2023-11-14T12:09:43-06:00 2022-12-31 346565596 ERNST & YOUNG US LLP 55 IVAN ALLEN JR BLVD SUITE 1000 ATLANTA GA 30308 990 2022-01-01 561373175 FOUNDATION HEALTH SYSTEMS CORP FOUN 3362772411 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 GEOFFREY GARDNER CFO 3367182803 2023-11-14 1 GEOFFREY GARDNER 999009999 0 AERRIAL M ORR P01598400 4048748300 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z CARL ARMATO 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 90999610 0 X WWW.NOVANTHEALTH.ORG X 1983 NC SEE SCHEDULE O 6 5 705 9 0 0 516958 500000 91884331 90039281 -112300 353144 16778 48755 92305767 90941180 26646 500 0 0 42465331 45360145 0 0 0 39223941 102007607 81715918 147368252 10589849 -56427072 284421963 259818742 19393489 19942084 265028474 239876658 X SEE SCHEDULE O 0 1 123425278 500 80374575 TO PROMOTE HEALTHCARE WITHIN THE COMMUNITY SERVED BY PROVIDING OUTPATIENT SURGICAL SERVICES, DIAGNOSTIC SERVICES, MAMMOGRAPHY SERVICES, REHABILITATION SERVICES, AND WOMEN'S SERVICES TO LOW INCOME GROUPS. THE FACILITIES MAINTAIN AN OPEN DOOR POLICY AND STRIVE TO SERVE THE INDIVIDUALS IN THE COMMUNITY WITH THE GREATEST NEEDS. DURING 2022 FOUNDATION HEALTH SYSTEMS HAD A COMBINED TOTAL OF 667,192 OUTPATIENT ENCOUNTERS. 9713461 9713461 FOUNDATION HEALTH SYSTEM CORP PROVIDES PRE-AUTHORIZATION, SCHEDULING, AND ADMINISTRATIVE SERVICES TO RELATED TAX EXEMPT ORGANIZATIONS FOR THE PROVISION OF HEALTHCARE SERVICES. 133138739 1 1 0 0 0 0 0 0 0 0 1 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 1 0 0 705 1 0 0 0 0 0 0 0 0 0 0 0 0 X 6 5 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 1 1 NC X WENDI STOCKSTILL 3362772411 2085 FRONTIS PLAZA BLVD WINSTON SALEM NC 27103 X ERIC ESKIOGLU MD TRUSTEE (UNTIL 12/9/2022) 0.20 50.00 X 0 1748678 56075 PAMELA OLIVER MD EVP & PRES PHYS NETWORK/TRUSTEE 0.20 50.00 X X 0 1304291 197764 ROBERT BARR MD SECRETARY/TREASURER 0.20 0.20 X X 0 468 0 JOSEPH ELY VICE CHAIR 0.20 0.20 X X 0 115 0 DANIEL MURPHY MD CHAIR 0.20 0.20 X X 0 0 0 DANIELLE SQUIRES TRUSTEE 0.20 0.20 X 0 0 0 DOUGLAS YOUNG PHD TRUSTEE 0.20 0.20 X 0 0 0 FRED HARGETT EVP & CFO 0.20 50.00 X 0 2355664 61852 WALTER HATCHER RADIOLOGIST 45.00 0.00 X 470038 0 43086 DANIEL GORDON RADIOLOGIST 45.00 0.00 X 468213 0 42648 SCOTT MCGRAW RADIOLOGIST 45.00 0.00 X 464754 0 55984 SERENA GILPIN SR DIR RADIOLOGY SCHEDULING 45.00 0.00 X 169377 0 42660 CYNTHIA PIERCE MOBILE MRI TECH 45.00 0.00 X 139526 0 19185 1711908 5409216 519254 36 0 1 0 TRIMEDX INC PO BOX 636129 CINCINNATI OH 45263 CLINICAL ENGINEERING SERVICES 3269569 IMAGEFIRST HEALTHCARE LAUNDRY SPECIALIST PO BOX 61323 KING OF PRUSSIA PA 19406 LAUNDRY SERVICE 218143 LANGUAGE RESOURCE CENTER PO BOX 18066 CHARLOTTE NC 28218 INTERPRETER SERVICES 154206 DPS TELECOM SERVICES 3401 MALLORY LANE FRANKLIN TN 37067 REMOTE MONITORING SERVICES 144922 4 500000 500000 NET PATIENT