TY 2015 Form 990 Schedule O

efile Public Visual Render ObjectId: 201732279349301128 - Submission: 2017-08-15 TIN: 20-2935692

SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service

Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
MediumBullet

Attach to Form 990 or 990-EZ.
MediumBullet

Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.

OMB No. 1545-0047

2015

Open to Public
Inspection

Name of the organization

MCLEOD PHYSICIAN ASSOCIATES II

Employer identification number

20-2935692

Return Reference	Explanation
Form 990 Part III Line 4a	RECOGNIZED NATIONALLY FOR ITS QUALITY INITIATIVES AND METHODOLOGY, MCLEOD HEALTH HAS A LEADING REGIONAL PRESENCE IN NORTHEASTERN SOUTH CAROLINA AND SOUTHEASTERN NORTH CAROLINA AND A REPUTATION FOR DEDICATION TO ITS PATIENTS AND THEIR FAMILIES. MCLEOD IS CONSTANTLY SEEKING TO IMPROVE ITS PATIENT CARE WITH EFFORTS THAT ARE PHYSICIAN LED, DATA-DRIVEN AND EVIDENCE-BASED. THE 15-COUNTY AREA MCLEOD SERVES, FROM THE MIDLANDS TO THE COAST, HAS A POPULATION OF MORE THAN ONE MILLION INCLUDING THOSE WHO LIVE IN SOUTHEASTERN NORTH CAROLINA. FOUNDED IN 1906, MCLEOD HEALTH IS A LOCALLY OWNED AND MANAGED, NOT FOR PROFIT ORGANIZATION SUPPORTED BY THE STRENGTH OF MORE THAN 750 MEMBERS ON THE MEDICAL STAFF AND MORE THAN 2,000 REGISTERED NURSES. IN ADDITION TO ITS MODERN FACILITIES, PREMIER TECHNOLOGY AND EQUIPMENT, MCLEOD IS DEDICATED TO IMPROVING THE HEALTH OF THE RESIDENTS OF THOSE COMMUNITIES SERVED. MCLEOD HEALTH IS COMPOSED OF MORE THAN 8,200 EMPLOYEES AND APPROXIMATELY 90 PHYSICIAN PRACTICES IN THE 15 COUNTY REGION MCLEOD HEALTH SERVES. WITH SEVEN HOSPITALS, MCLEOD HEALTH ALSO OPERATES THREE HEALTH AND FITNESS CENTERS, A SPORTS MEDICINE AND OUTPATIENT REHABILITATION CENTER, A BEHAVIORAL HEALTH CENTER, HOSPICE, AND HOME HEALTH SERVICES. THE HOSPITALS WITHIN MCLEOD HEALTH INCLUDE: MCLEOD REGIONAL MEDICAL CENTER, MCLEOD DARLINGTON, MCLEOD DILLON, MCLEOD LORIS, MCLEOD SEACOAST, MCLEOD HEALTH CHERAW, AND MCLEOD HEALTH CLARENDON. THE FLAGSHIP HOSPITAL OF THE MCLEOD HEALTH ORGANIZATION IS MCLEOD REGIONAL MEDICAL CENTER IN FLORENCE, SOUTH CAROLINA. THIS REGIONAL REFERRAL TERTIARY CARE CENTER SERVES PATIENTS AND FAMILIES LIVING IN THE NORTHEASTERN REGION OF SOUTH CAROLINA. THE MEDICAL CENTER INCLUDES AN ACCREDITED CANCER CENTER, THREE DEDICATED OPEN HEART SURGERY SUITES AND TWO VASCULAR HYBRID ORS WITHIN THE HEART & VASCULAR INSTITUTE AS WELL AS CENTERS OF EXCELLENCE IN HEART, CANCER, SURGERY, NEUROSURGERY, TRAUMA, CHILDRENS AND WOMENS SERVICES IN ADDITION TO A DIABETES CENTER, REHABILITATION AND SPORTS MEDICINE SERVICES, AND THE CENTER FOR ADVANCED SURGERY, WHICH ALL DELIVER AN UNMATCHED LEVEL OF CARE AND EXPERIENCE TO PEOPLE IN THE REGION. ONE OF ONLY FIVE STATE-DESIGNATED REGIONAL PERINATAL CENTERS, MCLEOD REGIONAL MEDICAL CENTER ALSO OFFERS THE REGION'S ONLY CHILDREN'S HOSPITAL WHICH INCLUDES A 48-BED NEONATAL INTENSIVE CARE UNIT AND SIX-BED PEDIATRIC INTENSIVE CARE UNIT. AS THE ONLY HOSPITAL-BASED TEACHING FACILITY IN THE REGION, MCLEOD ALSO SUPPORTS A FAMILY MEDICINE RESIDENCY