BAPTIST HEALTHCARE SYSTEM INC: Form 990, tax year 2010

View the entire original 990 at ProPublica ↗

Organization: BAPTIST HEALTHCARE SYSTEM INC (EIN 61-0444707)
Tax period: 2010-09-01 to 2011-08-31
Filed: 2012-04-17
IRS object ID: 201211089349300416
Schema version: 2010v3.4
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	2012-04-17T11:11:56-05:00	Timestamp
Tax Period End Date	2011-08-31	TaxPeriodEndDate

Preparer Firm PreparerFirm

Preparer Firm Business Name PreparerFirmBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	Deloitte Tax LLP	BusinessNameLine1

Preparer Firm US Address PreparerFirmUSAddress

Field	Value	IRS element (for citing)
Address Line1	250 East Fifth Street Suite 1900	AddressLine1
City	Cincinnati	City
State	OH	State
ZIP Code	45202	ZIPCode

Field	Value	IRS element (for citing)
Return Type	990	ReturnType
Tax Period Begin Date	2010-09-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	610444707	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	Baptist Healthcare System Inc	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	BAPT	NameControl
Phone	5028965000	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	4007 Kresge Way	AddressLine1
City	Louisville	City
State	KY	State
ZIP Code	402074604	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	Carl G Herde	Name
Title	CFO	Title
Phone	5028965000	Phone
Date Signed	2012-04-16	DateSigned
Authorize Third Party	1	AuthorizeThirdParty

Preparer Preparer

Field	Value	IRS element (for citing)
Name	Alicia Janisch	Name
Phone	5137847100	Phone

Field	Value	IRS element (for citing)
Tax Year	2010	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Field	Value	IRS element (for citing)
Name Of Principal Officer Person	Tommy J Smith	NameOfPrincipalOfficerPerson

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	4007 Kresge Way	AddressLine1
City	Louisville	City
State	KY	State
ZIP Code	402074604	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	7005575498	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c3	X	Organization501c3
Web Site	www.bhsi.com	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	1918	YearFormation
State Legal Domicile	KY	StateLegalDomicile
Activity Or Mission Description	Provide quality healthcare servcies by enhancing the health of the people/communities we serve.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	23	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	18	NbrIndependentVotingMembers
Total Nbr Employees	10932	TotalNbrEmployees
Total Nbr Volunteers	1039	TotalNbrVolunteers
Total Gross UBI	1008389	TotalGrossUBI
Net Unrelated Business Txbl Income	247260	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	1452149	ContributionsGrantsPriorYear
Contributions Grants Current Year	1079118	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	1181716883	ProgramServiceRevenuePriorYear
Program Service Revenue CY	1252332725	ProgramServiceRevenueCY
Investment Income Prior Year	31157026	InvestmentIncomePriorYear
Investment Income Current Year	44405120	InvestmentIncomeCurrentYear
Other Revenue Prior Year	17056616	OtherRevenuePriorYear
Other Revenue Current Year	19803870	OtherRevenueCurrentYear
Total Revenue Prior Year	1231382674	TotalRevenuePriorYear
Total Revenue Current Year	1317620833	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	1490179	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	1343288	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	547167625	SalariesEtcPriorYear
Salaries Etc Current Year	577757045	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	606963655	OtherExpensePriorYear
Other Expenses Current Year	641766996	OtherExpensesCurrentYear
Total Expenses Prior Year	1155621459	TotalExpensesPriorYear
Total Expenses Current Year	1220867329	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	75761215	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	96753504	RevenuesLessExpensesCY
Total Assets BOY	1843570658	TotalAssetsBOY
Total Assets EOY	1973372046	TotalAssetsEOY
Total Liabilities BOY	724630078	TotalLiabilitiesBOY
Total Liabilities EOY	726972964	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	1118940580	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	1246399082	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	The mission of Baptist Healthcare System is to exemplify our Christian heritage of providing quality healthcare services by enhancing the health of the people and the communities we serve. The vision of Baptist Healthcare System is to be nationally recognized as the healthcare leader in Kentucky. Baptist Healthcare System will live out its Christ-centered mission and achieve its vision guided by: Integrity, Respect, Stewardship, Excellence and Collaboration.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	1107987682	Expense
Grants	1343288	Grants
Revenue	1261632127	Revenue
Description	Baptist Healthcare System, Inc. ("Baptist") is dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist include: Baptist Hospital East, Baptist Regional Medical Center, Central Baptist Hospital & Western Baptist Hospital. Baptist strives to continue its "Christian heritage of service and to enhance the health of the people and the communities we serve." Baptist is organized and operated exclusively for the benefit of each community and each hospital is considered a valuable community asset. Quantifiable benefits provided to the community for FY11 include the following: unreimbursed cost of charity care- $33,061,000, unreimbursed cost of Medicaid- $24,129,000, & benefits for the community- $14,784,000.	Description
Total Program Service Expense	1107987682	TotalProgramServiceExpense
Described In501 C3	1	DescribedIn501C3
Schedule B Required	1	ScheduleBRequired
Political Activities	0	PoliticalActivities
Lobbying Activities	1	LobbyingActivities
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	1	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	0	ReportInvestOthSecurities
Report Prog Rel Invest	1	ReportProgRelInvest
Report Other Assets	1	ReportOtherAssets
Report Other Liabilities	1	ReportOtherLiabilities
Report Fin48 Footnote	0	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	1	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	641	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	10932	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	23	NbrVotingGoverningBodyMembers
Number Independent Voting Members	18	NumberIndependentVotingMembers
Family Or Business Relationship	1	FamilyOrBusinessRelationship
Delegation Of Management Duties	0	DelegationOfManagementDuties
Changes To Organizing Docs	0	ChangesToOrganizingDocs
Material Diversion Or Misuse	0	MaterialDiversionOrMisuse
Members Or Stockholders	0	MembersOrStockholders
Election Of Board Members	0	ElectionOfBoardMembers
Decisions Subject To Approval	0	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	1	InvestmentInJointVenture
Written Policy Or Procedure	1	WrittenPolicyOrProcedure
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	Carl G Herde	BusinessNameLine1

Field	Value	IRS element (for citing)
Telephone Number	5028965000	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	4007 Kresge Way	AddressLine1
City	Louisville	City
State	KY	State
ZIP Code	402074604	ZIPCode

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

Form990 Part VII Section A Form990PartVIISectionA (37 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Individual Trustee Or DirectorIndividualTrusteeOrDirector	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	OfficerOfficer	Highest Compensated EmployeeHighestCompensatedEmployee
Robert Baker
Director	1.00	X	3000	0	0
William H Brigance
Director	1.00	X	3000	0	0
Victoria Buster
Director	1.00	X	3000	0	0
William T Daniel II MD
Director	1.00	X	3000	0	0
W Jeffrey Foxx MD
Director	1.00	X	3000	0	0
Frances V Hamilton
Director	1.00	X	3000	0	0
Brenda Hammons
Director	1.00	X	3000	0	0
Jeff Holland
Director	1.00	X	3000	0	0
Robert L Hook Jr
Director	1.00	X	3000	0	0
Chris Hutson
Director	1.00	X	3000	0	0
Lindsey Ingram Jr
Director	1.00	X	0	0	0
Glenn Leveridge
Director	1.00	X	0	0	0
John D Logan
Director	1.00	X	3000	0	0
Danny McMahan
Director	1.00	X	3000	0	0
Franks R Purdy III
Director	1.00	X	3000	0	0
Steven S Reed
Director	1.00	X	3000	0	0
James D Rickard
Director	1.00	X	3000	0	0
Edmund C Roberts Jr
Director	1.00	X	3000	0	0
Judge Eugene Siler Jr
Director	1.00	X	0	0	0
Don Walker
Director	1.00	X	3000	0	0
Dr Thelma White
Director	1.00	X	3000	0	0
Marcia Milby Ridings
Director	1.00	X	3000	0	0
Tom O Davis
Director	1.00	X	3000	0	0
Tommy J Smith Sch O
President	40.00		1164277	0	64320	X
William Sisson Sch O
Vice President	40.00		635536	0	85076	X
Larry Barton Sch O
Vice President	40.00		1106712	0	78896	X
Susan Stout Tamme Sch O
Vice President	40.00		599666	0	75875	X
John Henson
Vice President	40.00		656013	0	60374	X
Carl G Herde Sch O
Treasurer	40.00		606493	0	90094	X
Janet M Norton Sch O
Secretary	40.00		459137	0	50419	X
Mary Lou Tipgos
Assistant Secretary	40.00		133776	0	27358	X
David Gray
Vice President	40.00		0	429361	51409	X
John R Barton
Physician	40.00		541402	0	52534		X
John M O'Brien
Physician	40.00		531293	0	55033		X
Douglas A Milligan
Physician	40.00		518723	0	49476		X
David Rhodes
VP Human Resources	40.00		402802	0	53273		X
Bernard Tamme
VP Managed Care	40.00		400174	0	36698		X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	7816004	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	429361	TotalReportableCompFrmRltdOrgs
Total Other Compensation	830835	TotalOtherCompensation
Number Individuals GT100 K	294	NumberIndividualsGT100K
Formers Listed	0	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
Central KY Anesthesia
1800 Nicholasville Rd Ste 104	Lexington	KY	40504	Anesthesia Services	2240169
Consultants in Blood Disorders & Cancer
4003 Kresge Way Ste 500	Louisville	KY	40207	Practise Purchase	1787813
Anesthesiology of Paducah
2507 Broadway	Paducah	KY	42001	Anesthesia Services	1732335
Executive Health Resources
PO Box 822688	Philadelphia	PA	19182	Clinical Compliance	1693729
Williams & Wagner PSC
4000 Kresge Way	Louisville	KY	40207	Anesthesia Services	1450412

