4A (Expenses $ 82887786 including grants of $ 58790323) (Revenue $ 30006666)
"SETON MEDICAL CENTER (""SMC"") IS A 357-BED HOSPITAL WHICH CONTINUES THE TRADITION OF PATIENT-CENTRIC, QUALITY HEALTH CARE. RECOGNIZED FOR ITS STROKE TREATMENT, CARDIO-VASCULAR EXCELLENCE (INCLUDING STEMI CERTIFICATION), SMC OFFERS A COMPREHENSIVE RANGE OF MEDICAL SPECIALTIES ON BOTH AN INPATIENT AND OUTPATIENT BASIS, AS WELL AS EMERGENCY SERVICES. THE SETON MEDICAL CENTER ASSETS WERE SOLD AND THE PROGRAMS RELATING TO PATIENT SERVICES WERE TRANSFERRED TO AHMC HEALTHCARE WITH THE ASSET SALE AS OF AUGUST 14, 2020. ANY PROGRAM SERVICE ACTIVITIES REPORTED HERE ARE THOSE INCURRED PRIOR TO AUGUST 14, 2020 AND THOSE ESSENTIAL TO TRANSITION OF THE PROGRAMS FROM SMC. THE ENTITY IS IN THE PROCESS OF WINDING DOWN FOR EVENTUAL DISSOLUTION."

PART V, SECTION B, LINE 5: ASSESSMENT PROCESS AND METHODS
"IN AN EFFORT TO IDENTIFY THE MOST CRITICAL HEALTH CARE NEEDS IN SETON MEDICAL CENTER'S SERVICE AREA, A COMMUNITY HEALTHCARE NEEDS ASSESSMENT (""CHNA"") IS CONDUCTED EVERY THREE YEARS. THE MOST RECENT ASSESSMENT WAS COMPLETED IN FISCAL YEAR 2019 (TAX YEAR 2018). THE CHNA BUILDS UPON THOSE EARLIER ASSESSMENTS.SETON MEDICAL CENTER AND SETON COASTSIDE ARE MEMBERS OF THE HEALTHY COMMUNITY COLLABORATIVE OF SAN MATEO COUNTY (HCC). THROUGH THIS COLLABORATIVE EFFORT, THE 2019 COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) WAS PRODUCED.THE GOALS OF THE 2019 CHNA ARE TO PROVIDE INSIGHT INTO THE HEALTH OF THE COMMUNITY, PRIORITIZE LOCAL HEALTH NEEDS, AND IDENTIFY AREAS FOR IMPROVEMENT. WITH THIS INFORMATION, HCC MEMBERS INDIVIDUALLY AND COLLECTIVELY DEVELOPED STRATEGIES TO TACKLE CRITICAL HEALTH NEEDS, AS WELL AS IMPROVE THE HEALTH AND WELL-BEING OF COMMUNITY MEMBERS. THE ASSESSMENT FINDINGS ARE ALSO USED AS A GUIDELINE FOR POLICY AND ADVOCACY EFFORTS. IN ADDITION, THE HOSPITAL CONSORTIUM OF SAN MATEO COUNTY, WHICH INCLUDES THE LEADERSHIP OF LOCAL HOSPITALS AND HEALTH DEPARTMENT, PROVIDED DIRECTION TO THE HCC TO ENSURE ALIGNMENT WITH COUNTYWIDE PRIORITY HEALTH INITIATIVES. THE 2019 CHNA REPORT DOCUMENTS HOW THE CURRENT CHNA WAS CONDUCTED, DESCRIBES THE RELATED FINDINGS, AND SHARES THE RESULTS OF STRATEGIES IMPLEMENTED BY SETON MEDICAL CENTER AND SETON COASTSIDE TO ADDRESS THE NEEDS IDENTIFIED BY THE PREVIOUS ASSESSMENT. PLEASE NOTE THAT THE MAJORITY OF ACTIVITIES FOR COMMUNITY BENEFIT WERE HALTED DUE TO COVID-19 PANDEMIC.THE LATEST CHNA, COMPLETED IN FISCAL YEAR 2019 AND DESCRIBED HERE, WAS CONDUCTED COLLABORATIVELY BY HCC MEMBERS IN COMPLIANCE WITH CURRENT FEDERAL REQUIREMENTS.SET TO GATHER INFORMATION FOR ITS LOCAL PLANNING NEEDS AND TO MEET STATE AND FEDERAL MANDATES, THE HCC TOOK THE FOLLOWING APPROACH TO COMPLETE THE 2019 CHNA:TO ASSESS COMMUNITY HEALTH TRENDS, THE HCC DIRECTED ITS CONSULTANT, ACTIONABLE INSIGHTS (AI), TO OBTAIN SECONDARY DATA FROM A VARIETY OF SOURCES. PRIMARY DATA WERE OBTAINED THROUGH DIRECT COMMUNITY INPUT: (A) KEY INFORMANT INTERVIEWS WITH LOCAL HEALTH EXPERTS, (B) FOCUS GROUPS WITH COMMUNITY LEADERS AND REPRESENTATIVES, AND (C) RESIDENT FOCUS GROUPS.TO DETERMINE PARTICIPANTS' HEALTH PRIORITIES, FOCUS GROUP MEMBERS VOTED ON THEIR COMMUNITY'S NEEDS FROM A LIST DERIVED FROM THE PREVIOUS CHNA, AND KEY INFORMANTS STATED WHAT THEY BELIEVED WERE THEIR COMMUNITY'S TOP NEEDS. AI THEN TABULATED HOW MANY FOCUS GROUPS AND KEY INFORMANTS CITED EACH HEALTH NEED AS A PRIORITY.TO ACQUIRE PRIMARY HEALTH DATA SOURCES INTERVIEWS INCLUDED INDIVIDUALS WHO ARE FAMILIAR WITH THE HEALTH NEEDS AND CHALLENGES IN THE COMMUNITY THAT SETON MEDICAL CENTER AND SETON COASTSIDE SERVES. IN ADDITION, KEY INTERVIEWS WERE CONDUCTED WITH MEMBERS OF THE SAN MATEO COUNTY PUBLIC HEALTH DEPARTMENT AND LOCAL COMMUNITY CLINICS.ACTIONABLE INSIGHTS (AI) ALSO ANALYZED DATA ON A VARIETY OF ISSUES, INCLUDING DATA FROM THE 2018 SAN MATEO COUNTY HEALTH AND QUALITY OF LIFE SURVEY, PROVIDED BY SAN MATEO COUNTY HEALTH, AS WELL AS OTHER SECONDARY DATA AND QUALITATIVE DATA FROM FOCUS GROUPS OR KEY INFORMANT INTERVIEWS. AI THEN SYNTHESIZED THESE DATA FOR EACH ISSUE AND APPLIED THE CRITERIA LISTED ABOVE TO EVALUATE WHETHER EACH ISSUE QUALIFIED AS A PRIORITIZED HEALTH NEED. IN 2019, THIS PROCESS LED TO THE IDENTIFICATION OF 12 COMMUNITY HEALTH NEEDS THAT FIT ALL THREE CRITERIA."

