Inspira Medical Centers Inc.

“INSPIRA HEALTH NETWORK, INC. ("network") IS THE SOLE MEMBER OF THIS ORGANIZATION. network HAS THE RIGHT TO ELECT THE MEMBERS OF THIS ORGANIZATION'S BOARD OF DIRECTORS AND HAS CERTAIN RESERVED POWERS AS DEFINED IN THIS ORGANIZATION'S BYLAWS.”

“The organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). Inspira health network, inc. ("network") is the tax-exempt parent entity of the system. This organization's federal form 990 was provided to each voting member of its governing body, its board of directors, prior to filing with the internal revenue service ("irs"). The network's compensation committee has assumed the responsibility to oversee and coordinate the federal form 990 preparation, review and filing process for all tax-exempt affiliates of the system. As part of the organization's federal form 990 tax return preparation process the system hired a professional cpa firm with experience and expertise in both healthcare and not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the organization's finance personnel and system individuals including general counsel, chief financial officer, vice president of finance and various other individuals to obtain the information needed in order to prepare a complete and accurate tax return. The cpa firm prepared a draft federal form 990 and furnished it to the organization's finance personnel and other individuals outlined above for their review. The organization's finance personnel and other individuals reviewed the draft federal form 990 and discussed questions and comments with the cpa firm. Revisions were made to the draft federal form 990 where necessary and a final draft was furnished by the cpa firm to the organization's finance personnel and various other individuals for final review and approval prior to presentation to the members of the network's compensation committee and thereafter to each voting member of this organization's board of directors.”

“The organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). Inspira health network, inc. ("network") is the tax-exempt parent entity of the system. The organization and the system regularly monitor and enforce compliance with its conflict of interest policy. Annually all members of the board of directors, officers and senior management personnel are required to review the existing conflict of interest policy and complete a questionnaire. The completed questionnaires are returned to the organization and network's general counsel for review. Thereafter, general counsel prepares a summary of the completed questionnaires which contains information disclosed on an individual by individual basis which is then presented to the network's governance committee for its review and discussion.”

“The organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). Inspira health network, inc. ("network") is the tax-exempt parent entity of the system. Network's board of directors has an executive compensation committee ("committee"). The committee has adopted a written executive compensation philosophy which it follows when it reviews and approves of the compensation and benefits of the organization's senior management, including the president/chief executive officer and executive vice president/chief financial officer. The committee reviews the "total compensation" of the individuals which is intended to include both current and deferred compensation and all employee benefits, both qualified and non-qualified. The committee's review is done on at least an annual basis and ensures that the "total compensation" of senior management of the organization is reasonable. The actions taken by the committee enable the organization to receive the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of certain members of the senior management team, including the president/chief executive officer and executive vice president/chief financial officer. The three factors which must be satisfied in order to receive the rebuttable presumption of reasonableness are the following: 1. The compensation arrangement is approved in advance by an "authorized body" of the applicable tax-exempt organization which is composed entirely of individuals who do not have a "conflict of interest" with respect to the compensation arrangement; 2. The authorized body obtained and relied upon "appropriate data as to comparability" prior to making its determination; and 3. The authorized body "adequately documented the basis for its determination" concurrently with making that determination. The committee is comprised of members of the board of directors each of who are independent and are free from any conflicts of interest. The committee relied upon appropriate comparable data; specifically the committee obtained a written compensation study from an independent firm which specializes in the reviewing of hospital and healthcare system executive compensation and benefits throughout the united states. This study used comparable geographic and demographic market data including but not limited to similar sized hospitals, # of licensed beds and net patient service revenue. The committee adequately documented its basis for its determination through the timely preparation of written minutes of the compensation committee meetings during which the executive compensation and benefits was reviewed and subsequently approved. The actions outlined above with respect to the committee and the establishment of the rebuttable presumption of reasonableness only applies to certain senior management personnel, including but not limited to the president/chief executive officer and executive vice president/chief financial officer. The compensation and benefits of certain other individuals contained in this form 990 are reviewed annually by the president/chief executive officer with assistance from the organization's human resources department in conjunction with the individual's job performance during the year and is based upon other objective factors designed to ensure that reasonable and fair market value compensation is paid by the organization. Other objective factors include market survey data for comparable positions, individual goals and objectives, personnel reviews, evaluations, self-evaluations and performance feedback meetings.”

