2024-11-14T12:40:33-06:00 2023-12-31 990 2023-01-01 560653348 PENDER MEMORIAL HOSPITAL INCORPORATED PEND 3362772411 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 ALICE POPE EVP & CFO 3362772411 2024-11-14 1 2023 2024-10-15 13:58:12Z NOVANT HEALTH PENDER MEDICAL CENTER CARL ARMATO 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 35108250 0 X WWW.NOVANTHEALTH.ORG X 1964 NC SEE SCHEDULE O 11 10 261 40 0 0 212025 355405 34022935 34633782 77492 2829 90367 113734 34402819 35105750 0 0 0 0 12142254 12598550 0 0 0 25326383 24057776 37468637 36656326 -3065818 -1550576 32698981 49409565 3262102 20140266 29436879 29269299 X SEE SCHEDULE O 0 0 35650223 0 34638727 PENDER MEMORIAL HOSPITAL, INCORPORATED ("PMH") DBA NOVANT HEALTH PENDER MEDICAL CENTER EXISTS TO PROMOTE THE HEALTH OF THE MEMBERS OF PENDER COUNTY, NORTH CAROLINA AND SURROUNDING AREAS, REGARDLESS OF A PATIENT'S ABILITY TO PAY. THE HOSPITAL HAS 86 LICENSED BEDS. IN 2023, THERE WERE 17,184 PATIENT DAYS, 489 DISCHARGES, 2,117 INPATIENT/OUTPATIENT SURGERIES, 35,638 OUTPATIENT ENCOUNTERS, AND 19,710 EMERGENCY DEPARTMENT VISITS. 35650223 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 22 0 1 261 1 0 0 0 0 0 0 0 0 0 0 0 0 X 11 10 0 1 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X X WENDI STOCKSTILL 3362772411 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 AMY LOGSDON TRUSTEE (TO 12/31/23) 0.20 0.00 X 0 0 0 BARBARA BIEHNER VICE CHAIR 0.20 0.20 X X 0 0 0 DENISE HOUGHTON SECR 0.20 0.00 X X 0 0 0 HIRAM WILLIAMS TRUSTEE 0.20 0.00 X 0 0 0 JIMMY TATE TRUSTEE (TO 1/3/23) 0.20 0.00 X 0 0 0 LYNWOOD MEADOWS TREAS (TO 12/31/23) 0.20 0.20 X X 0 0 0 MOSTAFA REZK MD TRUSTEE/MEDICAL DIRECTOR 3.00 0.00 X 17875 0 0 MYRA MCDUFFIE TRUSTEE 0.20 0.00 X 0 0 0 TAMARA SAVAGE CHAIR (TO 12/31/23) 0.20 0.00 X X 0 0 0 TIMOTHY BAKER TRUSTEE 0.20 0.00 X 0 0 0 WENDY FLETCHER-HARDEE TRUSTEE (FR 1/1/23) 0.20 0.00 X 0 0 0 WILLIE ARMSTRONG TRUSTEE 0.20 0.00 X 0 0 0 FRED HARGETT EVP/CFO (TO 9/6/23) 0.20 50.00 X 0 2400670 50705 GEOFFREY GARDNER CFO (FR 9/6/23) 0.20 50.00 X 0 909106 128749 RUTH GLASER PRES & COO 25.00 25.00 X 0 298325 41185 DENISE PINER RN SUPERVISOR 45.00 0.00 X 114093 0 9050 HARRY COWART PHARMACIST IN CHARGE 45.00 0.00 X 177844 0 16898 KRISTEN SANABRIA COORD OUTPATIENT THERAPY 45.00 0.00 X 111320 0 9938 MELANIE VINSON STAFF RN 45.00 0.00 X 113951 0 15014 535083 3608101 271539 4 0 1 0 VANTAGE TECHNOLOGY LLC 2201 N WILLENBORG STREET SUITE 5 EFFINGHAM IL 62401 TECHNOLOGY SERVICES 446674 ECEP II P A 4402 SHIPYARD BLVD WILMINGTON NC 28403 MEDICAL SERVICES 337140 GMR ROCKY POINT LLC 319 CLEMATIS STREET SUITE 608 WEST PALM BEACH FL 33401 PROPERTY MANAGEMENT 202962 3 26346 329059 355405 NET PATIENT REVENUE 622110 34633782 34633782 34633782 2829 2829 7573 0 7573 7573 7573 3517 2500 1017 1017 CAFETERIA MEALS 722514 76270 76270 MISCELLANEOUS REVENUE 900099 23929 23929 ADMINISTRATION 551114 4945 4945 105144 35105750 34638727 0 111618 9555852 9293226 262626 626175 626175 2416523 2416523 19635 19635 3493144 3244447 248697 2531 1124 1407 302014 302014 60788 37345 23443 1094161 1094105 56 5803 5734 69 25983 25613 370 743 743 1089431 1075829 13602 335355 335355 CONTRACT LABOR 5789141 5429762 359379 CORPORATE SUPPORT 5784663 5784663 MEDICAL SUPPLIES 2627730 2627730 PHARMACEUTICALS 1306366 1306366 2120288 2044212 76076 36656326 35650223 1006103 0 14547094 35991363 50000 138799 4600679 4791693 667079 1288513 298415 345347 12133928 5721288 6574612 6412640 5961102 441210 32698981 49409565 1877402 1825438 0 43424 1384700 18271404 3262102 20140266 X 29436879 29269299 29436879 29269299 32698981 49409565 X -1550576 -2585688 3968684 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 42149 42149 1120291 214996 905295 5573078 3218582 2354496 4167798 1918992 2248806 1230612 368718 861894 6412640 0 THIRD PARTY PAYMENT PAYABLE 1321441 OPERATING LEASE 441210 PENSION LIABILITIES 4788935 PATIENT REFUNDS 297077 DUE TO AFFILIATES 11422741 18271404 X PART X, LINE 2: PART X, LINE 2: LIABILITY UNDER FIN 48 (ASC 740) FOOTNOTE THE AUDIT FOR NOVANT HEALTH AND ITS AFFILIATES IS PREPARED ON A CONSOLIDATED BASIS. THE COMPANY IS REQUIRED TO EVALUATE UNCERTAIN TAX POSITIONS. THIS EVALUATION INCLUDES A QUANTIFICATION OF TAX RISK IN AREAS SUCH AS UNRELATED BUSINESS TAXABLE INCOME AND THE TAXATION OF OUR FOR-PROFIT SUBSIDIARIES. THIS EVALUATION DID NOT HAVE A MATERIAL EFFECT ON THE COMPANY'S CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. 1 1 X 1 X 300.000000000000 0 0 1 0 1 1 3020712 3020712 0.08240 6892009 10131667 0 0.00000 12624 6559 6065 0.00020 9925345 10138226 3026777 0.08260 14236 14236 0.00040 5977274 3250319 2726955 0.07440 5991510 3250319 2741191 0.07480 15916855 13388545 5767968 0.15740 689 689 0.00000 689 689 0.00000 1 2603776 0 6782504 5651111 1131393 X 1 0 1 1 PMH DBA NH PENDER MEDICAL CENTER 507 EAST FREMONT STREET BURGAW NC 28425 WWW.NOVANTHEALTH.ORG H0115 X X X X SKILLED NURSING & REHABILITATION NH PENDER MEDICAL CENTER 1 0 0 1 X X X X X X X X X 22 1 0 1 1 X SEE SECTION C X 1 22 1 SEE SECTION C 0 1 X 300.000000000000 0.000000000000 X X X X 1 1 X X X 1 X SEE SECTION C X SEE SECTION C X SEE SECTION C X X X X X X 1 X 0 X X X X 1 X 0 0 NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 3J: NH PENDER MEDICAL CENTER:PART V, SECTION B, LINE 3E:VARIOUS SOCIAL, BEHAVIORAL, AND CLINICAL HEALTH NEEDS WERE IDENTIFIED THROUGH PRIMARY AND SECONDARY DATA IN THE NEEDS ASSESSMENT. ONCE THE HEALTH NEEDS WERE IDENTIFIED, SURVEYS AND COMMUNITY MEETINGS WERE CONDUCTED IN WHICH THE VARIOUS COMMUNITY STAKEHOLDERS RANKED THE HEALTH ISSUES BASED ON AVAILABLE DATA INCLUDING SEVERITY OF NEED AND MAGNITUDE OF IMPACT. THE INFORMATION GATHERED WAS THEN MATRIXED AND SCORED IN ORDER TO RANK THE FOCUS AREAS AND PRIORITIZE THE IDENTIFIED HEALTH NEEDS, BASED ON CAREFUL CONSIDERATION OF ESTIMATED FEASIBILITY AND EFFECTIVENESS OF POSSIBLE INTERVENTIONS. THE PRIORITIZED IDENTIFIED HEALTH NEEDS AND SUPPORTING DATA ARE THEN REVIEWED AND DELIBERATED UPON FURTHER BY THE BOARD BEFORE FINAL APPROVAL. AN IMPLEMENTATION PLAN WAS CREATED FOR THE PRIORITIZED HEALTH NEEDS AND PROGRESS TOWARD MEETING IMPLEMENTATION PLAN GOALS IS ASSESSED REGULARLY THROUGHOUT THE COMMUNITY HEALTH NEEDS ASSESSMENT LIFE CYCLE. COMMUNITY PARTNERS WHO ARE CURRENTLY SERVING COMMUNITY NEEDS ARE IDENTIFIED AS POTENTIAL PARTNERS FOR COLLABORATION ON THOSE IDENTIFIED NEEDS THAT ARE NOT PART OF THE IMPLEMENTATION PLAN. NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 5: WHILE CONDUCTING THE COMMUNITY HEALTH NEEDS ASSESSMENT ("CHNA"), NOVANT HEALTH HOSPITAL FACILITIES SOLICITED INPUT FROM AND CONSULTED WITH A VARIETY OF COMMUNITY MEMBERS AND REPRESENTATIVES INCLUDING, BUT NOT LIMITED TO, REPRESENTATIVES OF CITY AND COUNTY GOVERNMENT, COUNTY HEALTH DEPARTMENTS, COMMUNITY-BASED ORGANIZATIONS, FOUNDATIONS, CHURCHES, COLLEGES/UNIVERSITIES, COMMUNITY COALITIONS AND OTHER SOCIAL SERVICE AGENCIES. INPUT WAS GATHERED THROUGH A COMMUNITY SURVEY (DISTRIBUTED THROUGH A VARIETY OF PARTNERS, METHODS, AND CHANNELS), COMMUNITY MEETINGS AND/OR FOCUS GROUPS, AND STAKEHOLDER'S INTERVIEWS. INPUT WAS ALSO SOLICITED THROUGH WRITTEN COMMENTS THROUGHOUT THE SURVEY PERIOD UNTIL THE FINAL COMMUNITY PRIORITY SETTING MEETING(S) AND/OR SURVEY. THE SCOPE OF EXPERTISE WAS BROAD AND INCLUDED REPRESENTATIVES OF PUBLIC HEALTH, MINORITY POPULATIONS, HEALTH DISPARITIES, AND SOCIAL SERVICES. DATA DERIVED FROM THESE EXERCISES IS BOTH QUANTITATIVE AND QUALITATIVE IN SCOPE.PENDER MEMORIAL HOSPITAL, INC. (DBA NOVANT HEALTH PENDER MEDICAL CENTER), IN COLLABORATION WITH KULIK STRATEGIC ADVISERS AND LOCAL ORGANIZATIONS CONDUCTED A COMPREHENSIVE CHNA THAT WAS APPROVED BY THE BOARD OF TRUSTEES IN 2022. THE CHNA PROCESS INVOLVED EXTENSIVE PRIMARY AND SECONDARY DATA COLLECTION, INCLUDING THE COMMUNITY HEALTH OPINION SURVEY, FOCUS GROUPS, KEY INFORMANT INTERVIEWS AND VARIOUS LOCAL, STATE, AND FEDERAL DATA SOURCES. THE COMMUNITY HEALTH OPINION SURVEY WAS MADE AVAILABLE TO PENDER COUNTY RESIDENTS FROM JUNE 2022 TO OCTOBER 2022 THROUGH BROAD DISTRIBUTION EFFORTS INCLUDING OUTREACH THROUGH ORGANIZATIONS AND COMMUNITY GROUPS ACROSS THE COUNTY, INCLUDING THOSE WHO REPRESENT THE INTERESTS OF MEMBERS OF THE MEDICALLY UNDERSERVED, LOW-INCOME, AND MINORITY POPULATIONS. MANY COMMUNITY PARTNERS WERE INSTRUMENTAL IN THIS CHNA PROCESS, INCLUDING BUT NOT LIMITED TO: SHARE THE TABLE, PENDER COUNTY GOVERNMENT, CAROUSEL CENTER, PENDER COUNTY SCHOOLS, MT. CALVARY CENTER FOR LEADERSHIP, COASTAL HORIZONS, SAFE HAVEN, PENDER ADULT SERVICES, PENDER CHRISTIAN SERVICES, BURGAW AREA CHAMBER OF COMMERCE, PENDER ALLIANCE FOR TEEN HEALTH, LOWER CAPE FEAR YWCA, PENDER COUNTY SCHOOLS, DEPARTMENT OF SOCIAL SERVICES, WOODBURY, WELLNESS BISHOP, TOWN OF BURGAW COMMISSIONERS, UNC-WILMINGTON, BURGAW POLICE DEPARTMENT AND PENDER COUNTY COOPERATIVE EXTENSION. THESE COMMUNITY PARTNERS SERVE VARIOUS COMMUNITIES, REPRESENTING THE INTERESTS OF MANY COUNTY RESIDENTS, INCLUDING INDIVIDUALS WITH SUBSTANCE USE DISORDER DIAGNOSES, INDIVIDUALS WITH JUSTICE SYSTEM INTERACTIONS, CHILDREN FROM LOW-INCOME FAMILIES, LGBTQ+ COMMUNITY MEMBERS, CHILDREN EXPERIENCING ABUSE, HOMELESS AND HOUSING-INSECURE INDIVIDUALS, FOOD-INSECURE INDIVIDUALS, INDIVIDUALS IN NEED OF COUNTY SOCIAL SERVICES, LOW-INCOME SENIORS, AND TEENS. ADDITIONAL PARTNERS INVOLVED IN THE CHNA PROCESS ALSO SERVE A VARIETY OF INDIVIDUALS SPANNING ACROSS DIVERSE RACES, ETHNICITIES, AGES, SEXUAL ORIENTATIONS, PREFERRED LANGUAGES, AND GENDER IDENTITY DEMOGRAPHICS. SPECIFIC REFERENCES AND OTHER SUPPORTING INFORMATION CAN BE FOUND IN THE MOST RECENT CHNA LOCATED AT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/OUR-IMPACT/COMMUNITY-HEALTH-NEEDS/. NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 6B: KULIK STRATEGIC ADVISERS NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 7D: NH PENDER MEDICAL CENTERPART V, SECTION B, LINE 7BHTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/NH PENDER MEDICAL CENTERPART V, SECTION B, LINE 10AHTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/ NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 11: THE FACILITY'S CHNA IDENTIFIED MULTIPLE NEEDS FOR THE COMMUNITY SERVED. THE NEEDS IDENTIFIED WERE REVIEWED AND PRIORITIZED BY THE CHNA RESOURCE GROUP AND SUBSEQUENTLY BY EACH FACILITY'S BOARD. THEY EVALUATED EACH DOCUMENTED NEED AND ITS INTERSECTION WITH THE ORGANIZATION'S VISION, COMMITMENTS, KEY STRENGTHS AND AVAILABLE RESOURCES BEFORE FURTHER PRIORITIZING THE HEALTH NEEDS AND AGREEING UPON THE TOP HEALTH PRIORITIES TO BE ADDRESSED. WHERE POSSIBLE, THE FACILITIES LEVERAGED THE SYSTEM'S STRENGTHS AND RESOURCES TO BEST ADDRESS THOSE NEEDS THAT ARE HIGHEST IN PRIORITY BASED ON SCOPE, SEVERITY, HEALTH DISPARITIES ASSOCIATED WITH THE NEED, AND THE ESTIMATED FEASIBILITY AND EFFECTIVENESS OF POSSIBLE INTERVENTIONS. EACH FACILITY HAS ADOPTED AND EXECUTED AN IMPLEMENTATION STRATEGY THAT ADDRESSES THE PRIORITIZED COMMUNITY HEALTH NEEDS FROM THE CHNAS. THE IMPLEMENTATION STRATEGIES OUTLINE THE PLAN THAT THE HOSPITAL FACILITIES UNDERTAKE TO MEET THOSE HEALTH NEEDS IN EACH COMMUNITY SERVED. CERTAIN NEEDS THAT WERE IDENTIFIED BY THE CHNA HAVE NOT BEEN ADDRESSED. CERTAIN OF THE NEEDS NOT ADDRESSED FALL OUTSIDE THE SCOPE OF TRADITIONAL HEALTHCARE (E.G., DENTAL WORK). OTHER NEEDS ARE ADDRESSED BY COLLABORATIVE WORK AND HAVE OTHER RESOURCES IN THE COMMUNITY THAT CAN MORE APPROPRIATELY MEET THESE NEEDS BASED ON SCOPE OF SERVICES AND EXPERTISE.NOVANT HEALTH PENDER MEDICAL CENTER CONDUCTED A COMPREHENSIVE CHNA THAT WAS APPROVED BY THE BOARD OF TRUSTEES IN 2022. RESULTS FROM THIS CHNA PROCESS HELPED IDENTIFY THE FOLLOWING SIGNIFICANT HEALTH NEEDS IN PENDER COUNTY: ACCESS TO HEALTHCARE, MENTAL HEALTH, CHRONIC DISEASE, DENTAL HEALTH, ELDER CARE OPTIONS, FAMILY PLANNING, AND PREGNANCY & INFANT WELLNESS. AFTER THOROUGH EVALUATION, THE FOLLOWING