PROGRAM. TO PROVIDE ACCESS TO A GROWING PATIENT POPULATION, AN OUTPATIENT SURGERY CENTER IS UNDER CONSTRUCTION ON THE CAMPUS OF MCLEOD REGIONAL MEDICAL CENTER AND THE EMERGENCY DEPARTMENT AT MCLEOD SEACOAST HAS BEEN ENHANCED AND EXPANDED. ADDITIONALLY, CONSTRUCTION OF A MEDICAL COMPLEX IS UNDERWAY IN CAROLINA FOREST AS AN EXPANSION OF MCLEOD SEACOAST. MCLEOD HEALTH HAS BEEN RECOGNIZED NUMEROUS TIMES FOR ITS OUTSTANDING WORK IN QUALITY CARE, BEST PRACTICES AND CLINICAL OUTCOMES AS WELL AS ITS PHYSICIANS' DEDICATION TO QUALITY IMPROVEMENT. THE EFFORTS TO IMPROVE QUALITY AND PATIENT SAFETY ARE PHYSICIAN LED, DATA-DRIVEN AND EVIDENCE-BASED. BECAUSE OF THIS COMMITMENT BY STRONG, ACTIVE PHYSICIAN AND STAFF PARTICIPATION, MCLEOD HAS RECEIVED NATIONAL RECOGNITION FOR QUALITY INCLUDING THE 2010 AMERICAN HOSPITAL ASSOCIATION-MCKESSON QUEST FOR QUALITY PRIZE. AWARDED ANNUALLY TO ONE HOSPITAL IN THE COUNTRY, MCLEOD IS THE FIRST HOSPITAL IN SOUTH CAROLINA TO RECEIVE THIS PRESTIGIOUS HONOR SINCE THE INCEPTION OF THE NATIONAL QUEST FOR QUALITY PRIZE IN 2002. IN 2016, MCLEOD HEALTH RECEIVED 24 TOP HONORS FOR 2016 FROM HEALTHGRADES INCLUDING: MCLEOD WAS RECOGNIZED AS ONE OF HEALTHGRADES 2016: AMERICAS 100 BEST HOSPITALS FOR CARDIAC CARE AMERICA'S 100 BEST HOSPITALS FOR CORONARY INTERVENTION AMERICAS 50 BEST HOSPITALS FOR VASCULAR SURGERY AMERICA'S 100 BEST HOSPITALS FOR GENERAL SURGERY AS ONE OF THE REGION'S LARGEST SERVICE ORGANIZATIONS, INCLUDING PHYSICIANS, NURSES, AND PHARMACISTS AS WELL AS COMPUTER TECHNICIANS, ENVIRONMENTAL SERVICES WORKERS, THERAPISTS AND OTHER MEDICAL PROFESSIONALS, MCLEOD EMPLOYEES' DIRECT WAGE IMPACT TO THE REGION LAST YEAR WAS OVER $432 MILLION. THIS MONEY FLOWS INTO NUMEROUS LOCAL ORGANIZATIONS TO HELP STIMULATE THE REGION'S ECONOMY EACH YEAR. MCLEOD HAS PRUDENTLY BUILT AND DEVELOPED RESERVES IN ORDER TO CONTINUE TO GROW AS A MISSION MINDED HOSPITAL COMMITTED TO IMPROVING THE HEALTH OF PEOPLE IN THE REGION. IN TERMS OF SURPLUSES, LIKE ANY BUSINESS OR FAMILY, A HOSPITAL MUST EARN MORE THAN IT SPENDS TO BE VIABLE AND FULFILL ITS MISSION. MCLEOD HAS SET ASIDE FUNDS FOR THE FUTURE GROWTH NEEDED IN HEALTHCARE SERVICES. THESE FUNDS ARE PROFESSIONALLY MANAGED AND ARE IN ACCORDANCE WITH GUIDELINES ESTABLISHED BY STANDARD & POOR'S RATING AGENCY FOR A SERVICE ORGANIZATION APPROPRIATE TO MCLEOD'S SIZE AND SCOPE. MONEY FROM THE OPERATING MARGIN IS REINVESTED IN THE LOCAL ECONOMY AND USED FOR EXPANSION OR REPLACEMENT OF EQUIPMENT, TECHNOLOGY AND FACILITIES TO MEET THE HIGHEST STANDARDS OF CARE, QUALITY AND SAFETY FOR PATIENTS. IMPROVEMENTS TRANSLATE TO SERVICES NEEDED IN THE COMMUNITY, AS WELL AS ACCESS TO MEDICAL CARE FOR ACUTELY ILL PATIENTS AND THOSE IMPACTED BY THE STATE'S MOST PREVALENT DISEASES, MANY OF WHICH ARE THE HIGHEST IN THE NATION. MCLEOD'S PROJECTS AND MEDICAL DEVELOPMENTS ARE CONSISTENT WITH THE NEEDS IDENTIFIED BY SOUTH CAROLINA DHEC'S STATE HEALTH PLAN. EVERY YEAR, THE MCLEOD HOSPITALS SERVE MORE THAN 166,000 PATIENTS IN THEIR EMERGENCY DEPARTMENTS, REGARDLESS OF A PERSONS ABILITY TO PAY. MCLEOD HEALTH HOSPITALS