PART V, SECTION B, LINE 6A:
SETON MEDICAL CENTER'S CHNA WAS CONDUCTED IN PARTNERSHIP WITH THE HEALTHY COMMUNITY COLLABORATIVE OF SAN MATEO COUNTY WHICH INCLUDES THE FOLLOWING HOSPITALS:1. DIGNITY HEALTH SEQUOIA HOSPITAL2. SAN MATEO COUNTY HEALTH3. KAISER PERMANENTE, SAN MATEO AREA4. LUCILE PACKARD CHILDREN'S HOSPITAL STANFORD5. STANFORD HEALTH CARE6. SUTTER HEALTH (MILLS-PENINSULA MEDICAL CENTER AND MENLO PARK SURGICAL HOSPITAL)

PART V, SECTION B, LINE 6B:
"THE NON-HOSPITAL ORGANIZATIONS INCLUDED IN THE HEALTHY COMMUNITY COLLABORTIVE OF SAN MATEO COUNTY, WHICH SETON MEDICAL CENTER WORKED IN CONJUNCTION WITH TO COMPLETE ITS CHNA, INCLUDE THE COUNTY OF SAN MATEO HUMAN SERVICES AGENCY, AND PENINSULA HEALTH CARE DISTRICT.PART V, SECTION B, LINES 7A AND 10A:ON AUGUST 31, 2018, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. (""VHS OR ""VERITY HEALTH SYSTEM"") AND MOST OF ITS AFFILIATED COMPANIES, INCLUDING THE HOSPITAL, FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. THE BANKRUPTCY CASES ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. ON SEPTEMBER 4, 2020, THE EFFECTIVE DATE OF THE PLAN OF LIQUIDATION OCCURRED AND THE PLAN WAS SUBSTANTIALLY CONSUMMATED. ALL CONDITIONS PRECEDENT TO THE EFFECTIVE DATE OF THE PLAN SET FORTH IN SECTION 12.2 OF THE PLAN HAVE EITHER BEEN SATISFIED OR WAIVED IN ACCORDANCE WITH THE PLAN AND THE CONFIRMATION ORDER. COURT FILINGS ARE AVAILABLE AT KCCLLC.NET/VERITYHEALTH.ON AUGUST 14, 2020, THE SETON MEDICAL CENTER ASSETS WERE SOLD TO AHMC HEALTHCARE AND SMC CEASED TO OPERATE ANY HOSPITALS. THEREFORE, THE SETON MEDICAL CENTER WEBSITE HOSTED BY VHS WAS TERMINATED IN AUGUST 2020. THE CHNA REPORT WAS AVAILABLE AT HTTPS://SETON.VERITY.ORG/SMC/ABOUT.PHP#ABOUT-PANEL4. AS SUCH, THE LINK IS NO LONGER VALID. A COPY OF THE REPORT IS AVAILABLE UPON REQUEST TO THE LIQUIDATING TRUSTEE."

PART V, SECTION B, LINE 11:
SIGNIFICANT HEALTH NEEDS THE HOSPITAL ADDRESSED PRIOR TO SMC CEASING TO OPERATE THE HOSPITALSHEALTH CARE ACCESS AND DELIVERY COMMUNITY INPUT SUGGESTS THAT HEALTH CARE IS OFTEN UNAFFORDABLE. THERE ARE DOWNWARD TRENDS IN THE PROPORTION OF CHILDREN WHO HAVE A USUAL PLACE FOR MEDICAL CHECK-UPS, THE PROPORTION OF EMPLOYED COUNTY RESIDENTS WHOSE JOBS OFFER HEALTH BENEFITS, AND RESIDENTS' PERCEPTIONS OF THE EASE OF ACCESS TO SPECIALTY CARE. LOW SOCIOECONOMIC STATUS RESIDENTS ARE MORE LIKELY THAN HIGHER-STATUS GROUPS TO HAVE HEALTH CARE ACCESS ISSUES.HEALTHY LIFESTYLES - THIS NEED INCLUDES CONCERNS ABOUT DIABETES, OBESITY, AND FITNESS, DIET, AND NUTRITION. DIABETES RANKS AMONG THE LEADING CAUSES OF DEATH IN THE COUNTY. THE PREVALENCE OF DIABETES AND OBESITY ARE BOTH ON THE RISE IN THE COUNTY. STATISTICS FOR ADULT DIABETES PREVALENCE AND YOUTH FRUIT/VEGETABLE CONSUMPTION ARE SIGNIFICANTLY WORSE THAN STATE AVERAGES. ADULTS OF LOW SOCIOECONOMIC STATUS FAIL BENCHMARKS FOR OBESITY AND OVERWEIGHT.NEIGHBORHOOD AND BUILT ENVIRONMENT - THIS NEED INCLUDES ACCESS TO FOOD AND RECREATION, COMMUNITY AND FAMILY SAFETY, COMMUNITY INFRASTRUCTURE AND HOUSING QUALITY, NATURAL ENVIRONMENT/CLIMATE, AND TRANSPORTATION AND TRAFFIC. PROPORTIONS OF HEALTHY FOOD STORES AND WIC-AUTHORIZED FOOD STORES, DRINKING WATER VIOLATIONS, AS WELL AS STATISTICS FOR PUBLIC TRANSIT ACCESS, ROAD NETWORK DENSITY, AND FLOOD VULNERABILITY ARE ALL SIGNIFICANTLY WORSE THAN STATE AVERAGES. FAST FOOD RESTAURANT CHAINS ARE ALSO ON THE RISE IN THE COUNTY. ETHNIC AND INCOME DISPARITIES ARE EVIDENT IN ALMOST ALL ASPECTS OF THIS HEALTH NEED.CANCER - CANCER IS THE LEADING CAUSE OF DEATH IN THE COUNTY. OVERALL CANCER PREVALENCE AS WELL AS INCIDENCE RATES FOR CANCERS, SUCH AS MELANOMA, PROSTATE, AND BREAST CANCERS, ARE SIGNIFICANTLY HIGHER IN THE COUNTY THAN THE STATE. CERTAIN ETHNIC GROUPS IN THE COUNTY EXPERIENCE DISPARITIES, INCLUDING AFRICAN ANCESTRY AND LATINX POPULATIONS. RESPIRATORY CONDITIONS - ASTHMA PREVALENCE IS INCREASING AND IS SIGNIFICANTLY WORSE THAN BENCHMARKS. CONDITIONS CORRELATED WITH HIGHER RATES OF ASTHMA (E.G., VERWEIGHT/OBESITY AND SMOKING) ARE SIGNIFICANTLY HIGHER AMONG THE LOW SOCIOECONOMIC STATUS POPULATION. COPD, BRONCHITIS, AND EMPHYSEMA ARE ALSO RISING AND ARE TWICE AS HIGH AS THE STATE AVERAGE. CHRONIC LOWER RESPIRATORY DISEASE AND INFLUENZA/PNEUMONIA WERE BOTH AMONG THE LEADING CAUSES OF DEATH IN THE COUNTY.

