Webster Health Services Inc.

Filing Period

Oct 1, 2011 to Sep 30, 2012

Signed

Aug 15, 2013

Return Version

2011v1.5

Gross Receipts

$23,470,076

Mission

Major Activities

Activity 2

One of the primary ways NMMC-Eupora serves the community is by providing care to various populations for which it receives no compensation or receives compensation at rates significantly less than established rates. The board of directors of NMMC-Eupora has established a policy under which the hospital provides care, without charge, to needy members of its community. The charity care policy states that NMMC-Eupora will provide necessary hospital services to patients free of charge with household income levels based on the median income for Mississippi compared to the median income nationally. The Mississippi Adjusted Poverty Guidelines is approximately 74% of the federal poverty rate. The policy further provides patients with household income levels above the Mississippi Adjusted Poverty Guidelines will be liable for no more than the amount that their household income exceeds the applicable federal poverty guidelines. The policy applies to individuals who reside in Webster County. Patients from outside the county may also be granted charity care based on the judgment of NMMC-Eupora management depending on their individual circumstances. The policy also requires the patient to cooperate fully with NMMC-Eupora's request for information with which to verify the patient's eligibility. Following that policy, the hospital maintains records to identify and monitor the level of charity care it provides. These records include the amount of charges forgone for services and supplies furnished under its charity care policy. Charges forgone, based on established rates, totaled approximately $692,000 in fiscal year 2012. Based on the gross charges provided to charity patients compared to total hospital gross charges, 1.4% of all services in fiscal year 2012 were provided on a charity basis. The net cost of charity care provided by NMMC-Eupora was approximately $251,000 in fiscal year 2012. The total cost estimate is based on the ratio of costs to charges for NMMC-Eupora. All of the forgone charges mentioned above are netted against patient service revenue to arrive at net patient service revenue as reflected as program service revenue on Part VIII of Form 990 in order to be consistent with financial statement reporting and are not reported as functional expenses on the tax return.

Filer

EIN

64-0819193