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        <BusinessNameLine1>NASON HOSPITAL</BusinessNameLine1>
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        <AddressLine1>105 NASON DRIVE</AddressLine1>
        <City>ROARING SPRING</City>
        <State>PA</State>
        <ZIPCode>16673</ZIPCode>
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        <ManagementAndGeneral>594505</ManagementAndGeneral>
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        <Description>Med / Surg Supplies and Drugs</Description>
        <Total>3550915</Total>
        <ProgramServices>3550915</ProgramServices>
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      <OtherExpenses>
        <Description>Purchased Services</Description>
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        <ProgramServices>1555245</ProgramServices>
        <ManagementAndGeneral>983369</ManagementAndGeneral>
        <Fundraising>3955</Fundraising>
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      <OtherExpenses>
        <Description>Physician Fees</Description>
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        <ManagementAndGeneral>22937</ManagementAndGeneral>
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      <OtherExpenses>
        <Description>Bad Debts</Description>
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        <ProgramServices>101080</ProgramServices>
        <ManagementAndGeneral>295591</ManagementAndGeneral>
        <Fundraising>1159</Fundraising>
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      <TotalFunctionalExpenses>
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        <Fundraising>37686</Fundraising>
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      <FollowSFAS117>X</FollowSFAS117>
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        <EOY>1487370</EOY>
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        <EOY>15334900</EOY>
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      <TotalLiabNetAssetsFundBalances>
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      <InfoInScheduleOPartXI>X</InfoInScheduleOPartXI>
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      <ReconcilationOtherChanges>-137590</ReconcilationOtherChanges>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>false</AccountantCompileOrReview>
      <FSAudited>true</FSAudited>
      <AuditCommittee>true</AuditCommittee>
      <FinancialStatementBoth>X</FinancialStatementBoth>
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        <Description>Other Estimated Liabilities</Description>
        <Amount>1031300</Amount>
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      <TotalRevenuePerForm990>33468968</TotalRevenuePerForm990>
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      <ExpensesSubtotal>31229412</ExpensesSubtotal>
      <TotalExpensesPerForm990>31229412</TotalExpensesPerForm990>
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        <ReturnReference>8</ReturnReference>
        <Explanation>Grant/Donation Expenditures released from restrictions</Explanation>
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      <Form990ScheduleDPartXIV>
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        <Explanation>Investment Income, Pledge Income</Explanation>
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    <IRS990ScheduleH documentId="990H" softwareId="11000218" softwareVersion="2011.0.0">
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      <WrittenPolicy>true</WrittenPolicy>
      <FPGReferenceFreeCare>true</FPGReferenceFreeCare>
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      <FPGReferenceDiscountedCare>true</FPGReferenceDiscountedCare>
      <Pcent300>X</Pcent300>
      <FreeDiscCareMedicallyIndigent>true</FreeDiscCareMedicallyIndigent>
      <AmountsBudgetedForCharityCare>true</AmountsBudgetedForCharityCare>
      <ExpensesExceededBudget>true</ExpensesExceededBudget>
      <UnableToProvideCare>false</UnableToProvideCare>
      <AnnualCommunityBenefitReport>false</AnnualCommunityBenefitReport>
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        <NetCommunityBenefitExpense>512880</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.01740</PercentOfTotalExpense>
      </CharityCareAtCost>
      <UnreimbursedMedicaid>
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        <PercentOfTotalExpense>0.04630</PercentOfTotalExpense>
      </UnreimbursedMedicaid>
      <TotalCharityCare>
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        <PercentOfTotalExpense>0.06370</PercentOfTotalExpense>
      </TotalCharityCare>
      <CommunityHealthServices>
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      </CommunityHealthServices>
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        <PercentOfTotalExpense>0.00110</PercentOfTotalExpense>
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        <DirectOffsettingRevenue>3437594</DirectOffsettingRevenue>
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        <PercentOfTotalExpense>0.00150</PercentOfTotalExpense>
      </TotalOtherBenefits>
      <TotalCommunityBenefits>
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      <BadDebtExpenseReported>false</BadDebtExpenseReported>
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      <AmountReimbursedByMedicare>5947680</AmountReimbursedByMedicare>
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      <CostingMethodologyUsed>
        <Other>X</Other>
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      <WrittenDebtCollectionPolicy>true</WrittenDebtCollectionPolicy>
      <ProvisionForCharityCare>false</ProvisionForCharityCare>
      <NumberOfHospitalFacilities>1</NumberOfHospitalFacilities>
      <Form990ScheduleHPartVSectionA>
        <FacilityNumber>1</FacilityNumber>
        <Name>
          <BusinessNameLine1>Nason Hospital</BusinessNameLine1>
        </Name>
        <Address>
          <AddressLine1>105 Nason Drive</AddressLine1>
          <City>Roaring Spring</City>
          <State>PA</State>
          <ZIPCode>16673</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <GeneralMedicalAndSurgical>X</GeneralMedicalAndSurgical>
        <Er24Hours>X</Er24Hours>
      </Form990ScheduleHPartVSectionA>
      <Form990ScheduleHPartVI>
        <Identifier>Part I line 7</Identifier>