REVENUE 621111 80134249 80134249 MEDICAL SCHEDULING 900099 9713461 9713461 PASS-THRU PATIENT REVENUE 621111 191571 191571 90039281 2424 2424 409150 58430 350720 350720 350720 MISCELLANEOUS REVENUE 900099 41755 41755 PRECEPTOR REVENUE 900099 7000 7000 48755 90941180 90088036 0 353144 X 500 500 34821859 33080766 1741093 1467291 1393926 73365 6321284 6024047 297237 2749711 2612226 137485 136236 136236 11913622 7709986 4203636 405565 404182 1383 1388140 764535 623605 1028190 1016027 12163 4757134 3026885 1730249 381763 349986 31777 23411 22241 1170 55782 14683 41099 6590435 6042638 547797 607278 520010 87268 GOODWILL IMPAIRMENT 62939283 62939283 REPAIRS AND MAINTENANCE 3481342 3475182 6160 BILLING FEES 2843222 2843222 MEDICAL SUPPLIES 2283987 2280966 3021 3172217 1460670 1711547 147368252 133138739 14229513 0 6207 31186 8826190 81820278 99817 114237 302240 311607 9782971 6867874 13236423 2915097 185751 83877738 174672903 87092432 90748599 284421963 259818742 7479496 6376919 11913993 13565165 19393489 19942084 X 265028474 239876658 265028474 239876658 284421963 259818742 X -56427072 31275256 X 0 1 X 1 1 1 X 500000 500000 2289257 516958 500000 4306215 76491892 81218650 74121008 91901109 90088036 413820695 76991892 81718650 76410265 92418067 90588036 418126910 0 0 0 418126910 2532 3273 25832 26770 2424 60831 2532 3273 25832 26770 2424 60831 76994424 81721923 76436097 92444837 90590460 418187741 0.99990 0.99910 0.00010 0.00090 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 321947 321947 3032046 2519256 512790 3526648 2217801 1308847 2790825 2038439 752386 111505 92378 19127 2915097 INVESTMENT IN AFFILIATES 83877738 C 83877738 DUE FROM AFFILIATES 79081211 RIGHT OF USE ASSETS 11667388 90748599 0 REFUND LIABILITY 529447 OTHER LIABILITIES 1065779 OPERATING LEASE 11969939 13565165 X PART X, LINE 2: PART X, LINE 2: LIABILITY UNDER FIN 48 (ASC 740) FOOTNOTE THE AUDIT FOR NOVANT HEALTH AND ITS AFFILIATES IS PREPARED ON A CONSOLIDATED BASIS. THE COMPANY IS REQUIRED TO EVALUATE UNCERTAIN TAX POSITIONS. THIS EVALUATION INCLUDES A QUANTIFICATION OF TAX RISK IN AREAS SUCH AS UNRELATED BUSINESS TAXABLE INCOME AND THE TAXATION OF OUR FOR-PROFIT SUBSIDIARIES. THIS EVALUATION DID NOT HAVE A MATERIAL EFFECT ON THE COMPANY'S CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021. X X X X 1 1 0 1 0 0 0 0 0 0 0 FRED HARGETT EVP & CFO 0 1092939 0 843828 0 418897 0 18300 0 43552 0 2417516 0 7500 ERIC ESKIOGLU MD TRUSTEE (UNTIL 12/9/2022) 0 822425 0 721758 0 204495 0 18300 0 37775 0 1804753 0 123375 PAMELA OLIVER MD EVP & PRES PHYS NETWORK/TRUSTEE 0 701293 0 541038 0 61960 0 163933 0 33831 0 1502055 0 7500 SCOTT MCGRAW RADIOLOGIST 418751 0 11440 0 34563 0 18300 0 37684 0 520738 0 7500 0 WALTER HATCHER RADIOLOGIST 423516 0 10270 0 36252 0 18300 0 24786 0 513124 0 7500 0 DANIEL GORDON RADIOLOGIST 424273 0 9265 0 34675 0 