TOP THREE HEALTH NEEDS WERE IDENTIFIED AS PRIORITY AREAS FOR NOVANT HEALTH PENDER MEDICAL CENTER: CHRONIC DISEASE (WITH A FOCUS ON HYPERTENSION & DIABETES), MENTAL HEALTH & SUBSTANCE USE (WITH A FOCUS ON DEPRESSION & OPIOID USE), AND TRANSPORTATION. NOVANT HEALTH HAS DEVELOPED STRATEGIC IMPLEMENTATION PLANS TO ADDRESS THESE PRIORITIZED AREAS OF NEED AND IS COMMITTED TO IMPROVING THE COMMUNITY'S HEALTH.SPECIFIC REFERENCES AND OTHER SUPPORTING INFORMATION CAN BE FOUND IN THE MOST RECENT CHNA LOCATED AT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/OUR-IMPACT/COMMUNITY-HEALTH-NEEDS/. NH PENDER MEDICAL CENTER PART V, SECTION B, LINE 13H: OTHER ELIGIBILITY CRITERIA EXPLAINED IN THE FAP INCLUDE THE FOLLOWING: FREE CARE IS ONLY APPLICABLE TO MEDICALLY NECESSARY SERVICES; PROVIDER BASED PHYSICIAN CLINICS REQUIRE THAT PATIENTS MUST HAVE BEEN TREATED BY AN AFFILIATED MEDICAL GROUP PRIMARY CARE PHYSICIAN WITHIN THE PREVIOUS THREE YEARS; PATIENTS MUST BE UNABLE TO ACCESS ENTITLEMENT PROGRAMS; PATIENTS WITH SPECIAL CIRCUMSTANCES SUCH AS BANKRUPTCY MAY ALSO BE ELIGIBLE FOR CHARITY CARE. NH PENDER MEDICAL CENTERPART V, LINE 16A, FAP WEBSITE: HTTPS://WWW.NOVANTHEALTH.ORG/FOR-PATIENTS/BILLING--INSURANCE/FINANCIAL-ASSISTANCE/NH PENDER MEDICAL CENTERPART V, LINE 16B, FAP APPLICATION:HTTPS://WWW.NOVANTHEALTH.ORG/GLOBALASSETS/BUTTONS-AND-DOCUMENTS-CTASLINKS/DOCUMENTS-PDFS/FAA_APP_ENGLISH.PDFNH PENDER MEDICAL CENTERPART V, LINE 16C, FAP PLAIN LANGUAGE SUMMARY:HTTPS://WWW.NOVANTHEALTH.ORG/GLOBALASSETS/BUTTONS-AND-DOCUMENTS-CTASLINKS/DOCUMENTS-PDFS/NOVANT-HEALTH-ACUTE-PLS-ENGLISH.PDF PART I, LINE 3C: OTHER CRITERIA BESIDES INCOME AND FPG USED IN DETERMINING ELIGIBILITY FOR FREE CARE INCLUDE: (1) RESIDENCY - PATIENTS MUST RESIDE WITHIN THE SERVICE AREA OF THE HOSPITAL; (2) THE KIND OF SERVICE PROVIDED - ONLY MEDICALLY NECESSARY SERVICES ARE COVERED; (3) PATIENT STATUS - IN PROVIDER BASED PHYSICIAN CLINICS, PATIENTS MUST HAVE BEEN TREATED BY AN AFFILIATED MEDICAL GROUP PRIMARY CARE PHYSICIAN WITHIN THE PREVIOUS THREE YEARS; AND (4) ACCESS TO HEALTH CARE COVERAGE - PATIENTS MUST BE UNABLE TO ACCESS EMPLOYER SPONSORED HEALTH PLANS OR ENTITLEMENT PROGRAMS. LASTLY, THE PATIENT MUST BE WITHOUT SUBSTANTIAL LIQUID ASSETS (I.E. CASH-ON-HAND). ASSETS SUCH AS HOUSES, CARS, PENALIZED RETIREMENT SAVINGS FUNDS, ETC. ARE NOT CONSIDERED LIQUID ASSETS. SUBSTANTIAL ASSETS ARE DEFINED AS ENOUGH CASH-ON-HAND TO COVER THE MEDICAL EXPENSES WITHOUT PLACING A HARDSHIP ON THE PATIENT. PATIENTS WITH SPECIAL CIRCUMSTANCES SUCH AS BANKRUPTCY MAY ALSO BE ELIGIBLE FOR CHARITY CARE; DETERMINATION IS MADE ON A CASE BY CASE BASIS UNDER THESE CIRCUMSTANCES. PART I, LINE 6A: PART I, LINE 6A:THE ORGANIZATION IS A PART OF NOVANT HEALTH, AN INTEGRATED NON-PROFIT HEALTH SYSTEM. THE SYSTEM-WIDE COMMUNITY BENEFIT REPORT, REFERRED TO AS THE "COMMUNITY IMPACT REPORT", IS PRODUCED BY NOVANT HEALTH, INC., A RELATED ORGANIZATION AND THE PARENT COMPANY OF THE HEALTHCARE SYSTEM. NOVANT HEALTH'S ANNUAL COMMUNITY IMPACT REPORT CAN BE FOUND AT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/. PLEASE NOTE THAT THE NUMERIC DATA IN THE COMMUNITY IMPACT REPORT IS NOT BASED UPON CALCULATIONS ACCORDING TO FORM 990, SCHEDULE H INSTRUCTIONS, BUT RATHER THE AMOUNTS ARE PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HEALTHCARE ASSOCIATION REPORTING GUIDELINES. THEREFORE, THE REPORT SHOULD NOT BE RELIED UPON AS EQUIVALENT TO THE TOTAL OF ALL SYSTEM ORGANIZATIONS' FORM 990, SCHEDULE H PART I AMOUNTS OR BASED ON THE REQUIRED COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY UNDER INTERNAL REVENUE CODE SECTION 501(R). PART I, LINE 7: COSTS REPORTED IN THE TABLE FOR FINANCIAL ASSISTANCE (I.E., CHARITY CARE) AND CERTAIN OTHER COMMUNITY BENEFITS AMOUNTS ARE CALCULATED USING A REPORTING ENTITY SPECIFIC COST-TO-CHARGE RATIO ("CCR") BASED ON FORM 990, SCHEDULE H, INSTRUCTIONS, WORKSHEET 2. PART I, LN 7 COL(F): THE AMOUNT OF BAD DEBT REMOVED FROM TOTAL EXPENSES IN THE DENOMINATOR WAS $0. PART I, LINE 4: NOVANT HEALTH HAS A CATASTROPHIC SETTLEMENT POLICY WHICH IS SEPARATE FROM THE FINANCIAL ASSISTANCE POLICY. THE PURPOSE OF THIS POLICY IS TO IDENTIFY CIRCUMSTANCES IN WHICH NOVANT HEALTH AFFILIATES MAY WORK WITH PATIENTS TO MEET THEIR FINANCIAL OBLIGATIONS WHEN THEY HAVE LARGE OUT-OF POCKET EXPENSES RELATED TO A VISIT THAT IS NOT COVERED BY FINANCIAL ASSISTANCE. PART II, COMMUNITY BUILDING ACTIVITIES: THE ORGANIZATION'S COMMUNITY BUILDING ACTIVITIES ADDRESS THE UNDERLYING CAUSES OF HEALTH PROBLEMS AND IMPACT THE HEALTH OF OUR COMMUNITY THROUGH PARTNERSHIPS WITH LOCAL AGENCIES DEDICATED TO IMPROVING THE LIVES OF ALL INDIVIDUALS. WE PROVIDE FINANCIAL SUPPORT AND OTHER RESOURCES TO ORGANIZATIONS SUCH AS LOCAL YMCA'S, UNITED WAY PARTNER AGENCIES, CHAMBERS OF COMMERCE, PARKS AND RECREATION DEPARTMENTS, AND OTHER LOCAL COMMUNITY ORGANIZATIONS, ASSISTING WITH COMMUNITY AND COUNTY COALITIONS, AND PROVIDING EDUCATION SEMINARS AND TRAINING FOR COMMUNITY MEMBERS AND GROUPS. THROUGH THESE PARTNERSHIPS AND OUTREACH METHODS WE ARE ABLE TO SUCCESSFULLY BRIDGE THE GAP OF NEED FOR RESOURCES BEYOND TRADITIONAL HEALTHCARE SERVICES WITHIN THE COMMUNITIES WE SERVE. PART III, LINE 2: IMPLICIT PRICE CONCESSIONS (FORMERLY KNOWN AS BAD DEBT EXPENSE) ARE DETERMINED BASED ON MANAGEMENT'S ASSESSMENT OF CONTRACTUAL AGREEMENTS, DISCOUNT POLICIES, AND HISTORICAL EXPERIENCE, AS WELL AS CURRENT AND EXPECTED FUTURE ECONOMIC CONDITIONS. PART III, LINE 4: THE ORGANIZATION'S IMPLICIT PRICE CONCESSIONS (FORMERLY KNOWN AS BAD DEBT EXPENSE, AT COST) ON LINE 2 IS CALCULATED USING THE SAME METHODOLOGY AS FINANCIAL ASSISTANCE AND OTHER COMMUNITY BENEFITS USING AN ENTITY SPECIFIC COST-TO-CHARGE RATIO (CCR). FOOTNOTE 2 (ACCOUNTS RECEIVABLE) ON PAGE 8 OF THE AUDITED FINANCIAL STATEMENTS DESCRIBES PRICE CONCESSIONS. PART III, LINE 8: THE METHODOLOGY USED TO DETERMINE THE MEDICARE ALLOWABLE COSTS REPORTED IN THE ORGANIZATION'S