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	82	NumberOfContractorsGT100K
Related Organizations	254450	RelatedOrganizations
Government Grants	44467	GovernmentGrants
All Other Contributions	780201	AllOtherContributions
Total Contributions	1079118	TotalContributions

Program Service Revenue ProgramServiceRevenue (5 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue
Ins. & Patient Pmts.	621300	674900992	674116704	784288
Medicare/Medicaid Pmts	621300	555501548	555501548
Interco. Int./MOB Rent	900099	10747500	10747500
Other Program Svc. Rev	900099	7369133	7369133
Mgmt. Fees-Exempt Rev	561000	3813552	3813552

Field	Value	IRS element (for citing)
Total Program Service Revenue	1252332725	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	16013915	TotalRevenueColumn
Exclusion	$16,013,915	ExclusionAmount

Gross Amount Sales Assets GrossAmountSalesAssets

Field	Value	IRS element (for citing)
Securities	5716254245	Securities
Other	91625	Other

Less Cost Oth Basis Sales Expenses LessCostOthBasisSalesExpenses

Field	Value	IRS element (for citing)
Securities	5687724069	Securities
Other	230596	Other

Gain Or Loss GainOrLoss

Field	Value	IRS element (for citing)
Securities	28530176	Securities
Other	-138971	Other

Net Gain Or Loss Investments NetGainOrLossInvestments

Field	Value	IRS element (for citing)
Total Revenue Column	28391205	TotalRevenueColumn
Exclusion	$28,391,205	ExclusionAmount

Other Revenue Misc OtherRevenueMisc (3 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	ExclusionExclusionAmount	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome	Unrelated Business RevenueUnrelatedBusinessRevenue
Cafe & Coffee Shops	900099	6028994	$6,028,994
Purchasing Ptrshp Rev.	900099	3832479		3824767	7712
Day Care Centers	624410	2297937	$2,297,937

Miscellaneous Revenue MiscellaneousRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	7644460	TotalRevenueColumn
Related Or Exempt Function Income	6258923	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	216389	UnrelatedBusinessRevenue
Exclusion	$1,169,148	ExclusionAmount

Field	Value	IRS element (for citing)
Total Other Revenue	19803870	TotalOtherRevenue

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	1317620833	TotalRevenueColumn
Related Or Exempt Function Income	1261632127	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	1008389	UnrelatedBusinessRevenue
Exclusion	$53,901,199	ExclusionAmount

Grants To Domestic Orgs GrantsToDomesticOrgs

Field	Value	IRS element (for citing)
Total	1343288	Total
Program Services	1343288	ProgramServices

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	5636925	Total
Management And General	5636925	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	447385185	Total
Program Services	405106445	ProgramServices
Management And General	42278740	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	20323945	Total
Program Services	18174303	ProgramServices
Management And General	2149642	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	72726641	Total
Program Services	63989278	ProgramServices
Management And General	8737363	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	31684349	Total
Program Services	28333129	ProgramServices
Management And General	3351220	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	1501855	Total
Program Services	10569	ProgramServices
Management And General	1491286	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	183244	Total
Management And General	183244	ManagementAndGeneral

Fees For Services Lobbying FeesForServicesLobbying

Field	Value	IRS element (for citing)
Total	171839	Total
Management And General	171839	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	18483346	Total
Program Services	13193896	ProgramServices
Management And General	5289450	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	6135340	Total
Program Services	106358	ProgramServices
Management And General	6028982	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	46809368	Total
Program Services	42320108	ProgramServices
Management And General	4489260	ManagementAndGeneral

Information Technology InformationTechnology

Field	Value	IRS element (for citing)
Total	6778595	Total
Management And General	6778595	ManagementAndGeneral

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	20536002	Total
Program Services	19717319	ProgramServices
Management And General	818683	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	2568550	Total
Program Services	1643461	ProgramServices
Management And General	925089	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	347788	Total
Program Services	202479	ProgramServices
Management And General	145309	ManagementAndGeneral

Interest Interest

Field	Value	IRS element (for citing)
Total	13139468	Total
Program Services	13139468	ProgramServices

Payments To Affiliates PaymentsToAffiliates

Field	Value	IRS element (for citing)
Total	2459663	Total
Program Services	2252463	ProgramServices
Management And General	207200	ManagementAndGeneral

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	82358676	Total
Program Services	65348844	ProgramServices
Management And General	17009832	ManagementAndGeneral

Insurance Insurance

Field	Value	IRS element (for citing)
Total	8444395	Total
Program Services	8444395	ProgramServices

Other Expenses OtherExpenses (5 entries)

DescriptionDescription	TotalTotal	Program ServicesProgramServices	Management And GeneralManagementAndGeneral
Medical Supplies	294875929	294160454	715475
Bad Debts	73394618	73394618
Purchased Svc. Non-Med.	30158891	28135138	2023753
Provider Tax	20208938	20208938
Administrative	8981585	6918658	2062927

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	4228906	Total
Program Services	1844073	ProgramServices
Management And General	2384833	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	1220867329	Total
Program Services	1107987682	ProgramServices
Management And General	112879647	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	47896	BOY
EOY	38117	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	196711576	BOY
EOY	197045900	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	150961803	BOY
EOY	151528361	EOY

Inventories For Sale Or Use InventoriesForSaleOrUse

Field	Value	IRS element (for citing)
BOY	23107294	BOY
EOY	22713527	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	8499284	BOY
EOY	13990715	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	1601017323	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	941931954	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	653409173	BOY
EOY	659085369	EOY

Investments Pub Traded Securities InvestmentsPubTradedSecurities

Field	Value	IRS element (for citing)
BOY	593527885	BOY
EOY	646175299	EOY

Investments Program Related InvestmentsProgramRelated

Field	Value	IRS element (for citing)
BOY	92726081	BOY
EOY	133572539	EOY

Intangible Assets IntangibleAssets

Field	Value	IRS element (for citing)
EOY	13275904	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	124579666	BOY
EOY	135946315	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	1843570658	BOY
EOY	1973372046	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	133919580	BOY
EOY	132345796	EOY

Tax Exempt Bond Liabilities TaxExemptBondLiabilities

Field	Value	IRS element (for citing)
BOY	492724025	BOY
EOY	483385434	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	97986473	BOY
EOY	111241734	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	724630078	BOY
EOY	726972964	EOY

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

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	1116235321	BOY
EOY	1243827293	EOY

Temporarily Restricted Net Assets TemporarilyRestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	2705259	BOY
EOY	2571789	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	1118940580	BOY
EOY	1246399082	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	1843570658	BOY
EOY	1973372046	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	96753504	ReconcilationRevenueExpenses
Reconcilation Other Changes	30704998	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	1	GrantsOtherOrganizations
Grants Other Organizations	$83,924	GrantsOtherOrganizationsAmount
Direct Contact Legislators	1	DirectContactLegislators
Direct Contact Legislators	$87,915	DirectContactLegislatorsAmount
Rallies Demonstrations	0	RalliesDemonstrations
Other Activities	0	OtherActivities
Total Lobbying Expenditures IIB	171839	TotalLobbyingExpendituresIIB
Not Described In501c3	0	NotDescribedIn501c3

Schedule D IRS990ScheduleD

Current Year CurrentYear

Field	Value	IRS element (for citing)
Beginning Of Year Balance	596233194	BeginningOfYearBalance
Contributions	3759866	Contributions
Investment Earnings Or Losses	69420829	InvestmentEarningsOrLosses
Other Expenditures	18794907	OtherExpenditures
Administrative Expenses	1871845	AdministrativeExpenses
End Of Year Balance	648747137	EndOfYearBalance

Current Year Minus1 Year CurrentYearMinus1Year

Field	Value	IRS element (for citing)
Beginning Of Year Balance	556012808	BeginningOfYearBalance
Contributions	14427582	Contributions
Investment Earnings Or Losses	40798181	InvestmentEarningsOrLosses
Other Expenditures	13347504	OtherExpenditures
Administrative Expenses	1657873	AdministrativeExpenses
End Of Year Balance	596233194	EndOfYearBalance

Current Year Minus2 Years CurrentYearMinus2Years

Field	Value	IRS element (for citing)
Beginning Of Year Balance	638807978	BeginningOfYearBalance
Contributions	788978	Contributions
Investment Earnings Or Losses	-42097691	InvestmentEarningsOrLosses
Other Expenditures	40094347	OtherExpenditures
Administrative Expenses	1392110	AdministrativeExpenses
End Of Year Balance	556012808	EndOfYearBalance

Field	Value	IRS element (for citing)
Board Designated EOY Balance	0.99000	BoardDesignatedEOYBalance
Term Endowment EOY Balance	0.01000	TermEndowmentEOYBalance
Endowments Held By Unrelated Orgs	0	EndowmentsHeldByUnrelatedOrgs
Endowments Held By Related Orgs	0	EndowmentsHeldByRelatedOrgs

Land Land

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	82985174	OtherCostOrOtherBasis
Book Value	82985174	BookValue

