INVESTMENT POLICY

Green Tree Community Health Foundation

Investment Policy Statement

I. Introduction

This document describes a specific set of investment policies and procedures that will assist the Green Tree Community Health Foundation (GTCHF) Investment Committee in overseeing the investment of the GTCHF’s assets (the Portfolio). The guidelines serve to: 1. Articulate a plan for investing the GTCHF’s fund assets

2. Communicate an investment framework between the Investment Committee and the Investment Consultant/investment manager

3. Articulate standards for the measurement of portfolio and manager performance

4. Define the GTCHF’s spending policies

5. Ensure that the funds will be wisely invested and managed to secure the existence of the Foundation in perpetuity

II. Background and Mission

A. GTCHF was established in March of 2005 as the successor organization of the Chestnut Hill Hospital and related companies. The Foundation was created when Community Health Systems acquired the majority of the assets of the former hospital. GTCHF is a public charity providing grant support to non-profit health and human services organizations serving Northwest Philadelphia and Eastern Montgomery County.

B. GTCHF is a non-profit organization as defined by 501 (c) 3 of the United States Internal Revenue Service Code of 1986 as amended and operates as a public charity as further defined in Section 509 (a) (1) of the IRS code.

C. GTCHF operates on a fiscal year. The fiscal year begins July 1st and ends June 30th. The annual operating and spending budgets coincide with the fiscal year.

D. The terms of the asset purchase agreement provide an opportunity to receive approximately $25 million less debt and pension requirements from the sale. GTCHF anticipates conducting a fund-raising program and is in a position to accept gifts and bequests from donors who wish to contribute to this effort. GTCHF also will accept various gifts from previously established trusts which had designated Chestnut Hill Hospital or any of its related companies as a beneficiary.

E. The mission of the GTCHF is to improve the health status of community residents and initiating and supporting activities in response to identified needs in partnership with community resources.

F. GTCHF seeks to make a difference through its strategic grant-making program. It envisions providing targeted financial support to assist in the furthering of new ideas and programs, to expand existing programs — GTCHF does not wish to function as an operating agency.

III. Duties and Responsibilities

GTCHF’s Directors are responsible as fiduciaries to manage all of its investable assets. In order to do this GTCHF directs the Investment Committee (the Committee) to assume responsibility for all of the activities that include, but are not limited to, the following: All decisions and recommendations of the Investment Committee must be approved by the full Board of Directors. 1. Establish investment goals with regards to spending policy, portfolio returns, and appropriate risk exposure as reflected by the Committee.

2. Update annually the spending policies and gain approval by the Board of Directors

3. Select and retain a qualified professional investment manager. Review the recommendations for the appropriate investments

4. Provide the investment manager with anticipated spending needs and an annual withdrawal rate

5. Voting the proxies of any investment vehicle where full discretion has not been granted

6. Utilize the Investment Policy Statement to provide boundaries, where necessary, for ensuring the portfolio’s investments are managed consistent with the short-term and long-term financial goals of GTCHF. At the same time, recognize its investment flexibility in the face of changes in capital market conditions and in the financial circumstances of the foundation.

7. Review this Investment Policy Statement at least once per year. Changes to this Investment Policy Statement can be made only by unanimous affirmation by the members of the Committee, and ratification by the full Board of Directors.Written confirmation of the changes will be provided to all Committee members and to any other parties hired on behalf of the Portfolio as soon thereafter as is practical.

IV. Investment Objectives and Spending Policy

A. The Portfolio is to be invested with the objective of preserving the long-term, real purchasing power of assets while providing a relatively predictable and growing stream of annual distributions (in real terms) in support of GTCHF.

B. For the purpose of making distributions, the Portfolio shall make use of a total return based spending policy, meaning that it will fund distributions from net investment income, net realized capital gains, and proceeds from the sale of investments.

C. The distribution of Portfolio assets will be permitted to the extent that such distributions do not exceed a level that would erode the Portfolio’s real assets over time. The Committee will seek to reduce the variability of annual Portfolio distributions by factoring past spending and Portfolio asset values into its current spending decisions. The Committee will review its spending assumptions annually for the purpose of deciding whether any changes therein necessitate amending the Portfolio’s spending policy, its target asset allocation, or both.

D. The Board of Directors awards grants, including approval of its administrative budget, in accordance with the spending policy adopted annually. The annual cash payout is currently defined as no greater than 4% of the average fair market value, using a three year 12-quarter trailing average.

V. Portfolio Investment Policies

Asset Allocation Policy 1. The Committee recognizes that the strategic allocation of Portfolio assets across broadly-defined financial asset and sub-asset categories with varying degrees of risk, return, and return correlation will be the most significant determinant of long-term investment returns and Portfolio asset value stability.

2. The Committee expects that actual returns and return volatility may vary widely from expectations and return objectives across short periods of time. While the Committee wishes to retain flexibility with respect to making periodic changes to the Portfolio’s asset allocation, it expects to do so only in the event of material changes to the fund, to the assumptions underlying fund spending policies, and/or to the capital markets and asset classes in which the Portfolio invests.

3. Fund assets will be managed as a balanced portfolio comprised of two major components: an equity portion and a fixed income portion. The expected role of fund equity investments will be to maximize the long-term real growth of Portfolio assets, while the role of fixed income investments will be to generate current income, provide for more stable periodic returns, and provide some protection against a prolonged decline in the market value of Portfolio equity investments.

4. Cash investments will, under normal circumstances, only be considered as temporary Portfolio holdings, and will be used for fund liquidity needs or to facilitate a planned program of dollar cost averaging into investments in either or both of the equity and fixed income asset classes.

5. Outlined below are the long-term strategic asset allocation guidelines, determined by the Committee, in consultation with the investment manager, to be the most appropriate, given the fund’s long-term objectives and short-term constraints. Portfolio assets will, under normal circumstances, be allocated across broad asset and sub-asset classes in accordance with the following guidelines: