg
Exchange Of Assets	0	ExchangeOfAssets
Rental Of Facilities To Other Orgs	0	RentalOfFacilitiesToOtherOrgs
Rental Of Facilities Fr Other Orgs	0	RentalOfFacilitiesFrOtherOrgs
Perform Of Services For Other Orgs	0	PerformOfServicesForOtherOrgs
Perform Of Services By Other Orgs	0	PerformOfServicesByOtherOrgs
Sharing Of Facilities	0	SharingOfFacilities
Sharing Of Paid Employees	1	SharingOfPaidEmployees
Reimbursement Paid To Other Org	0	ReimbursementPaidToOtherOrg
Reimbursement Paid By Other Org	0	ReimbursementPaidByOtherOrg
Other Transfer To Other Org	1	OtherTransferToOtherOrg
Other Transfer From Other Org	1	OtherTransferFromOtherOrg

Transactions Related Orgs Table TransactionsRelatedOrgsTable (18 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
ASHLAND NURSING HOME CORP
Q	857920	ALL TRANSACTIONS BETWEEN
ASHLAND NURSING HOME CORP
R	895176	THE FILING ORGANIZATION AND
CHILD DEVELOPMEN CENTER CORP
Q	185344	RELATED COMPANIES ARE CAPTURED
KING'S DAUGHTERS HEALTH FOUNDATION INC
R	59121	IN THE DUE TO/FROM
KENTUCKY HEART FOUNDATION INC
A	28764	ACCOUNTS. THE TYPES OF
KENTUCKY HEART INSTITUTE INC
A	494856	TRANSACTIONS THAT HIT THIS
KENTUCKY HEART INSTITUTE INC
B	255537	ACCOUNT ARE TRACKED MONTHLY.
KENTUCKY HEART INSTITUTE INC
N	463610
KENTUCKY HEART INSTITUTE INC
Q	12323241
KENTUCKY MEDICAL LOGISTICS INC
Q	1103272
KENTUCKY MEDICAL LOGISTICS INC
R	500000
KING'S DAUGHTERS MEDICAL SPECIALTIES INC
A	339427
KING'S DAUGHTERS MEDICAL SPECIALTIES INC
B	179910
KING'S DAUGHTERS MEDICAL SPECIALTIES INC
N	102500
KING'S DAUGHTERS MEDICAL SPECIALTIES INC
Q	7997022
KENTUCKY HEART FOUNDATION INC
Q	138290
KENTUCKY MEDICAL LOGISTICS INC
B	78217
KING'S DAUGHTERS HEALTH SYSTEM
O	120000