2020-11-15T17:37:10-06:00 2019-12-31 910189318 MOSS ADAMS LLP 10960 WILSHIRE BOULEVARD SUITE 1100 LOS ANGELES CA 90024 990 2019-01-01 953766170 COMMUNITY HEALTH GROUP COMM 6194220422 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 SCOTT CARROLL CHIEF FINANCIAL OFFICER 6194220422 2020-11-13 1 LAUREN HAVERLOCK P00545829 3104770450 2020-11-13 172.90.17.200 2020-11-13 19:39:16 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 45A0DEE88EBA5BC01B2D6E064F66B43F0304238A 2019 2021-04-22 16:20:28Z NORMA DIAZ 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 164908987 0 X WWW.CHGSD.COM X 1982 CA COMMUNITY HEALTH GROUP 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 9 358 5 0 0 0 0 117965233 114845064 637081 802899 35958206 34138428 154560520 149786391 244315 193341 0 0 22816462 22192198 0 0 0 125694739 118495318 148755516 140880857 5805004 8905534 501897312 92100454 480765344 61583181 21131968 30517273 COMMUNITY HEALTH GROUP 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 103296290 193341 114892494 TO ARRANGE FOR, MAKE AVAILABLE, AND ASSUME FINANCIAL RISK FOR THE PROVISION OF HEALTH CARE SERVICES TO ENROLLED MEMBERS ELIGIBLE FOR MEDICARE AND MEDI-CAL IN SAN DIEGO COUNTY UNDER THE DUAL DEMONSTRATION CAL MEDICONNECT PROGRAM. 103296290 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 2063 0 1 358 1 0 0 0 0 0 0 0 0 X 9 9 1 1 0 0 0 0 0 1 1 0 0 0 1 1 1 1 1 1 1 0 CA X SCOTT CARROLL 6194986591 2420 FENTON STREET SUITE 100 CHULA VISTA CA 91914 NORMA DIAZ CHIEF EXECUTIVE OFFICER 20.00 20.00 X 714401 0 37344 JOSEPH GARCIA CHIEF OPERATING OFFICER 20.00 20.00 X 572000 0 0 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 20.00 20.00 X 395998 0 27201 SCOTT CARROLL CHIEF FINANCIAL OFFICER 20.00 20.00 X 367647 0 8250 MANISHA SHARMA MEDICAL DIRECTOR 20.00 20.00 X 318541 0 26169 IGNACIO RAMIREZ-OCHOA IHA PHYSICIAN 20.00 20.00 X 310464 0 17109 JOY EMMANUEL-COCHRANE IHA PHYSICIAN 20.00 20.00 X 254211 0 25590 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 20.00 20.00 X 255349 0 18083 HEIDI ARNDT MEDICARE COMPLIANCE (FORMER CIO) 20.00 20.00 X 253487 0 15372 NOREEN KOIZUMI DIRECTOR OF CORPORATE QUALITY 20.00 20.00 X 194231 0 34716 ANDREW GREGOR CHIEF CORPORATE COUNSEL 20.00 20.00 X 210274 0 16556 ALBERT VITELA CHAIRMAN OF THE BOARD OF DIRECTORS 2.00 2.00 X X 32120 0 0 JOSE LUIS VALDIVIA BOARD MEMBER 2.00 2.00 X 27219 0 0 GRACE KOJIMA BOARD MEMBER 2.00 2.00 X 26049 0 0 DOMENIC D'ALESSIO BOARD MEMBER 2.00 2.00 X 25005 0 0 CARLOS CESENA VICE CHAIRMAN OF THE BOARD OF DIRECTORS 2.00 2.00 X X 24595 0 0 CARLOTA SALAS SECRETARY OF THE BOARD OF DIRECTORS 2.00 2.00 X X 24395 0 0 TITO CALSADA BOARD MEMBER 2.00 2.00 X 23795 0 0 JONATHAN BALL BOARD MEMBER 2.00 2.00 X 23420 0 0 ANITA HOLT BOARD MEMBER 2.00 