2012-05-14T07:38:06-05:00 2011-06-30 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-07-01 561844262 MURPHY MEDICAL CENTER INC MURP 8288357505 4130 US HWY 64 EAST MURPHY NC 28906 STEVE GILGEN 8288357505 2012-05-11 1 AMY BIBBY 8282542254 2010 2016-02-24 21:20:13Z STEVE GILGEN 4130 US HWY 64 EAST MURPHY NC 28906 59853068 0 X HTTP://WWW.MURPHYMEDICAL.ORG/ X 1993 NC PROVIDING MEDICAL CARE TO THE COMMUNITY. 7 6 833 146 0 0 704940 778883 60841011 58702481 80628 59555 719369 184353 62345948 59725272 0 0 0 0 38765289 35837883 0 0 0 25721471 24452945 64486760 60290828 -2140812 -565556 51224031 48126306 15353540 12821371 35870491 35304935 TO HELP MAKE OUR COMMUNITY A HEALTHIER AND BETTER PLACE TO LIVE. 0 0 48194847 58246969 THE MISSION OF MURPHY MEDICAL CENTER, INC. IS TO ENSURE QUALITY HEALTHCARE TO THE RESIDENTS OF MURPHY, NC AND SURROUNDING COMMUNITIES. DURING FISCAL YEAR 06/30/11 THE MEDICAL CENTER PROVIDED 8,473 INPATIENT DAYS, 50,623 OUTPATIENT VISITS, 42,260 DAYS OF LONG TERM CARE, 12,598 URGENT CARE CENTER VISITS, 12,766 HOME HEALTH VISITS, AND RESPONDED TO 15,734 EMERGENCY ROOM VISITS. THE AMOUNT OF CHARITY CARE FOR THE YEAR WAS APPROXIMATELY $7,507,000. 48194847 1 1 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 148 0 1 833 1 0 0 0 0 0 0 0 0 0 0 X 7 6 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 NC X X STEVE GILGEN 8288357505 3990 E US HWY 64 ALT MURPHY NC 28906 JOHN CARRINGER 1.00 X X 0 0 0 BILL FORSYTH 1.00 X 0 0 0 DAVID HILTON 1.00 X 0 0 0 BILL HUGHES 1.00 X X 0 0 0 TOM O'BRIEN 1.00 X X 0 0 0 DANIEL STROUP 1.00 X 0 0 0 LARRY KERNEA 1.00 X 0 0 0 MIKE STEVENSON 40.00 X 212081 0 10489 STEVE GILGEN 40.00 X 156083 0 9171 TONI LOVINGOOD 40.00 X 147355 0 8623 MICHAEL LEE 40.00 X 324129 0 8522 JENKINS CLARKSON 40.00 X 292734 0 8806 LANEAN HAYES 40.00 X 354030 0 3605 BRENT DAVIS 40.00 X 676732 0 1331 CINDY FREED 40.00 X 295050 0 0 2458194 0 50547 30 0 1 0 PHOENIX PHYSICIANS 1501 NW 49TH ST STE 140 FORT LAUDERDALE FL 33309 ER PHYSICIAN COVERAGE 974677 DIXON HUGHES GOODMAN LLP PO BOX 3049 ASHEVILLE NC 28802 ACCOUNTING AND CONSULTING 228539 2 113000 665883 778883 NET PATIENT SERVICES R 621110 56302972 56302972 MEANINGFUL USE 900099 1624253 1624253 CAFETERIA INCOME 722210 320216 320216 REHABILITATION CENTER 621110 185296 185296 PHARMACEUTICAL SALES 446110 166987 166987 102757 102757 58702481 76761 76761 145369 29543 115826 115826 115826 7064 24270 -17206 -17206 -17206 80507 73983 6524 6524 MISCELLANEOUS 621110 34291 34291 VENDOR DISCOUNTS 621110 27712 27712 62003 59725272 58221802 0 724587 531202 265601 265601 28527407 22981286 5546121 4723008 3778406 944602 2056266 