2017-05-15T16:41:14-05:00 2016-06-30 910189318 MOSS ADAMS LLP 101 SECOND STREET SUITE 900 SAN FRANCISCO CA 94105 990 2015-07-01 941603784 ENLOE MEDICAL CENTER ENLO 5303327300 1531 ESPLANADE CHICO CA 95926 MYRON MACHULA VP/CFO 5303327300 2017-05-15 1 RENIE BURBANK P00159653 4159561500 2015 2021-01-29 14:40:06Z MIKE WILTERMOOD 1531 ESPLANADE CHICO CA 95926 534470590 0 X WWW.ENLOE.ORG X 1965 CA THE MISSION OF ENLOE MEDICAL CENTER IS TO IMPROVE THE QUALITY OF LIFE THROUGH PATIENT-CENTERED CARE. 13 6 3137 500 0 0 120388 60101 505960001 523974626 21035099 3715978 5447109 4716585 532562597 532467290 252609 270085 0 0 237209877 261481915 0 0 0 256531335 288962785 493993821 550714785 38568776 -18247495 538208996 552511805 289085342 326665075 249123654 225846730 X SEE SCHEDULE OTHE MISSION OF ENLOE MEDICAL CENTER IS TO IMPROVE THE QUALITY OF LIFE THROUGH PATIENT-CENTERED CARE. 0 0 391874895 270085 523974626 SEE SCHEDULE OENLOE MEDICAL CENTER (EMC), A CALIFORNIA NONPROFIT BENEFIT CORPORATION IS LOCATED IN THE CITY OF CHICO (THE "CITY"), 90 MILES NORTH OF SACRAMENTO IN BUTTE COUNTY, CALIFORNIA. EMC IS EXEMPT FROM FEDERAL INCOME TAXES AS AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. EMC PROVIDES A COMPREHENSIVE ARRAY OF INPATIENT AND OUTPATIENT HEALTH CARE SERVICES TO MORE THAN 400,000 RESIDENTS OF A SIX-COUNTY REGION OF CALIFORNIA, INCLUDING GLENN AND BUTTE COUNTIES (GENERALLY REFERRED TO AS THE NORTH VALLEY). EMC PROVIDES TRAUMA AND CARDIAC SURGERY SERVICES TO PATIENTS THROUGHOUT NORTHERN CALIFORNIA. THE REGIONAL SERVICE AREA IN WHICH EMC PROVIDES SERVICE IS PRIMARILY RURAL. INDUSTRY IS DOMINATED BY AGRICULTURE, GOVERNMENT AND SERVICE ORGANIZATIONS. A DISPROPORTIONATE SHARE OF RESIDENTS (75% +/-) ARE MEDICARE/MEDICAL PATIENTS.EMC OWNS AND OPERATES A NUMBER OF FACILITIES, INCLUDING THREE INPATIENT FACILITIES: AN ACUTE CARE HOSPITAL, ENLOE MEDICAL CENTER - ESPLANADE CAMPUS (THE "HOSPITAL"); A BEHAVIORAL HEALTH FACILITY, ENLOE MEDICAL CENTER - COHASSET CAMPUS (THE "BEHAVIORAL HEALTH FACILITY"); AND A FACILITY FOR REHABILITATION SERVICES, ENLOE REHAB CENTER (THE "REHAB CENTER"). EMC IS THE LARGEST PROVIDER OF ACUTE CARE SERVICES AND SOLE PROVIDER OF COMPREHENSIVE CARDIOLOGY SERVICES IN THE REGION. INPATIENT UNITS INCLUDE MEDICAL/SURGICAL ACUTE CARE, INTENSIVE CARE, CORONARY CARE, NEURO-TRAUMA CARE, INTENSIVE CARE NURSERY, OBSTETRICS/GYNECOLOGY, PEDIATRICS, BEHAVIORAL HEALTH AND REHABILITATION. IN ADDITION TO A FULL RANGE OF INPATIENT AND OUTPATIENT ANCILLARY AND SUPPORT SERVICES, EMC PROVIDES SPECIALTY SERVICES IN CARDIAC SURGERY, STROKE, NEUROSURGERY, ORTHOPEDICS, CANCER, WOMEN'S HEALTH, AND BARIATRIC SERVICES. EMC OPERATES, AT ITS ESPLANADE CAMPUS, ONE OF ONLY TWO LEVEL II TRAUMA CENTERS IN CALIFORNIA NORTH OF SACRAMENTO, AND HOUSES THE ONLY LEVEL II NEONATAL INTENSIVE CARE UNIT IN THE REGION.EMC PROVIDES A COMPREHENSIVE SCOPE OF MEDICAL SERVICES AND PROGRAMS INCLUDING A BARIATRIC SURGICAL PROGRAM, INPATIENT BEHAVIOR HEALTH, INPATIENT AND OUTPATIENT CANCER CARE, A COMPREHENSIVE HEART PROGRAM, DIGESTIVE HEALTH, EMERGENCY SERVICES, AN AMBULANCE AND FLIGHTCARE PROGRAM, HOME CARE AND HOSPICE SERVICES, A STROKE PROGRAM AND A COMPREHENSIVE WOUND CARE CLINIC, INCLUDING HYPERBARIC OXYGEN THERAPY, ONE OF THEMOST EFFECTIVE TREATMENTS AVAILABLE FOR HARD-TO-HEAL WOUNDS AND OTHER CHRONIC CONDITIONS.THE HEART PROGRAM INCLUDES A COMPREHENSIVE SCOPE OF SERVICES INCLUDING CARDIAC DIAGNOSTICS, CARDIAC CATHETERIZATION LAB PERFORMING A RANGE OF SERVICES INCLUDING CORONARY ANGIOGRAMS, CORONARY STENTING AND ANGIOPLASTY, AND ELECTROPHYSIOLOGY SERVICES; AND CORONARY SURGERY INCLUDING CORONARY BYPASS, ENDOSCOPIC VEIN/ARTERY REMOVAL, TRANMYOCARDIAL LASER REVACULARIZATION AND VALVE REPAIR/REPLACEMENT. EMC IS DESIGNATED AS A STEMI RECEIVING CENTER FOR THE TREATMENT OF SEVERE HEART ATTACK KNOWN AS AN ST ELEVATION MYOCARDIAL INTRACTION.OUTPATIENT CANCER SERVICES ARE PROVIDED THROUGH THE ENLOE REGIONAL CANCER CENTER THAT PROVIDES BOARD-CERTIFIED ONCOLOGISTS, HEMATOLOGISTS AND RADIATION ONCOLOGISTS AND OTHER SPECIALTY TRAINED STAFF SUPPORTING MEDICAL ONCOLOGY/INFUSION THERAPY AND RADIATION ONCOLOGY.ENLOE MEDICAL CENTER IS CURRENTLY GOVERNED BY A 14-17 MEMBER BOARD OF TRUSTEES COMPRISED OF PERSONS WHO RESIDE OR MAINTAIN THEIR PRINCIPAL PLACE OF BUSINESS WITHIN THE COMMUNITIES SERVED BY THE HOSPITAL. ENLOE MEDICAL CENTER IS A NON-MEMBER CORPORATION UNDER THE CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION LAW. NEW MEMBERS OF THE BOARD ARE ELECTED BY ITS EXISTING MEMBERS IN ACCORDANCE WITH PROCEDURES SET FORTH IN THE BYLAWS OF THE ORGANIZATION. THE BYLAWS SPECIFY THAT TWO BOARD MEMBERS MUST BE PHYSICIANS AND THAT THE MEDICAL STAFF CHAIRMAN AND THE MEDICAL STAFF CHAIRMAN-ELECT SHALL SERVE AS BOARD MEMBERS EX OFFICIO WITH A VOTE. THE CHIEF EXECUTIVE OFFICER SERVES ON THE BOARD EX OFFICIO WITH A VOTE AND THE CHAIRMAN OF THE ENLOE HEALTH FOUNDATION SERVES ON THE BOARD EX OFFICIO, WITHOUT A VOTE. THE ELECTED MEMBERS OF THE BOARD SERVE STAGGERED TERMS OF THREE YEARS, FOR A MAXIMUM PERIOD OF THREE TERMS (OR NINE YEARS) PER MEMBER. 