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          <State>NC</State>
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        <NamePerson>CAROL F WATKINS</NamePerson>
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        <NamePerson>RAY H DUNKELBERG MD</NamePerson>
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        <ManagementAndGeneral>9258</ManagementAndGeneral>
      </DepreciationDepletion>
      <OtherExpenses>
        <Description>BAD DEBT</Description>
        <Total>12169</Total>
        <ManagementAndGeneral>12169</ManagementAndGeneral>
      </OtherExpenses>
      <TotalFunctionalExpenses>
        <Total>2610718</Total>
        <ProgramServices>1965544</ProgramServices>
        <ManagementAndGeneral>443724</ManagementAndGeneral>
        <Fundraising>201450</Fundraising>
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      <CashNonInterestBearing>
        <BOY>44574</BOY>
        <EOY>106852</EOY>
      </CashNonInterestBearing>
      <SavingsAndTempCashInvestments>
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      <PledgesAndGrantsReceivable>
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        <EOY>209960</EOY>
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      <PrepaidExpensesDeferredCharges>
        <BOY>11049</BOY>
        <EOY>8399</EOY>
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      <LandBuildingsEquipmentBasis>357791</LandBuildingsEquipmentBasis>
      <LandBldgEquipmentAccumDeprec>50613</LandBldgEquipmentAccumDeprec>
      <LandBuildingsEquipmentBasisNet>
        <BOY>410996</BOY>
        <EOY>307178</EOY>
      </LandBuildingsEquipmentBasisNet>
      <InvestmentsPubTradedSecurities>
        <BOY>9314232</BOY>
        <EOY>16839393</EOY>
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      <OtherAssetsTotal>
        <BOY>2901</BOY>
        <EOY>8031</EOY>
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      <TotalAssets>
        <BOY>10393217</BOY>
        <EOY>17822299</EOY>
      </TotalAssets>
      <AccountsPayableAccruedExpenses>
        <BOY>10954</BOY>
        <EOY>1293</EOY>
      </AccountsPayableAccruedExpenses>
      <EscrowAccountLiability>
        <BOY>2217582</BOY>
        <EOY>1970893</EOY>
      </EscrowAccountLiability>
      <TotalLiabilities>
        <BOY>2228536</BOY>
        <EOY>1972186</EOY>
      </TotalLiabilities>
      <FollowSFAS117>X</FollowSFAS117>
      <UnrestrictedNetAssets>
        <BOY>3537171</BOY>
        <EOY>11298201</EOY>
      </UnrestrictedNetAssets>
      <TemporarilyRestrictedNetAssets>
        <BOY>3203793</BOY>
        <EOY>2850199</EOY>
      </TemporarilyRestrictedNetAssets>
      <PermanentlyRestrictedNetAssets>
        <BOY>1423717</BOY>
        <EOY>1701713</EOY>
      </PermanentlyRestrictedNetAssets>
      <TotalNetAssetsFundBalances>
        <BOY>8164681</BOY>
        <EOY>15850113</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>10393217</BOY>
        <EOY>17822299</EOY>
      </TotalLiabNetAssetsFundBalances>
      <InfoInScheduleOPartXI>X</InfoInScheduleOPartXI>
      <ReconcilationRevenueExpenses>-834111</ReconcilationRevenueExpenses>
      <ReconciliationUnrealizedInvest>178974</ReconciliationUnrealizedInvest>