18300 0 24348 0 510861 0 7500 0 SERENA GILPIN SR DIR RADIOLOGY SCHEDULING 146328 0 22548 0 501 0 8896 0 33764 0 212037 0 0 0 CYNTHIA PIERCE MOBILE MRI TECH 136135 0 1803 0 1588 0 8373 0 10812 0 158711 0 0 0 PART I, LINE 1A FRINGE OR EXPENSE EXPLANATION FIRST-CLASS OR CHARTER TRAVEL: FIRST-CLASS OR CHARTER TRAVEL IS NOT A COVERED TRAVEL EXPENSE FOR EXECUTIVES; THEY ARE LIMITED TO BUSINESS OR COACH CLASS FARES FOR COMMERCIAL FLIGHTS. HOWEVER, CHARTER TRAVEL IS AVAILABLE TO CERTAIN EXECUTIVES, BOARD MEMBERS, AND APPROVED BUSINESS PERSONNEL MEETING APPLICABLE POLICY CRITERIA. TRAVEL FOR COMPANIONS: COMPANIONS ARE ALLOWED ON CERTAIN CHARTER FLIGHTS PAID FOR BY THE ORGANIZATION. IN THAT CASE, THE VALUE OF THE COMPANION'S FLIGHT IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S TAXABLE INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. DISCRETIONARY SPENDING ACCOUNT: CERTAIN EXECUTIVES RECEIVE A DISCRETIONARY SPENDING ACCOUNT. THE DOLLAR AMOUNT IN THE ACCOUNT IS PRE-APPROVED BY THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE NOVANT HEALTH BOARD OF TRUSTEES. THE EXECUTIVE MAY DEFER THE AMOUNT TO A RETIREMENT ACCOUNT OR THE AMOUNT IS TREATED AS COMPENSATION AND IS SPREAD OUT OVER THE COURSE OF THE YEAR IN THE EXECUTIVE'S PAYCHECKS AS TAXABLE INCOME. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: WE PROVIDE TEMPORARY HOUSING ALLOWANCES IN CERTAIN EXECUTIVE RECRUITMENT AND RELOCATION PACKAGES. THE VALUE IS CALCULATED UNDER APPLICABLE TAX LAWS AND THAT AMOUNT IS INCLUDED IN THE EXECUTIVE'S INCOME AS PRESCRIBED BY THE APPLICABLE TAX LAWS. PART I, LINE 3 THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM AND RELIES UPON NOVANT HEALTH, INC., THE PARENT ORGANIZATION, TO USE THE PROCESS DESCRIBED IN PART VI, LINE 15A/15B OF THIS RETURN TO ESTABLISH COMPENSATION FOR CERTAIN EXECUTIVES. THIS PROCESS ADHERES TO THE REQUIREMENTS SET FORTH TO SECURE THE REBUTTABLE PRESUMPTION OF REASONABLENESS AND INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT AND DISINTERESTED MEMBERS OF A COMPENSATION COMMITTEE, CONSULTATION WITH INDEPENDENT COMPENSATION CONSULTANTS, THE UTILIZATION OF THIRD-PARTY COMPARABILITY DATA SUCH AS PUBLISHED COMPENSATION SURVEYS, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. PART I, LINE 4B PART I, LINES 4A-C: SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SEVERANCE NONE NONQUALIFIED ERIC ESKIOGLU $126,073 DANIEL GORDON $10,746 FRED HARGETT $11,892 WALTER HATCHER $10,483 SCOTT MCGRAW $10,849 PAMELA OLIVER $11,892 EQUITY-BASED NONE PART I, LINE 4B SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS: THE SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ("SERP") IS INTENDED TO SUPPORT RETENTION OF KEY EXECUTIVES, AND TO OFFER COMPETITIVE TOTAL COMPENSATION. GENERALLY, ANNUAL CONTRIBUTIONS TO THE PLAN OR PAYMENTS TO PARTICIPANTS WILL BE BASED ON A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AS OF JANUARY 1ST OF THE PREVIOUS PLAN YEAR AND ARE REPORTED IN COLUMN (C) OF SCHEDULE J. PRIOR TO MAKING THE CONTRIBUTIONS OR PAYMENTS, THE NOVANT HEALTH COMPENSATION AND LEADERSHIP COMMITTEE ("COMMITTEE") WILL APPROVE THE AMOUNTS AS TO REASONABLENESS, WHEN COMBINED WITH ALL OTHER ANNUAL COMPENSATION. A 3 YEAR CLASS-YEAR VESTING PERIOD WILL APPLY UP TO AGE 62, WHEN ALL MONEY WOULD BE VESTED AND PAID OUT TO THE PARTICIPANT. OTHERWISE, VESTING WILL OCCUR ON JANUARY 1ST OF EACH YEAR FOR THE APPROPRIATE CLASS-YEAR VESTING PERIOD. THE COMMITTEE REVIEWS, APPROVES, AND OVERSEES ALL ASPECTS AND ALL ELEMENTS OF EXECUTIVE COMPENSATION AND BENEFITS. FORM 990, PI, L1: ORGANIZATION'S MISSION OR MOST SIGNIFICANT ACTIVITIES FOUNDATION HEALTH SYSTEMS CORP. IS AN INTEGRAL PART OF THE NOVANT HEALTH SYSTEM (COLLECTIVELY KNOWN AS "NOVANT HEALTH"), A NOT-FOR-PROFIT INTEGRATED GROUP OF HOSPITALS, PHYSICIAN CLINICS, OUTPATIENT CENTERS AND OTHER HEALTHCARE SERVICE PROVIDERS. THE NOVANT HEALTH NETWORK CONSISTS OF MORE THAN 1,800 PHYSICIANS AND OVER 35,000 TEAM MEMBERS THAT PROVIDE CARE AT NEARLY 800 LOCATIONS, INCLUDING 15 MEDICAL CENTERS AND HUNDREDS OF OUTPATIENT FACILITIES AND PHYSICIAN CLINICS. HEADQUARTERED IN WINSTON SALEM, NORTH CAROLINA, NOVANT HEALTH IS COMMITTED TO MAKING HEALTHCARE REMARKABLE FOR PATIENTS AND COMMUNITIES PROVIDING NEARLY SIX MILLION PATIENT VISITS ANNUALLY. IN 2022, THE NOVANT HEALTH SYSTEM REPORTED $7.6 BILLION IN REVENUES. GENERAL INFORMATION FOUNDATION HEALTH SYSTEMS CORP. INCLUDES NOVANT HEALTH REHABILITATION CENTER AND NOVANT HEALTH TODAY'S WOMAN OBSTETRICS AND GYNECOLOGY (OB/GYN), BOTH LOCATED IN THE TRIAD AREA OF NORTH CAROLINA. IT ALSO INCLUDES NORTH CAROLINA DIAGNOSTIC IMAGING, A GROUP OF IMAGING CENTERS LOCATED THROUGHOUT NORTH CAROLINA. THE MISSION OF THE NOVANT HEALTH REHABILITATION CENTER IS TO OPTIMIZE THE QUALITY OF LIFE AND ABILITIES OF PATIENTS AND TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE, ONE PERSON AT A TIME. PHYSICAL THERAPY, VESTIBULAR THERAPY, OCCUPATIONAL THERAPY AND SPEECH THERAPY SERVICES ARE PROVIDED AT MULTIPLE LOCATIONS, WHICH HELP TO ENSURE CONVENIENT ACCESS TO SERVICES FOR PATIENTS WHO LIVE IN BOTH URBAN AND RURAL AREAS OF THE TRIAD. IN THE GREATER WINSTON-SALEM AREA, WE HAVE A CONCENTRATED FOCUS ON ZIP CODES IN EAST WINSTON, CLEMMONS AND KERNERSVILLE WHERE 1 IN 4 COMMUNITY MEMBERS LIVE AT OR BELOW THE FEDERAL POVERTY LINE. NOVANT HEALTH TODAY'S WOMAN OB/GYN SERVES OUR MOST VULNERABLE COMMUNITY MEMBERS, OFFERING COMPREHENSIVE BEHAVIORAL HEALTH, SOCIAL WORK AND FAMILY PLANNING CARE. THE CLINIC ALSO OFFERS PRENATAL AND CHILDBIRTH CLASSES, COST FREE TRANSPORTATION SERVICES TO AND FROM APPOINTMENTS, AND OUR DESIGNATED OUTREACH RESOURCE SPECIALISTS ASSISTS FAMILIES WITH OBTAINING DIAPERS FROM THE