Calais Regional Hospital

“A Board of Trustees elects members of the Board of Directors at an annual meeting of the Board of Trustees. On March 24, 2021 the Board of Directors were disbanded and replaced by a Plan Officer. The Hospital was then sold on June 30, 2021.”

“At the annual meeting of the Board of Trustees, actions of the Board of Directors during the year are acted on and ratified. On March 24, 2021 the Board of Directors were disbanded and replaced by a Plan Officer. The Hospital was then sold on June 30, 2021.”

“The Board of Trustees was disbanded effective March 24, 2021 and replaced with the Plan Officer. The Plan Officer will review and approve the 990.”

“An interested party has a duty to disclose an actual or possible conflict of interest to the CEO or governing body Chairperson. The governing board of directors will determine whether a conflict of interest exists. If a conflict is determined, the interested party may make a presentation to the governing body but then leave during discussion of and vote on the involved transaction. The Chairperson, if deemed appropriate, shall appoint a disinterested person to investigate alternatives. After exercising due diligence the governing body shall determine whether the hospital can obtain with reasonable efforts a more advantageous transaction that would not give rise to a conflict of interest. If a more advantageous transaction is not reasonably possible the governing board shall determine by majority vote whether the transaction is in the Hospital's best interest and whether it is fair and reasonable. Minutes of all meetings regarding the transaction will be maintained. On March 24, 2021 the Board of Directors were disbanded and replaced by a Plan Officer. The Hospital was then sold on June 30, 2021.”

“The Executive Committee of the Board of Directors serves as an Executive Compensation Committee. Performance review is completed and is presented, along with comparative salary information to the Committee by the Hospital's management company. After consideration of the comparative information and performance review, the Executive Committee determines and authorizes an appropriate compensation level.”

“The Hospital prepares and circulates via US Postal Service an Annual Report, which goes to every household in what is defined as the Hospital Service Area. The Annual Report is also available on the Hospital website at: http://www.calaishospital.com. Additionally, at the annual meeting of the Trustees, copies of the audited financial statements are shared with all present including representatives of the press in attendance. Other documents as appropriate would be available upon request.”

“On March 24, 2021 the Board of Directors were disbanded and replaced by a Plan Officer. The Hospital was then sold on June 30, 2021.”

“On September 17, 2019, the Hospital filed a petition for relief under Chapter 11 of the federal bankruptcy laws in the United States Bankruptcy Court for the District of Maine. On February 19, 2021, Downeast Community Hospital (DECH), the only other hospital in Washington County, filed a motion with the United States Bankruptcy Court District of Maine, together with the creditors' committee, to allow DECH to purchase substantially all of the assets of the Hospital. The United States Bankruptcy Court, District of Maine, approved a plan of liquidation on March 24, 2021, and the Hospital determined liquidation is imminent. As a result, the Hospital changed its basis of accounting on January 1, 2021 from the going concern basis to the liquidation basis. There was no significant impact on the statement of changes in net (deficit) assets in liquidation as a result of changing to the liquidation basis of accounting on January 1, 2021 rather than March 24, 2021. Liquidation is expected to be completed within twelve months of June 30, 2021.”

“Other Fees: Program service expenses 1,200,213. Management and general expenses 308,752. Fundraising expenses 0. Total expenses 1,508,965. Purchased Services: Program service expenses 795,647. Management and general expenses 369,958. Fundraising expenses 0. Total expenses 1,165,605. Physician Fees: Program service expenses 807,849. Management and general expenses 0. Fundraising expenses 0. Total expenses 807,849.”

“Section 1.263(a)-3(n) Election: Calais Regional Hospital 24 Hospital Lane Calais, ME 04619 EIN: 01-0211783 Calais Regional Hospital is electing to capitalize repair and maintenance costs under Regulation Section 1.263(a)-3(n).”

“Relinquishment of Interest in Perpetual Trust -443,514. Amounts owed and payments made to USDA under the plan of liquidation -5,650,598.”

“The United States Bankruptcy Court, District of Maine, approved a plan of liquidation on March 24, 2021, and the Hospital determined liquidation is imminent. As a result, the Hospital changed its basis of accounting on January 1, 2021 from the going concern basis to the liquidation basis.”