      <ReconcilationOtherChanges>8340569</ReconcilationOtherChanges>
      <InfoInScheduleOPartXII>X</InfoInScheduleOPartXII>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>0</AccountantCompileOrReview>
      <FSAudited>1</FSAudited>
      <FSAuditedBasis>
        <FinancialStatementConsolidated>X</FinancialStatementConsolidated>
      </FSAuditedBasis>
      <AuditCommittee>1</AuditCommittee>
      <FederalGrantAuditRequired>0</FederalGrantAuditRequired>
    </IRS990>
    <IRS990ScheduleA documentId="RetDoc1039100001">
      <SupportingOrganization509a3>X</SupportingOrganization509a3>
      <SupportingOrg509a3Type1>X</SupportingOrg509a3Type1>
      <CertificationCheckbox>X</CertificationCheckbox>
      <ContribByControllingIndividual>0</ContribByControllingIndividual>
      <ContributionByRelatedParty>0</ContributionByRelatedParty>
      <ContribBy35ControlledEntity>0</ContribBy35ControlledEntity>
      <SupportedOrgInformation>
        <Name>
          <BusinessNameLine1>TRANSYLVANIA COMMUNITY HOSPITAL INC</BusinessNameLine1>
        </Name>
        <EIN>560562293</EIN>
        <TypeOfOrganization>3</TypeOfOrganization>
        <ListedInGoverningDoc>1</ListedInGoverningDoc>
        <SupportedOrganizationNotified>1</SupportedOrganizationNotified>
        <OrganizedInUS>1</OrganizedInUS>
        <Amount>1629756</Amount>
      </SupportedOrgInformation>
      <SupportedOrgInformation>
        <Name>
          <BusinessNameLine1>TRANSYLVANIA PHYSICIAN SERVICES INC</BusinessNameLine1>
        </Name>
        <EIN>561920816</EIN>
        <TypeOfOrganization>3</TypeOfOrganization>
        <ListedInGoverningDoc>0</ListedInGoverningDoc>
        <SupportedOrganizationNotified>1</SupportedOrganizationNotified>
        <OrganizedInUS>1</OrganizedInUS>
        <Amount>300000</Amount>
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      <TotalNumberOfSupportedOrgs>2</TotalNumberOfSupportedOrgs>
      <SumOfAmounts>1929756</SumOfAmounts>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="RetDoc1234500001">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
        <ContributorNameBusiness>
          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleC documentId="RetDoc1039700001">
      <Volunteers>0</Volunteers>
      <PaidStaffOrManagement>0</PaidStaffOrManagement>
      <MediaAdvertisements>0</MediaAdvertisements>
      <MailingsMembers>0</MailingsMembers>
      <PublicationsOrBroadcast>0</PublicationsOrBroadcast>
      <GrantsOtherOrganizations>0</GrantsOtherOrganizations>
      <DirectContactLegislators>0</DirectContactLegislators>
      <RalliesDemonstrations>0</RalliesDemonstrations>
      <OtherActivities>1</OtherActivities>
      <OtherActivitiesAmount>37</OtherActivitiesAmount>
      <TotalLobbyingExpendituresIIB>37</TotalLobbyingExpendituresIIB>
      <NotDescribedIn501c3>0</NotDescribedIn501c3>
      <Form990ScheduleCPartIV>
        <Identifier>EXPLANATION OF LOBBYING ACTIVITIES:</Identifier>
        <ReturnReference>PART II-B, LINE 1:</ReturnReference>
        <Explanation>THE FOUNDATION IS A MEMBER OF THE ASSOCIATION FOR HEALTHCARE PHILANTROPHY. THIS ASSOCIATION USED 2% OF ANNUAL MEMBER DUES TO LOBBY.</Explanation>
      </Form990ScheduleCPartIV>
    </IRS990ScheduleC>
    <IRS990ScheduleD documentId="RetDoc1040000001">
