| On October 1, 2000 Lincoln Health System
officially partnered with Carolinas HealthCare System by signing a 10-year
management agreement. Under the agreement, Lincoln Health System and Carolinas
Medical Center-Lincoln boards remain intact and must approve the hospital's
annual budget and management action plan. The agreement with Carolinas
HealthCare System will save money for the hospital and improve services within
the community. This affiliation allows the hospital to take advantage of better
volume-buying discounts and greater leverage in managed care
contracts.
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