1645013 411253 45711 45711 137810 137810 516714 516714 3951315 3161052 790263 112213 112213 10753830 8603064 2150766 1172297 937838 234459 301911 241529 60382 241492 241492 3028407 3028407 880086 880086 BAD DEBT EXPENSE 3299864 3299864 MISCELLANEOUS 11295 11295 60290828 48194847 12095981 0 5130464 4632405 8613829 8776631 10826961 9147544 36000 469916 1321569 1268688 673969 663787 52624369 30859555 22923350 21764814 24995 127752 1672894 1274769 51224031 48126306 8003493 7602843 4648455 4318528 2701592 900000 15353540 12821371 X 35870491 35279935 25000 35870491 35304935 51224031 48126306 -565556 0 X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 631477 1373207 2004684 25352500 15568731 9783769 22582498 13867699 8714799 2684687 1423125 1261562 21764814 3RD PARTY SETTLEMENTS 900000 900000 59725272 60290828 -565556 0 -565556 59846004 0 59846004 -120732 -120732 59725272 60411560 120732 120732 60290828 0 60290828 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE SYSTEM HAS BEEN RECOGNIZED AS TAX-EXEMPT PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE SYSTEM ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH ASC TOPIC 740, INCOME TAXES ("ASC 740"); HOWEVER, DURING 2011 AND 2010, NO SIGNIFICANT TRANSACTIONS RESULTED UNDER ASC 740. ACCORDINGLY, NO PROVISION FOR STATE OR FEDERAL INCOME TAXES HAS BEEN PRESENTED IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. ASC 740 ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNDER ASC 740-10-25, THE SYSTEM MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES BASED ON THE TECHNICAL MERITS OF THE POSITION. ANY TAX POSITION RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. ASC 740 ALSO PROVIDES GUIDANCE ON DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES AND ACCOUNTING IN INTERIM PERIODS. THE SYSTEM HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF JUNE 30, 2011 AND 2010, RESPECTIVELY. FISCAL YEARS ENDING ON AND AFTER JUNE 30, 2008 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES. PART XII, LINE 4B - OTHER ADJUSTMENTS: LOSS FROM SALE OF ASSETS -17,206. RENTAL EXPENSES -29,543. GIFT SHOP EXPENSES -73,983. PART XIII, LINE 2D - OTHER ADJUSTMENTS: LOSS FROM SALE OF FIXED ASSETS 17,206. RENTAL EXPENSES INCLUDED IN REVENUE 29,543. GIFT SHOP EXPENSES 73,983. 1 1 1 X 1 X 1 1 1 0 1 1 3180578 3180578 0.05580 6760148 3470629 3289519 0.05770 9940726 3470629 6470097 0.11350 38339 2052 36287 0.00060 38339 2052 36287 0.00060 9979065 3472681 6506384 0.11410 2406 2406 0.00000 17117 17117 0.00030 148440 148440 0.00260 133502 133502 0.00230 301465 301465 0.00520 0 1398016 X 1 1 1 1 MURPHY MEDICAL CENTER