2.00 X 20030 0 0 4073231 0 226390 41 1 1 0 MEDIMPACT HEALTHCARE SYSTEMS INC 10181 SCRIPPS GATEWAY CT SAN DIEGO CA 92131 PHARMACY SERVICES 36500276 REGENTS OF THE UNIVERSITY OF CALIFORNIA 200 W ARBOR DR SAN DIEGO CA 92103 MEDICAL/HEALTHCARE SERVICES 7976482 SCRIPPS HEALTH 4077 FIFTH AVE SAN DIEGO CA 92103 MEDICAL/HEALTHCARE SERVICES 7364305 GROSSMONT HOSPITAL CORPORATION 5555 GROSSMONT CENTER DR LA MESA CA 91942 MEDICAL/HEALTHCARE SERVICES 5470879 SHARP MEMORIAL HOSPITAL 7901 FROST ST SAN DIEGO CA 92123 MEDICAL/HEALTHCARE SERVICES 4515334 127 CAL MEDICONNECT REVENUE 524114 114845064 114845064 114845064 787572 787572 15137923 15122596 15327 15327 15327 REIMB. OF COSTS ALLOCATED TO CHGF 900099 33835901 33835901 OTHER REVENUE 900099 302527 47430 255097 34138428 149786391 114892494 0 34893897 X 191022 191022 2319 2319 2622900 2622900 15080405 780635 14299770 99844 12063 87781 3145952 166213 2979739 1243097 61789 1181308 459311 459311 549953 549953 50825 50825 104922164 101733014 3189150 32837 32837 4072884 4072884 3717394 3717394 914466 914466 78440 78440 130349 130349 1272147 1272147 695942 695942 EMPLOYEE TRAINING AND P 405064 405064 REINSURANCE EXPENSE 349235 349235 TAXES, LICENSES, & FEES 305147 305147 DUES & SUBSCRIPTIONS 190109 190109 349051 349051 140880857 103296290 37584567 0 44152890 4727330 408547128 38360004 7107257 11778922 10225 24530 877580 524855 1546420 1569350 9998329 7193399 3253993 2804930 32780686 28828221 3621133 3482312 501897312 92100454 13312001 15801634 408246705 38059521 59206638 7722026 480765344 61583181 X 21131968 30517273 21131968 30517273 501897312 92100454 8905534 479771 0 X 0 1 X 1 0 0 1 X 4421311 2461144 1960167 5577018 4732255 844763 2804930 DUE TO CHG FOUNDATION 2993317 PAYABLE TO THE STATE OF CALIFORNIA 4715549 OTHER MISCELLANEOUS LIABILITIES 13160 7722026 X PART IV, LINE 2B: IN 2018, CHG FOUNDATION ("THE FOUNDATION") TRANSFERRED $385,000,000 OF CASH TO ITS PARENT, COMMUNITY HEALTH GROUP, ON A SHORT-TERM BASIS SO THAT SUCH FUNDS COULD BE DEPOSITED IN INTEREST BEARING ACCOUNTS THAT EARNED HIGHER RATES OF RETURN THAN WHAT THE FOUNDATION WAS ABLE TO EARN IN ITS EXISTING ACCOUNTS. COMMUNITY HEALTH GROUP HELD THESE FUNDS IN CUSTODY OF THE FOUNDATION AND MAINTAINED A SEPARATE ACCOUNTING OF THESE FUNDS (AS WELL AS ALL INTEREST EARNED ON SUCH FUNDS) WHILE THEY WERE IN POSSESSION OF COMMUNITY HEALTH GROUP. SUCH FUNDS REMAINED IN CUSTODY OF COMMUNITY HEALTH GROUP AS OF DECEMBER 31, 2018. ALL SUCH FUNDS WERE TRANSFERRED BACK TO THE FOUNDATION IN 2019 ONCE THE FOUNDATION ESTABLISHED INTEREST BEARING ACCOUNTS THAT EARNED RATES CONSISTENT WITH THOSE BEING EARNED BY COMMUNITY HEALTH GROUP. IN 2019 CHG FOUNDATION ALSO TRANSFERRED ADDITIONAL FUNDS TO BE HELD BY COMMUNITY HEALTH GROUP AS DEPOSITS/ADVANCE FUNDING FOR CLAIMS PAYMENTS MADE BY COMMUNITY HEALTH GROUP ON BEHALF OF CHG FOUNDATION. SUCH AMOUNTS ($38,059,520 AS OF 12/31/19) ARE PRESENTED AS CUSTODIAL ACCOUNT LIABILITIES AT LINE 21 OF PART X OF FORM 990. 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 AT DECEMBER 31, 2019 OR 2018. COMMUNITY HEALTH GROUP AND CHG FOUNDATION FILE INFORMATION RETURNS IN THE U.S. FEDERAL JURISDICTION AND THE STATE OF CALIFORNIA. 1 SAN YSIDRO HEALTH CENTER 1275 30TH STREET SAN DIEGO CA 92154 952801772 501(C)(3) 38295 GENERAL SUPPORT MANA DE SAN DIEGO 2515 CAMINO DEL RIO SOUTH SUITE 228 228 SAN DIEGO CA 92108 330821060 501(C)(3) 25000 GENERAL SUPPORT ISMAEL CALA FOUNDATION 601 BRICKELL KEY DRIVE SUITE 102 MIAMI FL 33131 473009429 501(C)(3) 11548 FUNDING OF SCHOLARSHIPS AND GENERAL SUPPORT 211 SAN DIEGO 3860 CALLE FORTUNADA SUITE 101 SAN DIEGO CA 92123 331029843 501(C)(3) 8000 GENERAL SUPPORT TOYS FOR TOTS - SAN DIEGO 9955 POMERADO RD SAN DIEGO CA 92131 203021444 501(C)(3) 6000 GENERAL SUPPORT SCRIPPS HEALTH FOUNDATION 10140 CAMPUS POINT DRIVE SAN DIEGO CA 92121 951684089 501(C)(3) 5500 GENERAL SUPPORT LA MAESTRA FAMILY CLINIC INC 4060 FAIRMOUNT AVENUE SAN DIEGO CA 92105 330473171 501(C)(3) 5160 GENERAL SUPPORT FAMILY HEALTH CENTERS OF SAN DIEGO INC 823 GATEWAY CENTER WAY SAN DIEGO CA 92102 952833205 501(C)(3) 5050 GENERAL SUPPORT CHULA VISTA POLICE FOUNDATION 315 FOURTH AVENUE CHULA VISTA CA 91910 300281686 501(C)(3) 5000 GENERAL SUPPORT NEIGHBORHOOD HEALTHCARE 425 N DATE STREET SUITE 203 ESCONDIDO CA 92025 952796316 501(C)(3) 5000 GENERAL SUPPORT CHICANO FEDERATION 3180 UNIVERSITY AVENUE SUITE 317 SAN DIEGO CA 92104 237085960 501(C)(3) 5000 GENERAL SUPPORT VISTA COMMUNITY CLINIC 1000 VALE TERRACE VISTA CA 92084 952815615 501(C)(3) 5000 GENERAL SUPPORT 12 0 PART I, LINE 2: COMMUNITY HEALTH GROUP PROVIDES SPONSORSHIPS AND GRANTS TO LOCAL 501(C)(3) ORGANIZATIONS TO ASSIST IN THE ACCOMPLISHMENT OF THEIR CHARITABLE PURPOSES AND TO HELP POSITIVELY IMPACT THE COMMUNITY THAT COMMUNITY HEALTH GROUP SERVES. ADDITIONALLY, GRANTS AND SCHOLARSHIPS FOR HEALTH AND EDUCATIONAL RELATED PURPOSES ARE AWARDED TO INDIVIDUALS RESIDING IN SAN DIEGO COUNTY WHO ARE NOT RELATED TO THE ORGANIZATION. X X X X 0 0 0 0 0 0 0 1 0 NORMA DIAZ CHIEF EXECUTIVE OFFICER 658005 0 1200 0 55196 0 8250 0 29094 0 751745 0 0 0 JOSEPH GARCIA CHIEF OPERATING OFFICER 572000 0 0 0 0 0 0 0 0 0 572000 0 0 0 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 281759 0 44700 0 69539 0 8250 0 18951 0 423199 0 0 0 SCOTT CARROLL CHIEF FINANCIAL OFFICER 308621 0 700 0 58326 0 8250 0 0 0 375897 0 0 0 MANISHA SHARMA MEDICAL DIRECTOR 258452 0 22730 0 37359 0 0 0 26169 0 344710 0 0 0 IGNACIO RAMIREZ-OCHOA IHA PHYSICIAN 92536 0 88400 0 129528 0 8250 0 8859 0 327573 0 0 0 JOY EMMANUEL-COCHRANE IHA PHYSICIAN 79617 0 74960 0 99634 0 7978 0 17612 0 279801 0 0 0 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 250399 0 1200 0 3750 0 7770 0 10313 0 273432 0 0 0 HEIDI ARNDT MEDICARE COMPLIANCE (FORMER CIO) 221900 0 1200 0 30387 0 7362 0 8010 0 268859 0 0 0 NOREEN KOIZUMI DIRECTOR OF CORPORATE QUALITY 182915 0 1200 0 10116 0 5632 0 29084 0 228947 0 0 0 ANDREW GREGOR CHIEF CORPORATE COUNSEL 206204 0 200 0 3870 0 6283 0 10273 0 226830 0 0 0 PART I, LINE 7 THE ORGANIZATION PROVIDED THE FOLLOWING TYPES OF NON-FIXED PAYMENTS IN 2019: VACATION CASHOUT PAYMENTS, DISCRETIONARY BONUSES AND GIFT CARDS. HEIDI ARNDT HIGHEST COMPENSATED EMPLOYEE/FORMER OFFICER EMPLOYEE HARDSHIP X 28635 24530 0 0 0 24530 FORM 990, PART VI, SECTION A, LINE 2 NORMA DIAZ AND JOSEPH GARCIA HAVE A FAMILY RELATIONSHIP (SPOUSES). FORM 990, PART VI, SECTION A, LINE 3 THE ORGANIZATION 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. COMPENSATION PAID TO J.A.G CONSULTING, LLC IN 2019 IN RELATION TO THESE DUTIES WAS $572,000. FORM 990, PART VI, SECTION B, LINE 11B MOSS ADAMS, LLP IS ENGAGED TO PREPARE AND COMPLETE THE FORM 990 ON BEHALF OF COMMUNITY HEALTH GROUP. THE FORM 990 IS PREPARED UNDER THE DIRECTION, REVIEW, AND OVERSIGHT OF COMMUNITY HEALTH GROUP'S FINANCE DEPARTMENT, AND EXECUTIVE MANAGEMENT TEAM. THE FORM 990 IS REVIEWED IN DETAIL BY THE CHIEF FINANCIAL OFFICER OF COMMUNITY HEALTH GROUP WHO APPROVES THE FINAL VERSION FOR FILING WITH MOSS ADAMS, LLP. COMMUNITY HEALTH GROUP'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 COMMUNITY HEALTH GROUP 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 COMMUNITY HEALTH GROUP. ANY ACTUAL OR POTENTIAL CONFLICTS OF INTEREST ARE REPORTED TO THE COMPANY'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 A SALARY ANALYSIS IS PREPARED BY AN UNRELATED THIRD-PARTY COMPENSATION CONSULTANT. AN EVALUATION COMMITTEE, CONSISTING OF THE CHAIRMAN OF THE BOARD OF DIRECTORS AND FOUR ADDITIONAL BOARD MEMBERS REVIEWS THIS ANALYSIS AND MAKES A RECOMMENDATION TO THE BOARD OF DIRECTORS REGARDING THE CHIEF EXECUTIVE OFFICER'S COMPENSATION. THE BOARD OF DIRECTORS MAKES THE FINAL DECISIONS REGARDING COMPENSATION OF THE CHIEF EXECUTIVE OFFICER OF THE ORGANIZATION. THIS ANALYSIS IS PERFORMED ANNUALLY IN DECEMBER. SALARY ANALYSES FOR ALL POSITIONS ON THE COMPANY'S EXECUTIVE MANAGEMENT TEAM (EXCEPT FOR THE CHIEF EXECUTIVE OFFICER POSITION, FOR WHICH THE PROCESS OF DETERMINING COMPENSATION IS PREVIOUSLY DESCRIBED HEREIN), AND CERTAIN OTHER MANAGERIAL POSITIONS ARE PREPARED BY AN UNRELATED THIRD-PARTY COMPENSATION CONSULTANT. RESULTS OF THESE ANALYSES ARE PRESENTED TO THE ORGANIZATION'S HUMAN RESOURCES DEPARTMENT, WHO THEN MAKES SALARY RECOMMENDATIONS TO THE CHIEF EXECUTIVE OFFICER FOR FINAL APPROVAL. THE CHIEF EXECUTIVE OFFICER MAKES THE FINAL DECISIONS REGARDING COMPENSATION OF THE PERSONS FILLING THESE POSITIONS. THE CHIEF EXECUTIVE OFFICER DOES NOT PARTICIPATE IN NOR HAVE DECISION MAKING AUTHORITY REGARDING THE COMPENSATION ARRANGEMENT BETWEEN THE ORGANIZATION AND J.A.G. CONSULTING, LLC (SINGLE-MEMBER LLC, WHERE JOSEPH A. GARCIA IS THE SOLE MANAGER), DUE TO THE FAMILY RELATIONSHIP THAT EXISTS BETWEEN THE CHIEF EXECUTIVE OFFICER (NORMA DIAZ) AND JOSEPH GARCIA, AS PREVIOUSLY DESCRIBED IN SCHEDULE O. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S CONSOLIDATED AUDITED 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: PROGRAM SERVICE EXPENSES 88,949,898. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 88,949,898. PHARMACY EXPENSES: PROGRAM SERVICE EXPENSES 12,495,554. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 12,495,554. CONSULTING EXPENSES: PROGRAM SERVICE EXPENSES 287,562. MANAGEMENT AND GENERAL EXPENSES 3,051,431. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,338,993. TEMPORARY SERVICES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 137,719. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 137,719. CHG FOUNDATION 2420 FENTON STREET SUITE 100 CHULA VISTA CA 91914 330586911 HEALTH CARE SERVICES CA 501(C)(3) LINE 10 COMMUNITY HEALTH GROUP 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 1 0 CHG FOUNDATION O 26679780 BOOK VALUE CHG FOUNDATION Q 967674071 BOOK VALUE CHG FOUNDATION R 370187185 BOOK VALUE PART V, SECTION 2, LINES 1 AND 2 COMMUNITY HEALTH GROUP 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 (PARENT), WHO 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. IN 2019, COMMUNITY HEALTH GROUP TRANSFERRED $370,187,185 OF CASH TO ITS SUBSIDIARY, CHG FOUNDATION, AS A RETURN OF FUNDS TO CHG FOUNDATION THAT COMMUNITY HEALTH GROUP WAS HOLDING ON BEHALF OF CHG FOUNDATION ON A TEMPORARY BASIS. THE FUNDS WERE BEING HELD BY COMMUNITY HEALTH GROUP ON BEHALF OF CHG FOUNDATION ON A SHORT-TERM BASIS SO THAT SUCH FUNDS COULD BE DEPOSITED IN INTEREST BEARING ACCOUNTS THAT EARNED HIGHER RATES OF RETURN THAN WHAT CHG FOUNDATION WAS ABLE TO EARN IN ITS EXISTING ACCOUNTS. COMMUNITY HEALTH GROUP HELD THESE FUNDS IN CUSTODY OF CHG FOUNDATION AND MAINTAINED A SEPARATE ACCOUNTING OF THESE FUNDS (AS WELL AS ALL INTEREST EARNED ON SUCH FUNDS) WHILE THEY WERE IN POSSESSION OF COMMUNITY HEALTH GROUP. SUCH FUNDS REMAINED IN CUSTODY OF COMMUNITY HEALTH GROUP AS OF DECEMBER 31, 2018. THESE FUNDS (WHICH INCLUDED ALL INTEREST EARNED ON SUCH FUNDS) WERE TRANSFERRED BACK TO CHG FOUNDATION IN 2019 ONCE CHG FOUNDATION ESTABLISHED INTEREST BEARING ACCOUNTS THAT EARNED RATES CONSISTENT WITH THOSE BEING EARNED BY COMMUNITY HEALTH GROUP.