2021-10-15T14:10:37-05:00 2020-12-31 910189318 MOSS ADAMS LLP 10960 WILSHIRE BOULEVARD SUITE 1100 LOS ANGELES CA 90024 990 2020-01-01 330586911 CHG FOUNDATION CHGF 6194220422 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 SCOTT CARROLL CHIEF FINANCIAL OFFICER 6194220422 2021-10-12 1 SCOTT CARROLL 999009999 LAUREN HAVERLOCK P00545829 3104770450 2021-10-12 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z COMMUNITY HEALTH GROUP PARTNERSHIP PLAN NORMA DIAZ 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 978278799 0 X WWW.CHGSD.COM X 1994 CA CHG FOUNDATION IS DEDICATED TO MAINTAINING AND IMPROVING THE HEALTH OF OUR MEMBERS BY PROVIDING ACCESS TO QUALITY CARE AND OFFERING EXCEPTIONAL SERVICE TO DIVERSE POPULATIONS. 9 9 378 0 0 0 0 5000 930690690 974217788 11288846 2960118 1136463 909904 943115999 978092810 37686 12360 0 0 26679780 23049630 0 0 0 941450638 968699912 968168104 991761902 -25052105 -13669092 612637175 637171330 173613322 211816569 439023853 425354761 CHG FOUNDATION IS DEDICATED TO MAINTAINING AND IMPROVING THE HEALTH OF OUR MEMBERS BY PROVIDING ACCESS TO QUALITY CARE AND OFFERING EXCEPTIONAL SERVICE TO DIVERSE POPULATIONS. 0 0 949506354 12360 975073961 TO ARRANGE FOR, MAKE AVAILABLE, AND ASSUME FINANCIAL RISK FOR THE PROVISION OF HEALTH CARE SERVICES TO ENROLLED MEMBERS ELIGIBLE FOR MEDI-CAL IN SAN DIEGO COUNTY UNDER THE CALIFORNIA MEDI-CAL PREPAID HEALTH PLAN PROGRAM. 949506354 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 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 0 1 0 1 0 1 1987 0 1 378 1 0 0 0 0 0 0 0 0 0 0 0 0 X 9 9 1 1 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 0 0 0 CA X SCOTT CARROLL 6194986591 2420 FENTON STREET SUITE 100 CHULA VISTA CA 91914 NORMA DIAZ CHIEF EXECUTIVE OFFICER 38.00 2.00 X 0 747537 49254 JOSEPH A GARCIA CHIEF OPERATING OFFICER 38.00 2.00 X 0 589125 0 ALEJANDRO HINOJOSA-VALENCIA IHA PHYSICIAN 20.00 20.00 X 0 387359 35315 PATRICK TELLEZ CHIEF MEDICAL OFFICER 20.00 20.00 X 0 392210 23318 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 16.00 24.00 X 0 371486 35801 SCOTT CARROLL CHIEF FINANCIAL OFFICER 37.00 3.00 X 0 343520 9551 MANISHA SHARMA MEDICAL DIRECTOR 20.00 20.00 X 0 286536 48990 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 20.00 20.00 X 0 262002 22590 HEIDI ARNDT SENIOR COMPLIANCE OFFICER 16.00 24.00 X 0 222909 34757 YOUSAF FAROOK SENIOR DIRECTOR OF HEALTH CARE SERVICES 20.00 20.00 X 0 204084 49740 FRANCISCA CHAVEZ SENIOR DIRECTOR OF OPERATIONS 38.00 2.00 X 0 221723 29750 ANDREW GREGOR CHIEF CORPORATE COUNSEL 38.00 2.00 X 0 210401 20525 ALBERT VITELA CHAIR OF THE BOARD OF DIRECTORS 3.00 1.00 X X 0 34500 0 CARLOS CESENA VICE CHAIRMAN OF THE BOARD OF DIRECTORS 3.00 1.00 X X 0 26400 0 TITO CALSADA BOARD MEMBER 3.00 1.00 X 0 25800 0 GRACE KOJIMA BOARD MEMBER 3.00 1.00 X 0 25500 0 DOMENIC