2021-11-12T15:23:39-06:00 2020-12-31 990 2020-01-01 561373175 FOUNDATION HEALTH SYSTEMS CORP FOUN 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 FRED HARGETT EVP & CFO 3367182803 2021-11-12 FRED HARGETT 999009999 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z CARL ARMATO 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 76436749 0 X WWW.NOVANTHEALTH.ORG X 1983 NC SEE SCHEDULE O 5 3 625 7 0 0 500000 2289257 81210526 74090371 287192 -73106 8124 30637 82005842 76337159 0 69097 0 0 36253977 35877746 0 0 0 38611052 37846958 74865029 73793801 7140813 2543358 263164714 272020870 11237546 17648029 251927168 254372841 X SEE SCHEDULE O 1 0 54872127 69097 66396321 TO PROMOTE HEALTHCARE WITHIN THE COMMUNITY SERVED BY PROVIDING OUTPATIENT SURGICAL SERVICES, DIAGNOSTIC SERVICES, MAMMOGRAPHY SERVICES, REHABILITATION SERVICES, AND WOMEN'S SERVICES TO LOW INCOME GROUPS. THE FACILITIES MAINTAIN AN OPEN DOOR POLICY AND STRIVE TO SERVE THE INDIVIDUALS IN THE COMMUNITY WITH THE GREATEST NEEDS. DURING 2020 FOUNDATION HEALTH SYSTEMS HAD A COMBINED TOTAL OF 499,584 OUTPATIENT ENCOUNTERS. 7724687 7724687 FOUNDATION HEALTH SYSTEM CORP PROVIDES PRE-AUTHORIZATION, SCHEDULING, AND ADMINISTRATIVE SERVICES TO RELATED TAX EXEMPT ORGANIZATIONS FOR THE PROVISION OF HEALTHCARE SERVICES. 62596814 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 625 1 0 0 0 0 0 0 0 0 0 0 0 0 X 5 3 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 1 1 NC X KAREN DAUGHERTY 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 X ESKIOGLU ERIC MD TRUSTEE 0.20 50.00 X 0 1627818 219083 OLIVER PAMELA MD EVP & PRES NHMG 0.20 50.00 X X 0 1015211 170833 BARR ROBERT MD CHAIR 0.20 0.00 X X 0 0 0 ELY JOSEPH TRUSTEE 0.20 0.00 X X 0 0 0 MURPHY DANIEL MD VICE CHAIR 0.20 0.00 X X 0 0 0 SMITH HARRY FMR SVP HOSP OPS (1/1/20-8/5/20) 0.20 50.00 X 0 1394920 46260 MOORE ALICE ASST SEC 0.20 45.00 X 0 312183 35448 HATCHER WALTER RADIOLOGIST 45.00 0.00 X 472401 0 49051 GORDON DANIEL RADIOLOGIST 45.00 0.00 X 473695 0 39630 MCGRAW SCOTT RADIOLOGIST 45.00 0.00 X 459444 0 35844 GILPIN SERENA SR DIR RADIOLOGY SCHEDULING 45.00 0.00 X 156957 0 36939 LEMONS JEFFREY MGR REGIONAL REHAB SERVICES 45.00 0.00 X 131535 0 39164 1694032 4350132 672252 10 0 1 0 TRIMEDX INC PO BOX 636129 CINCINNATI NC 45263 CLINICAL ENGINEERING SERVICES 2246753 VANNOY CONSTRUCTION PO BOX 635 JEFFERSON NC 28640 CONSTRUCTION SERVICES 589530 IMAGEFIRST HEALTHCARE LAUNDRY SPECIALIST PO BOX 61323 KING OF PRUSSIA PA 19406 LAUNDRY SERVICE 188931 DPS TELECOM SERVICES 15950 W DODGE ROAD OMAHA NE 68118 REMOTE MONITORING SERVICES 137484 LANGUAGE RESOURCE CENTER PO BOX 18066 CHARLOTTE NC 28218 INTERPRETER SERVICES 131264 5 735206 1554051 2289257 NET PATIENT REVENUE 621111 66332633 66332633 MEDICAL SCHEDULING 900099 7724687 7724687 VALUE BASED INCENTIVE 900099 26615 26615 PASS-THRU PATIENT REV 621111 6436 6436 74090371 25832 25832 652 99590 -98938 -98938 -98938 MISCELLANEOUS