2017-11-14T15:06:52-06:00 2016-12-31 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2016-01-01 570342027 CANNON MEMORIAL HOSPITAL CANN 8648784791 123 WG ACKER DRIVE PICKENS SC 29671 WILL GRANT CFO 8648784791 2017-11-14 1 Amy Bibby P00445891 8282542254 12.25.12.224 2017-11-14 14:43:44 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 3C4A73C7F70BFF54BAAC11A85090BDFB39FC8B01 2016 2017-02-10 21:41:12Z ANMED HEALTH CANNON BRANDON CLARY 123 WG ACKER DRIVE PICKENS SC 29671 31122974 0 X WWW.CANNONHOSPITAL.ORG X 1950 SC PROVIDING QUALITY HEALTHCARE IN A SAFE, COMPETENT, AND COMPASSIONATE MANNER 7 3 313 65 0 0 0 97701 9240506 30761055 396 43632 54631 220586 9295533 31122974 0 0 0 0 2883811 11902677 0 0 0 7072800 20455494 9956611 32358171 -661078 -1235197 11378484 9620273 9911771 9512171 1466713 108102 X THE MISSION OF CANNON MEMORIAL HOSPITAL IS TO PROVIDE QUALITY HEALTHCARE IN A SAFE, COMPETENT, AND COMPASSIONATE MANNER. 0 0 28096233 30761055 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 2,549 PATIENT DAYS OF CARE, 22,333 ER VISITS AND 13,008 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. 28096233 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 0 1 40 0 1 313 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 WILL GRANT 8648981136 123 WG ACKER DRIVE PICKENS SC 29671 X WILLIAM MANSON CHAIRMAN 1.00 49.00 X X 0 877242 202020 CHRISTINE PEARSON SECRETARY 1.00 49.00 X X 0 389549 81823 DONALD MARLER BOARD MEMBER 1.00 X X 0 0 0 LINDA CASSELL BOARD MEMBER 1.00 X X 0 0 0 TIMOTHY MORGAN BOARD MEMBER 1.00 X 0 0 0 GARRICK CHIDESTER BOARD MEMBER 1.00 49.00 X 0 444937 97911 MIKE TILLIRSON DO BOARD MEMBER (THRU JULY) 1.00 49.00 X 0 403148 73417 THOMAS KAYROUZ MD BOARD MEMBER (FROM AUG) 1.00 49.00 X 0 151993 34301 Norman Rentz CEO (THRU OCT) 40.00 X 159082 0 36184 WILL GRANT CFO 40.00 X 131791 0 23397 Donna Anderson CNO 40.00 X 95716 0 16627 BRANDON CLARY CEO (FROM NOV) 40.00 X 28251 141253 34353 Peter Schriver PHysician 40.00 X 227194 0 45639 BYRON MARSH PHysician 40.00 X 231748 0 2667 ROBERT PERSON Physician 40.00 X 202355 0 26976 JOHN RANDOLPH Physician 40.00 X 178772 0 10521 TRAVIS DAVIS Physician 40.00 X 201197 0 39261 1456106 2408122 725097 11 0 1 0 ANMED HEALTH 800 N FANT STREET ANDERSON SC 29621 MANAGEMENT SERVICES 1181974 MICHAEL L DILLARD MD PO BOX 186 PICKENS SC 29671 ER PHYSICIAN 364110 JAMES CLIFTON CALDWELL MD 220 GLEN LAUREL DRIVE EASLEY SC 29642 ER PHYSICIAN 340889 MICHAEL E DONALD MD 350 N SUMMIT DR SENECA SC 29672 ER PHYSICIAN 283092 YASHBIR RANA MD 261 PENICK DRIVE DUNCAN SC 29334 ER PHYSICIAN 267763 9 58277 39424 97701 NET PATIENT SERVICE 621400 30761055 30761055 30761055 1403 1403 42229 0 42229 42229 42229 220586 220586 220586 31122974 30761055 0 264218 X 414840 352614 62226 9248811 7861489 1387322 2239026 1903172 335854 1544563 1544563 3791270 3222579 568691 1709099 1452735 256364 433929 433929 213103 213103 1250675 1250675 BAD DEBT EXPENSE 10800067 10800067 other expenses 712788 605870 106918 32358171 28096233 4261938 0 185087 1448106 503042 2812199 1542284 316416 270531 332454 287059 26927974 21240574 6287069 5687400 427404 514813 384893 11378484 9620273 2382793 1702364 7528978 7347589 0 462218 9911771 9512171 X 1204672 -251341 262041 359443 1466713 108102 11378484 9620273 X -1235197 -123414 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 589 589 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 2016, DUES PAID TO THIS ORGANIZATION ALLOCATED TO LOBBYING EFFORTS WERE APPROXIMATELY $589. 