﻿<?xml version="1.0" encoding="utf-8"?>
<Return xmlns="http://www.irs.gov/efile" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" returnVersion="2010v3.4">
  <ReturnHeader binaryAttachmentCount="0">
    <Timestamp>2011-12-05T14:47:09-06:00</Timestamp>
    <TaxPeriodEndDate>2011-09-30</TaxPeriodEndDate>
    <PreparerFirm>
      <PreparerFirmBusinessName>
        <BusinessNameLine1>EARNEY &amp; COMPANY LLP</BusinessNameLine1>
      </PreparerFirmBusinessName>
      <PreparerFirmUSAddress>
        <AddressLine1>710 MILITARY CUTOFF RD STE 250</AddressLine1>
        <City>WILMINGTON</City>
        <State>NC</State>
        <ZIPCode>284058364</ZIPCode>
      </PreparerFirmUSAddress>
    </PreparerFirm>
    <ReturnType>990</ReturnType>
    <TaxPeriodBeginDate>2010-10-01</TaxPeriodBeginDate>
    <Filer>
      <EIN>561216682</EIN>
      <Name>
        <BusinessNameLine1>LOWER CAPE FEAR HOSPICE</BusinessNameLine1>
        <BusinessNameLine2>INCORPORATED</BusinessNameLine2>
      </Name>
      <NameControl>LOWE</NameControl>
      <Phone>9107967900</Phone>
      <USAddress>
        <AddressLine1>1414 PHYSICIANS DRIVE</AddressLine1>
        <City>WILMINGTON</City>
        <State>NC</State>
        <ZIPCode>28401</ZIPCode>
      </USAddress>
    </Filer>
    <Officer>
      <Name>DEBORAH PRESSLEY</Name>
      <Title>VP FINANCE AND OPERATIONS</Title>
      <Phone>9107967900</Phone>
      <DateSigned>2011-10-11</DateSigned>
    </Officer>
    <Preparer>
      <Name>CHARLES L EARNEY CPA</Name>
      <Phone>9102569995</Phone>
      <DatePrepared>2011-12-05</DatePrepared>
    </Preparer>
    <TaxYear>2010</TaxYear>
    <BuildTS>2016-02-24 21:20:13Z</BuildTS>
  </ReturnHeader>
  <ReturnData documentCount="7">
    <IRS990 documentId="RetDoc4" referenceDocumentId="RetDoc7">
      <NameOfPrincipalOfficerPerson>DEBRA WALTERS CHAIR</NameOfPrincipalOfficerPerson>
      <AddressPrincipalOfficerUS>
        <AddressLine1>1414 PHYSICIANS DRIVE</AddressLine1>
        <City>WILMINGTON</City>
        <State>NC</State>
        <ZIPCode>28401</ZIPCode>
      </AddressPrincipalOfficerUS>
      <GrossReceipts>29415133</GrossReceipts>
      <GroupReturnForAffiliates>false</GroupReturnForAffiliates>
      <Organization501c3>X</Organization501c3>
      <WebSite>WWW.HOSPICEANDLIFECARECENTER.ORG</WebSite>
      <TypeOfOrganizationCorporation>X</TypeOfOrganizationCorporation>
      <YearFormation>1978</YearFormation>
      <StateLegalDomicile>NC</StateLegalDomicile>
      <ActivityOrMissionDescription>HOSPICE CARE FOR TERMINALLY ILL PATIENTS.</ActivityOrMissionDescription>
      <NbrVotingMembersGoverningBody>19</NbrVotingMembersGoverningBody>
      <NbrIndependentVotingMembers>19</NbrIndependentVotingMembers>
      <TotalNbrEmployees>296</TotalNbrEmployees>
      <TotalNbrVolunteers>320</TotalNbrVolunteers>
      <TotalGrossUBI>0</TotalGrossUBI>
      <ContributionsGrantsPriorYear>3057950</ContributionsGrantsPriorYear>
      <ContributionsGrantsCurrentYear>2770169</ContributionsGrantsCurrentYear>
      <ProgramServiceRevenuePriorYear>23121758</ProgramServiceRevenuePriorYear>
      <ProgramServiceRevenueCY>26642825</ProgramServiceRevenueCY>
      <InvestmentIncomePriorYear>250339</InvestmentIncomePriorYear>
      <InvestmentIncomeCurrentYear>2139</InvestmentIncomeCurrentYear>
      <OtherRevenueCurrentYear>0</OtherRevenueCurrentYear>
      <TotalRevenuePriorYear>26430047</TotalRevenuePriorYear>
      <TotalRevenueCurrentYear>29415133</TotalRevenueCurrentYear>
      <GrantsAndSimilarAmntsCY>0</GrantsAndSimilarAmntsCY>
      <BenefitsPaidToMembersCY>0</BenefitsPaidToMembersCY>
      <SalariesEtcPriorYear>14247006</SalariesEtcPriorYear>
      <SalariesEtcCurrentYear>16700932</SalariesEtcCurrentYear>
      <TotalProfFundrsngExpCY>0</TotalProfFundrsngExpCY>
      <TotalFundrsngExpCurrentYear>690075</TotalFundrsngExpCurrentYear>
      <OtherExpensePriorYear>6718465</OtherExpensePriorYear>
      <OtherExpensesCurrentYear>7572174</OtherExpensesCurrentYear>
      <TotalExpensesPriorYear>20965471</TotalExpensesPriorYear>
      <TotalExpensesCurrentYear>24273106</TotalExpensesCurrentYear>
      <RevenuesLessExpensesPriorYear>5464576</RevenuesLessExpensesPriorYear>
      <RevenuesLessExpensesCY>5142027</RevenuesLessExpensesCY>
      <TotalAssetsBOY>29227271</TotalAssetsBOY>
      <TotalAssetsEOY>37664401</TotalAssetsEOY>
      <TotalLiabilitiesBOY>8809539</TotalLiabilitiesBOY>
      <TotalLiabilitiesEOY>12404715</TotalLiabilitiesEOY>
      <NetAssetsOrFundBalancesBOY>20417732</NetAssetsOrFundBalancesBOY>
      <NetAssetsOrFundBalancesEOY>25259686</NetAssetsOrFundBalancesEOY>
      <MissionDescription>HOSPICE CARE FOR TERMINALLY ILL PATIENTS.</MissionDescription>
