REDLANDS SURGICAL SERVICES - Page 28




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          Medical Advisory Group                                                      
               Pursuant to paragraph 9.6 of the Operating Partnership                 
          agreement, supra, all questions regarding medical standards and             
          policies at the Surgery Center are determined by a Medical                  
          Advisory Group, which also reviews procedures being performed at            
          the Surgery Center.  The Medical Advisory Group is composed of              
          six physicians who are all limited partners of the Operating                
          Partnership.  The managing directors of the General Partnership             
          select three members of the medical advisory group; Beaver                  
          Medical Clinic--which is a limited partner in the Operating                 
          Partnership--selects the other three members.  Prior to the                 
          affiliation of the General Partnership with the Surgery Center,             
          the Medical Advisory Group was inactive.                                    

          Redlands Surgical Services (Petitioner)                                     
               On August 1, 1990, 5 months after entering into the General            
          Partnership agreement, RHS incorporated petitioner as a                     
          California nonprofit public benefit corporation.  On September              
          30, 1990, RHS transferred its interest in the General Partnership           
          to petitioner.                                                              
               RHS formed petitioner with the intent that petitioner's sole           
          planned activity would be its efforts with respect to the                   
          Operating Partnership.  The decisions to incorporate petitioner             
          as a separate corporate entity and to transfer the interests in             






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Last modified: May 25, 2011