2018-11-13T15:59:35-06:00 2017-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2017-01-01 570342027 CANNON MEMORIAL HOSPITAL CANN 8648784791 123 WG ACKER DRIVE PICKENS SC 29671 SHON HERRON DIRECTOR OF FINANCE 8648784791 2018-11-13 1 AMY BIBBY P00445891 8282542254 12.25.12.224 2018-11-13 14:24:48 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 3C4A73C7F70BFF54BAAC11A85090BDFB39FC8B01 2017 2019-02-21 02:37:17Z ANMED HEALTH CANNON BRANDON CLARY 123 WG ACKER DRIVE PICKENS SC 29671 29070637 0 X WWW.ANMEDHEALTHCANNON.ORG X 1950 SC PROVIDING QUALITY HEALTHCARE IN A SAFE, COMPETENT, AND COMPASSIONATE MANNER 7 3 310 35 0 0 97701 110000 30761055 28625312 43632 56845 220586 278480 31122974 29070637 0 0 0 0 11902677 12216270 0 0 0 20455494 18052916 32358171 30269186 -1235197 -1198549 9620273 8616447 9512171 9788794 108102 -1172347 X THE MISSION OF CANNON MEMORIAL HOSPITAL IS TO PROVIDE QUALITY HEALTHCARE IN A SAFE, COMPETENT, AND COMPASSIONATE MANNER. 0 0 25848203 28625312 CANNON MEMORIAL HOSPITAL OFFERS A FULL RANGE OF STATE-OF-THE-ART MEDICAL TECHNOLOGY, EQUIPMENT, AND SERVICES TO MEET THE HEALTH CARE NEEDS OF THE COMMUNITY. THE EXPANDED SERVICES OF THE HOSPITAL INCLUDE A 24-HOUR EMERGENCY DEPARTMENT, A FULL SERVICE LABORATORY, PHYSICAL AND OCCUPATIONAL THERAPY, CRITICAL CARE UNIT, SLEEP CLINIC, WELLNESS PROGRAMS FOR ADULTS, AND DIAGNOSTIC IMAGING FOR BOTH INPATIENT AND OUTPATIENT TEST INCLUDING CT SCANS. THE HOSPITAL PROVIDED 2,828 PATIENT DAYS OF CARE, 21,033 ER VISITS AND 12,934 OP VISITS DURING THE FISCAL YEAR.WE ALSO SPONSOR HEALTH FAIRS, FLU CLINICS, CPR TRAINING, FITNESS CLASSES, SUPPORT GROUPS, AND MANY OTHER COMMUNITY WELLNESS SERVICES THROUGH OUR WELLNESS CENTER LOCATED AT THE HOSPITAL. 25848203 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 309 0 1 310 1 0 0 0 0 0 0 0 0 0 0 X 7 3 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 SC X SHON HERRON 8648981136 123 WG ACKER DRIVE PICKENS SC 29671 DONALD L MARLER BOARD MEMBER 1.00 X X 0 0 0 LINDA S CASSELL BOARD MEMBER 1.00 X X 0 0 0 TIMOTHY E MORGAN BOARD MEMBER 1.00 X 0 0 0 WILLIAM MANSON CHAIRMAN 1.00 49.00 X X 0 898076 125863 GARRICK CHIDESTER BOARD MEMBER 1.00 49.00 X 0 433808 77783 CHRISTINE PEARSON SECRETARY 1.00 49.00 X X 0 479777 52184 BRAD MOCK BOARD MEMBER 1.00 49.00 X 0 429835 41970 BRANDON CLARY CEO 40.00 X 202212 0 10159 WILLIS J GRANT IV CFO 40.00 X 122009 0 41421 DONNA ANDERSON CNO 40.00 X 93508 0 14790 BYRON P MARSH PHYSICIAN 40.00 X 228471 0 0 PETER C SCHRIVER PHYSICIAN 40.00 X 208134 0 16308 ROBERT G PERSON PHYSICIAN 40.00 X 193212 0 14668 TRAVIS W DAVIS PHYSICIAN 40.00 X 187351 