KENTUCKYONE HEALTH MEDICAL GROUP INC

THE PRIMARY EXEMPT PURPOSE OF KHMG IS TO PROVIDE QUALITY MEDICAL CARE THROUGH PHYSICIAN AND ADVANCED PRACTICE CLINICIAN SERVICES AT CLINIC LOCATIONS IN THE CENTRAL AND EASTERN KENTUCKY AREA REGARDLESS OF ABILITY TO PAY. KHMG'S SOLE CORPORATE MEMBER IS KENTUCKYONE HEALTH, INC A KENTUCKY NONPROFIT CORPORATION THAT IS EXEMPT FROM FEDERAL INCOME TAX AS AN ORGANIZATION DESCRIBED UNDER 501(C)(3) OF THE INTERNAL REVENUE CODE CLASSIFIED AS AN ORGANIZATION DESCRIBED IN SECTION 509(A)(2). FOR AN ORGANIZATION TO BE EXCLUDED FROM PRIVATE FOUNDATION STATUS AS AN ORGANIZATION DESCRIBED IN IRC 509(A)(2), IT MUST NORMALLY RECEIVE MORE THAN ONE-THIRD OF ITS SUPPORT FROM ANY COMBINATION OF GIFTS, GRANTS, CONTRIBUTIONS, MEMBERSHIP FEES, AND GROSS RECEIPTS FROM PERMITTED SOURCES, AND NOT MORE THAN ONE-THIRD OF ITS SUPPORT FROM GROSS INVESTMENT INCOME AND THE EXCESS OF THE AMOUNT OF UNRELATED BUSINESS TAXABLE INCOME OVER THE AMOUNT OF TAXES IMPOSED BY IRC 511. KHMG PROVIDES CONVENIENT, HIGH QUALITY CARE AND PREVENTATIVE HEALTH SERVICES. SOME OF THE KHMG OFFICES ARE LOCATED IN ECONOMICALLY DEPRESSED AREAS ALLOWING THE PRACTICE TO SERVICE A POPULATION UNABLE TO MEET ITS FINANCIAL OBLIGATION FOR PAYMENT OF SERVICES AND TO MAKE QUALITY HEALTHCARE ACCESSIBLE IN THESE AREAS. KHMG PROVIDES A BROAD RANGE OF MEDICAL SERVICES AT ITS CLINICS INCLUDING PRACTICE AREAS AS FOLLOWS: * CARDIOLOGY * NEUROLOGY * NEURO SURGERY* SPINE SURGERY* ORTHOPEDICS * PRIMARY CARE * OBSTETRICS AND GYNECOLOGY * GENERAL SURGERY* RHEUMATOLOGY* ENDOCRINOLOGY* PULMONOLOGY* GASTROENTEROLOGY* BEHAVIORAL HEALTH* UROLOGYKHMG PROVIDES MEDICAL SERVICES ON A NONDISCRIMINATORY BASIS TO ALL PERSONS IN THE COMMUNITY ABLE TO PAY THE COST THEREOF EITHER DIRECTLY OR THROUGH THIRD-PARTY REIMBURSEMENT, AS WELL AS TO THOSE ENROLLED IN THE MEDICARE AND MEDICAID PROGRAMS. ADDITIONALLY, KHMG PROVIDES HEALTH CARE SERVICES TO ALL INDIVIDUALS REGARDLESS OF THEIR ABILITY TO PAY IN ACCORDANCE WITH KHMG'S CHARITY CARE POLICY.