NOTE 16: SUBSEQUENT EVENTS

On October 30, 2015, the Rector and Board of Visitors of the University of Virginia, on behalf of the Medical Center, and Novant Health, Inc. (Novant) entered into an agreement to form a joint operating company effective January, 2016 to operate Culpeper Regional Hospital, Novant Health Haymarket Medical Center, Novant Health Prince William Medical Center, Novant Health Cancer Center at Lake Manassas and other Novant assets as one entity. The joint operating company has two members, Novant and the Medical Center. The equity in the joint operating company will be owned 60% and 40% by Novant and the Medical Center, respectively.