0 15854 CHRISTINE J LAWRENCE PHYSICIAN 40.00 X 221380 0 9328 1456277 2241496 420328 11 0 1 0 ANMED HEALTH 800 N FANT STREET ANDERSON SC 29621 MANAGEMENT SERVICES 660925 MICHAEL L DILLARD MD PO BOX 186 PICKENS SC 29671 ER PHYSICIAN 448502 JAMES CLIFTON CALDWELL MD 220 GLEN LAUREL DRIVE EASLEY SC 29642 ER PHYSICIAN 446252 YASHBIR RANA MD 261 PENICK DRIVE DUNCAN SC 29334 ER PHYSICIAN 365290 DOSHER PHYSICAL THERAPY 227 SOUTH PENDLETON ST EASLEY SC 29640 PHYSICAL THERAPY 279875 6 110000 110000 NET PATIENT SERVICE 621400 28625312 28625312 28625312 774 774 56071 0 56071 56071 56071 OTHER OPERATING REVENUE 900099 278480 278480 278480 29070637 28625312 0 335325 X 324221 259377 64844 9676210 8240989 1435221 2215839 1883463 332376 5722675 3568010 2154665 1817244 1544657 272587 445779 445779 179944 179944 1023501 1023501 BAD DEBT EXPENSE 7788509 7788509 OTHER EXPENSES 1075264 913974 161290 30269186 25848203 4420983 0 1448106 600885 1542284 1996431 270531 275499 287059 140797 27030794 21806301 5687400 5224493 384893 378342 9620273 8616447 1702364 2398391 7347589 6735102 462218 655301 9512171 9788794 X -251341 -1435305 359443 262958 108102 -1172347 9620273 8616447 X -1198549 -81900 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 245 245 0 PART II-B, LINE 1: THE ORGANIZATION IS A MEMBER OF THE SOUTH CAROLINA HOSPITAL ASSOCIATION (SCHA). THIS ORGANIZATION ROUTINELY ENGAGES IN LOBBYING EFFORTS ON BEHALF OF ITS MEMBERSHIP BODIES, AND A PORTION OF THE DUES PAID TO THIS ORGANIZATIONS IS ALLOCATED TO THOSE EFFORTS EACH YEAR. FOR 2017, DUES PAID TO THIS ORGANIZATION ALLOCATED TO LOBBYING EFFORTS WERE APPROXIMATELY $245. 923554 923554 11512102 9637052 1875050 384370 321765 62605 14152611 11847484 2305127 58157 58157 5224493 ESTIMATED THIRD PARTY PAYOR SETTLEMENTS 655301 655301 X PART X, LINE 2: THE SYSTEM, EXCEPT FOR THE HOLDING COMPANY, IS EXEMPT FROM INCOME TAX UNDER SECTION 501(A) AS AN ORGANIZATION DESCRIBED IN SECTION 501(C) (3) OF THE INTERNAL REVENUE CODE; ACCORDINGLY, THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS DO NOT REFLECT A PROVISION OR LIABILITY FOR FEDERAL OR STATE INCOME TAXES. THE HOLDING COMPANY IS SUBJECT TO FEDERAL AND STATE INCOME TAXES. THE LIABILITY METHOD IS USED IN ACCOUNTING FOR INCOME TAXES. UNDER THIS METHOD, DEFERRED TAX ASSETS AND LIABILITIES ARE DETERMINED BASED ON DIFFERENCES BETWEEN FINANCIAL REPORTING AND TAX BASES OF ASSET AND LIABILITIES AND ARE MEASURED USING THE ENACTED TAX RATES AND LAWS THAT WILL BE IN EFFECT WHEN THE DIFFERENCES ARE EXPECTED TO REVERSE. THE SYSTEM HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF DECEMBER 31, 2017. FISCAL YEARS ENDING ON OR AFTER SEPTEMBER 30, 2012 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. 