Buildings Buildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	719930695	OtherCostOrOtherBasis
Depreciation	392907408	Depreciation
Book Value	327023287	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	761881319	OtherCostOrOtherBasis
Depreciation	549024546	Depreciation
Book Value	212856773	BookValue

Other Land Buildings OtherLandBuildings

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	36220135	OtherCostOrOtherBasis
Book Value	36220135	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	659085369	TotalOfBookValueLandBuildings

Investments Program Related InvestmentsProgramRelated (7 entries)

DescriptionDescription	Book ValueBookValue	Method Of ValuationMethodOfValuation
Investment in BCHS	23683747	C
Investment in BMA	33278485	C
Investment in WBMV	13209958	C
Investment in BPL	39284817	C
Investment in AEIX	9850892	C
Investment in BPS	5245437	C
Other	9019203	C

Field	Value	IRS element (for citing)
Total Of Book Value Program Related	133572539	TotalOfBookValueProgramRelated

Other Assets OtherAssets (6 entries)

DescriptionDescription	Book ValueBookValue
Other Current Assets	14953918
Due from Affiliates	59235676
Trustee Funds - Malpractice Agrmts.	43964824
Trustee Funds - Work Comp Agrmts.	12579933
Investments in Joint Ventures	1993783
Unamortized Issue Costs	3218181

Field	Value	IRS element (for citing)
Total Book Value Other Assets	135946315	TotalBookValueOtherAssets

Other Liabilities OtherLiabilities (4 entries)

DescriptionDescription	AmountAmount
Estimated Third Party Settlements	$15,004,419
Malpractice Liability	$59,069,515
Workers Comp. Liability	$13,294,753
Accrued Post Retirement/Misc.	$23,873,047

Field	Value	IRS element (for citing)
Total Of Amounts	111241734	TotalOfAmounts

Form990 Schedule D Part XIV Form990ScheduleDPartXIV

Field	Value	IRS element (for citing)
Identifier	Description of Intended Use of Endowment Funds:	Identifier
Return Reference	Part V, Line 4:	ReturnReference
Explanation	The endowment funds are used to support & enhance patient care at the hospitals, finance capital improvements and provide educational & financial assistance to hospital employees.	Explanation

Schedule H IRS990ScheduleH

Field	Value	IRS element (for citing)
Charity Care Policy	1	CharityCarePolicy
Written Policy	1	WrittenPolicy
Policy Applied To All Hospitals	X	PolicyAppliedToAllHospitals
FPG Reference Free Care	1	FPGReferenceFreeCare
Pcent200	X	Pcent200
FPG Reference Discounted Care	1	FPGReferenceDiscountedCare
Pcent400	X	Pcent400
Free Disc Care Medically Indigent	1	FreeDiscCareMedicallyIndigent
Amounts Budgeted For Charity Care	1	AmountsBudgetedForCharityCare
Expenses Exceeded Budget	0	ExpensesExceededBudget
Annual Community Benefit Report	1	AnnualCommunityBenefitReport
Report Publically Available	1	ReportPublicallyAvailable

Charity Care At Cost CharityCareAtCost

Field	Value	IRS element (for citing)
Persons Served	40540	PersonsServed
Total Community Benefit Expense	42310397	TotalCommunityBenefitExpense
Direct Offsetting Revenue	9249740	DirectOffsettingRevenue
Net Community Benefit Expense	33060657	NetCommunityBenefitExpense
Percent Of Total Expense	0.02880	PercentOfTotalExpense

Unreimbursed Medicaid UnreimbursedMedicaid

Field	Value	IRS element (for citing)
Persons Served	79569	PersonsServed
Total Community Benefit Expense	103358155	TotalCommunityBenefitExpense
Direct Offsetting Revenue	79229242	DirectOffsettingRevenue
Net Community Benefit Expense	24128913	NetCommunityBenefitExpense
Percent Of Total Expense	0.02100	PercentOfTotalExpense

Total Charity Care TotalCharityCare

Field	Value	IRS element (for citing)
Persons Served	120109	PersonsServed
Total Community Benefit Expense	145668552	TotalCommunityBenefitExpense
Direct Offsetting Revenue	88478982	DirectOffsettingRevenue
Net Community Benefit Expense	57189570	NetCommunityBenefitExpense
Percent Of Total Expense	0.04980	PercentOfTotalExpense

Community Health Services CommunityHealthServices

Field	Value	IRS element (for citing)
Persons Served	100195	PersonsServed
Total Community Benefit Expense	3142142	TotalCommunityBenefitExpense
Direct Offsetting Revenue	442334	DirectOffsettingRevenue
Net Community Benefit Expense	2699808	NetCommunityBenefitExpense
Percent Of Total Expense	0.00240	PercentOfTotalExpense

Health Professions Education HealthProfessionsEducation

Field	Value	IRS element (for citing)
Total Community Benefit Expense	387047	TotalCommunityBenefitExpense
Net Community Benefit Expense	387047	NetCommunityBenefitExpense
Percent Of Total Expense	0.00030	PercentOfTotalExpense

Subsidized Health Services SubsidizedHealthServices

Field	Value	IRS element (for citing)
Persons Served	43974	PersonsServed
Total Community Benefit Expense	79703274	TotalCommunityBenefitExpense
Direct Offsetting Revenue	68785239	DirectOffsettingRevenue
Net Community Benefit Expense	10918035	NetCommunityBenefitExpense
Percent Of Total Expense	0.00950	PercentOfTotalExpense

Cash And In Kind Contributions CashAndInKindContributions

Field	Value	IRS element (for citing)
Total Community Benefit Expense	779690	TotalCommunityBenefitExpense
Net Community Benefit Expense	779690	NetCommunityBenefitExpense
Percent Of Total Expense	0.00070	PercentOfTotalExpense

Total Other Benefits TotalOtherBenefits

Field	Value	IRS element (for citing)
Persons Served	144169	PersonsServed
Total Community Benefit Expense	84012153	TotalCommunityBenefitExpense
Direct Offsetting Revenue	69227573	DirectOffsettingRevenue
Net Community Benefit Expense	14784580	NetCommunityBenefitExpense
Percent Of Total Expense	0.01290	PercentOfTotalExpense

Total Community Benefits TotalCommunityBenefits

Field	Value	IRS element (for citing)
Persons Served	264278	PersonsServed
Total Community Benefit Expense	229680705	TotalCommunityBenefitExpense
Direct Offsetting Revenue	157706555	DirectOffsettingRevenue
Net Community Benefit Expense	71974150	NetCommunityBenefitExpense
Percent Of Total Expense	0.06270	PercentOfTotalExpense

Field	Value	IRS element (for citing)
Bad Debt Expense Reported	0	BadDebtExpenseReported
Bad Debt Expense	$19,261,891	BadDebtExpenseAmount
Amount Attributable To	7289000	AmountAttributableTo
Amount Reimbursed By Medicare	370836690	AmountReimbursedByMedicare
Cost Of Care Reimbursed By Medicare	415706766	CostOfCareReimbursedByMedicare
Medicare Surplus Or Shortfall	-44870076	MedicareSurplusOrShortfall

Costing Methodology Used CostingMethodologyUsed

Field	Value	IRS element (for citing)
Cost To Charge Ratio	X	CostToChargeRatio

Field	Value	IRS element (for citing)
Written Debt Collection Policy	1	WrittenDebtCollectionPolicy
Provision For Charity Care	1	ProvisionForCharityCare
Number Of Hospital Facilities	4	NumberOfHospitalFacilities

Form990 Schedule H Part V Section A Form990ScheduleHPartVSectionA (4 entries)

Facility NumberFacilityNumber	Address Line1Address/AddressLine1	CityAddress/City	StateAddress/State	ZIP CodeAddress/ZIPCode	Licensed HospitalLicensedHospital	General Medical And SurgicalGeneralMedicalAndSurgical	Er24 HoursEr24Hours
Baptist Hospital East
1	4000 Kresge Way	Louisville	KY	402074604	X	X	X
Baptist Regional Medical Center
2	1 Trillium Way	Corbin	KY	407018420	X	X	X
Central Baptist Hospital
3	1740 Nicolasville Rd	Lexington	KY	405031431	X	X	X
Western Baptist Hospital
4	2501 Kentucky Ave	Paducah	KY	420033813	X	X	X

Form990 Schedule H Part V Section B Form990ScheduleHPartVSectionB

Hospital Facility Name HospitalFacilityName

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

Field	Value	IRS element (for citing)
Hospital Facility Number	1	HospitalFacilityNumber

Form990 Schedule H Part VI Form990ScheduleHPartVI (12 entries)

