Community Clinical Services Inc.

“St. Mary's Health System is the sole corporate member of the organization.”

“As the sole corporate member of the Organization, St. Mary's Health System retains the ability to appoint 37% of the total number of Directors, and to remove those same Directors with or without cause.”

“As the sole corporate member of the Organization, St. Mary's Health System has the following powers and rights over the Organization as outlined in the Organization's bylaws: 1. To assure that all actions of the Corporation are consistent with its purpose and the philosophy and ethical and religious principles of the Roman Catholic Church. 2. However, the Corporate Member may not infringe on any aspect of provision of services or programs necessary to remain compliant with federal and/or state laws, regulations, or related policies. 3. All plans of merger, consolidation, reorganization, dissolution, or the sale, lease, assignment, or transfer of substantially all of the assets of the Corporation must be approved by at least 3/4 of the total Board members, including a minimum of two Directors appointed by the Corporate Member.”

“The Form 990 is provided to the governing body for their review and approval prior to filing.”

“This process is the responsibility of the Compliance Officer. A conflict of interest disclosure form is submitted to all leadership, board members, board committee members, employed physicians, medical directors and certain employees in key positions annually to be completed. Reminders are sent to all persons of interest to ensure that all conflict of interest disclosure forms are completed and collected.”

“Any compensation paid to the trustees, directors, officers or key employees of the Organization is subject to the oversight and decisions of Covenant Health, a related tax-exempt organization. Every two-to-three years the Compensation Committee of the Covenant Health Board of Directors engages an external consultant to provide competitive market data from various survey sources, which is then used to develop recommendations for changes to the compensation program. Since 2003, the Compensation Committee has engaged a human resources consultant to conduct this analysis. Objectives of the analysis are to assess the compositeness of the total cash compensation levels of the senior leadership team, develop market based competitive salary ranges for all executive positions, and ensure that the annual incentive opportunities, if there are any, are competitive and reasonable.”

“The Organization's Form 990, governing documents, conflict of interest policy, and financial statements are made available to the public upon request. The Organization's Form 990 is also made available on the website of its parent organization, Covenant Health, at the following web address: https://www.covenanthealth.net/financial-information/financial-information”

“Purchased medical and physician services: Program service expenses 2,650,537. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,650,537. Administrative and other fees: Program service expenses 1,213,817. Management and general expenses 477,617. Fundraising expenses 0. Total expenses 1,691,434.”

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