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      <Form990ScheduleJPartIII>
        <Identifier>SCHEDULE J, PART I, LINE 4B:</Identifier>
        <Explanation>CERTAIN INDIVIDUALS REPORTED IN FORM 990, PART VII PARTICIPATE IN A SUPPLEMENTAL EMPLOYEE RETIREMENT PLAN MAINTAINED BY BEEBE MEDICAL CENTER. PARTICIPATION IS VOLUNTARY and is open to all Executive staff members or employed physicians who are designated by the Committee of the Beebe Medical Center Board of Directors. Participants elect to reduce the amount of compensation which would otherwise be earned and payable in the following plan year in whole dollar amounts or in 1% increments up to 100% to be deposited into a trust account. Participants become vested at the time specified in their deferral election. Title to the trust remains with Beebe Medical Center until requirements are fulfilled. SCHEDULE J, PART I, LINE 7: EXECUTIVES AND MANAGEMENT TEAM MEMBERS ARE ELIGIBLE FOR BONUSES IF THEY MEET SPECIFIC ORGANIZATIONAL OBJECTIVES INCLUDING QUALITY AND SAFETY ISSUES, PATIENT SATISFACTION SCORES, AND CERTAIN FINANCIAL GOALS. FOR VICE PRESIDENTS, 60% OF THEIR ELIGIBLE INCENTIVE IS BASED UPON ORGANIZATION - WIDE GOALS AND 40% IS BASED UPON INDIVIDUAL GOALS. FOR THE CEO, 100% OF THE ELIGIBLE INCENTIVE IS BASED UPON ORGANIZATION - WIDE OR TEAM GOALS. CERTAIN PHYSICIANS ARE ELIGIBLE FOR AN INCENTIVE BASED ON THE PHYSICIAN'S INDIVIDUAL PRACTICE NUMBER OF WORKED RVU'S.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleO documentId="IRS990ScheduleO">
      <GeneralExplanation>
        <Identifier>FORM 990, PART III, LINE 4D:</Identifier>
        <Explanation>BEEBE PHYSICIAN NETWORK OPERATES A PHYSICIAN NETWORK WHICH WILL ASSIST IN MEETING THE HEALTH NEEDS AND GOALS OF ALL PERSONS IN ITS SERVICE AREA WITHOUT DISCRIMINATION, AS AN INTEGRAL PART OF THE COMMUNITY OF SUSSEX COUNTY. FORM 990, PART VI, LINE 6: BEEBE MEDICAL CENTER IS THE SOLE MEMBER OF BEEBE PHYSICIAN NETWORK. FORM 990, PART VI, LINE 7A: THE BOARD OF DIRECTORS OF BEEBE PHYSICIAN NETWORK ARE APPROVED BY BEEBE MEDICAL CENTER. FORM 990, PART VI, LINE 7B: THE BOARD OF DIRECTORS OF BEEBE MEDICAL CENTER APPROVES THE DECISIONS OF THE BOARD OF DIRECTORS OF BEEBE PHYSICIAN NETWORK. FORM 990, PART VI, LINE 11: MANAGEMENT PREPARES A DRAFT OF THE FORM 990. THE RETURN IS REVIEWED BY A THIRD PARTY ACCOUNTING FIRM. THE RETURN IS REVIEWED BY SENIOR MANAGEMENT AND A COPY OF THE FORM 990 WAS PROVIDED TO THE GOVERNING BODY BEFORE IT WAS FILED. FORM 990, PART VI, LINE 12C: BEEBE PHYSICIAN NETWORK ADOPTED THE FORMAL WRITTEN CONFLICT OF INTEREST POLICY OF BEEBE MEDICAL CENTER. ANNUALLY CONFLICT OF INTEREST STATEMENTS ARE REQUIRED FOR ALL BOARD MEMBERS, EXECUTIVES, AND MANAGEMENT TEAM MEMBERS. CONFLICT OF INTEREST STATEMENTS ARE REVIEWED BY THE BOARD FOR THE EXISTENCE OF ANY ADVERSE INTEREST. FORM 990, PART VI, LINE 15A AND 