Range Regional Health Services

Schedule D, Page 3, Part X

“During 2007, fairview health services and subsidiaries adopted fasb interpretation no. 48, accountinf for uncertainty in income taxes, an interpretation of fasb statement no. 109, accounting for income taxes (fin48), which clarifies the accounting for uncertainty in income taxes recognized in an entity's financial statements and prescribes a recognition threshold and measurement attributes for financial statement disclosure of tax positions taken or expected to be taken on a tax return. In accordance with fin48, a tax position is a position in a previously filed tax return or a positionexpected to be taken in a future tax filing that is reflected in measuring curent or deferred income tax assets and liabilities. Tax positions shall be recognized only when it is more likely than not (likelihood of greater than 50%) , based on technical merits, that the position will be sustained upon examination. Under fin48, the financial statement impact of an uncertain income tax position that was taken or is expected to be taken on the income tax return and that meets the more- than-likely-or-not threshold must be recognized and measured using a probability weighted approach at the largest amount that is more likely than not to be sustained upon audit by the relevant taxing authority. There are no material changes in fairview health services unrecognized income taxposition at december 31, 2015. Fairview recognized all tax positions, including those positions in a previously filed tax return or a position expected to be taken in a future tax filing that is reflected in measuring current or deferred income tax assets and liabilities, when it is more likely than not (likelihood of greater than 50%) that, based on technical merits, the position will be sustained upon examination. Fairview has net operating loss carry forwards for federal income tax purposes. A valuation allowance has been recorded for the full amount of deferred tax asset related to the net operating loss carry forwards due to the uncertainty regarding their use. There are o uncertain tax positions recorded in the colsolidated balance sheet for the years ended december 31, 2015, 2014, and 2013.”