2024-08-14T10:43:03-05:00 2023-09-30 440160260 FORVIS MAZARS LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2022-10-01 510191937 THE FOUNDATION OF FIRSTHEALTH INC FOUN 9106957500 155 MEMORIAL DRIVE PINEHURST NC 28374 JEFFREY CASEY CORPORATE CFO 9106957500 2024-08-14 1 1 AMY BIBBY P00445891 8282542254 2024-08-14 2022 2024-08-08 14:25:15Z KATHLEEN STOCKHAM 155 MEMORIAL DRIVE PINEHURST NC 28374 25158358 0 X WWW.FIRSTHEALTH.ORG/FOUNDATION X 1976 NC PROVIDE PHILANTHROPIC SUPPORT OF FIRSTHEALTH OF THE CAROLINAS, INC. 21 18 0 242 0 0 4506206 5803369 0 0 10802342 4717856 0 -185854 15308548 10335371 5983389 11828285 0 0 870267 984868 0 0 37398 1107959 1007949 7961615 13821102 7346933 -3485731 84024548 86011648 2943541 3950497 81081007 82061151 X PROVIDE PHILANTHROPIC SUPPORT TO FIRSTHEALTH OF THE CAROLINAS, INC., A HEALTHCARE SYSTEM EXEMPT FROM INCOME TAX UNDER IRS SECTION 501C(3) AND 170(B)(1)(A)(III). 0 0 12921866 11828285 THE FOUNDATION OF FIRSTHEALTH, INC. ("FOUNDATION") PROVIDES PHILANTHROPIC SUPPORT TO THE OPERATING ENTITIES AND BUSINESS LINES OF FIRSTHEALTH OF THE CAROLINAS, INC. ("FIRSTHEALTH"), A NOT-FOR-PROFIT HEALTHCARE SYSTEM. THIS FY 2023 PHILANTHROPIC SUPPORT INCLUDED $11,828,285 IN GRANTS TO FIRSTHEALTH FOR OPERATIONAL SUPPORT OF EXISTING PATIENT CARE FACILITIES AND SERVICES, PHYSICIAN AND CLINICAL STAFF EDUCATION, AND OTHER APPROVED OPERATIONAL NEEDS. SIGNIFICANT FY 2023 DISBURSEMENT FROM THE FOUNDATION TO FIRSTHEALTH INCLUDED, BUT WERE NOT LIMITED TO: $8,500,000 PAID TOWARD THE FOUNDATION'S FINANCIAL PLEDGE FOR THE NEW COMPREHENSIVE CANCER CENTER. $439,911 PAID BY THE FIRSTHEALTH HOSPICE FOUNDATION TO COVER ONGOING ANNUAL OPERATING LOSSES OF THE FIRSTHEALTH HOSPICE HOUSE (INPATIENT FACILITY) AND PROVIDE FOR THE MAINTENANCE OF THE HEALING GARDENS AT THE HOSPICE HOUSE. $437,154 TO COVER THE OPERATING DEFICIT OF THE CLARA MCLEAN HOSPITALITY HOUSE ("CLARA'S HOUSE") LOCATED ON THE FIRSTHEALTH MOORE REGIONAL HOSPITAL - PINEHURST CAMPUS AND TO OFFSET THE COST OF COMMUNITY PROGRAMS HELD AT THE FACILITY. $120,000 PAID IN SUPPORT OF FIRSTHEALTH'S OUTPATIENT PALLIATIVE CARE PROGRAM, TO OFFSET SOME OF THE ONGOING PATIENT CARE COSTS NOT PAID THROUGH MEDICARE AND MOST COMMERCIAL INSURANCE COMPANIES. $390,961 PAID IN SUPPORT OF THE FIRSTHEALTH PHYSICIAN'S LEADERSHIP ACADEMY PROGRAM AND THE OFFICE OF PROVIDER WELLBEING. $273,593 DISBURSED FROM THE CANCER CARE FUND TO ASSIST PATIENTS WITH DIFFERENT TYPES OF CANCER WITH THE COST OF MEDICATION CO-PAYS, GAS MONEY, ARRANGING SPECIAL TRANSPORTATION NEEDS, SPECIAL NUTRITIONAL NEEDS, ETC. $357,767 PAID TO FIRSTHEALTH MOORE REGIONAL HOSPITAL IN SUPPORT OF NUMEROUS NURSING EDUCATION PROGRAMS, NURSING ENRICHMENT PROGRAMS, NURSING SCHOLARSHIPS, EXTERNAL