ExplanationExplanation
Part I, Line 6a: Each hospital within Baptist Healthcare System (61-0444707) prepares a community benefit report. In addition, a summary community benefit report is prepared on a consolidated basis for all entities within Baptist Healthcare System, Inc.
Part I, Line 7: Baptist Healthcare System utilizes a sophisticated cost accounting system that identifies the cost of delivering care at the individual procedure and item (supply) level for direct costs and a detailed step-down methodology to allocate overhead costs as accurately as possible. Costs are determined for each patient based upon the specific procedures performed and items used for each patient. Patients are also categorized by:- Patient type (inpatient and outpatient),- Payer plan (42 unique categories of payer plans. Charity, State-sponsored charity and the Uninsured are among the uniquely identified payer plans), and- Clinical service (53 unique clinical services). The cost of care for uninsured patients who qualify for "full" charity care (under a State-sponsored or BHS sponsored charity program) is determined by calculating the cost of each uninsured charity patient (at the procedure and item level) and accumulating the cost of each patient.For insured patients who also qualify for partial charity under the Baptist Healthcare System sponsored charity program, costs are allocated to each portion (insurance, partial charity, patient payments and bad debt) using the patient's payer plan cost-to-charge ratio (CCR). For example, this CCR is multiplied by the charges covered by insurance to determine the cost of insurance, multiplied by charges covered by partial charity to determine the cost of partial charity, multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt.The cost of care for uninsured patients who do NOT qualify for charity care (full or partial bad debt accounts) are allocated to each portion (patient paid portion and unpaid portion) using the patient's uninsured payer plan CCR. For example, this CCR is multiplied by patient payments to determine the cost of paid services and multiplied by unpaid charges to determine the cost of bad debt.Much care is taken to ensure that costs used for community benefit reporting are directly related to exempt-purpose patient care (excluding physician-related costs) and that costs are reported accurately. For example, the cost of charity and Medicaid are removed from the calculation of the loss on subsidized services.
Part I, Line 7g: No physician clinic costs are included in the costs of subsidized health services.
Part I, L7 Col(f): The organization included bad debt expense of $73,394,618 on Form 990, Part IX, Line 25 but subtracted this amount for purposes of calculating the amount reported on Line 7f.
Part III, Line 4: A separate footnote for bad debt expense is not included in the audited financial statements.Costing methodology of bad debt is outlined in Schedule H, Part VI, Line 1.
Part III, Line 8: Medicare revenues and allowable costs were taken from the "as filed" Medicare cost report. Much care is taken to ensure that all adjustments to remove non-allowable costs are taken. Due to the fact that Medicare rates are non-negotiable and are established by the government, all of the shortfall for Medicare should be included as a community benefit.
Part III, Line 9b: Patients and guarantors who qualify for a "full" charity discount will not be billed once the charity determination is made. Patients and guarantors who qualify for a "partial" charity discount will be billed only for the non-discounted portion of their account.Guarantors who have an ability to pay for services will be billed based on the following guidelines.- Patients or guarantors may be asked to pay an estimated patient liability at point of service.- BHS facilities will accept and file claims for all insurances assigned to the organization with adequate proof of coverage. This assignment does not relieve the guarantor of responsibility for payment if the insurer fails to pay as prescribed by regulation, statute or patient-insurance contract. Deductibles, co-payments and non-covered services will be the responsibility of guarantors.- Statements will be sent to guarantors once patient liability is determined for insured or uninsured patients and necessary billing follow-up calls will be made by BHS Patient Financial Services and/or a designated external early out vendor over a period of time averaging from 90 to 120 days. All statements will contain information regarding the availability of financial assistance. If applicable, effort will be made to assist uninsured patients to secure coverage through any governmental or other assistance programs.- Patients requesting detailed charge information will be provided with an itemized bill.- BHS Patient Financial Services will provide all patients the same information concerning services and charges.- Patient accounts not resolved at the end of this cycle will be considered for placement with external collection agencies. Collection agencies will continue to pursue patient balances while maintaining compliance with the Fair Debt Collection Practices Act and the ACA International's Code of Ethics and Professional Responsibility.
Part VI, Line 2: Baptist Healthcare System (BHS) conducts a tri-annual planning process that is driven by the strategic vision to be the health care leader in Kentucky. Key industry and community issues (such as prominent health conditions present within each community, underserved areas and underprovided clinical services) are considered and analyzed for their impact on BHS and the four hospitals. Frequently, outside experts reaffirm the assessment and assist in the development of plans to address the community need. A course of action, including key strategies and goals, are shared with and approved by the BHS Board and the Hospital's administrative Boards.
Part VI, Line 3: Following is a list of various methods/processes used to inform/educate patients on the availability of financial assistance: - Financial counselors advise and/or screen uninsured patients before or during hospital services,- A third party vendor advises and/or screens uninsured patients during hospital services,- Financial counselors provide follow-up contact for patients missed during services,- The State-sponsored DSH form is provided to all ER uninsured patients,- Telephone calls and in-person visits are handled by staff trained to discuss financial assistance,- Information regarding financial assistance is included in patient statements.- The BHS sponsored charity care program policy is posted in key areas of each hospital.- The BHS sponsored charity care program policy is posted on the website of each hospital and the System.
Part VI, Line 4: Baptist Healthcare System is comprised of four regional hospitals. Each one serves a unique and separate geographic area within Kentucky. Baptist Hospital East (BHE) opened in 1975 and is located in St. Matthews, approximately five miles east of downtown Louisville area. BHE is strategically located near Interstate 64, a main access to downtown, and Interstate 264, a main beltway around Louisville. The primary geographic service area for BHE consists of Jefferson, Oldham and Bullitt Kentucky counties. BHE serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and comprehensive rehabilitation services that are much needed in the area. In addition, BHE operates one of the busiest emergency rooms in the State of Kentucky.Approximately 13.4% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 10.3%, as compared to the national average of 9.3%. Approximately 4% of the patients seeking care at BHE are Medicaid and approximately 4% are uninsured.Baptist Regional Medical Center (BRMC) opened in 1986 in Corbin, Kentucky. It is located one-half mile off of Interstate 75, approximately three miles from downtown Corbin and near U.S. Highway 25, which is a main access to several of the surrounding communities.The primary geographic service area for BRMC consists of the counties of Knox, Laurel and Whitley in Kentucky. BRMC serves as a general acute care facility, specializing in services such as psychiatric, substance abuse, comprehensive rehabilitation and emergency care services. The psychiatric program at BRMC has grown over the past several years and BRMC has plans to continue its growth. Approximately 48% of the psychiatric program serves the Medicaid and uninsured populations. Overall, approximately 28% and 11% of the patients seeking care at BRMC are Medicaid and uninsured, respectively.Approximately 13.5% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 11.0%, as compared to the national average of 9.3%. Central Baptist Hospital (CBH) opened in 1954 in Lexington, the second largest city in Kentucky. It is located approximately five miles from Interstate 75 and Interstate 64 which provide access for the immediate Lexington metro area patients as well as patients from other areas of central and eastern Kentucky which the hospital serves. The primary geographic service area for CBH consists of the Kentucky counties of Bourbon, Clark, Fayette, Franklin, Jessamine, Madison, Scott and Woodford. In addition, Central serves as a regional referral center with approximately 38% of its discharges coming from Kentucky counties outside of the primary service area. As such, CBH provides tertiary care services not offered by many hospitals in the surrounding areas including specialty cardiovascular, orthopedic and intensive care services. Approximately 9% and 4% of the patients seeking care at CBH are Medicaid and uninsured, respectively.Approximately 10.8% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 7.8%, as compared to the national average of 9.3%. Western Baptist Hospital (WBH) was opened in 1953 in Paducah, Kentucky, the largest city in Western's service area. The hospital is located approximately one and one-half miles from Interstate 24. Western is one of only two hospitals located in Paducah.The primary geographic service area for Western consists of Ballard, Carlisle, Graves, Livingston, Lyon, Marshall and McCracken counties in Kentucky and Massac County in Illinois. WBH draws nearly 83% of its discharges from the primary service area. WBH serves as a general acute care facility, specializing in services such as cardiovascular services, cancer care and skilled nursing that are much needed in the area. Approximately 13% and 7% of the patients seeking care at CBH are Medicaid and uninsured, respectively.Approximately 16.6% of the population of the local area surrounding the hospital is over 65 and the unemployment rate is 8.9%, as compared to the national average of 9.3%.
Part VI, Line 6: The BHS Board of Directors is comprised of local representatives who, along with the hospital's management and employees, understand that they are responsible to provide high quality health care services to the communities they serve. Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2011, because of its ability to produce a modest operating margin, BHS was able to re-invest nearly $89 million into the communities in new technology, construction, renovation and systems improvement. BHS hospitals reach out to the community in many ways through:- Conducting health fairs for local schools, businesses and churches.- Participating in fund-raising and other events to help local agencies such as the American Heart Association, Metro United Way, American Cancer Society, Big Brothers and Big Sisters and the American Red Cross.- Donating hospital space for community group meetings.- Participating on community health assessment teams that are dedicated to identifying and addressing local health needs in each of the counties we serve.- Hosting educational programs, including our pre-natal classes, and Safe Sitter program. - Maintaining necessary, but unprofitable services that meet community needs.- Helping to recruit physicians to underserved areas.- Helping patients coordinate services with other healthcare providers.- Providing resources for support groups, such as cancer recovery groups.- Promoting and providing preventive care services.- Monitoring clinical outcomes in order to ensure quality care.- Committing resources to improving safety and processes of care.- Providing services conveniently accessible by patients.In addition, BHS employees volunteer thousands of hours in community services and leadership. BHS's support for community activities underscores its commitment to improving the lives of those served. Because BHS and its employees contribute so much of their time, talents and resources to serve others, communities served by BHS are better places to live and work.Quantification of many of the community benefits is detailed elsewhere in this schedule. However, what the quantifiable amount doesn't measure is the economic benefit derived by the community from BHS being one of the major employers in the area. The economic impact of the wages paid to BHS employees is significant considering the dollars they spend on food, housing, services, and other products.The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received. BHS hospitals operate an Emergency Department that is open 24 hours a day, 365 days a year and treated over 165,336 emergency patients during fiscal year 2011. BHS and its emergency department posts policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient BHS may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, BHS does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention.
Part VI, Line 7: Baptist Healthcare System, Inc. is a nonprofit, tax-exempt organization that owns and operates four hospitals. Baptist Healthcare Affiliates, Inc. is a nonprofit, tax-exempt affiliate that owns and operates an additional hospital.Baptist Community Health Services, Inc. is a nonprofit, tax-exempt affiliate that owns and operates urgent care centers, and occupational and physical therapy clinics within the regions surrounding the hospitals.Baptist Medical Associates, Inc., Baptist Physicians Lexington, Inc., Baptist Physicians Southeast, Inc. and Western Baptist Medical Ventures, Inc. are nonprofit, tax-exempt affiliates that own and operate physician practices. Baptist Healthcare Foundation, Inc., Baptist Hospital Foundation of Greater Louisville, Inc., Central Baptist Hospital Foundation, Inc., Lexington Cardiac Research Foundation, Inc., and Western Baptist Hospital Foundation, Inc. are nonprofit, tax-exempt affiliate corporations. Bluegrass Family Health, Inc. (BFH) is a nonprofit, tax-exempt affiliate health maintenance organization. Baptist Ventures, Inc. is a for-profit, affiliate corporation. Baptist Physicians' Surgery Center is a for-profit limited liability corporation, of which Baptist Community Health Services, Inc. owns 51%. PET/CT Management, LLC is a for-profit limited liability corporation, of which Baptist Healthcare System, Inc. owns 76%. Corbin Long Term Acute Care, LLC is a limited liability corporation of which Baptist Community Health Services, Inc. is the sole member. Baptist Eastpoint Surgery Center, LLC is a limited liability company which as of August 31, 2010 Baptist Community Health Services, Inc. owns 77%. All entities are located in the Commonwealth of Kentucky. All entities described in Schedule H, Part VI, Line 7 contributed a combined community benefit amount as follows:Charity care at cost = $36,224,000Unreimbursed Medicaid = $30,223,000Community health improvement = $2,776,000Health professions education = $387,000Subsidized health services = $12,794,000Cash and in-kind contributions = $849,000Total community benefit = $83,253,000Other items that also contribute to the benefit of the community:Bad debt at cost = $24,079,000Unreimbursed Medicare = $67,535,000