1 1 1 X 1 X 1 1 1 0 1 1 1220219 811807 408412 0.01820 4159375 3542010 617365 0.02750 5379594 4353817 1025777 0.04570 101624 14249 87375 0.00390 101624 14249 87375 0.00390 5481218 4368066 1113152 0.04960 1 7788509 3894255 2785908 13024338 -10238430 X 1 1 1 1 CANNON MEMORIAL HOSPITAL 123 WG ACKER DRIVE PICKENS SC 29671 X X X CANNON MEMORIAL HOSPITAL 1 0 0 1 X X X X X X X X X 16 1 1 0 1 X HTTP://WWW.ANMEDHEALTHCANNON.ORG/ABOUT-US/COMMUNITY-HEALTH-NEEDS-ASSESSMENT X 1 16 1 HTTP://WWW.ANMEDHEALTHCANNON.ORG/ABOUT-US/COMMUNITY-HEALTH-NEEDS-ASSESSMENT 0 1 X 200.000000000000 200.000000000000 X X X X 0 1 X X X X 1 X SEE DISCLOSURE X SEE DISCLOSURE X SEE DISCLOSURE X X X X X X X 1 X 0 X X X X 1 X 0 0 CANNON MEMORIAL HOSPITAL PART V, SECTION B, LINE 5: A COMMUNITY BASED APPROACH WAS TAKEN WITH INPUT FROM LOCAL AND REGIONAL PUBLIC HEALTH PROFESSIONALS, COMMUNITY LEADERS, AND COMMUNITY BOARDS THRU THE USE OF PAPER AND ONLINE SURVEYS, COMMUNITY FORUMS AND GROUP DISCUSSIONS. CANNON MEMORIAL HOSPITAL PART V, SECTION B, LINE 6A: THE COMMUNITY HEALTH NEEDS ASSESSMENT WAS CONDUCTED IN CONJUNCTION WITH PALMETTO BAPTIST EASLEY, SC DHEC, YMCA, FIRST STEPS, GLEAMING HOUSE, PICKENS CO. HEALTH DEPT., PICKENS CO. LIBRARY SYSTEM. CANNON MEMORIAL HOSPITAL PART V, SECTION B, LINE 11: THE CHNA MATRIX IDENTIFIED HIGH PRIORITY NEEDS THAT CANNON COULD ADDRESS. ISSUES, SUCH AS LACK OF TRANSPORTATION, WERE NOT IN OUR CAPABILITIES AND ARE STILL SEEN AS SIGNIFICANT BARRIERS TO OUR POPULATION. AREAS SUCH AS CARDIOVASCULAR, DIABETES, OBESITY AND HYPERTENSION PROGRAMS COULD AND WERE ADDRESSED BY THE HOSPITAL. CANNON MEMORIAL HOSPITAL PART V, SECTION B, LINE 16J: THE ORGANIZATION INCLUDES SUMMARY LANGUAGE ON BILLING INVOICES DIRECTING PATIENTS ON WHERE THEY CAN OBTAIN ADDITIONAL INFORMATION RELATING TO FINANCIAL ASSISTANCE. PART V, SECTION B, LINE 7A & 10A: HTTP://ANMEDHEALTHCANNON.ORG/WP-CONTENT/UPLOADS/2015/06/2016-CANNON-MEMORIAL-HOSPITAL-HEALTH-NEEDS-ASSESSMENT.PDF PART V, SECTION B, LINE 16A: HTTP://ANMEDHEALTHCANNON.ORG/WP-CONTENT/UPLOADS/2010/07/ANMED-HEALTH-CANNON-FINANCIAL-ASSISTANCE-INFORMATION1.PDF PART V, SECTION B, LINE 16B: HTTP://ANMEDHEALTHCANNON.ORG/WP-CONTENT/UPLOADS/2010/07/2016-FINANCIAL-ASSISTANCE-FORM-ENGLISH.PDF FORM 990 SCHEDULE H PART V SECTION B LINE 3 THE HOSPITAL FACILITY HAS CONDUCTED TWO COMMUNITY HEALTH NEEDS ASSESSMENTS SINCE THE DATA OF ACA ENACTMENT. THE FIRST CHNA WAS CONDUCTED IN CALENDAR YEAR 2013 WITH THE SECOND CHNA BEING COMPLETED IN A THREE YEAR CYCLE