Caromont Health Inc.

“Board member independence: in calendar year 2014, the board of directors of caromont health conducted a comprehensive review of best practices regarding independence of board members. This review resulted in the development of a board policy on independence of board members. Using irs regulations and guidance, industry best practices, guidance and commentary applicable to non-profit healthcare institutions, and advice of counsel, the board of directors developed and implemented a robust policy that defines independent and non-independent directors and classifies directors on an annual basis as independent and non-independent. Using the irs reporting requirements as a minimum set of criteria for determining the independent status of board members, the board's policy goes beyond the minimum criteria and defines additional criteria that render a board member non-independent. Once determined to have a disqualifying condition that renders the member non-independent, a board member whose disqualifying condition has been remedied may only be restored to independent status following a specified time limit defined in the policy. In reporting the number of independent directors in part i, line 4 and part vi, section a, line 1b, the board of directors has determined that it will report the number determined by its policy, recognizing that this may be a stricter interpretation than the irs requires. In seating board committees, such as the executive compensation committee and the audit finance and investment committee, the board determines a director's eligibility to serve on those committees based on application of the board's definition of independence.”

“Board members dr. Charles meakin, iii and mr. James r. Beam have a business relationship.”

“Caromont health board of directors (the board) are appointed by the board of commissioners of gaston county. The board then appoints the board of directors of each of the affiliated entities.”

“The organization's form 990 was reviewed by the audit finance investment committee of the board of directors prior to presentation to the full board before the form was filed with the irs.”

“Each employee and director shall fully and truthfully complete a questionnaire concerning potential and actual conflicts of interest annually. Such questionnaire shall identify the individual's obligation to immediately make the corporate responsibility officer aware in writing of any potential or actual conflicts of interest as they may arise and contain said individual's agreement to abide by all terms and conditions of this policy as a condition of retaining their position. Such questionnaires are reviewed annually by the chief legal officer and the corporate responsibility officer. Questionnaires submitted by directors are reviewed annually by the nominating committee of the board.”

“The ceo, cfo, coo and chief legal officer are compensated for their services by caromont regional medical center, a subsidiary of caromont health, inc. The compensation of all caromont executives for each year is established by the compensation committee of the caromont health board of directors, based on guidance and opinions provided by an independent, third-party compensation consultant. Pursuant to the committee charter for the compensation committee of the board, the board of directors approves the executive compensation philosophy, which establishes the parameters for all executive compensation decisions. The board of directors delegates all compensation decisions for all executives to the compensation committee, provided such decisions are consistent with the compensation philosophy. Board approval must be obtained when compensation decisions deviate from the compensation philosophy. Board members who serve on the compensation committee are independent and free of any conflict of interest. Any compensation committee member who develops a conflict of interest during his/her term with respect to the discussion of any executive's compensation leaves the meeting and does not participate in the discussion or decision-making by the remaining independent members of the compensation committee. The compensation committee retains jurisdiction over the total compensation package for executives and reviews executive benefits and perquisites as well as total cash compensation. Compensation for the ceo is established through a process of performance evaluation, comparison with comparable market data and determination by the compensation committee of acceptable salary range and percentile ranking. All compensation decisions for the ceo are approved by the compensation committee, as long as the compensation decisions are consistent with the executive compensation philosophy. The process for determining compensation for executive management utilizes compensation surveys and studies. Full collected compensation information and any compensation opinions provided during these processes will be kept with the compensation committee or board minutes, as applicable.”

“The organization's form 990 is made available to the public upon request.”

“At this time, the organization's governing documents and conflict of interest policy are not made available to the public. The entire organization's combined financial statements are made available upon request.”

“Caromont health is a common paymaster as defined in regulations section 31.3121(s)-(1)(b) for several organizations. All w-2s are filed by the common paymaster. However, amounts paid by the common paymaster are treated as if paid directly by the organization for which services are performed.”

“Caromont health is a not-for-profit health system headquartered in gastonia, nc that provides inpatient and outpatient medical services within five counties and two states. Caromont health employs nearly 4,000 healthcare professionals with a medical staff membership of more than 450. Caromont regional medical center, a magnet designated 435-bed acute care hospital, is the anchor of caromont health and features a state-of-the-art cancer center, birthplace and neonatal intensive care unit, as well as a level iii trauma center and a comprehensive system of care. As an innovative leader in health care, caromont health has been awarded many top honors in 2014. Some key achievements in 2014 include being named a 100 top hospital by becker's hospital review and a best regional hospital by the u. S. News & world report. Additionally, caromont health was recognized by prevention partners for our commitment to providing comprehensive wellness programs to our employees, earning us the healthcare in excellence award. Caromont health's mission is to provide exceptional health care to the communities we serve, and we strive to fulfill that mission every day. This report is intended to share some of the many ways that caromont health gives back to our community. Internal programs and community care caromont health has provided health care to residents of gastonia, gaston county and surrounding counties for more than 70 years. Whether it is the latest technology, care model or wellness initiative, caromont health is constantly looking for ways to improve and provide our community the best care possible to keep them healthy for generations to come. Research programs caromont health participated in a number of national research trials and programs in 2014. Caromont invested $1.5 million, $809,000 of which was unreimbursed, in these programs for treatments, procedures, medications and staff time. Research programs are the key to innovation and advancement in health care and caromont health is dedicated to supporting our medical professionals in the pursuit of new treatments. Physician recruitment & retention caromont boasts a robust and talented medical staff of more than 450 physicians. Many caromont health physicians, from a number of disciplines, are recognized regionally and nationally for their work and achievements. Caromont health consistently seeks to recruit leaders in the field of medicine and invests in the medical staff in a number of ways, including attendance at industry conferences and offering continuing education opportunities. In 2014, caromont invested $804,374 to recruit, train and retain highly-skilled physicians to provide nationally-recognized, high-quality care. Unreimbursed costs of care in 2014, caromont health had $67.8 million in unreimbursed health care costs. This amount covers all forms of unreimbursed care, including more than $11.7 million in charity care, $37.6 million in medicare and medicaid losses, and $18.5 in bad debt. Caromont provides care to all patients, regardless of their ability to pay. The charity care and bad debt totals reflect the amount that is not reimbursed, either by the inability or choice not to pay. The medicare and medicaid losses reflect the cost of care provided that was not paid for by either the applicable government program or the patient. Community health improvement initiatives & investments caromont health is active in our community in a number of ways including donations, investments and volunteerism. In the last fiscal year, caromont invested more than $3 million in our community through health improvement services, community benefit operations, donations, and in-kind contributions of goods and services. In fiscal year 2014, caromont provided $300,000 to gaston family health services, a local federally qualified healthcare clinic that provides healthcare, health education, and preventive care services to patients without regards to their ability to pay. Student education caromon”

“Transfers from related organizations 25,481,222. Unrealized gain on interest rate swap 742,884.”

“This process has not changed from prior years.”