“The organization has issued tax-exempt bonds to finance various capital improvement projects, renovations and equipment. In conjunction with the issuance of these tax-exempt bonds, the organization's financial statements were included with the tax-exempt bond prospectus which was made available to the general public for review. In addition, the organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the state of new jersey department of the treasury.”

“Part vii and schedule j reflect certain board members and officers receiving compensation and benefits from this organization. Please note this remuneration was for services rendered as full-time employees or independent contractors of this organization and not for services rendered as a voting member or officer of this organization's board of directors.”

“This organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). The system includes both for-profit and not for-profit organizations. Certain board of director members, officers and/or directors listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990, for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of directors of other related organizations in the system, their respective hours per week per organization are approximately one hour. The hours reflected on part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers and key employees, reflect total hours worked per week on behalf of the system; not solely this organization.”

“BACKGROUND ========== Inspira Medical Centers, Inc. ("IMC") is a provider of general acute and ambulatory healthcare services based in Cumberland and Salem County, New Jersey. IMC is recognized by the IRS as an Internal Revenue Code 501(c)(3) tax-exempt organization. Pursuant to its charitable purposes, IMC provides healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Moreover, IMC operates consistently with the following criteria outlined in IRS revenue ruling 69-545: 1. Provides healthcare services to all individuals regardless of ability to pay, including Charity Care, Self-Pay, Medicare and Medicaid patients; 2. Operates 3 active emergency DEPARTMENTS for all persons; which are open 24 hours a day, 7 days a week, 365 days per year, including a specialized pediatric emergency department in the Vineland facility; 3. Maintains an open medical staff, with privileges available to all qualified physicians; 4. Control of IMC rests with its board of directors and the board of directors of Inspira Health Network, Inc. Both boards are comprised of independent civic leaders and other prominent members of the community; and 5. Surplus funds are used to improve the quality of patient care, expand and renovate facilities and advance medical care, programs and activities. The operations of IMC as shown through the factors outlined above and other information contained herein, clearly demonstrate that the use and control of IMC is for the benefit of the public and that no part of the income or net earnings of the organization inures to the benefit of any private individual nor is any private interest being served other than incidentally. IMC provides healthcare services to all individuals regardless of ability to pay. Moreover, IMC provides healthcare services to patients who meet certain criteria defined by the New Jersey Department of Health and Human Services without charge or at amounts less than established rates. IMC maintains records to identify and monitor the amount of charity care it provides. These records include the amount of charges foregone for services and supplies furnished under its charity care policy. As the sole provider of essential health services, IMC provides an essential safety net for our communities, assuring that patients receive both the care and financial help they need. IMC is the area's only non-profit health system and major provider of charity care for families without health insurance. IMC is an integrated healthcare delivery system comprised of medical centers, community health clinics, home health services, and specialty services that serve the healthcare needs of our community. PATIENT STATISTICAL INFORMATION =============================== IMC provides care to a patient base spread out over five southern New Jersey counties. With facilities in Cumberland and Salem Counties, IMC serves as the only not-for-profit acute care facility in both of those counties, accounting for over 376,000 persons, IMC is comprised of two acute care facilities and two hospital-based ambulatory care centers. Inspira Medical Center Vineland is located in Vineland, New Jersey, Cumberland County. It is a 276-bed acute care facility with 59 psychiatric beds located at the Inspira Health Center Bridgeton. Inspira Medical Center Elmer is a 96-bed acute care facility located in Elmer, New Jersey, Salem County. Additionally, IMC provides ambulatory services at two locations in Cumberland County, which are Inspira Health Center Bridgeton and the Inspira Medical Center Vineland. These ambulatory care centers provide a wide range of diagnostic and therapeutic services, including a 24/7 satellite emergency department and chronic dialysis services at Inspira Health Center Bridgeton, physical rehabilitation services, occupational medicine, laboratory and radiology services. In 2013, IMC performed 17,960 surgeries, 143,844 physical thera”