PROFESSIONAL CONFERENCES, ETC. AND FOR ONGOING MAGNET TRAINING. $271,750 TO PROVIDE UNDERINSURED CHILDREN WITH QUALITY DENTAL CARE AND OUTSIDE PROFESSIONAL DENTAL SERVICES FOR NEEDED DENTAL SURGERIES; $185,525 PAID IN SUPPORT OF THE FIRSTHEALTH HOME CARE'S COMPLEX CARE MANAGEMENT PROGRAM. $100,000 DISBURSED IN SUPPORT OF THE SANDHILLS TIDES PROGRAM, A COMPREHENSIVE, COORDINATES, OUTPATIENT THERAPY PROGRAM FOR WOMEN WITH SUBSTANCE USE DISORDER, WHO ARE PREGNANT OR NEWLY POSTPARTUM. THE MISSION IS TO KEEP THE MOTHER/CHILD DYAD INTACT BY ENGAGING PREGNANY WOMEN WITH SUBSTANCE ABUSE DISORDER IN THE RECOVERY PROCESS. $17,535 DISBURSED BY THE FIRSTHEALTH RICHMOND MEMORIAL HOSPITAL FOUNDATION IN SUPPORT OF HEALTH SERVICES PROVIDED TO THE RESIDENTS OF RICHMOND COUNTY. $41,338 DISBURSED BY THE FIRSTHEALTH MONTGOMERY MEMORIAL HOSPITAL FOUNDATION IN SUPPORT OF HEALTH SERVICES PROVIDED TO THE RESIDENTS OF MONTGOMERY COUNTY.IN ITS 12TH YEAR OF OPERATION, THE CLARA MCLEAN HOUSE ("CLARA'S HOUSE") HAS SERVED OVER 13,000 GUESTS, STAYING 23,000 ROOM NIGHTS, VISITING FROM 48 STATES AND 8 COUNTRIES. IN ADDITION, OVER 7,000 VISITS WERE MADE TO THE ON-SITE HEALING GARDEN BY GUESTS AND THE PINEHURST COMMUNITY AT-LARGE. FISCAL 2023 IN PARTICULAR REPRESENTED AN EXPLOSION OF GROWTH IN THE UTILIZATION OF CLARA'S HOUSE. WITH RENEWED FOCUS AND ENERGY, FISCAL 2023 BROUGHT A HEIGHTENED COMMITMENT TO OUR REGION'S CANCER PATIENTS, MAKING THEM THE CENTRAL HUB OF THE LODGING COMPONENT. THANKS TO THE GENEROUS PHILANTHROPIC SUPPORT OF THE COMMUNITY THROUGH THE FOUNDATION OF FIRSTHEALTH, CLARA'S HOUSE OFFERED 1,000 NIGHTS TO OVER 250 CANCER PATIENTS AT NO CHARGE, EQUATING TO APPROXIMATELY $109,000 IN ACCOMMODATIONS. MANY PATIENTS AND THEIR SUPPORT PERSON STAYED FOR UP TO 7 WEEKS DURING TREATMENT REGIMENS, WHICH HAS REQUIRED STAFF TO STEP INTO A MORE REFINED SKILL SET TO ACCOMPANY FOLKS THROUGH THIS VARIED AND OFTEN ARDUOUS PORTION OF THEIR MEDICAL AND HEALING JOURNEY. VOLUNTEERS STILL COME EVERY MONDAY AND MAKE A HOT LUNCH WHICH IS A WELCOME RELIEF AS MANY GUESTS ARE NOT ONLY TRANSPORTATION BUT FOOD INSECURE AS WELL.FROM THE OVERALL LODGING STANDPOINT, 1,145 GUESTS STAYED A TOTAL OF 1,600 ROOM NIGHTS. 582 OF THOSE GUESTS WERE FIRST TIME VISITORS. GUESTS TRAVELED A MEAN DISTANCE OF 80 MILES AND STAYED AN AVERAGE OF 2.2 NIGHTS. TOP DIAGNOSTIC GROUPS REMAIN ONCOLOGY, ORTHOPEDIC AND HEART PATIENTS WITH THE TOP THREE COUNTIES BEING SERVED FROM CUMBERLAND, ROBESON AND RICHMOND. OVER 100 OF THOSE NIGHTS WERE DEDICATED TO PROVIDER RECRUITMENT, RETENTION AND THOSE IN SERVICE TO FIRSTHEALTH. CLARA'S HOUSE REMAINS A CENTRAL HUB FOR COMMUNITY NAVIGATION, OUTREACH AND ADVOCACY, HOSTING OVER 10 DIFFERENT SUPPORT GROUPS. OVER 1,200 