      <SignificantNewProgramServices>false</SignificantNewProgramServices>
      <SignificantChange>false</SignificantChange>
      <Expense>19454621</Expense>
      <Description>LOWER CAPE FEAR HOSPICE AND LIFECARECENTER (LCFH &amp; LCC) PROVIDES PROFESSIONAL HEALTH CARE AND COMFORT TO PEOPLE WITH LIFE LIMITING ILLNESS AND OFFERS HOPE, SUPPORT AND EDUCATION. HOSPICE FOCUSES ON THE PHYSICAL, EMOTIONAL AND SPIRITUAL NEEDS OF PATIENTS AND THEIR FAMILIES DURING ILLNESS, DEATH AND BEREAVEMENT. THROUGH END-OF-LIFE HOSPICE CARE, TRANSITIONAL PROGRAMS AND SERVICES, AND COMMUNITY OUTREACH, LCFH &amp; LCC STRIVES TO HELP ITS COMMUNITY MEMBERS LIVE THEIR LIVES WELL, HOWEVER SHORT OR LONG THEIR LIVES MAY BE.</Description>
      <TotalProgramServiceExpense>19454621</TotalProgramServiceExpense>
      <DescribedIn501C3 referenceDocumentId="RetDoc2">true</DescribedIn501C3>
      <ScheduleBRequired referenceDocumentId="RetDoc1">true</ScheduleBRequired>
      <PoliticalActivities>false</PoliticalActivities>
      <LobbyingActivities>false</LobbyingActivities>
      <SubjectToProxyTax>false</SubjectToProxyTax>
      <DonorAdvisedFunds referenceDocumentId="RetDoc3">false</DonorAdvisedFunds>
      <ConservationEasements referenceDocumentId="RetDoc3">false</ConservationEasements>
      <CollectionsOfArt referenceDocumentId="RetDoc3">false</CollectionsOfArt>
      <CreditCounseling referenceDocumentId="RetDoc3">false</CreditCounseling>
      <TermOrPermanentEndowments referenceDocumentId="RetDoc3">false</TermOrPermanentEndowments>
      <ReportLandBldgEquip referenceDocumentId="RetDoc3">true</ReportLandBldgEquip>
      <ReportInvestOthSecurities referenceDocumentId="RetDoc3">false</ReportInvestOthSecurities>
      <ReportProgRelInvest referenceDocumentId="RetDoc3">false</ReportProgRelInvest>
      <ReportOtherAssets referenceDocumentId="RetDoc3">false</ReportOtherAssets>
      <ReportOtherLiabilities referenceDocumentId="RetDoc3">true</ReportOtherLiabilities>
      <ReportFin48Footnote referenceDocumentId="RetDoc3">false</ReportFin48Footnote>
      <IndependentAuditFinancialStmt referenceDocumentId="RetDoc3">false</IndependentAuditFinancialStmt>
      <ConsolidatedAuditFinancialStmt referenceDocumentId="RetDoc3">true</ConsolidatedAuditFinancialStmt>
      <School>false</School>
      <ForeignOffice>false</ForeignOffice>
      <ForeignActivities>false</ForeignActivities>
      <MoreThan5000KToOrganizations>false</MoreThan5000KToOrganizations>
      <MoreThan5000KToIndividuals>false</MoreThan5000KToIndividuals>
      <ProfessionalFundraising>false</ProfessionalFundraising>
      <FundraisingActivities>false</FundraisingActivities>
      <Gaming>false</Gaming>
      <Hospital>false</Hospital>
      <GrantsToOrganizations>false</GrantsToOrganizations>
      <GrantsToIndividuals>false</GrantsToIndividuals>
      <ScheduleJRequired referenceDocumentId="RetDoc5">true</ScheduleJRequired>
      <TaxExemptBonds referenceDocumentId="RetDoc6">true</TaxExemptBonds>
      <InvestTaxExemptBonds>false</InvestTaxExemptBonds>
      <EscrowAccount>false</EscrowAccount>
      <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
      <ExcessBenefitTransaction>false</ExcessBenefitTransaction>
      <PriorExcessBenefitTransaction>false</PriorExcessBenefitTransaction>
      <LoanToOfficerOrDQP>false</LoanToOfficerOrDQP>
      <GrantToRelatedPerson>false</GrantToRelatedPerson>
      <BsnssRltnshpWithOrganization>false</BsnssRltnshpWithOrganization>
      <BsnssRltnshpThruFamilyMember>false</BsnssRltnshpThruFamilyMember>
      <OfficerEntityWithBsnssRltnshp>false</OfficerEntityWithBsnssRltnshp>
      <DeductibleNonCashContributions>false</DeductibleNonCashContributions>
      <DeductibleContributionsOfArt>false</DeductibleContributionsOfArt>
      <Terminated>false</Terminated>
      <PartialLiquidation>false</PartialLiquidation>
      <DisregardedEntity>false</DisregardedEntity>
      <RelatedEntity>false</RelatedEntity>
      <RelatedOrgControlledEntity>false</RelatedOrgControlledEntity>
      <TransactionRelatedEntity>false</TransactionRelatedEntity>
      <TransfersToExemptNonChrtblOrg>false</TransfersToExemptNonChrtblOrg>
      <ActivitiesConductedPartnership>false</ActivitiesConductedPartnership>
      <ScheduleORequired>true</ScheduleORequired>
      <NumberFormsTransmittedWith1096>102</NumberFormsTransmittedWith1096>
      <NumberW2GIncluded>0</NumberW2GIncluded>
      <NumberOfEmployees>296</NumberOfEmployees>
      <EmploymentTaxReturnsFiled>false</EmploymentTaxReturnsFiled>
      <UnrelatedBusinessIncome>false</UnrelatedBusinessIncome>
      <ForeignFinancialAccount>false</ForeignFinancialAccount>
      <ProhibitedTaxShelterTrans>false</ProhibitedTaxShelterTrans>