391874895 1 1 0 1 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 1 0 0 0 1 0 1 1 1 0 0 0 0 0 1 1 1 0 0 1 318 0 1 3137 1 1 1 0 0 0 0 0 0 0 0 0 X 13 6 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 0 CA X MYRON MACHULA 5303327300 1531 ESPLANADE CHICO CA 95926 ERIC F LARRABEE CHAIRMAN (THRU 12/2015) 2.00 2.00 X X 0 0 0 CAROL L HUSTON CHAIRMAN - 2016 2.00 0.00 X X 0 0 0 JACK STERLING VICE CHAIRPERSON 2.00 0.00 X X 0 0 0 CRAIG DUNCAN SECRETARY 2.00 0.00 X X 0 0 0 DENISE ADAMS TRUSTEE 2.00 0.00 X 0 0 0 CARRIE ALDEN TRUSTEE 2.00 0.00 X 0 0 0 CINDY BENNINGTON-FOOR TRUSTEE 2.00 5.00 X 0 0 0 WILLIAM CARRIERE TRUSTEE 2.00 0.00 X 0 0 0 MATTHEW D JACKSON SR TRUSTEE (THRU 12/2015) 2.00 0.00 X 0 0 0 MARK KIMMELSHUE TRUSTEE, EX-OFFICIO 2.00 2.00 X 0 0 0 THOMAS J LANDO TRUSTEE (THRU 12/2015) 2.00 2.00 X 0 0 0 JEFFREY LOBOSKY MD TRUSTEE 2.00 0.00 X 0 0 0 SEAN MAIORANO DO TRUSTEE, EX-OFFICIO 2.00 0.00 X 0 0 0 FORREST OLSON MD TRUSTEE 2.00 0.00 X 0 0 0 MARK SCHWABE MD TRUSTEE 2.00 0.00 X 0 0 0 MONROE A SPRAGUE MD TRUSTEE 2.00 0.00 X 0 0 0 MIKE WILTERMOOD CEO, DIRECTOR, EX-OFFICIO 40.00 5.00 X X 562667 0 40040 MYRON MACHULA CFO, VP OF FINANCE 40.00 5.00 X 288601 0 32290 CONNIE ROWE VP PATIENT CARE SERVICES 40.00 0.00 X 276906 0 32290 MARCIA N GALL VP MEDICAL AFFAIRS 40.00 0.00 X 260765 0 39539 CAROL LINSCHEID VP HUMAN RESOURCES 40.00 0.00 X 252531 0 22675 BRADY HAYNES VP PHYSICIAN ENTERPRISE 40.00 0.00 X 200566 0 36498 RUPESH D KANJI PHARMACIST 40.00 0.00 X 204333 0 18173 CHRIST KOKINOS PHARMACIST 40.00 0.00 X 197965 0 30988 LINDA CALBREATH ULTRASOUND TECHNOLOGIST 40.00 0.00 X 194243 0 30820 CHRISTOPHER DOLD PHARMACIST 40.00 0.00 X 195853 0 17665 CHRISTOPHER MARKING DIRECTOR, PHARMACY 40.00 0.00 X 195561 0 35608 2829991 0 336586 639 0 1 0 NORTHSTATE ANESTHESIOLOGY PARTNERS 69 SYCAMORE VALLEY ROAD CHICO CA 95973 ANESTHESIA SERVICES 10726162 CHICO EMERGENCY PHYSICIANS MEDICAL 1531 ESPLANADE CHICO CA 95926 EMERGENCY MEDICINE 9315402 CROTHALL HEALTHCARE 955 CHESTERBROOK BLVD SUITE 300 WAYNE PA 19087 ENVIRONMENTAL SERVICES 5350077 EXPRESS SCRIPTS INC 21653 NETWORK PLACE CHICAGO IL 60673 PRESCRIPTION BENEFIT PLAN PROVIDER 4997235 ENLOE SPECIALTY PHYSICIANS INC 1531 ESPLANADE CHICO CA 95926 PROFESSIONAL MEDICAL SERVICES 4624730 150 60101 60101 NET PATIENT SERVICE REVENUE 621300 523974626 523974626 523974626 3830338 3830338 1020461 495013 525448 525448 525448 500000 479552 651916 441996 -151916 37556 -114360 -114360 350855 414375 -63520 -63520 OTHER REVENUE 900099 2545737 2545737 JOINT VENTURE INCOME 900099 1094739 1094739 MEANINGFUL USE REVENUE 900099 614181 614181 4254657 532467290 523974626 0 8432563 270085 270085 2190545 2190545 177999818 152848701 25151117 10502309 8912671 1589638 55586466 46870329 8716137 15202777 12820831 2381946 348885 348885 298669 298669 199159 199159 126742 126742 828090 137463 690627 370240 2524 367716 5251750 2500878 2750872 6978657 791018 6187639 234807 221377 13430 11060257 11060257 22581834 7227008 15354826 3705833 747311 2958522 PURCHASE SERVICES 74859127 19108921 55750206 MEDICAL SUPPLIES 63705238 63622911 82327 MEDICAL FEES 63192302 63136322 55980 LOSS DEBT DEFEASEMENT 28269094 28269094 6952101 1596288 5355813 550714785 391874895 158839890 0 33345478 49922200 81877821 74779190 10500422 584666 623171 5355432 4985302 17578344 21542809 481210285 250828440 238116747 230381845 127259914 128166892 2182923 2528057 31907671 29081917 538208996 552511805 54068596 55424167 16496197 22262481 206696592 231086678 11823957 17891749 289085342 326665075 X 248518356 225111118 605298 735612 249123654 225846730 538208996 552511805 X -18247495 -2106828 -2922601 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 69249 0 0 0 69249 0 PART II-B, LINE 1: THE ORGANIZATION IS A MEMBER OF THE CALIFORNIA HOSPITAL ASSOCIATION (CHA) - CHA DIRECTS A PORTION OF THE DUES FOR DIRECT LOBBYING EXPENSES; AND THE ORGANIZATION IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION (AHA) - AHA EXPENDS A PORTION OF THE DUES SPECIFIC FOR LOBBYING PURPOSES. 