D'ALESSIO BOARD MEMBER 3.00 1.00 X 0 25400 0 JOSE LUIS VALDIVIA BOARD MEMBER 3.00 1.00 X 0 25200 0 CARLOTA SALAS SECRETARY OF THE BOARD OF DIRECTORS 3.00 1.00 X X 0 24075 0 JONATHAN BALL BOARD MEMBER 3.00 1.00 X 0 23750 0 ANITA HOLT BOARD MEMBER 3.00 1.00 X 0 18100 0 0 4467617 359591 0 1 1 0 MEDIMPACT HEALTHCARE SYSTEMS INC 10181 SCRIPPS GATEWAY CT SAN DIEGO CA 92131 PHARMACY SERVICES 205706398 UCSD MEDICAL CENTER 200 W ARBOR DR SAN DIEGO CA 92103 MEDICAL/HEALTHCARE SERVICES 81297248 PALOMAR HEALTH 2185 CITRICADO PKWY SAN DIEGO CA 92029 MEDICAL/HEALTHCARE SERVICES 70538146 SCRIPPS HEALTH 4077 FIFTH AVE SAN DIEGO CA 92103 MEDICAL/HEALTHCARE SERVICES 62947782 GROSSMONT HOSPITAL CORPORATION 5555 GROSSMONT CENTER DR LA MESA CA 91942 MEDICAL/HEALTHCARE SERVICES 61863022 522 5000 5000 MEDI-CAL PREMIUMS 524114 974217788 974217788 974217788 2960118 2960118 239720 185989 53731 53731 53731 DIRECTED PAYMENT ADMIN FEE 524114 856173 856173 856173 978092810 975073961 0 3013849 X 5760 5760 6600 6600 2406582 207764 2198818 15917231 4790784 11126447 441885 135022 306863 3062691 922962 2139729 1221241 359915 861326 11212609 11212609 330213 330213 668246 668246 943999000 943077547 921453 6672 6672 2688997 2688997 3763741 3763741 908274 908274 52054 52054 82692 82692 1814875 1814875 583572 583572 TAXES, LICENSES, & FEES 627346 627346 EMPLOYEE TRAINING & PRO 514562 514562 DUES AND SUBSCRIPTIONS 219192 219192 1227867 1227867 991761902 949506354 42255548 0 6128305 2280503 454694262 463105285 121918359 140755665 268408 373284 18853512 5735186 13916222 13118326 15711619 17538267 612637175 637171330 138161228 146618095 0 15130 35452094 65183344 173613322 211816569 X 439023853 425354761 439023853 425354761 612637175 637171330 -13669092 0 X 0 1 X 1 0 X 5000 5000 1098483346 1065895336 832392078 930690690 974217788 4901679238 1098483346 1065895336 832392078 930690690 974222788 4901684238 0 0 0 4901684238 323307 711008 5275891 11744375 3199838 21254419 323307 711008 5275891 11744375 3199838 21254419 694174 702041 1030401 856173 3282789 1098806653 1067300518 838370010 943465466 978278799 4926221446 0.99500 0.99580 0.00430 0.00380 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2017 AMOUNT: $ 694,174. 2018 AMOUNT: $ 702,041. 2019 AMOUNT: $ 1,030,401. 2020 AMOUNT: $ 856,173. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 3500000 3500000 15159030 5540704 9618326 130908 130908 0 63574 63574 0 13118326 ACCRUED MEDICAL LOSS RATIO (MLR) RISK CORRIDOR LIABILITIES 33177341 HOSPITAL DIRECTED PAYMENTS PAYABLE 1707252 MANAGED CARE ORGANIZATION TAX PAYABLE 30120368 OTHER CURRENT LIABILITIES 178383 65183344 X 978092810 0 978092810 0 978092810 991761902 0 991761902 0 991761902 PART X, LINE 2: COMMUNITY HEALTH GROUP AND CHG FOUNDATION ARE NOT-FOR-PROFIT PUBLIC BENEFIT CORPORATIONS, ORGANIZED UNDER THE NOT-FOR-PROFIT PUBLIC BENEFIT