PART V, SECTION B, LINES 16A, 16B AND 16C:
"ON AUGUST 31, 2018, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. (""VHS"") AND MOST OF ITS AFFILIATED COMPANIES, INCLUDING THE HOSPITAL, FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. THE BANKRUPTCY CASES ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. ON SEPTEMBER 4, 2020, THE EFFECTIVE DATE OF THE PLAN OF LIQUIDATION OCCURRED AND THE PLAN WAS SUBSTANTIALLY CONSUMMATED. ALL CONDITIONS PRECEDENT TO THE EFFECTIVE DATE OF THE PLAN SET FORTH IN SECTION 12.2 OF THE PLAN HAVE EITHER BEEN SATISFIED OR WAIVED IN ACCORDANCE WITH THE PLAN AND THE CONFIRMATION ORDER. COURT FILINGS ARE AVAILABLE AT KCCLLC.NET/VERITYHEALTH. IN ADDITION, AS OF AUGUST 14, 2020, SETON MEDICAL CENTER HOSPITAL ASSETS WERE SOLD TO AHMC HEALTHCARE INC., WHICH CONTINUES TO OPERATE THE HOSPITAL. THEREFORE, THE SETON MEDICAL CENTER WEBSITE HOSTED BY VHS WAS TERMINATED. THE FINANCIAL ASSISTANCE POLICY, APPLICATION FORM, AND PLAIN LANGUAGE SUMMARY WERE AVAILABLE AT HTTPS://VERITY.ORG/SMC/FINANCIALASSISTANCE.PHP PRIOR TO THE WEBSTIE TERMINATION. A COPY OF THE REPORT IS AVAILABLE UPON REQUEST TO THE LIQUIDATING TRUSTEE."

PART I, LINE 7:
COSTING METHODOLOGYPRIOR TO CEASING TO OPERATE THE HOSPITALS, SETON MEDICAL CENTER AND SETON COASTSIDE UTILIZED A COST ACCOUNTING SYSTEM THAT DETERMINED COSTS FOR PROVIDING MEDICAL SERVICES BASED ON THE HOSPITAL'S RELATIONSHIP OF COSTS TO CHARGES.PART II: COMMUNITY BUILDING ACTIVITIESSETON MEDICAL CENTER ACKNOWLEDGES THERE ARE MANY PRESSING COMMUNITY NEEDS. ACTIVITIES SELECTED THAT BUILT UPON THE FOUNDATION SET BY OUR PREVIOUS COMMUNITY BENEFIT INITIATIVES (SERVING THE POOR, MINORITY POPULATIONS, ELDERLY AND UNINSURED). THE ACTIVITIES SETON FOCUSED ON DURING FISCAL YEAR 2020 FALL INTO TWO REPORTING AREAS: BENEFITS FOR VULNERABLE POPULATIONS AND BENEFITS FOR THE BROADER COMMUNITY.THE PROGRAMS AND ACTIVITIES WE SUPPORTED ARE BASED ON THE FOLLOWING:- SERVING THE SICK AND THOSE LIVING IN POVERTY WHO LACK BASIC RESOURCES.- DEVELOPING AND IMPLEMENTING COMMUNITY-BASED PROGRAMS TARGETED TOWARDS IMPROVING HEALTH AND LIFESTYLE BEHAVIORS AND ILLNESS PREVENTION.- PROMOTING AND SPONSORING EVENTS THAT OFFER HEALTHCARE SERVICES AND EDUCATION TO THE COMMUNITY AT-LARGE.- PROVIDING INFORMATION AND ADVOCATING FOR LOW-INCOME, UNINSURED OR UNDERINSURED PEOPLE TO GAIN ACCESS TO MEDICAL INSURANCE, GOVERNMENT ASSISTANCE PROGRAMS, HEALTH CARE SERVICES AND CONTINUUM OF CARE.SETON MEDICAL CENTER PRIORITIES IN FISCAL YEAR 2020 WERE REPORTED AND CATEGORIZED AS FOLLOWS:BENEFITS FOR VULNERABLE POPULATIONS:THESE ACTIVITIES ARE INTENDED TO IMPROVE ACCESS TO CARE FOR LOW-INCOME INDIVIDUALS, THE MEDICALLY UNDERSERVED AND OTHER VULNERABLE POPULATIONS. THESE ACTIVITIES INCLUDED PROVIDING HEALTH CARE SERVICES TO THE UNDERINSURED AND UNINSURED COMMUNITY MEMBERS, OPERATING THE HEALTH BENEFITS RESOURCE CENTER, AND PARTNERING WITH COMMUNITY PROGRAMS THAT CARE FOR THE HOMELESS.HEALTH BENEFITS RESOURCE CENTERTHE SETON MEDICAL CENTER HEALTH BENEFITS RESOURCE CENTER (HBRC) PROVIDES A ONE-STOP INFORMATIONAL AND REFERRAL SERVICE THAT ADVOCATES FOR THOSE LIVING IN POVERTY. THE CENTER HELPS LOW-INCOME INDIVIDUALS WITH HEALTH INSURANCE ENROLLMENT ASSISTANCE, CALFRESH (FOOD STAMPS) ENROLLMENT AND REPORTING AND LINKAGE TO ADDITIONAL COMMUNITY RESOURCES. SERVICES ARE PROVIDED IN ENGLISH, SPANISH AND VIETNAMESE.BENEFITS FOR BROADER COMMUNITY:SETON MEDICAL CENTER SUPPORTED A WIDE RANGE OF PROGRAMS AND ACTIVITIES THAT PROVIDED INFORMATION AND RESOURCES TO IMPROVE THE HEALTH AND WELFARE OF THE BROADER COMMUNITY, ACTIVITIES INCLUDED PRESENTING COMMUNITY HEALTH EDUCATION CLASSES, PARTICIPATING IN COMMUNITY HEALTH FAIRS AND SCREENINGS, PROVIDING HEALTH PROFESSIONS EDUCATION, AND PARTNERSHIPS WITHCOMMUNITY ORGANIZATIONS.SETON MEDICAL CENTER ALSO PROVIDED A VARIETY OF SUPPORT GROUPS WITH A SAFE, HEALING ENVIRONMENT WHERE COMMUNITY MEMBERS GATHERED TOGETHER TO COPE WITH THEIR ILLNESS OR LEARN ABOUT AN ILLNESS IN SUPPORT OF A LOVED ONE. IN FISCAL YEAR 2021, SUPPORT GROUPS MEETING AT SETON MEDICAL CENTER INCLUDED DIABETES SUPPORT GROUP AND WEIGHT LOSS PROGRAM. SETON ALSO DONATED MEETING ROOM SPACE TO COMMUNITY-BASED ORGANIZATIONS.COMMUNITY HEALTH FAIRS AND SCREENINGS: ACTIVITIES WERE HALTED IN EARLY 2020 DUE TO COVID-19 PANDEMIC. SETON MEDICAL CENTER WAS PLEASED TO PARTNER WITH AND PARTICIPATE IN COMMUNITY EVENTS AND HEALTH FAIRS BY PROVIDING HEALTH EDUCATION INFORMATION AND SCREENINGS.OUR COMMUNITY HEALTH TEAM PROVIDED A VARIETY OF HEALTH SCREENINGS AT MONTHLY EVENTS SUCH AS WALK ABOUT TALK ABOUT HELD AT A LOCAL SHOPPING MALL. REGISTERED NURSING STAFF PROVIDED FREE BLOOD PRESSURE SCREENINGS. SETON CLINICAL LEADERS ALSO PROVIDED BRIEF TALKS TO THE COMMUNITY IN ATTENDANCE ON HEALTHCARE TOPICS OF INTEREST.SETON MEDICAL CENTER BELIEVED IN COMMUNITY-BASED COLLABORATION AND WAS COMMITTED TO WORKING WITH PARTNERS TO BUILD A HEALTHIER COMMUNITY DURING THE TIME SETON OPERATED THE HOSIPATLS. WE WORKED WITH THE AMERICAN CANCER SOCIETY, AMERICAN HEART ASSOCIATION, AND HEP B FREE SAN MATEO COUNTY AND OTHER ORGANIZATIONS TO ACHIEVE GOALS THAT ARE GREATER THAN WHAT THE HOSPITAL OR ORGANIZATION COULD ACCOMPLISH ALONE.