REVENUE 900099 30637 30637 30637 76337159 74121008 0 -73106 X 500 500 68597 68597 27601581 26221502 1380079 1129626 1073145 56481 4949746 4716734 233012 2196793 2086954 109839 190120 190120 595 595 10741865 7423811 3318054 1137818 1137818 1247767 700353 547414 1044956 1030176 14780 3908069 2540246 1367823 271979 237782 34197 14737 14000 737 16155 16155 5886343 5492877 393466 167772 114523 53249 REPAIRS AND MAINTENANCE 3564143 3558308 5835 BAD DEBT 3157658 3157658 BILLING FEES 2940623 2940623 MEDICAL SUPPLIES 2093887 2090803 3084 1462471 914872 547599 73793801 62596814 11196987 0 51812 18795 8055342 7241288 103552 107679 450734 346997 59437126 47898748 12756622 11538378 865714 183515 179040095 176831529 61840843 75752689 263164714 272020870 5007917 5694560 6229629 11953469 11237546 17648029 X 251927168 254372841 251927168 254372841 263164714 272020870 X 2543358 -97685 X 0 1 X 1 0 X 502774 515539 500000 500000 2289257 4307570 65611105 72138618 76491892 81218650 74121008 369581273 66113879 72654157 76991892 81718650 76410265 373888843 0 0 0 373888843 317852 292560 2532 3273 25832 642049 317852 292560 2532 3273 25832 642049 66431731 72946717 76994424 81721923 76436097 374530892 0.99830 0.99430 0.00170 0.00290 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS REVENUE - RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 321947 321947 3011249 2300302 710947 12838459 8166147 4672312 40269414 34753319 5516095 2996057 2678980 317077 11538378 DUE FROM AFFILIATES 65232124 RIGHT OF USE ASSETS 10520565 75752689 0 OTHER LIABILITIES 903121 REFUND LIABILITY 259081 OPERATING LEASE 10791267 11953469 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, 2020 AND 2019. 1 DISASTER RELIEF ASSISTANCE 120 68597 PART I, LINE 2: PROCEDURES FOR MONITORING THE USE OF GRANT FUNDS THE FILING ORGANIZATION IS PART OF THE INTEGRATED HEALTHCARE SYSTEM OPERATED BY NOVANT HEALTH, INC. ("NOVANT HEALTH"), THE PARENT ORGANIZATION. NOVANT HEALTH'S BYLAWS AUTHORIZE IT TO ESTABLISH CERTAIN POLICIES FOR ALL OF ITS SUBSIDIARIES WITHIN THE SYSTEM. NOVANT HEALTH HAS ESTABLISHED A SYSTEM-WIDE CORPORATE POLICY WITH STANDARDIZED GUIDELINES THAT ARE TO BE USED IN REVIEWING THE ELIGIBILITY AND SELECTION OF GRANTEES RECEIVING CERTAIN EXEMPT PURPOSE FUNDS. THE FILING ORGANIZATION MAINTAINS DOCUMENTATION OF THE ELIGIBILITY AND SELECTION CRITERIA AND RECORDS OF THE AMOUNTS ARE MAINTAINED VIA THE GENERAL LEDGER. FUNDS ARE GENERALLY NOT TRACKED AFTER BEING GRANTED, AS THE ORIGINAL ELIGIBILITY AND SELECTION CRITERIA HAVE ALREADY BEEN MET. X X X X 1 1 1 1 0 0 0 0 0 0 0 ESKIOGLU ERIC MD TRUSTEE 0 774754 0 675414 0 177650 0 177100 0 41983 0 1846901 0 107550 SMITH HARRY FMR SVP HOSP OPS (1/1/20-8/5/20) 0 381135 0 604330 0 409455 0 12156 0 34104 0 1441180 0 94406 OLIVER PAMELA MD EVP & PRES NHMG 0 607774 0 350126 0 57311 0 143124 0 27709 0 1186044 0 7500 HATCHER WALTER RADIOLOGIST 423281 0 16975 0 32145 0 17100 0 31951 