      <AgentTrusteeEtc>0</AgentTrusteeEtc>
      <IncludedOnFS>1</IncludedOnFS>
      <ExplanationInPartXIII>X</ExplanationInPartXIII>
      <CurrentYear>
        <BeginningOfYearBalance>6234928</BeginningOfYearBalance>
        <Contributions>8382031</Contributions>
        <InvestmentEarningsOrLosses>443274</InvestmentEarningsOrLosses>
        <OtherExpenditures>755494</OtherExpenditures>
        <EndOfYearBalance>14304739</EndOfYearBalance>
      </CurrentYear>
      <CurrentYearMinus1Year>
        <BeginningOfYearBalance>3810150</BeginningOfYearBalance>
        <Contributions>1918581</Contributions>
        <InvestmentEarningsOrLosses>506197</InvestmentEarningsOrLosses>
        <EndOfYearBalance>6234928</EndOfYearBalance>
      </CurrentYearMinus1Year>
      <CurrentYearMinus2Years>
        <BeginningOfYearBalance>3611599</BeginningOfYearBalance>
        <InvestmentEarningsOrLosses>198551</InvestmentEarningsOrLosses>
        <EndOfYearBalance>3810150</EndOfYearBalance>
      </CurrentYearMinus2Years>
      <CurrentYearMinus3Years>
        <BeginningOfYearBalance>3079854</BeginningOfYearBalance>
        <InvestmentEarningsOrLosses>531745</InvestmentEarningsOrLosses>
        <EndOfYearBalance>3611599</EndOfYearBalance>
      </CurrentYearMinus3Years>
      <CurrentYearMinus4Years>
        <BeginningOfYearBalance>3008487</BeginningOfYearBalance>
        <InvestmentEarningsOrLosses>71367</InvestmentEarningsOrLosses>
        <EndOfYearBalance>3079854</EndOfYearBalance>
      </CurrentYearMinus4Years>
      <BoardDesignatedEOYBalance>0.75870</BoardDesignatedEOYBalance>
      <PermanentEndowmentEOYBalance>0.22830</PermanentEndowmentEOYBalance>
      <TermEndowmentEOYBalance>0.01300</TermEndowmentEOYBalance>
      <EndowmentsHeldByUnrelatedOrgs>0</EndowmentsHeldByUnrelatedOrgs>
      <EndowmentsHeldByRelatedOrgs>0</EndowmentsHeldByRelatedOrgs>
      <Land>
        <InvestmentCostOrOtherBasis>171000</InvestmentCostOrOtherBasis>
        <OtherCostOrOtherBasis>50000</OtherCostOrOtherBasis>
        <BookValue>221000</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>90000</OtherCostOrOtherBasis>
        <Depreciation>3822</Depreciation>
        <BookValue>86178</BookValue>
      </Buildings>
      <Equipment>
        <OtherCostOrOtherBasis>46791</OtherCostOrOtherBasis>
        <Depreciation>46791</Depreciation>
        <BookValue>0</BookValue>
      </Equipment>
      <TotalOfBookValueLandBuildings>307178</TotalOfBookValueLandBuildings>
      <FootnoteInPartXIII>X</FootnoteInPartXIII>
      <Form990ScheduleDPartXIII>
        <ReturnReference>PART IV, LINE 2B:</ReturnReference>
        <Explanation>THE FOUNDATION ACTS AS TRUSTEE FOR IRREVOCABLE CHARITABLE REMAINDER UNITRUSTS AND CHARITABLE REMAINDER ANNUITY TRUSTS. THE ASSETS IN THESE TRUSTS WILL REMAIN IN TRUST, PAYING DISTRIBUTIONS TO THE DONORS UNDER THE TERMS OF THE AGREEMENTS, AND THE REMAINDER OF ASSETS WILL BECOME THE PROPERTY OF THE FOUNDATION ACCORDING TO THE TERMS OF THE TRUST AGREEMENTS. SUCH AMOUNTS RECEIVED ARE REPORTED AS ASSETS RESTRICTED AS TO USE. THESE TRUSTS REQUIRE SPECIFIED DISTRIBUTIONS TO THEIR DESIGNATED BENEFICIARIES OVER THE TRUSTS' TERMS. THE PRESENT VALUE OF THE EXPECTED DISTRIBUTIONS TO BE MADE IS RECORDED