13770417 13770417 71793057 45613891 26179166 205400162 59439899 145960263 174753998 142250939 32503059 15492651 3523711 11968940 230381845 BENEFIT PLAN NET ASSETS 2640179 OTHER RECEIVABLES 26308010 DUE FROM THIRD PARTIES 133728 29081917 ANNUITY PAYMENT LIABILITY 10665 CAPITAL LEASE 774657 DUE TO AFFILIATE 5328085 MALPRACTICE LIABILITY 5871000 LONG-TERM LIABILITY 521781 PENSION LIABILITY 5385561 17891749 X PART X, LINE 2: THE MEDICAL CENTER AND THE FOUNDATION HAVE BEEN RECOGNIZED AS EXEMPT FROM INCOME TAXES UNDER SECTION 501 OF THE INTERNAL REVENUE CODE AND SECTION 23701(D) OF THE CALIFORNIA REVENUE AND TAXATION CODE. HOWEVER, THE MEDICAL CENTER AND FOUNDATION ARE SUBJECT TO INCOME TAXES ON ANY NET INCOME THAT IS DERIVED FROM A TRADE OR BUSINESS REGULARLY CARRIED ON AND NOT IN FURTHERANCE OF THE PURPOSES FOR WHICH IT WAS GRANTED EXEMPTION. CHICO PHYSICIAN PRACTICE SUPPORT SERVICES COMPANY IS A FOR-PROFIT CORPORATION THAT DID NOT HAVE TAXABLE OPERATIONS WHICH WERE SIGNIFICANT TO THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS FOR 2016 AND 2015. FOR THE FISCAL YEARS ENDED JUNE 30, 2016 AND 2015, NO INCOME TAX PROVISION HAS BEEN RECORDED AS THE NET INCOME FROM ANY UNRELATED TRADE OR BUSINESS, IN THE OPINION OF MANAGEMENT, IS NOT MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS TAKEN AS A WHOLE. THE CORPORATION FILES TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. WITH A FEW EXCEPTIONS, THE CORPORATION IS NO LONGER SUBJECT TO U.S. FEDERAL EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE JUNE 30, 2013. 1 1 X 1 X 138.000000000000 1 X 450.000000000000 1 0 1 1 4875 3152140 3152140 0.00570 77012 152083161 114205782 37877379 0.06880 89509 239114595 184839021 54275574 0.09860 171396 394349896 299044803 95305093 0.17310 290366 777603 38093 739510 0.00130 5322 2823263 2823263 0.00510 137627 137627 0.00020 295688 3738493 38093 3700400 0.00660 467084 398088389 299082896 99005493 0.17970 0 19683146 15746517 154040663 191379700 -37339037 X 1 1 1 1 ENLOE MEDICAL CENTER 1531 ESPLANADE CHICO CA 95926 WWW.ENLOE.ORG 230000027 X X X ENLOE MEDICAL CENTER 1 0 0 1 X X X X X X X X X 15 1 0 1 1 X WWW.ENLOE.ORG X 1 15 1 WWW.ENLOE.ORG 0 0 1 X 138.000000000000 450.000000000000 X X X X X X 1 1 X X X 1 X WWW.ENLOE.ORG X WWW.ENLOE.ORG X WWW.ENLOE.ORG X X X X X 1 X X 1 X X X X X X 1 X 0 0 ENLOE MEDICAL CENTER PART V, SECTION B, LINE 5: FOR THE CHNA FOR FISCAL YEAR 2016, ALL FOUR BUTTE COUNTY HOSPITALS COLLABORATED, ALONG WITH THE TOGETHER WE CAN! HEALTHY LIVING IN BUTTE COUNTY PARTNERSHIP AND BUTTE COUNTY PUBLIC HEALTH DEPARTMENT. DATA FROM THE BUTTE COUNTY COMMUNITY HEALTH ASSESSMENT (CHA) WAS USED AS THE FOUNDATION FOR THE PROJECT, UPDATED TO REFLECT THE LATEST PUBLICLY AVAILABLE DATA. THE PROCESS FOR CONDUCTING THE CHA INCLUDED INPUT FROM A COMMUNITY HEALTH SURVEY, FOCUS GROUPS AND FEEDBACK COLLECTED AT COMMUNITY EVENTS USING "COMMENT WALLS" IN WHICH COMMUNITY MEMBERS WERE ASKED IF THEY THOUGHT THEY LIVED IN A HEALTHY COMMUNITY AND WHY THEY FELT THAT WAY. USING THE CHA FINDINGS AS A STARTING POINT, FOCUS DISCUSSION GROUPS WERE HELD, INVITING COMMUNITY FEEDBACK ON THE TOP HEALTH ISSUES FACING OUR REGION. THROUGHOUT THE COUNTY, 83 COMMUNITY MEMBERS PARTICIPATED IN THE DISCUSSION GROUPS, REPRESENTING A VARIETY OF HEALTH AND SERVICE AGENCIES, AS WELL AS THE COMMUNITY AT LARGE. THE BREADTH OF EXPERIENCE AND DIVERSE BACKGROUND OF PARTICIPANTS ENSURED RICH DISCUSSIONS AND INSIGHT REPRESENTING THE DIVERSE NATURE OF THE REGION. ENLOE MEDICAL CENTER PART V, SECTION B, LINE 6B: THE MOST RECENT STUDY WAS CONDUCTED DURING FISCAL YEAR 2016 BY A COLLABORATIVE TEAM OF REPRESENTATIVES FROM THE FOUR BUTTE COUNTY HOSPITALS - ENLOE MEDICAL CENTER, FEATHER RIVER HOSPITAL, ORCHARD HOSPITAL AND OROVILLE HOSPITAL - IN PARTNERSHIP WITH BUTTE COUNTY PUBLIC HEALTH DEPARTMENT, PARTNERED TO PERFORM THE ASSESSMENT. ENLOE MEDICAL CENTER PART V, SECTION B, LINE 11: AGENCIES THROUGHOUT BUTTE COUNTY HAVE BEEN WORKING OVER THE PAST FEW YEARS TO IDENTIFY EXISTING PROJECTS ALREADY ADDRESSING ADVERSE SOCIAL DETERMINANTS OF HEALTH IN OUR COMMUNITY AND BRINGING TOGETHER THOSE AGENCIES WITH SHARED GOALS TO EXTEND THEIR EFFICIENCY AND IMPACT. IT IS THE GOAL OF ENLOE MEDICAL CENTER'S COMMUNITY OUTREACH PROGRAM TO CONTINUE BUILDING ON THESE RELATIONSHIPS, RAISING AWARENESS OF AVAILABLE PROGRAMS AND SERVICES THROUGHOUT THE REGION, AS WELL AS BREAKING DOWN BARRIERS INDIVIDUALS NOW EXPERIENCE IN ACCESSING THOSE PROGRAMS/SERVICES.AS A RESULT OF THE CHNA FINDINGS, IN THE COMING YEARS, ENLOE MEDICAL CENTER WILL FOCUS ON THREE MAIN AREAS: SOCIAL DETERMINANTS OF HEALTH, CHRONIC DISEASE, AND SUBSTANCE ABUSE AND MENTAL ILLNESS. UTILIZING COMMUNITY OUTREACH EVENTS, HEALTH EDUCATION PROGRAMS AND PARTNERSHIPS WITH HEALTH AND SERVICE AGENCIES THROUGHOUT OUR REGION, ENLOE MEDICAL CENTER IS COMMITTED TO INCREASING AWARENESS AND ACCESS TO NECESSARY SUPPORT SERVICES IN ORDER TO LESSEN THE BARRIERS TO WELLNESS MEMBERS OF OUR COMMUNITY. THROUGH THE COMMUNITY INPUT SESSIONS, THERE WAS ALSO AN EXPRESSED NEED FOR EDUCATION TO EMPOWER INDIVIDUALS TO TAKE