Schedule I IRS990ScheduleI

Field	Value	IRS element (for citing)
Records Maintained	0	RecordsMaintained

Recipient Table RecipientTable (38 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EIN Of RecipientEINOfRecipient	IRC SectionIRCSection	Amount Of Cash GrantAmountOfCashGrant	Purpose Of GrantPurposeOfGrant
Baptist Hospital Foundation of Greater Louisville
4000 Kresge Way	Louisville	KY	40207	200292291	501(c)(3)	268034	General Support
Paducah Junior College
PO Box 7380	Paducah	KY	42002	616001156	501(c)(3)	100320	General Support
Western Baptist Hospital Foundation
2501 Kentucky Ave	Paducah	KY	42003	264057759	501(c)(3)	98297	General Support
University of Kentucky Hospital
PO Box 119	Lexington	KY	405010119		501(c)(3)	68667	General Support
Children's Charity Fund of the Bluegrass Inc
2724 Martinique Ln	Lexington	KY	40509	311078176	501(c)(3)	65753	General Support
Hope Center
PO Box 6	Lexington	KY	40588	611107296	501(c)(3)	50000	General Support
Kentucky Blood Center
3121 Beaumonth Ctr Cir	Lexington	KY	40513	616058138	501(c)(3)	50000	General Support
St Nicholas Family Clinic
1733 Broadway	Paducah	KY	42001	611260945	501(c)(3)	49300	General Support
Greater Paducah Economic Development Council
PO Box 1155	Paducah	KY	420021155	611181577	501(c)(6)	37500	General Support
Kentucky Baptist Convention
13420 Eastpoint Ctr Dr	Louisville	KY	40223	610549873	501(c)(3)	35570	Conference Co-sponsor
Refuge Ministries Inc
PO Box 25007	Lexington	KY	40524	371547506	501(c)(3)	35000	General Support
American Cancer Society
1504 College Way	Lexington	KY	40502	640329009	501(c)(3)	33430	General Support
American Heart Assoc
240 Whittington Pkwy	Louisville	KY	40222	135613797	501(c)(3)	32500	General Support
Lexington Strides ahead Commerce Lexington Inc
330 E Main St Ste 205	Lexington	KY	40507	611322448	501(c)(6)	20000	General Support
March of Dimes
196 W Lowry Lane	Lexington	KY	40503	131846366	501(c)(3)	17000	General Support
Project fit America
PO Box 308	Boyes Hot Springs	CA	95416	363730823	501(c)(3)	16350	General Support
American Diabetes Assoc
PO Box 21903	Lexington	KY	405221903	131623888	501(c)(3)	15500	General Support
Build Inc
PO Box 21874	Lexington	KY	405221874	611401584	501(c)(3)	15000	General Support
Greater Louisville Inc
614 W Main St Ste 600	Louisville	KY	40202	237084835	501(c)(4)	15000	General Support
Metro United Way
334 E Broadway	Louisville	KY	40202	610444680	501(c)(3)	14000	General Support
Lexington Affiliate of Susan Komen for the cure
PO Box 998	Lexington	KY	40588	752854969	501(c)(3)	13300	General Support
Fund for the Arts
623 W Main St	Louisville	KY	40202	610479626	501(c)(3)	13000	General Support
Four Rivers Center for the performing Arts
PO Box 2194	Paducah	KY	420022194	611293428	501(c)(3)	12600	General Support
Leadership Louisville
723 W Main St	Louisville	KY	40202	310958491	501(c)(3)	11500	General Support
Lexington Cancer Foundation
1504 College Way	Lexington	KY	40502	562472701	501(c)(3)	10700	General Support
Mission Lexington
1321 Trent Blvd	Lexington	KY	40517	202824933	501(c)(3)	10500	General Support
Paca Charity Ball
PO Box 2108	Richmond	KY	40475	510172717	501(c)(3)	10000	Charity Ball
Homes for Our Troops
6 Main St	Taunton	MA	02780	542143612	501(c)(3)	10000	Swings for Soldiers Classic
Christian Counseling Center
2840 Jefferson	Paducah	KY	42001	610607547	501(c)(3)	9939	General Support
Commerce Lexington
330 E Main St	Lexington	KY	40507	610258800	501(c)(6)	6000	General Support
Women leading KY
PO Box 961	Lexington	KY	40508	861120254	501(c)(3)	5000	General Support
Chrysalis House Inc
1589 Hill Rise Dr	Lexington	KY	40504	611012290	501(c)(3)	5000	General Support
CKRH
PO Box 13155	Lexington	KY	40583	311024505	501(c)(3)	5000	General Support
Leukemia and Lymphoma Society
600 E Main St Ste 102	Louisville	KY	402021077	135644916	501(c)(3)	5000	General Support
Lexington Habitat for Humanity
1260 Industry Rd	Lexington	KY	40505	611139529	501(c)(3)	5000	General Support
Celebration of Hope
700 Capitol Ave Ste 102	Frankfort	KY	40601	575947683	501(c)(3)	5000	General Support
Paducah Symphony
2101 Broadway	Paducah	KY	42001	610965156	501(c)(3)	5000	General Support
God's Pantry
1685 Jaggie Fox Way	Lexington	KY	40511	310979404	501(c)(3)	5000	General Support

Field	Value	IRS element (for citing)
Total Nbr Of501 C3 And Govt Grants	34	TotalNbrOf501C3AndGovtGrants
Total Nbr Of Other Organizations	4	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: Baptist Healthcare System provides only direct contributions and other general support; therefore, no monitoring of charitable contributions is performed.	Explanation

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Idemnification Gross Up Payments	X	IdemnificationGrossUpPayments
Written Policy Re T And E Expenses	1	WrittenPolicyReTAndEExpenses
Substantiation Required	1	SubstantiationRequired
Compensation Committee	X	CompensationCommittee
Independent Consultant	X	IndependentConsultant
Form990 Of Other Organizations	X	Form990OfOtherOrganizations
Written Employment Contract	X	WrittenEmploymentContract
Compensation Survey	X	CompensationSurvey
Board Or Committee Approval	X	BoardOrCommitteeApproval
Severance Payment	0	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
Tommy J Smith Sch O
878347	0	249744	0	36186	0	29534	0	34786	0	1228597	0	0	0
William Sisson Sch O
476107	0	92667	0	66762	0	59252	0	25824	0	720612	0	35138	0
Larry Barton Sch O
446038	0	81006	0	579668	0	50782	0	28114	0	1185608	0	554435	0
Susan Stout Tamme Sch O
472087	0	67183	0	60396	0	55990	0	19885	0	675541	0	28662	0
John Henson
331995	0	59659	0	264359	0	36943	0	23431	0	716387	0	242776	0
Carl G Herde Sch O
488643	0	92076	0	25774	0	59450	0	30644	0	696587	0	0	0
Janet M Norton Sch O
345496	0	73869	0	39772	0	21522	0	28897	0	509556	0	0	0
Mary Lou Tipgos
103326	0	25000	0	5450	0	10723	0	16635	0	161134	0	0	0
David Gray
0	354450	0	61583	0	13328	0	21522	0	29887	0	480770	0	0
John R Barton
541402	0	0	0	0	0	21522	0	31012	0	593936	0	0	0
John M O'Brien
531293	0	0	0	0	0	21522	0	33511	0	586326	0	0	0
Douglas A Milligan
518723	0	0	0	0	0	20052	0	29424	0	568199	0	0	0
David Rhodes
318477	0	59283	0	25042	0	24462	0	28811	0	456075	0	0	0
Bernard Tamme
308803	0	75930	0	15441	0	18582	0	18116	0	436872	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (2 entries)

Return ReferenceReturnReference

ExplanationExplanation

Part I, Line 1a

Five officers received gross-up payments which were included in taxable compensation.