ALSO ANNUALLY DIAGNOSE OR TREAT NEARLY 225,000 PEOPLE AS OUTPATIENTS AND PERFORM NEARLY 25,000 SURGICAL OPERATIONS. THE HOSPITALS AND THEIR EMERGENCY DEPARTMENTS ARE OPEN 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS A YEAR. MCLEOD IS AFFILIATED WITH ACADEMIC INSTITUTIONS TO ADDRESS THE COMMUNITYS HEALTHCARE NEEDS. MCLEOD FACILITATES A FAMILY MEDICINE RESIDENCY PROGRAM AND SUPPORTS FRANCIS MARION UNIVERSITY'S BACHELOR OF SCIENCE NURSING DEGREE PROGRAM AS WELL AS FLORENCE-DARLINGTON TECHNICAL COLLEGES ASSOCIATE DEGREE NURSING PROGRAM. ROTATIONS AT MCLEOD REGIONAL MEDICAL CENTER IN CLINICAL AND ADMINISTRATIVE AREAS ARE ALSO OFFERED TO STUDENTS FROM EDUCATIONAL PROGRAMS THROUGHOUT THE STATE. FOR MORE THAN 30 YEARS, MCLEOD HAS PARTICIPATED IN STATE-OF-THE-ART CANCER RESEARCH AND MADE CLINICAL TRIALS AVAILABLE TO PEOPLE LIVING IN NORTHEASTERN SOUTH CAROLINA AND SOUTHEASTERN NORTH CAROLINA. MCLEOD'S INVOLVEMENT IN CANCER RESEARCH IS SUPPORTED BY MULTIPLE RESEARCH PARTNERS, INCLUDING THE NATIONAL CANCER INSTITUTE (NCI) AND THE SOUTHEAST CLINICAL ONCOLOGY RESEARCH CONSORTIUM, (SCOR). MCLEOD IS DEDICATED TO PROVIDING AREA RESIDENTS THE OPPORTUNITY TO PARTICIPATE IN A CLINICAL TRIAL THAT BEST SUITS THE UNIQUE NEEDS OF THE INDIVIDUAL. AS NURSES ARE A PART OF THE FUTURE OF HEALTH CARE, THE REGION IS VERY FORTUNATE TO HAVE TWO EXCELLENT NURSING EDUCATION PROGRAMS IN FLORENCE AT FRANCIS MARION UNIVERSITY AND FLORENCE-DARLINGTON TECHNICAL COLLEGE. THESE TWO PROGRAMS ARE THE CORNERSTONE FOR RECRUITING, RETENTION AND CULTIVATION OF EXCEPTIONAL NURSES BY MCLEOD AND OTHER HEALTH CARE PROVIDERS IN THE REGION. ANNUALLY, MCLEOD HEALTH DONATES $75,000 TO BOTH THE FLORENCE-DARLINGTON TECHNICAL COLLEGE AND FRANCIS MARION UNIVERSITY NURSING PROGRAMS. THESE CONTRIBUTIONS RECOGNIZE EACH SCHOOL'S NURSING PROGRAM FOR THEIR COMMITMENT TO THE DEVELOPMENT OF OUTSTANDING HEALTH CARE PROFESSIONALS FOR THE REGION. THE SUCCESS OF THE RELATIONSHIPS WITH THE TWO COLLEGE NURSING PROGRAMS, COUPLED WITH STRONG RECRUITING EFFORTS, HAS HELPED MCLEOD AND OTHER HEALTH CARE PROVIDERS IN THE REGION IMPROVE THEIR NURSING VACANCY RATE CONSIDERABLY. IN ADDITION TO THIS YEARS GIFTS TO FRANCIS MARION UNIVERSITY AND FLORENCE-DARLINGTON TECHNICAL COLLEGE NURSING PROGRAMS, MCLEOD ALSO OFFERS SCHOLARSHIPS TO ELIGIBLE STUDENTS TO ASSIST THOSE WHO NEED FINANCIAL AID WITH NURSING SCHOOL. MCLEOD SCHOLARSHIPS ARE AVAILABLE TO COLLEGE STUDENTS WHO HAVE BEEN ACCEPTED IN AN ACCREDITED ALLIED HEALTHCARE PROGRAM SUCH AS NURSING. IN FISCAL YEAR 2016, MCLEOD HEALTH PROVIDED THE REGION WITH OVER $96 MILLION WORTH OF CHARITY CARE TO BENEFIT COMMUNITY FAMILIES. MCLEOD HEALTH NOT ONLY PROVIDES COMMUNITY BENEFIT THROUGH THE SERVICES OFFERED BUT ALSO BY STIMULATING THE LOCAL ECONOMY. LAST YEAR, MCLEOD PAID APPROXIMATELY $814,000 IN PROPERTY TAXES AND ALMOST $16 MILLION IN HOSPITAL PROVIDER TAXES TO BENEFIT THE COMMUNITIES WHERE ITS EMPLOYEES AND PATIENTS LIVE AND WORK. MCLEOD HEALTH HAS NUMEROUS INITIATIVES IN PLACE TO PROVIDE COMMUNITY BENEFITS THAT PROMOTE PREVENTION, HEALING, AND TREATMENT. SOME OF THESE INITIATIVES INCLUDE HEALTH EDUCATION THROUGH SEMINARS AND WRITTEN SOURCES, SUPPORT GROUPS, HEALTH FAIRS, HEALTH SCREENINGS AND IMMUNIZATIONS, FREE AND DISCOUNTED MEDICAL SUPPLIES, RESEARCH, AND FINANCIAL AND IN-KIND CONTRIBUTIONS. THE HEALTH SCREENINGS THAT ARE OFFERED TO THE COMMUNITY CHECK FOR PROBLEMS WITH BLOOD PRE