0 521452 0 7500 0 GORDON DANIEL RADIOLOGIST 425710 0 16515 0 31470 0 17100 0 22530 0 513325 0 7500 0 MCGRAW SCOTT RADIOLOGIST 419426 0 18255 0 21763 0 0 0 35844 0 495288 0 0 0 MOORE ALICE ASST SEC 0 245566 0 55560 0 11057 0 14081 0 21367 0 347631 0 0 GILPIN SERENA SR DIR RADIOLOGY SCHEDULING 136807 0 19891 0 259 0 5761 0 31178 0 193896 0 0 0 LEMONS JEFFREY MGR REGIONAL REHAB SERVICES 123475 0 7187 0 873 0 7854 0 31310 0 170699 0 0 0 PART I, LINE 1A FRINGE OR EXPENSE EXPLANATION 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 ACCOUNT CAN BE USED ONLY FOR AN APPROVED LIST OF EXPENDITURES. ALL OPTIONS OTHER THAN A DEFERRED, AT-RISK, COMPENSATION OPTION ARE CONSIDERED TAXABLE AND ARE INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. 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 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, LINES 4A-B PART I, LINES 4A-C: SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SEVERANCE SMITH, HARRY $248,175 NONQUALIFIED ESKIOGLU, ERIC $100,050 SMITH, HARRY $86,906 EQUITY-BASED NONE PART I, LINE 4A - SEVERANCE PLAN: ELIGIBLE EXECUTIVES MAY RECEIVE SEVERANCE PAY THAT IS BASED ON ANNUAL COMPENSATION FOR A SPECIFIED PERIOD OF TIME. THE SEVERANCE PAY WOULD BE PAID ONLY IN THE EVENT OF CERTAIN TYPES OF EMPLOYMENT TERMINATION, AND IS FURTHER CONTINGENT ON THE SATISFACTION OF OTHER CONDITIONS SUCH AS COMPLIANCE WITH A NON-COMPETITION COVENANT. ANY CURRENT YEAR PAYMENTS HAVE BEEN INCLUDED IN THE COMPENSATION AMOUNTS REPORTED IN PART VII AND IN COLUMN (B)(III) OF SCHEDULE J. THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS, INCLUDING THE AMOUNTS AWARDED UNDER THIS SEVERANCE PLAN. 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. ELIGIBLE EXECUTIVES WILL BE NOMINATED BY THE CEO AND APPROVED BY THE NOVANT HEALTH COMPENSATION AND LEADERSHIP COMMITTEE ("THE COMMITTEE") TO PARTICIPATE. 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 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. FORM 990, PI, L1: ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES FOUNDATION HEALTH SYSTEMS CORP, DOING BUSINESS AS NOVANT HEALTH REHABILITATION CENTER AND NOVANT HEALTH TODAY'S WOMAN OBSTETRICS AND GYNECOLOGY (OB/GYN) IS AN INTEGRAL PART OF THE NOVANT HEALTH SYSTEM (COLLECTIVELY KNOWN AS "NOVANT HEALTH"), A NOT-FOR-PROFIT INTEGRATED GROUP OF HOSPITALS, PHYSICIAN CLINICS, OUTPATIENT CENTERS AND OTHER HEALTHCARE SERVICE PROVIDERS. NOVANT HEALTH CONSISTS OF MORE THAN 1,600 PHYSICIANS AND OVER 29,000 EMPLOYEES WHO MAKE HEALTHCARE REMARKABLE AT NEARLY 700 LOCATIONS, INCLUDING 15 MEDICAL CENTERS AND HUNDREDS OF OUTPATIENT FACILITIES AND PHYSICIAN CLINICS. HEADQUARTERED IN WINSTON SALEM, NC, NOVANT HEALTH IS COMMITTED TO MAKING HEALTHCARE REMARKABLE FOR PATIENTS AND COMMUNITIES, SERVING MORE THAN FIVE MILLION PATIENTS ANNUALLY. IN 2020, NOVANT HEALTH WAS THE ONLY HEALTHCARE SYSTEM IN NORTH CAROLINA TO BE INCLUDED ON FORBES' BEST