PART III, LINES 2, 3, AND 4: BAD DEBT EXPENSE
"SETON MEDICAL CENTER IS PART OF THE CONSOLIDATED FINANCIAL STATEMENTS OF VERITY HEALTH SYSTEM OF CALIFORNIA, INC., WHICH INCLUDE ENTITIES OTHER THAN THOSE INCLUDED IN THIS FILING.ON AUGUST 31, 2018, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. (""VHS"") AND MOST OF ITS AFFILIATED COMPANIES, INCLUDING THE HOSPITAL, FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. THE BANKRUPTCY CASES ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. ON SEPTEMBER 4, 2020, THE EFFECTIVE DATE OF THE PLAN OF LIQUIDATION OCCURRED AND THE PLAN WAS SUBSTANTIALLY CONSUMMATED. ALL CONDITIONS PRECEDENT TO THE EFFECTIVE DATE OF THE PLAN SET FORTH IN SECTION 12.2 OF THE PLAN HAVE EITHER BEEN SATISFIED OR WAIVED IN ACCORDANCE WITH THE PLAN AND THE CONFIRMATION ORDER. COURT FILINGS ARE AVAILABLE AT KCCLLC.NET/VERITYHEALTH.DUE TO THE CHAPTER 11 FILING, A FORMAL AUDIT WAS NOT COMPLETED FOR FISCAL YEAR 2018, 2019, 2020, OR 2021. INSTEAD, THE VHS ""MONTHLY OPERATING REPORTS"" REQUIRED BY THE U.S. TRUSTEE'S OFFICE CAN BE OBTAINED FROM KCCLLC.NET/VERITYHEALTH. PLEASE NOTE THAT THE FISCAL YEAR 2017 AUDIT FOOTNOTE REGARDING BAD DEBT FOR THE CONSOLIDATED FINANCIAL STATEMENTS REMAINS TRUE AND ACCURATE. THE FIGURE IN LINE 2 OF PART III IS ONLY SETON MEDICAL CENTER'S PORTION OF THE CONSOLIDATED BAD DEBT EXPENSE."

PART III, LINE 2: METHODOLOGY TO ESTIMATE BAD DEBT EXPENSE
BAD DEBT EXPENSE WAS ESTIMATED BY UTILIZING HISTORICAL COLLECTIONS OF DATA OF SELF-PAY PATIENTS. IN MAKING THIS ESTIMATE, MANAGEMENT ALSO CONSIDERED BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA.PART III, LINE 3: BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS UNDER FAP METHODOLOGYTHE ESTIMATED AMOUNT OF SETON MEDICAL CENTER'S BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE UNDER THE HOSPITAL'S FINANCIAL ASSISTANCE POLICY IS UNDETERMINABLE AND THUS RECORDED AS ZERO.

PART VI, QUESTION 7: STATE FILING OF COMMUNITY BENEFIT REPORT
THE COMMUNITY BENEFIT REPORT IS TYPICALLY FILED WITH THE STATE OF CALIFORNIA. THE ORGANIZATION LAST FILED THE COMMUNITY BENEFIT REPORT IN FISCAL YEAR 2019.