OF COMPLETION IN CALENDAR YEAR 2016. PART V, SECTION B, LINE 16C: HTTP://ANMEDHEALTHCANNON.ORG/WP-CONTENT/UPLOADS/2010/07/ANMED-HEALTH-CANNON-FINANCIAL-ASSISTANCE-INFORMATION1.PDF 5 1 - CANNON ORTHOPEDIC 123 WG ACKER DRIVE PICKENS SC 29671 ORTHOPEDIC PRACTICE 2 - CANNON SURGICAL 123 WG ACKER DRIVE PICKENS SC 29671 GENERAL SURGERY PRACTICE 3 - CANNON FAMILY PRACTICE - EASTSIDE 111 WEST ROPER ROAD PICKENS SC 29640 RURAL HEALTH CLINIC 4 - CANNON FAMILY PRACTICE - PICKENS 123 WG ACKER DRIVE PICKENS SC 29671 FAMILY PRACTICE 5 - CANNON FAMILY PRACTICE - LIBERTY 105 LIBERTY BOULEVARD PICKENS SC 29657 FAMILY PRACTICE PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 7,788,509. PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOTNOTE ON BAD DEBT.WORKSHEET TWO OF THE 2009 SCHEDULE H INSTRUCTIONS WAS USED TO CALCULATE A COST-TO-CHARGES RATIO USED TO COMPUTE BAD DEBT AT COST. PART III, LINE 9B: CANNON UTILIZES AN EXTENDED BUSINESS OFFICE SERVICE THROUGH A THIRD PARTY VENDOR TO MANAGE ALL OF ITS ACTIVE SELF-PAY ACCOUNTS. CANNON RECOGNIZES TWO ASSISTANCE/CHARITY PROGRAMS FOR ITS PATIENTS. THOSE PROGRAMS ARE: 1) CANNON MEMORIAL'S UNCOMPENSATED ASSISTANCE PROGRAM AND 2) PATIENTS REFERRED BY THE SAMARITAN HEALTH CLINIC OF PICKENS COUNTY. AT THE TIME OF DETERMINATION OF ELIGIBILITY, BILLING & COLLECTION EFFORTS ARE DISCONTINUED FOR THE ELIGIBLE ACCOUNTS. CANNON PROVIDES HELP TO ALL PATIENTS WHO NEED ASSISTANCE COMPLETING THE FINANCIAL AIDE APPLICATION. PART VI, LINE 2: WE CURRENTLY USE DATA PROVIDED BY THE STATE TO ASSESS OUR COMMUNITY. THAT DATA INCLUDES INFORMATION ABOUT PATIENTS WHO USE OUR HOSPITAL, AS WELL AS PATIENTS FROM OUR SERVICE AREA WHO ACCESS HEALTHCARE AT OTHER HOSPITALS AND WHAT CHARGE CODE THAT CARE IS UNDER. THIS GIVES US AN IDEA OF THE HEALTH PROBLEMS IN OUR SERVICE AREA. PART VI, LINE 3: THE ASSISTANCE/CHARITY PROGRAM POLICIES ARE POSTED ON CANNON'S WEBSITE AND THE PATIENT IS VERBALLY INFORMED DURING THE REGISTRATION PROCESS. PART VI, LINE 4: CANNON MEMORIAL HOSPITAL SERVES GREATER PICKENS COUNTY, WITH THE PRIMARY COMMUNITY SERVED BY THE HOSPITAL CLASSIFIED AS RURAL. AS OF THE YEAR 2000, PICKENS COUNTY'S POPULATION WAS A LITTLE OVER 110,000 AND IT IS EXPECTED TO GROW BY 37,000 RESIDENTS IN THE NEXT 14 YEARS. THE MEDIUM HOUSEHOLD INCOME IS $36,214 WITH 13% OF THE COMMUNITY RESIDENTS HAVING INCOMES BELOW THE FEDERAL POVERTY GUIDELINE. PICKENS COUNTY HAS A 9% UNEMPLOYMENT RATE AND AN ESTIMATED 34.6% OF THE WORKING-AGE ADULTS (18-64) LIVING IN PICKENS COUNTY LACK HEALTH INSURANCE. THIS NUMBER REPRESENTS APPROXIMATELY 6,862 RESIDENTS. PART VI, LINE 5: THE