SRHS Ambulatory: Quick Review of Tax Returns

The below was sent in by a friend regarding SRHS Ambulatory Services, Inc.  Several months ago we reviewed the real estate transactions by SRHS Ambulatory Services and found them to have been conducted at arms length. That is, there was no outward evidence of insider dealing on the sales.

There is too much information on the returns to discuss in a single email.  Suffice it to say, this non-profit entity:

1. Has had various officers, all of whom are or were SRHS employees (Trulove, Shoemaker, Holland, Crews, Barnes-Taylor)
2. Receives K-1s from (and thus is a part owner of) two for-profit LLCs: Mississippi Coast Endoscopy and Ambulatory Surgery Center & Ocean Springs Surgical and Endoscopy Center). The income from those two entities for the 2013 tax year was $761,000.
3. Reports Total Assets as of 12/31/13 of $11.5M.
4. Of that total, $7.6M is real estate with a basis of $6.4M.  However, there is no debt, loan, mortgage, etc. identified on the return.  So where did the money come from to buy this real estate, which is unidentified in the return?
5. The real property owned in Jackson County by this entity can be viewed by going to http://mapping.co.jackson.ms.us/jacksoncountyflexwebmap/
6. Of the total assets, $3.2M is cash.  This cash is accumulating with no reported distributions to SRHS (which federal law would prohibit since this is a 501(c)(3) entity).

We will be posting the 990s shortly.