      <TaxablePartyNotification>false</TaxablePartyNotification>
      <NonDeductibleContributions>false</NonDeductibleContributions>
      <IndoorTanningServices>false</IndoorTanningServices>
      <InfoInScheduleOPartVI>X</InfoInScheduleOPartVI>
      <NbrVotingGoverningBodyMembers>19</NbrVotingGoverningBodyMembers>
      <NumberIndependentVotingMembers>19</NumberIndependentVotingMembers>
      <FamilyOrBusinessRelationship>false</FamilyOrBusinessRelationship>
      <DelegationOfManagementDuties>false</DelegationOfManagementDuties>
      <ChangesToOrganizingDocs>false</ChangesToOrganizingDocs>
      <MaterialDiversionOrMisuse>false</MaterialDiversionOrMisuse>
      <MembersOrStockholders>false</MembersOrStockholders>
      <ElectionOfBoardMembers>false</ElectionOfBoardMembers>
      <DecisionsSubjectToApproval>false</DecisionsSubjectToApproval>
      <MinutesOfGoverningBody>true</MinutesOfGoverningBody>
      <MinutesOfCommittees>true</MinutesOfCommittees>
      <OfficerMailingAddress>false</OfficerMailingAddress>
      <LocalChapters>false</LocalChapters>
      <Form990ProvidedToGoverningBody>false</Form990ProvidedToGoverningBody>
      <ConflictOfInterestPolicy>true</ConflictOfInterestPolicy>
      <AnnualDisclosureCoveredPersons>true</AnnualDisclosureCoveredPersons>
      <RegularMonitoringEnforcement>true</RegularMonitoringEnforcement>
      <WhistleblowerPolicy>true</WhistleblowerPolicy>
      <DocumentRetentionPolicy>true</DocumentRetentionPolicy>
      <CompensationProcessCEO>true</CompensationProcessCEO>
      <CompensationProcessOther>true</CompensationProcessOther>
      <InvestmentInJointVenture>false</InvestmentInJointVenture>
      <StatesWhereCopyOfReturnIsFiled>NC</StatesWhereCopyOfReturnIsFiled>
      <OwnWebsite>X</OwnWebsite>
      <UponRequest>X</UponRequest>
      <TheBooksAreInCareOf>
        <NamePerson>DEBORAH PRESSLEY</NamePerson>
        <TelephoneNumber>9107967900</TelephoneNumber>
        <AddressUS>
          <AddressLine1>1414 PHYSICIANS DRIVE</AddressLine1>
          <City>WILMINGTON</City>
          <State>NC</State>
          <ZIPCode>28401</ZIPCode>
        </AddressUS>
      </TheBooksAreInCareOf>
      <Form990PartVIISectionA>
        <NamePerson>MITCH LAMM</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>JAMES E GRAHAM JR</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>JOHN BIRKENHEUER</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>LYNN CRUTCHFIELD</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DARRYL MILLS</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>SHARON MOODY</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DEBRA WALTERS</NamePerson>
        <Title>CHAIR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <Officer>X</Officer>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR BRIAN GILMORE</NamePerson>
        <Title>VICE-CHAIR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <Officer>X</Officer>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR JAMES LANIER</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>BERNADETTE CORREA</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>HILL ROGERS</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DALLAS ALFORD</NamePerson>
        <Title>SECRETARY/TR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <Officer>X</Officer>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DON BOYD</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>BOB RESH</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>RENEE HORTON</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>SHAMAIR FAISON</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>TONI MELVIN-WHITAKER</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>JAY PETERSON</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>SUE GRONOSTAJSKI</NamePerson>
        <Title>DIRECTOR</Title>
        <AverageHoursPerWeek>4.00</AverageHoursPerWeek>
        <IndividualTrusteeOrDirector>X</IndividualTrusteeOrDirector>
        <ReportableCompFromOrganization>0</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>0</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>LAUREN BYSTROM</NamePerson>
        <Title>CEO</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <Officer>X</Officer>
        <ReportableCompFromOrganization>176032</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>20982</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DEBORAH PRESSLEY</NamePerson>
        <Title>VICE PRESIDE</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <Officer>X</Officer>
        <ReportableCompFromOrganization>147742</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>18683</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR MICHELE CLANCY</NamePerson>