ORGANIZATION ASSESSES THE NEEDS OF THE COMMUN ITY SERVED BY CONDUCTING A COMMUNITY HEALTH NEEDS ASSESSMENT AT LEAST ONCE EVERY THREE YEARS. AS A RESULT OF THE ASSESSMENT THE ORGANIZATION DEVELOPS A IMPLEMENTATION STRATEGY TO MEET THE NEEDS IDENTIFIED DURING THIS PROCESS. ADDITIONALLY, THE ORGANIZATION MAINTAINS AN OPEN MEDICAL STAFF ENSURING THAT THE COMMUNITY HAS ACCESS TO MEDICAL CARE THROUGH THE FACILITY. X 0 1 0 0 0 0 0 0 0 WILLIAM MANSON CHAIRMAN 0 599482 0 205967 0 92627 0 97301 0 28562 0 1023939 0 121332 GARRICK CHIDESTER BOARD MEMBER 0 301576 0 94030 0 38202 0 52009 0 25774 0 511591 0 63427 CHRISTINE PEARSON SECRETARY 0 356531 0 87841 0 35405 0 35965 0 16219 0 531961 0 15204 BRAD MOCK BOARD MEMBER 0 314611 0 52377 0 62847 0 10798 0 31172 0 471805 0 0 BRANDON CLARY CEO 202212 0 0 0 0 0 9332 0 827 0 212371 0 0 0 WILLIS J GRANT IV CFO 122009 0 0 0 0 0 24000 0 17421 0 163430 0 0 0 BYRON P MARSH PHYSICIAN 228471 0 0 0 0 0 0 0 0 0 228471 0 0 0 PETER C SCHRIVER PHYSICIAN 208134 0 0 0 0 0 0 0 16308 0 224442 0 0 0 ROBERT G PERSON PHYSICIAN 178973 0 14239 0 0 0 0 0 14668 0 207880 0 0 0 TRAVIS W DAVIS PHYSICIAN 163452 0 23899 0 0 0 0 0 15854 0 203205 0 0 0 CHRISTINE J LAWRENCE PHYSICIAN 211322 0 10058 0 0 0 0 0 9328 0 230708 0 0 0 PART I, LINE 4B THE FOLLOWING OFFICERS RECEIVED DEFERRED COMPENSATION ALLOCATIONS BY ATRIUM HEALTH, AN UNRELATED ORGANIZATION FROM A NON-QUALIFIED PLAN: WILLIAM T. MANSON - $81,101 GARRICK CHIDESTER - 36,581 CHRISTINE PEARSON - 18,415 THE COMPANY SHALL CREDIT TO THE PARTICIPANT'S LTIP ACCOUNT AN AMOUNT PROJECTED TO PROVIDE ANNUAL RETIREMENT BENEFITS EQUAL TO 50% OF THE PARTICIPANT'S FINAL FIVE-YEAR AVERAGE CASH COMPENSATION AT AGE 65. THE PROJECTION TAKES INTO ACCOUNT THAT THE TOTAL TARGETED RETIREMENT BENEFIT CONSISTS OF THE QUALIFIED DEFINED BENEFIT PENSION PLAN, 403(B) PLAN MATCHING CONTRIBUTIONS EARNED THEREON, 50% OF THE PROJECTED SOCIAL SECURITY PRIMARY RETIREMENT BENEFITS, AND BENEFITS UNDER THIS PLAN. THE COMPANY DOES NOT GUARANTEE THAT THE CREDITS WILL ACTUALLY PROVIDE THE TARGETED BENEFIT; RATHER, THE PARTICIPANT'S BENEFIT IS LIMITED TO THE AMOUNT ACCRUED IN HIS ACCOUNT. THE PARTICIPANT'S ENTITLEMENT TO THE BENEFITS DEPENDS ON THE PARTICIPANT'S FUTURE PERFORMANCE OF SUBSTANTIAL SERVICES. DURING 2017 WILLIAM MANSON CEASED PARTICIPATION IN THE PLAN OFFERED BY THE ORGANIZATION. HIS PLAN WAS REPLACED BY A CAPEX LIFE INSURANCE RETIREMENT PLAN. PART II: COMPENSATION FROM AN UNRELATED ORGANIZATION: ON OCTOBER 1, 2009, THE HOSPITAL SYSTEM ENTERED INTO A SERVICES AND AFFILIATION AGREEMENT WITH ATRIUM HEALTH. THE AGREEMENT APPOINTS ATRIUM