The Reading Hospital Medical Group

“Business consolidated with reading health physician network (rhpn) tax id 23-2266054 to provide patient care services”

“The sole member of the corporation is reading health system, a pennsylvania nonprofit corporation located at 420 south 5th avenue, west reading, berks county, pennsylvania, and which is recognized as exempt from federal income taxation as an organization described in section 501(c)(3)of the code.”

“The board of directors is elected by the sole member (reading health system)at the annual meeting of the sole member from a slate of candidates presented by the nominating committee and approved by the board.”

“The governance of the corporation shall be vested in the board of directors. In addition to the powers and authority expressly granted in the by-laws, the board may exercise all powers of the corporation and do all lawful acts and things that are not prohibited by applicable law, by the articles of incorporation or by the by-laws. The hospital directors' votes shall carry a weight of fifty percent of the votes of the total board, regardless of the number of directors selected by the hospital.”

“The reading hospital medical group return is prepared by hospital staff and reviewed by our outside tax advisors. The reading hospital medical group's return is then posted for review by the reading health system board, which is the parent corporation, prior to filing the return.”

“Article ix of the by-laws addresses conflicts of interest. Section 1. Duty to disclose. Directors and officers shall have an affirmative duty to disclose in a timely fashion to the board the material facts relative to any relationship or interest, financial or otherwise, which they, or any other corporation, partnership, association or other organization in which they have interest, may have in any contract or transaction to which this corporation is or is about to become party. Section 2. By-laws; certification. Directors and officers shall acknowledge receipt of a copy of the by-laws of this corporation and by serving as a director certify that they have no conflict of interest which requires disclosure to the board under article ix which has not been disclosed.”

“Compensation is determined by the compensation committee which shall not include as voting members of the committee any individuals who receive compensation, directly or indirectly, whether as an employee or independent contractor, from the corporation or who otherwise has a conflict of interest with respct to any compensation policy considered by the compensation committee. The compensation committee shall review and recommend physician compensation policies for physicians to the board. The compensation committee shall seek and consider input from physician employees, consider the financial performance of the corporation, the effectiveness of the current compensation system, anticipated changes inpayer payments, staffing needs and compensation offered physicians in comparable positions in similar employment markets consistant with relevant recognized physician compensation surveys and other information useful in setting compensation and benefits formula for similar positions.”

“Compensation is determined by the compensation committee which shall not include as voting members of the committee any individuals who receive compensation, directly or indirectly, whether as an employee or independent contractor, from the corporation or who otherwise has a conflict of interest with respct to any compensation policy considered by the compensation committee. The compensation committee shall review and recommend physician compensation policies for physicians to the board. The compensation committee shall seek and consider input from physician employees, consider the financial performance of the corporation, the effectiveness of the current compensation system, anticipated changes inpayer payments, staffing needs and compensation offered physicians in comparable positions in similar employment markets consistant with relevant recognized physician compensation surveys and other information useful in setting compensation and benefits formula for similar positions.”

“The organization does not make its governing documents, conflict of interest policy and financial statements available to the public.”

“Other physician services that support reading hospital”

“Transfer of assets to rhpn -4,086,997 total -4,086,997 part xi line 9 - assets transferred to reading health physician network (rphn), another 501(c)(3) organization under reading health system.”