        <Explanation>G Costs to subsidize physician practices Nason OBGYN and Nason Pediatrics is listed here. Without Hospital subsidy the practices could not exist and patients would need to travel to other areas for these services.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part III line 4</Identifier>
        <Explanation>There is no specific footnote to the organizations financial statements that described bad debt expense. The Hospital reports patient accounts receivable for services rendered at net realizable amounts from third-party payers, patients and others. An allowance for doubtful accounts is calculated based upon a review of outstanding receivables, historical collection information and existing economic conditions. Patient balances are from primary liability and for insurance deductibles and copayments and are due when billed. Accounts are considered delinquent and subsequently written off as bad debts based on individual credit evaluation and specific circumstances of the account. Cost of bad debt expense is calculated by taking bad debt charges multiplied by the cost /charge ratio.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part III line 8</Identifier>
        <Explanation>Nason Hospital considers 100 of the Medicare shortfall to be a community benefit. Costing methodology is based on the Medicare Cost Report.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part III line 9b</Identifier>
        <Explanation>Patients who have previously qualified for charity or assistance are automatically granted it again within a six month period of the initial qualification. Otherwise, patients must apply to become newly eligible for charity or assistance.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part V</Identifier>
        <Explanation>Line 3 The Blair County Needs Assessment Steering Committee consists of representatives from Nason Hospital, Altoona Regional Health System, Tyrone Hospital, United Way of Blair County, Blair County Human Services Office, Blair County Commissioners Office, Pennsylvania Office of Attorney General, Operation Our Town, Altoona Campus of Pennsylvania State University, Altoona Area School District, Altoona Blair County Development Corporation, Blair County Drug and Alcohol Program, Inc., Altoona Area Public Library. Members participated in developing and analyzing the results of surveys of individuals, businesses, and service agencies. Four major focus areas were 1. Alcohol and Other Drugs, 2. Crime, 3. Economy, 4. Healthcare. In 2012 - 2013 the community is being re-surveyed to determine progress made to date and to develop new goals and strategies to accomplish them.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part V</Identifier>
        <Explanation>Line 4 The Needs Assessment was conducted with Altoona Regional Health System and Tyrone Hospital as well as the other community organization identified in Line 3.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part V</Identifier>
        <Explanation>Line 7 Due to the change in economic conditions from the original survey time in 2007 to now it was determined necessary to update the Needs Assessment and corresponding goals and actions for 2012 and beyond.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part V</Identifier>
        <Explanation>13 G Contact information is provided on patient statements for charity and financial assistance.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part V</Identifier>
        <Explanation>Lines 19 D, 20, 21 The Hospital issues Gross Charges to ALL payers on an equal basis. Charges are reduced for uninsured and those eligible for assistance by either the prompt pay discount or by eligibility under the Charity and Assistance Policies.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part VI Line 2</Identifier>
        <Explanation>NEEDS ASSESSMENT - Nason Hospital along with its parent Nason Foundation assesses the health care needs of its communities through CEO Meetings with area employers, participation in community volunteer organizations, meetings and discussions with medical staff members regarding services and specialties that are difficult to refer patients to. A Community Health Needs Assessment is being conducted with other regional providers for completion in fiscal 2012-2013.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part VI Line 3</Identifier>
        <Explanation>PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE - Nason Hospital informs its patients of the availability of Medicaid and other subsidized health insurance programs, and its Charity Care Policy through a brochure available in the Hospital, periodic notifications in the local newspaper, through in person and telephone consultations with patients, and communications in patient billing and collection activity.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part VI Line 4</Identifier>
        <Explanation>COMMUNITY INFORMATION - Nason Hospital primarily serves the communities in southern Blair and northern Bedford Counties along with the surrounding areas. Patients are of all ages from newborns to the elderly. There are several skilled nursing and personal care homes within the service area.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part VI Line 5</Identifier>
        <Explanation>PROMOTION OF COMMUNITY HEALTH - Nason Hospital is governed by a volunteer Board of Directors who reside in the communities it serves. All income generated is reinvested in the hospital through equipment purchases and upgrades, addition of new services, recruitment of needed providers to the community, subsidization of Obstetrics and Pediatric services to ensure their availability to the community.</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>Part VI Line 6</Identifier>
        <Explanation>AFFILIATED HEALTH CARE SYSTEM - Nason Hospital is not currently affiliated with another health care system. Potential affiliation discussions are occurring with other regional providers.</Explanation>
      </Form990ScheduleHPartVI>
    </IRS990ScheduleH>
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      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
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      <Form990ScheduleJPartII>
        <NamePerson>Steve Um</NamePerson>
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      <Form990ScheduleJPartII>
        <NamePerson>Michael Lettieri</NamePerson>