15B: FOR COMPENSATION PAID BY BEEBE PHYSICIAN NETWORK, INC., SALARIES ARE CONSISTENT WITH CURRENT MGMA DATA. FOR THOSE OFFICERS COMPENSATED BY BEEBE MEDICAL CENTER, A RELATED ORGANIZATION, THE EXECUTIVE COMMITTEE OF THE BOARD OF TRUSTEES GOVERNS AND CONTROLS EXECUTIVE COMPENSATION. PAY IS DETERMINED BY COMPARING TO OTHER TAX-EXEMPT HEALTH SYSTEMS SIMILAR TO BEEBE MEDICAL CENTER IN SIZE AND COMPLEXITY LOCATED REGIONALLY AND THROUGHOUT THE UNITED STATES. PAY IS POSITIONED AT THE 50TH PERCENTILE OF BEEBE MEDICAL CENTER'S PEER GROUP. THE EXECUTIVE COMMITTEE UTILIZES A CONSULTANT FOR EXECUTIVE COMPENSATION ADVICE. MINUTES OF MEETINGS ARE MAINTAINED TO DOCUMENT DELIBERATION AND DECISIONS. FORM 990, PART VI, LINE 19: THE ORGANIZATION MAKES ITS ORGANIZING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON WRITTEN REQEUST TO THE FOLLOWING ATTENTION AND ADDRESS: BEEBE PHYSICIAN NETWORK, INC., 400 SAVANNAH ROAD, SUITE B, LEWES, DE 19958, ATTN: DEBBIE K. CRAFT, PRESIDENT.</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="IRS990ScheduleR">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>BEEBE MEDICAL CENTER</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>424 SAVANNAH ROAD</AddressLine1>
          <City>LEWES</City>
          <State>DE</State>
          <ZIPCode>19958</ZIPCode>
        </AddressUS>
        <EIN>510067938</EIN>
        <PrimaryActivities>HEALTHCARE</PrimaryActivities>
        <LegalDomicileState>DE</LegalDomicileState>
        <ExemptCodeSection>501(C)(3)</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
      </Form990ScheduleRPartII>
      <ReceiptOfIntAnnRentsRoyalties>false</ReceiptOfIntAnnRentsRoyalties>
      <GiftGrantOrCapContrToOtherOrg>true</GiftGrantOrCapContrToOtherOrg>
      <GiftGrantOrCapContrFrOtherOrg>true</GiftGrantOrCapContrFrOtherOrg>
      <LoansOrGuaranteesToOtherOrg>false</LoansOrGuaranteesToOtherOrg>
      <LoansOrGuaranteesFromOtherOrg>false</LoansOrGuaranteesFromOtherOrg>
      <SaleOfAssetsToOtherOrg>false</SaleOfAssetsToOtherOrg>
      <PurchaseOfAssetsFromOtherOrg>false</PurchaseOfAssetsFromOtherOrg>
      <ExchangeOfAssets>false</ExchangeOfAssets>
      <RentalOfFacilitiesToOtherOrgs>false</RentalOfFacilitiesToOtherOrgs>
      <RentalOfFacilitiesFrOtherOrgs>true</RentalOfFacilitiesFrOtherOrgs>
      <PerformOfServicesForOtherOrgs>true</PerformOfServicesForOtherOrgs>
      <PerformOfServicesByOtherOrgs>true</PerformOfServicesByOtherOrgs>
      <SharingOfFacilities>false</SharingOfFacilities>
      <SharingOfPaidEmployees>false</SharingOfPaidEmployees>
      <ReimbursementPaidToOtherOrg>false</ReimbursementPaidToOtherOrg>
      <ReimbursementPaidByOtherOrg>false</ReimbursementPaidByOtherOrg>
      <OtherTransferToOtherOrg>false</OtherTransferToOtherOrg>
      <OtherTransferFromOtherOrg>false</OtherTransferFromOtherOrg>
    </IRS990ScheduleR>
  </ReturnData>
</Return>