CHARGE OF THEIR OWN HEALTH AND MOVE TOWARD WELLNESS. IN RESPONSE TO THAT, OUTREACH EDUCATION EFFORTS WILL FOCUS ON THE LEADING CHRONIC DISEASES IDENTIFIED THROUGH THE CHNA, INCLUDING HEART DISEASE, ARTHRITIS, DIABETES, DEPRESSION, COPD, ALZHEIMER'S DISEASE AND CANCER. IN ADDITION, WITH NEARLY ONE-THIRD OF YOUTH AND ADULTS IN BUTTE COUNTY STRUGGLING WITH MOOD DISORDERS, SUCH AS DEPRESSION, AND ROUGHLY 20 PERCENT OF YOUTH AND ADULTS EXPERIENCING SOME KIND OF SUBSTANCE ABUSE DISORDER, COMMUNITY PARTNERSHIPS AND EDUCATION AROUND ALCOHOL, TOBACCO, ILLICIT DRUGS AND PRESCRIPTION OPIOID USE AND ABUSE WILL ALSO BE A KEY FOCUS AREA. ENLOE MEDICAL CENTER PART V, SECTION B, LINE 13B: COMMUNITY SERVICE WILL BE PROVIDED TO UNINSURED PATIENTS ON A SLIDING SCALE BASIS, USING THE CURRENT PUBLISHED FEDERAL POVERTY LEVELS (FPL) AS GUIDELINES. COMMUNITY SERVICE DISCOUNTS WILL BE GRANTED USING THE FOLLOWING CRITERIA:- IF FAMILY INCOME IS LESS THAN 138 PERCENT FPL: FREE CARE- IF FAMILY INCOME IS 139 PERCENT TO 250 PERCENT FPL: CO-PAYMENT OF $100 PER ELIGIBLE ACCOUNT, NOT TO EXCEED $250 PER CALENDAR MONTH. MAXIMUM $250 PER MONTH EXCLUDES EMERGENCY AND CARDIOLOGY PHYSICIAN AND/OR HOSPITAL-BASED PHYSICIAN SERVICE ACCOUNTS.- IF FAMILY INCOME IS 251 PERCENT TO 350 PERCENT FPL: 100 PERCENT OF MEDICARE FEE SCHEDULE.OTHER FACTORS CONSIDERED BUT ARE NOT LIMITED TO: INCOME LEVEL, ASSET LEVEL, MEDICAL INDIGENCY, INSURANCE STATUS, UNISURED DISCOUNT ELIGIBILITY, RESIDENCY, MEDICAID/MEDICARE ELIGIBILITY AND STATE REGULATIONS. PART V, SECTION B, LINE 14 ENLOE MEDICAL CENTER PROVIDES FINANCIAL ASSISTANCE TO PATIENTS AND THEIR FAMILIES BASED ON FAMILY INCOME AND MEDICAL NEEDS. THERE ARE SEVERAL FINANCIAL ASSISTANCE PROGRAMS THAT MAY BE OFFERED TO THOSE THAT MEET THE SPECIFIED CRITERIA WITHIN THE POLICY. PART I, LINE 7: COSTING METHODOLOGY UTILIZED FOR FINANCIAL ASSISTANCE AND MEANS TESTED GOVERNMENT PROGRAMS WAS A MODIFIED COST TO CHARGE RATIO. THE COSTING METHODOLOGY FOR ALL OTHER BENEFIT PROGRAMS WAS BASED ON ACTUAL COST FOR ALL PATIENT SEGMENTS. PART III, LINE 2: EMC USES A COST TO CHARGE METHODOLOGY TO REPORT THE ORGANIZATIONS BAD DEBT EXPENSE AT THE COST OF CARE. AMOUNTS CHARGED OFF AS BAD DEBT IS RECORDED AT GROSS CHARGES. A COST TO CHARGE RATIO IS APPLIED TO THE GROSS CHARGE AMOUNT WRITTEN OFF TO REPORT BAD DEBT EXPENSE AT THE COST OF PROVIDING CARE. PART III, LINE 3: BAD DEBT EXPENSE IS DETERMINED USING THE DIFFERENCE BETWEEN THE STANDARD RATES (AFTER NEGOTIATED DISCOUNTED RATES HAVE BEEN APPLIED) AND THE AMOUNTS ACTUALLY COLLECTED. THE ORGANIZATION DOES NOT HAVE A MEANS TO DETERMINE THE AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS THAT WOULD OTHERWISE BE ELIGIBLE UNDER THE ORGANIZATIONS' COMMUNITY SERVICE AND DISCOUNT POLICY (THE "POLICY"/"COMMUNITY BENEFIT"). THE POLICY REQUIRES THE PATIENT GUARANTOR TO APPLY FOR COMMUNITY BENEFIT CARE. THE DETERMINANTS FOR COMMUNITY BENEFIT CARE ARE A FUNCTION OF HOUSEHOLD INCOME AND DEPENDENTS - THE APPLICANT PROCESS REQUIRES AN INCOME DECLARATION. ABSENT THE APPLICANT PROCESS FOR COMMUNITY BENEFIT CARE IT IS DIFFICULT TO DETERMINE THE AMOUNT OF BAD DEBT THAT REASONABLY COULD BE ATTRIBUTABLE TO PATIENTS WHO WOULD LIKELY QUALIFY FOR FINANCIAL ASSISTANCE UNDER THE ORGANIZATION'S CHARITY CARE POLICY. BY DEFINITION, UNCOLLECTIBLE ACCOUNTS, ARE TYPICALLY REFLECTIVE OF AN INDIVIDUAL'S INABILITY TO MEET THEIR FINANCIAL OBLIGATIONS - THE ORGANIZATION ASSUMES THAT APPROXIMATELY 80% OF THE AMOUNT REPORTED AS BAD DEBT COULD REASONABLY BE ATTRIBUTABLE TO PATIENTS WHO WOULD LIKELY QUALIFY FOR CHARITY CARE UNDER THE ORGANIZATION'S CHARITY CARE POLICY. PART III, LINE 4: ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTIBILITY OF ACCOUNTS RECEIVABLE, THE MEDICAL CENTER ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR UNCOLLECTIBLE ACCOUNTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE MEDICAL CENTER ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR UNCOLLECTIBLE ACCOUNTS, IF NECESSARY, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYER HAD NOT YET PAID, OR FOR PAYERS 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 DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL, THE MEDICAL CENTER RECORDS A SIGNIFICANT PROVISION FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED OR PROVIDED BY POLICY) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. PART III, LINE 8: COSTING METHODOLOGY UTILIZED WAS A MODIFIED COST TO CHARGE RATIO AS APPLIED TO MEDICARE PATIENT POPULATION. CARING FOR MEDICARE PATIENTS FULFILLS A COMMUNITY NEED AND RELIEVES A GOVERNMENT BURDEN AS THESE PATIENTS TYPICALLY HAVE LOW AND/OR FIXED INCOMES. MEDICARE DOES NOT PROVIDE SUFFICIENT REIMBURSEMENT TO COVER THE COST OF PROVIDING CARE