EMPLOYERS FOR DIVERSITY LIST. IN 2020, THE NOVANT HEALTH SYSTEM REPORTED $5.7 BILLION IN REVENUES. GENERAL INFORMATION FOUNDATION HEALTH SYSTEMS CORP. INCLUDES NOVANT HEALTH REHABILITATION CENTER AND NOVANT HEALTH TODAY'S WOMAN OBSTETRICS AND GYNECOLOGY (OB/GYN), BOTH LOCATED IN THE TRIAD AREA OF NORTH CAROLINA. IT ALSO INCLUDES NORTH CAROLINA DIAGNOSTIC IMAGING, A GROUP OF IMAGING CENTERS LOCATED THROUGHOUT NORTH CAROLINA. THE MISSION OF THE NOVANT HEALTH REHABILITATION CENTER IS TO OPTIMIZE THE QUALITY OF LIFE AND ABILITIES OF PATIENTS AND TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE, ONE PERSON AT A TIME. PHYSICAL THERAPY, VESTIBULAR THERAPY, OCCUPATIONAL THERAPY AND SPEECH THERAPY SERVICES ARE PROVIDED AT MULTIPLE LOCATIONS, WHICH HELPS ENSURE CONVENIENT ACCESS TO SERVICES FOR PATIENTS WHO LIVE IN BOTH URBAN AND RURAL AREAS OF THE TRIAD. IN THE GREATER WINSTON-SALEM AREA, THERE IS A NEED TO HAVE A CONCENTRATED FOCUS ON ZIP CODES IN EAST WINSTON-SALEM, CLEMMONS AND KERNERSVILLE WHERE 1 IN 4 COMMUNITY MEMBERS LIVE AT OR BELOW THE FEDERAL POVERTY LINE. NOVANT HEALTH TODAY'S WOMAN OB/GYN SERVES OUR MOST VULNERABLE COMMUNITY MEMBERS, OFFERING COMPREHENSIVE BEHAVIORAL HEALTH, SOCIAL WORK AND FAMILY PLANNING CARE. NORTH CAROLINA DIAGNOSTIC IMAGING IS COMPRISED OF 25 OUTPATIENT IMAGING CENTERS LOCATED THROUGHOUT NORTH CAROLINA. AS PART OF THE NOVANT HEALTH SYSTEM, THESE IMAGING CENTERS ARE COMMITTED TO IMPROVING THE HEALTH OF THE COMMUNITIES THEY SERVE. OUR IMAGING SERVICES CURRENTLY OPERATE THE ONLY MRI IN GREENSBORO. IN ADDITION TO OUR QUALITY OF SERVICES AND COMPREHENSIVE CATEGORIES OF SERVICES, WE'RE VERY PROUD OF OUR PATIENT FINANCIAL ASSISTANCE PROGRAM. WE WORK WITH CUSTOMERS TO HELP QUALIFY THEM FOR PUBLIC ASSISTANCE, ESTABLISH A REASONABLE PAYMENT PLAN, DISCOUNT THEIR BILL, OR PROVIDE FREE CARE FOR THOSE THAT QUALIFY FOR FINANCIAL ASSISTANCE. COMMUNITY BENEFIT REPORT HTTPS://WWW.NOVANTHEALTH.ORG/HOME/ABOUT-US/COMMUNITY-ENGAGEMENT/OUR-IMPA CT.ASPX THE COMMUNITY BENEFIT REPORT, REFERRED TO AS A COMMUNITY IMPACT REPORT, PREPARED BY NOVANT HEALTH IS A SYSTEM-WIDE REPORT THAT INCLUDES QUALITATIVE AND QUANTITATIVE INFORMATION. PLEASE NOTE THAT THE NUMERIC DATA IN THIS REPORT IS NOT BASED UPON THE FORM 990, SCHEDULE H CRITERIA, BUT RATHER IT HAS BEEN PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HOSPITAL ASSOCIATION REPORTING GUIDELINES. IT SHOULD NOT BE RELIED UPON AS THE ORGANIZATION'S FORM 990, SCHEDULE H COMMUNITY BENEFIT REPORT, ITS COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY. IN THIS REPORT, THE NOVANT HEALTH SYSTEM'S COMMUNITY BENEFIT WAS APPROXIMATELY $1,018,000,000, INCLUDING $179,000,000 IN FINANCIAL ASSISTANCE FOR 2020. FORM 990, PART III, LINE 1: MISSION, VISION AND VALUES MISSION NOVANT HEALTH EXISTS TO IMPROVE THE HEALTH OF COMMUNITIES, ONE PERSON AT A TIME. VISION WE, THE NOVANT HEALTH TEAM, WILL DELIVER THE MOST REMARKABLE