CHAIRMAN OF COUNTY COMMISSIONERS Chatham Couny Courhouse oat Offea Box S161 sue 10" 124 Bul St Savannah, Gootgia 31612 Albert J. Seott ‘Chaleman (o1ajes2-7670 (02) €82-7660 fax lscogchathamecunty ox ema June 3, 2016 Mr. Don Waters Chairman, Hospital Authority Brasseler USA 1 Brasseler Blvd Savannah, GA 31419 Dear Don: Lappreciate the continued efforts of the Chatham County Hospital Authority members to ensure that Memorial remains a leader in providing healthcare services to Chatham County and the surrounding area. The County Commission has not been directly involved with decisions pertaining to Memorial Hospital, but will rely heavily on the advice and counsel of the Authority as to the Hospital’s future direction. As you know, the County, as guarantor of $164 million in hospital bonds has the interest to ensure these obligations are met. The County and the Authority should have concerns given the publicized statements by some members of the Memorial Board’s indicating that Novant was a “make or break” deal Given Novant’s withdrawal and apparent lack of interest in addressing the Authority’s concerns to ensure the needed safety net healthcare services, I would request the Authority to evaluate interest of other health care providers as to any potential partnership or operating arrangement. As part of this due diligence, the County would support through an RFQ process to engage an outside healthcare audit firm to review and determine the true financial condition of Memori An honest accounting of Memorial’s financial condition, and any existing agreements between Memorial and Novant, will be important to the Authority and indirectly the County, as well as. interested third parties that may pursue a management agreement, merger, purchase or other participatory structure designed to ensure that the future of the Hospital remains financially sound so that it will effectively provide healthcare services to the community.Mr. Don Waters June 3, 2016 Page 2 It is my understanding that the Authority has the right to receive the financial material and conduct an audit under the terms of its existing lease. Further, it is my understanding that the County, under the terms of its bond documents, including the supporting Covenant Agreement (§ 1.09 (@),(e)) has the right to receive all financial documentation necessary to audit the Hospital’s operation. In view of the multiple healthcare providers expressing an interest in a relationship with Memorial, I would suggest the Hospital Authority consider retaining a independent financial advisor to provide professional services to assist the Authority in evaluating the merits of proposals made by the interested healthcare providers. Hopefully, this process will find the proper business model and relationship to ensure Memorial’s healthcare success for the community. Once the Authority has had the opportunity to explore and formulate a plan of action, the County will be open to cooperation in a supportive manner to assist in the Authority’s success. Sincerely, lids Albert J. 9€ott, Chairman Chatham County Commission