Scott Regional Medical Center Inc

PART X, LINE 2:

“Rush health systems, inc., subsidiaries, and affiliates, with the exception of physician management services, inc., meridian anesthesia group, inc., managed healthcare, inc., and the medical store, are not-for-profit corporations as described in section 501(c)(3) of the internal revenue code (code) and are exempt from federal income taxes on their income under section 501(a) of the code. Physician management services, inc., meridian anesthesia group, inc., managed healthcare, inc., and the medical store, however, are taxable corporations and file corporate income tax returns. Accounting principles generally accepted in the united states of america require the health system to evaluate tax positions taken by the health system and recognize a tax liability or asset if the health system has taken an uncertain position that more likely than not would be sustained upon examination by the internal revenue services (irs). The health system has concluded that as of december 31, 2021 and 2020, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the consolidated financial statements. Generally, tax returns for years ended december 31, 2018, and thereafter remain subject to examination by federal and state tax authorities. Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. The subsidiaries' temporary differences relate primarily to property and equipment and net operating loss carryforwards. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.”