DIAPER BANK OF NC, SUPPLIES EMERGENCY FOOD PACKS FOR FAMILIES WITH FOOD INSECURITY, AND OFFERS DONATED SUPPLIES FOR MOM AND BABY. NORTH CAROLINA DIAGNOSTIC IMAGING IS COMPRISED OF OUTPATIENT IMAGING CENTERS LOCATED THROUGHOUT NORTH CAROLINA. AS PART OF THE NOVANT HEALTH SYSTEM, THESE IMAGING CENTERS ARE COMMITTED TO IMPROVING THE HEALTH OF THE COMMUNITIES THEY SERVE. BY BRINGING TOGETHER WORLD-CLASS TECHNOLOGY AND CLINICIANS TO PROVIDE QUALITY CARE, WE ARE COMMITTED TO CREATING A HEALTHCARE EXPERIENCE THAT IS SIMPLER, MORE CONVENIENT AND MORE AFFORDABLE SO PATIENTS CAN FOCUS ON GETTING BETTER AND STAYING HEALTHY. IN ADDITION TO OUR QUALITY OF SERVICES AND COMPREHENSIVE CATEGORIES OF SERVICES, WE'RE VERY PROUD OF OUR PATIENT FINANCIAL ASSISTANCE PROGRAM. WE WORK WITH CUSTOMERS TO HELP QUALIFY THEM FOR PUBLIC ASSISTANCE, ESTABLISH A REASONABLE PAYMENT PLAN, DISCOUNT THEIR BILL, OR PROVIDE FREE CARE FOR THOSE THAT QUALIFY FOR FINANCIAL ASSISTANCE. NEW TECHNOLOGY & SERVICES IN 2022, NOVANT HEALTH REHABILITATION CENTER ENHANCED ITS TECHNOLOGY PORTFOLIO BY ADDING EQUIPMENT FROM MEDITOUCH USA AND SAEBO, INC., TWO LEADING HEALTHCARE REHABILITATION TECHNOLOGY COMPANIES. MEDITOUCH PRODUCTS INCLUDE BALANCETUTOR, A NEW TECHNOLOGY THAT ALLOWS THE THERAPIST TO CREATE A POSTURAL PERTURBATION, SUCH AS A SLIP OR A TRIP. ITS ADVANCED TECHNOLOGY UTILIZES THE PLATFORM'S MOVEMENT IN A MEDIAL/LATERAL AND FORWARD/BACKWARD DIRECTION WHILE THE PATIENT IS STANDING, WALKING OR RUNNING ALLOWING CUSTOMIZED POSTURAL CONTROL PRACTICE IN THE SPECIFIC GAIT PHASE THAT THE THERAPIST CHOOSES TO FOCUS ON. THIS ALLOWS FOR A VAST RANGE OF PHYSICAL THERAPY INDICATIONS. IT IS THE ONLY REHABILITATION SYSTEM THAT EMPLOYS AN ADVANCED 4D PERTURBATION PATENTED TREADMILL, MULTIPLE FORCE AND MOVEMENT SENSORS AND CUSTOMIZED MOTIVATIONAL VIDEO GAMES. SAEBO PRODUCTS INCLUDE A RANGE OF PRODUCTS, PRIMARILY ONES DESIGNED TO ASSIST WITH HAND, ARM, LIMB, AND FOOT MOVEMENT. SAEBO PRODUCTS ARE DESIGNED TO WORK SEAMLESSLY IN THE CLINIC AS WELL AS AT HOME. COMMUNITY OUTREACH RESOURCES INCLUDED MYCOMMUNITY ACCESS AND PRINTED RESOURCE CARDS FOR ANYONE TO SEARCH FOR LOCAL FREE AND REDUCED COST SERVICES. IN-KIND DONATIONS WERE MADE AT FOOD AND BLOOD DRIVES. COMMUNITY BENEFIT REPORT HTTPS://WWW.NOVANTHEALTH.ORG/ABOUT/COMMUNITY/COMMUNITY-HEALTH-NEEDS/ THE COMMUNITY BENEFIT REPORT, REFERRED TO AS A COMMUNITY IMPACT REPORT, PREPARED BY NOVANT HEALTH IS A SYSTEM-WIDE REPORT THAT INCLUDES QUALITATIVE AND QUANTITATIVE INFORMATION. PLEASE NOTE THAT THE NUMERIC DATA IN THIS REPORT IS NOT BASED UPON THE FORM 990, SCHEDULE H CRITERIA, BUT RATHER IT HAS BEEN PREPARED IN ACCORDANCE WITH THE NORTH CAROLINA HEALTHCARE ASSOCIATION REPORTING GUIDELINES. IT SHOULD NOT BE RELIED UPON AS THE ORGANIZATION'S FORM 990, SCHEDULE H COMMUNITY BENEFIT REPORT, ITS COMMUNITY HEALTH NEEDS