2011-11-11T10:48:40-06:00 2010-12-31 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2010-01-01 570360499 ROPER ST FRANCIS MT PLEASANT HOSPITAL ROPE 8437891704 315 CALHOUN STREET NO 107 CHARLESTON SC 29401 BRET D JOHNSON 8437891704 2011-11-02 1 AMY BIBBY 8282542254 2010 2016-03-07 17:11:31Z DAVID L DUNLAP 315 CALHOUN STREET NO 107 CHARLESTON SC 29401 5472236 0 X WWW.ROPERSAINTFRANCIS.COM X 2005 SC OPERATION OF NONPROFIT HOSPITAL FACILITY IN MT. PLEASANT, SOUTH CAROLINA 13 7 266 34 0 0 5129 34295 0 5393670 0 0 0 44271 5129 5472236 0 5514 0 0 213770 3194240 0 0 0 577894 6413974 791664 9613728 -786535 -4141492 100844984 147764220 102155112 156581762 -1310128 -8817542 X HEALING ALL PEOPLE WITH COMPASSION, FAITH, AND EXCELLENCE. 0 0 8118383 5514 5393670 ROPER ST. FRANCIS MT. PLEASANT HOSPITAL IS A SUBSIDIARY OF CAREALLIANCE HEALTH SERVICES (D/B/A ROPER ST. FRANCIS HEALTHCARE). MT. PLEASANT HOSPITAL IS THE NEWEST ADDITION TO THE ROPER ST. FRANCIS HEALTHCARE SYSTEM, OPENING ITS DOORS IN NOVEMBER OF 2010. THE NEW FACILITY IS WORKING TO MEET THE GROWING HEALTHCARE NEEDS OF PEOPLE LIVING AND WORKING EAST OF THE COOPER, WHILE PROVIDING THEM A CHOICE WITH THE PROVEN, QUALITY CARE LOWCOUNTRY RESIDENTS HAVE TRUSTED FOR OVER 150 YEARS.IN THE MONTHS SINCE IT OPENED, MOUNT PLEASANT HOSPITAL HAS PROVIDED FREE BREAST CANCER SCREENINGS AND SPONSORED COMMUNITY EVENTS INCLUDING SPLASH DAYS AND FIT WEEK, BOTH EVENTS FOCUSED ON FUN, FAMILY-FOCUSED WAYS TO STAY HEALTHY. THE HOSPITAL ALSO OFFERED FREE PARENTING CLASSES TO NEW PARENTS. PLEASE SEE SCHEDULE O FOR A DETAILED EXPLANATION OF THE GROUP'S PROGRAM SERVICE ACCOMPLISHMENTS. PLEASE VISIT OUR WEBSITE FOR A DETAILED COMMUNITY BENEFIT REPORT AT: HTTP://WWW.ROPERSAINTFRANCIS.COM/ABOUT_US/MISSION_AND_COMMUNITY_ACTIVITIES/ANNUALREPORT.ASPX. 8118383 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 0 0 0 1 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 0 0 1 0 0 266 1 0 0 0 0 0 0 0 0 0 0 X 13 7 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 SC X X THE FINANCE DEPARTMENT 8437891704 315 CALHOUN STREET 107 CHARLESTON SC 29401 JOHN M JORDAN 1.00 X 0 289925 51575 W BLOUNT ELLISON 1.00 X 0 0 0 SIS PATRICIA A ECK CBS 1.00 X 0 0 0 RICHARD STATUTO 1.00 X 0 0 0 MICHAEL C TARWATER 1.00 X 0 0 0 G FREDERICK WORSHAM MD 1.00 X 0 0 0 PERRY KEITH WARING 1.00 X 0 0 0 BRANTLEY D THOMAS PHD 1.00 X 0 0 0 SISTER ANNE LUTZ 1.00 X 0 0 0 DAVID M ELLISON MD 1.00 X 0 23813 0 KATHERINE DUFFY PHD 1.00 X 0 0 0 JULIUS R IVESTER MD 1.00 X 0 0 0 ALISON E DILLON MD 1.00 X 0 12000 0 ANGRESS WALKER 1.00 X 0 0 0 DAVID DUNLAP 1.00 X 0 1439245 319287 MATTHEW J SEVERANCE 1.00 X 0 627104 213613 BRET JOHNSON 1.00 X 0 563160 200812 STEVEN D SHAPIRO 1.00 X 0 526921 142758 ALLEN CARROLL 1.00 X 0 525356 178850 JOHN SULLIVAN 50.00 X 398274 0 143132 DOUGLAS W BOWLING 1.00 X 0 443797 136438 MICHAEL TAYLOR 1.00 X 0 372551 100965 H DOUGLAS HARRISON 1.00 X 0 398399 97367 GREGORY T EDWARDS 1.00 X 0 333952 113262 ELLEN BROWN 1.00 X 0 284893 94411 LISA IRVIN 1.00 X 0 279465 83939 FATHER TERENCE K FLEMING 1.00 X 0 258280 74997 PENNIE L PERALTA 1.00 X 0 236699 75265 DIANA TOPJIAN 50.00 X 88026 0 15037 JAMES FLATLEY III 1.00 X 0 0 0 GEORGE P WATERS 1.00 X 0 0 0 FRANCIS WYCKOFF JR 1.00 X 0 199367 38174 PETER DINICOLA 1.00 X 0 206746 15525 MICHAEL RICCIARDONE 1.00 X 0 163077 18984 WANDA BROCKMEYER 1.00 X 0 163703 18923 STEPHANIE TUCKER 1.00 X 0 157638 42685 MARIA SAMPLE 1.00 X 317 158141 17811 ROBERT LOWERY MD 0.10 X 795 794417 51999 KEITH D MERRILL MD 0.30 X 2831 469047 32817 HARRY P RUDOLPH MD 0.10 X 912 455305 33483 ELEANOR D OAKMAN MD 0.40 X 1931 239416 36472 THOMAS C EUSTIS MD 3.00 X 10637 163742 27055 503723 9786159 2375636 1 0 1 1 BE & K BUILDING GROUP INC 5605 CARNEGIE BLVD 200 CHARLOTTE NC 28209 CONTRACTOR SERVICES 22826275 PRESIDIO NETWORKED SOLUTIONS INC PO BOX 822169 PHILADELPHIA PA 191822169 NETWORK SERVICES 2438440 COLEMAN TECHNOLOGIES INC PO BOX 530644 ATLANTA GA 303530644 TECHNOLOGY SERVICES 1910718 MCKESSON INFORMATION SOLUTIONS PO BOX 98347 CHICAGO IL 606938347 TECHNOLOGY SERVICES 812580 ROPER EMERGENCY PHYSICIANS 639 MCCUTCHEN STREET CHARLESTON SC 29412 PHYSICIAN FEES 734526 16 34295 34295 34295 NET PATIENT SERVICE RE 624100 5393670 5393670 5393670 CAFETERIA REVENUE 722210 25929 25929 MISCELLANEOUS REVENUE 900099 18342 18342 44271 5472236 5393670 0 44271 5514 5514 486617 317 486300 1905859 1731562 174297 85813 19823 65990 389230 329428 59802 326721 233897 92824 451751 71765 379986 14699 14699 3165 3165 1137244 1101728 35516 30694 24334 6360 475429 356567 118862 4852 4852 1510511 1508243 2268 9433 9433 23513 23513 1291457 1291457 18733 14734 3999 MEDICAL SUPPLIES 739564 739564 BAD DEBT EXPENSE 676001 676001 OTHER EXPENSES 26928 13449 13479 9613728 8118383 1495345 0 650 4127199 1501516 61609 355651 143276187 1522781 100783375 141753406 0 25798 100844984 147764220 250049 12883 99168 101905063 156469711 102155112 156581762 X -1310128 -8817542 -1310128 -8817542 100844984 147764220 X -4141492 -3365922 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 15467846 15467846 101606759 741849 100864910 2356738 39416 2317322 