LAWS OF CALIFORNIA, AND EXEMPT FROM FEDERAL INCOME TAXES UNDER INTERNAL REVENUE CODE (THE "CODE") SECTION 501(A) AS ORGANIZATIONS DESCRIBED IN SECTIONS 501(C)(4) AND 501(C)(3), RESPECTIVELY, OF THE CODE. BOTH ORGANIZATIONS ARE EXEMPT FROM STATE TAXES UNDER THE CALIFORNIA REVENUE AND TAXATION CODE SECTION 23701(D). ACCORDINGLY, NO PROVISION HAS BEEN MADE FOR INCOME TAXES. MANAGEMENT HAS EVALUATED THE TAX POSITIONS OF COMMUNITY HEALTH GROUP AND CHG FOUNDATION AND THE CERTAINTY AS TO WHETHER THOSE POSITIONS WILL BE SUSTAINED IN THE EVENT OF AN AUDIT BY TAXING AUTHORITIES AT THE FEDERAL AND STATE LEVELS. THE PRIMARY TAX POSITIONS EVALUATED ARE RELATED TO COMMUNITY HEALTH GROUP'S AND CHG FOUNDATION'S CONTINUED QUALIFICATION AS TAX-EXEMPT ORGANIZATIONS AND WHETHER THERE ARE UNRELATED BUSINESS INCOME ACTIVITIES CONDUCTED THAT WOULD BE TAXABLE. MANAGEMENT BELIEVES THAT IT IS MORE LIKELY THAN NOT THAT ALL INCOME TAX POSITIONS WILL BE SUSTAINED UPON POTENTIAL AUDIT OR EXAMINATION. THE ORGANIZATION HAS NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2020 OR 2019. COMMUNITY HEALTH GROUP AND CHG FOUNDATION FILE INFORMATION RETURNS IN THE U.S. FEDERAL JURISDICTION AND THE STATE OF CALIFORNIA. 1 SCHOLARSHIPS 2 6000 GENERAL ASSISTANCE 1 600 PART I, LINE 2: CHG FOUNDATION AWARDS GRANTS AND SCHOLARSHIPS FOR HEALTH AND EDUCATIONAL RELATED PURPOSES TO INDIVIDUALS RESIDING IN SAN DIEGO COUNTY WHO ARE NOT RELATED TO THE ORGANIZATION. 0 0 0 0 0 0 0 0 0 NORMA DIAZ CHIEF EXECUTIVE OFFICER 0 690779 0 16100 0 40658 0 8400 0 40854 0 796791 0 0 JOSEPH A GARCIA CHIEF OPERATING OFFICER 0 589125 0 0 0 0 0 0 0 0 0 589125 0 0 ALEJANDRO HINOJOSA-VALENCIA IHA PHYSICIAN 0 95659 0 287650 0 4050 0 5252 0 30063 0 422674 0 0 PATRICK TELLEZ CHIEF MEDICAL OFFICER 0 383785 0 2400 0 6025 0 0 0 23318 0 415528 0 0 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 0 292228 0 3800 0 75458 0 8400 0 27401 0 407287 0 0 SCOTT CARROLL CHIEF FINANCIAL OFFICER 0 320435 0 2600 0 20485 0 8400 0 1151 0 353071 0 0 MANISHA SHARMA MEDICAL DIRECTOR 0 285289 0 600 0 647 0 8400 0 40590 0 335526 0 0 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 0 257902 0 650 0 3450 0 7716 0 14874 0 284592 0 0 HEIDI ARNDT SENIOR COMPLIANCE OFFICER 0 221619 0 600 0 690 0 7605 0 27152 0 257666 0 0 YOUSAF FAROOK SENIOR DIRECTOR OF HEALTH CARE SERVI 0 201509 0 2250 0 325 0 5625 0 44115 0 253824 0 0 FRANCISCA CHAVEZ SENIOR DIRECTOR OF OPERATIONS 0 219468 0 2255 0 0 0 0 0 29750 0 251473 0 0 ANDREW GREGOR CHIEF CORPORATE COUNSEL 0 207304 0 1100 0 1997 0 6350 0 14175 0 230926 0 0 PART I, LINE 3 CHG FOUNDATION RELIES ON COMMUNITY HEALTH GROUP (PARENT), A RELATED ORGANIZATION, TO ESTABLISH THE COMPENSATION AND BENEFITS OF THE ORGANIZATION'S CEO. CHG FOUNDATION'S CEO IS ALSO THE CEO OF COMMUNITY HEALTH GROUP; CHG FOUNDATION'S CEO RECEIVES ONE HUNDRED PERCENT OF HER