 In 1982, the Board of Directors "voted to create a parent corporation, Emerson Health System, Inc. As the Chairman of the Board wrote in the 1982 annual report, the new corporation was “to provide a conceptual framework for development of a more comprehensive health system and a legal structure in which small, potentially revenue producing corporations could be formed free from state-regulated budget constraints.”114 Emerson Health System Inc. is a not-for-profit corporation organized under Massachusetts law and is tax exempt under the Internal Revenue Code Section 501(c)(3).Emerson Health System Inc. is the sole member of Emerson Hospital and elects the Board of Directors of the Hospital.Emerson Hospital is also a not-for-profit corporation."