VISITS HAVE BEEN MADE TO PARKINSON'S, DEMENTIA, TRAUMATIC BRAIN INJURY, STROKE RECOVERY AND CHRONIC KIDNEY DISEASE GROUPS. MUSIC AND ART THERAPY AS WELL AS CENTERING PRAYER AND BOOK CLUB ARE STILL GOING STRONG AFTER BEING IN SERVICE MORE THAN A DECADE FROM THIS LOCATION. ADDITIONALLY, FOUR FIRSTHEALTH DEPARTMENTS CURRENTLY OPERATE OUT OF CLARA'S HOUSE INCLUDING FIRSTFUTURES. NEARLY 500 MEETINGS HAVE TAKEN PLACE BOTH IN SHADOWLAWN AND THE HOUSE AT LARGE, REQUIRING TURNING THE CHILDREN'S PLAYROOM INTO A MULTI-PURPOSE SPACE TO ACCOMMODATE THE INFLUX OF ACTIVITIES. VOLUNTEERS HAVE PROVIDED MORE THAN 5,000 BROWNIES/BAKED GOODS/HEALTHY SNACKS TO BE DEPLOYED ACROSS FIRSTHEALTH ENTITIES AS A MORALE BOOSTER TO ULTIMATELY ENHANCE PATIENT CARE AND EMPLOYEE SATISFACTION. 12921866 1 1 0 0 0 0 0 0 0 1 1 0 0 0 1 1 1 1 0 0 0 0 0 0 1 0 0 1 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 X 21 18 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X JEFFREY CASEY CORPORATE CFO 9107151561 155 MEMORIAL DRIVE PINEHURST NC 28374 ART MEDEIROS CHAIR 1.00 X 0 0 0 JON DEVAULT PAST CHAIR 1.00 X 0 0 0 CATHY SCHLAFF SECRETARY 1.00 X 0 0 0 KAREN FITCH ASST. SECRETARY 1.00 X 0 0 0 RON SCHUCH TREASURER (THRU 12/31/22) 1.00 X 0 0 0 DR JOHN ELLIS TREASURER (AS OF 1/1/23) 1.00 X 0 0 0 RONALD BALLARD ASST. TREASURER 1.00 X 0 0 0 ROBERT BAHNER MEMBER 1.00 X 0 0 0 DR DANIEL BARNES MEMBER 49.00 X X 0 731542 63073 DR ART EDGERTON MEMBER 1.00 X 0 0 0 CONNIE FENSTERSTOCK MEMBER 1.00 X 0 0 0 CINDY GOODMAN MEMBER 1.00 X 0 0 0 KERRY HENSLEY MEMBER (AS OF 1/1/23) 1.00 X 0 0 0 RICH HOLADA MEMBER 1.00 X 0 0 0 JAMES J JACKSON MEMBER 1.00 X 0 0 0 NANCY KAESER MEMBER 1.00 X 0 0 0 ROBERT LOVELL MEMBER 1.00 X 0 0 0 JAMES OBI MEMBER 1.00 X 0 0 0 BECKY SMITH MEMBER (THRU 12/31/22) 1.00 X 0 0 0 DR ROBERT SPONZO MEMBER 1.00 X 0 0 0 RUSTI WELCH MEMBER (AS OF 1/1/23) 1.00 X 0 0 0 MICKEY FOSTER FHC PRESIDENT & CEO 49.00 X X 0 1312047 175840 JACKLYNN LESNIAK MEMBER (THRU 12/31/22) 49.00 X X 0 485737 47509 KATHY STOCKHAM PRESIDENT, FOUNDATION 50.00 X X 0 380119 43996 JEFF CASEY CORPORATE CFO 50.00 X 0 660803 59721 0 3570248 390139 0 0 1 0 0 271611 5531758 528353 5803369 4299544 4299544 15055445 14637133 418312 418312 418312 0 271611 185854 -185854 -185854 10335371 0 0 4532002 11828285 11828285 909525 223893 685632 75343 18547 56796 81378 81378 119065 101606 17459 541836 483865 20573 37398 265670 265670 13821102 12921866 861838 37398 2322857 1597667 6403438 3403504 3286904 2999934 78414787 81414047 84024548 86011648 629627 904869 2313914 3045628 2943541 3950497 X 31030613 25130159 50050394 56930992 81081007 82061151 84024548 86011648 -3485731 4465875 0 X X 0 1 X 1 0 X X 1 FIRSTHEALTH OF THE CAROLINAS INC 561936354 3 1 11828285 1279435 1 