Ferrell Hospital Community Foundation

“Gene morris and dr. Nate oldham have a family relationship.”

“Effective january 1, 2016, the hospital entered into a five-year management services agreement. Management services provided to the hospital consist of management personnel including a ceo and cfo, facility planning, strategic planning, recruiting, and several other support and oversight services. The initial term of the agreement is for a five-year period, which can be extended beyond the initial five-year period, if so desired. The agreement can be terminated by either party with a one hundred and eighty day notice without recourse subsequent to the initial five-year term. If the agreement is terminated by the hospital within the initial five year term of the agreement, the hospital will be assessed a penalty in the amount of $500,000 to be payable to the management service organization. The hospital will reimburse the management service provider the actual cost of providing the management services on a monthly basis for the years ended march 31, 2019 and 2018, management fees incurred were $120,000 per year during the 2018 year, the following individuals were compensated by the management service provider in the following amounts: alisa coleman, chief executive officer, $290,569 and joseph hohenberger, chief financial officer $155,679.”

“The ceo and cfo review the completed form 990 as prepared by the paid provider for completeness and accuracy. The board chair and the ceo and cfo submit the form to the board for final approval immediately prior to filing.”

“Copies of the conflict of interest policy are provided to each director, officer, and management person at least once per year, with requirement that they complete a certificate. The certificate confirms that they understand this policy, agree to comply, indicate any known conflicts, and have no knowledge of any additional violations of the policy. Any person with a conflict is required to complete a specific disclosure notice.”

“The ceo's salary was determined by comparison with prior persons employed in the position, industry comparisons, relative experience and knowledge. The ceo's salary was approved by the board of directors. All deliberations are included in board minutes. This process was last completed in 2016. The cfo's salary was determined and approved in the same manner as the ceo's salary. All other executive salaries are approved by executive management and analyzed based on industry comparative data and position descriptions, commensurate experience, expertise and training. This process was last completed in 2016.”

“Ferrell hospital's governing documents, conflict of interest policy, financial statements, and federal form 990 tax returns are available to the public by request.”

“Physician fees: program service expenses 1,257,415. Management and general expenses 96,030. Fundraising expenses 0. Total expenses 1,353,445. Purchased services: program service expenses 3,830,298. Management and general expenses 292,523. Fundraising expenses 0. Total expenses 4,122,821.”

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

“Audited financial statements are in process but have not been issued for the period ended march 31, 2019. We have attached the prior year audited financial statements to this tax return.”