PATIENT EXPERIENCE, IN EVERY DIMENSION, EVERY TIME. VALUES -COMPASSION: WE TREAT OUR CUSTOMERS AND THEIR FAMILIES, STAFF AND OTHER HEALTHCARE PROVIDERS AS FAMILY MEMBERS BY SHOWING THEM KINDNESS, PATIENCE, EMPATHY AND RESPECT. -DIVERSITY AND INCLUSION: WE RECOGNIZE THAT EVERY PERSON IS DIFFERENT, EACH SHAPED BY UNIQUE LIFE EXPERIENCES. THIS ENABLES US TO BETTER UNDERSTAND EACH OTHER AND OUR CUSTOMERS. -PERSONAL EXCELLENCE: WE STRIVE TO GROW PERSONALLY AND PROFESSIONALLY, AND WE APPROACH EACH SERVICE OPPORTUNITY WITH A POSITIVE, FLEXIBLE ATTITUDE. HONESTY AND PERSONAL INTEGRITY GUIDE ALL THAT WE DO. -TEAMWORK: THE NEEDS AND EXPECTATIONS OF ANY ONE CUSTOMER ARE GREATER THAN WHAT ONE PERSON'S SERVICE EFFORTS CAN SATISFY. WE SUPPORT EACH OTHER SO THAT TOGETHER AS A TEAM, WE CAN BE SUCCESSFUL IN THE EYE OF THE CUSTOMER AS A QUALITY SERVICE PROVIDER. -COURAGE: WE ACT BOLDLY IN MAKING THE CHANGES NECESSARY TO ACHIEVE OUR MISSION, VISION AND PROMISE OF DELIVERING REMARKABLE HEALTHCARE. OUR PEOPLE AT NOVANT HEALTH, PEOPLE ARE OUR BUSINESS. WE TREAT EACH OTHER WITH RESPECT AND COMPASSION. WE EMBRACE THE DIFFERENCES IN OUR STRENGTHS WHILE FOSTERING AN ENVIRONMENT OF INCLUSION, EMPOWERMENT, INSPIRATION AND COURAGE. WE ALWAYS REMEMBER, OUR BUSINESS IS THE CARE OF ALL PEOPLE, STARTING WITH OUR TEAM MEMBERS. OUR PROMISE TO PATIENTS WE ARE MAKING YOUR HEALTHCARE EXPERIENCE REMARKABLE. WE WILL BRING YOU WORLD-CLASS CLINICIANS, CARE AND TECHNOLOGY - WHEN AND WHERE YOU NEED THEM. WE ARE REINVENTING THE HEALTHCARE EXPERIENCE TO BE SIMPLER, MORE CONVENIENT AND MORE AFFORDABLE, SO THAT YOU CAN FOCUS ON GETTING BETTER AND STAYING HEALTHY. FORM 990, PART III, LINE 2 LEARN ABOUT HOW WE ARE SERVING OUR COMMUNITIES IN THE PANDEMIC BY VISITING HTTPS://WWW.NOVANTHEALTH.ORG/PORTALS/92/ASSETS/DOCUMENTS/ANNUAL-FINANCIA L-INFORMATION/NOVANT-HEALTH-2020-ANNUAL-REPORT_RISING-UP.PDF FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 6: CLASSES OF MEMBERS OR STOCKHOLDERS THE CORPORATION IS A NONPROFIT CORPORATION WITH MEMBERS (OR A MEMBER). NOVANT HEALTH, INC. (NHI) IS THE SOLE MEMBER OF FOUNDATION HEALTH SYSTEMS CORP. (FHSC). NOTWITHSTANDING ANYTHING CONTAINED IN THESE BYLAWS TO THE CONTRARY, THE CORPORATE POWERS OF FHSC AND THE AUTHORITY OF ITS TRUSTEES AND OFFICERS IS SUBJECT TO THE CONTROL OF NHI TO THE EXTENT SUCH CONTROL IS SPECIFICALLY DESIGNATED IN THE ARTICLES OF INCORPORATION AND BYLAWS OF NHI. FORM 990, PART VI, SECTION A, LINE 7A FROM 990, PART VI, SECTION A, LINE 7A: ELECTION OF MEMBERS AND THEIR RIGHTS NOVANT HEALTH, INC. ELECTS ALL MEMBERS OF THE GOVERNING BODY OF FOUNDATION HEALTH SYSTEMS CORPORATION'S BOARD. FORM 990, PART VI, SECTION A, LINE 7B FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS SUBJECT TO APPROVAL OF MEMBERS NOVANT HEALTH, INC. HAS CERTAIN RESERVED POWERS, SUCH AS APPROVAL OF AMENDMENTS TO THE ARTICLES AND BYLAWS OF THE CORPORATION AND TO ADOPT CERTAIN POLICIES WHICH SHALL BE IMPLEMENTED BY THE CORPORATION BOARD. 