l efile GRAPHIC p rint - DO NOT PROCESS As Filed Data - DLN: 93490319004586 Return of Organization Exempt From Income Tax OMB No 1545-0047 Form 990 Under section 501 (c), 527, or 4947( a)(1) of the Internal Revenue Code ( except black lung benefit trust or private foundation) 2 00 5_ Department of the Open Iµ The organization may have to use a copy of this return to satisfy state reporting requirements Treasury Inspection Internal Revenue Service A For the 2005 calendar year, or tax year beginning 01 -01-2005 and ending 12-31-2005 C Name of organization D Employer identification number B Check if applicable Please INOVA HEALTH CARE SERVICES 54-0620889 1 Address change use IRS l a b el or Number and street (or P 0 box if mail is not delivered to street address) Room/suite F Name change print or type. See 2990 TELESTAR COURT FOURTH FLOOR TA 1 Initial return Specific E Telep hone number Instruc - City or town, state or country, and ZIP + 4 (703) 289 2433 F_ Final return tions . FALLS CHURCH, VA 22042 (- Amended return rj' F_ Application pending fl Other ( specify) lµ * Section 501(c)(3) organizations and 4947(a)(1) nonexempt charitable H and I are not applicable to section 527 organizations trusts must attach a completed Schedule A (Form 990 or 990-EZ). H(a) Is this a group return for affiliates? F Yes F No H(b) If "Yes" enter number of affiliates lµ G Website :lr INOVAORG H(c) Are all affiliates included? F Yes F No (If "No," attach a list See instructions ) I Organization type (check only one) lµ ?!+ 501(c) ( 3) -4 (insert no ) (- 4947(a)(1) or F_ 527 H(d) Is this a separate return filed by an organization K Check here lµ F- if the organization's gross receipts are normally not more than $25,000 The covered by a group ruling? (- Yes No organization need not file a return with the IRS, but if the organization received a Form 990 Package in the mail, it should file a return without financial data Some states require a complete return. I Group Exemption Number Ir M Check lµ F_ if the organization is not required to L Gross receipts Add lines 6b, 8b, 9b, and 10b to line 12 Ir 1,208,441,956 attach Sch B (Form 990 , 990-EZ, or 990-PF) n TI" Revenue . Expenses. and Chances in Net Assets or Fund Balances (See the instructions.) 1 Contributions, gifts, grants, and similar amounts received a Direct public support la b Indirect public support lb 4,022,103 c Government contributions (grants) . 1c 6,090,453 10,112,556 d Total (add lines la through 1c) (cash $ 10,112,556 noncash $ ) 1d 2 Program service revenue including government fees and contracts (from Part VII, line 93) 2 1,143,881,917 3 Membership dues and assessments 3 4 Interest on savings and temporary cash investments 4 2,837,510 5 Dividends and interest from securities 5 6a Gross rents 6a 11,888,399 b Less rental expenses 6b 9,098,458 c Net rental income or (loss) (subtract line 6b from line 6a) . 6c 2,789,941 7 Other investment income (describe Ir ) . 7 3,793,071 8a Gross amount from sales of assets (A) Securities (B) Other other than inventory 8a Ch b Less cost or other basis and sales expenses 8b c Gain or (loss) (attach schedule) . Sc d Net gain or (loss) (combine line 8c, columns (A) and ( B)) . 8d 9 Special events and activities (attach schedule) If any amount is from gaming , check here IrF- a Gross revenue (not including $ of contributions reported on line 1a) 9a b Less direct expenses other than fundraising expenses . 9b c Net income or (loss) from special events (subtract line 9b from line 9a) . 9c 10a Gross sales of inventory, less returns and allowances . 10a b Less cost of goods sold 10b c Gross profit or (loss) from sales of inventory (attach schedule) (subtract line 10b from line 10a) 10e 11 Other revenue (from Part VII, line 103) 11 35,928,503 12 Total revenue (add lines 1d, 2, 3, 4, 5, 6c, 7, 8d, 9c, 10c, and 11) . 12 1,199,343,498 13 Program services (from line 44, column (B)) . 13 973,633,438 14 Management and general (from line 44, column (C)) . 14 147,143,764 u 15 Fundraising (from line 44, column (D)) . 15 4, 16 Payments to affiliates (attach schedule) 16 17 Total expenses (add lines 16 and 44, column (A)) . 17 1,120,777,202 18 Excess or (deficit) for the year (subtract line 17 from line 12) . 18 78,566,296 19 Net assets or fund balances at beginning of year (from line 73, column (A)) 19 584,945,273 20 Other changes in net assets or fund balances (attach explanation) 20 47,354,402 21 Net assets or fund balances at end of year (combine lines 18, 19, and 20) . 