        <Title>MEDICAL DIRE</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <HighestCompensatedEmployee>X</HighestCompensatedEmployee>
        <ReportableCompFromOrganization>269227</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>20659</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR KAREN REICHOW</NamePerson>
        <Title>VP MEDICAL S</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <HighestCompensatedEmployee>X</HighestCompensatedEmployee>
        <ReportableCompFromOrganization>226298</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>25237</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR WILLIAM HOLT</NamePerson>
        <Title>PHYSICIAN</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <HighestCompensatedEmployee>X</HighestCompensatedEmployee>
        <ReportableCompFromOrganization>191248</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>20319</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR REBECCA SUMMERLIN</NamePerson>
        <Title>PHYSICIAN</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <HighestCompensatedEmployee>X</HighestCompensatedEmployee>
        <ReportableCompFromOrganization>190944</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>18633</OtherCompensation>
      </Form990PartVIISectionA>
      <Form990PartVIISectionA>
        <NamePerson>DR AUDREY SUTTON-SURAK</NamePerson>
        <Title>PHYSICIAN</Title>
        <AverageHoursPerWeek>40.00</AverageHoursPerWeek>
        <HighestCompensatedEmployee>X</HighestCompensatedEmployee>
        <ReportableCompFromOrganization>133525</ReportableCompFromOrganization>
        <ReportableCompFromRelatedOrgs>0</ReportableCompFromRelatedOrgs>
        <OtherCompensation>12176</OtherCompensation>
      </Form990PartVIISectionA>
      <TotalReportableCompFromOrg>1335016</TotalReportableCompFromOrg>
      <TotalOtherCompensation>136689</TotalOtherCompensation>
      <NumberIndividualsGT100K>13</NumberIndividualsGT100K>
      <FormersListed>false</FormersListed>
      <TotalCompGT150K>true</TotalCompGT150K>
      <CompensationFromOtherSources>false</CompensationFromOtherSources>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>BLUE CROSS BLUE SHEILD OF NC</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>PO BOX 2291</AddressLine1>
            <City>DURHAM</City>
            <State>NC</State>
            <ZIPCode>27702</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>HEALTH INSURANC</DescriptionOfServices>
        <Compensation>1932928</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>HOSPICE PHARMACIA INC</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>1601 CHERRY STREET</AddressLine1>
            <City>PHILADELPHIA</City>
            <State>PA</State>
            <ZIPCode>19102</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>PHARMACY SUPPLI</DescriptionOfServices>
        <Compensation>1558698</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>DAVIS HEALTH CARE CENTER</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>1011 PORTERS NECK ROAD</AddressLine1>
            <City>WILMINGTON</City>
            <State>NC</State>
            <ZIPCode>28411</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>ASSISTED LIVING</DescriptionOfServices>
        <Compensation>874463</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>NEW HANOVER MEDICAL CENTER</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>2131 S 17TH STREET</AddressLine1>
            <City>WILMINGTON</City>
            <State>NC</State>
            <ZIPCode>28401</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>MEDICAL SERVICE</DescriptionOfServices>
        <Compensation>792714</Compensation>
      </ContractorCompensation>
      <ContractorCompensation>
        <NameOfContractor>
          <NameBusiness>
            <BusinessNameLine1>JOHNSON DRUG CO INC</BusinessNameLine1>
          </NameBusiness>
        </NameOfContractor>
        <AddressOfContractor>
          <AddressUS>
            <AddressLine1>714 NEW BRIDGE ST</AddressLine1>
            <City>JACKSONVILLE</City>
            <State>NC</State>
            <ZIPCode>28540</ZIPCode>
          </AddressUS>
        </AddressOfContractor>
        <DescriptionOfServices>PHARMACY</DescriptionOfServices>
        <Compensation>484704</Compensation>
      </ContractorCompensation>
      <NumberOfContractorsGT100K>35</NumberOfContractorsGT100K>
      <GovernmentGrants>301396</GovernmentGrants>
      <AllOtherContributions>2468773</AllOtherContributions>
      <TotalContributions>2770169</TotalContributions>
      <ProgramServiceRevenue>
        <Description>PATIENT SERVICES</Description>
        <TotalRevenueColumn>26642825</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>26642825</RelatedOrExemptFunctionIncome>
      </ProgramServiceRevenue>
      <TotalProgramServiceRevenue>26642825</TotalProgramServiceRevenue>
      <InvestmentIncome>
        <TotalRevenueColumn>2139</TotalRevenueColumn>
        <ExclusionAmount>2139</ExclusionAmount>
      </InvestmentIncome>
      <TotalRevenue>
        <TotalRevenueColumn>29415133</TotalRevenueColumn>
        <RelatedOrExemptFunctionIncome>26642825</RelatedOrExemptFunctionIncome>
        <ExclusionAmount>2139</ExclusionAmount>
      </TotalRevenue>
      <CompCurrentOfficersDirectors>
        <Total>323774</Total>
        <ProgramServices>161887</ProgramServices>
        <ManagementAndGeneral>80943</ManagementAndGeneral>
        <Fundraising>80944</Fundraising>
      </CompCurrentOfficersDirectors>
      <OtherSalariesAndWages>
        <Total>12843931</Total>
        <ProgramServices>10357234</ProgramServices>
        <ManagementAndGeneral>2245631</ManagementAndGeneral>
        <Fundraising>241066</Fundraising>
      </OtherSalariesAndWages>
      <OtherEmployeeBenefits>
        <Total>2525898</Total>
        <ProgramServices>2020718</ProgramServices>
        <ManagementAndGeneral>454662</ManagementAndGeneral>
        <Fundraising>50518</Fundraising>
      </OtherEmployeeBenefits>
      <PayrollTaxes>
        <Total>1007329</Total>
        <ProgramServices>805863</ProgramServices>
        <ManagementAndGeneral>181318</ManagementAndGeneral>
        <Fundraising>20148</Fundraising>
      </PayrollTaxes>
      <FeesForServicesOther>
        <Total>413676</Total>
        <ProgramServices>296837</ProgramServices>
        <ManagementAndGeneral>112460</ManagementAndGeneral>
        <Fundraising>4379</Fundraising>
      </FeesForServicesOther>
      <Occupancy>
        <Total>523367</Total>
        <ProgramServices>420451</ProgramServices>
        <ManagementAndGeneral>95981</ManagementAndGeneral>
        <Fundraising>6935</Fundraising>
      </Occupancy>
      <Interest>
        <Total>213493</Total>
        <ProgramServices>103867</ProgramServices>
        <ManagementAndGeneral>101662</ManagementAndGeneral>
        <Fundraising>7964</Fundraising>
      </Interest>
      <Insurance>
        <Total>157083</Total>
        <ProgramServices>124475</ProgramServices>
        <ManagementAndGeneral>30112</ManagementAndGeneral>
        <Fundraising>2496</Fundraising>
      </Insurance>
      <OtherExpenses>
        <Description>MEDICAL SUPPLIES</Description>
        <Total>3722620</Total>
        <ProgramServices>3722620</ProgramServices>
      </OtherExpenses>
      <OtherExpenses>
        <Description>OTHER</Description>
        <Total>720532</Total>
        <ProgramServices>199343</ProgramServices>
        <ManagementAndGeneral>304173</ManagementAndGeneral>
        <Fundraising>217016</Fundraising>
      </OtherExpenses>
      <OtherExpenses>
        <Description>DEPRECIATION</Description>
        <Total>674557</Total>
        <ProgramServices>305047</ProgramServices>
        <ManagementAndGeneral>361587</ManagementAndGeneral>
        <Fundraising>7923</Fundraising>
      </OtherExpenses>
      <OtherExpenses>
        <Description>BAD DEBT</Description>
        <Total>618381</Total>
        <ProgramServices>618381</ProgramServices>
      </OtherExpenses>
      <OtherExpenses>
        <Description>PURCHASED SERVICES</Description>
        <Total>369180</Total>
        <ProgramServices>251589</ProgramServices>
        <ManagementAndGeneral>102983</ManagementAndGeneral>
        <Fundraising>14608</Fundraising>
      </OtherExpenses>
      <AllOtherExpenses>
        <Total>159285</Total>
        <ProgramServices>66309</ProgramServices>
        <ManagementAndGeneral>56898</ManagementAndGeneral>
        <Fundraising>36078</Fundraising>
      </AllOtherExpenses>
      <TotalFunctionalExpenses>
        <Total>24273106</Total>
        <ProgramServices>19454621</ProgramServices>
        <ManagementAndGeneral>4128410</ManagementAndGeneral>
        <Fundraising>690075</Fundraising>
      </TotalFunctionalExpenses>
      <CashNonInterestBearing>
        <BOY>3806278</BOY>
        <EOY>5118084</EOY>
      </CashNonInterestBearing>
      <SavingsAndTempCashInvestments>
        <BOY>6545467</BOY>
        <EOY>10132506</EOY>
      </SavingsAndTempCashInvestments>
      <PledgesAndGrantsReceivable>
        <BOY>679008</BOY>
        <EOY>690729</EOY>
      </PledgesAndGrantsReceivable>
      <AccountsReceivable>
        <BOY>3051959</BOY>
        <EOY>3288832</EOY>
      </AccountsReceivable>
      <PrepaidExpensesDeferredCharges>
        <BOY>329764</BOY>
        <EOY>611163</EOY>
      </PrepaidExpensesDeferredCharges>
