Masswest Services 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.”

“The sole member of the Organization is is Valley Health Systems, Inc.”

“The president and treasurer of MassWest Services, Inc. are appointed by the president of Valley Health Systems, Inc. pursuant to a management services agreement with the Organization. Appointment of the president of the Organization is submitted to its board of directors for approval. The clerk of the Organization is elected by its board of directors. Valley Health Systems, Inc. elects the remaining members of the governing body of the Organization. Valley Health Systems, Inc. also has the power to remove any member of the governing body, with or without cause, at any time by giving written notice to such governing body member.”

“Significant decisions of the governing body of MassWest Services, Inc. are subject to the approval of Valley Health Systems, Inc. as specified in the Organization's bylaws.”

“There are no committees with the authority to act on behalf of the governing body of the Organization.”

“A copy of MassWest 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 of MassWest Systems, Inc. (MWS) 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. MWS board members and officers complete and sign a conflict of interest questionnaire annually. All signed questionnaires are then submitted to MWS and to Valley Health Systems, Inc. (parent) 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).”

“Equity Transfer from Affiliate 2,415,000. Equity Transfer to Affiliate -2,400,000.”

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