23844844 741516 23103328 141753406 DUE TO AFFILIATES 156469711 156469711 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: CAREALLIANCE, ROPER HOSPITAL, ST.FRANCIS, MOUNT PLEASANT, THE FOUNDATION, AND PHYSICIAN PARTNERS ARE NOT-FOR-PROFIT ORGANIZATIONS AS DESCRIBED IN SECTION 501C3 OF THE INTERNAL REVENUE CODE AND ARE GENERALLY EXEMPT FROM FEDERAL AND STATE INCOME TAXES. THE SURGERY CENTER AND NEUROSCIENCES MRI ARE LIMITED LIABILITY COMPANIES. UNDER CURRENT LAWS, INCOME OR LOSS OF LIMITED LIABILITY COMPANIES IS INCLUDED IN THE INCOME TAX RETURNS OF THE MEMBERS. ACCORDINGLY, NO PROVISION FOR INCOME TAXES IS MADE IN THE CONSOLIDATED FINANCIAL STATEMENTS. ALTHOUGH CAREALLIANCE IS GENERALLY EXEMPT FROM FEDERAL AND STATE INCOME TAXES, IT EVALUATES WHETHER THERE ARE ANY UNCERTAIN TAX POSITIONS THAT FAIL TO MEET THE MORE-LIKELY-THAN-NOT THRESHOLD FOR RECOGNITION IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNCERTAIN TAX POSITIONS MAY INCLUDE THE CHARACTERISTICS OF INCOME, SUCH AS A CHARACTERIZATION OF INCOME AS PASSIVE, A DECISION TO EXCLUDE REPORTING TAXABLE INCOME IN A TAX RETURN, OR A DECISION TO CLASSIFY A TRANSACTION, ENTITY, OR OTHER POSITION IN A TAX RETURN AS TAX EXEMPT. THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION IS RECOGNIZED WHEN IT IS MORE LIKELY THAN NOT THAT THE POSITION WILL BE SUSTAINED UPON EXAMINATION, INCLUDING RESOLUTIONS OF ANY RELATED APPEALS OR LITIGATION PROCESSES, BASED ON TECHNICAL MERITS. CAREALLIANCE HAD NO UNRECOGNIZED TAX POSITIONS AS OF DECEMBER 31, 2010 AND 2009, AND DOES NOT EXPECT THAT UNRECOGNIZED TAX BENEFITS WILL MATERIALLY INCREASE WITHIN THE NEXT TWELVE MONTHS. TAX YEARS FROM 2007 THROUGH 2009 ARE SUBJECT TO EXAMINATION BY THE FEDERAL AND STATE TAXING AUTHORITIES, RESPECTIVELY. THERE ARE NO INCOME TAX EXAMINATIONS CURRENTLY IN PROCESS. INTEREST AND PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IF ANY, WOULD BE RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS AS INCOME TAX EXPENSE. 1 1 X 1 X 300.000000000000 1 X 399.000000000000 1 1 1 0 1 1 142452 142452 0.01590 253266 107842 145424 0.01630 395718 107842 287876 0.03220 6972 6972 0.00080 15 15 0.00000 3227 3227 0.00040 17970 2328 15642 0.00180 28184 2328 25856 0.00300 423902 110170 313732 0.03520 1174 1174 0.00010 1174 1174 0.00010 0 386193 1455798 2734678 -1278880 X 1 1 1 1 ROPER STFRANCIS MT PLEASANT HOSPITAL

3500 HIGHWAY 17 NORTH MT PLEASANT SC 29466

X X X NA FOR 2010 1 2 MOUNT PLEASANT HOSPITAL IMAGING

3510 HIGHWAY 17 NORTH STE 140 MT PLEASANT SC 29466

X-RAY MOUNT PLEASANT HOSPITAL BREAST CARE

3510 HIGHWAY 17 NORTH STE 205 MT PLEASANT SC 29466

BONE DENSITY, MAMMOGRAPHY PART I, LINE 3C: IN ADDITION TO USING THE FEDERAL POVERTY GUIDELINES TO DETERMINE FREE AND DISCOUNTED CARE (SEE PART I, LINES 3A AND 3B), THE HOSPITAL SYSTEM OFFERS A 35% DISCOUNT FOR PATIENTS WHO ARE UNINSURED. A 10% PROMPT PAYMENT DISCOUNT IS OFFERED TO ALL SELF-PAY OR SELF-PAY-AFTER-INSURANCE PATIENTS WHO PAY THE BALANCE AT ONE TIME. MEDICAL INDIGENCY ADJUSTMENTS ARE AVAILABLE TO THOSE THAT MEET THE ESTABLISHED GUIDELINES. PART I, LINE 6A: THE ORGANIZATION'S COMMUNITY BENEFIT REPORT IS MADE AVAILABLE THROUGH ITS CORPORATE PARENT, CAREALLIANCE HEALTH SERVICES D/B/A ROPER ST. FRANCIS HEALTHCARE. PART I, LINE 7: WORKSHEET 2 OF THE 2010 SCHEDULE H INSTRUCTIONS WAS USED TO COMPUTE A COST-TO-CHARGES RATIO USED TO CALCULATE CHARITY CARE AND UNREIMBURSED MEDICAID AT COST. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 676001. PART II: IN 2010, ROPER ST. FRANCIS HEALTHCARE PROVIDED APPROXIMATELY 78,300 HOURS OF STAFF TIME IN SUPPORT OF COMMUNITY AND HEALTH RELATED INITIATIVES. DURING THIS TIME, THE HEALTHCARE SYSTEM SERVED MORE THAN 264,000 COMMUNITY RESIDENTS, SPONSORED 36 HEALTH FAIRS, AND PARTICIPATED IN 80 COMMUNITY SCREENINGS. RSFH FURTHER SUPPORTED THE COMMUNITY BY PROVIDING $479,905 IN SPONSORSHIPS TO SEVERAL LOCAL ORGANIZATIONS.PART I, LINE 7(E), COL (E): COMMUNITY HEALTH SERVICES, NET: ADVANTAGE PROGRAMS - $ 71 COMMUNITY CALENDARS AND NEWSLETTERS - 123 ENROLLMENT ASSISTANCE IN PUBLIC PROGRAMS - 265 HEALTH EDUCATION AND LECTURES BY STAFF - 18 HEALTH FAIRS AND CAREER DAYS - 278 HOUSE CALLS MAGAZINE - 4,803 COMMUNITY BENEFIT PROGRAM OVERSIGHT COSTS - 1,414 TOTAL TO LINE 7(E), COL (E) - 6,972 PART III, LINE 4: TO CALCULATE BAD DEBT EXPENSE AT COST, THE ORGANIZATION TOOK BAD DEBT EXPENSE FROM THE FINANCIAL STATEMENTS LESS BAD DEBT AMOUNTS THAT RELATE TO MEDICARE OR MEDICAID AS THOSE AMOUNTS ARE INCLUDED IN UNREIMBURSED MEDICAID AND THE MEDICARE SHORTFALL. THE ORGANIZATION THEN USED THE COST TO CHARGE RATIO METHODOLOGY, RATIO OF PATIENT CARE COST-TO-CHARGES.RECEIVABLES ARE REPORTED AT THE NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD-PARTY PAYORS, AND OTHERS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS UNDER REIMBURSEMENT AGREEMENTS. RETROACTIVE ADJUSTMENTS ARE ACCRUED ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS AS FINAL SETTLEMENTS ARE DETERMINED.CAREALLIANCE PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICIES WITHOUT CHARGE OR AT AMOUNT LESS THAN ITS ESTABLISHED RATES. BECAUSE