“- Spirit of Women Premier Hospital - Inspira was named a Spirit of Women Premier Hospital for its commitment to women's health and well-being. Last year, hundreds of women attended Spirit of Women events that blend fun and learning for a great time out. ROWAN SOM MAJOR CLINICAL AFFILIATION ==================================== The Rowan University School of Osteopathic Medicine has designated IMC as a major clinical affiliate of the medical school. This partnership supports Inspira Medical Center Vineland's residency programs that will help to address the anticipated physician shortage in our region by training new doctors' right here in our community. MEDICAL AND SPECIALTY SERVICES ============================== IMC is a nonprofit healthcare organization that provides a broad spectrum of inpatient care and ambulatory care. In addition to its general medical, surgical, obstetrical, gynecological, pediatric and psychiatric services, IMC offers a wide array of diagnostic and treatment modalities and various specialty services. Comprehensive acute care services are provided at Inspira Medical Center Vineland and Inspira Medical Center Elmer. Each medical center campus offers 24-hour services in radiology, laboratory, cardio-pulmonary and emergency medicine. Staff is on call after hours and on weekends for surgical services and certain diagnostic services such as nuclear medicine and ultrasound. The Inspira Health Center Bridgeton is home to a satellite emergency department that serves patients 24 hours a day, seven days a week, a 10-bed hospice inpatient center and a variety of behavioral health and outpatient services. SERVICES AND PROGRAMS ===================== Inspira offers a variety of significant services and programs, several of which are described below. Inspira Medical Center Elmer ---------------------------- Inspira Medical Center Elmer is a 96-bed primary healthcare provider in Southern New Jersey. In the last several years, Elmer has undergone some renovations including the opening of their intensive care unit; a modern surgical services department; a new child/adolescent intensive outpatient mental health unit; a new maternity care center; a new physician care center, a free-standing outpatient physical therapy site; a redesigned operating room, emergency room, lobby and registration area. Inspira Medical Center Vineland ------------------------------- Located on a 62.5-acre campus in Vineland, Inspira Medical Center Vineland is a 491,989 square-foot, 276-bed facility, which opened in August 2004. In addition to offering comprehensive medical technologies and services, the Inspira Medical Center Vineland's design also emphasizes patient comfort. Inpatient Care Centers of Excellence ------------------------------------ Inspira Medical Center Vineland operates four inpatient care centers: - Women's & Children's Center of Care - Home-like labor and delivery suites - Surgical Center of Care - 10 operating suites, a modern ICU/CCU and rehabilitation services - Medical Center of Care - Acute, ICU and post-ICU, dialysis, chemotherapy and medical infusion services - Cardiology Center of Care - 37 bed cardiac acute care unit, ICU and post-ICU and cardiopulmonary unit The inpatient care centers allow for the co-location of like acute and critical care units. The surgical intensive care unit is adjacent to the surgical step-down/post-intensive care unit. This step-down unit is likewise adjacent to the surgical acute care beds. As the patient's illness or injury becomes less acute, the patient can move down this continuum of care without ever physically leaving the inpatient care centers. This configuration also simplifies physicians' rounds. All patient rooms at the Inspira Medical Center Vineland are single patient rooms which increases patient privacy, confidentiality and comfort. The use of private rooms allows for more efficient care and reduces the risk of patients contracting a nosocomial infection during their stay. Also”

