2018-08-13T15:24:09-05:00 2017-09-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2016-10-01 474914917 Palmetto Health Tuomey PALM 8037748616 129 NORTH WASHINGTON STREET SUMTER SC 29150 MICHELLE LOGAN-OWENS COO 8037748616 2018-08-13 1 Amy Bibby P00445891 8282542254 2018-08-13 2016 2022-09-23 18:48:47Z MICHELLE LOGAN-OWENS 129 NORTH WASHINGTON STREET SUMTER SC 29150 225526305 0 X WWW.PALMETTOHEALTH.ORG X 2015 SC PALMETTO HEALTH TUOMEY IS COMMITTED TO IMPROVING THE PHYSICAL, EMOTIONAL, AND SPIRITUAL HEALTH OF ALL INDIVIDUALS AND COMMUNITIES WE SERVE; TO PROVIDING CARE WITH EXCELLENCE AND COMPASSION; AND, TO WORKING WITH OTHERS WHO SHARE OUR FUNDAMENTAL COMMITMENT TO IMPROVING THE HUMAN CONDITION. 7 3 1890 200 0 0 0 0 169208501 221916510 38012 0 1740519 3609795 170987032 225526305 2988183 0 0 0 60565089 87687664 0 0 0 97215946 129682562 160769218 217370226 10217814 8156079 221611025 295467239 38299289 38829087 183311736 256638152 X PALMETTO HEALTH TUOMEY IS COMMITTED TO IMPROVING THE PHYSICAL, EMOTIONAL, AND SPIRITUAL HEALTH OF ALL INDIVIDUALS AND COMMUNITIES WE SERVE; TO PROVIDING CARE WITH EXCELLENCE AND COMPASSION; AND, TO WORKING WITH OTHERS WHO SHARE OUR FUNDAMENTAL COMMITMENT TO IMPROVING THE HUMAN CONDITION. 0 0 179133102 0 221610260 Palmetto Health Tuomey is a 301-bed acute care facility located in Sumter, South Carolina. Palmetto Health Tuomey was established as a nonprofit acute care hospital to advance or support the provision of the health care services for all residents of Sumter and its outlying areas. The promotion of health has been established as a charitable purpose under Internal Revenue Code (IRC) Section 501 (c)(3) Rev. Rule 69-545, 1969-2 C B 94. An open medical staff is maintained by Palmetto Health Tuomey with privileges available to all qualified physicians. Palmetto Health Tuomey operates a full-time emergency department open to anyone regardless of their ability to pay. During the year, the hospital had 61,736 adult and pediatric patient days, 1,301 births, 63,489 emergency department visits, 146,441 outpatient visits, 2,067 inpatient surgical procedures and 4,732 outpatient surgical procedures. 179133102 1 0 0 1 0 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 0 0 0 1 983 0 1890 1 0 0 0 0 0 0 0 0 0 0 X 7 3 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 SC X SHAWN PATTON 8032962135 293 GREYSTONE BLVD COLUMBIA SC 29210 JAMES E WHEELER CHAIRMAN 1.00 1.00 X X 0 20329 0 SARA B FISHER VICE CHAIRMAN 1.00 1.00 X X 0 16440 0 PAUL K DUANE SECRETARY/TREASURER 1.00 39.00 X X 0 612516 174323 CHARLES D BEAMAN JR DIRECTOR - CEO PALMETTO HEalth 1.00 39.00 X 0 1242626 43658 JOHN J SINGERLING III DIRECTOR 1.00 39.00 X 0 766737 41166 CAROLYN SWINTON MN DIRECTOR 1.00 39.00 X 0 410460 47106 JAMES JIM H HERLONG MD DIRECTOR 1.00 1.00 X 0 16440 0 MICHELLE LOGAN-OWENS CHIEF OPERATING OFFICER 40.00 X 455047 0 12823 