PART III, LINE 4: BAD DEBT EXPENSE FOOTNOTE
"ON AUGUST 31, 2018, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. (""VHS"") AND MOST OF ITS AFFILIATED COMPANIES, INCLUDING THE HOSPITAL, FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. THE BANKRUPTCY CASES ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. ON SEPTEMBER 4, 2020, THE EFFECTIVE DATE OF THE PLAN OF LIQUIDATION OCCURRED AND THE PLAN WAS SUBSTANTIALLY CONSUMMATED. ALL CONDITIONS PRECEDENT TO THE EFFECTIVE DATE OF THE PLAN SET FORTH IN SECTION 12.2 OF THE PLAN HAVE EITHER BEEN SATISFIED OR WAIVED IN ACCORDANCE WITH THE PLAN AND THE CONFIRMATION ORDER. COURT FILINGS ARE AVAILABLE AT KCCLLC.NET/VERITYHEALTH. DUE TO THE CHAPTER 11 FILING, A FORMAL AUDIT WAS NOT COMPLETED FOR FISCAL YEAR 2018, 2019 OR 2020. INSTEAD, THE VHS ""MONTHLY OPERATING REPORTS"" REQUIRED BY THE U.S. TRUSTEE'S OFFICE CAN BE OBTAINED FROM KCCLLC.NET/VERITYHEALTH. PLEASE NOTE THAT THE FISCAL YEAR 2017 AUDIT FOOTNOTE REGARDING BAD DEBT FOR THE CONSOLIDATED FINANCIAL STATEMENTS REMAINS TRUE AND ACCURATE.UNDER VERITY HEALTH SYSTEM'S FINANCIAL ASSISTANCE POLICY, HEALTH CARE SERVICES WERE PROVIDED FREE OF CHARGE OR AT A SIGNIFICANT DISCOUNT BASED ON A SLIDING SCALE TO INDIVIDUALS WHO MEET CERTAIN FINANCIAL CRITERIA. VHS MADE AN EFFORT TO DETERMINE IF A PATIENT QUALIFIES FOR CHARITY CARE UPON ADMISSION. IF A PATIENT WAS DETERMINED TO QUALIFY FOR CHARITY CARE, SERVICES WERE RENDERED TO THE PATIENT FREE OF COST. THE COSTS OF PROVIDING THESE SERVICES ARE INCLUDED IN UNSPONSORED COMMUNITY BENEFIT EXPENSE AND INCLUDED AS A DEDUCTION TO NET PATIENT SERVICE REVENUE IN THE CONSOLIDATED STATEMENT OF OPERATIONS. VHS ESTIMATED PRIOR TO CEASING TO OPERATE THE HOSPITALS, THE COST OF CHARITY CARE BY CALCULATING A RATIO OF COST TO USUAL AND CUSTOMARY CHARGES AND APPLYING THAT RATIO TO THE USUAL AND CUSTOMARY UNCOMPENSATED CHARGES ASSOCIATED WITH PROVIDING CARE TO PATIENTS THAT QUALIFY FOR CHARITY CARE.AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE AND THE APPLICATION OF FINANCIAL DISCOUNTS TO PATIENTS' BALANCES, AND AFTER EXHAUSTING ALL REASONABLE EFFORTS TO COLLECT FROM THE PATIENTS, A SIGNIFICANT PORTION OF VHS' UNINSURED AND SELF-PAY PATIENT ACCOUNTS WERE REFERRED TO THIRD-PARTY AGENCIES BASED ON VHS' ESTABLISHED GUIDELINES FOR FURTHER COLLECTION ACTIVITIES. AS A RESULT, VHS RECORDED A PROVISION FOR DOUBTFUL ACCOUNTS RELATED TO THESE UNINSURED PATIENTS IN THE PERIOD THE SERVICES WERE RENDERED BASED ON HISTORICAL COLLECTION EXPERIENCE.AS PART OF VERITY HEALTH SYSTEM'S MISSION TO SERVE THE COMMUNITY, VHS PROVIDED CARE TO PATIENTS EVEN THOUGH THEY MAY HAVE LACKED ADEQUATE INSURANCE OR MAY HAVE PARTICIPATED IN PROGRAMS THAT DO NOT PAY FULL CHARGES. RESERVES FOR CHARITY CARE AND UNCOLLECTIBLE AMOUNTS HAVE BEEN ESTABLISHED AND ARE NETTED AGAINST PATIENT ACCOUNTS RECEIVABLE IN THE CONSOLIDATED BALANCE SHEETS.PART III, LINE 8: MEDICAREAS A NONPROFIT HOSPITAL, IT WAS OUR MISSION TO IMPROVE THE HEALTH STATUS OF ALL PEOPLE WITHIN OUR COMMUNITY AND PROVIDE HEALTHCARE TO ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY OR THEIR INSURANCE STATUS. SETON MEDICAL CENTER AND SETON COASTSIDE ACCEPTED MEDICARE WHICH RESULTED IN SHORTFALLS IN THE COSTS FOR CARING FOR PATIENTS UTILIZING THIS PROGRAM. SETON MEDICAL CENTER UTILIZED AN ACCOUNTING SYSTEM THAT DETERMINED COSTS FOR PROVIDING MEDICAL SERVICES BASED ON THE HOSPITAL'S RELATIONSHIP OF COSTS TO CHARGES. THE ENTIRE SHORTFALL SHOWN ON PART III, LINE 7 IS REFLECTED AS A COMMUNITY BENEFIT.PART III, LINE 9B: COLLECTION POLICYSETON MEDICAL CENTER AND SETON COASTSIDE FOLLOWED THE COLLECTION PRACTICES AS OUTLINED IN THE VERITY HEALTH SYSTEM FINANCIAL ASSISTANCE POLICY AND BILLING COLLECTION POLICY.FOR PATIENTS WHO QUALIFIED FOR CHARITY CARE AND FINANCIAL DISCOUNT, SETON MEDICAL CENTER AND SETON COASTSIDE PROVIDED THE PATIENT WITH A WRITTEN NOTICE PRIOR TO COMMENCING COLLECTION ACTIVITIES. THE NOTICE STATED THAT NONPROFIT COUNSELING SERVICES MAY BE AVAILABLE IN THE AREA AND PROVIDED INFORMATION CONCERNING STATE AND FEDERAL LAW REQUIREMENTS FOR DEBT COLLECTORS. SETON MEDICAL CENTER AND SETON COASTSIDE DO NOT PURSUE LEGAL ACTION FOR NON-PAYMENT OF BILLS AGAINST ANY HOUSEHOLD WHERE THE PRIMARY WAGE EARNER(S) IS UNEMPLOYED OR THERE ARE NOT SIGNIFICANT INCOME SOURCES. SETON MEDICAL CENTER AND SETON COASTSIDE DO NOT ASSIGN PATIENTS MEETING AN AGREED UPON MONTHLY PAYMENT PLAN TO A COLLECTION AGENCY AND DO NOT REPORT THE PATIENT TO CREDIT BUREAUS. SETON MEDICAL CENTER AND SETON COASTSIDE DO NOT REPORT ADVERSE INFORMATION TO A CONSUMER CREDIT AGENCY OR COMMENCE CIVIL ACTION FOR NONPAYMENT OF A PATIENT DEBT PRIOR TO 150 DAYS AFTER THE INITIAL BILLING OF THE PATIENT. SETON MEDICAL CENTER AND SETON COASTSIDE DO NOT USE WAGE GARNISHMENTS OR LIENS ON REAL PROPERTY AS A MEANS OF COLLECTING UNPAID HOSPITAL BILLS FOR ELIGIBLE PATIENTS. SETON MEDICAL CENTER AND SETON COASTSIDE HAVE AGREEMENTS WITH EXTERNAL COLLECTION AGENCIES TO NOT PURSUE LEGAL ACTION AGAINST AN ELIGIBLE PATIENT WITHOUT PRIOR APPROVAL FROM SETON MEDICAL CENTER OR SETON COASTSIDE. SETON MEDICAL CENTER AND SETON COASTSIDE HAVE AGREEMENTS WITH THEIR EXTERNAL COLLECTION AGENCIES TO FOLLOW FAIR DEBT AND COLLECTION PRACTICES, ASSEMBLY BILL AB774 AND ACT IN A MANNER THAT TREATS INDIVIDUALS WITH DIGNITY, RESPECT AND COMPASSION."