11828285 1279435 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 31811842 207297 4076007 3033321 33061825 28386250 7792112 -2963561 1402959 31811842 23154735 2932664 3623390 1324539 28386250 21949091 1268821 1011725 1074902 23154735 21622455 247990 406082 327436 21949091 1.00000 0 0 160887 160887 4945625 2275925 2669700 979414 839528 139886 317512 288051 29461 2999934 ANNUITY OBLIGATIONS 2766819 DUE TO AFFILIATES 278809 3045628 X 14905722 4465875 185854 4651729 10253993 81378 81378 10335371 13925578 185854 185854 13739724 81378 81378 13821102 PART V, LINE 4: THE CORPUS OF THE PERMANENTLY-RESTRICTED ENDOWMENT FUNDS ARE TO BE HELD INTACT IN-PERPETUITY. INVESTMENT INCOME GENERATED ON TEMPORARILY AND PERMANENTLY-RESTRICTED ENDOWMENT IS AVAILABLE FOR THE PURCHASE OF EQUIPMENT, HEALTH EDUCATION, AND/OR HEALTH CARE SERVICES PROVIDED BY THE FIRSTHEALTH OF THE CAROLINAS, INC.'S OPERATING ENTITIES AND BUSINESS LINES. PART X, LINE 2: THE FOUNDATION HAS BEEN RECOGNIZED BY THE INTERNAL REVENUE SERVICE AS TAX-EXEMPT UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1986 (THE "CODE") AND AS A PUBLIC CHARITY UNDER SECTION 509(A) OF THE CODE. CONTRIBUTIONS TO THE FOUNDATION QUALIFY FOR A CHARITABLE CONTRIBUTION DEDUCTION TO THE EXTENT PROVIDE BY LAW. THE FOUNDATION IS NOT AWARE OF ANY ACTIVITIES THAT WOULD JEOPARDIZE ITS TAX-EXEMPT STATUS. THE FOUNDATION FOLLOWS THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS, WHICH CLARIFIES THE ACCOUNTING UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ORGANIZATION'S FINANCIAL STATEMENTS AND PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PRINCIPLES FOR THE FINANCIAL STATEMENTS RECOGNITION AND MEASUREMENT OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN ON A TAX RETURN THAT ARE NOT CERTAIN TO BE REALIZED. THIS STANDARD HAS HAD NO SIGNIFICANT IMPACT ON THE FINANCIAL STATEMENTS OF THE FOUNDATION. PART XI, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 185,854. PART XII, LINE 2D - OTHER ADJUSTMENTS: SPECIAL EVENT EXPENSES 185,854. X X X X X GOLF TOURNAMENT 271611 271611 47687 85817 40000 12350 271611 271611 47687 85817 40000 12350 185854 -185854 1 FIRSTHEALTH OF THE CAROLINAS INC 155 MEMORIAL DRIVE PINEHURST NC 28374 561936354 501(C)(3) 11828285 0 FMV MEDICAL EQUIPMENT, HEALTH EDUCATION, HEALTH CARE SERVICES 1 0 PART I, LINE 2: A FORMAL GRANT APPLICATION IS COMPLETED IN SUPPORT OF EACH GRANT REQUEST SUBMITTED TO THE FOUNDATION OF FIRSTHEALTH, INC.. THE APPLICATION MUST BE APPROVED BY A SENIOR MEMBER OF MANAGEMENT OF FIRSTHEALTH OF THE CAROLINAS, INC.. PRIOR TO SUBMISSION. THE FOUNDATION OF FIRSTHEALTH'S GRANT REVIEW COMMITTEE REVIEWS EACH APPLICATION AND APPROVES/REJECTS EACH FOR FUNDING. IF A GRANT AWARD IS MADE, THE GRANTEE SUBMITS A REPORT TO THE GRANT REVIEW COMMITTEE DETAILING THE USE OF THE GRANT PROCEEDS AND THE BENEFITS RECOGNIZED. 