PATRICIA LYNN LAMBERT FINANCIAL EXECUTIVE 40.00 X 230213 0 30278 GENE F DICKERSON MD PHYSICIAN 40.00 X 368323 0 32405 TERESA CARLTON NURSE EXECUTIVE 40.00 X 319032 0 43687 WILLIAM RENWICK OPERATIONS EXECUTIVE 40.00 X 216954 0 9815 JEFFREY FAW ADIMISTRATIVE DIRECTOR 40.00 X 205067 0 21044 TEXIN LI MEDICAL PHYSICIST 40.00 X 209839 0 28152 2004475 3085548 484457 52 0 1 0 MIDLANDS EMERGENCY PHYSICIANS PA 129 N WASHINGTON STREET SUMTER SC 29150 EMERGENCY MEDICAL SERVICES 7452317 REHABCARE GROUP PO BOX 502096 ST LOUIS MO 63150 MEDICAL SERVICES 1558899 MEDICAL DOCTOR ASSOCIATES INC 3495 HOLCOMB BRIDGE ROAD NORCROSS GA 30092 MEDICAL SERVICES 1330282 ADVANCED ICU CARE INC 999 EXECUTIVE PARKWAY STE 210 ST LOUIS MO 63141 MEDICAL SERVICES 1076703 CAROLINA ANESTHESIA PO BOX 896 SUMTER SC 29151 ANETHESIA SERVICES 531340 109 NET PATIENT REVENUE 621400 215963466 215963466 Disproportionate Share 900099 5646794 5646794 MEANINGFUL USE REVENUE 900099 306250 306250 221916510 1272028 0 1272028 1272028 1272028 Miscellaneous Income 900099 1325897 1325897 Cafeteria 722210 1011870 1011870 2337767 225526305 223188538 0 2337767 X 728362 364181 364181 203205 203205 68979268 59937584 9041684 29848 25832 4016 12601572 10906145 1695427 5145409 4453141 692268 24149430 9114486 15034944 10621357 4001910 6619447 1383953 460920 923033 2239975 366274 1873701 913585 352405 561180 4271911 4271911 9348781 9348781 78904 78904 Bad Debt Expense 42904378 42904378 Medical Supplies 30488157 30488157 Food 1933792 1933792 Miscellaneous Expense 1348339 1348339 217370226 179133102 38237124 0 2089408 2890007 199744 1186855 35983794 33887759 4166250 4117074 2105666 2657295 92345603 17662273 76962069 74683330 16389459 18310294 83714635 157734625 221611025 295467239 9775764 7564142 28523525 31264945 38299289 38829087 X 174407969 248107987 3420570 3054970 5483197 5475195 183311736 256638152 221611025 295467239 X 8156079 65170337 X X 0 1 X 1 0 X 0 0 0 0 0 0 0 0 1 12266 12266 0 Part II-B, Line 1: THE HOSPITAL IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION (AHA) AND THE SOUTH CAROLINA HOSPITAL ASSOCIATION (SCHA). THESE ORGANIZATIONS ENGAGE IN LOBBYING EFFORTS ON BEHALF OF THEIR MEMBERSHIP BODIES, AND EACH YEAR A PORTION OF THE DUES PAID ARE ALLOCATED TO LOBBYING EXPENDITURES. 6643809 6643809 57392451 11918338 45474113 546420 113472 432948 26260122 5453278 20806844 1502801 177185 1325616 74683330 MEMBERSHIP INTEREST IN FOUNDATION 18310294 C 18310294 Due from RELATED ORGANIZATIONS 157734625 157734625 Malpractice Insurance 913268 Post Retirement Obligation 30351677 31264945 X Part X, Line 2: THE FOOTNOTE FROM THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS READS: Palmetto Health qualifies as an organization exempt from federal and state income taxes on related income under Internal Revenue Code Section 501(c)(3). Palmetto Health has two taxable subsidiaries, Healthsource, Inc. and PPM. As of September 30, 2017, Palmetto Health has determined that it does not have any material unrecognized tax benefits or obligations nor is income tax accounting significant with respect to taxable subsidiaries. 