Form 990 Part VI Line 6	MCLEOD PHYSICIAN ASSOCIATES II HAS A SOLE MEMBER WHICH IS MCLEOD HEALTH.
Form 990 Part VI Line 7a	THE BOARD OF MCLEOD HEALTH (SOLE MEMBER) HAS FINAL AUTHORITY AS NEEDED ON THE MAKEUP AND DECISION-MAKING OF MCLEOD PHYSICIAN ASSOCIATES II'S BOARD.
Form 990 Part VI Line 7b	THE BOARD OF MCLEOD HEALTH (SOLE MEMBER) HAS FINAL AUTHORITY AS NEEDED ON THE MAKEUP AND DECISION-MAKING OF MCLEOD PHYSICIAN ASSOCIATES II'S BOARD.
Form 990 Part VI Line 11b	THE PROCESS THE ORGANIZATION USES TO REVIEW THE FORM 990 CONSISTS OF PROVIDING COPIES OF THE FORM 990 TO THE FINANCE COMMITTEE OF MCLEOD HEALTH (SOLE MEMBER OF MCLEOD PHYSICIAN ASSOCIATES II) AT THE APRIL 2017 FINANCE COMMITTEE MEETING, ALONG WITH A PRESENTATION COVERING THE FORM 990 BY THE PREPARING FIRM, KPMG LLP, TO ALLOW FOR A THOROUGH REVIEW BY THE SOLE MEMBER OF THE FINANCE COMMITTEE BEFORE THE FILING DATE OF AUGUST 15, 2017.
Form 990 Part VI Line 12c	MCLEOD PHYSICIAN ASSOCIATES II REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IN THAT ANY DIRECTOR, PRINCIPAL OFFICER, OR MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS, WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST, MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF THE COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. THE REMAINING INDIVIDUALS ON THE GOVERNING BOARD OR COMMITTEE MEETING WILL DECIDE IF CONFLICTS OF INTEREST EXIST. EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS ANNUALLY SIGNS A STATEMENT WHICH AFFIRMS SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY, HAS AGREED TO COMPLY WITH THE POLICY, AND UNDERSTANDS THAT THE ORGANIZATION IS CHARITABLE AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ITS TAX-EXEMPT PURPOSE.
Form 990 Part VI Line 15a	IN DETERMINING COMPENSATION OF MCLEOD HEALTH'S (SOLE MEMBER'S) CEO AND THE OTHER OFFICERS AND KEY EMPLOYEES, THE PROCESS INCLUDED A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. THE GOVERNANCE COMMITTEE REVIEWED AND APPROVED THE CEO'S COMPENSATION. IN THE REVIEW OF COMPENSATION, THE CEO, OTHER OFFICERS, AND OTHER KEY EMPLOYEES WERE COMPARED TO OTHER SIMILARLY SITUATED ORGANIZATIONS AND POSITIONS. INDIVIDUALS WERE NOT PRESENT WHEN THEIR COMPENSATION WAS DETERMINED.
Form 990 Part VI Line 19	GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT AVAILABLE TO THE PUBLIC UPON REQUEST. ORGANIZATION'S FORM 990 IS OPEN FOR PUBLIC INSPECTION, PROVIDES FINANCIAL INFORMATION, AND ADDRESSES ISSUES OF GOVERNANCE SUCH AS THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND GOVERNANCE DOCUMENTS.
Form 990 Part XII Line 2B	THE FINANCIAL STATEMENTS OF MCLEOD HEALTH (SOLE MEMBER) WERE AUDITED ON A CONSOLIDATED BASIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016.