      <LandBuildingsEquipmentBasis>16611341</LandBuildingsEquipmentBasis>
      <LandBldgEquipmentAccumDeprec>3557556</LandBldgEquipmentAccumDeprec>
      <LandBuildingsEquipmentBasisNet>
        <BOY>12827128</BOY>
        <EOY>13053785</EOY>
      </LandBuildingsEquipmentBasisNet>
      <InvestmentsPubTradedSecurities>
        <BOY>1987667</BOY>
        <EOY>3669257</EOY>
      </InvestmentsPubTradedSecurities>
      <OtherAssetsTotal>
        <EOY>1100045</EOY>
      </OtherAssetsTotal>
      <TotalAssets>
        <BOY>29227271</BOY>
        <EOY>37664401</EOY>
      </TotalAssets>
      <AccountsPayableAccruedExpenses>
        <BOY>2508595</BOY>
        <EOY>2796332</EOY>
      </AccountsPayableAccruedExpenses>
      <DeferredRevenue>
        <BOY>24019</BOY>
        <EOY>15496</EOY>
      </DeferredRevenue>
      <TaxExemptBondLiabilities>
        <BOY>3900000</BOY>
        <EOY>7200000</EOY>
      </TaxExemptBondLiabilities>
      <MortNotesPyblSecuredInvestProp>
        <BOY>2106114</BOY>
        <EOY>2085237</EOY>
      </MortNotesPyblSecuredInvestProp>
      <OtherLiabilities>
        <BOY>270811</BOY>
        <EOY>307650</EOY>
      </OtherLiabilities>
      <TotalLiabilities>
        <BOY>8809539</BOY>
        <EOY>12404715</EOY>
      </TotalLiabilities>
      <FollowSFAS117>X</FollowSFAS117>
      <UnrestrictedNetAssets>
        <BOY>19177696</BOY>
        <EOY>22885605</EOY>
      </UnrestrictedNetAssets>
      <TemporarilyRestrictedNetAssets>
        <BOY>1240036</BOY>
        <EOY>2374081</EOY>
      </TemporarilyRestrictedNetAssets>
      <TotalNetAssetsFundBalances>
        <BOY>20417732</BOY>
        <EOY>25259686</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>29227271</BOY>
        <EOY>37664401</EOY>
      </TotalLiabNetAssetsFundBalances>
      <ReconcilationRevenueExpenses>5142027</ReconcilationRevenueExpenses>
      <ReconcilationOtherChanges>-300073</ReconcilationOtherChanges>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>false</AccountantCompileOrReview>
      <FSAudited>false</FSAudited>
    </IRS990>
    <IRS990ScheduleA documentId="RetDoc2">
      <PubliclySupportedOrg170b1Avi>X</PubliclySupportedOrg170b1Avi>
      <GiftsGrantsContribReceived170>
        <CurrentTaxYearMinus4Years>1331219</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>3089041</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>2944993</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>3057950</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>2770169</CurrentTaxYear>
        <Total>13193372</Total>
      </GiftsGrantsContribReceived170>
      <Total170>
        <CurrentTaxYearMinus4Years>1331219</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>3089041</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>2944993</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>3057950</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>2770169</CurrentTaxYear>
        <Total>13193372</Total>
      </Total170>
      <PublicSupportTotal170>13193372</PublicSupportTotal170>
      <GrossInvestmentIncome170>
        <CurrentTaxYearMinus4Years>221233</CurrentTaxYearMinus4Years>
        <CurrentTaxYearMinus3Years>36639</CurrentTaxYearMinus3Years>
        <CurrentTaxYearMinus2Years>124565</CurrentTaxYearMinus2Years>
        <CurrentTaxYearMinus1Year>250339</CurrentTaxYearMinus1Year>
        <CurrentTaxYear>2139</CurrentTaxYear>
        <Total>634915</Total>
      </GrossInvestmentIncome170>
      <TotalSupport>13828287</TotalSupport>
      <GrossReceiptsFromAdmissionsEtc>26642825</GrossReceiptsFromAdmissionsEtc>
      <PublicSupportPertcentage170>0.95410</PublicSupportPertcentage170>
      <PublicSupportPertcentPriorYear>0.93990</PublicSupportPertcentPriorYear>
      <ThirtyThreePercntTestsCY170>X</ThirtyThreePercntTestsCY170>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="RetDoc1">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
        <ContributorNameBusiness>
          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleD documentId="RetDoc3">
      <DisclosedOrgsLegalControl>false</DisclosedOrgsLegalControl>
      <DisclosedForCharitablePurposes>false</DisclosedForCharitablePurposes>
      <WrittenPolicyMonitoring>false</WrittenPolicyMonitoring>
      <Sect170hRequirementsSatisfied>false</Sect170hRequirementsSatisfied>
      <SolicitedAssetsForSale>false</SolicitedAssetsForSale>
      <AgentTrusteeEtc>false</AgentTrusteeEtc>
      <IncludedOnFS>false</IncludedOnFS>
      <EndowmentsHeldByUnrelatedOrgs>false</EndowmentsHeldByUnrelatedOrgs>
      <EndowmentsHeldByRelatedOrgs>false</EndowmentsHeldByRelatedOrgs>
      <AreRelatedOrgsListedScheduleR>false</AreRelatedOrgsListedScheduleR>
