Chenango Memorial Hospital Inc.

“United health services, inc. Is the sole member of chenango memorial hospital, inc.”

“The sole member, united health services, inc, shall elect trustees at the annual meeting of the organization.”

“Uhs inc, (the member as defined by the cmh bi-laws) must provide prior written approval for various actions by the cmh board of directors.”

“The 990 preparation and filing is the responsibility of the hospitals board of directors who delegates the timely and accurate completion of the 990 to management. The finance division prepared the 990 forms which were reviewed by the organization's public accountants, controller, assistant vp of finance, corporate cfo and independent auditors prior to filing. A summary of key elements of the 990 is shared with the board of directors for informational purposes.”

“Directors, officers and key employees submit conflict of interest statements annually which are reviewed by the ceo, board chairman and the organization's audit committee.”

“It is the philosophy of the hospital that all staff including executive staff be compensated fairly for their work. Base salary levels, incentive/bonus programs and benefit plans shall take into account the local, regional and national markets to allow uhs hospitals to recruit, motivate, reward, recognize and retain highly talented executives with the skill sets required to fulfill its mission. The executive compensation program must focus executives' attention on uhs's strategic initiatives and mission critical performance objectives that will lead to the organization's and system's success. To carry out this compensation philosophy, the uhs hospitals (which includes chenango memorial hospital) board of directors' executive compensation committee reviews annually a comprehensive report prepared by an external executive compensation consulting firm, sullivan cotter associates to determine the appropriateness of the base and total compensation levels for the senior management staff. This annual report focuses on two key areas; 1) the competitiveness of the senior management staff's base and total compensation (including benefits) vs. National benchmark data for comparably sized health care systems and hospitals (based upon 'total revenue' metrics), and 2) a 'reasonableness assessment' consistent with u.s. Treasury department regulations governing executive compensation for not-for-profit organizations. The data from this report assists the executive compensation committee in determining the appropriateness of the senior managements' current base and total compensation levels and the need for any adjustments for that calendar year.”

“The organization provides form 1023, form 990 and other information required under internal revenue service regulations to the public, upon request.”

“Physician service fees: program service expenses 10,976,013. Management and general expenses 2,604,954. Fundraising expenses 0. Total expenses 13,580,967.”

“Cumulative effect of auxiliary income and expense -18,755. Change in interest in chenango memorial hospital foundation -179,432. Pension changes other than net periodic benefit costs 600,829. Change in value of funds held in trust by others -839,095. Rental income included in contributions 6,857.”

“Neither the process for the oversight of the audit nor the process for the selection of the independent accountant has changed during the year. The board of diretors assumes responsibility for oversight of the audit and selection of independent accountants.”