3990 E US HWY 64 ALT MURPHY NC 28906

X X X X NA FOR 2010 1 3 GOOD SHEPHERD HOME AND HEALTH HOSPICE

3990 EAST US HWY 64 ALT MURPHY NC 28906

HOSPICE URGENT CARE CENTER

183 LEDFORD STREET MURPHY NC 28906

URGENT CARE CENTER MURPHY GROUP PRACTICE

2076 HWY 69S HAYESVILLE NC 28904

GROUP PRACTICE PART I, LINE 7: THE ORGANIZATION UTILIZED THE IRS SCHEDULE H WORKSHEETS IN DETERMINING A COST TO CHARGE RATIO. PART I, L7 COL(F): THE TOTAL EXPENSE ON FORM 990, PART XI, LINE 25 CONTAINS A BAD DEBT EXPENSE OF 5,559,831 THAT HAS BEEN REMOVED FOR PURPOSES OF COMPUTING LINE 7, COLUMN R. PART II: THE ORGANIZATIONS EFFORT IN COMMUNITY BUILDING ACTIVITIES IMPROVE THE COMMUNITY IN THE FOLLOWING WAYS.ECONOMIC DEVELOPMENT - EMPLOYEES ATTEND REGULAR MEETINGS AND SERVE ON BOARDS SUCH AS THE JOB SERVICE EMPLOYEE COUNCIL AND CAREER AND TECHNICAL EDUCATION COUNCIL THAT HELP CREATE/RETAIN JOBS IN OUR SERVICE AREA.COMMUNITY SUPPORT - SPONSORSHIPS TO VARIOUS ORGANIZATIONS SUCH AS AMERICAN CANCER SOCIETIES, UNITED WAY, HAVEN (A CHILD ADVOCACY PROGRAM) , NC FOUNDATION FOR ADVANCED HEALTH PROGRAMS, AND NC HEALTH PHYSICIANS PROGRAM. SPONSORED A LOCAL GOLF TOURNAMENT BENEFITING THE JUVENILE DIABETES RESEARCH FOUNDATION. DONATED FOOD MONTHLY TO A LOCAL HOMELESS SHELTER. PROVIDED MEALS DURING CME COURSES FOR COMMUNITY PHYSICIANS. SPONSORED A COMMUNITY YARD SALE FOR FINANCIALLY CHALLENGED FAMILIES WITH SMALL CHILDREN.COMMUNITY HEALTH IMPROVEMENT ADVOCACY - ALLOW LOCAL HIGH SCHOOL STUDENTS PLANNING TO ENTER THE HEALTH CARE FIELD TO SHADOW VARIOUS EMPLOYEES IN CERTAIN DEPARTMENTS; AWARDED 21 SCHOLARSHIPS TO LOCAL GRADUATING HIGH SCHOOL STUDENTS PLANNING TO ENTER THE HEALTH CARE FIELD; ALLOW EMPLOYEES TO DONATE BLOOD DURING WORK DAY; FREE RENT AND UTILITIES IN A VACANT DOCTOR'S OFFICE FOR A GOODWILL STORE OFFERED THROUGH SOCIAL SERVICES FOR FOSTER PARENTS/CHILDREN; FREE RENT FOR A DENTAL CLINIC.WORKFORCE DEVELOPMENT - PHYSICIAN RECRUITMENT PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOT NOTE ON BAD DEBT. THE COST TO RATIO WAS CALCULATED USING THE IRS SCHEDULE WORKSHEETS. THE ORGANIZATION IS NOT INCLUDING ANY AMOUNT OF BAD DEBT AS COMMUNITY BENEFIT IN THIS REPORT. PART III, LINE 9B: IF PATIENTS MEET THE QUALIFICATIONS IN REGARDS TO OUR CHARITY CARE POLICY THEY ARE GIVEN CHARITY CARE. THE ORGANIZATION USES FINANCIALS COUNSELORS TO DETERMINE THIS ELIGIBILITY. PART VI, LINE 2: MURPHY MEDICAL CENTER WORKS WITH COUNTY HEALTH DEPARTMENTS AND COUNTY GOVERNMENT TO DETERMINE HEALTH CARE NEEDS IN THE COMMUNITY. INPUT IS ALSO SOLICITED FROM SURROUNDING PHYSICIANS REGARDING APPROPRIATE SERVICES FOR THE AREA. PART VI, LINE 3: THE HOSPITAL NOTIFIES PATIENTS WHEN THEY REGISTER THAT WE HAVE A CHARITY CARE POLICY. THE HOSPITAL THEN USES FINANCIAL COUNSELORS TO ASSIST PATIENTS IN DETERMINING IF THEY QUALIFY FOR CHARITY CARE. THE HOSPITAL ALSO DISCUSSES WITH THE PATIENT THE AVAILABILITY OF VARIOUS GOVERNMENT BENEFITS, SUCH AS MEDICAID OR STATE PROGRAMS, AND ASSIST THE PATIENT WITH QUALIFICATION FOR SUCH PROGRAMS, WHERE APPLICABLE. LANGUAGE BARRIERS ARE TAKEN INTO ACCOUNT WITH ALL PATIENT COMMUNICATIONS. A COPY OF THE POLICY CAN BE FOUND ON THE ORGANIZATION'S WEBSITE. PART VI, LINE 4: THE