HEALTH AS THE MANAGER OF THE HOSPITAL SYSTEM. THE FOLLOWING OFFICERS AND KEY EMPLOYEES WERE COMPENSATED ACCORDING TO THIS AGREEMENT FOR SERIVCES PROVIDED TO ANMED HEALTH, ANMED HEALTH SYSTEM, AND THE ANMED HEALTH FOUNDATION. WILLIAM T. MANSON, III - $878,371 TAXABLE, 97,301 DEFRD, 28,562 N/T GARRICK CHIDESTER - 430,413 TAXABLE, 52,009 DEFRD, 25,774 N/T CHRISTINE PEARSON - 479,777 TAXABLE, 35,965 DEFRD, 16,219 N/T THE ABOVE AMOUNTS ARE REPRESENTED IN THE TOTALS SHOWN IN PART II. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE OFFICERS OF THE BOARD AND THE CHAIRMEN OF THE STANDING COMMITTEES. THE PRESIDENT/CHIEF EXECUTIVE OFFICER SHALL BE AN EX-OFFICIO MEMBER. THE EXECUTIVE COMMITTEE SHALL HAVE THE POWER TO TRANSACT ALL REGULAR BUSINESS OF THE HOSPITAL BETWEEN THE MEETINGS OF THE BOARD OF TRUSTEES, PROVIDED THAT ANY ACTION WHICH IT MAY TAKE SHALL NOT CONFLICT WITH THE POLICIES AND EXPRESSED WISHES OF THE BOARD OF TRUSTEES OR THE CHARTER AND THAT IT SHALL REFER ALL MATTERS OF MAJOR IMPORTANCE OF THE BOARD OF TRUSTEES. THIS COMMITTEE SHALL MEET UPON THE CALL OF THE CHAIRPERSON OF THE BOARD. FORM 990, PART VI, SECTION A, LINE 3 EFFECTIVE JANUARY 1, 2014, ANMED HEALTH SYSTEM, A SOUTH CAROLINA NON-PROFIT, BECAME THE SOLE MEMBER OF CANNON MEMORIAL HOSPITAL. ANMED HEALTH PROVIDES MANAGEMENT RESPONSIBILITIES AND EMPLOYS ON A FULL-TIME BASIS A PRESIDENT AND CEO, CFO AND OTHER EXECUTIVES AS ARE DESIGNATED AND AGREED UPON BY CANNON AND ANMED HEALTH. ANMED HEALTH SYSTEM IS GRANTED THE AUTHORITY AND RESPONSIBILITY FOR MANAGEMENT OF THE HOSPITAL, SUBJECT TO GENERAL APPROVAL OF THE BOARD OF DIRECTORS OF CANNON MEMORIAL HOSPITAL. THE BOARD SHALL REVIEW AND ACT PROMPTLY ON REQUESTS FOR APPROVAL SUBMITTED TO THE BOARD BY ANMED HEALTH SYSTEM FOR CERTAIN MATTERS OUTLINED IN THE MANAGEMENT AGREEMENT, INCLUDING LARGE CAPITAL EXPENDITURES, SALE OR OTHER DISPOSAL OF HOSPITAL ASSETS, AND BORROWING OTHER THAN IN THE ORDINARY COURSE OF CONDUCT OF HOSPITAL AFFAIRS. FORM 990, PART VI, SECTION A, LINE 6 EFFECTIVE JANUARY 1, 2014, ANMED HEALTH SYSTEM, A SOUTH CAROLINA NON-PROFIT, BECAME THE SOLE MEMBER OF CANNON MEMORIAL HOSPITAL. FORM 990, PART VI, SECTION A, LINE 7A EFFECTIVE JANUARY 1, 2014, ANMED HEALTH SYSTEM, A SOUTH CAROLINA NON-PROFIT, BECAME THE SOLE MEMBER OF CANNON MEMORIAL HOSPITAL. ANMED HEALTH PROVIDES MANAGEMENT RESPONSIBILITIES AND EMPLOYS ON A FULL-TIME BASIS A PRESIDENT AND CEO, CFO AND OTHER EXECUTIVES AS ARE DESIGNATED AND AGREED UPON BY CANNON AND ANMED HEALTH SYSTEM. ANMED HEALTH SYSTEM IS GRANTED THE AUTHORITY AND RESPONSIBILITY FOR MANAGEMENT OF THE HOSPITAL, SUBJECT TO