PART VI, QUESTION 2: NEEDS ASSESSMENT
IN ADDITION TO THE FORMAL CHNA, SETON MEDICAL CENTER ASSESSED THE NEEDS OF THE COMMUNITIES IT SERVES THROUGH THE COMMUNITY BENEFIT REPORT. SETON MEDICAL CENTER PREPARED AN ANNUAL COMMUNITY BENEFIT REPORT. IT HIGHLIGHTED THE COMMUNITY'S NEEDS AND SETON MEDICAL CENTER'S PROGRAMS AND ACTIVITIES THAT DIRECTLY RESPONDED TO THE NEEDS. REPORTS ON COMMUNITY BENEFIT ACTIVITIES AND OUTCOMES WERE PROVIDED BY MANAGERS AND DIRECTORS RESPONSIBLE FOR SPECIFIC COMMUNITY BENEFIT PROGRAMS.THE ANNUAL REPORT WAS MADE AVAILABLE TO HOSPITAL LEADERSHIP, KEY STAKEHOLDERS, VHS, AND COMMUNITY ORGANIZATIONS AND MEMBERS. THE ANNUAL REPORT WAS PRESENTED TO THE CALIFORNIA OFFICE OF STATEWIDE PLANNING AND DEVELOPMENT, IN ACCORDANCE WITH SB 697.SETON MEDICAL CENTER'S COMMUNITY BENEFIT REPORT WAS DEVELOPED USING RESULTS FROM THE COMMUNITY HEALTH NEEDS ASSESSMENT, DATA AND INPUT PROVIDED BY THE MANAGERS AND DIRECTORS RESPONSIBLE FOR SPECIFIC COMMUNITY BENEFIT PROGRAMS AND FEEDBACK FROM THE LOCAL GOVERNING BOARD. SETON MEDICAL CENTER'S HOSPITAL BOARD OF DIRECTORS REVIEWED AND GAVE FINAL APPROVAL OF SETON MEDICAL CENTER'S COMMUNITY BENEFIT REPORT. CONTINUAL MONITORING AND EVALUATION OF SETON MEDICAL CENTER'S CURRENT COMMUNITY HEALTH INITIATIVES PROVIDED VITAL INFORMATION TO THE STRATEGIC PLANNING PROCESS FOR COMMUNITY BENEFIT PROGRAMS, WHILE SETON OPERATED THE HOSPITALS.

PART VI, QUESTION 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE
PATIENTS WHO PRESENTED AT SETON MEDICAL CENTER OR SETON COASTSIDE'S EMERGENCY DEPARTMENT OR ADMITTING DEPARTMENT WERE PROVIDED WITH A FINANCIAL ASSISTANCE PACKET THAT CONSISTED OF AN INFORMATIONAL FLYER ON VARIOUS PROGRAMS FOR WHICH THEY MAY HAVE BEEN ELIGIBLE. THE FLYER WAS IN ENGLISH, SPANISH, TAGALOG, AND SIMPLIFIED CHINESE. THE PACKET INCLUDED A MEDICAL APPLICATION, AS WELL AS A CHARITY CARE APPLICATION.IN ADDITION, WHILE SETON OPERATED THE HOSPITALS, THERE WERE SIGNS POSTED IN ENGLISH AND SPANISH IN THE PATIENT FINANCIAL SERVICES DEPARTMENT AND AT EVERY POINT OF REGISTRATION STATING THAT SETON MEDICAL CENTER AND SETON COASTSIDE HAVE FINANCIAL ASSISTANCE AND CHARITABLE PROGRAMS AVAILABLE FOR QUALIFIED LOW INCOME, UNINSURED PATIENTS WHO MAY NOT HAVE THE ABILITY TO MEET THE FINANCIAL OBLIGATION OF THEIR HOSPITAL SERVICES AND A CONTACT NUMBER TO CALL. AFTER DISCHARGE, THE BACK OF THE MONTHLY PATIENT BILLS INCLUDED THIS SAME STATEMENT. THE HEALTH BENEFIT RESOURCE CENTER (HBRC) LOCATED AT SETON MEDICAL CENTER, WHILE SETON OPERATED THE HOSPITALS, PROVIDED ACCESS TO HEALTH BENEFITS AND OTHER RESOURCES THAT PROMOTED HEALTHY FAMILIES, THE HBRC WAS A CENTRALLY LOCATED INFORMATION AND REFERRAL SERVICE THAT LINKED FAMILIES TO GOVERNMENT-SPONSORED HEALTH BENEFITS AND SOCIAL SERVICES, INCLUDING MEDI-CAL, FOOD BANK AND CAL FRESH (FORMERLY FOOD STAMPS). FAMILIES WERE ASSISTED REGARDLESS OF IMMIGRATION STATUS OR INCOME. HBRC PROVIDED FREE CONFIDENTIAL ASSESSMENTS, REFERRALS TO COMMUNITY RESOURCES, AND ASSISTANCE IN COMPLETING APPLICATIONS FOR FREE OR LOW-COST HEALTH INSURANCE PROGRAMS. SERVICES WERE AVAILABLE IN ENGLISH, SPANISH AND TAGALOG.