Part I, Line 4b

During calendar year 2010, four officers of BHS received a payout from a Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan. The Plan is offered to a select group of management as determined by the BHS Executive Benefits Committee. The amounts paid during 2010 were previously reported as compensation on the 990 and were included in W-2 wages in 2010, reported in Schedule J, Part II, Column(F) and is a portion of the amount reported in Column B(iii). The following individuals received a payout from a Supplemental Executive Retirement Plan, a nonqualified deferred compensation plan: - Larry Barton - $554,435 - William Sisson - $35,138 - Susan Stout Tamme - $28,662 - John Henson - $242,776 In addition, all six officers who participate in the Supplemental Executive Retirement Plan accrued amounts for 2010 which is a portion of the amount reported as deferred compensation in Schedule J, Column C. Other retirement and deferred compensation reported in Schedule J, Column C include amounts for the Retirement Accumulation Plan and Thrift Plan. The following individuals participated in and accrued amounts from the Supplemental Executive Retirement Plan: - Tommy Smith - $3,602 - William Sisson - $33,320 - Susan Stout Tamme - $30,058 - Larry Barton - $29,260 - John Henson - $15,421 - Carl Herde - $34,988

Schedule K IRS990ScheduleK

Form990 Schedule K Part I Form990ScheduleKPartI

Issuer Name IssuerName

Field	Value	IRS element (for citing)
Business Name Line1	Ky Economic Development Finance Authority	BusinessNameLine1

Field	Value	IRS element (for citing)
Issuer EIN	610600439	IssuerEIN
CUSIP Number	49126KFM8	CUSIPNumber
Date Issued	2009-02-19	DateIssued
Issue Price	502227848	IssuePrice
Description Of Purpose	Redeem 1/99, 1/05 & 12/05 issues; acquire, construct & equipt a hospital	DescriptionOfPurpose
Defeased	0	Defeased
On Behalf Of Issuer	0	OnBehalfOfIssuer
Pool Financing	0	PoolFinancing

Form990 Schedule K Part II Form990ScheduleKPartII

Field	Value	IRS element (for citing)
Amount Retired	17195000	AmountRetired
Total Proceeds	502247678	TotalProceeds
Issuance Costs From Proceeds	4716995	IssuanceCostsFromProceeds
Credit Enhancement	697784	CreditEnhancement
Capital Expenditures	99994925	CapitalExpenditures
Other Spent Proceeds	396837974	OtherSpentProceeds
Year Of Subst Completion	2010	YearOfSubstCompletion
Current Refunding	1	CurrentRefunding
Advance Refunding	0	AdvanceRefunding
Final Allocation Made	1	FinalAllocationMade
Adequate Books And Recds Maintaind	1	AdequateBooksAndRecdsMaintaind

Form990 Schedule K Part III Form990ScheduleKPartIII

Field	Value	IRS element (for citing)
Owning Bond Financed Property	0	OwningBondFinancedProperty
Any Lease Arrangements	0	AnyLeaseArrangements
Mngment Cntrct Bond Financd Prprty	1	MngmentCntrctBondFinancdPrprty
Any Research Agreements	0	AnyResearchAgreements
Bond Counsel Routinely Engaged	1	BondCounselRoutinelyEngaged
Prcntge Prvt Business Use By Others	0.00100	PrcntgePrvtBusinessUseByOthers
Total Private Business Use	0.00100	TotalPrivateBusinessUse
Post Issuance Compliance Procdrs	1	PostIssuanceComplianceProcdrs

Form990 Schedule K Part IV Form990ScheduleKPartIV

Field	Value	IRS element (for citing)
Form8038 T Filed	0	Form8038TFiled
Variable Rate Issue	1	VariableRateIssue
Hedge Identified In Books And Recds	0	HedgeIdentifiedInBooksAndRecds
Gross Proceeds Invested In GIC	0	GrossProceedsInvestedInGIC
Gross Proceeds Invested	0	GrossProceedsInvested
Exception To Rebate	1	ExceptionToRebate

Form990 Schedule K Part V Form990ScheduleKPartV

Field	Value	IRS element (for citing)
Identifier	Schedule K, Part I:	Identifier
Return Reference	Explanation of Difference Between Issue Price:	ReturnReference
Explanation	Differences between the issue price shown in Part I and total proceeds shown in Part II is due to investment earnings.	Explanation

Schedule L IRS990ScheduleL

Form990 Schedule L Part IV Form990ScheduleLPartIV (8 entries)

RelationshipRelationship	Amount Of TransactionAmountOfTransaction	Description Of TransactionDescriptionOfTransaction	Sharing Of RevenuesSharingOfRevenues
Juanita Baker
A Director of BHS has a family member employed by BHS (Bob Baker)	10389	Wages	0
Nicole Jackson-Gary
A Director of BHS has a family member employed by BHS (Frances Hamilton)	37926	Wages	0
Family Practice Properties
A Director of BHS is an owner of Family Practice Properties (Jeffrey Foxx)	626679	Lease Agreement	0
BB&T Insurance Services
A Director of BHS is an officer of BB&T Insurance Services (Danny McMahan)	254407	Insurance Brokering Services	0
Baptist Physicians Surgery Center
An Officer of BHS is a board member of Baptist Phys Surg Ctr (W Sisson)	1007598	Lease Agreement	0
PETCT Management
An Officer of BHS is a board member of PET/CT Management (S Tamme)	1169103	Equipment Services	0
Baptist Eastpoint Surgery Center LLC
An Officer of BHS is a board member of Baptist Eastpoint Surg Ctr (S Tamme)	954892	Management Fees & Lease Agreement	0
Susan D White Consulting
A Director of BHS has a family member who is a vendor of BHS (V Buster)	127583	Consulting Services	0

Form990 Schedule L Part V Form990ScheduleLPartV

Field	Value	IRS element (for citing)
Identifier	Schedule L, Part IV:	Identifier
Return Reference	Business Transactions Involving Interested Persons:	ReturnReference
Explanation	All transactions reported on Part IV are reported as arms-length for fair market value.	Explanation

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (9 entries)