1 1 X 1 X 1 X 1 1 1 0 1 1 11384174 6220254 5163920 0.02960 27321931 25955834 1366097 0.00780 38706105 32176088 6530017 0.03740 286088 286088 0.00160 43980389 39333931 4646458 0.02660 44266477 39333931 4932546 0.02820 82972582 71510019 11462563 0.06560 42904378 10144011 50198511 54856013 -4657502 X 1 1 PALMETTO HEALTH TUOMEY 129 NORTH WASHINGTON ST SUMTER SC 29150 X X X PALMETTO HEALTH TUOMEY 1 0 0 1 X X X X X X X X X 15 1 1 0 1 X SEE PAGE 8, PART VI X 1 15 0 1 0 1 X 200.000000000000 400.000000000000 X X X X X 1 1 X X X X 1 X SEE DISCLOSURE X SEE DISCLOSURE X SEE DISCLOSURE X X X X X 1 0 X X X 1 X 0 0 PALMETTO HEALTH TUOMEY Part V, Section B, Line 5: THE HOSPITAL FACILITY TOOK INTO ACCOUNT IMPUT FROM PERSONS WHO REPRESENT THE COMMUNITY BY CONDUCTING 52 ONE-ON-ONE INTERVIEWS AND 10 FOCUS GROUPS THAT INCLUDED NEARLY 110 PARTICIPANTS. FOCUS GROUP PARTICIPANTS WERE FROM LEXINGTON, RICHLAND AND SUMTER COUNTIES AND COMPRISED OF INDIVIDUALS LIVING IN BOTH RURAL AND URBAN AREAS. PARTICIPANTS WERE MAINLY AFRICAN AMERICAN AND CAUCASIAN, ACROSS ALL HOUSEHOLD INCOME RANGES AND DEMOGRAPHICS. PALMETTO HEALTH TUOMEY Part V, Section B, Line 6a: PALMETTO HEALTH BAPTIST, PALMETTO HEALTH RICHLAND, PALMETTO HEALTH BAPTIST PARKRIDGE, AND PALMETTO HEALTH TUOMEY CONDUCTED THE CHNA TOGETHER. PALMETTO HEALTH TUOMEY Part V, Section B, Line 7d: THE JOINT CHNA IS AVAILABLE IN THE HOSPITAL LOBBY AND ADMINISTRATION AREAS. THE CHNA CAN BE FOUND AT: https://www.palmettohealth.org/classes-events/community-outreach/community-health-initiatives/community-health-needs-assessment PALMETTO HEALTH TUOMEY Part V, Section B, Line 11: PALMETTO HEALTH TUOMEY'S COMMUNITY HEALTH NEEDS ASSESSMENT IDENTIFIED SEVERAL SIGNIFICANT HEALTH NEEDS IN OUR COMMUNITY. THE MOST CONSISTENT RECURRING THEMES INCLUDED: OBESITY, DIABETES, HIGH BLOOD PRESSURE, ACCESS TO AFFORDABLE HEALTH CARE, ACCESS TO HEALTHY FOODS, SAFE NEIGHBORHOODS, LACK OF SIDEWALKS, AND CRIME.PALMETTO HEALTH TUOMEY HAS CHOSEN TO FOCUS UPON ACCESS TO CARE, OBESITY, AND HIGH BLOOD PRESSURE WITH THE FOLLOWING PROGRAMS: SMOKING CESSATION, LIVEWELL COLUMBIA, GONOODLE, AND WOMEN AT HEART. PALMETTO HEALTH TUOMEY Part V, Section B, Line 16j: ALL SELF PAY PATIENT STATEMENTS INCLUDE VERBIAGE ABOUT THE POTENTIAL FAP ELIGIBILITY AND HOW TO CONTACT A FINANCIAL COUNSELOR. PART V, LINE 7A - COMMUNITY HEALTH NEEDS ASSESSMENT WEBSITE https://www.palmettohealth.org/classes-events/community-outreach/community-health-initiatives/community-health-needs-assessment PART V, SECTION B, LINE 16A, 16B, AND 16C: https://www.palmettohealth.org/locations-directions/hospitals/palmetto-health-tuomey/financial-assistance Part I, Line 7: THE ORGANIZATION UTILIZED THE IRS WORKSHEETS TO DETERMINE THE COST TO CHARGE RATIO. 