2019-11-15T07:36:40-06:00 2018-12-31 990 2018-01-01 581466368 CAROLINA MEDICORP ENTERPRISES INC CARO 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 FRED HARGETT EVP & CFO 3367182803 2019-11-11 170.98.106.254 2019-11-11 08:47:52 ES P D33FA7F254BC09848346BBAA17B51EB9116DA51E A2315309B7343EB998963AA05290CF11231D17E5 2018 2020-03-31 21:24:44Z CARL ARMATO 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 36956333 0 X WWW.NOVANTHEALTH.ORG X 1981 NC SEE SCHEDULE O 5 4 422 8 0 0 0 0 33516040 36955416 -504 -271 909 917 33516445 36956062 1500 0 0 0 27637783 28192726 0 0 0 13732163 14751811 41371446 42944537 -7855001 -5988475 7177233 7861916 30589986 37281988 -23412753 -29420072 X SEE SCHEDULE O 0 1 39758728 36956333 CAROLINA MEDICORP ENTERPRISES, INC. (CME) IS MADE UP OF QUALITY PHYSICIANS IN A VARIETY OF PRIMARY AND SPECIALTY AREAS PROVIDING GENERAL MEDICAL AND OCCUPATIONAL MEDICINE SERVICES. CME EXISTS TO ADVANCE AND SUPPORT THE PROMOTION OF THE HEALTH OF THE INHABITANTS OF FORSYTH COUNTY, NC AND SURROUNDING AREAS THROUGH THE OPERATION OF URGENT AND OCCUPATIONAL CARE CENTERS AND THE OPERATION OF PRIMARY AND SPECIALTY PHYSICIAN PRACTICES. CME HAD 217,679 OUTPATIENT ENCOUNTERS IN 2018. 39758728 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 422 1 0 0 0 0 0 0 0 0 0 0 X 5 4 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 NC X KAREN DAUGHERTY 3367182803 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 X BARR ROBERT MD CHAIR 2.00 X X 0 0 0 ELY JOSEPH TRUSTEE 2.00 X 0 0 0 MURPHY DANIEL MD VICE CHAIR 2.00 X X 0 0 0 OLIVER PAMELA MD EVP & PRES NHMG 60.00 X X 0 486200 55975 PHIPPS JOHN MD FMR EVP & PRES NHMG 60.00 X X 0 1600969 51355 VALENTINE PEGGY SEC/TREAS 2.00 X X 0 0 0 MOORE ALICE ASST SEC 2.00 X 0 289563 35048 WALSH BETSY ASST SEC 2.00 X 0 397382 56315 CAPPS RICHARD SVP 60.00 X 0 799676 127434 GARDNER GEOFFREY SVP 60.00 X 0 664425 121147 LAMBETH MARTY VP 60.00 X 0 554226 45130 MOTEW STEPHEN SVP 60.00 X 0 867372 126435 MUELLER ANDREW SVP 60.00 X 0 859314 135408 BEAM ROBERT URGENT CARE PRACTITIONER NMG 40.00 X 407198 0 62482 CAMERON LAURIE FAMILY PRACTITIONER 40.00 X 262322 0 17979 GEMBS EDUARDO FAMILY PRACTITIONER 40.00 X 263560 0 22739 MANNING JAMES MED DIR PRIMECARE 40.00 X 353482 0 44403 TAYLOR-PARRIS JO FAMILY PRACTITIONER 40.00 X 271859 0 34192 LANGFORD KATHRYN FMR SVP 0.00 X 0 795235 105669 1558421 7314362 1041711 65 1 1 0 NOVANT HEALTH GOHEALTH URGENT CARE LLC 5555 GLENRIDGE CONNECTOR STE 700 ATLANTA GA 30342 MANAGEMENT SERVICES 716387 LABORATORY CORPORATION OF AMERICA HOLDIN PO BOX 12140 BURLINGTON NC 27216 LAB SERVICES 253335 ESCREEN INC PO BOX 654094 DALLAS TX 75265 LAB SERVICES 180447 MECKLENBURG RADIOLOGY ASSOCIATES 3623 LATROBE DRIVE CHARLOTTE NC 28211 IMAGING SERVICES 124318 4 NET PATIENT REVENUE 621111 36955366 36955366 VALUE BASED INCENTIVE 900099 50 50 36955416 271 -271 -271 -271 MISCELLANEOUS INCOME 900099 917 917 917 36956062 36956333 0 -271 22725202 22400232 324970 874531 862025 12506 3088358 3044194 44164 1504635 1483119 21516 716387 716387 2000 2000 2600520 2554213 46307 23241 23241 350379 345391 4988 502908 502908 3549799 3549799 97648 65750 31898 82207 82207 891665 891665 103118 103118 BAD DEBT 1886593 1886593 BILLING FEES 1865250 1865250 DRUGS 760341 760341 MEDICAL SUPPLIES 737292 737292 582463 548847 33616 42944537 39758728 3185809 0 65821 89134 3276852 4122318 46250 21250 5067 5067 8555946 4931799 3783243 3624147 7177233 7861916 1563128 2020761 470771 409345 28556087 34851882 30589986 37281988 X -23412753 -29420072 -23412753 -29420072 7177233 7861916 X -5988475 -18844 X 0 1 X 1 0 X 21456556 24718019 27506701 33516040 36955366 144152682 553 553 21457109 24718019 27506701 33516040 36955366 144153235 0 0 0 144153235 41823 68207 3768 909 917 115624 21498932 24786226 27510469 33516949 36956283 144268859 0.99920 0.99870 0.00000 0.00000 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME - 2014 AMOUNT: $ 41,823. 2015 AMOUNT: $ 68,207. 2016 AMOUNT: $ 3,768. 2017 AMOUNT: $ 909. 2018 AMOUNT: $ 917. 5106641 2658116 2448525 3442055 2272130 1169925 7250 1553 5697 3624147 0 DUE TO AFFILIATES 34851882 34851882 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, 2018 AND 2017. X X X X 1 1 1 1 0 0 0 0 0 0 0 OLIVER PAMELA MD EVP & PRES NHMG 0 423317 0 27905 0 34978 0 24000 0 31975 0 542175 0 7500 PHIPPS JOHN MD FMR EVP & PRES NHMG 0 475523 0 700711 0 424735 0 24000 0 27355 0 1652324 0 100650 MOORE ALICE ASST SEC 0 227977 0 51047 0 10539 0 14165 0 20883 0 324611 0 0 WALSH BETSY ASST SEC 0 264898 0 101077 0 31407 0 24000 0 32315 0 453697 0 5000 CAPPS RICHARD SVP 0 418901 0 262180 0 118595 0 90904 0 36530 0 927110 0 60000 GARDNER GEOFFREY SVP 0 395225 0 224616 0 44584 0 86492 0 34655 0 785572 0 7500 LAMBETH MARTY VP 0 315268 0 199150 0 39808 0 24000 0 21130 0 599356 0 0 MOTEW STEPHEN SVP 0 457344 0 275852 0 134176 0 95850 0 30585 0 993807 0 63750 MUELLER ANDREW SVP 0 454904 0 284128 0 120282 0 95850 0 39558 0 994722 0 65438 BEAM ROBERT URGENT CARE PRACTITIONER NMG 260330 0 17825 0 129043 0 24000 0 38482 0 469680 0 0 0 CAMERON LAURIE FAMILY PRACTITIONER 186341 0 20491 0 55490 0 6069 0 11910 0 280301 0 0 0 GEMBS EDUARDO FAMILY PRACTITIONER 205308 0 36759 0 21493 0 9168 0 13571 0 286299 0 0 0 MANNING JAMES MED DIR PRIMECARE 311919 0 23490 0 18073 0 18304 0 26100 0 397886 0 0 0 TAYLOR-PARRIS JO FAMILY PRACTITIONER 201606 0 39572 0 30681 0 11112 0 23080 0 306051 0 0 0 LANGFORD KATHRYN FMR SVP 0 407099 0 270701 0 117435 0 88154 0 17515 0 900904 0 64500 PART I, LINE 1A 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 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 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 NONQUALIFIED EQUITY-BASED CAPPS, RICHARD 52,500 LANGFORD, KATHRYN 57,000 MOTEW, STEPHEN 56,250 PHIPPS, JOHN 127,927 93,150 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 CAROLINA MEDICORP ENTERPRISES DOING BUSINESS AS NOVANT HEALTH URGENT CARE 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 28,000 EMPLOYEES WHO MAKE HEALTHCARE REMARKABLE AT OVER 640 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 FOUR MILLION PATIENTS ANNUALLY. NOVANT HEALTH IS RANKED AS ONE OF THE NATION'S TOP 25 INTEGRATED HEALTH SYSTEMS BY SK&A. IN 2018, THE NOVANT HEALTH SYSTEM REPORTED $5 BILLION IN REVENUES. GENERAL INFORMATION NOVANT HEALTH URGENT CARE OPERATES MULTIPLE CLINICS PROVIDING URGENT CARE AND OCCUPATIONAL MEDICINE SERVICES. NOVANT HEALTH URGENT CARE OFFERS EXTENDED OFFICE HOURS AND DEPENDABLE MEDICAL COVERAGE FOR UNEXPECTED HEALTH NEEDS, MINOR MEDICAL EMERGENCIES AND BASIC FAMILY MEDICINE SERVICES. EACH CLINIC PROVIDES MEDICAL CARE IN LOCAL NEIGHBORHOODS AND COMMUNITIES, COLLECTIVELY WORKING TOGETHER TO IMPROVE THE PRACTICE OF MEDICINE. 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 PATIENTS 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 OUTREACH NORTH CAROLINA FACED A MAJOR HURRICANE IN 2018 THAT CAUSED THE EVACUATION OF THOUSANDS OF PEOPLE AND THE OPENING OF LARGE SCALE EMERGENCY SHELTERS ACROSS THE STATE. ONE SUCH SHELTER, OPERATING IN WINSTON-SALEM, WAS UNABLE TO ACCOMMODATE THE MEDICAL NEEDS PRESENTED BY EVACUEES AT THE SHELTER. NOVANT HEALTH URGENT CARE STEPPED IN AND PROVIDED TRANSPORTATION TO URGENT CARE CLINIC LOCATIONS WHILE ALSO EMBEDDING MEDICAL AND NURSING PERSONNEL IN THE SHELTER TO ALLOW FOR ONSITE CARE. TO HELP PHYSICIANS AND THEIR CLINICS WITH THE CHALLENGE OF MONITORING THE MULTIPLE MEDICATIONS OF THEIR MEDICARE PATIENTS, NOVANT HEALTH DEVELOPED THE SAFEMED PROGRAM, WHICH IS USED BY NOVANT HEALTH URGENT CARE. PHARMACISTS' HELP PHYSICIANS IDENTIFY AND ASSESS MEDICATION ISSUES FOR THEIR PATIENTS, AS WELL AS WORK DIRECTLY WITH PATIENTS TO ANSWER MEDICATION QUESTIONS. SAFEMED PATIENTS ACHIEVE HIGHER RATES OF MEDICATION COMPLIANCE, FEWER DRUG MISADVENTURES, IMPROVED HEALTH OUTCOMES AND FEWER READMISSIONS TO THE HOSPITAL. NEW TECHNOLOGY & SERVICES A CONCURRENT ELECTRONIC HEALTH RECORD (EHR) INITIATIVE HAS BEEN IMPLEMENTED BY BOTH THE ACUTE AND AMBULATORY FACILITIES IN THE NOVANT HEALTH SYSTEM. CLINICIANS CAN SHARE PATIENTS' MEDICAL INFORMATION BETWEEN PHYSICIAN OFFICES, OUTPATIENT CENTERS, AND HOSPITALS. THIS SHARING OF INFORMATION IMPROVES SAFETY AND COORDINATION OF CARE AND PROMOTES CONNECTIVITY AND COMMUNICATION BETWEEN HOSPITAL CAREGIVERS, SPECIALISTS AND PRIMARY CARE PROVIDERS. EMBARKING ON THE JOURNEY TO CREATE A SHARED EHR IS THE MOST SIGNIFICANT AND IMPORTANT INVESTMENT NOVANT HEALTH HAS EVER MADE FOR ITS PATIENTS AND TEAM MEMBERS. NOVANT HEALTH HAS FORMED A JOINT VENTURE WITH GOHEALTH URGENT CARE TO IMPROVE PATIENT EXPERIENCE FOR UNPLANNED CARE. LEVERAGING MOBILE TECHNOLOGY, PATIENTS AT NOVANT HEALTH-GOHEALTH URGENT CARE FACILITIES ARE ABLE TO CHECK WAIT TIMES, VIEW NEXT AVAILABLE APPOINTMENTS AND SCHEDULE LATER TIMES THAT ARE CONVENIENT FOR THE PATIENT. ALL NOVANT HEALTH-GOHEALTH URGENT CARE CENTERS OFFER ON-SITE LABORATORY AND X-RAY SERVICES. CURRENT NOVANT HEALTH PATIENTS WILL ENJOY THE SAME INTEGRATED ELECTRONIC HEALTH RECORD, WITH FULL ACCESS TO NOVANT HEALTH'S ONLINE PORTAL, MYCHART, AS THEY DO THROUGHOUT THE NOVANT HEALTH NETWORK. NOVANT HEALTH-GOHEALTH URGENT CARE WILL ACCEPT MOST COMMERCIAL INSURANCE PLANS, AS WELL AS MEDICARE AND MEDICAID AWARDS, RECOGNITIONS & RECERTIFICATIONS NOVANT HEALTH URGENT CARE IS A PROUD MEMBER OF THE URGENT CARE ASSOCIATION OF AMERICA ("UCAOA"), FOUNDED IN 2004 BY SEVEN URGENT CARE LEADERS TO FILL A NEED IN THE PROFESSIONAL FIELD FOR AN ASSOCIATION THAT EXISTED TO ENCOURAGE AND FACILITATE THE DEVELOPMENT AND SUCCESS OF URGENT CARE CENTERS. THE ASSOCIATION SERVES AN INTERNATIONAL FIELD, JOINING TOGETHER MORE THAN 8,000 URGENT CARE CENTERS IN THE USA AND ADDITIONAL CENTERS AROUND THE WORLD. UCAOA PROVIDES EDUCATIONAL PROGRAMS IN CLINICAL CARE AND PRACTICE MANAGEMENT, SPONSORS THE FIRST URGENT CARE FELLOWSHIP, FUNDS GROUNDBREAKING INDUSTRY RESEARCH, PUBLISHES THE MONTHLY JOURNAL OF URGENT CARE MEDICINE AND MAINTAINS AN ACTIVE ONLINE FORUM FOR DAILY EXCHANGE OF BEST PRACTICES. COMMUNITY BENEFIT REPORT HTTPS://WWW.NOVANTHEALTH.ORG/HOME/ABOUT-US/COMMUNITY-INVOLVEMENT/COMMUNI TY-BENEFIT.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 $884,000,000, INCLUDING $155,000,000 IN FINANCIAL ASSISTANCE FOR 2018. 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 ONE ANOTHER AND OUR CUSTOMERS. BY ENGAGING THE STRENGTHS AND TALENTS OF EACH TEAM MEMBER, WE ENSURE A STRONG ORGANIZATION CAPABLE OF PROVIDING REMARKABLE HEALTHCARE TO OUR PATIENTS, FAMILIES AND COMMUNITIES. -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 THAT WHICH 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 WE ARE AN INCLUSIVE TEAM OF PURPOSE-DRIVEN PEOPLE INSPIRED AND UNITED BY OUR PASSION TO CARE FOR EACH OTHER, OUR PATIENTS AND OUR COMMUNITIES. 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 3 IN 2018, NOVANT HEALTH, INC. FORMED A JOINT VENTURE WITH GOHEALTH URGENT CARE TO PROVIDE THE COMMUNITY WITH IMPROVED ACCESS AND AVAILABILITY TO TREATMENT FOR UNPLANNED URGENT CARE NEEDS. FORM 990, PART VI, SECTION A, LINE 3 NOVANT HEALTH-GOHEALTH URGENT CARE, LLC ("MANAGER") WAS FORMED TO DEVELOP, OUTFIT AND MANAGE CERTAIN URGENT CARE PRACTICES OF THE FILING ORGANIZATION CAROLINA MEDICORP ENTERPRISES, INC. ("CME"). CME RETAINS OPERATIONAL CONTROL OF EXEMPT CLINICAL OPERATIONS AND THE PROVISION OF PROFESSIONAL MEDICAL SERVICES. THE MANAGER IS RESPONSIBLE FOR CERTAIN MANAGEMENT AND ADMINISTRATIVE SERVICES INCLUDING NON-CLINICAL OPERATIONAL OVERSIGHT, STRATEGIC PLANNING, UTILIZATION REVIEW AND QUALITY ASSURANCE, MARKETING AND BRANDING, FINANCIAL MANAGEMENT INCLUDING ACCOUNTING, BUDGET PREPARATION, BILLING AND COLLECTIONS, PROVIDER CONTRACTING AND CREDENTIALING, FACILITIES AND INFORMATION TECHNOLOGY MANAGEMENT, REGULATORY AND RISK MANAGEMENT, CONTRACTING/PURCHASING SERVICES, AND RECRUITMENT/PERSONNEL STAFFING SERVICES. NO CURRENT OR FORMER OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES OR HIGHEST COMPENSATED EMPLOYEES WERE COMPENSATED BY THE MANAGEMENT COMPANY DURING THE YEAR. 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). FORM 990, PART VI, SECTION A, LINE 7A FORM 990, PART VI, SECTION A, LINE 7A: ELECTION OF MEMBERS AND THEIR RIGHTS THE BOARD OF NOVANT HEALTH, INC. APPOINTS THE CAROLINA MEDICORP ENTERPRISE TRUSTEES. FORM 990, PART VI, SECTION A, LINE 7B FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS SUBJECT TO APPROVAL OF MEMBERS THE BOARD OF NOVANT HEALTH, INC. APPROVES CHANGES TO THE BYLAWS. 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 A, COLUMN B: RELATED ORGANIZATIONS THE ORGANIZATION EMPLOYS CERTAIN EXECUTIVES WHOSE ROLES ARE SUCH THAT THEY PROVIDE SERVICES TO NOT ONLY THE ORGANIZATION, BUT ALSO TO SOME OR ALL OF THE OTHER TAX-EXEMPT ORGANIZATIONS WITHIN THE HEALTHCARE SYSTEM. FOR EXAMPLE, MANY OF THESE EXECUTIVES' ROLES FOCUS ON PARTICULAR SERVICE LINES WHICH CROSS THE VARIOUS GEOGRAPHIC MARKETS OUR ORGANIZATIONS SERVE, THUS THE SERVICES PROVIDED BY THESE EXECUTIVES MAY BENEFIT AND BE RECEIVED BY MULTIPLE ORGANIZATIONS WITHIN THE SYSTEM. THE EXECUTIVES DO NOT ALLOCATE THEIR HOURS BETWEEN THE VARIOUS ORGANIZATIONS, BUT RATHER THEIR TIME SPENT ON SERVICES TO THE ORGANIZATION IS INCLUSIVE OF SERVICES TO ALL OF THE ORGANIZATIONS THEY SERVE WITHIN THE SYSTEM. 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 XI, LINE 9: MALPRACTICE INSURANCE: -18,844. 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