923554 923554 11456033 9368640 2087393 384370 314334 70036 14132707 11557600 2575107 31310 31310 5687400 ESTIMATED THIRD PARTY PAYOR SETTLEMENTS 462218 462218 X 20322907 0 20322907 10800067 10800067 31122974 21558104 0 21558104 10800067 10800067 32358171 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, 2016. FISCAL YEARS ENDING ON OR AFTER SEPTEMBER 30, 2012 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES. Part XI, Line 4b - Other Adjustments: BAD DEBT EXPENSE 10,800,067. Part XII, Line 4b - Other Adjustments: BAD DEBT EXPENSE 10,800,067. 1 1 1 X 1 X 1 1 1 0 1 1 686007 1427981 0 0.00000 4695151 4415977 279174 0.01290 5381158 5843958 279174 0.01290 106965 20662 86303 0.00400 106965 20662 86303 0.00400 5488123 5864620 365477 0.01690 1 10800067 5400034 14287625 15601790 -1314165 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 WWW.CANNONHOSPITAL.ORG X 1 16 1 WWW.CANNONHOSPITAL.ORG 0 1 X 200.000000000000 X X X X 0 1 X X X 1 X SEE DISCLOSURE X SEE DISCLOSURE X SEE DISCLOSURE 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 $ 10,800,067. 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 580533 0 215364 0 81345 0 173356 0 28664 0 1079262 0 0 CHRISTINE PEARSON SECRETARY 0 345222 0 20517 0 23810 0 64311 0 17512 0 471372 0 0 GARRICK CHIDESTER BOARD MEMBER 0 294577 0 113502 0 36858 0 82665 0 15246 0 542848 0 0 MIKE TILLIRSON DO BOARD MEMBER (THRU JULY) 0 231001 0 111897 0 60250 0 62977 0 10440 0 476565 0 0 THOMAS KAYROUZ MD BOARD MEMBER (FROM AUG) 0 139977 0 0 0 12016 0 26719 0 7582 0 186294 0 0 Norman Rentz CEO (THRU OCT) 150605 0 0 0 8477 0 19533 0 16651 0 195266 0 0 0 WILL GRANT CFO 131352 0 0 0 439 0 5483 0 17914 0 155188 0 0 0 BRANDON CLARY CEO (FROM NOV) 25785 128924 2142 10710 324 1619 2403 12015 1065 18870 31719 172138 0 0 Peter Schriver PHysician 227194 0 0 0 0 0 24000 0 21639 0 272833 0 0 0 BYRON MARSH PHysician 231748 0 0 0 0 0 0 0 2667 0 234415 0 0 0 ROBERT PERSON Physician 190960 0 11395 0 0 0 5200 0 21776 0 229331 0 0 0 JOHN RANDOLPH Physician 139898 0 38874 0 0 0 0 0 10521 0 189293 0 0 0 TRAVIS DAVIS Physician 175317 0 25880 0 0 0 18000 0 21261 0 240458 0 0 0 Part I, Line 4b THE FOLLOWING OFFICERS RECEIVED DEFERRED COMPENSATION ALLOCATIONS FROM A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN PROVIDED BY ANMED HEALTH, A RELATED ORGANIZATION: WILLIAM T. MANSON - $ 270,190 THE FOLLOWING OFFICERS RECEIVED DEFERRED COMPENSATION ALLOCATIONS BY CAROLINAS HEALTHCARE SYSTEM, AN UNRELATED ORGANIZATION FROM A NON-QUALIFIED PLAN: WILLIAM T. MANSON - $ 157,456 GARRICK CHIDESTER - $ 67,273 CHRISTINE PEARSON - $ 47,368 DR. MICHAEL