Return Reference

Explanation

Form 990 Part III Line 4a

RECOGNIZED NATIONALLY FOR ITS QUALITY INITIATIVES AND METHODOLOGY, MCLEOD HEALTH HAS A LEADING REGIONAL PRESENCE IN NORTHEASTERN SOUTH CAROLINA AND SOUTHEASTERN NORTH CAROLINA AND A REPUTATION FOR DEDICATION TO ITS PATIENTS AND THEIR FAMILIES. MCLEOD IS CONSTANTLY SEEKING TO IMPROVE ITS PATIENT CARE WITH EFFORTS THAT ARE PHYSICIAN LED, DATA-DRIVEN AND EVIDENCE-BASED. THE 15-COUNTY AREA MCLEOD SERVES, FROM THE MIDLANDS TO THE COAST, HAS A POPULATION OF MORE THAN ONE MILLION INCLUDING THOSE WHO LIVE IN SOUTHEASTERN NORTH CAROLINA. FOUNDED IN 1906, MCLEOD HEALTH IS A LOCALLY OWNED AND MANAGED, NOT FOR PROFIT ORGANIZATION SUPPORTED BY THE STRENGTH OF MORE THAN 750 MEMBERS ON THE MEDICAL STAFF AND MORE THAN 2,000 REGISTERED NURSES. IN ADDITION TO ITS MODERN FACILITIES, PREMIER TECHNOLOGY AND EQUIPMENT, MCLEOD IS DEDICATED TO IMPROVING THE HEALTH OF THE RESIDENTS OF THOSE COMMUNITIES SERVED. MCLEOD HEALTH IS COMPOSED OF MORE THAN 8,200 EMPLOYEES AND APPROXIMATELY 90 PHYSICIAN PRACTICES IN THE 15 COUNTY REGION MCLEOD HEALTH SERVES. WITH SEVEN HOSPITALS, MCLEOD HEALTH ALSO OPERATES THREE HEALTH AND FITNESS CENTERS, A SPORTS MEDICINE AND OUTPATIENT REHABILITATION CENTER, A BEHAVIORAL HEALTH CENTER, HOSPICE, AND HOME HEALTH SERVICES. THE HOSPITALS WITHIN MCLEOD HEALTH INCLUDE: MCLEOD REGIONAL MEDICAL CENTER, MCLEOD DARLINGTON, MCLEOD DILLON, MCLEOD LORIS, MCLEOD SEACOAST, MCLEOD HEALTH CHERAW, AND MCLEOD HEALTH CLARENDON. THE FLAGSHIP HOSPITAL OF THE MCLEOD HEALTH ORGANIZATION IS MCLEOD REGIONAL MEDICAL CENTER IN FLORENCE, SOUTH CAROLINA. THIS REGIONAL REFERRAL TERTIARY CARE CENTER SERVES PATIENTS AND FAMILIES LIVING IN THE NORTHEASTERN REGION OF SOUTH CAROLINA. THE MEDICAL CENTER INCLUDES AN ACCREDITED CANCER CENTER, THREE DEDICATED OPEN HEART SURGERY SUITES AND TWO VASCULAR HYBRID ORS WITHIN THE HEART & VASCULAR INSTITUTE AS WELL AS CENTERS OF EXCELLENCE IN HEART, CANCER, SURGERY, NEUROSURGERY, TRAUMA, CHILDRENS AND WOMENS SERVICES IN ADDITION TO A DIABETES CENTER, REHABILITATION AND SPORTS MEDICINE SERVICES, AND THE CENTER FOR ADVANCED SURGERY, WHICH ALL DELIVER AN UNMATCHED LEVEL OF CARE AND EXPERIENCE TO PEOPLE IN THE REGION. ONE OF ONLY FIVE STATE-DESIGNATED REGIONAL PERINATAL CENTERS, MCLEOD REGIONAL MEDICAL CENTER ALSO OFFERS THE REGION'S ONLY CHILDREN'S HOSPITAL WHICH INCLUDES A 48-BED NEONATAL INTENSIVE CARE UNIT AND SIX-BED PEDIATRIC INTENSIVE CARE UNIT. AS THE ONLY HOSPITAL-BASED TEACHING FACILITY IN THE REGION, MCLEOD ALSO SUPPORTS A FAMILY MEDICINE RESIDENCY PROGRAM. TO PROVIDE ACCESS TO A GROWING PATIENT POPULATION, AN OUTPATIENT SURGERY CENTER IS UNDER CONSTRUCTION ON THE CAMPUS OF MCLEOD REGIONAL MEDICAL CENTER AND THE EMERGENCY DEPARTMENT AT MCLEOD SEACOAST HAS BEEN ENHANCED AND EXPANDED. ADDITIONALLY, CONSTRUCTION OF A MEDICAL COMPLEX IS UNDERWAY IN CAROLINA FOREST AS AN EXPANSION OF MCLEOD SEACOAST. MCLEOD HEALTH HAS BEEN RECOGNIZED NUMEROUS TIMES FOR ITS OUTSTANDING WORK IN QUALITY CARE, BEST