IHC Health Plans, Inc. - Page 4

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          During 1970, LDS Church organized Health Services                           
          Corporation, later renamed Intermountain Health Care, Inc. (IHC),           
          as a nonprofit corporation under the laws of the State of Utah.             
          LDS Church organized IHC for the purpose of assuming ownership              
          and control of its hospitals and to oversee its worldwide health            
          program.  Respondent recognized IHC as an organization described            
          in section 501(c)(3) that is exempt from taxation pursuant to               
          section 501(a).                                                             
               During 1975, LDS Church determined that its hospitals were             
          not central to its mission and subsequently transferred control             
          of IHC to an independent board of trustees.  Between 1975 and the           
          early 1980s, IHC continued to operate its existing hospitals                
          while it constructed or acquired additional hospitals.  At the              
          same time, IHC began the process of centralizing its management,            
          coordinating its services, restructuring its debt, and                      
          undertaking other steps that its management deemed necessary for            
          IHC to become an integrated multihospital system capable of                 
          expanding its services, achieving economies of scale, and                   
          improving operational efficiency.                                           
               During the early 1980s, in response to myriad changes in the           
          health care field, IHC decided to restructure its operations,               
          which restructuring included the formation of several affiliates.           
          In February 1983, the Internal Revenue Service issued a private             
          letter ruling to IHC approving its corporate reorganization plan.           

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Last modified: May 25, 2011