Valley Health Systems Inc.

“Certain officers and directors of MassWest Services, Inc. are employed by a related tax-exempt organization which has common officers and/or directors. By virtue of this arrangement, certain individuals listed in Form 990, Part VII have a business relationship with one another.”

“A copy of Valley Health Systems, Inc.'s Form 990 was provided to each voting member of the governing body prior to its filing with the Internal Revenue Service. The Form 990 was prepared with the assistance of an independent public accounting firm and thoroughly reviewed by the Senior Vice President of Finance and CFO and key financial staff of the Hospital prior to distibuting it to the governing body for review.”

“The conflict of interest policy is monitored and enforced as part of the Valley Health Systems, Inc. System and is reviewed annually by the System's conflict of interest committee. Valley Health Systems, Inc. board members, officers, and key employees complete and sign a conflict of interest questionnaire annually. All signed questionnaires are then submitted to the committeed for review and monitoring.”

“The compensation committee of the Valley Health System, Inc. utilizes a market compensation survey to recommend to the Board the approval of its determination of the appropriate compensation of the Chief Executive Officer. During that process, the Committee also reviews the compensation levels of other senior management and key employees of the System. These individuals are not members of the compensation committee and do not participate in this process. The CEO, as a member of the Board of VHS, does not participate in the approval process of that officer's compensation.”

“The governing documents, conflict of interest policy, and financial statements of Valley Health Systems and Affiliates, which includes supplemental information of the filing entity, are available to the public upon request at the Organization's administrative office at 575 Beech Street, Holyoke, MA.”

“During the fiscal year, the Medical Center's CFO and Treasurer, Paul M. Silva, resigned his position within the affiliated hospital system. Michael J. Koziol became CFO in April of 2017. Accordingly, both Mr. Silva and Mr. Koziol are listed in Part VII. IRS instructions stipulate that compensation information is to be reported on Form 990, Part VII and Schedule J, Part II on a calendar year basis. As the Medical Center's current fiscal year (September 30, 2017) being covered by this Form 990 filing is for tax year 2016, no compensation information is being reported for Mr. Koziol as he did not begin his tenure with the organization until 2017. Salary and benefit information will be reported for Mr. Koziol on the Medical Center's next Form 990 which will be for fiscal year ending September 30, 2018 (tax year 2017).”

“Net Assets Transferred to Holyoke Medical Center -1,558,443. Net Assets Released from Restriction Used for Operations 87,206. Change in Beneficial Interest of Perpetual Trusts 118,709. Equity Contribution from Affiliates 2,400,000. Equity Contribution to Affiliates -2,550,000. Other Transfer to Affiliates -375,021.”

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