PRACTICES AND CLINICAL OUTCOMES AS WELL AS ITS PHYSICIANS' DEDICATION TO QUALITY IMPROVEMENT. THE EFFORTS TO IMPROVE QUALITY AND PATIENT SAFETY ARE PHYSICIAN LED, DATA-DRIVEN AND EVIDENCE-BASED. BECAUSE OF THIS COMMITMENT BY STRONG, ACTIVE PHYSICIAN AND STAFF PARTICIPATION, MCLEOD HAS RECEIVED NATIONAL RECOGNITION FOR QUALITY INCLUDING THE 2010 AMERICAN HOSPITAL ASSOCIATION-MCKESSON QUEST FOR QUALITY PRIZE. AWARDED ANNUALLY TO ONE HOSPITAL IN THE COUNTRY, MCLEOD IS THE FIRST HOSPITAL IN SOUTH CAROLINA TO RECEIVE THIS PRESTIGIOUS HONOR SINCE THE INCEPTION OF THE NATIONAL QUEST FOR QUALITY PRIZE IN 2002. IN 2016, MCLEOD HEALTH RECEIVED 24 TOP HONORS FOR 2016 FROM HEALTHGRADES INCLUDING: MCLEOD WAS RECOGNIZED AS ONE OF HEALTHGRADES 2016: AMERICAS 100 BEST HOSPITALS FOR CARDIAC CARE AMERICA'S 100 BEST HOSPITALS FOR CORONARY INTERVENTION AMERICAS 50 BEST HOSPITALS FOR VASCULAR SURGERY AMERICA'S 100 BEST HOSPITALS FOR GENERAL SURGERY AS ONE OF THE REGION'S LARGEST SERVICE ORGANIZATIONS, INCLUDING PHYSICIANS, NURSES, AND PHARMACISTS AS WELL AS COMPUTER TECHNICIANS, ENVIRONMENTAL SERVICES WORKERS, THERAPISTS AND OTHER MEDICAL PROFESSIONALS, MCLEOD EMPLOYEES' DIRECT WAGE IMPACT TO THE REGION LAST YEAR WAS OVER $432 MILLION. THIS MONEY FLOWS INTO NUMEROUS LOCAL ORGANIZATIONS TO HELP STIMULATE THE REGION'S ECONOMY EACH YEAR. MCLEOD HAS PRUDENTLY BUILT AND DEVELOPED RESERVES IN ORDER TO CONTINUE TO GROW AS A MISSION MINDED HOSPITAL COMMITTED TO IMPROVING THE HEALTH OF PEOPLE IN THE REGION. IN TERMS OF SURPLUSES, LIKE ANY BUSINESS OR FAMILY, A HOSPITAL MUST EARN MORE THAN IT SPENDS TO BE VIABLE AND FULFILL ITS MISSION. MCLEOD HAS SET ASIDE FUNDS FOR THE FUTURE GROWTH NEEDED IN HEALTHCARE SERVICES. THESE FUNDS ARE PROFESSIONALLY MANAGED AND ARE IN ACCORDANCE WITH GUIDELINES ESTABLISHED BY STANDARD & POOR'S RATING AGENCY FOR A SERVICE ORGANIZATION APPROPRIATE TO MCLEOD'S SIZE AND SCOPE. MONEY FROM THE OPERATING MARGIN IS REINVESTED IN THE LOCAL ECONOMY AND USED FOR EXPANSION OR REPLACEMENT OF EQUIPMENT, TECHNOLOGY AND FACILITIES TO MEET THE HIGHEST STANDARDS OF CARE, QUALITY AND SAFETY FOR PATIENTS. IMPROVEMENTS TRANSLATE TO SERVICES NEEDED IN THE COMMUNITY, AS WELL AS ACCESS TO MEDICAL CARE FOR ACUTELY ILL PATIENTS AND THOSE IMPACTED BY THE STATE'S MOST PREVALENT DISEASES, MANY OF WHICH ARE THE HIGHEST IN THE NATION. MCLEOD'S PROJECTS AND MEDICAL DEVELOPMENTS ARE CONSISTENT WITH THE NEEDS IDENTIFIED BY SOUTH CAROLINA DHEC'S STATE HEALTH PLAN. EVERY YEAR, THE MCLEOD HOSPITALS SERVE MORE THAN 166,000 PATIENTS IN THEIR EMERGENCY DEPARTMENTS, REGARDLESS OF A PERSONS ABILITY TO PAY. MCLEOD HEALTH HOSPITALS ALSO ANNUALLY DIAGNOSE OR TREAT NEARLY 225,000 PEOPLE AS OUTPATIENTS AND PERFORM NEARLY 25,000 SURGICAL OPERATIONS. THE HOSPITALS AND THEIR EMERGENCY DEPARTMENTS ARE OPEN 24 HOURS A DAY, SEVEN DAYS A WEEK, 365 DAYS A YEAR. MCLEOD IS AFFILIATED WITH ACADEMIC INSTITUTIONS TO ADDRESS THE COMMUNITYS HEALTHCARE NEEDS. MCLEOD FACILITATES A FAMILY MEDICINE RESIDENCY PROGRAM AND SUPPORTS FRANCIS