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 $ 42,904,378. Part III, Line 2: The cost of bad debt is formulated by multiplying the appropriate cost to charge ratio for each entity by the actual bad debt charges for each correlating entity reported within the audited financial statements. Part III, Line 3: The amount represents the bad debt expense for those who qualified for our charity care policy but did not provide the appropriate paperwork. Therefore, they would be classified as self pay within our financial statements. The appropriate cost to charge ratio for each entity is multiplied by the total charges for each patient. Part III, Line 4: FY2017 FINANCIALS, EXCERPT FROM NOTE 3 - NET PATIENT SERVICE REVENUE AND PATIENT ACCOUNTS RECEIVABLE.ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, PALMETTO HEALTH TUOMEY ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS AND PROVISION FOR UNCOLLECTIBLE ACCOUNTS, AS WELL AS PERFORMING A DETAIL REVIEW OF HIGH DOLLAR ACCOUNTS ON A CASE BY CASE BASIS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS.FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, PALMETTO HEALTH TUOMEY ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES BOTH AN ALLOWANCE AND A PROVISION FOR UNCOLLECTIBLE ACCOUNTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS WHICH REMAIN UNPAID, OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY).FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUTCIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR A PORTION OF THE SERVICES PROVIDED), PALMETTO HEALTH TUOMEY RECORDS A SIGNIFICANT PROVISION FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS DO NOT PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES, IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED AGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS.PALMETTO HEALTH TUOMEY'S ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS FOR SELF-PAY PATIENTS WAS 85.7% AND 89.0% OF SELF-PAY ACCOUNTS RECEIVABLE AT SEPTEMBER 30, 2017 AND 2016, RESPECTIVELY. EFFECTIVE JANUARY 1, 2014, PALMETTO HEALTH TUOMEY CHANGED ITS POLICY OF CHARITY CARE AND UNINSURED DISCOUNT POLICIES TO ALIGN WITH NEW REQUIREMENTS OF THE AFFORDABLE CARE ACT. CHARITY IS NOW LIMITED PRIMARILY TO PATIENTS THAT ARE LESS THAN 100% OF FEDERAL POVERTY GUIDELINES, LIVE IN PALMETTO HEALTH TUOMEY'S PRIMARY SERVICE AREA (SUMTER COUNTY), AND WHO ARE NOT ELIGIBLE FOR ANY OTHER COVERAGE INCLUDING THAT OFFERED THROUGH THE HEALTH INSURANCE MARKETPLACE. SELF PAY PATIENTS NOT ELIGIBLE FOR CHARITY CARE ARE PROVIDED A 20% DISCOUNT FROM GROSS CHARGES. Part III, Line 8: The amount within Line 7 of Part 3 represents the shortfall after comparing the net revenue and cost of patients classified as Medicare who were not included within the