FOR THESE PATIENTS FORCING THE HOSPITAL TO USE OTHER SOURCES TO COVER THE DEFICIT. PART III, LINE 9B: COLLECTION PRACTICES ARE CONSISTENT FOR ALL PATIENTS AND COMPLY WITH APPLICABLE PROVISIONS OF CALIFORNIA LAW. ENLOE MEDICAL CENTER'S COLLECTION POLICIES OUTLINE THE TYPES OF COLLECTION EFFORTS CONTRACTED COLLECTIONS AGENCIES MAY/MAY NOT TAKE TO COLLECT ON PAST-DUE ACCOUNTS. (A) IT IS RECOGNIZED THAT AS PART OF THE CHARITY CARE AND DISCOUNT PROCESS, PATIENTS MAY BREAK THEIR PROMISE TO PAY FROM TIME TO TIME. (B) IN THESE INSTANCES, PATIENTS WITH PAST DUE CHARITY CARE OBLIGATIONS MAY BE REFERRED TO COLLECTION IN THE SAME MANNER AS ANY OTHER PATIENT WITH AN UNPAID PAST - DUE ACCOUNT. (C) HOWEVER, IN NO INSTANCE WILL ANY PATIENT RECEIVING COMMUNITY SERVICE UNDER THIS POLICY BE SUBJECT TO ABUSIVE TELEPHONE COLECTIONS PRACTICES, LIENS BEING PLACED ON THEIR PRIMARY RESIDENCE, WAGE GARNISHMENTS, OR INVOLUNATARY COURT HOLD ORDERS. (D) NON-PAYMENT WILL NOT BE REPORTED TO A CREDIT REPORTING AGENCY AT ANY TIME PRIOR TO 150 DAYS FROM INITIAL BILLING. PART VI, LINE 2: COMMUNITY NEEDS: EMC PERFORMS A COMMUNITY NEEDS ASSESSMENT EVERY THREE YEARS. THE PRIMARY PURPOSE OF CONDUCTING THE CHNA IS TO OBJECTIVELY LOOK AT THE CURRENT HEALTH NEEDS OF A COMMUNITY, AS WELL AS THE EXISTING RESOURCES AVAILABLE TO ADDRESS THOSE NEEDS, THEN PRIORITIZE THE UNMET HEALTH NEEDS AND CREATE AN ACTION PLAN TO ADDRESS THEM IN THE COMING YEARS. PART VI, LINE 3: PATIENT EDUCATION: EMC PROVIDES UNINSURED PATIENTS AND FAMILIES WITH ASSISTANCE IN ACCESSING FINANCIAL ASSISTANCE THROUGH EMC'S PATIENT FINANCIAL SERVICES DEPARTMENT. THE DEPARTMENT EMPLOYS SPECIALTY TRAINED FINANCIAL COUNSELORS THAT ASSIST PATIENTS WITH THE APPLICANT PROCESS FOR FEDERAL AND STATE PROGRAMS, INCLUDING THE STATE'S MEDICAID PROGRAM - MEDI-CAL; THE COUNTY MEDICAL SERVICES PROGRAM - A PROGRAM THAT PROVIDES HEALTH COVERAGE FOR LOW-INCOME, INDIGENT ADULTS; AND THE STATE'S HEALTHY FAMILIES PROGRAM - A LOW COST INSURANCE PROGRAM FOR CHILDERN AND TEENS, PROVIDING HEALTH, DENTAL AND VISION COVERAGE TO CHIDREN WHO DO NOT HAVE INSURANCE AND DO NOT QUALIFY FOR MEDI-CAL. THE FINANCIAL COUNSELORS ALSO ASSIST PATIENT FAMILIES WITH THE BENEFITS OR FINANCIAL ASSISTANCE AVAILABLE THROUGH EMC'S COMMUNITY SERVICE AND DISCOUNT POLICY. THE INFORMATION ON THE ELIGIBILITY FOR ASSISTANCE IS PROVIDED AT THE TIME OF REGISTRATION AND NO LATER THAN AT THE TIME OF DISCHARGE. BILLING NOTICES TO UNINSURED PATIENTS INCLUDE CONTACT INFORMATION FOR MEDI-CAL AND THE FINANCIAL COUNSELORS SUPPORTING THE COMMUNITY SERVICE AND DISCOUNT POLICY AND APPLICANT PROCESS. EMC ALSO POSTS NOTICES REGARDING THE AVAILABILITY OF THE COMMUNITY SERVICE AND DISCOUNT POLICY IN ALL PATIENT REGISTRATION AREAS, IN PATIENT HANDBOOKS AND PUBLICATIONS, AT THE FINANCIAL COUNSELOR OFFICE AND ON EMC'S WEBSITE. THE NOTICES ARE AVAILABLE IN THE LANGUAGES REPRESENTED BY ITS PATIENT POPULATION. A TOLL-FREE TELEPHONE NUMBER IS AVAILABLE TO ASSIST PERSONS WITH THE PROCESS. PART VI, LINE 4: COMMUNITY INFORMATION: EMC IS A COMMUNITY-OWNED, NOT-FOR-PROFIT, 298-BED SYSTEM, LOCATED IN CHICO, CALIFORNIA - NORTHERN CALIFORNIA; AND LOCATED APPROXIMATELY 90 MILES NORTH OF SACRAMENTO. EMC PROVIDES A COMPREHENSIVE ARRAY OF INPATIENT AND OUTPATIENT HEALTH CARE SERVICES TO NEARLY 400,000 RESIDENTS OF A SIX-COUNTY REGION OF NORTHERN CALIFORNIA. CHICO IS HOME TO APPROXIMATELY 107,000 PEOPLE; INCLUDING ROUGHLY 17,000 STUDENTS ATTENDING CALIFORNIA STATE UNIVERSITY, CHICO. EMC IS THE LARGEST MEDICAL CENTER IN THE REGION AND IS ONLY ONE OF TWO LEVEL II TRAUMA CENTERS BETWEEN SACRAMENTO AND THE OREGON BORDER. THE SIZE AS WELL AS THE EXTREME DIVERSITY OF THE SOCIO-ECONOMICS, DEMOGRAPHICS AND GEOGRAPHY WITHIN OUR SERVICE AREA REQUIRES THAT WE OFFER FULL CONTINUUM OF HEALTH SERVICES RANGING FROM PREVENTATIVE EDUCATION AND OUTPATIENT SERVICES TO ACUTE CARE, BEHAVIORAL HEALTH, INPATIENT REHABILITATION AND HOME HEALTH AND HOSPICE SERVICES. SERVING A SIX-COUNTY REGION IN NORTHERN CALIFORNIA, WE PROVIDE QUALITY, COMPASSIONATE, COST-EFFECTIVE CARE TO THE PATIENT POPULATION IT SERVES. PART VI, LINE 5: PROMOTION OF COMMUNITY HEALTH: EMC'S GOVERNING BOARD OF TRUSTEES IS COMPRISED OF PERSONS WHO RESIDE IN THE SERVICE AREA OF EMC. EMC EXTENDS MEDICAL STAFF PRIVILEDGES TO ALL QUALIFIED PHYSICIANS. THE STRATEGIC PRIORITIES OF EMC INCLUDE EMPLOYEE ENGAGEMENT, QUALITY AND PATIENT EXPERIENCE, PHYSICIAN-HOSPITAL ALIGNMENT AND FINANCIAL STEWARDSHIP. EMC'S STRATEGIC PLAN INCLUDES THE CONTINUING EFFORT TO IMPROVE THE QUALITY OF PATIENT CARE BY STRIVING TO MEET THE FUTURE HEALTH CARE NEEDS OF THE COMMUNITY AND MEETING THE STATE'S SEISMIC REQUIREMENTS. EMC RECENTLY COMPLETED AN EXPANSION PROJECT WHICH INCLUDED THE CONSTRUCTION