MARION UNIVERSITY'S BACHELOR OF SCIENCE NURSING DEGREE PROGRAM AS WELL AS FLORENCE-DARLINGTON TECHNICAL COLLEGES ASSOCIATE DEGREE NURSING PROGRAM. ROTATIONS AT MCLEOD REGIONAL MEDICAL CENTER IN CLINICAL AND ADMINISTRATIVE AREAS ARE ALSO OFFERED TO STUDENTS FROM EDUCATIONAL PROGRAMS THROUGHOUT THE STATE. FOR MORE THAN 30 YEARS, MCLEOD HAS PARTICIPATED IN STATE-OF-THE-ART CANCER RESEARCH AND MADE CLINICAL TRIALS AVAILABLE TO PEOPLE LIVING IN NORTHEASTERN SOUTH CAROLINA AND SOUTHEASTERN NORTH CAROLINA. MCLEOD'S INVOLVEMENT IN CANCER RESEARCH IS SUPPORTED BY MULTIPLE RESEARCH PARTNERS, INCLUDING THE NATIONAL CANCER INSTITUTE (NCI) AND THE SOUTHEAST CLINICAL ONCOLOGY RESEARCH CONSORTIUM, (SCOR). MCLEOD IS DEDICATED TO PROVIDING AREA RESIDENTS THE OPPORTUNITY TO PARTICIPATE IN A CLINICAL TRIAL THAT BEST SUITS THE UNIQUE NEEDS OF THE INDIVIDUAL. AS NURSES ARE A PART OF THE FUTURE OF HEALTH CARE, THE REGION IS VERY FORTUNATE TO HAVE TWO EXCELLENT NURSING EDUCATION PROGRAMS IN FLORENCE AT FRANCIS MARION UNIVERSITY AND FLORENCE-DARLINGTON TECHNICAL COLLEGE. THESE TWO PROGRAMS ARE THE CORNERSTONE FOR RECRUITING, RETENTION AND CULTIVATION OF EXCEPTIONAL NURSES BY MCLEOD AND OTHER HEALTH CARE PROVIDERS IN THE REGION. ANNUALLY, MCLEOD HEALTH DONATES $75,000 TO BOTH THE FLORENCE-DARLINGTON TECHNICAL COLLEGE AND FRANCIS MARION UNIVERSITY NURSING PROGRAMS. THESE CONTRIBUTIONS RECOGNIZE EACH SCHOOL'S NURSING PROGRAM FOR THEIR COMMITMENT TO THE DEVELOPMENT OF OUTSTANDING HEALTH CARE PROFESSIONALS FOR THE REGION. THE SUCCESS OF THE RELATIONSHIPS WITH THE TWO COLLEGE NURSING PROGRAMS, COUPLED WITH STRONG RECRUITING EFFORTS, HAS HELPED MCLEOD AND OTHER HEALTH CARE PROVIDERS IN THE REGION IMPROVE THEIR NURSING VACANCY RATE CONSIDERABLY. IN ADDITION TO THIS YEARS GIFTS TO FRANCIS MARION UNIVERSITY AND FLORENCE-DARLINGTON TECHNICAL COLLEGE NURSING PROGRAMS, MCLEOD ALSO OFFERS SCHOLARSHIPS TO ELIGIBLE STUDENTS TO ASSIST THOSE WHO NEED FINANCIAL AID WITH NURSING SCHOOL. MCLEOD SCHOLARSHIPS ARE AVAILABLE TO COLLEGE STUDENTS WHO HAVE BEEN ACCEPTED IN AN ACCREDITED ALLIED HEALTHCARE PROGRAM SUCH AS NURSING. IN FISCAL YEAR 2016, MCLEOD HEALTH PROVIDED THE REGION WITH OVER $96 MILLION WORTH OF CHARITY CARE TO BENEFIT COMMUNITY FAMILIES. MCLEOD HEALTH NOT ONLY PROVIDES COMMUNITY BENEFIT THROUGH THE SERVICES OFFERED BUT ALSO BY STIMULATING THE LOCAL ECONOMY. LAST YEAR, MCLEOD PAID APPROXIMATELY $814,000 IN PROPERTY TAXES AND ALMOST $16 MILLION IN HOSPITAL PROVIDER TAXES TO BENEFIT THE COMMUNITIES WHERE ITS EMPLOYEES AND PATIENTS LIVE AND WORK. MCLEOD HEALTH HAS NUMEROUS INITIATIVES IN PLACE TO PROVIDE COMMUNITY BENEFITS THAT PROMOTE PREVENTION, HEALING, AND TREATMENT. SOME OF THESE INITIATIVES INCLUDE HEALTH EDUCATION THROUGH SEMINARS AND WRITTEN SOURCES, SUPPORT GROUPS, HEALTH FAIRS, HEALTH SCREENINGS AND IMMUNIZATIONS, FREE AND DISCOUNTED MEDICAL SUPPLIES, RESEARCH, AND FINANCIAL AND IN-KIND CONTRIBUTIONS. THE HEALTH SCREENINGS THAT ARE OFFERED TO THE COMMUNITY CHECK FOR PROBLEMS WITH BLOOD PRE