Subsidized Health Service component. The shortfall consists of Medicare patients that incurred a loss after using data formulated within the FYE 2017 Medicare cost report. ($4.7 million) Part VI, Line 3: PALMETTO HEALTH TUOMEY STRIVES TO IMPROVE THE WELL BEING OF THE COMMUNITIES IT SERVES. QUALITY SERVICES ARE MADE AVAILABLE TO ALL MEMBERS OF THE COMMUNITY REGARDLESS OF AN ABILITY TO PAY. PALMETTO HEALTH TUOMEY WILL WORK WITH UNDERINSURED PATIENTS TO SEEK FINANCIAL ASSISTANCE OR PORTENTIAL GOVERNMENT BENEFITS.PATIENTS ARE EDUCATED ABOUT THEIR ELIGIBILITY FOR ASSISTANCE UNDER FEDERAL, STATE, OR LOCAL GOVERNMENT PROGRAMS OR UNDER PALMETTO HEALTH TUOMEY'S FINANCIAL ASSISTANCE POLICY(FAP). DURING PRE-REGISTRATION AND REGISTRATION, PATIENTS CAN BE INTERVIEWED BY A FINANCIAL COUNSELOR TO DETERMINE WHETHER THE PATIENT HAS A NEED FOR FINANCIAL ASSISTANCE OR POTENTIAL ELIGIBILITY UNDER GOVERNMENT PROGRAMS. FINANCIAL COUNSELING STAFF REVIEW THE FINANCIAL STATUS OF THE PATIENT TO DETERMINE WHICH PROGRAM(S) THE PATIENT MAY BE ELIGIBLE TO PARTICIPATE. IF IT IS DEEMED THAT A PATIENT MAY BE ELIGIBLE FOR A STATE GOVERNMENT PROGRAM, I.E. MEDICAID, ASSISTANCE WILL BE PROVIDED WITH THE APPLICATION PROCESS IF THERE IS A NEED. PALMETTO HEALTH TUOMEY'S WEBSITE, WWW.PALMETTOHEALTH.ORG, STATES PALMETTO HEALTH TUOMEY WILL WORK WITH UNINSURED PATIENTS TO SEEK FINANCIAL ASSISTANCE OR GOVERNMENT BENEFITS. POST DISCHARGE, PATIENTS EXPRESSING ISSUES WITH BEING UNABLE TO PAY THEIR BILL WILL BE DIRECTED TO FINANCIAL COUNSELORS TO ASSIST IN EDUCATING THE PATIENTS ABOUT THE FINANCIAL ASSISTANCE POLICY(FAP) AND OTHER OPPORTUNITIES FOR PAYMENT ASSISTANCE. Part VI, Line 4: The primary service area (PSA) for Palmetto Health Tuomey consists of Sumter County. There are approximately 107,225 residents who live within the PSA. The median household income of the constituents in Sumter County is $40,753. The unemployment rate for Sumter County is 5.9%. The secondary service area (SSA) for Palmetto Health Tuomey consists of Clarendon, and Lee Counties. There are approximately 50,902 residents who live within the SSA. The median household income for Clarendon County is $32,977 and Lee County is $34,004. The unemployment rate for the secondary market in Clarendon County is 6.6% and Lee County is 6.7%. Part VI, Line 7, Reports Filed With States SC X X X X X 0 1 0 0 0 0 0 0 0 PAUL K DUANE SECRETARY/TREASURER 0 496901 0 106288 0 9327 0 145320 0 29003 0 786839 0 0 CHARLES D BEAMAN JR DIRECTOR - CEO PALMETTO HEalth 0 979085 0 262536 0 1005 0 17050 0 26608 0 1286284 0 0 JOHN J SINGERLING III DIRECTOR 0 618851 0 146440 0 1446 0 12985 0 28181 0 807903 0 0 CAROLYN SWINTON MN DIRECTOR 0 302012 0 52441 0 56007 0 12985 0 34121 0 457566 0 0 MICHELLE LOGAN-OWENS CHIEF OPERATING OFFICER 295900 0 0 0 159147 0 11525 0 1298 0 467870 0 0 0 PATRICIA LYNN LAMBERT FINANCIAL EXECUTIVE 217780 0 0 0 12433 0 