CAREALLIANCE DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUE. DURING 2010, CAREALLIANCE ENHANCED ITS EFFORTS TO QUALIFY PATIENTS FOR CHARITY CARE THROUGH THE USE OF AN ELECTRONIC CREDIT SCORING TECHNIQUE, WHICH RESULTED IN SUBSTANTIALLY MORE CHARITY CARE AND SUBSTANTIALLY LESS BAD DEBT EXPENSE RECOGNIZED IN 2010.MT. PLEASANT HOSPITAL HAD TWO MONTHS OF ACTIVITY PRIOR TO YEAR END; THUS, WE ESTIMATED BAD DEBT EXPENSE AT YEAR END. WE BELIEVE THE ESTIMATE OF BAD DEBT EXPENSE TO BE APPROPRIATE. PART III, LINE 8: THE ENTIRE AMOUNT OF MEDICARE SHORTFALL QUALIFIES AS COMMUNITY BENEFIT. OUR TREATMENT OF MEDICARE PATIENTS, AS DESCRIBED IN IRS REV. RUL. 69-545, INDICATES THAT MT. PLEASANT HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. BY TAKING MEDICARE PATIENTS, THE HOSPITAL PROMOTES ACCESS TO HEALTHCARE SERVICES, WHICH IS A COMMUNITY BENEFIT.MT. PLEASANT HOSPITAL BEGAN OPERATIONS ON NOVEMBER 1, 2010. CMS APPROVED THE FACILITY ON DECEMBER 5, 2010. THE FACILITY'S 2011 COST REPORT WILL INCLUDE THE PERIOD DECEMBER 5, 2010 - DECEMBER 31, 2010. WE USED THE COST TO CHARGE RATIO TO CALCULATE MEDICARE AT COST FOR 2010. PART III, LINE 9B: THE HOSPITAL USES THE HEALTH CARE ADVISORY BOARD'S SELF PAY COMPASS PROGRAM TO IDENTIFY A PATIENT'S PROPENSITY TO PAY. ACCOUNTS WITH AN FPL OF 399% AND BELOW WILL BE IDENTIFIED ONCE THE SELF PAY AR BILLING PROCESS HAS BEEN COMPLETED AND PRIOR TO THE ACCOUNT BEING REFERRED TO BAD DEBT. ACCOUNTS WITH FPL OF 399% AND BELOW WILL BE GIVEN A CHARITY ADJUSTMENT ONCE AN ACCOUNT HAS BEEN REFERRED TO BAD DEBT, RSFH WILL MAKE EVERY EFFORT TO INSURE THAT ALL SELF PAY COLLECTORS DEMONSTRATE CONSISTENT, COMPASSIONATE, AND PROFESSIONAL SERVICE WHILE CONDUCTING BUSINESS ON BEHALF OF THE HEALTH SYSTEM. THIS WILL INCLUDE, BUT IS NOT LIMITED TO: GUARANTOR NOTIFICATION AND CONTACT/COLLECTION ATTEMPTS, DISCOUNT OPPORTUNITIES, PAYMENT PLAN ARRANGEMENTS, ACCOUNT BALANCE NOTIFICATIONS, FACE TO FACE MEETINGS, AND DETAIL BILL GENERATION. AN OUTSOURCED SELF PAY BILLING AGENCY WILL CONTACT THE GUARANTOR TO COLLECT PAYMENT OR TO SET UP MONTHLY PAYMENT ARRANGEMENTS. FINANCIAL ASSISTANCE DISCOUNTS ARE OFFERED TO GUARANTORS WHO MEET THE CHARITY GUIDELINES.IF THE PATIENT DOES NOT MEET THE CHARITY GUIDELINES, OR NEGLECTS TO COMPLETE THE REQUIRED CHARITY CARE DOCUMENTATION, THE PATIENT WILL RECEIVE A 35% DISCOUNT OFF OF TOTAL CHARGES. PATIENTS ARE ELIGIBLE FOR A 10% PROMPT PAYMENT DISCOUNT IF THEY PAY THE BALANCE DURING THE DISCUSSION. DISCOUNTS MAY BE COMBINED IF ALL REQUIREMENTS ARE MET. IN PURSUIT OF COLLECTIONS, RSFH AND ITS AGENTS, WILL NOT: ATTACH LIENS ON PROPERTY, GARNISH WAGES, PURSUE LEGAL ACTIONS, UNLESS RECOMMENDED BY THE SELF PAY BILLING ENTITIES, SELL ACCOUNTS, OR SEND BANKRUPT GUARANTORS TO COLLECTION AGENCIES. PART VI, LINE 2: THE HOSPITAL PARTICIPATES IN PERIODIC NEEDS ASSESSMENT PROJECTS TO ASSESS THE HEALTHCARE NEEDS OF THE COMMUNITY. THE MOST RECENT NEEDS ASSESSMENT TITLED - HEALTH SYSTEM PROFILE FOR THE TRICOUNTY AREA OF BERKELEY, CHARLESTON, & DORCHESTER COUNTIES - WAS PERFORMED IN 2010. THIS REPORT WAS A COLLABORATION BETWEEN THE SOUTH CAROLINA HOSPITAL ASSOCIATION AND THE SOUTH CAROLINA RURAL HEALTH RESEARCH CENTER IN THE ARNOLD SCHOOL OF PUBLIC HEALTH, UNIVERSITY OF SOUTH CAROLINA. A NUMBER OF DATA SETS WERE EXAMINED IN PARTNERSHIP WITH THE OFFICE OF RESEARCH AND STATISTICS AT THE SOUTH CAROLINA BUDGET AND CONTROL BOARD. THE MAJORITY OF THE INFORMATION DELINEATED IN THIS REPORT WAS DRAWN FROM A SERIES OF INTERVIEWS AND FOCUS GROUPS WITH HEALTHCARE PROFESSIONALS, COMMUNITY LEADERS, AND UNINSURED RESIDENTS. THE PURPOSE OF THIS REPORT WAS TO ASSESS LOCAL HEALTHCARE INFRASTRUCTURE INCLUDING LOCATION, SERVICE AVAILABILITY, BUSINESS RULES, AND WORKFORCE ISSUES AS WELL AS TO DESCRIBE HEALTH SERVICE UTILIZATION ISSUES SUCH AS THE TYPES OF CARE UNINSURED PEOPLE ARE SEEKING, THE DEGREE OF UNMET HEALTHCARE NEEDS, AND PERCEIVED REASONS FOR NEEDS GOING UNMET. DATA SUGGESTS THAT RESOURCES AVAILABLE TO UNINSURED IN THE TRICOUNTY AREA ARE MODERATELY EFFECTIVE IN PREVENTING POTENTIALLY AVOIDABLE EMERGENCY ROOM VISITS BUT LACKS IMPACT ON THE SAME TYPE OF INPATIENT HOSPITALIZATIONS. DIABETES, BACTERIAL PNEUMONIA, CONGESTIVE HEART FAILURE, KIDNEY/URINARY TRACT INFECTIONS, AND DENTAL CONDITIONS ARE AMONG THE MOST PREVALENT REASONS FOR AN AVOIDABLE HOSPITAL VISIT. DENTAL CARE REMAINS A SIGNIFICANT UNMET HEALTHCARE NEED AMONG THE UNINSURED. ACCESS TO SPECIALTY CARE FOR THE UNINSURED IS UNANIMOUSLY THE BIGGEST OBSTACLE FOR THE TRICOUNTY KEY STAKEHOLDERS. THE PARTICIPANTS IN THE NEEDS ASSESSMENT WILL ENGAGE IN STRATEGIC PLANNING AND IMPLEMENTATION OF ACTIVITIES THAT WILL IMPROVE ACCESS TO CARE FOR THE UNINSURED. A PROJECT DATABASE WILL INFORM ON THE GROUP'S PROGRESS. THE UNIVERSITY OF SOUTH CAROLINA TEAM WILL CONTINUE TO MONITOR PROGRESS AS A PROJECT EVALUATOR. PART VI, LINE 3: THE HOSPITAL SHALL SEND ANYONE WHO REQUESTS INFORMATION ON THE HOSPITAL'S FINANCIAL ASSISTANCE PROGRAM A LETTER OUTLINING REQUIRED INFORMATION AND A FINANCIAL ASSISTANCE APPLICATION FORM. REQUESTS FOR FINANCIAL ASSISTANCE MAY BE PROPOSED BY SOURCES