Usc Health System

FORM 990-EZ, PART III, ORGANIZATION'S PRIMARY ACTIVITY

“The Corporation was established on November 21, 2019 as a California nonprofit public benefit corporation to (i) organize, coordinate, direct and operate an integrated health care system for the delivery of health care services by those hospitals and other health care providers that become affiliated with, or related to, the Corporation, (ii) enhance the accessibility, quality and cost-effectiveness of health care services related to the communities served by the Corporation and its affiliates, and (iii) encourage and participate in activities designed and carried on to provide and improve the general public health and health of patients served by the Corporation and its affiliates. As set forth in further detail, below, the Corporation satisfies the requirements for recognition of exemption from federal income tax pursuant to section 501(c)(3) of the Internal Revenue Code of 1986, as amended (the Code) and the Treasury regulations issued thereunder (the Regulations). Additionally, the Corporation qualifies as a public charity pursuant to Code section 509(a)(3) as a Type III functionally integrated supporting organization for the University of Southern California (USC), a California nonprofit public benefit corporation that is a tax-exempt organization described in Sections 501(c)(3) and 509(a)(1) of the Code. The Corporation was formed to act as the parent organization of an integrated tax-exempt health care system (the Health System) serving the communities of Pasadena and San Gabriel Valley, California. USC is the sole corporate member of the Corporation. The Corporation will spend 100% of its time working to oversee the operations of the Health System in order to create a robust, locally controlled, and high-quality delivery system that serves Pasadena and the San Gabriel Valley. As the parent organization of the Health System, the Corporation will ensure that the Health System operates in the most effective and efficient manner and provides the highest quality care for the communities that it serves. In particular, the Corporation will establish and approve any programs, policies or procedures relating to operational matters of the Health System, including without limitation quality of care objectives, and will approve annual operating and capital budgets of the Hospital Entities in addition to providing strategic planning services. The Corporation intends to fund its activities through payments it will receive from its supported organizations for centralized support activities performed by the Corporation for those supported organizations.”