ASSESSMENT OR COMMUNITY BENEFIT IMPLEMENTATION STRATEGY. IN THIS REPORT, THE NOVANT HEALTH SYSTEM'S COMMUNITY BENEFIT WAS APPROXIMATELY $1,566,000,000, INCLUDING $213,000,000 IN FINANCIAL ASSISTANCE FOR 2022. FORM 990, PART III, LINE 1: MISSION, VISION AND VALUES MISSION NOVANT HEALTH EXISTS TO IMPROVE THE HEALTH OF OUR COMMUNITIES, ONE PERSON AT A TIME. VISION WE, THE NOVANT HEALTH TEAM, WILL DELIVER THE MOST REMARKABLE PATIENT EXPERIENCE, IN EVERY DIMENSION, EVERY TIME. VALUES -COMPASSION: WE TREAT OUR CUSTOMERS AND THEIR FAMILIES, STAFF AND OTHER HEALTHCARE PROVIDERS AS FAMILY MEMBERS WITH KINDNESS, PATIENCE, EMPATHY AND RESPECT. -DIVERSITY AND INCLUSION: WE RECOGNIZE THAT EVERY PERSON IS DIFFERENT, EACH SHAPED BY UNIQUE LIFE EXPERIENCES. THIS ENABLES US TO BETTER UNDERSTAND EACH OTHER AND OUR CUSTOMERS. BY ENGAGING THE STRENGTHS AND TALENTS OF EACH TEAM MEMBER, WE ENSURE A STRONG ORGANIZATION CAPABLE OF PROVIDING REMARKABLE HEALTHCARE TO OUR PATIENTS, FAMILIES AND COMMUNITIES. -PERSONAL EXCELLENCE: WE STRIVE TO GROW PERSONALLY AND PROFESSIONALLY AND APPROACH EACH SERVICE OPPORTUNITY WITH A POSITIVE, FLEXIBLE ATTITUDE. HONESTY AND PERSONAL INTEGRITY GUIDE ALL WE DO. -TEAMWORK: THE NEEDS AND EXPECTATIONS OF ANY ONE CUSTOMER ARE GREATER THAN WHAT ONE PERSON'S SERVICE EFFORTS CAN SATISFY. WE SUPPORT EACH OTHER SO THAT TOGETHER AS A TEAM, WE CAN BE SUCCESSFUL IN THE EYE OF THE CUSTOMER AS A QUALITY SERVICE PROVIDER. -COURAGE: WE ACT BOLDLY IN MAKING THE CHANGES NECESSARY TO ACHIEVE OUR MISSION, VISION AND PROMISE OF DELIVERING REMARKABLE HEALTHCARE. -SAFETY: WE EMBRACE A CULTURE IN WHICH "FIRST, DO NO HARM" IS THE FOUNDATION OF REMARKABLE HEALTHCARE. OUR WORK ENVIRONMENT IS ONE OF OPEN COMMUNICATION, HIGH-RELIABILITY, AND A RELENTLESS QUEST TOWARD ZERO EVENTS OF PREVENTABLE HARM. OUR PEOPLE WE ARE AN INCLUSIVE TEAM OF PURPOSE-DRIVEN PEOPLE INSPIRED AND UNITED BY OUR PASSION TO CARE FOR EACH OTHER, OUR PATIENTS AND OUR COMMUNITIES. WE ALWAYS REMEMBER, OUR BUSINESS IS THE CARE OF ALL PEOPLE, STARTING WITH OUR TEAM MEMBERS. OUR PROMISE WE ARE RELENTLESSLY PURSUING REMARKABLE CARE EVERY DAY - SO YOU CAN EXPECT THE COMPASSIONATE, EXPERT, PERSONAL EXPERIENCE YOU DESERVE. FORM 990, PART III, LINE 3 ON DECEMBER 31, 2022, NOVANT HEALTH, OF WHICH FHS IS A PART, SOLD ITS ECONOMIC INTERESTS IN ITS NORTH CAROLINA IMAGING OPERATIONS AS WELL AS THE BUSINESS THAT PROVIDED MANAGEMENT SERVICES OF IMAGING OPERATIONS TO NOVANT HEALTH AND OTHERS. IN EXCHANGE, NOVANT HEALTH RECEIVED AN OWNERSHIP INTEREST IN NOVANT HEALTH-NORFOLK LLC AND AN OWNERSHIP INTEREST IN NORFOLK MANAGEMENT SERVICES LLC. THE NEWLY FORMED ENTITIES OWN THE ECONOMIC INTEREST IN AND OVERSEE MANAGEMENT OF THE IMAGING CENTERS. FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 6: CLASSES OF MEMBERS OR STOCKHOLDERS THE CORPORATION IS A NONPROFIT CORPORATION