OF A FIVE-STORY, 191,000 SQUARE FOOT PATIENT TOWER AS WELL AS NEW A SURGERY CENTER, TRAUMA CENTER, EXPANDED EMERGENCY CENTER AND PARKING STRUCTURE. EMC CONTINUES TO INVEST IN NEEDED MEDICAL TECHNOLOGY, MEDICAL EQUIPMENT AND INFORMATION SYSTEMS, ITS PEOPLE AND PHYSICIANS. PROGRAM PRIORITIES OF EMC ARE BALANCED WITH AVAILABLE RESOURCES PROVIDED FOR CURRENT OPERATIONS WHILE INSURING THE LONG-TERM FINANCIAL HEALTH OF EMC. 0 BUTTE COMMUNITY COLLEGE DISTRICT 3536 BUTTE CAMPUS DR OROVILLE CA 95965 911637174 65588 (RN) PROGRAMS HEALTH COMMUNITY FORUM PROJECT CHICO COMMUNITY SHELTER PARTNERSHIP 101 SILVER DOLLAR WAY CHICO CA 95928 680440819 501(C)(3) 20000 SUPPORT OF COMMUNITY SHELTER IN SITU FOUNDATION PO BOX 3040 CHICO CA 95927 272089114 501(C)(3) 46700 SUPPORT OF CANINE BIO-DETECTION CENTER OF EXCELLENCE DEPARTMENT OF HEALTH SERVICES PO BOX 997 SACRAMENTO CA 95899 680317191 130142 GENERAL HOSPITAL ASSISTANCE 4 0 PART I, LINE 2: THERE IS NO SPECIFIC PROCEDURE FOR MONITORING THE USE OF FUNDS. THE FUNDS ARE: (1) GIVEN DIRECTLY TO OTHER NONPROFIT ORGANIZATIONS AS UNRESTRICTED DONATIONS, OR (2) TO COVER EXPENSES THAT MEET THE FUND'S RESTRICTED PURPOSE. X X X X 0 1 0 0 0 0 0 0 0 MIKE WILTERMOOD CEO, DIRECTOR, EX-OFFICIO 454228 0 0 0 108439 0 15900 0 24140 0 602707 0 0 0 MYRON MACHULA CFO, VP OF FINANCE 285036 0 0 0 3565 0 15900 0 16390 0 320891 0 0 0 CONNIE ROWE VP PATIENT CARE SERVICES 257049 0 0 0 19857 0 15900 0 16390 0 309196 0 0 0 MARCIA N GALL VP MEDICAL AFFAIRS 240436 0 0 0 20329 0 15784 0 23755 0 300304 0 0 0 CAROL LINSCHEID VP HUMAN RESOURCES 219755 0 0 0 32776 0 15124 0 7551 0 275206 0 0 0 BRADY HAYNES VP PHYSICIAN ENTERPRISE 200305 0 0 0 261 0 12203 0 24295 0 237064 0 0 0 RUPESH D KANJI PHARMACIST 197645 0 0 0 6688 0 11862 0 6311 0 222506 0 0 0 CHRIST KOKINOS PHARMACIST 196870 0 0 0 1095 0 12098 0 18890 0 228953 0 0 0 LINDA CALBREATH ULTRASOUND TECHNOLOGIST 194064 0 0 0 179 0 11930 0 18890 0 225063 0 0 0 CHRISTOPHER DOLD PHARMACIST 189176 0 0 0 6677 0 11354 0 6311 0 213518 0 0 0 CHRISTOPHER MARKING DIRECTOR, PHARMACY 195383 0 0 0 178 0 11913 0 23695 0 231169 0 0 0 PART I, LINE 4B ENLOE MEDICAL CENTER PROVIDES FOR AN EXECUTIVE BENEFIT PLAN, PARTICIPANTS ARE PROVIDED A FIXED PERCENTAGE OF THEIR BASE SALARY USED TO PURCHASE BASIC (HEALTH, DENTAL, VISION AND OTHER BENEFITS) AND SUPPLEMENTAL BENEFITS (DISABILITY INSURANCE, LIFE INSURANCE) AND OTHER FLEXIBLE BENEFIT OPTIONS WITH THE BALANCE AVAILABLE FOR A TAX DEFERRED CONTRIBUTION IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN AS DESCRIBED IN SECTION 457(F) OF THE INTERNAL REVENUE CODE. THE FOLLOWING INDIVIDUALS RECEIVED FROM THE PLAN: MIKE WILTERMOOD - $83,860 CONNIE ROWE - $17,716 CAROL LINSCHEID - $23,436 A CA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 680164610 130795WHS 2008-08-20 69528444 REDEMPTION OF 1998 BOND 0 0 0 B CA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 680164610 130795XG7 2008-08-20 170244759 CONSTRUCTION AND EQUIPING FACILITY 1 0 0 C CA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 680164610 13080SKG8 2015-11-19 195078324 ADVANCED REFUNDING OF SERIES 2008B BOND 0 0 0 A 25785000 69528444 6819125 1009273 2211063 2008 1 0 1 1 B 425000 181950183 29975516 2329034 8376353 117598349 2012 0 0 1 1 C 195078324 9029187 1821380 3346810 0 1 1 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 C 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 B 0 1 0 0 0 0 1 NATIX FUNDING CORP 3.600000000000 0 0 1 C 0 1 0 0 0 0 0 0 1 A 1 B 1 C 1 SCHEDULE K, PART I, LINE B, COLUMN (E), PART II, LINE 3, COLUMN (B): DIFFERENCE BETWEEN THE ISSUE PRICE IN PART I (E) AND TOTAL PROCEEDS IN PART II LINE 3 IS INVESTMENT EARNINGS FROM PROCEEDS INVESTED IN A GUARANTEED INVESTMENT CONTRACT WITH NATIX FUNDING CORPORATION. MICHAEL WILTERMOOD OFFICER SPLIT-INTEREST LOAN X 3544883 3594489 0 1 1 MYRON MACHULA OFFICER SPLIT-INTEREST LOAN X 2004977 2033034 0 1 1 CONNIE ROWE KEY EMPLOYEE SPLIT-INTEREST LOAN X 1132780 1148632 0 1 1 MARCIA NELSON GALL KEY EMPLOYEE SPLIT-INTEREST LOAN X 1438072 1458196 0 1 1 CAROL LINSCHEID KEY EMPLOYEE SPLIT-INTEREST LOAN X 1281659 1299594 0 1 1 ROBERT HAYNES KEY EMPLOYEE SPLIT-INTEREST LOAN X 953139 966477 0 1 1 10500422 PATHOLOGY SCIENCES MEDICAL GROUP TRUSTEE OWNERSHIP 1046516 TRANSACTION #1 0 NORTHSTATE NEUROSURGICAL ASSOCIATES MEDICAL GROUP TRUSTEE OWNERSHIP 2435414 TRANSACTION #2 0 CHICO EMERGENCY PHYSICIAN MEDICAL GROUP INC TRUSTEE OWNERSHIP 9315402 TRANSACTION #3 0 CHICO HOSPITALIST GROUP TRUSTEE OWNERSHIP 4188825 TRANSACTION #4 0 ENLOE EAR NOSE & THROAT CLINIC TRUSTEE OWNERSHIP 351540 TRANSACTION #5 0 ENLOE WOMEN'S SERVICES CLINIC TRUSTEE OWNERSHIP 329128 TRANSACTION #6 0 CHICO HOSPITALIST GROUP TRUSTEE OWNERSHIP 41000 TRANSACTION #7 0 