L. TILLIRSON - $ 51,406 THOMAS KAYROUZ - $ 25,256 THE PURPOSE OF THE SERP FOR WILLIAM T. MANSON IS TO PROVIDE SUPPLEMENTAL RETIREMENT BENEFITS TO THE PARTICIPANT TO ENCOURAGE HIS CONTINUED INTEREST IN THE SUCCESS OF THE COMPANY, AND TO PROVIDE REASONABLE RETIREMENT BENEFITS. THE PLAN COMMENCED ON MARCH 1, 2005. THE COMPANY SHALL CREDIT TO THE PARTICIPANT'S SERP 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. PART II: COMPENSATION FROM AN UNRELATED ORGANIZATION: ON OCTOBER 1, 2009, THE HOSPITAL SYSTEM ENTERED INTO A SERVICES AND AFFILIATION AGREEMENT WITH THE CHARLOTTE MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM. THE AGREEMENT APPOINTS CAROLINAS HEALTHCARE SYSTEM 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 - 859,214 TAXABLE, 173,356 DEFRD, 28,664 N/T DR. MICHAEL L. TILLIRSON - 378,008 TAXABLE, 62,977 DEFRD, 10,440 N/T GARRICK CHIDESTER - 441,893 TAXABLE, 82,665 DEFRD, 15,246 N/T CHRISTINE PEARSON - 389,549 TAXABLE, 64,311 DEFRD, 17,512 N/T THOMAS M. KAYROUZ - 151,993 TAXABLE, 26,719 DEFRD, 7,582 N/T THE ABOVE AMOUNTS ARE REPRESENTED IN THE TOTALS SHOWN IN PART II. THE REMAINDER OF THE AMOUNTS SHOWN IN PART II WERE PAID DIRECTLY BY THE RELATED ORGANIZATION. 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, A SOUTH CAROLINA NON-PROFIT, BECAME THE SOLE MEMBER OF CANNON MEMORIAL HOSPITAL. ANMED HEALTH PROVIDES MANAGEMENT RESPONSOBILITIES 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 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 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, 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, 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 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 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 AS THE SOLE MEMBER APPROVES APPOINTED BOARD MEMBERS OF THE FILING ORGANIZATIONS. Form 990, Part VI, Section A, line 7b ANMED HEALTH 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 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. PART VII SECTION A CEO BRANDON CLARY IS EMPLOYED BY ANMED HEALTH, INC. COMPENSATION PRESENTED IN COLUMNS D & F REPRESENT COMPENSATION FOR SERVICES PROVIDED TO THE FILING ORGANIZATION. ADDITIONALLY, AMOUNTS REPORTED IN COLUMN E & F INCLUDE AMOUNTS PAID BY ANMED HEALTH THAT WERE NOT ATTRIBUTED TO SERVICES PROVIDED TO THE FILING ORGANIZATION. Form 990, Part IX, line 11g OTHER PURCHASED SERVICES: Program service expenses 2,383,597. Management and general expenses 420,635. Fundraising expenses 0. Total expenses 2,804,232. CONTRACT SERVICES: Program service expenses 838,982. Management and general expenses 148,056. Fundraising expenses 0. Total expenses 987,038. Form 990, Part XI, line 9: EQUITY TRANSFER -123,414. Form 990, Part XII, Line 2c: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. Form 990, Page 1, Part I, Prior Year Column THE PRIOR YEAR COMPARATIVE INFORMATION REPRESENTS A SHORT PERIOD TAX YEAR REPRESENTING THREE MONTHS RATHER THAN A FULL YEAR OF ACTIVITY. 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 1 1 0 0 0