      <Land>
        <OtherCostOrOtherBasis>3359496</OtherCostOrOtherBasis>
        <BookValue>3359496</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>10388128</OtherCostOrOtherBasis>
        <Depreciation>1766836</Depreciation>
        <BookValue>8621292</BookValue>
      </Buildings>
      <TotalOfBookValueLandBuildings>11980788</TotalOfBookValueLandBuildings>
      <OtherLiabilities>
        <Description>FMV OF SWAP</Description>
        <Amount>307650</Amount>
      </OtherLiabilities>
      <TotalOfAmounts>307650</TotalOfAmounts>
      <TotalRevenue>29415133</TotalRevenue>
      <TotalExpenses>24273106</TotalExpenses>
      <ExcessOrDeficitForYear>5142027</ExcessOrDeficitForYear>
      <NetUnrealizedGLOnInvestments>-300073</NetUnrealizedGLOnInvestments>
      <TotalAdjustments>-300073</TotalAdjustments>
      <ExcessOrDeficitPerFS>4841954</ExcessOrDeficitPerFS>
      <TotRevenueEtcAuditedFinclStmt>29650292</TotRevenueEtcAuditedFinclStmt>
      <NetUnrealizedGainsInvestments>-300073</NetUnrealizedGainsInvestments>
      <DonatedSrvcAndUseOfFacilities>535232</DonatedSrvcAndUseOfFacilities>
      <RevenueNotRptdF990>235159</RevenueNotRptdF990>
      <RevenueSubtotal>29415133</RevenueSubtotal>
      <TotalRevenuePerForm990>29415133</TotalRevenuePerForm990>
      <TotExpensesEtcAuditedFinclStmt>24808338</TotExpensesEtcAuditedFinclStmt>
      <DonatedServicesUseOfFacilities>535232</DonatedServicesUseOfFacilities>
      <ExpensesNotRptdF990>535232</ExpensesNotRptdF990>
      <ExpensesSubtotal>24273106</ExpensesSubtotal>
      <TotalExpensesPerForm990>24273106</TotalExpensesPerForm990>
    </IRS990ScheduleD>
    <IRS990ScheduleJ documentId="RetDoc5">
      <CompensationCommittee>X</CompensationCommittee>
      <Form990OfOtherOrganizations>X</Form990OfOtherOrganizations>
      <CompensationSurvey>X</CompensationSurvey>
      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
      <SeverancePayment>false</SeverancePayment>
      <SupplementalNonqualRetirePlan>false</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>false</EquityBasedCompArrangement>
      <CompBasedOnRevenueOfFilingOrg>false</CompBasedOnRevenueOfFilingOrg>
      <CompBasedOnRevenueRelatedOrgs>false</CompBasedOnRevenueRelatedOrgs>
      <CompBasedNetEarningsFilingOrg>false</CompBasedNetEarningsFilingOrg>
      <CompBasedNetEarningsRelateOrgs>false</CompBasedNetEarningsRelateOrgs>
      <AnyNonFixedPayments>false</AnyNonFixedPayments>
      <InitialContractException>false</InitialContractException>
      <Form990ScheduleJPartII>
        <NamePerson>LAUREN BYSTROM</NamePerson>
        <BaseCompensationFilingOrg>176032</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>5088</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>15894</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>197014</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>184915</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DEBORAH PRESSLEY</NamePerson>
        <BaseCompensationFilingOrg>147742</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>3898</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>14785</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>166425</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DR MICHELE CLANCY</NamePerson>
        <BaseCompensationFilingOrg>269227</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>11987</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>8672</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>289886</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>237898</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DR KAREN REICHOW</NamePerson>
        <BaseCompensationFilingOrg>226298</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>6302</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>18935</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>251535</TotalCompensationFilingOrg>
        <CompReportPrior990FilingOrg>220845</CompReportPrior990FilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DR WILLIAM HOLT</NamePerson>
        <BaseCompensationFilingOrg>191248</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>3640</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>16679</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>211567</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DR REBECCA SUMMERLIN</NamePerson>
        <BaseCompensationFilingOrg>190944</BaseCompensationFilingOrg>
        <DeferredCompFilingOrg>3699</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>14934</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>209577</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
    </IRS990ScheduleJ>
    <IRS990ScheduleK documentId="RetDoc6">