MEDICARE COST REPORT AS REFLECTED IN THE AMOUNT REPORTED IN PART III, LINE 6 IS DETERMINED BY FOLLOWING THE MEDICARE PRINCIPLES OF ALLOWABLE COSTS. COST FOR THE OVERHEAD DEPARTMENTS ARE STEPPED DOWN TO THE REMAINING COST CENTERS BASED ON STATISTICS FOR EACH OVERHEAD COST CENTER. ONCE THE STEP-DOWN PROCESS IS COMPLETE, A COST TO CHARGE RATIO ("CCR") IS DEVELOPED FOR EACH COST CENTER. THE CCR IS THEN APPLIED TO THE MEDICARE REVENUE BY COST CENTER AND TOTALED.IT SHOULD BE NOTED THAT THE MEDICARE COST REPORTS DO NOT ADDRESS ANY MANAGED CARE MEDICARE REVENUES, COSTS, OR RELATED SHORTFALL. THE TOTAL REVENUES REPORTED AS RECEIVED FROM MEDICARE IN LINE 5 OF SECTION B ARE ONLY REPRESENTATIVE OF MEDICARE FEE FOR SERVICE PAYMENTS RECEIVED. THE ALLOWABLE COSTS ON LINE 6 ARE SIGNIFICANTLY LOWER THAN THE ACTUAL EXPENDITURES. AS SUCH, THE SHORTFALL IS UNDERESTIMATED.EVERY HOSPITAL TREATS MEDICARE PATIENTS. SOME HOSPITALS ARE LOCATED IN HIGH MEDICARE POPULATION AREAS; OTHERS PROVIDE SERVICES DISPROPORTIONATELY USED BY MEDICARE PATIENTS. MEDICARE RATES AND NUMBERS OF MEDICARE PATIENTS ARE NOT NEGOTIATED. AS REIMBURSEMENT RATES DECLINE RELATIVE TO COSTS OF CARE, HOSPITALS CONTINUE TO SERVE THE MEDICARE POPULATION. WITHOUT THIS SERVICE THESE PATIENTS WOULD BECOME AN OBLIGATION ON THE GOVERNMENT. ANY UNREIMBURSED COSTS OF THIS CARE ARE A COMMUNITY BENEFIT PROVIDED BY THE HOSPITAL TO THE COMMUNITY AND GOVERNMENT. PART III, LINE 9B: THE ORGANIZATION'S BILLING AND COLLECTIONS POLICY DOES EXPLAIN ACTIONS AGAINST PATIENTS WHO HAVE OUTSTANDING DELINQUENT AMOUNTS, BUT THE POLICY DOES NOT CONTAIN PROVISIONS FOR COLLECTION PRACTICES AGAINST PATIENTS WHO ARE ELIGIBLE UNDER THE FINANCIAL ASSISTANCE POLICY (FAP) BECAUSE FAP ELIGIBLE PATIENTS RECEIVE 100% FREE CARE AND THEREFORE DO NOT RECEIVE BILLS ONCE FAP ELIGIBILITY HAS BEEN ESTABLISHED. PART VI, LINE 2: PART VI, LINE 2: NEEDS ASSESSMENTTHE ORGANIZATION IS PART OF NOVANT HEALTH, AN INTEGRATED NON-PROFIT HEALTHCARE SYSTEM, NOVANT EMPLOYS A COMMUNITY ENGAGEMENT DEPARTMENT THAT FACILITATES COMMUNITY BENEFIT ACROSS THE SYSTEM. THE COMMUNITY ENGAGEMENT DEPARTMENT IS RESPONSIBLE FOR COORDINATING THE PREPARATION OF THE COMMUNITY HEALTH NEEDS ASSESSMENTS (CHNA) FOR EACH HOSPITAL WITHIN THE SYSTEM, INCLUDING THE CHNAS REPORTED IN PART V, SECTION B. THE COMMUNITY ENGAGEMENT DEPARTMENT WORKS WITH EACH HOSPITAL FACILITY TO IDENTIFY ORGANIZATIONS AND RESOURCES WITHIN THEIR RESPECTIVE COMMUNITIES THAT PARTICIPATE IN ALLEVIATING SIGNIFICANT COMMUNITY HEALTH NEEDS. THESE ORGANIZATIONS AND RESOURCES INCLUDE PUBLIC HEALTH DEPARTMENTS, LOCAL COMMUNITY COALITIONS AND CLINICS REPRESENTING THE MEDICALLY UNDERSERVED, UNITED WAY, YMCAS, LOCAL UNIVERSITIES, AND MORE. COMMUNITY HEALTH ASSESSMENTS PREPARED BY OTHER ORGANIZATIONS ARE USED IN COMBINATION WITH INTERNAL HOSPITAL DATA AND INFORMATION COLLECTED FROM LOCAL AGENCIES TO PREPARE THE CHNAS FOR HOSPITAL FACILITIES. THROUGH DATA COLLECTION AND COMMUNITY PARTNERSHIPS, NOVANT HEALTH IS ABLE TO ASSESS UNMET NEEDS AND WORK TO DIRECTLY SUPPORT PARTNERS IN ADDRESSING THOSE NEEDS WITHIN ITS COMMUNITIES SERVED. ORGANIZATIONAL PARTNERSHIPS ESTABLISHED BY THE COMMUNITY ENGAGEMENT DEPARTMENT ARE OFTEN LEVERAGED TO ADDRESS NEEDS THAT WERE IDENTIFIED IN THE CHNAS, BUT WERE NOT PRIORITIZED BY THE FACILITY IMPLEMENTATION PLAN. IN ADDITION TO ADDRESSING HEALTH NEEDS IDENTIFIED THROUGH THE CHNA PROCESS, EACH HOSPITAL FACILITY RESPONDS TO REQUESTS FOR SPECIFIC COMMUNITY BENEFIT ACTIVITIES OR PROGRAMS FROM PUBLIC AGENCIES AND/OR COMMUNITY GROUPS. PART VI, LINE 3: PART VI, LINE 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCENOVANT HEALTH IS COMMITTED TO PROVIDING OUTSTANDING HEALTHCARE TO ALL MEMBERS OF THE COMMUNITIES SERVED, REGARDLESS OF THEIR ABILITY TO PAY. ITS FINANCIAL COUNSELING TEAMS ARE CONSTANTLY WORKING WITH THE PATIENTS WITHIN COMMUNITIES SERVED TO UNDERSTAND PATIENT NEEDS AND ENSURE THAT THEIR POLICIES AND PROCESSES ADDRESS THESE NEEDS. NOVANT HEALTH ALSO MAINTAINS CONTRACTS WITH MEDICAID ELIGIBILITY VENDORS. THESE TEAMS OFFER ADDITIONAL SUPPORT IN PROCESSING AND ASSESSING HOW THE HEALTHCARE SYSTEM SERVES THE FINANCIAL NEEDS OF ITS PATIENTS. BASED ON THE ASSESSMENTS OF COMMUNITIES SERVED, NOVANT HEALTH & AFFILIATES DEVELOPED FINANCIAL ASSISTANCE POLICIES AND PROGRAMS THAT ADDRESS THE FINANCIAL NEEDS OF ITS PATIENTS. THE HEALTHCARE SYSTEM PRIDES ITSELF ON THE TRANSPARENCY OF ITS FINANCIAL ASSISTANCE POLICY AND PROGRAMS, AND THE EDUCATION OFFERED TO PATIENTS REGARDING FINANCIAL ASSISTANCE. FINANCIAL ASSISTANCE PROGRAMS ARE DOCUMENTED ON THE NOVANT HEALTH WEBSITE, ALONG WITH CONTACT INFORMATION FOR ITS FINANCIAL COUNSELORS. ADDITIONALLY, FINANCIAL ASSISTANCE PROGRAMS ARE DOCUMENTED ON PATIENT FLYERS THROUGHOUT THE SYSTEM'S HOSPITAL FACILITIES, OUTPATIENT CENTERS, AND PHYSICIAN OFFICES. THE SYSTEM'S PATIENT ACCESS SPECIALISTS, FINANCIAL COUNSELORS AND BUSINESS OFFICE TEAMS WORK WITH ALL ELIGIBLE PATIENTS TO EDUCATE THEM ON THE VARIOUS OPTIONS AVAILABLE VIA FINANCIAL ASSISTANCE PROGRAMS OR GOVERNMENT SPONSORED CARE. THESE PATIENT FACING TEAM MEMBERS ALSO REFERENCE THE FINANCIAL ASSISTANCE POLICY IN ALL CONVERSATIONS RELATED TO PATIENTS BILLS. FINALLY, NOVANT HEALTH WORKS WITH LOCAL AREA FREE HEALTH CLINICS AND OTHER CHARITABLE ORGANIZATIONS TO PROVIDE CONTINUATION OF CARE FOR PATIENTS IN THE COMMUNITIES SERVED. IN ADDITION TO FINANCIAL COUNSELING PROCESSES USED TO IDENTIFY CHARITY CARE PATIENTS, NOVANT HEALTH'S COLLECTIONS PROCESS WITHIN OUR BUSINESS OFFICES HELPS IDENTIFY PATIENTS WHO ARE ALREADY ELIGIBLE FOR CHARITY OR WHO MAY BE ELIGIBLE BASED ON THEIR STATUS WITHIN THE FEDERAL POVERTY GUIDELINES ("FPG"). THE SYSTEM UTILIZES PREVIOUSLY SUBMITTED PATIENT DOCUMENTATION AND CREDIT AGENCY REPORTED FPG FOR FINANCIAL ASSISTANCE DETERMINATIONS. SUPPORTING DOCUMENTS ARE VALID 6 MONTHS FROM THE DATE OF SUBMISSION. FINANCIAL ASSISTANCE POLICIES ARE CONSIDERED