“A CENTER OF EXCELLENCE FOR BARIATRIC SURGERY ============================================ Inspira Medical Center Vineland has been named an American Society for Metabolic and Bariatric Surgery (ASMBS) Bariatric Surgery Center of Excellence. The ASMBS Center of Excellence designation recognizes surgical programs with a demonstrated track record of favorable outcomes in bariatric surgery. To earn a center of excellence designation, the Inspira Medical Center Vineland underwent a series of site inspections during which all aspects of the program's surgical processes were closely examined and data on health outcomes was collected. BREAST IMAGING CENTER OF EXCELLENCE =================================== Inspira Medical Center Vineland has been designated a Breast Imaging Center of Excellence by the American College of Radiology (ACR). The designation is awarded to breast imaging centers that have achieved excellence by seeking and earning accreditation in all of the ACR's voluntary, breast-imaging accreditation programs and modules, in addition to the mandatory Mammography Accreditation Program. MATERNAL AND CHILD HEALTH ========================= Hospital-based maternity services are offered at Inspira Medical Center Vineland and Inspira Medical Center Elmer, which both offer modern, private maternity suites where our physicians and nurses provide a safe and positive environment for labor and delivery. IMC also offers the services of midwives. The Women's and Children's Inpatient Care Center is located on the first floor of Inspira Medical Center Vineland and offers a LDRP (labor, delivery, recovery and post-partum) room configuration that permits a mother to choose whether she wishes to have her baby stay in the same room with her during her stay or have family members stay with her. IMC Vineland has 10 private labor/delivery/recovery rooms and 28 private post-partum rooms to encourage family bonding. The maternity care unit at Inspira Medical Center Elmer, which opened in 2003, offers comprehensive fetal testing and immunization services; c-section facilities and recovery rooms; breastfeeding and infant care education; and easy access to medical center departments for diagnostic screening. Each of the five LDRP suites at Elmer's maternity care unit is designed with a private bathroom. Four of the five rooms have whirlpool tubs and the fifth has a birthing tub. NEONATAL INTENSIVE CARE UNIT (NICU) =================================== Inspira Medical Center Vineland offers advanced care for premature, low birth-weight/critically ill infants at the Level IIIa Deborah F. Sager Neonatal Intensive Care Unit. NEUROSURGERY ============ IMC completed a market study which showed that 90 percent of patients in IMC's primary service area who needed neurosurgical services were leaving the area to receive them. IMC has recruited a board certified neurosurgeon which now allows IMC to offer a broad range of neurosurgical services, including care for inter-cranial bleeding, spinal surgery and care for stroke patients. UROLOGY ======= IMC's staff includes a board certified Urologist who is fellowship trained in prostate cancer care. A Urogynecologist who specializes in pelvic reconstruction surgery has also joined the Inspira team. ONCOLOGY ======== IMC has recruited physicians to their medical staff that specialize in gynecologic oncology and oncologic breast surgery. These specialized care services were never before available to the members of our community. IMC SPORTS REHABCARE VINELAND ============================= IMC Sports RehabCare is conveniently located within Inspira Fitness Connection Vineland. The dedicated staff works closely with orthopedic surgeons to assist patients with the rehabilitation and treatment of arthroscopic procedures, total joint replacements for hip and knee, intricate hand and foot surgery and specialized spine procedures. The rehab centers new AlterG Anti-Gravity Treadmill introduces technology that "unweights" a user”

“URGENT CARE CENTERS =================== IMC is proud to offer three Urgent Care Centers. The first of the three is Inspira Urgent Care Tomlin Station located in Mullica Hill, followed by Inspira Urgent Care Glassboro and Inspira Urgent Care Woolwich. Urgent care centers are a convenient way of seeking treatment of a minor injury or illness. The centers are equipped to treat a wide range of minor or non-life-threatening conditions that do not require the life-saving services of a hospital emergency room. COMMUNITY BENEFIT EFFORTS ========================= In its role as the sole not-for-profit acute care provider in Cumberland and Salem Counties, IMC and entities under its parent, provide and participate in a number of services and programs in our community. From community education to participation in community-focused groups, IMC provides a wide range of services. Improve Community Health ------------------------ Inspira Medical Centers provides its neighbors with many programs and services that help improve the health of the community. Examples of some of these programs and services are: - Cancer Services - Inspira Frank and Edith Scarpa Cancer Center offers a number of outreach services, which provide support and education in the community. IMC's Breast Cancer Bridge Program, Men's Cancer Support Group and Patient Navigators all serve as healthcare advocates, helping patients navigate through their cancer journey. As a Fox Chase Cancer Center partner, IMC provides leading-edge cancer care through national clinical trials, which focus on cancer treatment, diagnostic and prevention methods. IMC has the opportunity to recruit a large amount of patients for Fox Chase's newest clinical trials, providing local access to the latest strategies against cancer. - Health Information - Access to quality health information is important and IMC provides a variety of healthcare information to the community on its website and through publications to the general public. The community has monthly access to IMC medical experts through partnerships with the local newspapers featuring monthly sections like "Ask the Doctor" and "Healthline", which allow readers to submit questions and receive responses about important healthcare issues online or via fax. IMC also reaches out to the community through the newspapers monthly "Health Connection" publication, which contains news and information about local health issues, options, tips, resources, support groups and more. "Family & Friends" is a quarterly external publication that offers health information to promote healthy living, heighten awareness of health issues, recognize common symptoms of disease and encourage medical attention and treatment. IMC's website offers a wealth of health information to the community including free access to Look, Listen and Learn, an online library of educational videos covering a variety of medical conditions and procedures. In addition, IMC offers two e-newsletters, "Health E You", a healthy living newsletter, and the "Cancer E-newsletter". A free subscription to each is available through Inspira's website. - Garden AHEC Educational Programs - The Cumberland Empowerment Zone Corporation's 21st Century Community Learning Center program offers after school and summer courses in nutrition, fitness, healthy lifestyles, careers in healthcare and a positive youth development program focusing on psychosocial teen health topics. These programs are offered to underprivileged and minority middle & high school students. - Health Fairs and Screenings - IMC also reaches out to those in our community who do not regularly come through the doors of our medical centers. IMC reaches out to a variety of local employers by participating in on-site health fairs and events to offer valuable health information to our neighbors. In addition, IMC hosts senior luncheon classes and senior health education days, which include flu shots and educational sessions. In recognition of stroke awar”