AS ANNUITIES PAYABLE. AT THE TIME THAT THE TRUST IS CREATED, THE DIFFERENCE IN THE VALUE OF THE INITIAL TRUST ASSETS AND THE PRESENT VALUE OF THE EXPECTED DISTRIBUTIONS IS RECORDED AS CONTRIBUTION INCOME. SUBSEQUENT CHANGES TO THE PRESENT VALUE OF THE EXPECTED DISTRIBUTIONS ARE RECORDED AS A CHANGE IN THE VALUE OF SPLIT INTEREST AGREEMENTS. EACH YEAR, THE FOUNDATION ADJUSTS THE PRESENT VALUE OF EXPECTED DISTRIBUTIONS BASED ON CHANGES IN THE ACTUARIAL ASSUMPTIONS OF THE DONORS' LIFE EXPECTANCY. THE PRESENT VALUE IS ALSO AFFECTED BY CHANGES IN THE DISCOUNT RATE USED. THE DISCOUNT RATE USED TO CALCULATE THE PRESENT VALUE OF EXPECTED DISTRIBUTIONS IS THE SAME AS THE RATE DEVELOPED BY THE INTERNAL REVENUE SERVICE TO VALUE THESE TYPES OF AGREEMENTS.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS:</Identifier>
        <ReturnReference>PART V, LINE 4:</ReturnReference>
        <Explanation>THE FOUNDATION'S ENDOWMENT CONSISTS OF SEVEN INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. ITS ENDOWMENT INCLUDES BOTH DONOR-RESTRICTED ENDOWMENT FUNDS AND FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS. AS REQUIRED BY GAAP, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS, INCLUDING FUNDS DESIGNATED BY THE BOARD OF TRUSTEES TO FUNCTION AS ENDOWMENTS, ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS.</Explanation>
      </Form990ScheduleDPartXIII>
      <Form990ScheduleDPartXIII>
        <Identifier>DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:</Identifier>
        <ReturnReference>PART X, LINE 2:</ReturnReference>
        <Explanation>THE HOSPITAL, THE FOUNDATION, AND TPSI ARE INCORPORATED AS NONPROFIT ORGANIZATIONS UNDER THE LAWS OF NORTH CAROLINA AND ARE EXEMPT FROM INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE ORGANIZATIONS HAVE DETERMINED THAT NO MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS EXIST FOR OPEN TAX YEARS AS OF SEPTEMBER 30, 2013. FISCAL YEARS ENDING ON OR AFTER SEPTEMBER 30, 2010 REMAIN SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAX AUTHORITIES.</Explanation>
      </Form990ScheduleDPartXIII>
    </IRS990ScheduleD>
    <IRS990ScheduleG documentId="RetDoc1041300001">
      <EventsInformation>
        <NameOfEvent1>THINK PINKS</NameOfEvent1>
        <GrossReceiptsEvent1>18004</GrossReceiptsEvent1>
        <CharitableContributionsEvent1>18004</CharitableContributionsEvent1>
        <FoodAndBeverageEvent1>593</FoodAndBeverageEvent1>
        <NameOfEvent2>BREAST CANCER AWARENESS LUNCHEON</NameOfEvent2>
        <GrossReceiptsEvent2>11045</GrossReceiptsEvent2>
        <CharitableContributionsEvent2>9019</CharitableContributionsEvent2>
        <GrossRevenueEvent2>2026</GrossRevenueEvent2>
        <FoodAndBeverageEvent2>2698</FoodAndBeverageEvent2>
        <OtherDirectExpensesEvent2>1107</OtherDirectExpensesEvent2>
        <GrossReceiptsTotal>29049</GrossReceiptsTotal>
        <CharitableContributionsTotal>27023</CharitableContributionsTotal>
        <GrossRevenueTotalEvents>2026</GrossRevenueTotalEvents>
        <FoodAndBeverageTotalEvents>3291</FoodAndBeverageTotalEvents>
        <OtherDirectExpensesTotalEvents>1107</OtherDirectExpensesTotalEvents>
        <DirectExpenseSummaryEvents>4398</DirectExpenseSummaryEvents>
