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      <Description>UT MEDICAL GROUP, INC. (THE GROUP) IS A NONPROFIT EDUCATIONAL, RESEARCH AND CHARITABLE ORGANIZATION INCORPORATED IN THE STATE OF TENNESSEE WHOSE ACTIVITIES ENCOMPASS THE DELIVERY OF HEALTH CARE BY THE FACULTY OF THE COLLEGE OF MEDICINE OF THE UNIVERSITY OF TENNESSEE HEALTH SCIENCE CENTER (UTHSC). THE GROUP OPERATES UNDER AN AFFILIATION AGREEMENT WITH UTHSC AND PROVIDES COMPREHENSIVE, HIGH QUALITY, MULTI-SPECIALTY HEALTH CARE TO ALL PATIENTS WHILE FULFILLING THE ACADEMIC, TEACHING AND RESEARCH RESPONSIBILITIES OF THE PROFESSIONAL EMPLOYEES (FACULTY PHYSICIANS).THE GROUP WAS COMPOSED OF TWENTY CLINICAL DEPARTMENTS AND CERTAIN ANCILLARY AND ADMINISTRATIVE DEPARTMENTS. THE CLINICAL DEPARTMENTS INCLUDE ADULT CARDIOVASCULAR INSTITUTE, ANESTHESIOLOGY, EMERGENCY MEDICINE, FAMILY MEDICINE, INTERVENTIONAL RADIOLOGY, MEDICINE, NEONATOLOGY, NEUROLOGY, OBSTETRICS AND GYNECOLOGY, OPHTHALMOLOGY, OTOLARYNGOLOGY, PEDIATRICS, PEDIATRIC CARDIOVASCULAR INSTITUTE, PEDIATRIC RADIOLOGY, PLASTIC SURGERY, PSYCHIATRY, RADIOLOGY, SURGERY, SOLID ORGAN TRANSPLANT INSTITUTE, AND UROLOGY. EFFECTIVE JANUARY 1, 2011, IN ORDER TO BETTER SERVE THE CHILD HEALTH NEEDS OF THE REGION, THE PEDIATRIC SUBSPECIALTIES WERE TRANSFERRED INTO A NEW NONPROFIT PEDIATRIC ACADEMIC PRACTICE PLAN UT LE BONHEUR PEDIATRIC SPECIALISTS, INC.THE RANGE OF SERVICES PROVIDED BY THE CLINICAL DEPARTMENTS INCLUDES PRIMARY CARE, SPECIALTY CONSULTATIONS, SUBSPECIALTY PROCEDURES AND DIAGNOSTIC EVALUATIONS, SURGICAL PROCEDURES (INCLUDING A TRANSPLANT PROGRAM) AND EMERGENCY CARE. HEALTH CARE SERVICES ARE DELIVERED IN NUMEROUS HOSPITAL AND CLINIC SETTINGS, INCLUDING INPATIENT AND OUTPATIENT CARE AT THE REGIONAL MEDICAL CENTER AT MEMPHIS (THE MED), LE BONHEUR CHILDREN'S HOSPITAL, MEMPHIS VA MEDICAL CENTER, METHODIST UNIVERSITY HOSPITAL, ST. JUDE CHILDREN'S RESEARCH HOSPITAL, ST. FRANCIS HOSPITAL, BAPTIST MEMORIAL HOSPITALS, AND OTHER LOCAL COMMUNITY HOSPITALS. THE GROUP'S FACULTY PHYSICIANS PROVIDE HEALTH CARE SERVICES TO PATIENTS OF THE CENTERS OF EXCELLENCE AT THE MED. THE CENTERS OF EXCELLENCE INCLUDE THE FOLLOWING: TRAUMA CENTER, BURN CENTER, WOUND CARE CENTER, HIGH RISK OBSTETRICS CENTER, NEWBORN CENTER, ADULT SPECIAL CARE, AND SICKLE CELL CENTER.DURING THE YEAR ENDED JUNE 30, 2011, THE GROUP HAD 689,000 PATIENT ENCOUNTERS IN INPATIENT, OUTPATIENT, AND CLINICAL SETTINGS. THE TRANSPLANT INSTITUTE SURGEONS PERFORMED 251 TRANSPLANTS DURING THE YEAR, INCLUDING TRANSPLANTS OF 132 LIVERS, 111 KIDNEYS, AND 8 PANCREASES. GROUP PHYSICIANS HAD 36,000 TRAUMA PATIENT ENCOUNTERS AT THE MED'S LEVEL ONE TRAUMA CENTER. GROUP PHYSICIANS WERE INVOLVED IN THE DELIVERIES OF OVER 3,900 BABIES AND COVERED OVER 16,700 SICK BABY DAYS AT THE NEWBORN CENTER. LE BONHEUR CHILDREN'S HOSPITAL HAS DEVELOPED A NUMBER OF VERY SPECIALIZED PEDIATRIC PATIENT CARE PROGRAMS FOR WHICH GROUP PHYSICIANS PROVIDED HEALTH CARE SERVICES. EXAMPLES OF THESE PROGRAMS INCLUDE CARDIOVASCULAR SURGERY, NEUROLOGY/EPILEPSY SERVICES, AND EXPANDED NEONATAL INTENSIVE CARE. GROUP FACULTY PHYSICIANS DURING THE SIX MONTHS FROM JULY 1 TO DECEMBER 31, 2010, COVERED OVER 13,000 PATIENT DAYS IN THE INTENSIVE CARE, NEONATAL INTENSIVE CARE, CARDIOVASCULAR INTENSIVE CARE, INFANT CARE, AND TRANSITIONAL CARE UNITS. THE GROUP'S CARDIOVASCULAR SURGEONS