“- Residency Programs - IMC has partnered with Rowan School of Osteopathic Medicine to train the next generation of physicians. These medical school graduates work side-by-side with experienced members of the IMC Medical Staff, gaining valuable experience and insight. At the same time, they enhance patient care with the knowledge of the latest treatments and philosophies medicine has to offer. They also bring a level of intellectual curiosity that strengthens our care teams and benefits our patients. In 2013, there were 98 residents on staff. - School Programs on Health Careers - IMC provides educational opportunities and hosts special events, job shadowing and programs to middle and high school students who are interested in pursuing careers in healthcare and medicine. To reach every age group in the community, IMC staff also extends hospitals tours to preschool and first graders, as their primary introduction to the healthcare environment and promotion of healthy lifestyles. - Symposia - IMC is preparing for the healthcare challenges of the future by supporting the continuing education needs of physicians and allied health personnel in the community. Programs are available on the latest advancements and leading-edge research on topics such as cancer, critical care, nephrology, pediatrics and obstetrics. These continuing education opportunities give health professionals and physicians in our community and across the region the ability to meet and discuss important issues within our industry. - Community Needs Assessment - In collaboration with various community and government organizations, IMC began conducting a Community Needs Assessment in 2011 to identify and address the health needs of the community. IMC partnered with over 15 local organizations to form the Cumberland/Salem/Gloucester Health & Wellness Alliance. The Alliance conducted survey assessments and focus groups to target the most prevalent needs in our community. Through a planned and organized effort, the group worked collectively to address these priorities by tapping into the resources of the community and collaborating on initiatives. IMC actively contributes to this process and engages in the identified priorities that match its mission, expertise, resources and capacity. Currently IMC is working to implement the identified strategies and will track their progress going forward. In addition to these organized needs assessment efforts, ongoing community meetings with local providers, local health departments, local politicians, organizations and community leaders are sponsored by the network to address the ongoing needs of the community. ACCESS TO AND IMPROVING THE QUALITY OF HEALTHCARE ================================================= IMC has both participated in and conducted a number of programs to improve access to healthcare services: - Efficient and Quality Patient Care - As the leading community provider in southern New Jersey, IMC is highly regarded for its quality of care and services in the region. Clinical quality and service excellence remain top strategic initiatives. To further increase the efficiency of patient care, IMC has transitioned to electronic medical records making significant investments in its clinical computer systems. The organization will expand its core quality measures by participating in several regional and national performance improvement programs that will provide benchmarking data and tools for measuring and reporting clinical quality. - Patient Satisfaction - IMC uses a patient satisfaction tool called the Hospital Consumer Assessment of Healthcare Providers Survey HCAHPS). This standardized survey measures our patients' perceptions about their hospital experience and provides feedback about how we are doing, both good and bad. This assists us to continually make improvements and provide even better care for the community. - National and Regional Initiatives - IMC has been an active participant in national and regional in”

