Murphy Medical Center Inc.

“The executive committee shall be composed of the chairman of the board of directors as the chairman of the committee, the vice chairman of the board of directors, and one other member of the board of directors elected to the committee by the board of directors. Members of the executive committee shall serve a term of the office of one year which will co-extend with the term of office of the chairman of the board of directors. The executive committee shall have the authority and responsibility: - to transact all regular business of the board of directors during the interim between regular meetings of the board of directors, provided that any action taken shall not conflict with policies and directives previously adopted by the entire board directors, and - to hear and act upon formal recommendations and complaints presented by the medical staff to the executive committee for consideration and action. - should any matter of major importance and extreme urgency come to the attention of the executive cimmittee between regular meetings, if time permits, the executive committee shall refer that matter to the board of directors and request the chairman to call a special meeting of the board of directors.”

“The organization entered into a ten-year management services agreement with the charlotte-mecklenburg hospital authority dba carolinas healthcare system (chs) on july 1, 2011. Under the terms of the agreement, the current board of directors will continue to govern while the executive officers (ceo,cfo,coo, and cno) will become employees of chs. The organization reimburses chs the salary and benefit cost of these individuals. The organization is utilizing part vii and schedule j of the form 990 to report the compensation paid to the ceo, cfo, and coo by the management company for services provided to the filing organization. The compensation has been reported in the filing organization's compensation columns.”

“The 990 was reviewed by the independent return preparer with the board of directors with a question and answer period at a board meeting prior to filing the return.”

“The organization requires board members to sign a conflict of interest policy annually. It is the responsibility of each member to disclose any potential conflicts and remove himself from situations with a potential conflict.”

“The process for determing compensation for the ceo and cfo entails a review of performance by the executive committee of the board of trustees. Conducting a compensation benchmark study by an independent recognized third party, and a review of compensation by carolinas healthcare system's compensation committe of the board of directors. Final approval is then made and documented by the murphy medical center board of trustees.”

“In addition, recent filings of the form 990 are made available online at www.guidestar.com.”

“The organization makes its governing documents, financial statements, and conflict of interest policy available to the public upon request.”

“Purchased services: program service expenses 2,361,071. Management and general expenses 590,268. Fundraising expenses 0. Total expenses 2,951,339. Contract services: program service expenses 3,274,090. Management and general expenses 818,522. Fundraising expenses 0. Total expenses 4,092,612. Consultant fees: program service expenses 99,669. Management and general expenses 24,917. Fundraising expenses 0. Total expenses 124,586. Professional fees: program service expenses 662,319. Management and general expenses 165,580. Fundraising expenses 0. Total expenses 827,899. Other professional fees: program service expenses 119,619. Management and general expenses 29,905. Fundraising expenses 0. Total expenses 149,524.”

“This process has not changed from prior years.”