OTHER THAN THE PATIENT, SUCH AS THE PATIENT'S PHYSICIAN, FAMILY MEMBERS, SOCIAL SERVICE ORGANIZATIONS, COMMUNITY OR RELIGIOUS GROUPS, OR HOSPITAL PERSONNEL. STATEMENTS TO PATIENTS FROM THE HOSPITAL OUTLINE OUR CHARITY CARE POLICY AND OUR CHARITY CARE POLICY IS POSTED ON OUR WEBSITE. IF PATIENTS INDICATE THEY ARE NOT ABLE TO PAY THEIR BILL, WE WILL SEND THEM A CHARITY CARE APPLICATION.PATIENTS CAN ALSO MEET WITH A MEMBER OF OUR FINANCIAL COUNSELING DEPARTMENT TO LEARN ABOUT THEIR FINANCIAL ASSISTANCE OPTIONS. BROCHURES ARE PRINTED IN ENGLISH AND SPANISH TELLING PATIENTS TO CONTACT THE FINANCIAL COUNSELING DEPARTMENT. WE WANT OUR PATIENTS FOCUS TO BE ON HEALTH AND RECOVERY AND NOT FINANCIAL WORRY. THERE IS ABSOLUTELY NOADDITIONAL COST FOR OUR FINANCIAL COUNSELING ASSISTANCE.ADDITIONALLY, PATIENTS CAN MEET WITH STAFF OF THE MEDICAID NAVIGATOR PROGRAM. THE PROGRAM STAFF WILL MEET WITH PATIENTS INDIVIDUALLY TO HELP THEM APPLY FOR PUBLICLY SUPPORTED PROGRAMS SUCH AS MEDICAID, MEDICARE, AND DISABILITY. COUNSELORS MEET WITH PATIENTS AT A NUMBER OF LOCAL OUTREACH CENTERS, SCHOOLS, AND CHURCHES. THE STAFF CAN ALSO HELP IDENTIFY RESOURCES TO HELP PAY FOR MEDICATION. ALL OF THIS INFORMATION IS POSTED ON OUR WEBSITE WITH THE APPROPRIATE CONTACT INFORMATION. PART VI, LINE 4: THE SYSTEM'S PRIMARY SERVICE AREA CONSISTS OF CHARLESTON, BERKELEY, AND DORCHESTER COUNTIES, AND INCLUDES THE MAJOR MUNICIPALITIES OF CHARLESTON, NORTH CHARLESTON, MOUNT PLEASANT, AND SUMMERVILLE. APPROXIMATELY 665,000 RESIDENTS LIVE WITHIN THE PRIMARY SERVICE AREA. POPULATION IN THE PRIMARY SERVICE AREA IS PROJECTED TO GROW 9.1% BETWEEN 2009 AND 2014 COMPARED TO PROJECTED NATIONAL POPULATION GROWTH OF 5.1% OVER THE SAME PERIOD. IN 2009, INCOME LEVELS IN THE PRIMARY SERVICE AREA WERE ESTIMATED AS FOLLOWS: INCOME LESS THAN $ 15,000 - 13.4% BETWEEN $ 15,000 AND $ 25,000 - 10.4% BETWEEN $ 25,000 AND $ 50,000 - 26.9% BETWEEN $ 50,000 AND $ 75,000 - 20.4% BETWEEN $ 75,000 AND $100,000 - 12.2% INCOME ABOVE $100,000 - 16.8%COMPARED TO THE NATIONAL AVERAGES OF 12.4%, 10.4%, 26.0%, 19.6%, 12.3%, AND 19.3%, RESPECTIVELY (MOST RECENT DATA AVAILABLE).WITHIN THE PRIMARY SERVICE AREA, POVERTY CONTINUES TO BE AN ISSUE. AN ESTIMATED 148,511 TRICOUNTY RESIDENTS LACK HEALTH INSURANCE. THERE IS A VAST OVER-REPRESENTATION OF THE UNINSURED LIVING AT OR BELOW THE FEDERAL POVERTY LEVEL. THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES DESIGNATED SIX MEDICALLY UNDERSERVED AREAS AND ONE MEDICALLY UNDERSERVED POPULATION WITHIN OUR PRIMARY SERVICE AREA. FROM APRIL 2010 TO APRIL 2011, THE UNEMPLOYMENT RATE IN THE PRIMARY SERVICE AREA DECREASED FROM 8.7% TO 8.0%. THIS IS A LOWER UNEMPLOYMENT RATE THAN THE NATIONAL AVERAGE, WHICH WAS 9.8% IN APRIL 2010 DECLINING TO 9.0% IN APRIL 2011. THE SECONDARY SERVICE AREA INCLUDES COLLETON, ORANGEBURG, GEORGETOWN, HAMPTON, BEAUFORT, WILLIAMSBURG, AND HORRY COUNTIES. IN ADDITION TO THE SYSTEM'S FACILITIES, THERE ARE THREE OTHER NON-MILITARY HOSPITALS IN THE PRIMARY SERVICE AREA. PART VI, LINE 6: WE ARE THE LOWCOUNTRY'S ONLY NON-GOVERNMENTAL, NOT-FOR-PROFIT HEALTHCARE SYSTEM. WITH THIS DISTINCTION, WE BELIEVE IT IS OUR RESPONSIBILITY TO ADVOCATE FOR AND RESPOND TO OUR NEIGHBORS NEEDS THROUGH COMMUNITY BENEFIT. IN KEEPING WITH OUR MISSION OF HEALING ALL PEOPLE WITH COMPASSION, FAITH, AND EXCELLENCE, ROPER ST. FRANCIS HEALTHCARE (RSFH) STRIVES TO ENRICH THE HEALTH OF OUR COMMUNITY. WE DO THIS BY OFFERING CHARITY CARE TO THOSE IN NEED, REACHING OUT TO OUR NEIGHBORS WITH HEALTH FAIRS AND EDUCATIONAL MATERIALS, SPONSORING ORGANIZATIONS AND EVENTS THAT PROMOTE WELLNESS AND COMMUNITY WELL-BEING, AND MARSHALLING OUR RESOURCES TO ADVANCE THE HEALTH AND DIGNITY OF EACH PERSON WITH WHOM WE COME IN CONTACT.RSFH IS COMMITTED TO THE ENRICHMENT OF HEALTHCARE IN OUR COMMUNITY AS EVIDENCED BY THE COMPOSITION OF OUR BOARD OF DIRECTORS AND OPEN MEDICAL STAFF. OUR GOVERNING BODY IS COMPRISED OF A 13 MEMBER BOARD OF DIRECTORS. AT LEAST NINE DIRECTORS MUST HAVE THEIR PRIMARY RESIDENCE IN A COMMUNITY SERVED BY THE SYSTEM. FIVE DIRECTORS MUST BE PHYSICIANS ACTIVELY ENGAGED IN THE FULL TIME PRACTICE OF MEDICINE. RSFH EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN THE AREA FOR MOST OF OUR DEPARTMENTS.SURPLUS FUNDS ARE RETURNED TO OUR COMMUNITY THROUGH THE DEVELOPMENT OF NEW FACILITIES TO SERVE POPULATION GROWTH, THE EXPANSION OR EXISTING FACILITIES, SUBSIDIZING CARE FOR THOSE WHO ARE UNABLE TO PAY, SPONSORSHIP OF HEALTHCARE RELATED ACTIVITIES INCLUDING OUTREACH CLINICS AND PROGRAMS FOR THE UNINSURED, AND INVESTING IN TECHNOLOGY TO IMPROVE THE QUALITY OF PATIENT CARE. MT. PLEASANT HOSPITAL IS THE HEALTH SYSTEM'S PRIME EXAMPLE OF RETURNING SURPLUS FUNDS TO THE COMMUNITY IN 2010. MT. PLEASANT HOSPITAL OPENED IN 2010 TO MEET THE GROWING HEALTHCARE NEEDS OF PEOPLE LIVING AND WORKING EAST OF THE COOPER RIVER. THE HOSPITAL FEATURES: 24-HOUR EMERGENCY ROOM, HOME-LIKE LABOR & DELIVERY SUITES, INPATIENT AND OUTPATIENT SURGERY, 10-BED INTENSIVE CARE UNIT, MEDICALSURGICAL UNITS, IMAGING SERVICES, LABORATORY, PHARMACY, AND HELIPAD. PART VI, LINE 7: CAREALLIANCE HEALTH SERVICES (D/B/A ROPER ST. FRANCIS HEALTHCARE (RSFH)) IS A CHARITABLE HEALTH CARE DELIVERY SYSTEM BASED IN CHARLESTON, SOUTH CAROLINA. THE 657-BED HEALTH SYSTEM PROVIDES SERVICES AT 90 FACILITIES AND DOCTORS OFFICES CONVENIENTLY LOCATED THROUGHOUT OUR REGION. ONE OF THESE FACILITIES IS ROPER ST.FRANCIS MOUNT PLEASANT HOSPITAL, AN ACUTE CARE HOSPITAL WITH 85 LICENSED BEDS. CAREALLIANCE WAS FORMED EFFECTIVE AUGUST 1, 1998, THROUGH THE EXECUTION OF AN AFFILIATION AGREEMENT BETWEEN THE FOLLOWING FOUNDING MEMBERS: THE MEDICAL SOCIETY OF SOUTH CAROLINA, BON-SECOURS HEALTH SYSTEM, INC., AND CAROLINAS HEALTHCARE SYSTEM. CAREALLIANCE IS THE SOLE CORPORATE MEMBER AND, THROUGH ITS BY-LAWS, HAS THE POWER TO CONTROL THE FINANCIAL AND BUSINESS AFFAIRS OF ROPER ST. FRANCIS MT. PLEASANT HOSPITAL. REPORTS FILED WITH STATES PART VI, LINE 7 SC 1 X OTHER INFORMATION: PART IV: THE MAJORITY OF THE GRANTS EXPENSE SHOWN ON PAGE 10 OF THE 990 IS AN ALLOCATION FROM THE PARENT COMPANY, CAREALLIANCE HEALTH SERVICES. ALL GRANTS MEETING DISCLOSURE REQUIREMENTS FOR 2010 HAVE BEEN LISTED ON CAREALLIANCE HEALTH SERVICE'S FORM 990. X X X X 0 1 0 0 0 1 1 1 0 JOHN M JORDAN 0 254925 0 35000 0 0 0 34564 0 17011 0 341500 0 0 DAVID DUNLAP 0 474480 0 357193 0 607572 0 291001 0 28286 0 1758532 0 468825 MATTHEW J SEVERANCE 0 376867 0 248672 0 1565 0 184639 0 28974 0 840717 0 0 BRET JOHNSON 0 271352 0 181925 0 109883 0 167390 0 33422 0 763972 0 65987 STEVEN D SHAPIRO 0 335914 0 189233 0 1774 0 133607 0 9151 0 669679 0 0 ALLEN CARROLL 0 313887 0 210964 0 505 0 156185 0 22665 0 704206 0 0 JOHN SULLIVAN 221513 0 147737 0 29024 0 122170 0 20962 0 541406 0 0 0 DOUGLAS W BOWLING 0 287909 0 155073 0 815 0 119220 0 17218 0 580235 0 0 MICHAEL TAYLOR 0 237177 0 121008 0 14366 0 86356 0 14609 0 473516 0 0 H DOUGLAS HARRISON 0 225524 0 130506 0 42369 0 86586 0 10781 0 495766 0 36246 GREGORY T EDWARDS 0 253678 0 79591 0 683 0 89837 0 23425 0 447214 0 0 ELLEN BROWN 0 180746 0 98512 0 5635 0 70119 0 24292 0 379304 0 0 LISA IRVIN 0 182524 0 91804 0 5137 0 75527 0 8412 0 363404 0 0 FATHER TERENCE K FLEMING 0 163353 0 77130 0 17797 0 68580 0 6417 0 333277 0 10290 PENNIE L PERALTA 0 153036 0 83028 0 635 0 55770 0 19495 0 311964 0 0 FRANCIS WYCKOFF JR 0 168210 0 28768 0 2389 0 28560 0 9614 0 237541 0 0 PETER DINICOLA 0 176189 0 29922 0 635 0 10464 0 5061 0 222271 0 0 MICHAEL RICCIARDONE 0 128122 0 22740 0 12215 0 9542 0 9442 0 182061 0 0 WANDA BROCKMEYER 0 136113 0 19640 0 7950 0 9564 0 9359 0 182626 0 0 STEPHANIE TUCKER 0 131564 0 23251 0 2823 0 25879 0 16806 0 200323 0 0 MARIA SAMPLE 271 135100 45 22668 1 373 14 7174 21 10602 352 175917 0 0 ROBERT LOWERY MD 784 783050 2 1998 9 9369 29 29035 23 22912 847 846364 0 0 KEITH D MERRILL MD 2817 466706 12 1988 2 353 75 12489 122 20131 3028 501667 0 0 HARRY P RUDOLPH MD 893 445786 19 9481 0 38 25 12539 42 20877 979 488721 0 0 ELEANOR D OAKMAN MD 1894 234877 0 0 37 4539 101 12463 191 23717 2223 275596 0 0 THOMAS C EUSTIS MD 9052 139348 1525 23475 60 919 1006 15494 644 9911 12287 189147 0 0 PART I, LINE 1A PART I, LINE 4B THE FOLLOWING PARTICIPANTS RECEIVED COMPENSATION THROUGH A 457(F) PLAN: ELLEN BROWN - 11,400 (FROM A RELATED ORGANIZATION) DOUGLAS BOWLING - 19,710 (FROM A RELATED ORGANIZATION) H. DOUGLAS HARRISON - 50,046 (FROM A RELATED ORGANIZATION) MATTHEW SEVERANCE - 29,237 (FROM A RELATED ORGANIZATION) LISA IRVIN - 11,100 (FROM A RELATED ORGANIZATION) ALLEN CARROLL - 22,285 (FROM A RELATED ORGANIZATION) FATHER TERENCE FLEMING - 10,290 (FROM A RELATED ORGANIZATION) GREGORY EDWARDS - 16,362 (FROM A RELATED ORGANIZATION) PENNIE PERALTA - 9,600 (FROM A RELATED ORGANIZATION) STEVEN SHAPIRO - 24,087 (FROM A RELATED ORGANIZATION) MICHAEL TAYLOR - 14,400 (FROM A RELATED ORGANIZATION) PART I, LINE 6 GOALS ARE DEVELOPED EACH YEAR TO SUPPORT THE ORGANIZATION'S STRATEGIC INITIATIVES FOR PEOPLE, QUALITY, FINANCIAL, GROWTH AND SERVICE. THE AD HOC COMPENSATION COMMITTEE APPROVES THE SYSTEM GOALS ANNUALLY AND REPORTS TO THE FULL BOARD OF DIRECTORS. PROGRESS ON EACH METRIC IS REPORTED TO THE BOARD EACH MONTH ON THE CORPORATE SCORECARD. AT YEAR END, THE AD HOC COMPENSATION COMMITTEE APPROVES THE FINAL SCORECARD NUMBER AND REPORTS RESULTS TO THE FULL BOARD. ANNUAL INCENTIVES FOR THE EXECUTIVES ARE BASED ON 60% ON THE CORPORATE SCORECARD AND 40% ON INDIVIDUAL PERFORMANCE. EXECUTIVES MAINTAIN AN INDIVIDUAL SCORECARD ON THE LEADER EVALUATION MANAGER AND DISCUSS RESULTS MONTHLY WITH THE PRESIDENT/CEO. THE PRESIDENT/CEO APPROVES THE INDIVIDUAL EXECUTIVE SCORECARD. SYSTEM VICE PRESIDENTS AND THE SYSTEM CEO ARE ELIGIBLE TO PARTICIPATE IN A LONG TERM INCENTIVE PLAN (LTIP). AN LTIP PLAN TYPICALLY TAKES PLACE OVER A THREE YEAR PERIOD AND DOES NOT VEST UNTIL THE END OF THE THIRD YEAR. TO RECEIVE PAYMENT, EXECUTIVES MUST STILL BE EMPLOYED BY THE SYSTEM AT THE END OF THE PLAN PERIOD. EACH LTIP PLAN HAS A FINANCIAL AND CLINICAL OBJECTIVE THAT IS ALIGNED WITH THE ORGANIZATIONS STRATEGIC GOALS. THRESHOLD, TARGET, AND MAXIMUM PERFORMANCE RANGES ARE ESTABLISHED FOR THESE OBJECTIVES AND ARE MEASURED BASED ON PERFORMANCE AGAINST SIMILAR ORGANIZATIONS OR COMPARED TO AN INTERNAL