COMPENSATION FROM COMMUNITY HEALTH GROUP. COMMUNITY HEALTH GROUP UTILIZES THE FOLLOWING METHODS TO DETERMINE THE COMPENSATION OF THE CEO: 1) COMPENSATION COMMITTEE; 2) INDEPENDENT COMPENSATION CONSULTANT; 3) COMPENSATION SURVEY AND/OR STUDY; AND 4) APPROVAL BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 2 NORMA DIAZ AND JOSEPH A. GARCIA HAVE A FAMILY RELATIONSHIP (SPOUSES). FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION'S PARENT (COMMUNITY HEALTH GROUP, OR "CHG") ENGAGED WITH JOSEPH A. GARCIA, A CONSULTANT WITH J.A.G. CONSULTING, LLC (SINGLE-MEMBER LLC, WHERE JOSEPH A. GARCIA IS THE SOLE MANAGER) TO FULFILL THE DUTIES OF CHIEF OPERATING OFFICER FOR CHG. COMPENSATION PAID TO J.A.G. CONSULTING, LLC BY CHG IN 2020 IN RELATION TO THESE DUTIES WAS $589,125. FORM 990, PART VI, SECTION A, LINE 6 CHG FOUNDATION HAS ONE SOLE MEMBER, COMMUNITY HEALTH GROUP, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A THE ORGANIZATION'S SOLE MEMBER, COMMUNITY HEALTH GROUP, HAS THE POWER TO APPOINT ALL OF THE ORGANIZATION'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B AS THE SOLE MEMBER OF CHG FOUNDATION, COMMUNITY HEALTH GROUP HAS THE POWER TO APPROVE ANY AMENDMENT TO THE ARTICLES OF INCORPORATION OR BYLAWS OF CHG FOUNDATION. ADDITIONALLY, COMMUNITY HEALTH GROUP HAS THE POWER OR AUTHORITY GIVEN TO MEMBERS BY THE NONPROFIT PUBLIC BENEFIT CORPORATION LAW BY ITS WRITTEN CONSENT. FORM 990, PART VI, SECTION B, LINE 11B MOSS ADAMS, LLP IS ENGAGED TO PREPARE AND COMPLETE THE FORM 990 ON BEHALF OF CHG FOUNDATION. THE FORM 990 IS PREPARED UNDER THE DIRECTION, REVIEW, AND OVERSIGHT OF COMMUNITY HEALTH GROUP'S (CHG FOUNDATION'S PARENT) FINANCE DEPARTMENT, AND EXECUTIVE MANAGEMENT TEAM. THE FORM 990 IS REVIEWED IN DETAIL BY THE CHIEF FINANCIAL OFFICER OF CHG FOUNDATION WHO APPROVES THE FINAL VERSION FOR FILING WITH MOSS ADAMS, LLP. CHG FOUNDATION'S BOARD OF DIRECTORS RELIES ON THE EXPERTISE OF INTERNAL MANAGEMENT AND MOSS ADAMS, LLP FOR THE ACCURATE AND TIMELY FILING OF FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE CHG FOUNDATION BOARD OF DIRECTORS AND EXECUTIVE MANAGEMENT TEAM RECEIVE A REFRESHER TRAINING (CONDUCTED BY OUTSIDE LEGAL COUNSEL) ON THE IMPORTANCE OF IDENTIFYING ANY CONFLICTS OF INTEREST; THE DISCLOSURE OF ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST IS AN INTEGRAL PART OF THE CULTURE AT CHG FOUNDATION AND COMMUNITY HEALTH GROUP. ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST ARE REPORTED TO COMMUNITY HEALTH GROUP'S COMPLIANCE OFFICER FOR INVESTIGATION AND FOLLOW-UP. IN THE EVENT OF ANY CONFLICTS OF INTEREST, THE BOARD OF DIRECTORS WILL DETERMINE WHAT RESTRICTIONS, IF ANY, WILL BE IMPOSED ON THE PERSON(S) WITH THE CONFLICT; AND SUCH PERSON(S) WILL RECUSE THEMSELVES FROM PARTICIPATING IN ANY DELIBERATIONS AND DECISIONS OF THE BOARD OF DIRECTORS REGARDING