FLUID AND ARE UPDATED FREQUENTLY BASED ON LOCAL AND NATIONAL MARKET STANDARDS AND NATIONAL ECONOMIC CONDITIONS. ANY UPDATES TO FINANCIAL ASSISTANCE POLICIES REQUIRE MULTI-LEVEL LEADERSHIP APPROVAL AND ARE ULTIMATELY APPROVED BY THE ORGANIZATION'S BOARD. PART VI, LINE 4: PART VI, LINE 4: COMMUNITY INFORMATIONTHE PRIMARY SERVICE AREA IS DEFINED BY THE ZIP CODES THAT REPRESENT AT LEAST 75% OF THE HOSPITAL'S IN-PATIENT POPULATION. ALTHOUGH THERE ARE FIVE COUNTIES IN THE NOVANT HEALTH PENDER MEDICAL CENTER PRIMARY SERVICE AREA, 47.3% OF THE PATIENTS IN THE PRIMARY SERVICE AREA RESIDE IN PENDER COUNTY, 12.8% IN DUPLIN COUNTY, 10.7% IN NEW HANOVER COUNTY, AND 2.4% EACH IN BRUNSWICK AND SAMPSON COUNTIES. THE PENDER MEDICAL CENTER SECONDARY SERVICE AREA ACCOUNTS FOR 15.1% OF INPATIENT DISCHARGES AND IS POPULATED BY EIGHT COUNTIES: PENDER, NEW HANOVER, DUPLIN, ONSLOW, ROBESON, SAMPSON, BLADEN, AND COLUMBUS. MOST PATIENTS RESIDE IN PENDER COUNTY, AND IT REPRESENTS THE HIGHEST POPULATION OF POTENTIALLY UNDERSERVED, LOW-INCOME, AND MINORITY INDIVIDUALS.ACCORDING TO THE VIZIENT VULNERABILITY INDEX RELEASED IN JANUARY 2022, PATIENTS ADMITTED TO PENDER MEDICAL CENTER EXPERIENCE THE MOST PROFOUND SOCIAL RISKS IF THEY LIVE IN 28401, 28448, 28421, 28435, 28425, 28540, 28444, 28398. THESE ZIP CODES EXPERIENCE DISPROPORTIONATELY HIGH SOCIAL RISKS WHEN COMPARED TO THEIR COUNTERPARTS IN NEIGHBORHOODS. AREAS OF PARTICULAR CONCERN INCLUDE ACCESS TO HEALTHCARE, TRANSPORTATION, POVERTY, ACCESS TO EARLY CHILDHOOD EDUCATION, AND FOOD INSECURITY. PENDER COUNTY'S TOTAL POPULATION WAS 61,891 IN 2020 AND 62,815 IN JUNE 2022. PENDER MEDICAL CENTER'S PRIMARY AND SECONDARY SERVICE AREAS HAVE 21,863 RESIDENTS OR APPROXIMATELY 35% OF THE COUNTY'S POPULATION. PENDER COUNTY, NORTH CAROLINA IS A VERY RURAL COMMUNITY, WITH 68% OF THE COUNTY STILL CONSIDERED RURAL BY THE UNITED STATES CENSUS BUREAU DEFINITION OF FEWER THAN 1,000 PERSONS PER SQUARE MILE. PENDER COUNTY HAS 69.1 PERSONS PER SQUARE MILE COMPARED TO NORTH CAROLINA WHICH IS 33% RURAL, WITH 98 PERSONS PER SQUARE MILE. THE LAND AREA OF PENDER COUNTY (871.30 SQUARE MILES), MAKES IT THE 5TH LARGEST COUNTY IN NORTH CAROLINA IN GEOGRAPHIC MASS, CONTRIBUTING TO TRANSPORTATION AND ACCESS ISSUES. THE RURAL NATURE OF PENDER COUNTY RESULTS IN ISSUES WITH SOCIAL ISOLATION, TRANSPORTATION, AND ACCESS TO HEALTH AND HUMAN SERVICES. THE RACE/ETHNIC MIX OF THE PENDER MEDICAL CENTER SERVICE AREA IS CLOSE TO THAT OF PENDER COUNTY, WITH SLIGHTLY HIGHER FRACTIONS OF BLACKS AND HISPANICS. THE BLACK FRACTION FOR BOTH PENDER COUNTY AND THE PENDER MEDICAL CENTER SERVICE AREA IS SLIGHTLY HIGHER THAN NORTH CAROLINA'S PERCENTAGE OF 13.6% BUT MUCH LOWER THAN THE HISPANIC REPRESENTATION OF 18.9%. THE RATE OF UNINSURED INDIVIDUALS IN PENDER COUNTY IS 8.98% FOR PENDER COUNTY WITH AN UNINSURED RATE OF 13.6% FOR ADULTS AND 4.2% FOR CHILDREN (AGES 0-18). THIS COMPARES TO 10.7% FOR ALL NORTH CAROLINA RESIDENTS WITH AN UNINSURED RATE OF 15.5% FOR ADULTS IN THE STATE OF NORTH CAROLINA AND 5.3% FOR CHILDREN.POVERTY RATES FOR PENDER COUNTY ARE 12.3% FOR THOSE LIVING AT OR BELOW 100% OF THE FEDERAL POVERTY LEVEL ('DIRE POVERTY') WITH 19.9% OF CHILDREN LIVING AT OR BELOW 100% OF THE FPL.THE OVERALL UNEMPLOYMENT RATE IN PENDER COUNTY IS 3.6% COMPARED TO THE NORTH CAROLINA AVERAGE OF 3.9%, NEAR THAT OF THE UNITED STATES RATE OF 3.8%.PENDER COUNTY IS CURRENTLY RANKED 88TH ON THE FOOD HARDSHIP SCALE IN NORTH CAROLINA OUT OF 100 TOTAL COUNTIES.THERE ARE NO OTHER HOSPITALS SERVING THIS PRIMARY SERVICE AREA. DATA FOR THE CHNA WAS GATHERED FROM VARIOUS STATE AND FEDERAL SOURCES, BUT PRIMARILY THE US CENSUS BUREAU. SPECIFIC REFERENCES AND OTHER SUPPORTING INFORMATION CAN BE FOUND IN THE MOST RECENT CHNA HERE:HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/OUR-IMPACT/COMMUNITY-HEALTH-NEEDS/ PART VI, LINE 5: PART VI, LINE 5: PROMOTION OF COMMUNITY HEALTHTHE ORGANIZATION FURTHERS ITS EXEMPT PURPOSES BY:1. ADOPTING A FINANCIAL ASSISTANCE POLICY;2. REMAINING CERTIFIED BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES TO PROVIDE SERVICES TO ALL BENEFICIARIES OF MEDICARE, MEDICAID, AND OTHER GOVERNMENT PAYMENT PROGRAMS, AND PROVIDING SERVICES IN A NONDISCRIMINATORY MANNER TO SUCH BENEFICIARIES;3. OPERATING A FULL-TIME EMERGENCY ROOM WHICH IS OPEN TO AND ACCEPTS ALL PERSONS, REGARDLESS OF THEIR ABILITY TO PAY;4. MAINTAINING AN OPEN MEDICAL STAFF, SUBJECT TO EXCLUSIVE CONTRACTS FOR HOSPITAL-BASED SERVICES SUCH AS ANESTHESIOLOGY, RADIOLOGY, PATHOLOGY, HOSPITALIST, AND EMERGENCY DEPARTMENT SERVICES, TO THE EXTENT AN EXCLUSIVE CONTRACT FOR THOSE SERVICES IS REQUIRED TO OBTAIN PROPER STAFFING COVERAGE OR TO PERMIT A MORE EFFICIENT DELIVERY OF THOSE SERVICES WITHIN HOSPITAL FACILITIES;5. MAINTAINING A GOVERNING BOARD CONSISTING PRIMARILY OF A BROAD CROSS-SECTION OF LEADERS IN THE COMMUNITY;6. ADOPTING AND APPLYING A CONFLICT-OF-INTEREST POLICY, WHICH APPLIES TO THE GOVERNING BOARD AND ORGANIZATION OFFICERS;7. PROVIDING HEALTH EDUCATION LECTURES AND WORKSHOPS;8. PROVIDING HEALTH FAIRS, EDUCATION ON SPECIFIC DISEASES OR CONDITIONS, AND HEALTH PROMOTION AND WELLNESS PROGRAMS TO COMMUNITIES SERVED; 9. PROVIDING SUPPORT GROUPS AND SELF-HELP PROGRAMS TO COMMUNITIES SERVED;10. PROVIDING COMMUNITY-BASED CLINICAL SERVICES, INCLUDING WITHOUT LIMITATION, HEALTH SCREENINGS AND CLINICS FOR UNINSURED OR UNDERINSURED PERSONS TO COMMUNITIES SERVED;11. PROVIDING HEALTHCARE SUPPORT SERVICES, INCLUDING WITHOUT LIMITATION, INFORMATION AND REFERRAL TO COMMUNITY SERVICES, CASE MANAGEMENT OF UNDERINSURED AND UNINSURED PERSONS, TELEPHONE INFORMATION SERVICES AND ASSISTANCE TO ENROLL IN PUBLIC PROGRAMS, SUCH AS STATE CHILDREN'S HEALTH INSURANCE PROGRAM (SCHIP) AND MEDICAID TO COMMUNITIES SERVED;12. PROVIDING SUBSIDIZED HEALTH SERVICES AND CLINICAL PROGRAMS TO COMMUNITIES SERVED;13. PROVIDING CASH AND IN-KIND CONTRIBUTIONS TO NONPROFIT COMMUNITY HEALTHCARE