PERFORMED APPROXIMATELY 220 SURGERIES DURING THE SAME PERIOD, AND THE GROUP'S NEUROLOGISTS PERFORMED OVER 1,300 NEUROLOGICAL PROCEDURES.THE MEDICAL SERVICES PROVIDED BY THE GROUP ARE AVAILABLE TO THE COMMUNITY AS A WHOLE WITHOUT REGARD TO ABILITY TO PAY. MEDICARE, MEDICAID, AND TENNCARE PATIENTS ARE ACCEPTED. THE GROUP HAS AN AGREEMENT WITH THE MED, WHICH IS THE PUBLIC SAFETY NET HOSPITAL OF SHELBY COUNTY, TENNESSEE, THAT PROVIDES FOR THE DELIVERY OF PROFESSIONAL SERVICES TO INDIGENT PATIENTS, BOTH INPATIENT AND OUTPATIENT. IN ADDITION TO PATIENTS FROM SHELBY COUNTY, THE FACULTY PHYSICIANS AND OTHER PROFESSIONAL EMPLOYEES OF THE GROUP PROVIDE HEALTH CARE SERVICES TO OUT-OF-STATE RESIDENTS AND RESIDENTS OF FOREIGN COUNTRIES WHO HAVE LIMITED INCOMES. DURING THE YEAR OVER 50 PERCENT OF THE GROUP'S SERVICES WERE PROVIDED TO PATIENTS WITH TENNCARE, MEDICAID OR NO INSURANCE COVERAGE. ANOTHER 22 PERCENT WERE PROVIDED TO MEDICARE PATIENTS. 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      <Form990ScheduleDPartXIV>
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    </IRS990ScheduleJ>
    <IRS990ScheduleL documentId="RetDoc1042800001">
      <LoanTable>
        <NameBusiness>
          <BusinessNameLine1>DAVID M STERN</BusinessNameLine1>
        </NameBusiness>
        <LoanFromOrganization>X</LoanFromOrganization>
        <OriginalPrincipalAmount>30000</OriginalPrincipalAmount>
        <BalanceDue>30000</BalanceDue>
        <Default>0</Default>
        <ApprovedByBoard>0</ApprovedByBoard>
        <WrittenAgreement>1</WrittenAgreement>
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      <Form990ScheduleLPartV>
        <Identifier>PART II - (1)(F)</Identifier>
        <Explanation>DAVID M. STERN, MD WAS RECRUITED TO UT MEDICAL GROUP,INC. AND THE UNIVERSITY OF TENNESSEE HEALTH SCIENCE CENTER (UTHSC) TO BECOME THE NEW EXECUTIVE DEAN OF THE UTHSC COLLEGE OF MEDICINE AND CHAIRMAN OF THE BOARD OF UT MEDICAL GROUP, INC. AS PART OF HIS COMPENSATION PACKAGE AND WITH THE APPROVAL OF THE CHANCELLOR OF UTHSC AND THE EXECUTIVE LEADERSHIP OF UT MEDICAL GROUP, INC., DR. STERN RECEIVED $30,000 UNDER A SIGNED, FULLY EXECUTED MEMORANDUM OF OBLIGATION, WHICH CONTAINS THE REPAYMENT TERMS.</Explanation>
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    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>CHANGES IN PROGRAM SERVICES</Identifier>
        <ReturnReference>FORM 990, PART III, LINE 3</ReturnReference>
        <Explanation>THE PEDIATRIC PROVIDERS AND PRACTICE LEFT UTMG 12/31/10 AND BECAME PART OF UT LEBONHEUR PEDIATRIC SPECIALISTS, INC. (ULPS) 1/1/11.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 4</Identifier>
        <Explanation>UTMG AMENDED ITS BYLAWS IN FY12, ADDING REQUIRED LANGUAGE FROM THE NEW TENNESSEE NONPROFIT ACT, CHANGING SLIGHTLY THE MAKEUP OF THE BOARD AND COMMITTEES, CHANGING THE NAME OF THE AUDIT COMMITTEE, AND CLARIFYING SOME OF THE COMMITTEES' RESPONSIBILITIES.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 6</Identifier>
