Monadnock Community Hospital

“The maximum number of Trustees allowable per the organization's bylaws was increased from fifteen to sixteen. The article allowing the Board of Trustees to delegate the approval of Medical Staff Clinical Department Chairs to the Medical Staff Executive Committee was removed from the bylaws.”

“The Hospital's Form 990 is prepared with assistance by an independent public accounting firm. A draft of the Form 990 is initially reviewed in detail by key finance employees. Thereafter, the final draft is made available to the full board prior to filing with the IRS.”

“On an annual basis, the Organization provides all administrators/directors/ managers, Board Members, and medical staff members with the conflict of interest policy. Said individuals are required to complete a new conflict of interest disclosure on an annual basis. Any conflicts of interest noted are reviewed by the Chair of the Board in conjunction with the Corporate Compliance Officer. If the conflict of interest appears to meet the policy definitions requiring full Board review, the President of the Board takes this to the full Board meeting, it is discussed, and appropriate action is taken (in compliance with state and federal requirements). The conflict of interest statement requires signatories to inform the Hospital of any conflict of interest that occurs at any time throughout the year. If a conflict of interest arises during the year, it is reviewed by the Compliance Officer, and if necessary, is taken to the Board President/Board. The Compliance Officer confers with legal counsel with regard to conflicts of interest, if there is any question regarding the potential conflict.”

“The Organization has a written executive compensation policy and procedure. Under this policy, the Compensation Committee, comprised of delegated representatives of the Board of Trustees, has the power and responsibility to determine the Hospital's approach to executive compensation and review of the performance of the CEO. The Compensation Committee has the responsibility to set, monitor and review the base salary of the CEO. The Committee maintains minutes of sessions and final recommendations and determinations in accordance with the Board of Trustee guidelines. Annually, market data is reviewed by the Committee to determine the appropriate salary for the Hospital's CEO based upon identified standards. At the end of the time period, the Committee reviews to what extent stated goals were met and recommends an amount for the variable pay award to be approved by the full board.”

“Monadnock Community Hospital files audited financial statements annually with the New Hampshire Attorney General's Charitable Trust Unit and informs the Director of Charitable Trusts of pecuniary benefit transactions that have occurred between MCH and a board member or officer. Notices of such transactions of $5,000 or more are also published in the local newspaper in accordance with NH RSA 7:19-A, II(D). Current copies of the bylaws, conflict of interest Policy and Form 990 are on file with the Charitable Trust Unit. The Hospital also makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“The 2015 compensation reported for Dr. Kriebel, Dr. Frechette, Dr. Migotsky, and Dr. McNamara was paid by Monadnock Community Hospital for their services as physicians. No part of their compensation was remuneration for their services as an ex-officio voting members of MCH's Board of Trustees.”

“Change in fair value of interest rate swap agreements -41,119.”

“The Audit Committee oversees the audit process for Monadnock Hospital. The audit process for the financial statements did not change from the prior year. Independent accountants performed the audit for the fiscal years ended 9/30/15 and 9/30/16.”

“During the fiscal year covered by this return, Monadnock Community Hospital began engaging in negotiations to become affiliated with Huggins Hospital of Wolfeboro, New Hampshire and Catholic Medical Center of Manchester, New Hampshire. An Affiliation Agreement was fully executed on June 29, 2016. Huggins Hospital, Monadnock Community Hospital, and Catholic Medical Center each submitted the required notice to the Charitable Trust Unit in the Office of the New Hampshire Attorney General on July 7, 2016. Each hospital submitted a joint request for approval to the Attorney General's Consumer Protection and Antitrust Bureau on July 7, 2016. The Director of Charitable Trust Unit issued its report of approval on November 3, 2016. The New Hampshire antitrust bureau approved the affiliation on December 9, 2016 and was effective on December 30, 2016. As this affiliation was formally effectuated after September 30, 2016 it will be disclosed in greater detail in Monadnock Community Hospital's Form 990 for the fiscal year ended September 30, 2017. For more information, see Footnote 1 in the attached audited financial statements.”