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>BOND PAYABLE</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>561074313</IssuerEIN>
        <CUSIPNumber>6579027B2</CUSIPNumber>
        <DateIssued>2007-11-01</DateIssued>
        <IssuePrice>4000000</IssuePrice>
        <DescriptionOfPurpose>HEALTH CARE FACILITY</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>BOND PAYABLE</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>561074313</IssuerEIN>
        <DateIssued>2011-04-01</DateIssued>
        <IssuePrice>3400000</IssuePrice>
        <DescriptionOfPurpose>HEALTH CARE FACILITY</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartII>
        <YearOfSubstCompletion>2008</YearOfSubstCompletion>
        <CurrentRefunding>false</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <TotalProceeds>3400000</TotalProceeds>
        <CapitalExpenditures>472788</CapitalExpenditures>
        <AmountUnspent>2927212</AmountUnspent>
        <YearOfSubstCompletion>2012</YearOfSubstCompletion>
        <CurrentRefunding>false</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
        <FinalAllocationMade>false</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>false</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <BondCounselRoutinelyEngaged>false</BondCounselRoutinelyEngaged>
        <PostIssuanceComplianceProcdrs>false</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <BondCounselRoutinelyEngaged>false</BondCounselRoutinelyEngaged>
        <PostIssuanceComplianceProcdrs>false</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>false</Form8038TFiled>
        <VariableRateIssue>false</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>false</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <ExceptionToRebate>false</ExceptionToRebate>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>false</Form8038TFiled>
        <VariableRateIssue>false</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>false</GrossProceedsInvestedInGIC>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <ExceptionToRebate>false</ExceptionToRebate>
      </Form990ScheduleKPartIV>
    </IRS990ScheduleK>
    <IRS990ScheduleO documentId="RetDoc7">
      <GeneralExplanation>
        <Identifier>ORGANIZATION'S PROCESS USED TO REVIEW FORM 990</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 11B</ReturnReference>
        <Explanation>AUDIT COMMITTEE HIRES CPA FIRM TO PERFORM AUDIT. AFTER AUDIT COMPLETED THE AUDIT COMMITTEE INSTRUCTS CPA FIRM TO DRAFT 990, AND THEN AUDIT COMMITTEE AND MANAGEMENT REVEIW THE 990 AND APPROVE. OFFICER OF THE ORGANIZATION SIGNS FORM 8879 AND THE CPA FIRM EFILES 990.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ENFORCEMENT OF CONFLICTS POLICY</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 12C</ReturnReference>
        <Explanation>BOARD MEMBERS AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE CONFLICTS AND POTENTIAL CONFLICTS ANNUALLY. IF CONFLICT ARISES, THE CONFLICTED INDIVIDUAL IS REQUIRED TO LEAVE THE ROOM AND NOT TO PARTICIPATE IN ANY VOTE ON THE CONFLICTED TOPIC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMPENSATION PROCESS FOR TOP OFFICIAL</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 15A</ReturnReference>
        <Explanation>HOSPICE BOARD OF DIRECTORS, WHO ARE INDEPENDENT AND RECEIVE NO SALARY, APPOINT A COMPENSATION COMMITTEE. THE COMMITTE IS COMPRISED OF ONLY NON CONFLICTED MEMBERS. THE MEMBERS ARE REQUIRED TO RESEARCH AND RETAIN DOCUMENTATION FROM VARIOUS SOURCES ON COMPARABLE SALARIES. ONE SOURCE USED IS 990 FILINGS BY OTHER SIMILAR NOT FOR PROFITS. ONLY THIS COMMITTEE CAN APPROVE SALARY OF THE EXECUTIVE DIRECTOR.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMPENSATION PROCESS FOR OFFICERS</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 15B</ReturnReference>
        <Explanation>HOSPICE BOARD OF DIRECTORS, WHO ARE INDEPENDENT AND RECEIVE NO SALARY, APPOINT A COMPENSATION COMMITTEE. THE COMMITTE IS COMPRISED OF ONLY NON CONFLICTED MEMBERS. THE MEMBERS ARE REQUIRED TO RESEARCH AND RETAIN DOCUMENTATION FROM VARIOUS SOURCES ON COMPARABLE SALARIES. ONE SOURCE USED IS 990 FILINGS BY OTHER SIMILAR NOT FOR PROFITS. THIS COMMITTEE ASSIGNS REASONABLE SALARIES FOR EMPLOYEES, AND THIS INFORMATION IS INCORPORATED INTO THE ANNUAL BUDGET. MANAGEMENT IS INSTRUCTED TO STAY WITHIN THESE GUIDELINES AND BUDGETS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>GOVERNING DOCUMENTS DISCLOSURE EXPLANATION</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 19</ReturnReference>
        <Explanation>ONLINE AT WWW.GUIDESTAR.ORG AND BY REQUEST.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
  </ReturnData>
</Return>