“- Emergency Preparedness - IMC readies itself for catastrophic disaster above and beyond licensure requirements. This includes an internal, formalized hospital emergency response/decon team of dedicated staff who conduct extensive quarterly decontamination training. IMC partners with Offices of Emergency Management, local police and other related agencies to coordinate community-wide mass casualty drills and participates in state sponsored disaster planning drills to rehearse healthcare preparedness for mass casualty disasters and public health emergencies. - Employer Forum - IMC Occupational Health developed this quarterly forum to address, target and discuss medical issues, employee health, safety and wellness of workforce populations with employers throughout Cumberland County. - Environmental Safety - Inspira Medical Centers participates in a Safe Syringe Program that helps the community to safely and responsibly dispose of syringes, needles and lancets generated in the home. This program helps assure a safe environment by providing the community an outlet to properly dispose of medical waste. Each year, community members are provided with sharps containers and are permitted to drop off to IMC where they are properly disposed of. - Extended Care Facility Consortium (ECF) - In 2009, a collaborative group was formed between IMC and the neighboring extended care facilities. The role of the ECF is to facilitate outreach and provide information, services, resources and a continuum of access to care for elderly populations within Cumberland County. - IMPACT - Innovative Model for Preschool and Community Teaming (IMPACT), was developed through collaboration between IMC and the Vineland Board of Education. It provides health and social services, childcare for infants and toddlers, preschool programs and literacy programs that target the needs of the low income residents in Cumberland County. It also addresses issues such as teen pregnancy, literacy, teen parenting, child care and early childhood education. Every year, the program makes a positive impact on the lives of thousands of kids and their families. IMPACT provides a number of educational opportunities for the community including: * IMPACT's Teen Parenting Program provides parenting classes, childcare services, prenatal care, and life skills education to teen parents in Vineland high schools only and promotes lifelong learning and second pregnancy prevention. In 2012, 46 teens were enrolled during the school year. * IMPACT's School Based Youth Services Program (SBYSP), offers health services, tutoring, counseling, recreation and life skills training at the Vineland High School, Vineland Wallace Middle School and Millville High School. * The IMPACT Family Outreach Program is an Abbott program which coordinates family outreach and support with social workers who service Abbott preschool providers in Bridgeton, Millville and Vineland. * The IMPACT Child Care program is accredited by the national association for the education of young children and is open to children from 6 weeks to 5 years old with health center services provided on site. In 2013, 60 children were enrolled in the Child Care Program and 39 were enrolled in the Wrap Around Program. * IMC's Family Success Centers in Vineland and Port Norris provide services and programs that connect families with community resources ranging from housing and legal assistance to help obtaining household items and food. The center focuses on 10 core services to strengthen families by providing assistance with obtaining health insurance, selecting physicians, providing workshops that increase positive interaction between parents and children, promoting family literacy, addressing health issues and legal issues such as immigration and other topics relevant to the community. - Improving access to healthcare for uninsured/underinsured - IMC has a proud history of helping uninsured residents get the coverage they need. IMC has worked in”

“Expenses incurred in providing various other medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin, religion or ability to pay. Please refer to the organization's community benefit statement included in schedule o.”

“Other changes in net assets or fund balance include: - forgiveness of debt - inspira health management, inc.; a related organization - ($2,000,000); - other increases in unrestricted net assets - $1,000; - net assets released from restriction for property and equipment - $235,000; - change in beneficial interest in temporary trust; temporarily restricted $177,000; - net assets released from temporary restriction - ($241,000); - other decreases in temporarily restricted net assets - ($13,000); and - increase in beneficial interest in perpetual trust; permanently restricted - $121,000.”

“The organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). The system's tax-exempt parent entity is inspira health network, inc. ("network"). An independent cpa firm audited the consolidated financial statements of the network and all entities within the system for the years ended december 31, 2013 and december 31, 2012; respectively. The audited consolidated financial statements contained consolidating schedules on an entity by entity basis. The independent cpa firm issued an unqualified opinion with respect to the consolidated audited financial statements. The network's audit committee has assumed responsibility for the oversight of the audit of the consolidated financial statements, which includes this organization, and the selection of an independent auditor. In addition, an independent cpa firm audited the consolidated financial statements of inspira medical centers, inc. And inspira health network foundation cumberland/salem, inc. For the years ended december 31, 2013 and december 31, 2012; respectively. The audited consolidated financial statements contained consolidating schedules on an entity by entity basis. The independent cpa firm issued an unqualified opinion with respect to the consolidated audited financial statements.”

“The organization is an affiliate within inspira health network; a tax-exempt integrated healthcare delivery system ("system"). The system engaged an independent accounting firm to prepare and issue a system wide consolidated a-133 audit. This organization was included in the system wide a-133 audit.”