GENERAL APPROVAL OF THE BOARD OF DIRECTORS OF CANNON MEMORIAL HOSPITAL. THE BOARD SHALL REVIEW AND ACT PROMPTLY ON REQUESTS FOR APPROVAL SUBMITTED TO THE BOARD BY ANMED HEALTH SYSTEM FOR CERTAIN MATTERS OUTLINED IN THE MANAGEMENT AGREEMENT, INCLUDING LARGE CAPITAL EXPENDITURES, SALE OR OTHER DISPOSAL OF HOSPITAL ASSETS, AND BORROWING OTHER THAN IN THE ORDINARY COURSE OF CONDUCT OF HOSPITAL AFFAIRS. ANMED HEALTH SYSTEM AS THE SOLE MEMBER APPROVES APPOINTED BOARD MEMBERS OF THE FILING ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 7B ANMED HEALTH SYSTEM IS GRANTED THE AUTHORITY AND RESPONSIBILITY FOR MANAGEMENT OF THE HOSPITAL, SUBJECT TO GENERAL APPROVAL OF THE BOARD OF DIRECTORS OF CANNON MEMORIAL HOSPITAL. THE BOARD SHALL REVIEW AND ACT PROMPTLY ON REQUESTS FOR APPROVAL SUBMITTED TO THE BOARD BY ANMED HEALTH SYSTEM FOR CERTAIN MATTERS OUTLINED IN THE MANAGEMENT AGREEMENT, INCLUDING LARGE CAPITAL EXPENDITURES, SALE OR OTHER DISPOSAL OF HOSPITAL ASSETS, AND BORROWING OTHER THAN IN THE ORDINARY COURSE OF CONDUCT OF HOSPITAL AFFAIRS. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN WAS PREPARED BY AN INDEPENDENT ACCOUNTANT WITH ASSISTANCE AND OVERSIGHT BY MANAGEMENT. UPON COMPLETION, THE RETURN WAS REVIEWED BY MANAGEMENT AND PROVIDED TO ALL VOTING MEMBERS OF THE BOARD OF DIRECTORS VIA E-MAIL. A PERIOD OF TIME WAS ALLOWED FOR QUESTIONS AND COMMENTS. FORM 990, PART VI, SECTION B, LINE 12C THE ADMINISTRATION REQUIRES ALL MANAGEMENT, KEY OFFICIALS, AND BOARD MEMBERS TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ON AN ANNUAL BASIS. ANY DUALITY OF INTEREST OR POSSIBLE CONFLICT OF INTEREST ON THE PART OF ANY GOVERNING BOARD MEMBER SHALL BE DISCLOSED TO THE OTHER MEMBERS OF THE BOARD AND MADE A MATTER OF RECORD THROUGH AN ANNUAL PROCEDURE AND ALSO WHEN THE INTEREST BECOMES A MATTER OF BOARD ACTION. ANY GOVERNING BOARD MEMBER HAVING A DUALITY OF INTEREST OR POSSIBLE CONFLICT OF INTEREST ON ANY MATTER SHALL NOT VOTE OR USE PERSONAL INFLUENCE ON THE MATTER, EVEN WHERE PERMITTED BY LAW. THE MINUTES OF THE MEETING SHALL REFLECT THAT A DISCLOSURE WAS MADE, THE ABSTENTION FROM VOTING, AND THE QUORUM SITUATION. THE FOREGOING REQUIREMENTS SHALL NOT BE CONSTRUED AS PREVENTING THE GOVERNING BOARD MEMBER FROM BRIEFLY STATING A POSITION IN THE MATTER, NOR FROM ANSWERING PERTINENT QUESTIONS OF OTHER BOARD MEMBERS SINCE THE BOARD MEMBER'S KNOWLEDGE MAY BE OF GREAT ASSISTANCE. ANY NEW MEMBER OF THE BOARD WILL BE ADVISED OF THIS POLICY UPON ENTERING INTO THE DUTIES OF BOARD MEMBERSHIP. FORM 990, PART VI, SECTION B, LINE 15 A COMMITTEE OF FOUR CANNON BOARD MEMBERS KNOWN