        <NetIncomeSummary>-2372</NetIncomeSummary>
      </EventsInformation>
    </IRS990ScheduleG>
    <IRS990ScheduleI documentId="RetDoc1041900001">
      <RecordsMaintained>1</RecordsMaintained>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>TRANSYLVANIA COMMUNITY HOSPITAL INC</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>260 HOSPITAL DRIVE</AddressLine1>
          <City>BREVARD</City>
          <State>NC</State>
          <ZIPCode>28712</ZIPCode>
        </AddressUS>
        <EINOfRecipient>560562293</EINOfRecipient>
        <IRCSection>501(C)(3)</IRCSection>
        <AmountOfCashGrant>1629756</AmountOfCashGrant>
        <PurposeOfGrant>CAPITAL AND PROGRAM SERVICES</PurposeOfGrant>
      </RecipientTable>
      <RecipientTable>
        <RecipientNameBusiness>
          <BusinessNameLine1>TRANSYLVANIA PHYSICIAN SERVICES INC</BusinessNameLine1>
        </RecipientNameBusiness>
        <AddressUS>
          <AddressLine1>260 HOSPITAL DRIVE</AddressLine1>
          <City>BREVARD</City>
          <State>NC</State>
          <ZIPCode>28712</ZIPCode>
        </AddressUS>
        <EINOfRecipient>561920816</EINOfRecipient>
        <IRCSection>501(C)(3)</IRCSection>
        <AmountOfCashGrant>300000</AmountOfCashGrant>
        <PurposeOfGrant>PROGRAMS SERVICES</PurposeOfGrant>
      </RecipientTable>
      <TotalNbrOf501C3AndGovtGrants>2</TotalNbrOf501C3AndGovtGrants>
      <TotalNbrOfOtherOrganizations>0</TotalNbrOfOtherOrganizations>
      <Form990ScheduleIPartIII>
        <TypeOfGrant>JANE WALKER FREEMAN &amp; LINDGREN MEMORIAL NURSING SCHOLARSHIP</TypeOfGrant>
        <NumberOfRecipients>8</NumberOfRecipients>
        <AmountOfCashGrant>11000</AmountOfCashGrant>
      </Form990ScheduleIPartIII>
      <Form990ScheduleIPartIII>
        <TypeOfGrant>RX ASSISTANCE PROGRAM FOR THE MEDICALLY INDIGENT AND UNINSURED</TypeOfGrant>
        <NumberOfRecipients>30</NumberOfRecipients>
        <AmountOfNonCashAssistance>5046</AmountOfNonCashAssistance>
        <MethodOfValuation>FMV</MethodOfValuation>
        <DescriptionOfNonCashAssistance>PRESCRIPTION MEDICATION</DescriptionOfNonCashAssistance>
      </Form990ScheduleIPartIII>
      <Form990ScheduleIPartIV>
        <Identifier>PROCEDURE FOR MONITORING GRANTS IN THE U.S.:</Identifier>
        <ReturnReference>PART I, LINE 2:</ReturnReference>
        <Explanation>SCHEDULE I, PART I, LINE 2: TRANSYLVANIA REGIONAL HOSPITAL IS THE PRIMARY RECIPIENT OF GRANTS FROM THE FOUNDATION, AND ALL PAYMENTS ARE DIRECTLY RELATED TO PROJECTS AUTHORIZED BY THE BOARD OF THAT ORGANIZATION. GRANTS PROVIDED TO ORGANIZATIONS OTHER THAN THE HOSPITAL ARE REQUIRED TO SUBMIT A REPORT ONE YEAR FOLLOWING THE GRANT DETAILING THE USE OF THE FUNDS. SCHOLARSHIPS FOR NURSING ARE ONLY AVAILABLE FOR TUITION FURTHERING EDUCATION IN THE FIELD OF NURSING. AMOUNTS AND SUPPORT FOR INDIVIDUAL PRESCRIPTION ASSISTANCE PROGRAMS ARE MADE DIRECTLY TO THE PHARMACY TO COVER PORTIONS OF DRUG COSTS FOR ASSISTANCE RECIPIENTS. THE FOUNDATION REQUIRES SUBSTANTIATION FROM MEDICAL PROFESSIONALS FOR ALL AMOUNTS REQUESTED UNDER THE PROGRAM.</Explanation>
      </Form990ScheduleIPartIV>
    </IRS990ScheduleI>
    <IRS990ScheduleJ documentId="RetDoc1042400001">
      <CompensationCommittee>X</CompensationCommittee>