0 0 0 0 0 0 0 0 0 MICKEY FOSTER FHC PRESIDENT & CEO 0 827237 0 417055 0 67755 0 160718 0 15122 0 1487887 0 0 DR DANIEL BARNES MEMBER 0 485332 0 188682 0 57528 0 47996 0 15077 0 794615 0 0 JEFF CASEY CORPORATE CFO 0 434849 0 170170 0 55784 0 44800 0 14921 0 720524 0 0 JACKLYNN LESNIAK MEMBER (THRU 12/31/22) 0 331721 0 127896 0 26120 0 38212 0 9297 0 533246 0 0 KATHY STOCKHAM PRESIDENT, FOUNDATION 0 255516 0 99683 0 24920 0 29164 0 14832 0 424115 0 0 PART II: ALL EMPLOYEES OF THE FOUNDATION OF FIRSTHEALTH, INC. ARE LEASED FROM FIRSTHEALTH OF THE CAROLINAS, INC. FIRSTHEALTH'S BOARD OF DIRECTORS DETERMINES COMPENSATION FOR THE CEO THROUGH ITS COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE IS COMPOSED OF BOARD MEMBERS WHO ARE INDEPENDENT OF FIRSTHEALTH MANAGEMENT, HAVE NO PERSONAL INTEREST IN THE COMPENSATION ARRANGEMENTS, ARE NOT RELATED TO OR UNDER THE CONTROL OF ANY INDIVIDUAL WHOSE COMPENSATION ARRANGEMENT IS BEING REVIEWED, HAVE NO MATERIAL BUSINESS RELATIONSHIP WITH FIRSTHEALTH, AND ARE NOT PAID FOR THEIR SERVICES AS A BOARD MEMBER. THE COMMITTEE RETAINS AN INDEPENDENT CONSULTANT TO CONDUCT PERIODIC COMPENSATION ANALYSES TO HELP ENSURE FIRSTHEALTH'S COMPENSATION PRACTICES AND COMPENSATION LEVELS ARE REASONABLE. THIS CONSULTANT PROVIDES ONLY ADVISORY SERVICES RELATED TO COMPENSATION MATTERS TO FIRSTHEALTH. TO ATTRACT AND RETAIN THE HIGHEST CALIBER OF HEALTHCARE PROFESSIONALS NEEDED TO SUSTAIN THE QUALITY OF THE HEALTHCARE FIRSTHEALTH PROVIDES TO THE COMMUNITIES THAT IT SERVES, COMPENSATION MUST BE COMPETITIVE WITH THAT PROVIDED BY OTHER COMPETING ORGANIZATIONS IN THE AREA JOB MARKET. WHEN EXECUTIVE POSITIONS ARE FILLED, FIRSTHEALTH TYPICALLY CONDUCTS NATIONAL SEARCHES. FIRSTHEALTH BENCHMARKS AGAINST ORGANIZATIONS OF COMPARABLE SIZE AND MISSION, ACROSS THE REGION AND THE NATION. MARKET DATA IS ASSEMBLED FOR ALL ELEMENTS OF EXECUTIVE COMPENSATION (I.E. CASH COMPENSATION, BENEFITS AND PERQUISITES). COMPENSATION LEVELS REFLECT THE SCOPE OF THE CEO'S RESPONSIBILITIES, EDUCATIONAL BACKGROUND, EXPERIENCE AND INDUSTRY STANDING, AS WELL AS INDIVIDUAL AND ORGANIZATION PERFORMANCE. THE MOST RECENT REVIEW WAS PERFORMED DURING FISCAL YEAR 2023. A SIMILAR PROCESS TO THAT FOR THE CEO IS AFFECTED FOR DETERMINING THE COMPENSATION OF THE OTHER CORPORATE OFFICERS OR KEY EMPLOYEES OF FIRSTHEALTH (I.E. USE OF INDEPENDENT CONSULTANT, COMPARABLE INDUSTRY DATA, ETC.). THE COMMITTEE REVIEWS AND APPROVES THE CEO'S PERFORMANCE ASSESSMENTS AND COMPENSATION RECOMMENDATIONS FOR OTHER CORPORATE OFFICER AND KEY EMPLOYEES. ALL COMPENSATION DECISIONS ARE MADE IN A MANNER THAT IS CONSISTENT WITH