ORGANIZATIONS IN COMMUNITIES SERVED; AND14. GENERALLY PROMOTING THE HEALTH, WELLNESS, AND WELFARE OF COMMUNITIES SERVED BY PROVIDING QUALITY HEALTHCARE SERVICES AT REASONABLE COST. PART VI, LINE 6: PART VI, LINE 6: AFFILIATED HEALTH CARE SYSTEMTHE ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, A NON-PROFIT INTEGRATED GROUP OF HOSPITALS, PHYSICIAN CLINICS, OUTPATIENT CENTERS AND OTHER HEALTHCARE SERVICE PROVIDERS. NOVANT HEALTH IS RANKED AS ONE OF THE NATION'S TOP 20 INTEGRATED HEALTHCARE SYSTEMS - CARING FOR PATIENTS AND COMMUNITIES IN NORTH AND SOUTH CAROLINA. EACH HOSPITAL FACILITY PROVIDES SUBSTANTIAL COMMUNITY BENEFIT TO THE COMMUNITY SERVED, AS REPORTED INDIVIDUALLY ON EACH HOSPITAL ORGANIZATION'S FORM 990, SCHEDULE H. SYSTEM-WIDE COMMUNITY BENEFIT IS DOCUMENTED IN THE COMMUNITY BENEFIT REPORT, LOCATED AT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/. PLEASE NOTE THAT THE NUMERIC INFORMATION IN THIS REPORT IS NOT BASED UPON THE FORM 990, SCHEDULE H INSTRUCTIONS, BUT RATHER IS PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HEALTHCARE ASSOCIATION REPORTING GUIDELINES. THIS COMMUNITY BENEFIT REPORT SHOULD NOT BE RELIED UPON AS THE SUM OF AFFILIATE ORGANIZATION'S FORM 990, SCHEDULE H COMMUNITY BENEFIT, OR IN ALIGNMENT WITH ITS COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY. THERE ARE SIGNIFICANT COMMUNITY BENEFIT ACTIVITIES WITHIN NOVANT HEALTH WHICH MAY NOT BE REPORTABLE ON A FORM 990 SCHEDULE H BECAUSE THEY ARE NOT CONDUCTED BY A LEGAL ENTITY WHICH OWNS OR OPERATES A HOSPITAL.IN ADDITION TO HOSPITALS, THE NOVANT HEALTH INTEGRATED HEALTHCARE SYSTEM INCLUDES MULTIPLE PHYSICIAN ORGANIZATIONS WITH PRACTICES IN NORTH AND SOUTH CAROLINA, AND SIX HOSPITAL FOUNDATIONS WHICH SUPPORT AND ENHANCE THE ACTIVITIES IN THOSE HOSPITALS' COMMUNITIES. FURTHER, NOVANT HEALTH INCLUDES AMBULATORY SURGERY CENTERS, IMAGING CENTERS, REHABILITATION CENTERS, AND OTHER OUTPATIENT FACILITIES; ALL DEDICATED TO PROMOTING THE HEALTH OF THEIR RESPECTIVE COMMUNITIES. PART VI, LINE 7: STATE FILING OF COMMUNITY BENEFIT REPORT NOVANT HEALTH, INC. FILES A SYSTEM-WIDE COMMUNITY BENEFIT REPORT PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HEALTHCARE ASSOCIATION REPORTING GUIDELINES WITH THE NORTH CAROLINA MEDICAL CARE COMMISSION AS PART OF THE DOCUMENTATION REQUIRED FOR THE ISSUANCE OF TAX EXEMPT BOND FINANCING. X X X X 1 1 0 1 0 0 0 0 0 0 0 FRED HARGETT EVP/CFO (TO 9/6/23) 0 886648 0 1074292 0 439730 0 19800 0 30905 0 2451375 0 0 GEOFFREY GARDNER CFO (FR 9/6/23) 0 496309 0 343441 0 69356 0 98858 0 29891 0 1037855 0 25993 RUTH GLASER PRES & COO 0 241056 0 19920 0 37349 0 16073 0 25112 0 339510 0 0 HARRY COWART PHARMACIST IN CHARGE 171715 0 3931 0 2198 0 0 0 16898 0 194742 0 0 0 PART I, LINE 1A FRINGE OR EXPENSE EXPLANATION FIRST-CLASS OR CHARTER TRAVEL: FIRST-CLASS OR CHARTER TRAVEL IS NOT A COVERED TRAVEL EXPENSE FOR EXECUTIVES; THEY ARE LIMITED TO BUSINESS OR COACH CLASS FARES FOR COMMERCIAL FLIGHTS. HOWEVER, CHARTER TRAVEL IS AVAILABLE TO CERTAIN EXECUTIVES, BOARD MEMBERS, AND APPROVED BUSINESS PERSONNEL MEETING APPLICABLE POLICY CRITERIA. TRAVEL FOR COMPANIONS: COMPANIONS ARE ALLOWED ON CERTAIN CHARTER FLIGHTS PAID FOR BY THE ORGANIZATION. IN THAT CASE, THE VALUE OF THE COMPANION'S FLIGHT IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. DISCRETIONARY SPENDING ACCOUNT: CERTAIN EXECUTIVES RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THE DOLLAR AMOUNT IN THE ACCOUNT IS PRE-APPROVED BY THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD OF TRUSTEES. THE EXECUTIVE MAY DEFER THE AMOUNT TO A RETIREMENT ACCOUNT OR THE AMOUNT IS TREATED AS COMPENSATION AND IS SPREAD OUT OVER THE COURSE OF THE YEAR IN THE EXECUTIVE'S PAYCHECKS AS TAXABLE INCOME. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: WE PROVIDE TEMPORARY HOUSING ALLOWANCES IN CERTAIN EXECUTIVE RECRUITMENT AND RELOCATION PACKAGES. THE VALUE IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. PART I, LINE 3 PART I, LINE 3: THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM AND RELIES UPON NOVANT HEALTH, INC., THE PARENT ORGANIZATION, TO USE THE PROCESS DESCRIBED IN PART VI, LINE 15A/15B OF THIS RETURN TO ESTABLISH COMPENSATION FOR CERTAIN EXECUTIVES. THIS PROCESS ADHERES TO THE REQUIREMENTS SET FORTH TO SECURE THE REBUTTABLE PRESUMPTION OF REASONABLENESS AND INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT AND DISINTERESTED MEMBERS OF A COMPENSATION COMMITTEE, CONSULTATION WITH INDEPENDENT COMPENSATION CONSULTANTS, THE UTILIZATION OF THIRD-PARTY COMPARABILITY DATA SUCH AS PUBLISHED COMPENSATION SURVEYS, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. PART I, LINE 4B PART I, LINES 4A-C: SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SEVERANCE NONE NONQUALIFIED GEOFFREY GARDNER $25,993 RUTH GLASER $8,846 EQUITY-BASED NONE PART I, LINE 4B: SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") IS INTENDED TO SUPPORT RETENTION OF KEY EXECUTIVES, AND TO OFFER COMPETITIVE TOTAL COMPENSATION. GENERALLY, ANNUAL CONTRIBUTIONS TO THE PLAN OR PAYMENTS TO PARTICIPANTS WILL BE BASED ON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AS OF JANUARY 1ST OF THE PREVIOUS PLAN YEAR AND ARE REPORTED IN COLUMN (C) OF SCHEDULE J. PRIOR TO MAKING THE CONTRIBUTIONS OR PAYMENTS, THE NOVANT HEALTH COMPENSATION AND LEADERSHIP COMMITTEE ("COMMITTEE") WILL APPROVE THE AMOUNTS AS TO REASONABLENESS, WHEN COMBINED WITH ALL OTHER ANNUAL COMPENSATION. A 3 YEAR CLASS-YEAR VESTING PERIOD WILL APPLY UP TO AGE 62, WHEN ALL MONEY WOULD BE VESTED AND PAID OUT TO THE PARTICIPANT. OTHERWISE, VESTING WILL OCCUR ON JANUARY 1ST OF EACH YEAR FOR THE APPROPRIATE CLASS-YEAR VESTING PERIOD. THE COMMITTEE REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS, INCLUDING THE AMOUNTS AWARDED UNDER THIS SERP. FORM 990, PI, LINE 1: ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES NOVANT HEALTH IS A NON-PROFIT INTEGRATED HEALTHCARE