Coastal Care Corporation

“Executive compensation at martin memorial health system ("mmhs") is governed and controlled by the compensation & retirement committee of the board of directors according to policies set by the board as a whole. The committee is made up entirely of community leaders, none of whom are employed by coastal care corporation ("ccc"). The committee determines pay levels at mmhs in comparison with other not-for-profit hospitals and health systems like mmhs in size and complexity and which serve similar types of communities. It looks at national data but also takes into consideration data from similar health systems in the southeast region of the country. The committee reviews comparability data on salary levels, incentive pay, and benefit costs, assessing each element of compensation independently and total compensation in aggregate. The committee retains independent consultants to gather comparability data on executive compensation in the mmhs' peer group. These consultants regularly assist the committee in making its determination that executive compensation at mmhs remains reasonable and consistent with the board-approved mmhs executive compensation philosophy. Compensation reported in the form 990, particularly benefit costs, may be confusing, especially when making comparisons from one organization to another or even from one year to another for the same organization. Retirement benefit costs vary widely depending on the type of plan - defined benefit or contribution, and the age and tenure of the executive. The committee diligently follows best practices in governing executive compensation, including the process prescribed by the irs for governing executive compensation in the tax-exempt sector. It is committed to accurately disclosing executive compensation on form 990.”

“Compensation of department director follows the same process as described in part vi, line 15a.”

“Martin Memorial Health Systems, Inc., a 501(c)(3) tax exempt corporation, is the sole member of Coastal Care Corporation.”

“The Members of Martin Memorial Health Systems, Inc. may elect, remove or replace the members of the governing body.”

“The Board of Directors may not without prior approval of the Sole Member of the Corporation: 1. Adopt any annual or long-term capital or operational budget or any changes therein exceeding 5% of the total original budget; 2. Authorize the Corporation to enter into any contract or engage in any transaction which is not provided for in an annual or long-term capital or operational budget approved by the Sole Member when the amount involved exceeds $100,000; 3. Adopt any new, or any changes to the existing, long-term or master institutional plans of the Corporation; 4. Authorize the Corporation to engage in or enter into any transaction provided for or requiring a Certificate of Need; 5. Adopt a plan of dissolution of the Corporation; 6. Authorize the Corporation to engage in or enter into any transaction providing for the sale, lease, mortgage or other disposition of assets of the Corporation not contemplated as part of the capital or operating budgets. However, it is understood that this does not preclude the sale of fully depreciated assets or assets to be scrapped and taken out of service or assets to be traded in on the purchase of new assets approved of as part of the budgeting process; 7. Adopt a plan of merger or consolidation of the Corporation with another corporation; or 8. Organize, acquire, or authorize the organization or acquisition of, any subsidiary or affiliate of the Corporation ("affiliate" shall include any corporation, association, partnership, trust, joint venture, or other entity directly or indirectly controlling, controlled by or under common control with the Corporation). 9. Amend the articles of incorporation or bylaws.”

“The Form 990 is e-mailed (mailed if the director does not have e-Mail) to all members of the Board of Directors prior to the Form 990 being filed. The Form 990 also goes through a process where the Asst Treasurer/CFO and the President of Martin Memorial review the 990 to ensure the accuracy and completeness of the return prior to it being filed.”

“The Corporate Compliance Officer surveys each director, officer and key employee of Coastal Care Corporation and related affiliated companies. These annual surveys are designed to determine if any potential conflicts of interest exist. The Corporate Compliance officer educates board members, officers and key employees of their responsibility to report any possible conflicts of interest that may arise between annual surveys. The Corporate Compliance Officer also monitors and investigates any possible conflicts that may arise. If a potential or actual conflict of interest exists, the individual with the conflict will abstain from voting on any issues or participating in discussions that are related to the conflict of interest.”

“Coastal Care Corporation does not make its governing documents, conflict of interest policy, or financial statements available to the public.”

“(Expenses $ 1,114,102 including grants of $)(Revenue $ 1,469,174) COASTAL CARE PROVIDED MEDICAL TRANSPORT FOR PATIENTS THAT REQUIRE MEDICAL TRANSPORT BETWEEN FACILITIES. COASTAL CARE ALSO PROVIDES FACILITIES ON THE CAMPUS OF MARTIN MEMORIAL HOSPITAL SOUTH, AN AFFILIATED TAX EXEMPT HOSPITAL. COASTAL CARE PROVIDES FACILITIES ON THE CAMPUS OF MARTIN MEMORIAL HOSPITAL SOUTH, AN AFFILIATED TAX EXEMPT HOSPITAL, TO A SKILLED NURSING FACILITY WITH NET RENTAL INCOME OF $497,195. COASTAL CARE RENTS SPACE TO AFFILIATED ORGANIZATIONS THAT PROVIDE PATIENT SERVICES TO THE LOCAL COMMUNITIES.”

“OTHER FEES FOR SERVICES - Total Expense: 3566671, Program Service Expense: 3178752, Management and General Expenses: 387919, Fundraising Expenses: ;”

“Transfers to affiliates - -2489926;”

“The audit of Coastal Care Corporation is part of a consolidated audit with its affiliates. The Audit Committee of Martin Memorial Health Systems has the responsibility for the oversight of the audit and the selection of an independent accountant. The Audit committee is made up of members of the Board of Directors of Martin Memorial Health Systems, Inc., the sole member of Coastal Care Corporation.”