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        <NamePerson>John Baker</NamePerson>
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        <TotalCompensationFilingOrg>299295</TotalCompensationFilingOrg>
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        <NamePerson>Sarginger Larry</NamePerson>
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      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>Prebihilo Michael</NamePerson>
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      <GeneralExplanation>
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        <ReturnReference>5</ReturnReference>
        <Explanation>Changes in net assets consists of decrease in Temporarily Restricted-1,734 and Permanently Restricted Assets -154,717, Assets released from Temporary Restriction 61,551 Campaign Pledges Received -4,500, Net Unrealized Gain on Investments carried at MV -92,986, Transfers / Nason Nason Foundation 54,796</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
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        <Explanation>The Organization has no stated policy on review procedures.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
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        <ReturnReference>15a</ReturnReference>
        <Explanation>The organizations Board Executive Committee meets to review the CEOs contract and compensation arrangements. Survey data from area hospitals and similar size organizations is used in the determination of reasonableness.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990 Part VI</Identifier>
        <ReturnReference>15b</ReturnReference>
        <Explanation>The CEO makes recommendation to the Executive Committe for other top management officials compensation. Survey data from area hospitals and similar size organizations is used in the determination of reasonableness.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990 Part VI</Identifier>
        <ReturnReference>19</ReturnReference>
        <Explanation>Form 990 is made available upon request as required by law. Audited Financial Statements are available upon request. Governing documents of conflict of interest policy are not made available to the general public.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Form 990 Part XI Line 5 Changes in net assets consists of decrease in Temporarily Restricted-1,734 and Permanently Restricted Assets -154,717, Assets released from Temporary Restriction 61,551 Campaign Pledges Received -4,500, Net Unrealized Gain on Investments carried at MV -92,986, Transfers / Nason Nason Foundation 54,796 Form 990 Part VI Section B Line 11b The Organization has no stated policy on review procedures. Form 990 Part VI Section B Line 15a The organizations Board Executive Committee meets to review the CEOs contract and compensation arrangements. Survey data from area hospitals and similar size organizations is used in the determination of reasonableness. Form 990 Part VI Section B Line 15b The CEO makes recommendation to the Executive Committe for other top management officials compensation. Survey data from area hospitals and similar size organizations is used in the determination of reasonableness. Form 990 Part VI Section C Line 19 Form 990 is made available upon request as required by law. Audited Financial Statements are available upon request. Governing documents of conflict of interest policy are not made available to the general public.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
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        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>105 Nason Drive</AddressLine1>
          <City>Roaring Spring</City>
          <State>PA</State>
          <ZIPCode>16673</ZIPCode>
        </AddressUS>
        <EIN>251860035</EIN>
        <PrimaryActivities>Physician Services</PrimaryActivities>
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        <ExemptCodeSection>501c3</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>Nason Foundation</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>false</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>Nason Foundation</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>105 Nason Drive</AddressLine1>
          <City>Roaring Spring</City>
          <State>PA</State>
          <ZIPCode>16673</ZIPCode>
        </AddressUS>
        <EIN>251407194</EIN>
        <PrimaryActivities>Community Health Planning and Promotion</PrimaryActivities>
        <LegalDomicileState>PA</LegalDomicileState>
        <ExemptCodeSection>501c3</ExemptCodeSection>
        <PublicCharityStatus>11</PublicCharityStatus>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
        <ControlledOrg>false</ControlledOrg>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>true</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>true</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>false</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>false</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>false</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>false</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>false</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>false</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>false</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>false</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>false</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>false</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>false</SharingOfFacilities>
      <SharingOfPaidEmployees>false</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>false</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>false</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>true</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>true</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Nason Foundation</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>q</TransactionType>
        <AmountInvolved>42796</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Nason Physician Services</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>a</TransactionType>
        <AmountInvolved>76953</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>Nason Foundation</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>r</TransactionType>
        <AmountInvolved>12000</AmountInvolved>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>