SYSTEM OF 15 MEDICAL CENTERS WITH MORE THAN 35,000 EMPLOYEES AND 1,800 PHYSICIANS IN OVER 800 LOCATIONS, AS WELL AS NUMEROUS OUTPATIENT SURGERY CENTERS, MEDICAL PLAZAS, REHABILITATION PROGRAMS, DIAGNOSTIC IMAGING CENTERS AND COMMUNITY HEALTH OUTREACH PROGRAMS. HEADQUARTERED IN WINSTON-SALEM, NORTH CAROLINA, NOVANT HEALTH'S TEAM MEMBERS AND PHYSICIAN PARTNERS CARE FOR PATIENTS AND COMMUNITIES IN NORTH CAROLINA, SOUTH CAROLINA AND GEORGIA. THE NOVANT HEALTH INTEGRATED HEALTHCARE SYSTEM OPERATES TO CARRY OUT ITS CHARITABLE MISSION OF IMPROVING THE HEALTH OF COMMUNITIES IT SERVES AND MAKING HEALTHCARE REMARKABLE FOR PATIENTS. NOVANT HEALTH ACCOMPLISHES THAT MISSION BY PROVIDING AND SUPPORTING EXCELLENT HEALTHCARE FACILITIES AND PHYSICIAN PRACTICES AND BY MAKING A COMMITMENT TO COMMUNITY OUTREACH/SERVICE THROUGH THE PROVISION OF COMMUNITY BENEFIT PROGRAMS. BY BRINGING TOGETHER WORLD-CLASS TECHNOLOGY AND CLINICIANS TO PROVIDE QUALITY CARE, NOVANT HEALTH IS COMMITTED TO CREATING A HEALTHCARE EXPERIENCE THAT IS SIMPLER, MORE CONVENIENT, AND MORE AFFORDABLE SO PATIENTS CAN FOCUS ON GETTING BETTER AND STAYING HEALTHY. IN 2023, NOVANT HEALTH PROVIDED NEARLY 7 MILLION PATIENT VISITS AND OVER $1.5 BILLION OF COMMUNITY BENEFIT EXPENDITURES SYSTEM-WIDE. IN ADDITION TO PROVIDING A HIGH QUALITY, COMPREHENSIVE CATALOG OF HEALTHCARE SERVICES, NOVANT HEALTH OFFERS A ROBUST PATIENT FINANCIAL ASSISTANCE PROGRAM, WORKING WITH ITS PATIENTS TO ASSIST WITH ESTABLISHING REASONABLE PAYMENT PLANS, DISCOUNTING PATIENT BILLS, AND PROVIDING FREE CARE FOR THOSE THAT QUALIFY UNDER ITS FINANCIAL ASSISTANCE POLICY. PENDER MEMORIAL HOSPITAL, INCORPORATED, DOING BUSINESS AS NOVANT HEALTH PENDER MEDICAL CENTER ("NHPMC"), IS AN INTEGRAL PART OF THE NOVANT HEALTH SYSTEM. AS A CRITICAL ACCESS HOSPITAL IN BURGAW COUNTY, NORTH CAROLINA, THE HOSPITAL OPERATES 25 OF ITS 43 LICENSED BEDS AND AN ADDITIONAL 43 SKILLED NURSING BEDS. THE HOSPITAL OFFERS RESIDENTS OF PENDER COUNTY AND SURROUNDING COMMUNITIES A CONVENIENT AND FRIENDLY PLACE TO RECEIVE MEDICAL CARE AND TREATMENT, OFFERING A RANGE OF HEALTHCARE SERVICES INCLUDING EMERGENCY CARE, SURGERY, IMAGING, INFUSION THERAPY, AND SKILLED NURSING. NOVANT HEALTH CONTINUES TO INVEST IN THE HOSPITAL'S GROWTH. COMMUNITY OUTREACH COMMUNITY OUTREACH IS A CRITICAL COMPONENT TO THE MISSION OF NOVANT HEALTH. THE HEALTHCARE SYSTEM PROVIDES HUNDREDS OF PROGRAMS THAT SERVE PATIENTS, NEIGHBORS, AND SOME OF THE COMMUNITIES' MOST VULNERABLE CITIZENS. NOVANT ALSO PROVIDES FINANCIAL ASSISTANCE (I.E., CHARITY CARE) FOR ITS QUALIFIED UNINSURED PATIENTS, CATASTROPHIC SETTLEMENTS AND LONG-TERM PAYMENT PLANS TO MEDICALLY INDIGENT PATIENTS, SERVICES TO PATIENTS WITH MEDICARE, MEDICAID, AND OTHER GOVERNMENT MEDICAL PROGRAM COVERAGE (REIMBURSED AT LESS THAN COST), COMMUNITY HEALTH EDUCATION, SUPPORT GROUPS, SUBSIDIZED OUTREACH SERVICES, AND COMMUNITY EVENTS/SCREENINGS. IN ADDITION, NOVANT PARTICIPATES IN MEDICAL RESEARCH, AS WELL AS ACADEMIC HEALTH PROGRAMS AND PARTNERSHIPS WITH A DIVERSE GROUP OF ORGANIZATIONS TO PROVIDE OTHER COMMUNITY INITIATIVES. NOVANT HEALTH IS ALSO COMMITTED TO SUPPORTING THE COMMUNITIES IT SERVES THROUGH CHARITABLE CONTRIBUTIONS TO COMMUNITY-BASED PROGRAMS THAT IMPROVE HEALTH EQUITY AND UPWARD MOBILITY FOR THOSE WHO NEED IT MOST. TOWARD THAT GOAL, NOVANT INVESTS IN COMMUNITY-BASED PROGRAMS THAT ALIGN WITH ITS TWO INVESTMENT PRIORITIES OF DEVELOPING HEALTHY COMMUNITIES AND EXPANDING OPPORTUNITIES FOR HEALTHCARE EDUCATION. THE ANNUAL NOVANT HEALTH COMMUNITY IMPACT REPORT, AVAILABLE AT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/, INCLUDES QUALITATIVE AND QUANTITATIVE INFORMATION REGARDING THE HEALTHCARE SYSTEM'S COMMUNITY BENEFIT EFFORTS AND ACHIEVEMENTS. FOR 2023, NOVANT HEALTH'S SYSTEM-WIDE COMMUNITY BENEFIT EXPENDITURES TOTALED APPROXIMATELY $1.61 BILLION, INCLUDING $225 MILLION OF FINANCIAL ASSISTANCE. NOTE: NUMERIC DATA IN THIS REPORT IS NOT BASED UPON FORM 990, SCHEDULE H INSTRUCTIONS, BUT RATHER IN ACCORDANCE WITH NORTH CAROLINA HEALTHCARE ASSOCIATION COMMUNITY BENEFIT REPORTING GUIDELINES. NOVANT HEALTH COMMUNITY IMPACT REPORT SHOULD NOT BE RELIED UPON AS EQUIVALENT TO FORM 990, SCHEDULE H COMMUNITY BENEFIT, COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY REPORTING. NOVANT HEALTH PENDER MEDICAL CENTER SUPPORTED THE COMMUNITY IN 2023 THROUGH RESOURCES, SCREENINGS/CLINICS, AND HEALTH EDUCATION INITIATIVES, INCLUDING: - MYCOMMUNITY ACCESS, WHICH ENABLED COMMUNITY MEMBERS TO SEARCH FOR FREE OR REDUCED COST RESOURCES LOCATED WITHIN THE COMMUNITY. NOVANT PAID THE ANNUAL FEES FOR THIS PLATFORM THAT COMMUNITY MEMBERS WOULD HAVE OTHERWISE HAD TO PAY - PRINTED RESOURCE CARDS FOR ANYONE TO SEARCH FOR LOCAL FREE AND REDUCED COST SERVICES. - SCREENINGS/CLINICS FOCUSING ON BLOOD PRESSURE/HYPERTENSION, DIABETES, BLOOD PRESSURE, GLUCOSE, CHOLESTEROL - HEALTH EDUCATION INITIATIVES INCLUDED DIABETES EMPOWERMENT EDUCATION PROGRAMS, FALL PREVENTION PROGRAMMING, AND SENIOR HEALTH EDUCATION - MEDICATION TAKE-BACK EVENTS ENCOURAGING PROPER DISPOSAL - BACK-TO-SCHOOL EVENT NEW TECHNOLOGY & SERVICES NOVANT HEALTH PENDER MEDICAL CENTER BEGAN DEVELOPING A RURAL FAMILY MEDICINE RESIDENCY PROGRAM IN 2023, AND IMPLEMENTED AIDOC, A COMPUTER-AIDED TRIAGE AND NOTIFICATION SYSTEM THAT RUNS ALGORITHMS ON CT SCANS TO SCREEN FOR CERTAIN CONDITIONS: INTRACRANIAL HEMORRHAGE, PULMONARY EMBOLISM AND INCIDENTAL PULMONARY EMBOLISM. AWARDS, RECOGNITIONS & CERTIFICATIONS/RECERTIFICATIONS - PERFORMANCE LEADERSHIP AWARD 2023: EXCELLENCE IN OUTCOMES (TOP QUARTILE PERFORMANCE) - CHARTIS CENTER FOR RURAL HEALTH - 5-STAR RATED SKILLED NURSING FACILITY FROM CENTERS FOR MEDICARE AND MEDICAID SERVICES - QUALITY MANAGEMENT SYSTEM CERTIFICATION TO ISO 9001 STANDARDS FROM DNV ACCREDITATION NOVANT HEALTH PENDER MEDICAL CENTER IS NATIONALLY ACCREDITED BY DNV GL - HEALTHCARE. DNV ACCREDITATION RECOGNIZES CONTINUOUS COMMITMENT AND DEDICATION