IdentifierIdentifier	ExplanationExplanation	Return ReferenceReturnReference
Form 990, Part VI, Section A, line 2	The Board of Directors is made up of executives from related organizations. The following individuals have a business relationship in that they serve on the Board of Directors of the organization and are officers and/or directors of a related organization: Tommy Smith, Larry Barton, John Henson, William Sisson, Susan Stout Tamme, Carl Herde, Janet Norton, David Gray, Robert Baker, Tom Davis, Robert Hook Jr, Lindsey Ingram Jr, Danny McMahan, Frank Purdy III, Eugene Siler Jr, Victoria Buster, John Logan, Chris Hutson, and Jeff Holland.
Form 990, Part VI, Section B, line 11	A copy of the 990 is provided to the board of directors prior to the filing of the return. Any questions or comments are addressed by explanation or a change to the form.
	Annually the secretary of Baptist Healthcare System, Inc. (BHS) sends out a conflict of interest questionnaire to each of the directors serving on the board of BHS. After completion, they are returned to the secretary and reviewed by her and the Board or a Board committee for any potential conflicts.	Form 990, Part VI, Section B, line 12c
	Annually, the Baptist Healthcare System, Inc. Compensation Committee reviews the compensation, including base compensation and incentive compensation for the CEO and all officers and key employees of Baptist Healthcare System, Inc. except for the Secretary and Assistant Secretary. Compensation for these employees is reviewed and approved by the CEO of Baptist Healthcare System, Inc. The Baptist Healthcare System, Inc. Compensation Committee is comprised of independent Board Members. The Committee retains a Compensation Consultant to advise the Committee and who provides data as to comparable compensation for similarly qualified persons in functionally comparable positions at similarly situated healthcare organizations. The Committee reviews this information in approving annual base and incentive compensation and other items of reportable compensation described on Schedule J of the IRS Form 990. The decisions of the Committee regarding compensation are contemporaneously documented in the minutes of the Committee. Annually, the Committee Chairperson and the Compensation Consultant provide a report on executive compensation to the full Board of Directors of Baptist Healthcare System, Inc.	Form 990, Part VI, Section B, line 15
	In adherence to the Master Trust Indenture among Baptist Healthcare System, Inc., Baptist Healthcare Affiliates, Inc. and U.S. Bank National Association, as Master Trustee, Dated as of February 1, 2009, Baptist Healthcare System, Inc. reports its financial results on a quarterly basis to the Master Trustee who in turn makes them available through Electronic Municipal Market Access. Additionally, the organization will provide any documents open to public inspection upon request.	Form 990, Part VI, Section C, line 19
Explanation of Hours for Officers:	Officers for Baptist Healthcare System, Inc. provide services to Baptist Healthcare System, Inc. and its subsidiaries. Hours worked are not tracked on an entity by entity basis. Therefore, all officers hours reported on Form 990, Part VII, Compensation of Officers, Directors, Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors represent aggregate hours worked per week for all entities.	Form 990, Part VII:
Changes in Net Assets or Fund Balances:	Net unrealized gains on investments: 29,886,988. Capital Distribution - Baptist Community Health Services 700,000. Capital Distribution - PET/CT Management, LLC 351,985. Capital Distribution - Paducah MRI 50,000. Funding for Strategic and Capital Needs -231,271. Post Retirement Change -52,704. Total to Form 990, Part XI, Line 5: 30,704,998.	Form 990, Part XI, line 5:
Community Benefit Report:	Since its inception in 1924, Baptist Healthcare System, Inc. ("Baptist") is dedicated to providing accessible, quality healthcare to all patients regardless of their ability to pay. The hospitals owned and operated by Baptist under tax identification number 61-0444707 include: Baptist Hospital East, Louisville, Kentucky Baptist Regional Medical Center, Corbin, Kentucky Central Baptist Hospital, Lexington, Kentucky Western Baptist Hospital, Paducah, Kentucky Vision: The vision of Baptist is to be the healthcare leader in Kentucky. Having earned a reputation of providing high quality patient care and utilizing the latest in medical technology, patients seek out Baptist facilities for their care. According to state statistics in 2010, Baptist is one of the largest healthcare providers in the state. Kentucky 2010 Hospital Statistics: Licensed Beds - 1,548 Beds - Second largest number of beds of any health system in Kentucky Employees - 11,037 Employees - One of the top employers in Kentucky Inpatient Care - 73,607 Admissions/347,566 Days - Largest number of admissions in Kentucky at a system-owned or managed hospital - One out of every eight inpatients receiving care in Kentucky received care at a system-owned or managed hospital Obstetric (Deliveries) - 9,059 Babies - Largest number of babies delivered in Kentucky at a system-owned or managed hospital - One in six babies in Kentucky was delivered at Baptist hospitals at a system-owned or managed hospital Cardiology (Open heart surgeries) - 842 Cases - Second largest number of open-heart surgeries performed by any system-owned or managed hospital in Kentucky - One in six open-heart surgeries in Kentucky was performed at a system-owned or managed hospital Emergency Visits - 165,336 Registrations - The largest number of emergency visits in Kentucky at a system-owned or managed hospital - One in thirteen ER patients was treated at a system-owned or managed hospital Outpatient Visits - 704,535 Hospital Visits - One in twelve outpatients in Kentucky receiving care in an acute-care setting was seen at a system-owned or managed hospital Mission: As indicated by its mission statement, Baptist strives to continue its "Christian heritage of service and to enhance the health of the people and the communities we serve." Baptist is organized and operated exclusively for the benefit of each community and each hospital is considered a valuable community asset. The Baptist Boards of Directors are comprised of local representatives who, along with the hospitals' management and employees, understand that they are responsible to the communities for providing high quality health care services. Over the years, Baptist has gained a reputation for providing compassionate, high quality, cost efficient, patient friendly care. Responsive to Community Need: Operating healthcare facilities in today's environment requires a delicate balance between producing a sufficient margin to allow for adequate staffing and investment in new technologies, while also providing enough resources to absorb the cost of care for those patients who do not have the ability to pay for the services. In 2011, because of its ability to produce a modest operating margin, Baptist was able to re-invest over $89 million into the communities in new technology, construction, renovation and systems improvement. Because of the need to generate a modest margin while caring for all patients, Baptist strives to fulfill its community responsibility of collecting appropriate reimbursement from all patients who have the necessary resources while providing a generous, yet accountable charity care policy to assist those patients who do not have the means to pay for the services rendered. (See "Charity Care Policy on the next page for further discussion). From a broad perspective, Baptist hospitals consistently provide a high level of quality care to every patient and enhance the health of the people it serves through health promotions, health screenings, medical research, and training of health professionals. Other community benefits include: - Maintaining necessary, but unprofitable services that meet community needs - Helping to recruit physicians to underserved areas - Helping patients coordinate services with other healthcare providers - Providing resources for support groups - Promoting and providing preventive care services - Monitoring clinical outcomes in order to ensure quality care - Committing resources to improving safety and processes of care - Providing services conveniently accessible by patients In addition, Baptist employees volunteer thousands of hours in community services and leadership. Baptist's support for community activities underscores its commitment to improving the lives of those served. Because Baptist and its employees contribute so much of their time, talents and resources to serve others, communities served by Baptist are better places to live and work. Quantification of many of the community benefits is detailed further in "Statement 8: Part III - Statement of Program Service Accomplishments". However, what the Statement of Program Service Accomplishments doesn't measure is the economic benefit derived by each community from Baptist being one of the largest employers in the state. The economic impact of the wages paid to Baptist employees is significant considering the dollars they spend on food, housing, services, and other products. Charity Care Policy: To further the mission of enhancing the health of the people and communities it serves, Baptist provides medically necessary inpatient and outpatient care to patients regardless of race, religion, sex, national origin, disability, age or their ability to pay. Recognizing that not all patients have the ability to pay, Baptist has a charity care policy to accurately evaluate a patient's ability to pay for services received. Baptist relies solely on the physician order to determine whether treatment is medically necessary and whether the patient is treated on an inpatient or outpatient basis. Neither the patient's financial condition nor their ability to pay for services has any bearing upon whether, or how, the patient is treated in a Baptist facility. Patients are transferred only when Baptist does not provide the specialized service that is required, or by specific request of the patient. Baptist has notices posted throughout the hospital that clearly communicate Baptist's charity care policy. Baptist employees are instructed in the application of the charity care policy and are trained to recognize situations that indicate the financial resources of a patient may be inadequate. These employees freely and willingly volunteer information regarding the charity care policy to any patient who may express a concern regarding the ability to pay for services. The policy provides that: 1. Patients/guarantors with resources of less than 200% of the Poverty Guideline for their family size will receive full charity. 2. Patients/guarantors with resources of 200% but less than 400% of the Poverty Guideline for their family size will qualify for partial charity. The ratio of resources up to 400% of the Poverty Guideline determines the percentage of the bill that will be the responsibility of the applicant. However, the liability is capped at 10% of the resources. 3. Patients/guarantors with resources of 400% of the Poverty Guideline for their family size but no more than 1200% of the Poverty Guideline for their family of one will qualify for partial charity if the liability exceeds 20% of their resources. In these situations, the patient/guarantor will be responsible for an amount not to exceed 20% of their resources. 4. If eligible for a charity discount, a patient will receive the discount regardless of whether they pay the balance on the bill. If necessary, payment arrangements may be made on the balance of the patient's bill in accordance with hospital procedures. If charity care eligibility cannot be determined, good stewardship requires that the hospital initially begin the collection process. However, immediately upon determining that the guarantor is eligible for charity care, collection efforts on the balance eligible for charity will cease and the appropriate balance will be designated as charity. Tax-Exempt Status Requirements: The Internal Revenue Service Revenue Ruling 69-545 provides that a hospital can demonstrate it has met the community benefit standard by having a full-time emergency room open to the public regardless of ability to pay for services received.	Form 990, Part III:
	Baptist operates Emergency Departments that are open 24 hours a day, 365 days a year and treated 165,336 emergency patients during fiscal year 2011. Baptist facilities and emergency departments post policies stating that patients will be treated regardless of their ability to pay. Depending on the severity of a patient's condition, as a service to the patient Baptist may verify insurance prior to rendering services in the emergency department. Under no circumstances is emergency care delayed by discussions regarding insurance coverage or ability to pay for services. In addition, Baptist does not convey or intimate in any way to any emergency medical transportation service an unwillingness to treat any particular patient in need of medical attention. Accountability to the Broader Community: As previously noted, the Baptist Board of Directors embraces its responsibility to represent the broader community in guiding Baptist in its provision of healthcare services. The Board meets periodically to provide oversight as to how best to continue to serve each community. Regularly scheduled meetings of the full Board and its Committees are described below: Board of Directors - Quarterly Audit Committee - Quarterly Executive Committee - Monthly Executive Compensation Sub-Committee - As needed Finance Committee - Monthly Governance Effectiveness Committee - Quarterly Hospital Administrative Boards - Monthly Legal Affairs Committee - Quarterly Quality and Mission Effectiveness Committee - Quarterly Physician Transaction Review Committee - As needed One of the key functions of the Board is to ensure Baptist not only utilizes sound financial management, but also embraces a culture of compliance that permeates throughout the healthcare system. This is best demonstrated by Baptist's commitment of resources for compliance activities including the designation of a Compliance Officer. The compliance function reports to the Audit Committee (established in 1994) which is comprised of three independent members of the Board who are not members of either the Executive or Finance Committees. Additionally, at least one member has the expertise to be considered a financial expert in the public sector. Another key function of the Board is to ensure that compensation paid to executives is reasonable and meets the guidelines set forth by the Internal Revenue Service. Through the Executive Compensation Sub-committee (ECS), the Board ensures that: 1. Members of the ECS do not have any conflicts of interest, i.e., they are not employed or receive compensation subject to approval by the executives 2. The compensation is approved in advance by the ECS 3. The ECS obtains and relies upon appropriate comparability data in making decisions 4. Every form of compensation and benefit is included in the comparisons 5. The ECS documents the basis for its decision concurrently with making the decision 6. Based upon the data, the compensation is reasonable. The following is a summary of Baptist's community service for the year ended August 31, 2011, in terms of services to the poor and indigent and the benefits provided to the communities it serves. Quantifiable Community Benefit: Baptist is fully committed to its responsibility as a charitable organization and commits extensive resources to fulfill that obligation to the community. To the extent possible, Baptist has quantified the benefits provided to the communities it serves: - Benefits for the Poor and Indigent: Unreimbursed Cost of Charity Care = $33,061,000 Unreimbursed Cost of Medicaid = $24,129,000 Total Benefits for the Poor and Indigent = $57,190,000 - Benefits for the Broader Community: Net Loss on Subsidized Health Services = $10,918,000 Community Health Improvement Services = $2,700,000 Health Professions Education = $387,000 Financial & In-Kind Contributions = $779,000 Total Benefits for the Community = $14,784,000 Total Quantifiable Community Benefit = $71,974,000 Glossary of Community Benefit Terms: - Benefits for the Poor and Indigent: Describes services provided to persons who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured. This includes those patients that qualify for Charity, Medicaid, Kentucky's Children Health Insurance Program (KCHIP), Kentucky Hospital Care Program (KHCP) and other citizens whose income is inadequate (based on each patient's individual circumstances). 1. Unreimbursed cost of charity care describes the services provided to persons who cannot afford to pay. It also includes the Health Care Provider Tax (Kentucky Revised Statutes 142.303) that is assessed on all hospital patient revenues received for the purpose of funding state Medicaid, KHCP and KCHIP programs. The amounts reflect the net cost of these services after reducing the costs for contributions and other revenues received by Baptist as direct assistance for the provision of care. 2. Unreimbursed cost of Medicaid reflects costs of treating Medicaid beneficiaries not reimbursed by government programs. - Benefits for the Broader Community: Describes services provided to other needy populations that may not qualify as indigent but that need special services and support. The benefits include the cost of health promotion and education, health clinics and screenings, and medical research that benefits the community. 1. Net loss on subsidized health services reflects the loss from services that would be discontinued if the decision were based on profit motives only. 2. Other community benefit includes costs incurred by Baptist in providing support and coordination of health education and awareness events as well as the cost of employees paid time to attend, staff, and coordinate these activities. 3. Baptist makes cash and in-kind donations on behalf of the poor and needy to community agencies and to special funds used for charitable purposes.