      <CompensationSurvey>X</CompensationSurvey>
      <BoardOrCommitteeApproval>X</BoardOrCommitteeApproval>
      <SeverancePayment>0</SeverancePayment>
      <SupplementalNonqualRetirePlan>1</SupplementalNonqualRetirePlan>
      <EquityBasedCompArrangement>0</EquityBasedCompArrangement>
      <CompBasedOnRevenueOfFilingOrg>0</CompBasedOnRevenueOfFilingOrg>
      <CompBasedOnRevenueRelatedOrgs>0</CompBasedOnRevenueRelatedOrgs>
      <CompBasedNetEarningsFilingOrg>0</CompBasedNetEarningsFilingOrg>
      <CompBasedNetEarningsRelateOrgs>0</CompBasedNetEarningsRelateOrgs>
      <AnyNonFixedPayments>0</AnyNonFixedPayments>
      <InitialContractException>0</InitialContractException>
      <Form990ScheduleJPartII>
        <NamePerson>ROBERT J BEDNAREK</NamePerson>
        <Title>PRESIDENT (HOSPITAL CEO)</Title>
        <BaseCompensationFilingOrg>0</BaseCompensationFilingOrg>
        <CompBasedOnRelatedOrgs>236337</CompBasedOnRelatedOrgs>
        <BonusFilingOrg>0</BonusFilingOrg>
        <BonusRelatedOrgs>49687</BonusRelatedOrgs>
        <OtherCompensationFilingOrg>0</OtherCompensationFilingOrg>
        <OtherCompensationRelatedOrgs>16331</OtherCompensationRelatedOrgs>
        <DeferredCompFilingOrg>0</DeferredCompFilingOrg>
        <DeferredCompRelatedOrgs>39276</DeferredCompRelatedOrgs>
        <NontaxableBenefitsFilingOrg>0</NontaxableBenefitsFilingOrg>
        <NontaxableBenefitsRelatedOrgs>13459</NontaxableBenefitsRelatedOrgs>
        <TotalCompensationFilingOrg>0</TotalCompensationFilingOrg>
        <TotalCompensationRelatedOrgs>355090</TotalCompensationRelatedOrgs>
        <CompReportPrior990FilingOrg>0</CompReportPrior990FilingOrg>
        <CompReportPrior990RelatedOrgs>0</CompReportPrior990RelatedOrgs>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <ReturnReference>PART I, LINE 4B</ReturnReference>
        <Explanation>SUPPLEMENTAL NON-QUALIFIED PLAN PAYMENTS: ROBERT BEDNAREK $31,970</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 4</ReturnReference>
        <Explanation>AS A RESULT OF REORGANIZATION, THE SOLE MEMBER OF THE FOUNDATION WAS CHANGED FROM TRANSYLVANIA HEALTH SYSTEM, INC. TO TRANSYLVANIA COMMUNITY HOSPITAL, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 6</ReturnReference>
        <Explanation>THE FOUNDATION IS A MEMBERSHIP CORPORATION, OF WHICH THE SOLE MEMBER IS TRANSYLVANIA COMMUNITY HOSPITAL, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7A</ReturnReference>
        <Explanation>BOARD TRUSTEES ARE NOMINATED BY THE EXECUTIVE COMMITTEE OF THE BOARD, APPROVED BY THE FOUNDATION BOARD AND RATIFIED BY THE FOUNDATION'S SOLE MEMBER AND THE HOSPITAL'S SOLE MEMBER. THEREFORE, FOUNDATION TRUSTEES RECEIVE JOINT APPROVAL BY TRANSYLVANIA COMMUNITY HOSPITAL, INC AND MISSION HEALTH SYSTEM, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION A, LINE 7B</ReturnReference>
        <Explanation>THE BOARD'S POWER TO AMEND OR RESTATE THE FOUNDATION'S ARTICLES OF INCORPORATION, AMEND OR RESTATE THE BYLAWS, AND MERGE, CONSOLIDATE, REORGANIZE OR DISSOLVE THE FOUNDATION IS SUBJECT TO APPROVAL BY THE FOUNDATION'S SOLE MEMBER AND THE HOSPITAL'S SOLE MEMBER. THEREFORE, THESE POWERS ARE SUBJECT TO JOINT APPROVAL BY TRANSYLVANIA COMMUNITY HOSPITAL, INC. AND MISSION HEALTH SYSTEM, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 11</ReturnReference>