TO PROVIDING EXCELLENT PATIENT CARE. FORM 990, PART III, LINE 1: OUR CAUSE (FKA MISSION, VISION AND VALUES) IN THE SPIRIT OF KEEPING OUR FOCUS ON PATIENT-CENTERED, EQUITABLE AND COMPASSIONATE CARE WHILE ENSURING OUR ORGANIZATION IS SUSTAINABLE FOR FUTURE GENERATIONS, WE HAVE RESTATED OUR MISSION, VISION AND VALUES AND ARE NOW GUIDED BY OUR CAUSE. OUR CAUSE WE CREATE A HEALTHIER FUTURE AND BRING REMARKABLE EXPERIENCES TO LIFE. DISCOVER WE CONSISTENTLY SEEK TO INNOVATE, COURAGEOUSLY TRANSFORM OURSELVES AND FIND NEW WAYS TO ADD VALUE FOR OUR PATIENTS, COMMUNITIES AND ONE ANOTHER. EMPOWER WE PROVIDE ONE ANOTHER, OUR PATIENTS, FAMILIES AND COMMUNITIES WITH THE RESOURCES AND ENVIRONMENT TO CREATE SHARED ACCOUNTABILITY AND ACTION. THRIVE WE DEMONSTRATE EQUITY, EMPATHY, SAFETY AND QUALITY TO HELP EACH OTHER, AND OUR COMMUNITIES GROW AND SUCCEED. TOGETHER WE WORK AS A TRUSTED TEAM WITH OUR UNIQUE PERSPECTIVES, LIFE EXPERIENCES AND EXPERTISE TO BRING REMARKABLE TO LIFE IN EVERY INTERACTION. WE ALL BELONG. FORM 990, PART VI, SECTION A, LINE 3 FORM 990, PART VI, SECTION A, LINE 3: DELEGATION OF CONTROL OVER MANAGEMENT DUTIES PENDER MEMORIAL HOSPITAL, INC. WAS UNDER A MANAGEMENT AGREEMENT WITH AND BY NOVANT HEALTH NEW HANOVER REGIONAL MEDICAL CENTER, LLC. THE MANAGEMENT AGREEMENT TERMINATED 12/18/2023. FORM 990, PART VI, SECTION A, LINE 4 FORM 990, PART VI, SECTION A, LINE 4: SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS THE ORGANIZATION'S BYLAWS WERE AMENDED IN THE CURRENT YEAR TO CHANGE THE PROCEDURES FOR AMENDING GOVERNING DOCUMENTS AND TO CHANGE THE AUTHORITY OF THE ORGANIZATION'S BOARD PURSUANT TO A MASTER TRANSACTION AGREEMENT BETWEEN THE ORGANIZATION, ITS SOLE MEMBER NHNHRMC, AND PENDER COUNTY. FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 6: CLASSES OF MEMBERS OR STOCKHOLDERS THE ORGANIZATION IS A NORTH CAROLINA NON-PROFIT CORPORATION WITH A SOLE MEMBER, NOVANT HEALTH NEW HANOVER REGIONAL MEDICAL CENTER, LLC ("NHNHRMC"). FORM 990, PART VI, SECTION A, LINE 7A FORM 990, PART VI, SECTION A, LINE 7A: ELECTION OF MEMBERS AND THEIR RIGHTS THE ORGANIZATION'S SOLE MEMBER, NHNHRMC, APPOINTS FOUR MEMBERS OF THE ORGANIZATION'S BOARD. PENDER COUNTY BOARD OF COMISSIONERS APPOINTS SIX MEMBERS OF THE ORGANIZATION'S BOARD. FORM 990, PART VI, SECTION A, LINE 7B FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS SUBJECT TO APPROVAL OF MEMBERS EXCEPT FOR RESERVE POWERS SPECIFICALLY DELEGATED TO THE BOARD BY THE GOVERNING DOCUMENTS, OR ACTIONS REQUIRING COUNTY APPROVAL PER THE MASTER TRANSACTION AGREEMENT, THE SOLE MEMBER HAS THE POWER TO MANAGE THE AFFAIRS AND OPERATIONS OF THE ORGANIZATION AS PERMITTED BY LAW AND BY THE GOVERNING DOCUMENTS. THE SOLE MEMBER HAS THE EXCLUSIVE RIGHT TO APPROVE AMENDMENTS TO THE GOVERNING DOCUMENTS OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11B FORM 990, PART VI, SECTION B, LINE 11: ORGANIZATION'S PROCESS TO REVIEW FORM 990 THE BOARD DELEGATES REVIEW OF THE FORM 990 TO NOVANT HEALTH'S BOARD OF TRUSTEES' AUDIT AND COMPLIANCE COMMITTEE ("THE COMMITTEE"), WHICH OVERSEES TAX MATTERS FOR ENTITIES IN THE NOVANT HEALTH SYSTEM. THE COMMITTEE IS THE REVIEW BODY FOR ALL OF THE FORM 990S FILED FOR TAX-EXEMPT ORGANIZATIONS WITHIN THE NOVANT HEALTH SYSTEM. THE COMMITTEE IS PROVIDED A COPY OF FORM 990 AND MEETS TO ADDRESS ANY QUESTIONS AND SIGNIFICANT DISCLOSURES WITHIN THE FORM 990 PRIOR TO ITS FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C FORM 990, PART VI, SECTION B, LINE 12C: MONITORING AND ENFORCEMENT OF COI THE ORGANIZATION'S TRUSTEE CONFLICT OF INTEREST POLICY APPLIES TO ALL TRUSTEES, PRINCIPAL OFFICERS OR MEMBERS OF A COMMITTEE WITH BOARD DELEGATED POWERS INCLUDING ANY APPLICABLE DISREGARDED ENTITIES. ALL TRUSTEES ARE SENT AN ANNUAL DISCLOSURE QUESTIONNAIRE. THE TRUSTEE ANNUAL DISCLOSURE QUESTIONNAIRES ARE REVIEWED BY THE COMPLIANCE AND TAX DEPARTMENTS. WITH RESPECT TO PARTICULAR TRANSACTIONS THAT COME BEFORE THE BOARD, THE CONFLICT OF INTEREST POLICY WOULD BE FOLLOWED. THE POTENTIAL CONFLICT OF INTEREST WOULD BE DISCLOSED BY THE BOARD MEMBER BEFORE A VOTE ON THE TRANSACTION AND THE REST OF THE BOARD WOULD DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. IF THE REST OF THE BOARD DETERMINED THAT A CONFLICT OF INTEREST EXISTED THEN THE BOARD MEMBER WITH THE CONFLICT OF INTEREST WOULD NOT PARTICIPATE IN THE DELIBERATIONS AND VOTE. FORM 990, PART VI, SECTION B, LINE 15 FORM 990, PART VI, SECTION B, LINE 15A/15B: THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM. INDEPENDENT AND DISINTERESTED BOARD MEMBERS OF THE PARENT ORGANIZATION, NOVANT HEALTH, INC. BOARD OF TRUSTEES (WHO COMPRISE THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE BOARD), REVIEW, APPROVE, AND OVERSEE ALL ASPECTS OF COMPENSATION AND BENEFITS FOR CERTAIN LEADERS ("EXECUTIVES") SERVING AS OFFICERS, INCLUDING THE TOP MANAGEMENT & FINANCIAL OFFICIALS, OR KEY EMPLOYEES FOR NOVANT HEALTH ENTITIES. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT AND USES THIRD PARTY COMPARABILITY DATA FOR FUNCTIONALLY SIMILAR POSITIONS AT COMPARABLE ORGANIZATIONS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS FOR EACH EXECUTIVE IS REASONABLE. THE COMMITTEE REVIEWS AND APPROVES EXECUTIVE COMPENSATION AND BENEFITS ANNUALLY, CONSISTENT WITH THE WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY OF NOVANT HEALTH, AND IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS. FORM 990, PART VI, SECTION C, LINE 19 FORM 990, PART VI, SECTION C, LINE 19: GOVERNING DOCUMENTS DISCLOSURE THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAINING ALL ORGANIZATIONS IN THE NOVANT HEALTH SYSTEM ARE POSTED TO THE NOVANT HEALTH WEBSITE. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9: AFFILIATE TRANSFER -2,051,837. CAPITAL CONTRIBUTION 8,605,718. ADJUSTMENT TO PENSION EXPENSE LIABILITY -2,558,615. CONTRIBUTION -26,346. ROUNDING -236. 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