Chatham Hospital Inc.

“See response to question 7a.”

“In addition to such powers and rights as are vested in it by law, the amended and restated articles of incorporation of the corporation or the amended and restated bylaws, the member ("unchcs") shall have the following powers: (a) the power to appoint the chairman of the board, vice chairman, president, executive vice presidents, secretary/treasurer and other corporate officers of the corporation; (b) the power to appoint individual members of the corporation's board of trustees; (c) the power to establish and maintain quality, service delivery, and financial standards to be observed by all members of unchcs, including the corporation; (d) the power to establish a schedule of cost-based assessments payable by provider components of unchcs for the support of that portion of its operating budget attributable to unchcs-wide administration and initiatives and reflecting operating entity performance; (e) the power to negotiate, develop, and approve all managed care products and contracts for the corporation; (f) the power to approve (i) the corporation's name, (ii) capital and operating budgets of the corporation, and (iii) non-budgeted material expenditures of the corporation (as "material" is established by the member from time to time), provided that only the board of trustees shall have the authority to initiate a change in the name of the corporation of the hospital, which shall be subject to final approval by unchcs; and (g) other powers mutually agreed to by unchcs and the corporation.”

“See response to question 7a.”

“Form 990, part vi, section a,line 10: the form 990 was reviewed prior to filing by the president and cfo of the hospital. In addition, it was made available to every member of the governing body before it was filed with the irs.”

“The conflict of interest statements are completed by the board members annually to be reviewed by the hospital president. The chatham hospital conflict of interest policy outlines the process to be followed in determining the existence of a potential conflict, and how to address the situation.”

“Effective august 1, 2006, the hospital enetered into a five-year contract with unch to provide a ceo and a cfo to manage the day-to-day operations of the hospital. The president of chatham hospital reports monthly to the president of unc hospitals, discussing surveys of compensation data and planned ranges of salary offers for employees of chatham. Target levels are based on level of education and experience. With input from the management of unc hospitals, the president of chatham hospital makes the final decision on salaries, with the exception of his/her own, which is set by the president of unch with input from the unc hospitals management team.”

“Photocopies of the form 1023 and recent copies of the form 990 are available upon request at the organization's administrative office. In additon, recent copies of form 990 are available online at www.guidestar.org.”

“Physician fees : program service expenses 4,121,625. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,121,625. Mobile imaging services: program service expenses 838,971. Management and general expenses 0. Fundraising expenses 0. Total expenses 838,971. Contracted support fees : program service expenses 1,134,789. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,134,789. Maintenance fees : program service expenses 119,362. Management and general expenses 191,103. Fundraising expenses 0. Total expenses 310,465. All other fees : program service expenses 983,356. Management and general expenses 0. Fundraising expenses 0. Total expenses 983,356.”

“Capital contributed (to) from sole member -155,407.”

“No change from prior year.”