2948 0 27330 0 260491 0 0 0 GENE F DICKERSON MD PHYSICIAN 363949 0 0 0 4374 0 7073 0 25332 0 400728 0 0 0 TERESA CARLTON NURSE EXECUTIVE 217708 0 0 0 101324 0 10377 0 33310 0 362719 0 0 0 WILLIAM RENWICK OPERATIONS EXECUTIVE 215877 0 0 0 1077 0 8095 0 1720 0 226769 0 0 0 JEFFREY FAW ADIMISTRATIVE DIRECTOR 204360 0 0 0 707 0 7687 0 13357 0 226111 0 0 0 TEXIN LI MEDICAL PHYSICIST 209330 0 225 0 284 0 7858 0 20294 0 237991 0 0 0 Part I, Line 4b THE FOLLOWING INDIVIDUALS PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: NAME: ACCRUAL AMOUNTS: PAUL K. DUANE $134,900 PALMETTO HEALTH PROVIDES A SUPPLEMENTAL RETIREMENT BENEFIT TO SENIOR EXECUTIVES THAT IS CONTINGENT ON THEM REMAINING AT PALMETTO HEALTH UNTIL RETIREMENT. THE ACCRUAL AMOUNTS ABOVE REFLECT THE CHANGE IN THE ACTUARIAL VALUE DURING THE YEAR AND ARE IMPACTED BY VARIOUS FACTORS, INCLUDING THE AGE OF THE PARTICIPANT AND CHANGES IN INTEREST RATES. THE PARTICIPANTS BECOME ELIGIBLE TO RECEIVE BENEFIT PAYMENTS IN THE MONTH COINCIDING WITH THE LATER OF THEIR RESPECTIVE 62ND OR 65TH BIRTHDAYS, DEPENDENT UPON THE PARTICIPANT, OR 36 MONTHS OF PARTICIPATION. SPLIT-DOLLAR LIFE INSURANCE PARTICIPANTS ARE CHARLES D. BEAMAN, JR. AND JOHN J. SINGERLING. THE ORGANIZATION DEPOSITED FUNDS INTO LIFE INSURANCE POLICIES ON THE PARTICIPANT'S LIFE. DURING LIFE, AND SUBJECT TO THE POLICIES GENERATING SUFFICIENT VALUES, THE PARTICIPANT CAN BORROW FROM ONE OF THE POLICIES. THE BORROWING IS MONITORED AND LIMITED SO THE POLICIES DO NOT LAPSE. AT THE PARTICIPANT'S DEATH, THE ORGANIZATION RECOVERS ITS PREMIUMS PLUS INTEREST PLUS ADDITIONAL KEY-PERSON INSURANCE PROCEEDS. SYLVESTER OWENS FAMILY RELATIONSHIP WITH OFFICER 110007 COMPENSATED AS EMPLOYEE 0 KENYA CLANTON FAMILY RELATIONSHIP WITH OFFICER 93198 COMPENSATED AS EMPLOYEE 0 Form 990, Part VI, Section A, line 6 PALMETTO HEALTH IS THE SOLE MEMBER. Form 990, Part VI, Section A, line 7a THE SOLE MEMBER, PALMETTO HEALTH, HAS THE AUTHORITY AND PRIVILEGE TO APPROVE OR REMOVE DIRECTORS ON THE BOARD. Form 990, Part VI, Section A, line 7b THE SOLE MEMBER, PALMETTO HEALTH, IS GRANTED THE AUTHORITY AND PRIVILEGE TO: 1. APPROVE THE ADDITION OR ADMISSION OF ANY NEW MEMBERS OF THE CORPORATION AND THE DETERMINATION OF ANY CONSIDERATION OR TERMS FOR SUCH MEMBERSHIP. 2. APPROVE THE MERGER, CONSOLIDATION, SALE OR LEASE OF ALL OR SUBSTANTIALLY ALL OF THE ASSETS ON THE CORPORATION. 3. APPROVE THE DISSOLUTION OF THE CORPORATION. 4. APPROVE THE BORROWING OF MONEY BY THE CORPORATION IN EXCESS OF $500,000 FROM ANY PERSON OR ENTITY OTHER THAN THE MEMBER OR THE INCURRING OF ANY OTHER DEBT ON BEHALF OF THE CORPORATION OTHER THAN IN THE ORDINARY COURSE OF THE CORPORATION'S BUSINESS. 5. APPROVE ANY LIEN, PLEDGE, SECURITY INTEREST OR OTHER ENCUMBERANCE EXCEPT FOR THOSE SECURING DEBT ISSUED BY THE MEMBER, MECHANIC'S LIENS FOR ACCOUNTS NOT PAST DUE, AND TAX LIENTS NOT YET DUE AND PAYABLE. 