PART VI, QUESTION 5: PROMOTING THE HEALTH OF THE COMMUNITY
SETON MEDICAL CENTER'S PAYOR MIX INCLUDED A LARGE NUMBER OF MEDICARE (40%) AND MEDI-CAL (20%) PATIENTS. THE HOSPITAL WAS, WHILE OPERATED BY SETON, GOVERNED BY A BOARD OF DIRECTORS COMPOSED OF COMMUNITY MEMBERS, MANY RETIRED ELECTED OFFICIALS AND GOVERNMENT EMPLOYEES, IN ADDITION TO COMMUNITY-BASED PHYSICIANS. THE LOCAL GOVERNING BOARD, WHICH SERVES AS A COMMUNITY ADVISORY BOARD, IS COMPOSED OF COMMUNITY MEMBERS AFFILIATED WITH LOCAL GOVERNMENT, SCHOOL DISTRICT AND HEALTH SERVICES FOR THE UNINSURED. THE SETON FOUNDATION BOARD WAS ALSO COMPOSED OF COMMUNITY MEMBERS AND PHYSICIANS. THE FOCUS WAS TO PROVIDE GRANT FUNDING TO THE HOSPITAL. THESE VARIOUS BOARD MEMBERS HAVE DIRECT KNOWLEDGE OF THE MANY PRESSING COMMUNITY NEEDS FOR OUR VULNERABLE POPULATIONS AND THE BROADER COMMUNITY.SETON COASTSIDE CONTINUED TO OFFER SKILLED NURSING CARE TO 116 INPATIENT RESIDENTS YEAR-ROUND, IN ADDITION TO MEETING THE HEALTHCARE NEEDS OF OUR PATIENTS, AND THE SURROUNDING COASTAL COMMUNITY. SETON COASTSIDE'S DEDICATED STAFF OF INTERDISCIPLINARY HEALTHCARE TEAM PROFESSIONALS PROVIDED EXCELLENT AND COMPREHENSIVE HEALTHCARE. SETON COASTSIDE OPERATED THE ONLY 24-HOUR STANDBY EMERGENCY DEPARTMENT FROM DALY CITY TO SANTA CRUZ. KEY MEDICAL SERVICES INCLUDED PHYSICAL, OCCUPATIONAL AND SPEECH THERAPIES, RADIOLOGY, MAMMOGRAPHY AND LABORATORY.

PART VI, QUESTION 4: COMMUNITY INFORMATION
ALL COMMUNITY INFORMATION INDICATED BELOW IS SOURCED FROM THE 2019 CHNA. SETON MEDICAL CENTER'S SERVICE AREA INCLUDES, BUT IS NOT LIMITED TO, THE CITIES OF SOUTH SAN FRANCISCO, DALY CITY, COLMA, BRISBANE, SAN BRUNO, PACIFICA, MONTARA, MOSS BEACH, HALF MOON BAY AND CERTAIN AREAS OF SAN FRANCISCO. SETON SERVES THE NORTH COUNTY/COASTAL SERVICE AREA IN WHICH THE U.S. CENSUS COUNTED A POPULATION OF 284,838 IN 2013. FEWER THAN ONE QUARTER (20%) OF THE RESIDENTS IN SERVICE AREA ARE UNDER THE AGE OF 18, WHILE ONE THIRD (37%) ARE BETWEEN THE AGES OF 18 AND 44. FOURTEEN PERCENT ARE 65 YEARS OR OLDER. THE NORTH COUNTY/COASTAL SERVICE AREA CITIES HAVE A DIVERSE RACE/ETHNIC PROFILE. THE TWO LARGEST RACIAL SUBPOPULATIONS IN THE SERVICE AREA ARE WHITE (41%) AND ASIAN (39%). ACROSS ALL RACIAL GROUPS, MORE THAN A QUARTER (26%) REPORTED BEING OF HISPANIC/ LATINO DESCENT (THE US CENSUS BUREAU DOES NOT CONSIDER HISPANIC/ LATINO TO BE A RACIAL CATEGORY). DATA ALSO INDICATE THAT NEARLY 8% OF RESIDENTS IN THE SERVICE AREA ARE LIVING IN POVERTY (100% OF FEDERAL POVERTY LEVEL, OR FPL), SIMILAR TO THE PROPORTION ACROSS SAN MATEO COUNTY AS A WHOLE. NEARLY ONE IN FIVE NORTH COUNTY/COASTAL SERVICE AREA RESIDENTS (19%) LIVE BELOW 200% OF THE FPL, AND MORE THAN TWO IN FIVE (44%) HOUSEHOLDS ARE OVERBURDENED BY HOUSING COSTS (I.E., HOUSING COSTS EXCEED 30% OF TOTAL HOUSEHOLD INCOME).THE HOSPITAL'S SERVICE AREA, WITH APPROXIMATELY 451,000 RESIDENTS, INCLUDES THE COMMUNITIES OF DALY CITY, SOUTH SAN FRANCISCO, SAN FRANCISCO, PACIFICA, SAN BRUNO, HALF MOON BAY, MOSS BEACH, BRISBANE, EL GRANADA, AND MONTARA. IN ADDITION TO THE HOSPITAL AND SETON COASTSIDE, KAISER FOUNDATION HOSPITAL - SOUTH SAN FRANCISCO IS THE ONLY OTHER GENERAL ACUTE CARE HOSPITAL LOCATED WITHIN THE SERVICE AREA. THE HOSPITAL RANKS SECOND IN INPATIENT MARKET SHARE WITH 12.6% MARKET SHARE. THE HOSPITAL'S AND SETON COASTSIDE'S PAYOR MIX FOR FY 2018 CONSISTED OF A LARGE PROPORTION OF MEDICARE PATIENTS THAT ACCOUNTED FOR NEARLY 47% OF ALL INPATIENT HOSPITAL DISCHARGES WITH MEDICARE TRADITIONAL AT 38% AND MEDICARE MANAGED CARE AT 9%. MEDI-CAL PATIENTS ACCOUNTED FOR 17% OF ALL INPATIENT DISCHARGES. THIRD-PARTY MANAGED CARE (32%) AND THIRD-PARTY TRADITIONAL (3%) ACCOUNTED FOR 35% OF ALL INPATIENT HOSPITAL DISCHARGES.SAN MATEO COUNTY HAS A COUNTY ORGANIZED HEALTH SYSTEMS MODEL THAT OFFERS ONE MANAGED CARE PLAN. THE SAN MATEO COUNTY ORGANIZED HEALTH SYSTEM MODEL IS PROVIDED BY HEALTH PLAN OF SAN MATEO. IN THE COUNTY ORGANIZED HEALTH SYSTEMS MODEL, THE DEPARTMENT OF HEALTH CARE SERVICES CONTRACTS WITH A HEALTH PLAN CREATED BY THE COUNTY BOARD OF SUPERVISORS. THE PERCENTAGE OF SAN MATEO COUNTY RESIDENTS WITH MEDI-CAL MANAGED CARE COVERAGE HAS INCREASED SIGNIFICANTLY AS A RESULT OF THE ACA AND CALIFORNIA INITIATIVES TO EXPAND MANAGED CARE. CURRENTLY, THE HOSPITAL IS CONTRACTED WITH HEALTH PLAN OF SAN MATEO TO PROVIDE HEALTHCARE SERVICES FOR MEDI-CAL MANAGED CARE PATIENTS. THE PERCENTAGE OF SAN MATEO COUNTY RESIDENTS WITH MEDI-CAL MANAGED CARE COVERAGE HAS INCREASED SIGNIFICANTLY AS A RESULT OF THE AFFORDABLE CARE ACT (ACA) AND CALIFORNIA INITIATIVES TO EXPAND MANAGED CARE. THE MEDI-CAL ELIGIBLES COUNT IN SAN MATEO COUNTY HAS INCREASED MARGINALLY FROM 140,459 MEDI-CAL ELIGIBLES IN 2014 TO 142,985 MEDI-CAL ELIGIBLES IN 2018.

