MERCY HEALTH IS TAX EXEMPT UNDER IRC SECTION 501(C)(3) AND 170(B)(1)(A)(1) AS A CHURCH. MERCY HEALTH IS LISTED IN THE OFFICIAL CATHOLIC DIRECTORY AND ITS TAX-EXEMPT STATUS IS DERIVED FROM THE GROUP EXEMPTION RULING OF THE UNITED STATES CONFERENCE OF CATHOLIC BISHOPS. MERCY HEALTH IS THE SOLE CORPORATE MEMBER OF 15 TAX-EXEMPT ORGANIZATIONS, WHICH IN TURN ARE THE SOLE CORPORATE MEMBERS OF OVER 50 OTHER TAX-EXEMPT ORGANIZATIONS. THESE OTHER TAX-EXEMPT ORGANIZATIONS INCLUDE BUT ARE NOT LIMITED TO HOSPITALS, FOUNDATIONS, AND MEDICAL GROUP/PHYSICIAN CLINIC ORGANIZATIONS. ALL OF THE EXEMPT ORGANIZATIONS ARE ESSENTIAL TO MERCY HEALTH AND IN CARRYING OUT THE EXEMPT PURPOSE OF MERCY HEALTH.