6. APPROVE THE INDEMNIFICATION OF ANY OFFICER, DIRECTOR, EMPLOYEE, OR AGENT OF THE CORPORATION AS MAY BE PERMITTED PURSANT TO SECTIONS 33-31-850 THROUGH 33-31-858 OF THE ACT. 7. APPROVE OF ANY DISTRIBUTION OF ASSETS UPON LIQUIDATION OF THE CORPORATION. 8. APPROVE ANY AMENDMENT TO THE ARTICLES OF INCORPORATION OF THE CORPORATION 9. APPROVE THE AMENDMENT OR REPEAL OF THE BYLAWS. Form 990, Part VI, Section B, line 11b PALMETTO HEALTH TUOMEY'S FORM 990 WAS REVIEWED IN DETAIL BY THE DIRECTOR OF ACCOUNTING. THE FORM WAS DISCUSSED AND REVIEWED IN DETAIL BY OUTSIDE TAX ADVISORS. THE 990 WAS PROVIDED TO PALMETTO HEALTH TUOMEY'S BOARD OF DIRECTORS AND EACH MEMBER WAS ALLOWED AMPLE TIME FOR REVIEW AND TO MAKE INQUIRIES BEFORE FILING WITH THE IRS. Form 990, Part VI, Section B, line 12c EACH MEMBER OF THE BOARD OF DIRECTORS SHALL COMPLETE AN ANNUAL ACKNOWLEDGEMENT STATEMENT THAT EACH OF THEM (A) HAS RECEIVED A COPY OF THE RULES OF CONDUCT (CONFLICTS OF INTEREST POLICY), (B) HAS READ AND UNDERSTANDS THE POLICY, (C) AGREES TO COMPLY WITH THE POLICY, (D) UNDERSTANDS THAT THE POLICY APPLIES TO ALL COMMITTEES, AND (E) UNDERSTANDS THAT THE ORGANIZATION IS A CHARITABLE ORGANIZATION AND MUST CONTINUOUSLY ENGAGE PRIMARILY IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. THESE ACKNOWLEDGEMENT STATEMENTS ARE RETURED TO THE AUDIT, COMPLIANCE, AND FINANCE COMMITTEE FOR REVIEW AND FOLLOW-UP AS APPROPRIATE. THE CHAIR OF THE AUDIT COMPLIANCE AND FINANCE COMMITTEE REPORTS TO THE FULL BOARD THAT THE ABOVE-REFERENCED PROCESS HAS BEEN COMPLETED. UPON HIRE, EACH EMPLOYEE IS EDUCATED ON PALMETTO HEALTH TUOMEY'S POTENTIAL CONFLICTS OF INTEREST POLICY AND IS ASKED TO DOCUMENT ANY RELATIONSHIPS THAT MAY CREATE A POTENTIAL CONFLICT OF INTEREST ON A FORM THAT IS REVIEWED BY CORPORATE COMPLIANCE AND RETAINED IN THE EMPLOYEE'S HUMAN RESOURCES FILE. ANNUALLY, THE POLICY IS REVIEWED VIA COMPUTER-BASED TRAINING THAT IS MANDATORY FOR ALL EMPLOYEES. SITUATIONS THAT ARE BELIEVED TO BE ACTUAL CONFLICTS ARE ADDRESSED BY CORPORATE COMPLIANCE, DEPARTMENT MANAGEMENT AND SENIOR LEADERSHIP AS NECESSARY. Form 990, Part VI, Section B, line 15 Palmetto Health's executive compensation committee (the "committee"), composed of members of the board of directors who are disinterested in and independent from the persons compensated, oversees Palmetto Health's executive compensation and benefits programs. The committee annually receives a report from its independent executive compensation consultants on the executive compensation program, including third-party comparability date for functionally-similar positions at similarly-situated organizations (the "compensation review"). The salary review includes market analyses for base salaries, total cash compensation and benefits and aggregate total compensation values for the Chief Executive Officer and other positions. In support of