METRIC SUCH AS AN IMPROVEMENT OVER PRIOR PERFORMANCE. THESE TARGETS AND OBJECTIVES ARE APPROVED BY THE AD HOC COMPENSATION COMMITTEE. THE INCENTIVE IS EARNED BASED ON THE SATISFACTION OF THE THRESHOLD, TARGET, OR MAXIMUM PERFORMANCE RANGES. THE AD HOC COMPENSATION COMMITTEE ALSO APPROVES THE FINAL LTIP PERFORMANCE SCORE AND THE AMOUNT PAID TO EXECUTIVES UNDER THE PLAN. RESULTS ARE REPORTED TO THE FULL BOARD ANNUALLY. PART I, LINE 7 SEE THE RESPONSE TO LINE 6 ABOVE. SUPPLEMENTAL INFORMATION PART III PART II, LINE 1: COMPENSATION FROM UNRELATED ORGANIZATIONS CAROLINAS HEALTHCARE SYSTEM PROVIDES THE COMPENSATION OF DAVID L. DUNLAP, CEO, CAREALLIANCE HEALTH SERVICES; BRET D. JOHNSON, CFO, CAREALLIANCE HEALTH SERVICES; AND JOHN SULLIVAN, CEO, ROPER ST. FRANCIS MT. PLEASANT HOSPITAL. MR. DUNLAP AND MR. JOHNSON ARE EMPLOYEES OF CAROLINAS HEALTHCARE SYSTEM AND THEIR COMPENSATION IS PAID BY CAREALLIANCE HEALTHCARE SERVICES, A RELATED ORGANIZATION, THROUGH A MANAGEMENT FEE TO CAROLINAS HEALTHCARE SYSTEM. MR. SULLIVAN IS ALSO AN EMPLOYEE OF CAROLINAS HEALTHCARE SYSTEM, AND HIS COMPENSATION IS PAID BY ROPER ST. FRANCIS MT. PLEASANT HOSPITAL THROUGH A MANAGEMENT FEE TO CAROLINAS HEALTHCARE SYSTEM. OF THE FULL BONUS AMOUNT RECEIVED BY JOHN SULLIVAN ($147,737), $71,456 RELATES TO SERVICES PROVIDED UNDER CAROLINAS HEALTHCARE SYSTEM PRIOR TO HIS SERVICE WITH ROPER ST. FRANCIS HOSPITAL. ADDITIONAL INFORMATION: CAREALLIANCE HEALTH SERVICES HAS BOARD REPRESENTATIONS FROM THE 3 FOUNDING ORGANIZATIONS: THE MEDICAL SOCIETY OF SC (6 BOARD MEMBERS), BON-SECOURS HEALTH SYSTEM, INC. (6 BOARD MEMBERS), AND CAROLINAS HEALTHCARE SYSTEM (1 BOARD MEMBER). NONE OF THE 13 APPOINTED BOARD MEMBERS RECEIVE COMPENSATION FOR THEIR MEMBERSHIP. ADDITIONALLY, 4 OF THE 6 BOARD MEMBERS APPOINTED BY THE MEDICAL SOCIETY OF SOUTH CAROLINA ALSO SERVE ON THE BOARD OF THE MEDICAL SOCIETY. NONE RECEIVE COMPENSATION FOR THEIR SERVICES AS A BOARD MEMBER. IT IS THE FOUNDING MEMBERS' INTENT THAT THE MEMBERS OF THE BOARD OF DIRECTORS ARE APPOINTED TO SUCH POSITIONS BECAUSE THEY HAVE A WILLINGNESS TO SERVE THE NEEDS OF THE SYSTEM AS A WHOLE AND NOT THE NEEDS OF ANY INDIVIDUAL FOUNDING MEMBER. ANESTHESIA ASSOCIATES OF CHARLESTON A MEMBER IN THIS ORGANIZATION IS BOARD MEMBER JULIUS IVESTER 328980 PROVISION OF ANESTHESIA SERVICES 0 X 21 31695 FMV X PIANO 1 2600 FMV 0 0 0 PROGRAM SERVICE STATEMENT FORM 990, PART III, LINE 4B AT ROPER ST. FRANCIS HEALTHCARE EVERY NUMBER IS A HUMAN STORY COST OF CHARITY CARE: $33,516,340 COMMUNITY OUTREACH PROGRAMS: $8,539,229 UNREIMBURSED COST OF MEDICAID: $4,777,286 SPONSORSHIPS: $479,905 THE TOTAL AMOUNT OF COMMUNITY BENEFIT WE GAVE BACK INCLUDING CHARITY CARE, UNREIMBURSED COST OF MEDICAID, SPONSORSHIPS AND COMMUNITY OUTREACH PROGRAMS: $47,312,760 PATIENTS WHO RECEIVED FINANCIAL ASSISTANCE FOR THEIR HEALTHCARE: 40,200 SPONSORSHIP DOLLARS GIVEN TO LOCAL ORGANIZATIONS WHO SUPPORT THE OVERALL HEALTH OF OUR NEIGHBORS: $479,905 DONATED TO THE TRIDENT UNITED WAY BY ROPER ST. FRANCIS EMPLOYEES SHATTERING THE RECORD AMOUNT GIVEN BY EMPLOYEES FROM A LOWCOUNTRY COMPANY: $506,497.84 HOURS OF ROPER ST. FRANCIS EMPLOYEE TIME DEVOTED TO SUPPORTING OUTSIDE COMMUNITY HEALTH INITIATIVES: 78,312 FREE COMMUNITY HEALTHFAIRS OFFERING VITAL HEALTH SCREENINGS AND INFORMATION: 36 EVENTS THAT ROPER ST. FRANCIS ATTENDED AND PROVIDED PREVENTIVE SCREENINGS AND SUPPORT: 80+ MEALS PROVIDED BY THE LOWCOUNTRY FOOD BANK FROM ROPER ST. FRANCIS FOOD DRIVES AND FINANCIAL SUPPORT: 14,198 HEALTHY BABIES BROUGHT INTO THE WORLD THANKS TO THE GREAT PRENATAL CARE THEIR MOMS RECEIVED AT THE ROPER ST. FRANCIS SUPPORTED OUR LADY OF MERCY COMMUNITY OUTREACH CENTER: 69 RAISED BY ROPER ST. FRANCIS EMPLOYEES FOR THE AMERICAN HEART ASSOCIATION: $56,400 VOLUNTEERS SERVED 88,000 HOURS IN 2010 EQUALING THE WORK OF 42 FULL TIME EMPLOYEES: 860 MEALS CREATED IN ROPER ST. FRANCIS KITCHENS AND DISTRIBUTED TO OUR COMMUNITY THROUGH MEALS ON WHEELS: 16,652 PEOPLE WHO RECEIVED THEIR PRESCRIPTION DRUGS FROM EAST COOPER COMMUNITY OUTREACH: 523 PATIENT VISITS TO THE BARRIER ISLAND FREE CLINIC: 4,497 REDUCTION IN WATER BORNE ILLNESSES IN CHILDREN SINCE THE EMPLOYEE FUNDED WATER TREATMENT SYSTEM WE SENT TO KENYA WAS PUT IN PLACE: 80% PEOPLE ASSISTED WITH NAVIGATING THEIR HEALTHCARE OPTIONS BY OUR MEDICAID NAVIGATOR PROGRAM: 872 LAB TESTS FOR THE HOMELESS WHO STAY AT THE CRISIS MINISTRIES CLINIC: 110 GRANTS RECEIVED BY THE ROPER ST. FRANCIS FOUNDATION TO BENEFIT THE COMMUNITY: $2,830,108 HIV-POSITIVE RESIDENTS BROUGHT INTO CARE THROUGH FEDERAL AND FOUNDATION GRANTS TO THE ROPER ST. FRANCIS FOUNDATION: 469 COMMUNITY PARTNERS BROUGHT TOGETHER TO PROVIDE ACCESS TO QUALITY HEALTHCARE FOR THE TRI-COUNTYS 149,000 UNINSURED THROUGH A GRANT TO THE ROPER ST. FRANCIS FOUNDATION FROM THE DUKE ENDOWMENT: 25 IN COMMUNITY SUPPORT FROM INDIVIDUALS, BUSINESSES AND CORPORATIONS TO THE ROPER ST. FRANCIS FOUNDATION: $3,060,411 HARD-WORKING, SUPPORTIVE MEMBERS MADE UP OUR 2010 BOARD OF DIRECTORS: 13 JOHN JORDAN, CHAIRPERSON BLOUNT ELLISON, MD, VICE CHAIRPERSON ALISON DILLON, MD KATHERINE DUFFY, PHD DAVID ELLISON, MD JULIUS IVESTER, JR, MD