MATTERS INVOLVING THE POTENTIAL CONFLICT OF INTEREST, UNLESS OTHERWISE PERMITTED OR AUTHORIZED BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15 CHG FOUNDATION ANSWERED EACH OF THESE QUESTIONS AS "NO" BECAUSE ALL COMPENSATION PAID TO THOSE PERSONS REPORTED IN PART VII OR SCHEDULE J IS PAID BY COMMUNITY HEALTH GROUP (CHG FOUNDATION'S PARENT). SEE THE COMMUNITY HEALTH GROUP FORM 990 SCHEDULE O FOR A DESCRIPTION OF THE PROCESSES BY WHICH IT DETERMINES EXECUTIVE COMPENSATION. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS, AS WELL AS THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS (WHICH INCLUDE THE CONSOLIDATED RESULTS OF COMMUNITY HEALTH GROUP AND CHG FOUNDATION) ARE AVAILABLE TO THE GENERAL PUBLIC ON THE CALIFORNIA DEPARTMENT OF MANAGED HEALTH CARE WEBSITE (DMHC.CA.GOV). THE ORGANIZATION'S GOVERNING DOCUMENTS ARE ON FILE WITH THE CALIFORNIA DEPARTMENT OF MANAGED HEALTH CARE AND CAN BE OBTAINED VIA REQUEST UNDER THE CALIFORNIA PUBLIC RECORDS ACT. THE ORGANIZATION'S CONFLICT OF INTEREST POLICY IS NOT MADE AVAILABLE TO THE GENERAL PUBLIC. FORM 990, PART IX, LINE 11G HEALTH CARE EXPENSES, NET OF REINSURANCE: PROGRAM SERVICE EXPENSES 731,313,880. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 731,313,880. PHARMACY EXPENSES: PROGRAM SERVICE EXPENSES 211,754,917. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 211,754,917. CONSULTING EXPENSES: PROGRAM SERVICE EXPENSES 8,750. MANAGEMENT AND GENERAL EXPENSES 874,069. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 882,819. TEMPORARY SERVICES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 47,384. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 47,384. FORM 990, PART IX, LINES 5 THROUGH 10: CHG FOUNDATION HAS NO EMPLOYEES. FOR A FEE, COMMUNITY HEALTH GROUP (PARENT) PROVIDES ADMINISTRATIVE SERVICES AND SUPPORT TO CHG FOUNDATION UNDER THE TERMS AND CONDITIONS OF AN ADMINISTRATIVE SERVICES AGREEMENT. THE SERVICES PROVIDED INCLUDE BUT ARE NOT LIMITED TO: MEDICAL MANAGEMENT, CLAIMS PROCESSING AND PAYMENT, INFORMATION SYSTEMS, LEGAL, PLANNING, INSURANCE, ACCOUNTING SERVICES, AND OTHER SERVICES AS DEFINED IN THE AGREEMENT. ALL EMPLOYEES PERFORMING WORK ON BEHALF OF CHG FOUNDATION IN ACCORDANCE WITH THE ADMINISTRATIVE SERVICES AGREEMENT ARE COMPENSATED AND PAID BY COMMUNITY HEALTH GROUP, A RELATED ORGANIZATION (PARENT) WHO ALSO ACTS AS THE COMMON PAYMASTER. COMPENSATION IS ALLOCATED TO CHG FOUNDATION FROM COMMUNITY HEALTH GROUP, AND THIS ALLOCATED COMPENSATION IS REPORTED ON CHG FOUNDATION'S FORM 990, PART IX, LINES 5-10. FORM 990, PART IX, LINES 11B THROUGH 11D; AND LINES 12 THROUGH 24E: A MAJORITY OF THE EXPENSES REPORTED IN THESE LINES REPRESENT AMOUNTS ALLOCATED TO CHG FOUNDATION FROM COMMUNITY HEALTH GROUP IN ACCORDANCE WITH THE TERMS OF THE ADMINISTRATIVE SERVICES AGREEMENT IN PLACE BETWEEN THE TWO