Frisbie Memorial Hospital

“Trustees Ronald Poulin and Jeanette Poulin have a family relationship.”

“During the fiscal year, Frisbie Memorial Hospital and Frisbie Foundation, of which the Hospital is the sole member, had an interim CFO, James Hutchinson. Mr. Hutchinson was compensated through a consulting firm, Warbird Consulting Partners. However, this arrangement did not begin until March of 2019. Therefore, Mr. Hutchinson did not receive any compensation from the Hospital during the 2018 calendar year. The amount paid to Warbird Consulting Partners for Mr. Hutchinson's services for the period covering March, 2019, through September, 2019 (the end of each Organizations' tax year) was $274,064. Warbird was paid an additional $47,598 by Frisbie Memorial Hospital during this period to cover travel expenses and other discretionary fees incurred by Mr. Hutchinson while providing his services. In accordance with IRS instructions, as Mr. Hutchinson did not receive any compensation during the 2018 calendar year, the compensation he received for providing his services to Frisbie Memorial Hospital and the Foundation during the fiscal year filing period has been omitted from both Part VII and Schedule J of each Organizations' 2018 Form 990. The entirety of the compensation that Mr. Hutchinson received for his services, for the period covering March, 2019, through December, 2019, will be disclosed on each Organizations' 2019 Form 990, Part VII and Schedule J, for the Organizations' tax years ending September 30, 2020.”

“The Form 990 is prepared with the assistance of the Hospital's independent public accounting firm and is thoroughly reviewed by key financial staff. The 990 will be reviewed by the governing body after it has been filed with the IRS.”

“In accordance with the written conflict of interest policy, the office of the President annually secures a signed copy of the Trustee/Officer Conflict of Interest Statement and maintains them on file.”

“Each year, the executive compensation committee comprised of four members of the FMH Board reviews the Hospital CEO performance and compensation. The VP of Human Resources presents the compensation committee with comparative salary and benefit data. Senior management compensation is also reviewed by the committee, but their compensation is determined by the CEO.”

“The Hospital will provide its governing documents, financial statements, and conflict of interest policy upon request.”

“The Hospital does not have a formal joint venture policy in written format. However, any joint venture agreement the Hospital may consider is thoroughly vetted by the board or subcommittee to ensure that the joint venture significantly improves and furthers the Hospital's exempt charitable mission. On-going monitoring is also conducted to safeguard the Hospital's invested assets from private benefit or other misappropriation.”

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

“In January 2019, the Organization and HCA Healthcare, Inc. signed a non-binding letter of intent (LOI) to affiliate the organizations. This non-binding LOI was the first step in a lengthy process that included due diligence, negotiation of a definitive agreement, review and approval of each member's Board of Directors, and federal and state regulatory approval processes. Expected benefits of the affiliation include expanding the Organization's primary and specialty services in New Hampshire, expanding access to health care in rural communities, and increasing competition by delivering higher-quality, lower cost care. In March of 2020, the purchase of Frisbie Memorial Hospital was completed. At the time of this return's filing, the Hospital is in the process of winding down and completing the financial aspects of the sale in terms of transfer to HCA. It expects that this process will be complete prior to the end of its next fiscal year ending September 30, 2020. The Hospital's tax return for the fiscal year ending September 30, 2020 will likely be a final return.”