        <Explanation>THE RETURN WAS PREPARED BY AN OUTSIDE ACCOUNTING FIRM WITH THE ASSISTANCE AND OVERSIGHT OF MANAGEMENT. UPON REVIEW BY MANAGEMENT, THE RETURN WAS DISTRIBUTED TO BOARD MEMBERS FOR PERSONAL REVIEW. AFTER REVIEW BY THE BOARD MEMBERS THE RETURN WAS FILED WITH THE IRS.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 12C</ReturnReference>
        <Explanation>BOARD MEMBERS ARE REQUIRED TO COMPLETE A CONFILCT OF INTEREST DISCLOSURE STATEMENT ANNUALLY. MEMBERS ARE EXPECTED TO DISCLOSE ANY POTENTIAL CONFLICTS BEFORE DISCUSSIONS OR ACTIONS AFFECTING THE DECISION.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION B, LINE 15A</ReturnReference>
        <Explanation>THE EXECUTIVE DIRECTOR'S SALARY IS DETERMINED BY THE PRESIDENT/CEO OF THE HOSPITAL THROUGH REVIEWS OF MARKET DATA COMPARED TO SPECIFIC GOALS AND COMPETENCIES. THE PRESIDENT/CEO ALSO REVIEWS THE SALARY WITH THE COMPENSATION COMMITTEE OF THE BOARD. THE ORGANIZATION DOES NOT HAVE ANY OTHER PAID OFFICERS OR KEY EMPLOYEES THAT THIS REVIEW AND DETERMINATION PROCESS WOULD APPLY TO.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 18</ReturnReference>
        <Explanation>PHOTOCOPIES OF THE FORM 1023 AND RECENT FILINGS OF THE FORM 990 ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE. IN ADDITION, RECENT FILINGS OF THE FORM 990 ARE AVAILABLE ONLINE AT WWW.GUIDESTAR.ORG.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, SECTION C, LINE 19</ReturnReference>
        <Explanation>PHOTOCOPIES OF THE ORGANIZATION'S FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST AT THE ORGANIZATION'S ADMINISTRATIVE OFFICE.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CHANGES IN NET ASSETS OR FUND BALANCES:</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 9:</ReturnReference>
        <Explanation>ADJUSTMENT TO ACTUARIAL LIABILITY 88,832. EQUITY TRANSER FROM AFFILIATES 8,352,744. BUSINESS COMBINATION LOSS -101,007.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART XII, LINE 2C:</ReturnReference>
        <Explanation>THE SELECTION OF EXTERNAL AUDITORS WAS UPDATED TO REQUIRE APPROVAL BY THE FOUNDATION BOARD AS WELL AS APPROVAL BY THE FOUNDATION'S SOLE MEMBER AND THE HOSPITAL'S SOLE MEMBER. THEREFORE, THESE POWERS ARE SUBJECT TO JOINT APPROVAL BY TRANSYLVANIA COMMUNITY HOSPITAL, INC. AND MISSION HEALTH SYSTEM, INC.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <ReturnReference>FORM 990, PART VI, LINE 16B:</ReturnReference>
        <Explanation>THE ORGANIZATION OWNED A MINORITY INTEREST IN A PUBLICLY TRADED PARTNERSHIP DURING THE YEAR. THE ORGANIZATION DOES NOT ACTIVELY SEEK CONTRIBUTIONS OF PARTNERSHIP INTEREST AND DOES NOT ACCEPT CONTRIBUTIONS THAT COULD JEOPARDIZE ITS EXEMPT STATUS.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc1043400001">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>TRANSYLVANIA HEALTH SYSTEM INC</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>260 HOSPITAL DRIVE</AddressLine1>
          <City>BREVARD</City>
          <State>NC</State>
          <ZIPCode>28712</ZIPCode>
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        <EIN>561456987</EIN>
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