SISTER ANNE LUTZ RICHARD STATUTO MICHAEL TARWATER BRANTLEY THOMAS, PHD ANGRESS WALKER PERRY WARING FREDERICK WORSHAM, MD DEAR FRIENDS, WHEN YOU READ THAT ROPER ST. FRANCIS GAVE OVER $47 MILLION* IN COMMUNITY BENEFIT IN 2010, IT CAN BE HARD TO UNDERSTAND WHAT THAT REALLY MEANS. IN OUR CASE, EACH DOLLAR WE GIVE BACK OR EACH VOLUNTEER HOUR THAT IS SPENT DIRECTLY IMPACTS A LIFE. IN THIS YEARS REPORT TO THE COMMUNITY WE HAVE BROKEN DOWN SOME OF THESE BIG NUMBERS TO REVEAL THEIR IMPORTANCE TO THE PEOPLE WE SERVE. WARM REGARDS, DAVID L. DUNLAP, FACHE PRESIDENT AND CHIEF EXECUTIVE OFFICER * ROPER ST. FRANCIS USES THE VOLUNTARY HOSPITAL ASSOCIATION /CATHOLIC HEALTH ASSOCIATIONS STANDARDIZED COMMUNITY BENEFIT VALUATION METHODOLOGY. FORM 990, PART VI, SECTION A, LINE 3 CAROLINAS HEALTHCARE SYSTEM (CHS), AN UNRELATED ORGANIZATION, PROVIDES THE COMPENSATION OF MR. DAVID L. DUNLAP, CEO, CAREALLIANCE HEALTH SERVICES; MR. BRET D. JOHNSON, CFO, CAREALLIANCE HEALTH SERVICES; AND MR. JOHN SULLIVAN, CEO, ROPER ST. FRANCIS MT. PLEASANT HOSPITAL. MR. DUNLAP AND MR. JOHNSON ARE EMPLOYEES OF CHS AND THEIR COMPENSATION IS PAID BY CAREALLIANCE HEALTH SERVICES, A RELATED ORGANIZATION, THROUGH A MANAGEMENT FEE TO CHS. MR. SULLIVAN IS ALSO AN EMPLOYEE OF CHS, AND HIS COMPENSATION IS PAID THROUGH A MANAGEMENT FEE BY ROPER ST. FRANCIS MT. PLEASANT HOSPITAL. FORM 990, PART VI, SECTION A, LINE 6 THE SOLE MEMBER OF THE CORPORATION IS CAREALLIANCE HEALTH SERVICES, A SOUTH CAROLINA NONPROFIT, NONSTOCK CORPORATION, D/B/A ROPER ST. FRANCIS HEALTHCARE. CAREALLIANCE HEALTH SERVICES IS IN TURN GOVERNED BY A BOARD OF DIRECTORS APPOINTED BY THE "FOUNDING MEMBERS". PLEASE SEE THE RESPONSE TO LINE 7A BELOW. THE BYLAWS OF THE ORGANIZATION SPECIFY CERTAIN QUALIFICATIONS OF THE THIRTEEN MEMBER BOARD OF DIRECTORS. AT LEAST NINE DIRECTORS MUST HAVE THEIR PRIMARY RESIDENCE IN A COMMUNITY SERVED BY THE SYSTEM. FIVE DIRECTORS MUST BE PHYSICIANS ACTIVELY ENGAGED IN THE FULL TIME PRACTICE OF MEDICINE. FIVE OF THE DIRECTORS ARE APPOINTED TO THE BOARD OF DIRECTORS BY VIRTUE OF POSITIONS HELD WITHIN MSSC, BSHSI AND CHS (EX-OFFICIO DIRECTORS). EACH OF THE FIVE EX-OFFICIO DIRECTORS SERVES AS A DIRECTOR OF THE ORGANIZATION FOR SO LONG AS SUCH PERSON HOLDS HIS OR HER RESPECTIVE ELECTED OR APPOINTED OFFICE IN HIS OR HER RESPECTIVE FOUNDING MEMBER ORGANIZATION. DIRECTORS SERVE THREE-YEAR TERMS AND ARE LIMITED TO THREE CONSECUTIVE TERMS. AFTER AN ABSENCE OF AT LEAST ONE YEAR, DIRECTORS ARE AGAIN ELIGIBLE FOR APPOINTMENT TO THE BOARD OF DIRECTORS FOR TWO CONSECUTIVE COMPLETE TERMS. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION IS GOVERNED BY A THIRTEEN MEMBER BOARD OF DIRECTORS APPOINTED BY THE FOUNDING MEMBERS. SUBJECT TO CERTAIN NOMINATING AND GOVERNANCE COMMITTEE APPROVALS, SIX DIRECTORS ARE APPOINTED BY THE MEDICAL SOCIETY OF SOUTH CAROLINA (MSSC), BON SECOURS HEALTH SYSTEMS, INC. (BSHSI) AND ONE DIRECTOR IS APPOINTED BY CAROLINAS HEALTHCARE SYSTEMS (CHS). IT IS THE FOUNDING MEMBERS' INTENT THAT THE MEMBERS OF THE ORGANIZATION'S BOARD OF DIRECTORS ARE APPOINTED TO SUCH POSITIONS BECAUSE THEY HAVE A WILLINGNESS TO SERVE THE NEEDS OF THE SYSTEM AS A WHOLE AND NOT THE NEEDS OF ANY INDIVIDUAL FOUNDING MEMBER. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTIONS SHALL REQUIRE THE UNANIMOUS AFFIRMATIVE APPROVAL OF ALL OF THE FOUNDING MEMBERS: (A) TO AMEND THE ARTICLES OF INCORPORATION OR THE BY-LAWS, INCLUDING WITHOUT LIMITATION, ANY CHANGE IN THE CORPORATION'S PURPOSES; PROVIDED, HOWEVER, THAT, SUBJECT TO THE PROCEDURES AND VOTING REQUIREMENTS WITH RESPECT TO THE ADMISSION OF NON-FOUNDING MEMBERS, SCHEDULE 3.1 MAY BE AMENDED WITH THE APPROVAL OF TWO (2) OF THE FOUNDING MEMBERS TO REFLECT THE ADMISSION OF A NON-FOUNDING MEMBER; (B) TO DISSOLVE OR LIQUIDATE THE CORPORATION AND TO DETERMINE THE DISTRIBUTION OF ASSETS UPON DISSOLUTION; (C) TO MERGE OR CONSOLIDATE THE CORPORATION OR TO SELL, CONVEY, TRANSFER, LEASE, OR OTHERWISE DISPOSE OF ALL OR SUBSTANTIALLY ALL OF ITS ASSETS; (D) TO APPOINT THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE CORPORATION IN A MANNER OTHER THAN THAT ESTABLISHED BY THE BY-LAWS; (E) TO ALTER OR AMEND THE CORPORATION'S ETHICAL PERFORMANCE STANDARDS (DEFINED BELOW); OR (F) TO ENTER INTO ANY MATERIAL AGREEMENT WHEREBY A THIRD PARTY WILL: (I) BECOME AN EQUITY OWNER IN ANY JOINT VENTURE WITH THE CORPORATION OR ANY SYSTEM PARTICIPANT AND WILL NOT BE LEGALLY OBLIGATED TO SUPPORT THE CORPORATION'S ETHICAL PERFORMANCE STANDARDS; OR (II) MANAGE A SUBSTANTIAL PART OF THE FACILITIES, ASSETS, OR OPERATIONS OF THE SYSTEM AND WILL NOT BE LEGALLY OBLIGATED TO COMPLY WITH AND SUPPORT THE CORPORATION'S ETHICAL PERFORMANCE STANDARDS. FORM 990, PART VI, SECTION B, LINE 11 THE 2010 FORM 990 WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM WITH ASSISTANCE AND OVERSIGHT BY MANAGEMENT. REVIEWS WERE THEN CONDUCTED BY THE ASSISTANT CONTROLLER, DIRECTOR OF FINANCE, AND CHIEF FINANCIAL OFFICER OF CAREALLIANCE HEALTH SERVICES, THE SOLE MEMBER, BEFORE PRESENTATION AND REVIEW WITH THE ORGANIZATION'S GOVERNING BODY. HIGHLIGHTS OF THE 2010 FORM 990 WERE