        <Explanation>ACCORDING TO ARTICLE II, SECTION 1 OF THE BYLAWS: THOSE PHYSICIANS WHO ARE DULY LICENSED TO PRACTICE MEDICINE IN THE STATE OF TENNESSEE AND THOSE CLINICAL PSYCHOLOGISTS WHO ARE DULY LICENSED IN THE STATE OF TN, WHO HAVE BEEN APPOINTED TO THE FACULTY OF THE UNIVERSITY OF TN, MEMPHIS COLLEGE OF MED, WHO ARE FULL TIME EMPLOYEES PURSUANT TO WRITTEN EMPLOYMENT AGREEMENTS WITH THE GROUP AND WHO HAVE OBTAINED AND MAINTAIN CREDENTIALED STATUS AS A PRACTITIONER OF THE GROUP IN ACCORDANCE WITH THE POLICIES OF THE BOARD OF DIRECTORS AND THE GROUP'S PROVIDER CREDENTIALING AND ENROLLMENT DEPARTMENT, SHALL BE MEMBERS OF THE GROUP.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 7A</Identifier>
        <Explanation>ACCORDING TO THE BYLAWS: THE MEMBERS OF THE GROUP ANNUALLY SHALL ELECT THE MEMBER DIRECTORS WHO WILL SERVE ON THE BOARD OF DIRECTORS AT AN ELECTION HELD IN ACCORDANCE WITH SECTION 3 OF ARTICLE III OF THE BYLAWS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION A, LINE 7B</Identifier>
        <Explanation>ACCORDING TO THE BYLAWS: THE MEMBERS SHALL ALSO HAVE THE RIGHT TO APPROVE OR DISAPPROVE THE DECISION OF THE BOARD OF DIRECTORS TO MERGE, LIQUIDATE, DISSOLVE OR TERMINATE THE GROUP, BY A VOTE OF 2/3 OF THE MEMBERS PRESENT OR REPRESENTED AT SUCH MEETING. THE MEMBERS SHALL ALSO HAVE THE RIGHT TO VOTE UPON SUCH MATTERS AS MAY BE PRESENTED TO THEM FROM TIME TO TIME BY THE BOARD OF DIRECTORS OR UPON SUCH MATTERS AS MAY BE PRESENTED BY A MAJORITY OF THE MEMBERS PRESENT OR REPRESENTED AT ANY ANNUAL OR SPECIAL MEETING OF THE MEMBERS; PROVIDED, HOWEVER, THAT ANY SUCH MATTERS ARE NOT VESTED EXCLUSIVELY, DIRECTLY OR INDIRECTLY, WITH THE BOARD OF DIRECTORS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FORM 990, PART VI, SECTION B, LINE 11</Identifier>
        <Explanation>UTMG'S BOARD OF DIRECTORS HAS DELEGATED THE 990 REVIEW PROCESS TO THE AUDIT COMMITTEE, WHICH IS A COMMITTEE OF THE BOARD. THIS COMMITTEE REVIEWS UTMG'S 990 &amp; 990-T AND APPROVES THE RETURNS BEFORE THEY ARE SIGNED BY THE CEO AND SUBMITTED TO THE IRS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>ANNUALLY THE OFFICERS AND DIRECTORS OF UT MEDICAL GROUP, INC. (UTMG) RECEIVE UTMG'S CONFLICT OF INTEREST POLICY AND A FORM THAT THEY COMPLETE AND SIGN ACKNOWLEDGING THAT THEY HAVE READ, UNDERSTAND, AND AGREE TO COMPLY WITH THE CONFLICT OF INTEREST POLICY. IN THE EVENT A POTENTIAL CONFLICT OF INTEREST WITH ANY OFFICER OR DIRECTOR ARISES, THE PROCESS FOR DISCLOSING THE ACTUAL OR POSSIBLE CONFLICT, DETERMINING IF ONE EXISTS, AND ADDRESSING A CONFLICT IS INCLUDED IN THE CONFLICT OF INTEREST POLICY AND IS FOLLOWED.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>FORMS 1023, 990, AND 990-T ARE MADE AVAILABLE UPON REQUEST. PAPER COPIES OF THE SPECIFIC DOCUMENTS ARE FORWARDED TO THE REQUESTING INDIVIDUALS. FORMS 990 AND 990-T ARE ALSO AVAILABLE ON GUIDESTAR.ORG. THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE UPON REQUEST. PAPER COPIES OF THE SPECIFIC DOCUMENTS ARE FORWARDED TO THE REQUESTING INDIVIDUALS. THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS AVAILABLE TO THOSE ENTITIES WITH A BUSINESS NEED.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5:</ReturnReference>
        <Explanation>UTMG NEPHROLOGY K-1 147,184. TOTAL TO FORM 990, PART XI, LINE 5: 147,184.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>PART XII, LINE 2C</ReturnReference>
        <Explanation>NO CHANGE FROM PRIOR YEAR</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartI>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>UNIVERSITY PRACTICE MANAGEMENT</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1407 UNION AVENUE SUITE 700</AddressLine1>