the qualification for the rebuttable presumption of reasonableness, the committee reviews and approves the CEO's compensation as well as the CEO's recommendations for compensation paid to other positions, based on the board-approved compensation philosophy and the compensation review, and the decision is documented in meeting minutes. In addition, the committee reviews the information in the compensation review relating to aggregate total compensation paid to the other positions. Form 990, Part VI, Section C, line 19 THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS ARE PUBLISHED ANNUALLY AND QUARTERLY FINANCIAL INFORMATION INFORMATION IS AVAILABLE TO THE PUBLIC AT WWW.DACBOND.COM FORM 990, PART VI, LINE 1B PALMETTO HEALTH TUOMEY'S BOARD OF DIRECTORS DOES NOT POSSESS A MAJORITY OF INDEPENDENT DIRECTORS. PALMETTO HEALTH TUOMEY'S SOLE MEMBER IS PALMETTO HEALTH. PALMETTO HEALTH'S BOARD OF DIRECTORS MAINTAINS A MAJORITY INDEPENDENCE. 15 OUT OF 19 DIRECTORS ARE INDEPENDENT. Form 990, Part IX, line 11g Outside Contract Services: Program service expenses 8,938,858. Management and general expenses 5,726,775. Fundraising expenses 0. Total expenses 14,665,633. Professional Fees: Program service expenses 175,628. Management and general expenses 8,960,480. Fundraising expenses 0. Total expenses 9,136,108. Consulting: Program service expenses 0. Management and general expenses 347,689. Fundraising expenses 0. Total expenses 347,689. Form 990, Part XI, line 9: CHANGE IN MEMBERSHIP INTEREST FOUNDATION 2,294,437. EQUITY TRANSFER FROM PALMETTO HEALTH 62,875,900. PART XII, LINE 2C THE ORGANIZATION HAS NOT CHANGED ITS PROCESS. PALMETTO HEALTH 293 GREYSTONE BLVD COLUMBIA SC 29210 582296052 HEALTHCARE SC 501(C)(3) Line 3 N/A 0 PALMETTO HEALTH FOUNDATION 1600 MARION STREET COLUMBIA SC 29202 570725699 SUPPORTS HOSPITAL SC 501(C)(3) Line 12c, III-FI N/A 0 PALMETTO RICHLAND MEMORIAL AUXILIARY 5 RICHLAND MEDICAL PARK DRIVE COLUMBIA SC 29203 570645678 SUPPORTS HOSPITAL SC 501(C)(3) Line 12b, II N/A 0 THE TUOMEY FOUNDATION 102 N MAIN STREET SUMTER SC 29150 571041691 SUPPORTS HOSPITAL SC 501(C)(3) Line 12c, III-FI N/A 0 RADIATION ONCOLOGY 7 RICHLAND MEDICAL PARK ROAD COLUMBIA SC 29203 364542465 HEALTHCARE SC N/A RELATED 0 0 0.51000 CAROLINA HOME THERAPEUTICS 1528 UNION ROAD GASTONIA NC 28054 570880120 HEALTHCARE CA N/A RELATED 0 1 0.49000 EASLEY MRI LLC PO BOX 2129 EASLEY SC 29641 571131117 HEALTHCARE SC N/A RELATED 0 1 0.50000 HEALTHSOURCE INC 293 GREYSTONE BLVD COLUMBIA SC 29210 570938686 HEALTHCARE SC N/A C 0 PHYSICIAN PRACTICE SERVICES INC 293 GREYSTONE BLVD COLUMBIA SC 29210 571013538 INACTIVE SC N/A C 0 HOME CARE RESOURCES INC 293 GREYSTONE BLVD COLUMBIA SC 29210 570938656 INACTIVE SC N/A C 0 PREMIER PRACTICE MANAGEMENT CAROLINAS 293 GREYSTONE BLVD COLUMBIA SC 29210 364366595 HEALTHCARE SC N/A S 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0