ORGANIZATION'S PRIMARY SERVICE AREAS ARE CHEROKEE AND CLAY COUNTY LOCATED IN THE SOUTHWESTERN CORNER OF NORTH CAROLINA. BOTH OF THESE AREAS HAVE BEEN DESIGNATED AS MEDICALLY UNDERSERVED. THE SECONDARY MARKETS COSIST OF FANNIN AND UNION COUNTIES IN NORTH GEORGIA, POLK COUNTY IN EAST TENNESSEE AND GRAHAM COUNTY IN NORTH CAROLINA. PART VI, LINE 6: THE ORGANIZATION'S HOSPITAL, PHYSICIANS, LONG TERM CARE FACILITY AND HOME HEALTH AND HOSPICE AGENCY FURTHER ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY IN SEVERAL OTHER WAYS. A MAJORITY OF THE ORGANIZATION'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE ORGANIZATION'S PRIMARY SERVICE AREA WHO ARE NEITHER EMPLOYEES, CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. FURTHERMORE, THE ORGANIZATION EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR ALL OF ITS DEPARTMENTS. IF ANY SURPLUS EXISTS AT THE END OF THE FISCAL YEAR, THE ORGANIZATION APPLIES SURPLUS FUNDS TO IMPROVEMENTS IN PATIENT CARE AND MEDICAL EDUCATION. THE HOSPITAL OPERATES AN EMERGENCY ROOM AVAILABLE TO ALL REGARDLESS OF ABILITY TO PAY. THE HOSPITAL PARTICIPATES IN EDUCATION AND TRAINING OF HEALTHCARE PROFESSIONALS. THE HOSPITAL PARTICIPATES IN GOVERNMENT-SPONSORED HEALTH PROGRAMS. THE ORGANIZATION SERVES AS A VEHICLE FOR ATTRACTING AND EFFECTIVELY USING DONATED FUNDS. THE HOSPITAL OFFERS VOLUNTEER OPPORTUNITES TO MEMBERS OF THE COMMUNITY. REPORTS FILED WITH STATES PART VI, LINE 7 NC X X X 0 0 0 0 0 0 0 0 0 MIKE STEVENSON 212081 0 0 0 0 0 6289 0 4200 0 222570 0 0 0 STEVE GILGEN 156083 0 0 0 0 0 4971 0 4200 0 165254 0 0 0 TONI LOVINGOOD 147355 0 0 0 0 0 4423 0 4200 0 155978 0 0 0 MICHAEL LEE 324129 0 0 0 0 0 8522 0 0 0 332651 0 0 0 JENKINS CLARKSON 292734 0 0 0 0 0 8806 0 0 0 301540 0 0 0 LANEAN HAYES 354030 0 0 0 0 0 3605 0 0 0 357635 0 0 0 BRENT DAVIS 676732 0 0 0 0 0 1331 0 0 0 678063 0 0 0 CINDY FREED 295050 0 0 0 0 0 0 0 0 0 295050 0 0 0 CHATUGE FAMILY PRACTICE - DR DANIE PRACTICE LOAN - CAPITAL / OPERATIONS X 500000 469916 0 1 1 469916 FORM 990, PART VI, SECTION B, LINE 11 THE 990 WAS REVIEWED BY THE INDEPENDENT RETURN PREPARER WITH THE BOARD OF DIRECTORS WITH A QUESTION AND ANSWER PERIOD AT A BOARD MEETING PRIOR TO FILING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REQUIRES BOARD MEMBERS TO SIGN A CONFLICT OF INTEREST POLICY ANNUALLY. IT IS THE RESPONSIBILITY OF EACH MEMBER TO DISCLOSE ANY POTENTIAL CONFLICTS AND REMOVE HIMSELF FROM SITUATIONS WITH A POTENTIAL CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION USES THE 990'S OF OTHER COMPARABLE ORGANIZATIONS AND INFORMATION FROM COMPENSATION SURVEYS TO DETERMINE REASONABLE COMPENSATION FOR TOP MANAGEMENT AND EXECUTIVES. THE BOARD THEN APPROVES THE DETERMINED COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, FINANCIAL STATEMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC UPON REQUEST. MURPHY MEDICAL CENTER FOUNDATION INC 4130 US HWY 64 EAST MURPHY NC 28906 561877247 TO SUPPORT MURPHY MEDICAL CENTER NC 501(C)(3) LINE 11A, I N/A 0 SOUTHWESTERN HEALTH SYSTEM INC 4130 US HWY 64 EAST MURPHY NC 28906 010552914 NO ACTIVITY NC 501(C)(3) LINE 11A, I N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 MURPHY MEDICAL CENTER FOUNDATION C