PART VI, QUESTION 6: AFFILIATED HEALTHCARE SYSTEM
"VERITY HEALTH SYSTEM OF CALIFORNIA, INC. (""VHS""), IS A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION, AND IS THE SOLE CORPORATE MEMBER OF THE FOLLOWING CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATIONS THAT OPERATED SIX ACUTE CARE HOSPITALS: O'CONNOR HOSPITAL, SAINT LOUISE REGIONAL HOSPITAL, ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, AND SETON MEDICAL CENTER (INCLUDING THE SETON MEDICAL CENTER COASTSIDE CAMPUS) (COLLECTIVELY, THE ""HOSPITALS"") AND OTHER FACILITIES IN THE STATE OF CALIFORNIA. SETON MEDICAL CENTER AND SETON MEDICAL CENTER COASTSIDE OPERATED UNDER ONE CONSOLIDATED ACUTE CARE LICENSE. THE ASSETS OF O'CONNOR HOSPITAL AND ST. LOUISE REGIONAL HOSPITAL WERE SOLD TO SANTA CLARA COUNTY ON FEBRUARY 28, 2019. THE ASSETS OF ST. VINCENT MEDICAL CENTER WERE SOLD TO DR. PATRICK SOON-SHIONG ON APRIL 16, 2020. AFTER FY2020 THE ASSETS OF ST. FRANCIS MEDICAL CENTER WERE SOLD TO PRIME HEALTHCARE AND SETON MEDICAL CENTER AND SETON COASTSIDE TO AHMC HEALTHCARE INC.ON AUGUST 31, 2018, VHS AND THE HOSPITALS (ALONG WITH OTHER VHS-AFFILIATED ENTITIES) EACH FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE (THE ""BANKRUPTCY CODE""). THE CASES (COLLECTIVELY, THE ""BANKRUPTCY CASES"") ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA (THE ""BANKRUPTCY COURT""). ON SEPTEMBER 4, 2020, THE EFFECTIVE DATE OF THE PLAN OF LIQUIDATION OCCURRED AND THE PLAN WAS SUBSTANTIALLY CONSUMMATED. ALL CONDITIONS PRECEDENT TO THE EFFECTIVE DATE OF THE PLAN SET FORTH IN SECTION 12.2 OF THE PLAN HAVE EITHER BEEN SATISFIED OR WAIVED IN ACCORDANCE WITH THE PLAN AND THE CONFIRMATION ORDER. FOR ALL BANKRUPTCY CASE FILINGS AND MORE DETAIL REGARDING VHS, PLEASE SEE KCCLLC.NET/VERITYHEALTH AND THE DECLARATION OF RICHARD G. ADCOCK IN SUPPORT OF EMERGENCY FIRST-DAY MOTIONS [DOCKET NOS. 8 AND 12].THE HOSPITALS WERE ORIGINALLY SPONSORED BY THE DAUGHTERS OF CHARITY OF ST. VINCENT DE PAUL, PROVINCE OF THE WEST (THE ""DAUGHTERS OF CHARITY""), TO SUPPORT THE MISSION OF THE CATHOLIC CHURCH THROUGH A COMMITMENT TO THE SICK AND POOR. THE DAUGHTERS OF CHARITY BEGAN THEIR HEALTHCARE MISSION IN CALIFORNIA IN 1858 WITH THE OPENING OF LOS ANGELES INFIRMARY, SUBSEQUENTLY KNOWN AS ST. VINCENT MEDICAL CENTER. THE DAUGHTERS OF CHARITY EXPANDED ITS HOSPITALS TO SAN JOSE IN 1889 AND SAN FRANCISCO IN 1893. THE DAUGHTERS OF CHARITY MINISTERED TO ILL, POVERTY-STRICKEN INDIVIDUALS FOR MORE THAN 150 YEARS.IN MARCH 1995, THE DAUGHTERS OF CHARITY MERGED THEIR HOSPITALS WITH CATHOLIC HEALTHCARE WEST (""CHW""). IN JUNE 2001, THE DAUGHTERS OF CHARITY HEALTH SYSTEM (""DCHS"") WAS FORMED. IN OCTOBER 2001, THE DAUGHTERS OF CHARITY WITHDREW FROM CHW. IN 2002, DCHS COMMENCED OPERATIONS AND WAS THE SOLE CORPORATE MEMBER OF THE HOSPITALS, WHICH AT THAT TIME WERE CALIFORNIA NONPROFIT RELIGIOUS CORPORATIONS.IN JULY 2015, THE DCHS BOARD OF DIRECTORS SELECTED BLUEMOUNTAIN CAPITAL MANAGEMENT LLC (""BLUEMOUNTAIN""), A PRIVATE INVESTMENT FIRM, TO RECAPITALIZE THE HOSPITAL OPERATIONS. THE PARTIES ENTERED INTO A SYSTEM RESTRUCTURING AND SUPPORT AGREEMENT, DCHS' NAME WAS CHANGED TO ""VERITY HEALTH SYSTEM OF CALIFORNIA, INC., AND BLUEMOUNTAIN FORMED INTEGRITY HEALTHCARE, LLC (""INTEGRITY"") TO PROVIDE MANAGEMENT SERVICES UNDER A NEW MANAGEMENT SERVICES AGREEMENT, WHICH WAS APPROVED BY THE CALIFORNIA ATTORNEY GENERAL CHARITABLE TRUST DIVISION. IN JULY 2017, NANTWORKS, LLC ACQUIRED A CONTROLLING INTEREST IN INTEGRITY.THROUGHOUT THEIR HISTORY AND CONTINUING THROUGH AUGUST 13, 2020, THE HOSPITALS CONTINUED THE RICH TRADITION OF SERVING THE UNDER-SERVED AND PROVIDING ESSENTIAL HEALTH CARE SERVICES TO THEIR COMMUNITIES. THESE EXPANSIVE SERVICES ARE DETAILED IN MULTIPLE SECTIONS OF THIS FORM 990."