          <City>MEMPHIS</City>
          <State>TN</State>
          <ZIPCode>38104</ZIPCode>
        </AddressUS>
        <EIN>273733656</EIN>
        <PrimaryActivities>PROVIDE BILLING &amp; ADMIN SERVICES TO OTHER ACADEMIC MEDICAL PRACTICES</PrimaryActivities>
        <LegalDomicileState>TN</LegalDomicileState>
        <TotalIncome>2069519</TotalIncome>
      </Form990ScheduleRPartI>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>UTHSC COLLEGE OF MEDICINE</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>910 MADISON</AddressLine1>
          <City>MEMPHIS</City>
          <State>TN</State>
          <ZIPCode>38163</ZIPCode>
        </AddressUS>
        <EIN>626001636</EIN>
        <LegalDomicileState>TN</LegalDomicileState>
        <ExemptCodeSection>170(C)</ExemptCodeSection>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>INTERVENTIONAL ASSOCIATES OF MEMPHIS PC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1407 UNION AVENUE SUITE 700</AddressLine1>
          <City>MEMPHIS</City>
          <State>TN</State>
          <ZIPCode>381043641</ZIPCode>
        </AddressUS>
        <EIN>201082435</EIN>
        <LegalDomicileState>TN</LegalDomicileState>
        <ExemptCodeSection>501 (C)(3)</ExemptCodeSection>
        <PublicCharityStatus>LINE 3</PublicCharityStatus>
        <ControlledOrg>0</ControlledOrg>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>0</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>0</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>0</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>0</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>0</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>0</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>0</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>0</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>1</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>1</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>0</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>0</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>0</SharingOfFacilities>
      <SharingOfPaidEmployees>0</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>1</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>1</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>1</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>0</OtherTransferFromOtherOrg>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>UNIVERSITY OF TN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>I</TransactionType>
        <AmountInvolved>57654</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>UNIVERSITY OF TN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>J</TransactionType>
        <AmountInvolved>156131</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>UNIVERSITY OF TN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>O</TransactionType>
        <AmountInvolved>4507019</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>UNIVERSITY OF TN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>777234</AmountInvolved>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>UNIVERSITY OF TN-COLLEGE OF MED EDUCATION FUND SUPPORT</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>2054064</AmountInvolved>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>