PRESENTED TO THE ORGANIZATION'S BOARD OF DIRECTORS ON OCTOBER 15, 2011. IN ADDITION TO THE ORGANIZATION'S EXECUTIVE MANAGEMENT, REPRESENTATIVES OF DIXON HUGHES GOODMAN, LLP PARTICIPATED IN THIS REVIEW WITH BOARD MEMBERS. THE OCTOBER 15 BOARD MEETING WAS HELD PRIOR TO THE FILING OF THE FORM 990 WITH THE INTERNAL REVENUE SERVICE. A FINAL VERSION OF THE FORM 990 WAS SENT TO ALL MEMBERS OF THE GOVERNING BODY PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C THE DIRECTORS SHALL COMPLETE AND RETURN TO THE SECRETARY AN ANNUAL STATEMENT THAT EACH: (A) HAS RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY; (B) HAS READ AND UNDERSTANDS THE POLICY; (C) AGREES TO COMPLY WITH THIS POLICY; (D) UNDERSTANDS THAT THE POLICY APPLIES TO ALL COMMITTEES; AND (E) UNDERSTANDS THAT THE ORGANIZATION IS A CHARITABLE ORGANIZATION AND MUST CONTINUOUSLY ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT COMPANY, TOWERS PERRIN, PROVIDES RESEARCH, ADVICE, AND GUIDANCE TO THE COMPENSATION COMMITTEE AND SENIOR LEADERSHIP TO ENSURE THE ORGANIZATION'S COMPENSATION PROGRAMS FOR EXECUTIVES COVERED BY THE "INTERMEDIATE SANCTIONS LEGISLATION" (IRC SECTION 4958) ARE ALIGNED WITH ITS STATED PHILOSOPHY: BASE SALARIES ARE TARGETED AT THE 50TH PERCENTILE OF THE ESTABLISHED COMPARATOR MARKET; TOTAL CASH COMPENSATION (BASE SALARY PLUS ANNUAL INCENTIVE PAYMENTS) ARE TARGETED AT THE 75TH PERCENTILE OF THE ESTABLISHED COMPARATOR MARKET; TOTAL DIRECT COMPENSATION (TOTAL CASH COMPENSATION PLUS LONG TERM INCENTIVE PAYMENTS) WILL NOT EXCEED THE 90TH PERCENTILE OF THE ESTABLISHED COMPARATOR MARKET; BENEFITS ARE TARGETED AT MARKET MEDIAN; AND IN THE AGGREGATE, BASE SALARY, TOTAL CASH COMPENSATION, TOTAL DIRECT COMPENSATION AND BENEFITS COMPRISE TOTAL COMPENSATION FOR EXECUTIVES. THE COMPENSATION COMMITTEE ENSURES THAT EXECUTIVE TOTAL COMPENSATION IS REFLECTIVE OF THE ORGANIZATION'S STATED COMPENSATION PHILOSOPHY. THE COMMITTEE, IN THIS PROCESS, AUTHORIZES AND SUPPORTS AN ANNUAL THREE-STEP PROCESS UTILIZING TOWERS PERRIN'S RESOURCES: 1) SALARY LEVELS, ANNUAL BONUS TARGETS/PAYMENTS AND LONG TERM INCENTIVE GRANTS ARE COMPARED RIGOROUSLY EACH YEAR WITH MARKET DATA BASED ON COMPARABLE POSITIONS AND ORGANIZATIONS. A. COMPARABLE ORGANIZATIONS ARE TYPICALLY NOT-FOR-PROFIT HEALTHCARE SYSTEMS WITH SIMILAR OPERATING REVENUES. PRIVATE SECTOR EMPLOYER DATA, WHEN AVAILABLE, ARE ALSO INCLUDED IN THE ANALYSIS FOR "TRANSFERABLE SKILLS POSITIONS". B. HISTORICALLY, PERFORMANCE INCENTIVE PAYOUTS GENERALLY TRACK WITH A NORMAL BONUS PAYOUT DISTRIBUTION. INCENTIVE GOALS ARE PRIMARILY BASED ON FORMALLY DEFINED QUANTITATIVE GOALS. 2) ALL RECOMMENDED PAY DECISIONS ARE TESTED AGAINST THESE DATA AND THE ORGANIZATION'S STATED COMPENSATION PHILOSOPHY. 3) A FORMAL OPINION LETTER IS PREPARED BY TOWERS PERRIN, REPRESENTING THAT SENIOR EXECUTIVES ARE COMPENSATED WITHIN THE REASONABLENESS STANDARDS MANDATED BY THE IRS. A SIMILAR PROCESS IS PERFORMED BY WATSON WYATT (COMPENSATION CONSULTING FIRM) FOR THE CEO AND CFO POSITIONS. THIS LETTER PROVIDES A "SAFE HARBOR" FOR THE ORGANIZATION'S "DIRECTORS" RELATIVE TO THE REASONABLENESS OF TOTAL EXECUTIVE COMPENSATION CONSISTENT WITH IRC SECTION 4958. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS ARE PUBLISHED ANNUALLY AND ARE AVAILABLE TO THE PUBLIC AT WWW.DACBOND.COM. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: START UP COSTS -3,365,922. TOTAL TO FORM 990, PART XI, LINE 5: -3,365,922. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. COMPENSATION OF BOARD MEMBERS: FORM 990, PART VII, LINE 1: THE FOLLOWING BOARD MEMBERS WERE COMPENSATED FOR SERVICES PERFORMED FOR THE ORGANIZATION (OR A RELATED ORGANIZATION) NOT IN THE CAPACITY THEIR POSITIONS ON THE BOARD. NO BOARD MEMBER IS COMPENSATED FOR HIS SERVICES AS A BOARD MEMBER. JOHN M. JORDAN WAS COMPENSATED BY THE MEDICAL SOCIETY OF SOUTH CAROLINA FOR SERVICES AS CHIEF EXECUTIVE OFFICER. DAVID M. ELLISON WAS COMPENSATED FOR MEDICAL SERVICES RENDERED TO A RELATED ORGANIZATION. ALISON E. DILLON WAS COMPENSATED FOR MEDICAL SERVICES RENDERED TO RELATED ORGANIZATIONS. CAREALLIANCE HEALTH SERVICES 315 CALHOUN STREET 107 CHARLESTON SC 29401 570831165 HEALTHCARE SC 501(C)(3) LINE 3 N/A 0 ROPER HOSPITAL INC 315 CALHOUN STREET 107 CHARLESTON SC 29401 570828733 HEALTHCARE SC 501(C)(3) LINE 3 N/A 0 BON SECOURS ST FRANCIS XAVIER HOSPITAL 315 CALHOUN STREET 107 CHARLESTON SC 29401 571067254 HEALTHCARE SC 501(C)(3) LINE 3 N/A 0 ROPER ST FRANCIS HOSPITAL - BERKELEY 315 CALHOUN STREET 107 CHARLESTON SC 29401 263710229 HEALTHCARE (FUTURE) SC 501(C)(3) LINE 3 N/A 0 ROPER ST FRANCIS PHYSICIANS NETWORK 125 DOUGHTY STREET 760 CHARLESTON SC 29403 262946628 HEALTHCARE SC 501(C)(3) LINE 3 N/A 0 ROPER ST FRANCIS FOUNDATION 315 CALHOUN STREET 107 CHARLESTON SC 29401 571068509 SUPPORTING ORG SC 501(C)(3) LINE 11A, I N/A 0 THE MEDICAL SOCIETY OF SOUTH CAROLINA 69-B BARRE STREET CHARLESTON SC 29401 570288358 SUPPORTING ORG/FOUNDING MEMBER SC 501(C)(3) LINE 11C, III-FI N/A 0 CAREALLIANCE MEDICAL SERVICES ORGANIZATION 225 DOUGHTY STREET CHARLESTON SC 29403 571012837 INACTIVE SC N/A C 0 0 1 1 1 0 0 0 0 0 0 1 1 1 1 1 0 0