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (13 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
Baptist Healthcare Affiliates Inc
4007 Kresge Way	Louisville	KY	402074604	611226399	Hospital	KY	Section 501(c)(3)	Schedule A, Line 3	Baptist Healthcare System Inc	1
Baptist Community Health Services Inc
4007 Kresge Way	Louisville	KY	402074604	611141242	Medical Services	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1
Baptist Medical Associates Inc
4007 Kresge Way	Louisville	KY	402074604	205497203	Physician Services	KY	Section 501(c)(3)	Schedule A, Line 3	Baptist Healthcare System Inc	1
Baptist Physicians Lexington Inc
4007 Kresge Way	Louisville	KY	402074604	205494939	Physician Services	KY	Section 501(c)(3)	Schedule A, Line 3	Baptist Healthcare System Inc	1
Baptist Physicians Southeast Inc
4007 Kresge Way	Louisville	KY	402074604	260766344	Physician Services	KY	Section 501(c)(3)	Schedule A, Line 3	Baptist Healthcare System Inc	1
Western Baptist Medical Ventures Inc
4007 Kresge Way	Louisville	KY	402074604	611194899	Physician Services	KY	Section 501(c)(3)	Schedule A, Line 3	Baptist Healthcare System Inc	1
Baptist Healthcare Foundation Inc
4007 Kresge Way	Louisville	KY	402074604	311122867	Fundraising	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1
Baptist Hospital Foundation of Greater Louisville Inc
4000 Kresge Way	Louisville	KY	402074604	200292291	Fundraising	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1
Central Baptist Hospital Foundation Inc
1740 Nicholasville Rd	Lexington	KY	40503	611480774	Fundraising	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1
Lexington Cardiac Research Foundation Inc
1740 Nicholasville Rd	Lexington	KY	40503	204242792	Medical Research	KY	Section 501(c)(3)	Schedule A, Line 11a	Baptist Healthcare System Inc	1
Western Baptist Hospital Foundation Inc
2501 Kentucky Ave	Paducah	KY	42003	264057759	Fundraising	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1
Bluegrass Family Health Inc
651 Perimeter Park Ste 300	Lexington	KY	40517	611241101	Insurance	KY	Section 501(c)(4)		Baptist Healthcare System Inc	1
Mercy Regional Emergency Medical System LLC
126 Lone Oak Rd	Paducah	KY	42001	611310466	Ambulance Services	KY	Section 501(c)(3)	Scehdule A, Line 11a	Baptist Healthcare System Inc	1

Form990 Schedule R Part III Form990ScheduleRPartIII (5 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Direct Controlling Entity NADirectControllingEntityNA	Business Name Line1DirectControllingEntityName/BusinessNameLine1	Predominant Income TypePredominantIncomeType	Share Of Total IncomeShareOfTotalIncome	Share Of EOY AssetsShareOfEOYAssets	Disproportionate AllocationsDisproportionateAllocations	General Or Managing PartnerGeneralOrManagingPartner	Percentage OwnershipPercentageOwnership
Baptist EastMilestone LLC
750 Cypress Station Dr	Louisville	KY	40207	611355065	Fitness Center	KY	N/A
Baptist Physicians' Surgery Center LLC
1720 Nicholasville Rd 101	Lexington	KY	405031404	043665929	Ambulatory Surgery Center	KY	N/A
Baptist Eastpoint Surgery Center LLC
4000 Kresge Way	Louisville	KY	40207	260834852	Ambulatory Surgery Center	KY	N/A
Medical Associates of Middletown LLC
4000 Kresge Way	Louisville	KY	40207	200399400	Medical Office Building	KY		Baptist Healthcare System Inc	Related	25328	1266153	0	0	0.35000
PETCT Management LLC
7807 Shelbyville Rd Ste 201	Louisville	KY	40222	200154982	Mgmt. & Equipment Services	KY		Baptist Healthcare System Inc	Related	330915	625786	0	0	0.76130

Form990 Schedule R Part IV Form990ScheduleRPartIV (4 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivityPrimaryActivity	Legal Domicile StateLegalDomicileState	Business Name Line1DirectControllingEntityName/BusinessNameLine1	Type Of EntityTypeOfEntity	Share Of Total IncomeShareOfTotalIncome	Share Of EOY AssetsShareOfEOYAssets	Percentage OwnershipPercentageOwnership
Baptist Ventures Inc
4007 Kresge Way	Louisville	KY	402074604	611217018	Management Company	KY	Baptist Healthcare System Inc	C	458470	3788645	1.00000
Baptist East Medical Pavilion Association Inc
4000 Kresge Way	Louisville	KY	402074604	611423391	Condo Mgmt. Association	KY	Baptist Healthcare System Inc	C
BRMC Condominium Association Inc
1 Trillium Way	Corbin	KY	40701	611364766	Condo Mgmt. Association	KY	Baptist Healthcare System Inc	C
Baptist Health Network Inc
4007 Kresge Way	Louisville	KY	402074604	272939694	Accountable Care Organization	KY	Baptist Healthcare System Inc	C

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	1	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	1	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	1	RentalOfFacilitiesToOtherOrgs
Rental Of Facilities Fr Other Orgs	1	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	0	SharingOfPaidEmployees
Reimbursement Paid To Other Org	1	ReimbursementPaidToOtherOrg
Reimbursement Paid By Other Org	1	ReimbursementPaidByOtherOrg
Other Transfer To Other Org	1	OtherTransferToOtherOrg
Other Transfer From Other Org	1	OtherTransferFromOtherOrg

Transactions Related Orgs Table TransactionsRelatedOrgsTable (30 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
Baptist Ventures Inc
A	66026	Cost
Baptist Hospital Foundation of Greater Louisville
B	269034	Cost
PETCT Management LLC
B	41426	Cost
Baptist Health Network
B	328551	Cost
Western Baptist Hospital Foundation
C	13940	Cost
Baptist Hospital Foundation of Greater Louisville
C	240510	Cost
Baptist Ventures Inc
D	84273	Cost
Baptist Community Health Services Inc
I	2266494	Cost
Baptist Physicians Lexington Inc
I	603823	Cost
Baptist Physicians Lexington Inc
J	179330	Cost
PETCT Management LLC
O	1169103	Cost
Baptist Medical Associates Inc
O	5916254	Cost
Baptist Health Network
P	24750	Cost
Baptist Healthcare Affiliates Inc
P	5048093	Cost
Baptist Community Health Services Inc
P	3090606	Cost
Baptist Physicians Lexington Inc
P	3406239	Cost
Western Baptist Medical Ventures Inc
P	78633	Cost
Lexington Cardiac Research Foundation Inc
P	10000	Cost
Baptist Healthcare Affiliates Inc
Q	343482	Cost
Baptist Community Health Services Inc
Q	5843151	Cost
Western Baptist Medical Ventures Inc
Q	2008326	Cost
Baptist Medical Associates Inc
Q	9258288	Cost
Baptist Physicians Lexington Inc
Q	16277943	Cost
Baptist Physicians Southeast Inc
Q	3235153	Cost
Baptist Healthcare Affiliates Inc
R	3593367	Cost
Baptist Community Health Services Inc
R	700000	Cost
Baptist Hospital Foundation of Greater Louisville
R	61395	Cost
Baptist Ventures Inc
R	282419	Cost
PETCT Management LLC
R	351985	Cost
Lexington Cardiac Research Foundation Inc
R	120492	Cost