21 710,865,971 For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions . Cat No 11282Y Form 990 (2005) Form 990 (2005) Page 2 RIEULEM Statement of All organizations must complete column (A) Columns (B), (C), and (D) are required for section Functional Expenses 501(c)(3) and (4) organizations and section 4947(a)(1) nonexempt charitable trusts but optional for others (See the instructions ) Do not include amounts reported on line (B) Program (C) Management ( A) Total (D) Fundraising 6b, 8b, 9b, 1Ob, or 16 of Part I. services and general 22 Grants and allocations (attach schedule) (cash $ noncash $ If this amount includes foreign grants, check here F 22 23 Specific assistance to individuals (attach schedule) 23 24 Benefits paid to or for members (attach schedule) 24 25 Compensation of officers, directors, etc 25 583,973 583,973 26 Other salaries and wages 26 481,910,330 422,164,045 59,746,285 27 Pension plan contributions 27 19,655,832 16,087,538 3,568,294 28 Other employee benefits 28 44,636,369 38,470,179 6,166,190 29 Payroll taxes 29 33,232,004 29,326,020 3,905,984 30 Professional fundraising fees 30 31 Accounting fees 31 702,500 702,500 32 Legal fees 32 1,161,629 497,138 664,491 33 Supplies 33 213,482,486 211,619,273 1,863,213 34 Telephone 34 4,875,439 357,496 4,517,943 35 Postage and shipping 35 2,152,063 1,247,583 904,480 36 Occupancy 36 18,948,035 12,159,994 6,788,041 37 Equipment rental and maintenance 37 4,510,181 4,432,355 77,826 38 Printing and publications 38 4,554,855 3,764,211 790,644 39 Travel 39 1,267,412 760,002 507,410 40 Conferences, conventions, and meetings 40 1,819,288 746,801 1,072,487 41 Interest 41 25,583,810 25,583,810 42 Depreciation, depletion, etc (attach schedule) 42 79,945,959 60,084,615 19,861,344 43 Other expenses not covered above (itemize) a See Additional Data Table 43a b 43b c 43c d 43d e 43e f 43f g 43g 44 Total functional expenses . Add lines 22 through 43 (Organizations completing columns (B)-(D), carry these totals to lines 13-15) 44 1,120,777,202 973,633,438 147,143,764 0 Joint Costs . Check J* fl if you are following SOP 98-2 Are any joint costs from a combined educational campaign and fundraising solicitation reported in (B) Program services ' I* fl Yes fl No If "Yes," enter ( i) the aggregate amount of these joint costs $ , (ii) the amount allocated to Program services $ (iii) the amount allocated to Management and general $ , and (iv ) the amount allocated to Fundraising $ Form 990 (2005) Form 990 ( 2005) Page 3 UT.TIWi Statement of Program Service Accomplishments (See the Instructions.) Form 990 is available for public inspection and, for some people, serves as the primary or sole source of information about a particular organization How the public perceives an organization in such cases may be determined by the information presented on its return Therefore, please make sure the return is complete and accurate and fully describes, in Part III, the organization's programs and accomplishments What is the organization's primary exempt purpose's J* TO MAINTAIN AND OPERATE HOSPITALS AND PERFORM Program Service OTHER ACTIVITIES TO PROMOTE THE GENERAL HEALTH OF THE COMMUNITY Expenses (Required for 501(c)(3) and All organizations must describe their exempt purpose achievements in a clear and concise manner State the number of clients served, (4) orgs , and 4947(a)(1) publications issued, etc Discuss achievements that are not measurable (Section 501(c)(3) and (4) organizations and 4947(a)(1) nonexempt trusts, but optional for charitable trusts must also enter the amount of grants and allocations to others ) others a INOVA HEALTH CARE SERVICESREPORT OF PROGRAM AND COMMUNITY SERVICESFOR THE YEAR ENDED DECEMBER 31, 2005Inova Health Care Services ("IHCS", formerly Inova Health System Hospitals) is a not-for-profit corporation and a subsidiary of the parent organization, Inova Health System Foundation (Inova) Inova is a large healthcare system providing healthcare and related services throughout northern Virginia and the greater metropolitan Washington, D C area, including certain contiguous counties of Virginia and Maryland Both IHCS and Inova are operated for charitable, scientific, and educational purposes and are exempt from income tax under Section 501(c)(3) of the Internal Revenue Code IHCS was specifically chartered for the purpose of serving the health care needs of the community by establishing, maintaining, and operating hospital facilities, programs, and other shared service arrangements, carrying on health-related education activities, promoting and carrying on health-related scientific research, and engaging in activities designed and carried on to promote the general health of the community IHCS includes a centralized System Office and the various unincorporated and incorporated subsidiaries which are described below The unincorporated subsidiaries of IHCS include The Fairfax Hospital, Mount Vernon Hospital, Fair Oaks Hospital, ACCESS of Reston, ACCESS of Fairfax, and Springfield Healthplex The Institute of Research and Education