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 HAS DELEGATED 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 ORGANIZATIONS WITHIN THE NOVANT HEALTH SYSTEM. THE COMMITTEE MEETS BEFORE THE FORM 990S ARE FILED WITH THE IRS AND AFTER ALL BOARD MEMBERS HAVE BEEN PROVIDED A PAPER OR ELECTRONIC COPY OF THE FORM 990 AND A SUMMARY OF ITS CONTENTS. THE VICE PRESIDENT OF TAX AND LEGAL COUNSEL FOR NOVANT HEALTH ATTEND THE MEETING TO ANSWER ANY QUESTIONS AND ADDRESS ANY SIGNIFICANT DISCLOSURES WITHIN THE FORM 990. 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 DEPARTMENT. 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 COLLECTIVELY REFERRED TO AS "NOVANT HEALTH." NOVANT HEALTH, INC. IS THE PARENT ORGANIZATION AND INDEPENDENT AND DISINTERESTED MEMBERS OF THE 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 AND EXECUTIVES ("EXECUTIVES") SERVING AS OFFICERS, INCLUDING THE TOP MANAGEMENT OFFICIAL, 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 SIMILARLY SITUATED ORGANIZATIONS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS FOR EACH EXECUTIVE IS REASONABLE FOR THAT EXECUTIVE'S POSITION. 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, THEREBY ASSURING THAT TOTAL COMPENSATION AND BENEFITS PROVIDED TO EACH EXECUTIVE IS REASONABLE. 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 VII, SECTION B: INDEPENDENT CONTRACTORS THE FILING ENTITY IS PART OF THE NOT-FOR-PROFIT INTEGRATED HEALTHCARE SYSTEM KNOWN AS NOVANT HEALTH. NOVANT HEALTH, INC., THE PARENT ORGANIZATION, IS RESPONSIBLE FOR CERTAIN CORPORATE SUPPORT FUNCTIONS INCLUDING ACCOUNTS PAYABLE AND ISSUES FORMS 1099 FOR CERTAIN ENTITIES IN THE SYSTEM INCLUDING THE FILING ENTITY. INFORMATION REPORTED IN PART VII, SECTION B REPRESENTS THE EXPENSES PAID ON BEHALF OF THE FILING ENTITY TO INDEPENDENT CONTRACTORS OVER $100,000. FORM 990, PART IX, LINE 11G OUTSIDE SERVICES: PROGRAM SERVICE EXPENSES 1,162,454. MANAGEMENT AND GENERAL EXPENSES 3,296,086. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,458,540. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 57,675. MANAGEMENT AND GENERAL EXPENSES 17,863. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 75,538. COLLECTION SERVICE: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 4,043. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,043. CREDENTIALING FEES: PROGRAM SERVICE EXPENSES 921. MANAGEMENT AND GENERAL EXPENSES 48. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 969. RECRUITMENT: PROGRAM SERVICE EXPENSES 260. MANAGEMENT AND GENERAL EXPENSES 14. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 274. PROFESSIONAL PHYSICIAN SERVICES: PROGRAM SERVICE EXPENSES 6,202,501. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,202,501. FORM 990, PART XI, LINE 9: PARTNERSHIP ADJUSTMENT: -159,745. BOOK ADJUSTMENT: 62,060. 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