Message from Michael C. Tarwater, CEO

Dear Friends,

Michael C. Tarwater, CEOThe year 2011 was one of profound transformation for Carolinas HealthCare System. In keeping with our mission to deliver the highest quality healthcare for all, we undertook extraordinary efforts to provide new points of access and create unique models of care delivery. These innovations are significantly expanding our ability to care for patients and communities.

As one of the nation's largest public, not-for-profit healthcare systems, we recognize a special responsibility to exercise leadership. With more than 9 million patient encounters each year, we understand the importance of aligning our healthcare system to accommodate not only current needs, but the future of healthcare delivery.

Our experience with integrated services, in conjunction with other partners across the country, has positioned our organization to provide cutting-edge medicine with a personal touch. We have accomplished a great deal in our 70-plus years and look to the future with great aspirations.

We aspire to build a model that improves access to superior healthcare regardless of where a patient may live. We aspire to create new ways for patients to receive care without having to travel to a doctor's office or emergency room. We aspire to foster new relationships with our patients, employers and neighbors that result in healthier communities for all.

I am tremendously grateful for the achievements of our 48,000-plus employees. Through their compassion, they have created an unparalleled environment for healing. Through their dedication, they are ensuring our ability to adapt successfully to the inevitable changes that lie ahead.

This report includes a sampling of the many initiatives we have undertaken to enhance quality, improve access, encourage innovation and fulfill a passionate commitment to community service. As you will see, we are defining the future of healthcare right here at Carolinas HealthCare System.

Sincerely,

Michael C. Tarwater

Chief Executive Officer