AS THE "CEO REVIEW COMMITTEE" MEETS ANNUALLY TO REVIEW THE PROGRESS OF THE CEO AGAINST GOALS DETERMINED THE PREVIOUS YEAR. THE COMMITTEE MAKES A RECOMMENDATION TO THE BOARD FOR A SALARY INCREASE AND/OR BONUS FOR THE CEO BASED UPON THAT PROGRESS. THE RECOMMENDATION IS VOTED ON BY THE FULL BOARD. THE BOARD APPROVES THE GOALS FOR THE CEO FOR THE UPCOMING YEAR IN ACCORDANCE WITH THE ORGANIZATION'S STRATEGIC GOALS. SALARY AND BONUS ARE REVIEWED AND COMPARED PERIODICALLY TO APPLICABLE COMPENSATION SURVEYS. THE CEO REVIEWS THE PROGRESS OF THE OTHER OFFICERS/KEY EMPLOYEES AGAINST THE ESTABLISHED GOALS FOR THE PRIOR YEAR AND DETERMINES THE ANNUAL SALARY INCREASE AND/OR BONUS BASED UPON THAT PROGRESS. SALARIES ARE REVIEWED AND COMPARED PERIODICALLY TO APPLICABLE COMPENSATION SURVEYS. THE CEO DETERMINES THE GOALS FOR THE UPCOMING YEAR IN ACCORDANCE WITH THE ORGANIZATION'S STRATEGIC GOALS. THE BOARD APPROVES THE ORGANIZATIONAL BUDGET WHICH INCLUDES THESE SALARY INCREASES. FORM 990, PART VI, SECTION C, LINE 18 PHOTOCOPIES OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 PHOTOCOPIES OF THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. FORM 990, PART IX, LINE 11G OTHER PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 2,257,955. MANAGEMENT AND GENERAL EXPENSES 1,923,479. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,181,434. CONTRACT SERVICES: PROGRAM SERVICE EXPENSES 1,310,055. MANAGEMENT AND GENERAL EXPENSES 231,186. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,541,241. FORM 990, PART XI, LINE 9: EQUITY TRANSFER -81,900. FORM 990, PART XII, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. CANNON MEMORIAL HOSPITAL FOUNDATION PO BOX 188 PICKENS SC 29671 570943822 SUPPORT/FUNDRAISING SC 501(C)(3) LINE 7 CANNON MEMORIAL HOSPITAL INC 1 ANMED HEALTH 800 N FANT STREET ANDERSON SC 29621 570359174 HEALTHCARE SC 501(C)(3) LINE 3 ANMED HEALTH SYSTEM 0 ANMED HEALTH SYSTEM 800 N FANT STREET ANDERSON SC 29621 570817544 FUNDRAISING/SUPPORT SC 501(C)(3) LINE 3 N/A 0 THE ANMED HEALTH FOUNDATION 800 N FANT STREET ANDERSON SC 29621 383886017 FUNDRAISING/SUPPORT SC 501(C)(3) LINE 3 ANMED HEALTH SYSTEM 0 CLEMSON HEALTH CENTER INC 895 TIGER BLVD CLEMSON SC 29631 570988736 HEALTHCARE SC 501(C)(3) LINE 3 N/A 0 ANMED HEALTH ENTERPRISES INC 800 N FANT STREET ANDERSON SC 29621 570815011 HOLDING CORPORATION SC N/A C 0 ANMED HEALTH PLAN INC 800 N FANT STREET ANDERSON SC 29621 570811053 MANAGEMENT SERVICES ORGANIZATION SC N/A C 0 ANMED HEALTH SERVICES 800 N FANT STREET ANDERSON SC 29621 570741536 HEALTHCARE SC N/A C 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0