SCHEDULE L, PART IV, TRANSACTION #1 1. PATHOLOGY SCIENCES MEDICAL GROUP, PC: ENLOE MEDICAL CENTER (EMC) MAINTAINS A PROFESSIONAL COVERAGE AND ADMINISTRATIVE SERVICES AGREEMENT WITH PATHOLOGY SCIENCES MEDICAL GROUP, A PROFESSIONAL MEDICAL CORPORATION (CORPORATION), TO ENSURE THE AVAILABILITY OF SERVICES FOR PATIENTS OF PATHOLOGY SERVICES. FORMER TRUSTEE (2014), JAMES BOICE, MD, IS A SHAREHOLDER OF THE CORPORATION. SCHEDULE L, PART IV, TRANSACTION #2 2. NORTHSTATE NEUROSURGICAL ASSOCIATES MEDICAL GROUP: ENLOE MEDICAL CENTER (EMC) MAINTAINS A PROFESSIONAL COVERAGE AND ADMINISTRATIVE SERVICES AGREEMENT WITH NORTHSTATE NEUROSURGICAL ASSOCIATES MEDICAL GROUP, A PROFESSIONAL MEDICAL CORPORATION (CORPORATION), TO ENSURE THE AVAILABILITY OF ON-CALL SERVICES-NEUROSURGERY. EMC PURCHASED THE PRACTICE AS OF OCTOBER 1, 2013. SCHEDULE L, PART IV, TRANSACTION #3 3. CHICO EMERGENCY PHYSICIAN MEDICAL GROUP: ENLOE MEDICAL CENTER (EMC) MAINTAINS A PROFESSIONAL SERVICES AGREEMENTS WITH A PROFESSIONAL MEDICAL CORPORATION, CHICO EMERGENCY PHYSICIAN MEDICAL GROUP, INC., (MEDICAL GROUP), TO PROVIDE THE SPECIALTY OF EMERGENCY MEDICINE FOR THE HOSPITAL'S EMERGENCY DEPARTMENT. FORMER TRUSTEE (2014) CHARLES MERRIMAN, MD, IS A PHYSICIAN OWNER AND PROVIDER OF/FOR THE MEDICAL GROUP. SCHEDULE L, PART IV, TRANSACTION #4 4. CHICO HOSPITALIST GROUP: ENLOE MEDICAL CENTER (EMC) MAINTAINS A PROFESSIONAL SERVICES AGREEMENT WITH A PROFESSIONAL MEDICAL CORPORATION, THE ENLOE PRIMARY PHYSICIAN MEDICAL GROUP INC., DBA CHICO HOSPITALIST GROUP (THE GROUP) TO OBTAIN COVERAGE AND ADMINISTRATIVE SERVICES FOR A HOSPITALIST PROGRAM. THE GROUP'S SHAREHOLDERS, EMPLOYEES AND CONTRACTED PHYSICIANS ARE LICENSED TO PRACTICE IN THE MEDICAL SPECIALTIES OF FAMILY PRACTICE AND INTERNAL MEDICINE. THE GROUP SERVICES ALL PATIENT WHO REQUIRE HOSPITAL ADMISSION AND WHO HAVE NO ATTENDING PHYSICIAN OR NO REFERRING PHYSICIAN WITH ADMITTING PRIVILEDGES. TRUSTEE FORREST OLSON, MD, AND TRUSTEE SEAN MAIORANO, DO, ARE SHAREHOLDERS OF THE GROUP. ENLOE MEDICAL CENTER PAID THE GROUP $4,188,825. SCHEDULE L, PART IV, TRANSACTION #5 5. ENLOE EAR NOSE & THROAT CLINIC: ENLOE MEDICAL CENTER (EMC) OPERATES AN OUTPATIENT OTORHINOLARYNGOLOGY (SPECIALITY) CLINIC (CLINIC) - EMC ENTERED INTO A PROFESSIONAL SERVICES AGREEMENT WITH TRUSTEE MONROE SPRAGUE, MD, TO PROVIDE PROFESSIONAL SERVICES IN FOR THE SPECIALITY TO PATIENTS OF THE CLINIC. ENLOE MEDICAL CENTER PAID - $351,540. SCHEDULE L, PART IV, TRANSACTION #6 6. ENLOE WOMEN'S SERVICES CLINIC: ENLOE MEDICAL CENTER (EMC) OPERATES AN OUTPATIENT OB/GYN (SPECIALITY) CLINIC (CLINIC) - EMC ENTERED INTO A PROFESSIONAL SERVICES AGREEMENT WITH TRUSTEE MARK SCHWABE, MD, TO PROVIDE PROFESSIONAL SERVICES FOR THE SPECIALITY TO PATIENTS OF THE CLINIC. ENLOE MEDICAL CENTER PAID - $329,128. SCHEDULE L, PART IV, TRANSACTION #7 7. CHICO HOSPITALIST GROUP - ENLOE MEDICAL CENTER (EMC) MAINTAINS A SPECIALTY CALL COVERAGE AGREEMENT WITH EMERGENCY AND ACUTE CARE MEDICAL CORPORATION, A PROFESSIONAL CORPORATION THAT IS RESPONSIBLE FOR CONTRACTING WITH INDIVIDUAL SPECIALTY PHYSICIANS (ACCEPTIBLE TO EMC) TO FACILITATE THE PROVISION OF COMPREHENSIVE, TWENTY-FOUR (24) HOUR PER DAY SPECIALTY PHYSICIAN EMERGENCY ROOM AND INPATIENT CONSULTATION CALL COVERAGE. TRUSTEE MONROE SPRAGUE, MD, AND TRUSTEE MARK SCHWABE, MD, PROVIDE CONTRACTED CALL COVERAGE TO EMC. SCHEDULE L, PART II ENLOE MEDICAL CENTER (EMC) PROVIDES SUPPLEMENTAL RETIREMENT BENEFITS THROUGH AN ALTERNATIVE FUNDING ARRANGEMENT THE IRS CALLS "COLLATERAL ASSIGNMENT SPLIT DOLLAR" (CASD). ALTHOUGH THE IRS REQUIRES REPORTING IN THE LOAN SECTION OF SCHEDULE L, CASD IS NOT AN ACTUAL LOAN - NO FUNDS ARE TRANSFERRED TO THE EXECUTIVE. RATHER, THE "LOAN" TREATMENT APPLIES BECAUSE AFTER THE EXECUTIVE HAS RECEIVED RETIREMENT BENEFITS, EMC RECOVERS ALL OF ITS OUTLAYS PLUS INTEREST. THE RECOVERY RIGHT IS A KEY ADVANTAGE OF CASD FOR EMC. RATHER THAN PAYING RETIREMENT BENEFITS TO THE EXECUTIVE THAT WOULD NEVER BE RECOVERED, UNDER CASD EMC RECOVERS NOT ONLY ITS OUTLAYS, BUT ALSO CONSIDERATION FOR THE TIME VALUE OF MONEY. CASD WORKS AS FOLLOWS. EMC DEPOSITS FUNDS INTO A CASH VALUE LIFE INSURANCE POLICY ON THE EXECUTIVE'S LIFE. DURING LIFE, TO THE EXTENT THE EXECUTIVE FULFILLS SERVICE AND VESTING REQUIREMENTS, THE EXECUTIVE CAN BORROW AGAINST VALUES IN THE POLICY TO SUPPLEMENT RETIREMENT INCOME. POLICY PERFORMANCE IS CLOSELY MONITORED. IF POLICY PERFORMANCE LAGS, THE EXECUTIVE'S BORROWING RIGHTS ARE REDUCED TO PROTECT EMC'S RECOVERY RIGHTS. AT THE EXECUTIVE'S DEATH, THE POLICY DEATH PROCEEDS ARE FIRST USED TO REPAY EMC ITS DEPOSITS PLUS COMPOUNDED INTEREST (AT THE IRS LONG-TERM APPLICABLE FEDERAL RATE). THE EXECUTIVE'S BENEFICIARY THEN RECEIVES ANY PROJECTED RETIREMENT