FIRSTHEALTH'S BOARD-APPROVED COMPENSATION PHILOSOPHY. THE MOST RECENT YEAR REVIEW WAS PERFORMED DURING FISCAL YEAR 2023. X 11 509201 MEAN VALUE X 1 19152 FMV 0 1 1 PART I, LINE 32B: IN CERTAIN INSTANCES, APPLICABLE THIRD PARTIES OR RELATED ORGANIZATIONS ARE USED TO SOLICIT, PROCESS, OR SELL NON-CASH CONTRIBUTIONS. FORM 990, PART VI, SECTION B, LINE 11B THE FOUNDATION OF FIRSTHEALTH, INC. ("FOUNDATION") FORM 990 WAS INITIALLY REVIEWED BY QUALIFIED MEMBERS OF THE FOUNDATION AND FIRSTHEALTH OF THE CAROLINAS, INC'S ADMINISTRATION, INCLUDING THE CORPORATE CEO AND CFO, AND COMPLIANCE DEPARTMENTS. THE ENTIRE RETURN WAS REVIEWED BY THE FOUNDATION'S BOARD OF DIRECTORS PRIOR TO FILING WITH THE IRS. THE FOUNDATION'S INDEPENDENT TAX PREPARER, FORVIS MAZARS, LLP, ALSO CONDUCTED A REVIEW OF THE RETURN DURING THEIR PREPARATION PROCESS. IN ADDITION TO THE POSTING OF THE FOUNDATION RETURN ON GUIDESTAR, A PUBLIC INSPECTION COPY OF THE FORM 990 IS MADE AVAILABLE FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION STRIVES TO MAINTAIN THE HIGHEST ETHICAL STANDARDS AND HAS ADOPTED A CONFLICT OF INTEREST/DUALITY OF INTEREST POLICY THAT APPLIES TO ANY DIRECTOR, TRUSTEE, OFFICER OR MEMBER OF A BOARD COMMITTEE, OR ANY EMPLOYEE WHO HAS A DIRECT OR INDIRECT FINANCIAL INTEREST OR DUALITY OF INTEREST WITH ANY ORGANIZATION SEEKING TO DO BUSINESS WITH OR IS IN AN ACTUAL OR POTENTIAL ADVERSARIAL RELATIONSHIP WITH THE FOUNDATION. ANY COVERED INDIVIDUAL WITH AN ACTUAL OR POSSIBLE CONFLICT MUST DISCLOSE THE EXISTENCE OF THE CONFLICT TO THE DIRECTORS, TRUSTEES AND MEMBERS OF BOARD COMMITTEES WITH BOARD-DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION, ARRANGEMENT OR ISSUE. EACH TRUSTEE, OFFICER OR MEMBER OF A BOARD COMMITTEE WITH BOARD-DELEGATED POWERS COMPLETES AN ANNUAL CONFLICT OF INTEREST DISCLOSURE STATEMENT, AND ALL REPORTED CONFLICTS ARE REPORTED TO AND REVIEWED BY THE FOUNDATION AND FIRSTHEALTH OF THE CAROLINAS, INC'S BOARDS OF DIRECTORS. ALL MANAGEMENT EMPLOYEES ALSO COMPLETE ANNUAL CONFLICT OF INTEREST DISCLOSURE STATEMENTS, WHICH ARE SUMMARIZED AND REVIEWED WITH SENIOR MANAGEMENT. FORM 990, PART VI, SECTION B, LINE 15 ALL EMPLOYEES OF THE FOUNDATION OF FIRSTHEALTH, INC. ARE LEASED FROM FIRSTHEALTH OF THE CAROLINAS, INC. FIRSTHEALTH'S BOARD OF DIRECTORS DETERMINES COMPENSATION FOR THE CEO THROUGH ITS COMPENSATION COMMITTEE ("COMMITTEE"). THE COMMITTEE IS COMPOSED OF BOARD MEMBERS WHO ARE INDEPENDENT OF FIRSTHEALTH MANAGEMENT, HAVE NO PERSONAL INTEREST IN THE COMPENSATION ARRANGEMENTS, ARE NOT RELATED TO OR UNDER THE CONTROL OF ANY INDIVIDUAL WHOSE COMPENSATION ARRANGEMENT IS BEING REVIEWED, HAVE NO MATERIAL BUSINESS RELATIONSHIP WITH FIRSTHEALTH, AND ARE NOT PAID FOR THEIR SERVICES AS A BOARD