Form 990 Part VI Line 6

MCLEOD PHYSICIAN ASSOCIATES II HAS A SOLE MEMBER WHICH IS MCLEOD HEALTH.

Form 990 Part VI Line 7a

THE BOARD OF MCLEOD HEALTH (SOLE MEMBER) HAS FINAL AUTHORITY AS NEEDED ON THE MAKEUP AND DECISION-MAKING OF MCLEOD PHYSICIAN ASSOCIATES II'S BOARD.

Form 990 Part VI Line 7b

THE BOARD OF MCLEOD HEALTH (SOLE MEMBER) HAS FINAL AUTHORITY AS NEEDED ON THE MAKEUP AND DECISION-MAKING OF MCLEOD PHYSICIAN ASSOCIATES II'S BOARD.

Form 990 Part VI Line 11b

THE PROCESS THE ORGANIZATION USES TO REVIEW THE FORM 990 CONSISTS OF PROVIDING COPIES OF THE FORM 990 TO THE FINANCE COMMITTEE OF MCLEOD HEALTH (SOLE MEMBER OF MCLEOD PHYSICIAN ASSOCIATES II) AT THE APRIL 2017 FINANCE COMMITTEE MEETING, ALONG WITH A PRESENTATION COVERING THE FORM 990 BY THE PREPARING FIRM, KPMG LLP, TO ALLOW FOR A THOROUGH REVIEW BY THE SOLE MEMBER OF THE FINANCE COMMITTEE BEFORE THE FILING DATE OF AUGUST 15, 2017.

Form 990 Part VI Line 12c

MCLEOD PHYSICIAN ASSOCIATES II REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY IN THAT ANY DIRECTOR, PRINCIPAL OFFICER, OR MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS, WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST, MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF THE COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. THE REMAINING INDIVIDUALS ON THE GOVERNING BOARD OR COMMITTEE MEETING WILL DECIDE IF CONFLICTS OF INTEREST EXIST. EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS ANNUALLY SIGNS A STATEMENT WHICH AFFIRMS SUCH PERSON HAS RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, HAS READ AND UNDERSTANDS THE POLICY, HAS AGREED TO COMPLY WITH THE POLICY, AND UNDERSTANDS THAT THE ORGANIZATION IS CHARITABLE AND IN ORDER TO MAINTAIN ITS FEDERAL TAX EXEMPTION IT MUST ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ITS TAX-EXEMPT PURPOSE.

Form 990 Part VI Line 15a

IN DETERMINING COMPENSATION OF MCLEOD HEALTH'S (SOLE MEMBER'S) CEO AND THE OTHER OFFICERS AND KEY EMPLOYEES, THE PROCESS INCLUDED A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. THE GOVERNANCE COMMITTEE REVIEWED AND APPROVED THE CEO'S COMPENSATION. IN THE REVIEW OF COMPENSATION, THE CEO, OTHER OFFICERS, AND OTHER KEY EMPLOYEES WERE COMPARED TO OTHER SIMILARLY SITUATED ORGANIZATIONS AND POSITIONS. INDIVIDUALS WERE NOT PRESENT WHEN THEIR COMPENSATION WAS DETERMINED.

Form 990 Part VI Line 19

GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE NOT AVAILABLE TO THE PUBLIC UPON REQUEST. ORGANIZATION'S FORM 990 IS OPEN FOR PUBLIC INSPECTION, PROVIDES FINANCIAL INFORMATION, AND ADDRESSES ISSUES OF GOVERNANCE SUCH AS THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND GOVERNANCE DOCUMENTS.

Form 990 Part XII Line 2B

THE FINANCIAL STATEMENTS OF MCLEOD HEALTH (SOLE MEMBER) WERE AUDITED ON A CONSOLIDATED BASIS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016.

For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.

Cat. No. 51056K

Schedule O (Form 990 or 990-EZ) 2015

Software ID:
Software Version: