2019-11-14T17:19:28-06:00 2018-12-31 910189318 MOSS ADAMS LLP 10960 WILSHIRE BOULEVARD SUITE 1100 LOS ANGELES CA 90024 990 2018-01-01 953766170 COMMUNITY HEALTH GROUP COMM 6194220422 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 SCOTT CARROLL CHIEF FINANCIAL OFFICER 6194220422 2019-11-13 1 LAUREN HAVERLOCK P00545829 3104770450 2019-11-13 172.90.17.200 2019-11-13 12:52:05 PS P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 45A0DEE88EBA5BC01B2D6E064F66B43F0304238A 2018 2020-03-31 21:24:44Z NORMA DIAZ 2420 FENTON STREET NO 100 CHULA VISTA CA 91914 168056980 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 9 372 5 0 0 0 0 112253859 117965233 417416 637081 33868831 35958206 146540106 154560520 0 244315 0 0 20768168 22816462 0 0 0 109602353 125694739 130370521 148755516 16169585 5805004 85369534 501897312 70010041 480765344 15359493 21131968 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 108389626 244315 117965233 TO PROVIDE COMPREHENSIVE HEALTH CARE SERVICES UNDER CONTRACT WITH THE CENTERS FOR MEDICARE AND MEDICAID SERVICES TO MEMBERS UNDER A DUAL DEMONSTRATION MEDI-CAL/MEDICARE PLAN (MMP) OPEN TO PEOPLE ELIGIBLE FOR MEDI-CAL AND MEDICARE. 108389626 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 1 1 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 1 1949 0 1 372 1 1 1 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 ALBERT VITELA CHAIRMAN OF THE BOARD 2.00 2.00 X X 32200 0 0 CARLOS CESENA VICE CHAIRMAN OF THE BOARD 2.00 2.00 X X 25300 0 0 CARLOTA SALAS SECRETARY OF THE BOARD 2.00 2.00 X X 24300 0 0 JONATHAN BALL BOARD MEMBER 2.00 2.00 X 21625 0 0 TITO CALSADA BOARD MEMBER 2.00 2.00 X 23175 0 0 DOMENIC D'ALESSIO BOARD MEMBER 2.00 2.00 X 21681 0 0 ANITA HOLT BOARD MEMBER 2.00 2.00 X 18875 0 0 GRACE KOJIMA BOARD MEMBER 2.00 2.00 X 24225 0 0 JOSE LUIS VALDIVIA BOARD MEMBER 2.00 2.00 X 24500 0 0 NORMA DIAZ CHEIF EXECUTIVE OFFICER 20.00 20.00 X 700860 0 30303 SCOTT CARROLL CHIEF FINANCIAL OFFICER 20.00 20.00 X 329275 0 12150 JOSEPH GARCIA CHIEF OPERATING OFFICER 20.00 20.00 X 582306 0 0 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 20.00 20.00 X 347241 0 31880 EDWARD HUTT CHEIF MEDICAL OFFICER 20.00 20.00 X 295819 0 12150 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 20.00 20.00 X 257666 0 21615 IGNACIO RAMIREZ-OCHOA IHA PHYSICIAN 20.00 20.00 X 329911 0 20779 JOY EMMANUEL-COCHRANE IHA PHYSICIAN 20.00 20.00 X 263944 0 16625 ANDREW GREGOR CHIEF CORPORATE COUNSEL 20.00 20.00 X 207065 0 20321 NOREEN KOIZUMI DIRECTOR OF CORPORATE QUALITY 20.00 20.00 X 181814 0 39061 CHARLES LINO DIRECTOR OF PHARMACY 20.00 20.00 X 178795 0 30505 HEIDI ARNDT MEDICARE COMPLIANCE (FORMER CIO) 20.00 20.00 X 245414 0 17519 4135991 0 252908 42 1 1 0 MEDIMPACT HEALTHCARE SYSTEMS INC 10680 TREENA ST SAN DIEGO CA 92131 PHARMACY SERVICES 34578880 SCRIPPS HEALTH 4077 FIFTH AVENUE SAN DIEGO CA 92103 MEDICAL SERVICES 5692432 REGENTS OF THE UNIVERSITY OF CALIFORNIA 200 WEST ARBOR DRIVE SAN DIEGO CA 92103 MEDICAL SERVICES 5242487 SHARP CHULA VISTA MEDICAL CENTER 751 MEDICAL CENTER CT CHULA VISTA CA 91911 MEDICAL SERVICES 4530636 GROSSMONT HOSPITAL CORPORATION 5555 GROSSMONT CENTER DRIVE LA MESA CA 91942 MEDICAL SERVICES 3962876 118 CAL MEDICONNECT REVENUE 524114 117965233 117965233 117965233 656795 656795 13476746 13496460 -19714 -19714 -19714 ADMIN FEE FROM CHGF 900099 35901568 35901568 OTHER REVENUE 900099 56638 56638 35958206 154560520 117965233 0 36595287 X 196478 196478 47837 47837 2590194 41458 2548736 15324656 789987 14534669 852190 33149 819041 2788687 136836 2651851 1260735 66053 1194682 415068 415068 597249 597249 109023879 105513377 3510502 326990 326990 4229512 4229512 4543386 4543386 800466 800466 234904 234904 405940 405940 1372864 1372864 879995 879995 REINSURANCE EXPENSE 1564451 1564451 TAXES, LICENSES, & FEES 838807 838807 461228 461228 148755516 108389626 40365890 0 19350509 44152890 20319971 408547128 4246391 7107257 10225 0 877580 1539580 1546420 9175244 5921251 3504684 3253993 32760484 32780686 3647915 3621133 85369534 501897312 12311410 13312001 0 408246705 57698631 59206638 70010041 480765344 X 15059129 21131968 300364 0 15359493 21131968 85369534 501897312 5805004 -32529 0 X 0 1 X 1 0 0 1 X 170514 5182 165332 3967097 1692913 2274184 5037633 4223156 814477 3253993 DUE TO CHG FOUNDATION 50287562 PAYABLE TO THE STATE OF CALIFORNIA 8906620 OTHER MISCELLANEOUS LIABILITIES 12456 59206638 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. 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 SECTION 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. COMMUNITY HEALTH GROUP AND CHG FOUNDATION HAVE EVALUATED THEIR TAX POSITIONS 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 CHG'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, 2018 OR 2017. COMMUNITY HEALTH GROUP AND CHG FOUNDATION FILE INFORMATION RETURNS IN THE U.S. FEDERAL JURISDICTION AND THE STATE OF CALIFORNIA. 1 MANA DE SAN DIEGO 2515 CAMINO DEL RIO SOUTH SUITE 228 228 SAN DIEGO CA 92108 330821060 501(C)(3) 26430 GENERAL PURPOSE SAN YSIDRO HEALTH CENTER 1275 30TH STREET SAN YSIDRO CA 92154 952801772 501(C)(3) 23750 GENERAL PURPOSE NAMI SAN DIEGO 5095 MURPHY CANYON ROAD SUITE 320 SAN DIEGO CA 92123 330122462 501(C)(3) 6000 GENERAL PURPOSE MARINE TOYS FOR TOTS FOUNDATION - SAN DIEGO 9955 POMERADO ROAD SAN DIEGO CA 92131 203021444 501(C)(3) 6000 GENERAL PURPOSE VISTA COMMUNITY CLINIC 1000 VALE TERRACE DRIVE VISTA CA 92084 952815615 501(C)(3) 5500 GENERAL PURPOSE ISMAEL CALA FOUNDATION 601 BRICKELL KEY DRIVE SUITE 102 MIAMI FL 22131 473009429 501(C)(3) 5038 GENERAL PURPOSE 6 0 SCHOLARSHIPS 48 40000 GENERAL ASSISTANCE 2 7837 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, GRANT AND SCHOLARSHIPS ARE AWARDED TO INDIVIDUALS RESIDING IN SAN DIEGO COUNTY WHO ARE NOT RELATED TO THE ORGANIZATION FOR HEALTH AND EDUCATIONAL RELATED PURPOSES. X X X X 0 0 0 0 0 0 0 1 0 NORMA DIAZ CHEIF EXECUTIVE OFFICER 630405 0 0 0 70455 0 12150 0 18153 0 731163 0 0 0 SCOTT CARROLL CHIEF FINANCIAL OFFICER 304288 0 0 0 24987 0 12150 0 0 0 341425 0 0 0 JOSEPH GARCIA CHIEF OPERATING OFFICER 582306 0 0 0 0 0 0 0 0 0 582306 0 0 0 ANN WARREN ASSOCIATE CHIEF EXECUTIVE OFFICER 275871 0 0 0 71370 0 12150 0 19730 0 379121 0 0 0 EDWARD HUTT CHEIF MEDICAL OFFICER 272626 0 15300 0 7893 0 12150 0 0 0 307969 0 0 0 ALLAN SOMBILLO CHIEF INFORMATION OFFICER 246206 0 0 0 11460 0 11218 0 10397 0 279281 0 0 0 IGNACIO RAMIREZ-OCHOA IHA PHYSICIAN 72316 0 0 0 257595 0 12150 0 8629 0 350690 0 0 0 JOY EMMANUEL-COCHRANE IHA PHYSICIAN 58182 0 0 0 205762 0 0 0 16625 0 280569 0 0 0 ANDREW GREGOR CHIEF CORPORATE COUNSEL 200785 0 0 0 6280 0 8922 0 11399 0 227386 0 0 0 NOREEN KOIZUMI DIRECTOR OF CORPORATE QUALITY 177381 0 0 0 4433 0 8178 0 30883 0 220875 0 0 0 CHARLES LINO DIRECTOR OF PHARMACY 175845 0 0 0 2950 0 0 0 30505 0 209300 0 0 0 HEIDI ARNDT MEDICARE COMPLIANCE (FORMER CIO) 215461 0 0 0 29953 0 4297 0 13222 0 262933 0 0 0 PART I, LINE 7 THE ORGANIZATION PROVIDED THE FOLLOWING TYPES OF NONFIXED PAYMENTS IN 2018: VACATION CASHOUT PAYMENTS, DISCRETIONARY BONUSES AND GIFT CARDS. HEIDI ARNDT HIGHEST COMPENSATED EMPLOYEE/FORMER OFFICER EMPLOYEE HARDSHIP X 23548 10225 0 0 0 10225 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 2018 IN RELATION TO THESE DUTIES WAS $582,306. 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 73,408,223. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 73,408,223. PHARMACY EXPENSES: PROGRAM SERVICE EXPENSES 31,604,065. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 31,604,065. CONSULTING EXPENSES: PROGRAM SERVICE EXPENSES 501,089. MANAGEMENT AND GENERAL EXPENSES 2,658,029. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,159,118. TEMPORARY SERVICES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 852,473. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 852,473. 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 0 1 CHG FOUNDATION O 25926618 BOOK VALUE CHG FOUNDATION Q 903690575 BOOK VALUE CHG FOUNDATION S 385000000 BOOK VALUE PART V, SECTION 2, LINES 1 AND 2: 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, ACCOUNTING SERVICES, AND OTHER SERVICES AS DEFINED. 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 OF THE AFOREMENTIONED ADMINISTRATIVE SERVICES AGREEMENT. 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.