Millinocket Regional Hospital

“Millinocket Regional Hospital contracted with Calculations, Inc., an unrelated organization, to provide CFO services during the fiscal year. Calculations, Inc. was paid $156,116 for services provided by Mellissa McAvoy, who is an officer of Calculations, Inc. and served as Board President of MRH during the filing period.”

“Prior to the document's filing, the organization's finance department reviews the initial draft, which is prepared by an outside independent accountant. After any necessary changes are made, the organization's board members are presented with a copy. The finalized document is subject to the board's approval.”

“Each board member is required to sign a conflict of interest disclosure form on an annual basis. In connection with any actual or possible conflicts of interest, an interested individual must disclose the existence of his or her conflict annually and whenever the conflict arises for action at a meeting. After receiving all annual attestations, the CEO will provide the signed statements to the hospital's attorney for review. After review, the attorney will determine if a conflict exists and inform the CEO and Board Chair of the conflicted individuals. There is a listing of board, medical staff and manager conflicts available at all meetings for reference. The agenda for every board, medical staff or department meeting will clearly list the discussion items that require action during the meeting. At the beginning of the meeting, the president will ask the members to review the list of action items and declare whether or not they have a conflict. All conflicted members will be required to excuse themselves and leave the room during the discussion and vote. If the board or committee has reasonable cause to believe that a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose.”

“The organization works with an independent compensation consultant to determine appropriate compensation levels. The organization's executive committee reviews data used to determine compensation for its respective members. Any compensation related changes must be approved by the Board of Trustees or the executive board.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“The Hospital does not have a formal written policy regarding its participation in joint ventures. However, the Hospital's executives and, if necessary, its Board, evaluate and monitor any potential or ongoing joint ventures to ensure that such activities remain consistent with the Hospital's charitable mission, community health goals, and exempt status.”

“Professional Services: Program service expenses 4,125,194. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,125,194. Outside Services: Program service expenses 3,864. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,864. Contract Labor: Program service expenses 320,910. Management and general expenses 31,027. Fundraising expenses 0. Total expenses 351,937. Purchased Services: Program service expenses 1,800,475. Management and general expenses 1,456,471. Fundraising expenses 0. Total expenses 3,256,946.”

“The audit process has not changed from the prior year.”