MEMBER. THE COMMITTEE RETAINS AN INDEPENDENT CONSULTANT TO CONDUCT PERIODIC COMPENSATION ANALYSES TO HELP ENSURE FIRSTHEALTH'S COMPENSATION PRACTICES AND COMPENSATION LEVELS ARE REASONABLE. THIS CONSULTANT PROVIDES ONLY ADVISORY SERVICES RELATED TO COMPENSATION MATTERS TO FIRSTHEALTH. TO ATTRACT AND RETAIN THE HIGHEST CALIBER OF HEALTHCARE PROFESSIONALS NEEDED TO SUSTAIN THE QUALITY OF THE HEALTHCARE FIRSTHEALTH PROVIDES TO THE COMMUNITIES THAT IT SERVES, COMPENSATION MUST BE COMPETITIVE WITH THAT PROVIDED BY OTHER COMPETING ORGANIZATIONS IN THE AREA JOB MARKET. WHEN EXECUTIVE POSITIONS ARE FILLED, FIRSTHEALTH TYPICALLY CONDUCTS NATIONAL SEARCHES. FIRSTHEALTH BENCHMARKS AGAINST ORGANIZATIONS OF COMPARABLE SIZE AND MISSION, ACROSS THE REGION AND THE NATION. MARKET DATA IS ASSEMBLED FOR ALL ELEMENTS OF EXECUTIVE COMPENSATION (I.E. CASH COMPENSATION, BENEFITS AND PERQUISITES). COMPENSATION LEVELS REFLECT THE SCOPE OF THE CEO'S RESPONSIBILITIES, EDUCATIONAL BACKGROUND, EXPERIENCE AND INDUSTRY STANDING, AS WELL AS INDIVIDUAL AND ORGANIZATION PERFORMANCE. THE MOST RECENT REVIEW WAS PERFORMED DURING FISCAL YEAR 2020. A SIMILAR PROCESS TO THAT FOR THE CEO IS AFFECTED FOR DETERMINING THE COMPENSATION OF THE OTHER CORPORATE OFFICERS OR KEY EMPLOYEES OF FIRSTHEALTH (I.E. USE OF INDEPENDENT CONSULTANT, COMPARABLE INDUSTRY DATA, ETC.). THE COMMITTEE REVIEWS AND APPROVES THE CEO'S PERFORMANCE ASSESSMENTS AND COMPENSATION RECOMMENDATIONS FOR OTHER CORPORATE OFFICER AND KEY EMPLOYEES. ALL COMPENSATION DECISIONS ARE MADE IN A MANNER THAT IS CONSISTENT WITH FIRSTHEALTH'S BOARD-APPROVED COMPENSATION PHILOSOPHY. THE MOST RECENT YEAR REVIEW WAS PERFORMED DURING FISCAL YEAR 2020. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION'S FORM 990 IS MADE AVAILABLE TO THE PUBLIC UPON REQUEST AND ON WWW.GUIDESTAR.ORG. FORM 990, PART VI, SECTION C, LINE 19 THE CORPORATE DOCUMENTS ARE MADE AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. IN ADDITION, QUARTERLY AND ANNUAL FINANCIAL STATEMENTS ARE POSTED TO THE DIGITAL ASSURANCE CERTIFICATION (DAC) WEBSITE. PART XII, LINE 2C THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FIRSTHEALTH OF THE CAROLINAS INC 155 MEMORIAL DRIVE PINEHURST NC 28374 561936354 HEALTHCARE SERVICES NC 501(C)(3) LINE 3 N/A 0 FIRSTHEALTH PROFESSIONAL SERVICES INC 155 MEMORIAL DRIVE PINEHURST NC 28374 561885149 HEALTHCARE SERVICES NC N/A C 0 FIRSTCAROLINACARE INSURANCE COMPANY INC 42 MEMORIAL DRIVE PINEHURST NC 28374 331160597 INSURANCE COMPANY NC N/A C 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 1 1 0 0 FIRSTHEALTH OF THE CAROLINAS INC B 11828285 FIRSTHEALTH OF THE CAROLINAS INC K 53364 FIRSTHEALTH OF THE CAROLINAS INC P 1665765 FIRSTHEALTH OF THE CAROLINAS INC Q 2044351