BORROWING THE EXECUTIVE DID NOT ACCESS DURING LIFE. ANY REMAINING DEATH PROCEEDS ARE DUE TO EMC. FORM 990, PART VI, SECTION B, LINE 11 THE FINAL FORM 990 IS PROVIDED TO EMC'S GOVERNING BODY WHERE IT IS REVIEWED AND MADE AVAILABLE FOR COMMENT PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE. THE REVIEW PROCESS INCLUDES MULTIPLE LEVELS OF REVIEW INCLUDING KEY CORPORATE FINANCE DEPARTMENT PERSONNEL AND SENIOR EXECUTIVES, INCLUDING THE DIRECTOR OF FINANCE AND VICE PRESIDENT/CHIEF FINANCIAL OFFICER AND CHIEF EXECUTIVE OFFICER. ADDITIONALLY, THE ORGANIZATION CONTRACTS WITH MOSS ADAMS, LLP, A CPA FIRM, FOR PREPARATION AND REVIEW OF THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C ENLOE MEDICAL CENTER (EMC) IS COMMITTED TO PREVENTING ANY PARTICIPANT OF EMC FROM GAINING ANY PERSONAL BENEFIT FROM INFORMATION RECEIVED OR FROM ANY TRANSACTION OF EMC. EMC MAINTAINS A WRITTEN CONFLICT OF INTEREST POLICY THAT REQUIRES ANY INTERESTED PERSON TO SUBMIT A CONFLICT OF INTEREST STATEMENT ANNUALLY TO THE COMPLIANCE OFFICER. EMC DEFINES AN INTERESTED PERSON AS ANY DIRECTOR, TRUSTEE, PRINCIPAL OFFICER, CONTRACTED PHYSICIAN OR MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS THAT HAS A DIRECT OR INDIRECT FINANCIAL INTEREST, OR OUTSIDE INTEREST OR ACTIVE INTEREST. A FINANCIAL INTEREST IS BASED ON IF THE PERSON, DIRECTLY OR INDIRECTLY, THROUGH BUSINESS, INVESTMENT OR IMMEDIATE FAMILY HAS AN OWNERSHIP OR INVESTMENT INTEREST IN ANY ENTITY WITH WHICH EMC HAS A TRANSACTION OR ARRANGEMENT, OR A COMPENSATION ARRANGEMENT WITH ANY ENTITY OR INDIVIDUAL WITH WHICH THE ORGANIZATION HAS A TRANSACTION OR ARRANGEMENT, OR A POTENTIAL OWNERSHIP OR INVESTMENT INTEREST IN, OR COMPENSATION ARRANGEMENT WITH ANY ENTITY OR INDIVIDUAL WITH WHICH EMC IS NEGOTIATING A TRANSACTION OR ARRANGEMENT. EACH BOARD MEMBER, OFFICER, MEMBER OF A BOARD COMMITTEE (COMMITTEE) AND CONTRACT PHYSICIAN IS REQUIRED TO ANNUALLY SIGN A CONFLICT OF INTEREST ANNUAL STATEMENT WHICH AFFIRMS THAT SUCH PERSON HAS (I) RECEIVED A COPY OF THE CONFLICTS OF INTEREST POLICY, (II) HAS READ AND UNDERSTANDS THE POLICY, (III) AGREES TO COMPLY WITH THE POLICY, AND (IV) HAS DISCLOSED ALL REAL AND POTENTIAL CONFLICTS. THESE STATEMENTS ARE SUBMITTED BY THE CHIEF COMPLIANCE OFFICER TO THE BOARD ON AN ANNUAL BASIS. THE MINUTES OF THE BOARD CONTAIN ALL APPROPRIATE DOCUMENTATION OF PERSONS WITH ACTUAL OR PERCEIVED CONFLICT OF INTEREST. ANY PERSON DEEMED TO BE AN INTERESTED PERSON IS RECUSED FROM DISCUSSION OR PARTICIPATION IN THE DECISION PROCESS FOR ANY CONTEMPLATED TRANSACTION OR ARRANGEMENT. IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, AN INTERESTED PERSON IS REQUIRED TO DISCLOSE THE EXISTENCE AND NATURE OF ANY FINANCIAL OR OTHER INTEREST TO THE CHAIRMAN OF THE BOARD OF COMMITTEE. AFTER DISCLOSURE OF THE INTEREST AND ALL MATERIAL FACTS, INVESTIGATION AND ANY DISCUSSION WITH THE INTERESTED PERSON, THE CHAIRMAN OR RESPECTIVE COMMITTEE WILL UNDERTAKE SUCH STEPS AS NECESSARY TO DECIDE IF A CONFLICT OF INTEREST EXISTS. VIOLATIONS OF THE CONFLICTS OF INTEREST POLICY ARE SUBJECT TO THE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION, INCLUDING DISMISSAL, AT THE BOARD'S DISCRETION. FORM 990, PART VI, SECTION B, LINE 15 ENLOE MEDICAL CENTER (EMC) IS COMMITTED TO ENSURING THAT ALL EXECUTIVE COMPENSATION DECISIONS ARE COMPETITIVE, FAIR AND EQUITABLE, SUPPORTING THE MISSION AND VALUES OF EMC, AS WELL AS IN COMPLIANCE WITH APPROPRIATE REGULATORY GUIDELINES. RESPONSIBILITY FOR DUE DILIGENCE AND THE DEVELOPMENT OF RECOMMENDATIONS REGARDING EXECUTIVE COMPENSATION RESIDES WITH THE EXECUTIVE COMPENSATION COMMITTEE OF THE BOARD. THE COMMITTEE IS COMPRISED OF INDIVIDUALS INDEPENDENT OF THE MANAGEMENT OF EMC. THE KEY PRINCIPLES TO OUR COMPENSATION PHILOSOPHY ARE TO PROVIDE A REASONABLE MARKET WAGE, MAINTAIN COMPETITIVE AND INTERNALLY EQUITABLE PAY AND PROVIDE MARKET COMPETITIVE BENEFITS. EXECUTIVE COMPENSATION IS BASED ON NATIONAL AND REGIONALLY RECOGNIZED ORGANIZATIONS. THE EXECUTIVE COMPENSATION COMMITTEE COMPLETES A MARKET-BASED ANALYSIS ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 EMC MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN DEFINED BENEFIT PENSION PLANS -2,813,538. CHANGE IN VALUE OF GIFT ANNUITY FUNDS -3,725. INTERCOMPANY ADJUSTMENT -105,338. ENLOE HEALTH FOUNDATION 1531 ESPLANADE CHICO CA 95926 942985552 SUPPORT EMC CA 501(C)(3) LINE 11A, I ENLOE MEDICAL CENTER 1 CHICO PHYSICIAN PRACTICE SUPPORT SERVICE 1531 ESPLANADE CHICO CA 95926 680352993 PHYSICIAN MGMT CA C 7190 1.00000 0 GIFT ANNUITY TRUSTS (2) 1531 ESPLANADE CHICO CA 95926 CA N/A 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 ENLOE HEALTH FOUNDATION C 60101 BOOK VALUE/ACTUAL ENLOE HEALTH FOUNDATION P 348885 BOOK VALUE/ACTUAL