WITH MEMBERS (OR A MEMBER). NOVANT HEALTH, INC. (NHI) IS THE SOLE MEMBER OF FOUNDATION HEALTH SYSTEMS CORP. (FHSC). NOTWITHSTANDING ANYTHING CONTAINED IN THESE BYLAWS TO THE CONTRARY, THE CORPORATE POWERS OF FHSC AND THE AUTHORITY OF ITS TRUSTEES AND OFFICERS IS SUBJECT TO THE CONTROL OF NHI TO THE EXTENT SUCH CONTROL IS SPECIFICALLY DESIGNATED IN THE ARTICLES OF INCORPORATION AND BYLAWS OF NHI. FORM 990, PART VI, SECTION A, LINE 7A FROM 990, PART VI, SECTION A, LINE 7A: ELECTION OF MEMBERS AND THEIR RIGHTS NOVANT HEALTH, INC. ELECTS ALL MEMBERS OF THE GOVERNING BODY OF FOUNDATION HEALTH SYSTEMS CORPORATION'S BOARD. FORM 990, PART VI, SECTION A, LINE 7B FORM 990, PART VI, SECTION A, LINE 7B: DECISIONS SUBJECT TO APPROVAL OF MEMBERS NOVANT HEALTH, INC. HAS CERTAIN RESERVED POWERS, SUCH AS APPROVAL OF AMENDMENTS TO THE ARTICLES AND BYLAWS OF THE CORPORATION AND TO ADOPT CERTAIN POLICIES WHICH SHALL BE IMPLEMENTED BY THE CORPORATION BOARD. FORM 990, PART VI, SECTION B, LINE 11B FORM 990, PART VI, SECTION B, LINE 11: ORGANIZATION'S PROCESS TO REVIEW FORM 990 THE BOARD HAS DELEGATED REVIEW OF THE FORM 990 TO NOVANT HEALTH'S BOARD OF TRUSTEES' AUDIT AND COMPLIANCE COMMITTEE ("THE COMMITTEE"), WHICH OVERSEES TAX MATTERS FOR ENTITIES IN THE NOVANT HEALTH SYSTEM. THE COMMITTEE IS THE REVIEW BODY FOR ALL OF THE FORM 990S FILED FOR ORGANIZATIONS WITHIN THE NOVANT HEALTH SYSTEM. THE COMMITTEE MEETS BEFORE THE FORM 990S ARE FILED WITH THE IRS AND AFTER ALL BOARD MEMBERS HAVE BEEN PROVIDED A PAPER OR ELECTRONIC COPY OF THE FORM 990 AND A SUMMARY OF ITS CONTENTS. THE VICE PRESIDENT OF TAX AND LEGAL COUNSEL FOR NOVANT HEALTH ATTEND THE MEETING TO ANSWER ANY QUESTIONS AND ADDRESS ANY SIGNIFICANT DISCLOSURES WITHIN THE FORM 990. FORM 990, PART VI, SECTION B, LINE 12C FORM 990, PART VI, SECTION B, LINE 12C: MONITORING AND ENFORCEMENT OF COI THE ORGANIZATION'S TRUSTEE CONFLICT OF INTEREST POLICY APPLIES TO ALL TRUSTEES, PRINCIPAL OFFICERS OR MEMBERS OF A COMMITTEE WITH BOARD DELEGATED POWERS INCLUDING ANY APPLICABLE DISREGARDED ENTITIES. ALL TRUSTEES ARE SENT AN ANNUAL DISCLOSURE QUESTIONNAIRE. THE TRUSTEE ANNUAL DISCLOSURE QUESTIONNAIRES ARE REVIEWED BY THE COMPLIANCE DEPARTMENT. WITH RESPECT TO PARTICULAR TRANSACTIONS THAT COME BEFORE THE BOARD, THE CONFLICT OF INTEREST POLICY WOULD BE FOLLOWED. THE POTENTIAL CONFLICT OF INTEREST WOULD BE DISCLOSED BY THE BOARD MEMBER BEFORE A VOTE ON THE TRANSACTION AND THE REST OF THE BOARD WOULD DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. IF THE REST OF THE BOARD DETERMINED THAT A CONFLICT OF INTEREST EXISTED THEN THE BOARD MEMBER WITH THE CONFLICT OF INTEREST WOULD NOT PARTICIPATE IN THE DELIBERATIONS AND VOTE. FORM 990, PART VI, SECTION B, LINE 15 FORM 990, PART VI, SECTION B, LINE 15A/15B: THE FILING ORGANIZATION IS AN INTEGRAL PART OF NOVANT HEALTH, AN INTEGRATED HEALTHCARE SYSTEM COLLECTIVELY REFERRED TO AS "NOVANT HEALTH." NOVANT HEALTH, INC. IS THE PARENT ORGANIZATION AND INDEPENDENT AND DISINTERESTED MEMBERS OF THE NOVANT HEALTH, INC. BOARD OF TRUSTEES (WHO COMPRISE THE COMPENSATION AND LEADERSHIP COMMITTEE OF THE BOARD) REVIEW, APPROVE, AND OVERSEE ALL ASPECTS OF COMPENSATION AND BENEFITS FOR CERTAIN LEADERS AND EXECUTIVES ("EXECUTIVES") SERVING AS OFFICERS, INCLUDING THE TOP MANAGEMENT OFFICIAL, OR KEY EMPLOYEES FOR NOVANT HEALTH ENTITIES. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT AND USES THIRD PARTY COMPARABILITY DATA FOR FUNCTIONALLY SIMILAR POSITIONS AT SIMILARLY SITUATED ORGANIZATIONS TO ENSURE THAT TOTAL COMPENSATION AND BENEFITS FOR EACH EXECUTIVE IS REASONABLE FOR THAT EXECUTIVE'S POSITION. THE COMMITTEE REVIEWS AND APPROVES EXECUTIVE COMPENSATION AND BENEFITS ANNUALLY, CONSISTENT WITH THE WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY OF NOVANT HEALTH, AND IN A MANNER THAT QUALIFIES FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS, THEREBY ASSURING THAT TOTAL COMPENSATION AND BENEFITS PROVIDED TO EACH EXECUTIVE IS REASONABLE. FORM 990, PART VI, SECTION C, LINE 19 FORM 990, PART VI, SECTION C, LINE 19: GOVERNING DOCUMENTS DISCLOSURE THE AUDITED CONSOLIDATED FINANCIAL STATEMENTS CONTAINING ALL ORGANIZATIONS IN THE NOVANT HEALTH SYSTEM ARE POSTED TO THE NOVANT HEALTH WEBSITE. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION B: INDEPENDENT CONTRACTORS THE FILING ENTITY IS PART OF THE NOT-FOR-PROFIT INTEGRATED HEALTHCARE SYSTEM KNOWN AS NOVANT HEALTH. NOVANT HEALTH, INC., THE PARENT ORGANIZATION, IS RESPONSIBLE FOR CERTAIN CORPORATE SUPPORT FUNCTIONS INCLUDING ACCOUNTS PAYABLE AND ISSUES FORMS 1099 FOR CERTAIN ENTITIES IN THE SYSTEM INCLUDING THE FILING ENTITY. INFORMATION REPORTED IN PART VII, SECTION B REPRESENTS THE EXPENSES PAID ON BEHALF OF THE FILING ENTITY TO INDEPENDENT CONTRACTORS OVER $100,000. FORM 990, PART IX, LINE 11G OUTSIDE SERVICES: PROGRAM SERVICE EXPENSES 921,932. MANAGEMENT AND GENERAL EXPENSES 4,138,968. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,060,900. CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 88,039. MANAGEMENT AND GENERAL EXPENSES 63,842. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 151,881. CREDENTIALING FEES: PROGRAM SERVICE EXPENSES 13,205. MANAGEMENT AND GENERAL EXPENSES 695. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,900. RECRUITMENT: PROGRAM SERVICE EXPENSES 2,494. MANAGEMENT AND GENERAL EXPENSES 131. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,625. PROFESSIONAL PHYSICIAN SERVICES: PROGRAM SERVICE EXPENSES 6,684,316. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,684,316. FORM 990, PART XI, LINE 9: INVESTMENT IN NORFOLK PARTNERSHIP: 31,209,618. BOOK ADJUSTMENT: 65,638. 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