ENTITIES. SUCH ALLOCATED EXPENSES ARE REPORTED AT THE FUNCTIONAL LEVEL ON CHG FOUNDATION'S FORM 990 PART IX. COMMUNITY HEALTH GROUP 2420 FENTON STREET SUITE 100 CHULA VISTA CA 91914 953766170 HEALTH CARE SERVICES CA 501(C)(4) N/A 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 COMMUNITY HEALTH GROUP O 23049630 BOOK VALUE COMMUNITY HEALTH GROUP P 991192866 BOOK VALUE COMMUNITY HEALTH GROUP S 2566192 BOOK VALUE COMMUNITY HEALTH GROUP M 11212609 BOOK VALUE PART V, SECTION 2, LINES 1 TO 4: FOR A FEE, COMMUNITY HEALTH GROUP PROVIDES ADMINISTRATIVE SERVICES AND SUPPORT TO CHG FOUNDATION UNDER THE TERMS OF AN ADMINISTRATIVE SERVICES AGREEMENT. THE SERVICES PROVIDED INCLUDE, BUT ARE NOT LIMITED TO: MEDICAL MANAGEMENT, CLAIMS PROCESSING AND PAYMENT, INFORMATION SYSTEMS, LEGAL, PLANNING, INSURANCE, ACCOUNTING SERVICES, AND OTHER SERVICES AS DEFINED IN THE AGREEMENT. ALL EMPLOYEES PERFORMING WORK ON BEHALF OF CHG FOUNDATION IN ACCORDANCE WITH THE ADMINISTRATIVE SERVICES AGREEMENT ARE COMPENSATED AND PAID BY COMMUNITY HEALTH GROUP (PARENT), WHO ALSO ACTS AS THE COMMON PAYMASTER. COMPENSATION IS ALLOCATED TO CHG FOUNDATION FROM COMMUNITY HEALTH GROUP, AND THIS ALLOCATED COMPENSATION IS REPORTED ON CHG FOUNDATION'S FORM 990, PART IX, LINES 5-10. SUCH AMOUNTS ARE REPORTED ON LINE 1 OF THIS SCHEDULE R, PART V, SECTION 2. LINE 2 OF THIS SCHEDULE R, PART V, SECTION 2 IS PRIMARILY COMPRISED OF REIMBURSEMENTS OF HEALTH CARE EXPENSES AND PHARMACY EXPENSES (CLAIMS PAYMENTS), PAID BY COMMUNITY HEALTH GROUP ON BEHALF OF CHG FOUNDATION, AS WELL AS REIMBURSEMENT OF COMPENSATION AND OTHER ADMINISTRATIVE EXPENSES ALLOCATED TO CHG FOUNDATION IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE AFOREMENTIONED ADMINISTRATIVE SERVICES AGREEMENT. LINE 3 OF THIS SCHEDULE R, PART V, SECTION 2 REFLECTS THE NET AMOUNT OF $2,566,191 THAT WAS TRANSFERRED TO CHG FOUNDATION FROM COMMUNITY HEALTH GROUP AS A RETURN OF FUNDS TO CHG FOUNDATION THAT COMMUNITY HEALTH GROUP WAS HOLDING ON BEHALF OF CHG FOUNDATION. IN THE NORMAL COURSE OF BUSINESS, FUNDS ARE BEING HELD BY COMMUNITY HEALTH GROUP ON BEHALF OF CHG FOUNDATION ON A SHORT-TERM BASIS SO THAT SUCH FUNDS ARE AVAIALABLE FOR FUNDING CERTAIN OBLIGATIONS OF CHG FOUNDATION THAT WILL BE PAID BY COMMUNITY HEALTH GROUP IN ACCORDANCE WITH THE ADMINISTRATIVE SERVICES AGREEMENT. COMMUNITY HEALTH GROUP HOLDS THESE FUNDS IN CUSTODY OF CHG FOUNDATION AND MAINTAINS A SEPARATE ACCOUNTING OF THESE FUNDS (AS WELL AS ALL INTEREST EARNED ON SUCH FUNDS) WHILE THEY ARE IN POSSESSION OF COMMUNITY HEALTH GROUP. LINE 4 OF THIS SCHEDULE R, PART V, SECTION 2 REPRESENTS FEES FOR THE ADMINISTRATIVE SERVICES AND SUPPORT THAT COMMUNITY HEALTH GROUP PROVIDES TO CHG FOUNDATION IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE ADMINISTRATIVE SERVICES AGREEMENT IN EFFECT BETWEEN THE TWO ORGANIZATIONS.