Exeter Hospital Inc.

“Exeter health resources, inc., a charitable organization acting through its board of trustees is the sole member of the organization.”

“Exeter health resources, inc. Elects 11 of the 13 members of the exeter hospital board of trustees.”

“The sole member, exeter health resources, inc., has the right to approve decisions of the governing body.”

“The 990 is prepared by an outside tax accountant with information provided by the organization. The 990 is reviewed by the organization's treasurer then presented to the board of trustees before it is filed with the irs.”

“The board of trustees has adopted a conflict of interest policy that requires the disclosure of conflicts of interest either when the interest becomes a matter of possible action by the board or during an annual disclosure process. Trustees, officers, and key employees, as well as all members of senior management, are part of the annual disclosure process, which is initiated by the issuance of a memorandum and accompanying questionnaire by the president and chief executive officer (ceo). All disclosures are reviewed. Any trustee with a conflict of interest is required to abstain from voting and is not included in a quorum determination on the matter and any officer, key employee, or member of senior management with a conflict does not take part in making and is not present for any decision regarding the matter. The policy is monitored and enforced by both the president and ceo and the full board. There are two additional conflicts of interest policies. One is applicable to all employees and contracted staff and the other is applicable to members of the medical staff and allied health professionals. The former policy is monitored and enforced by the vice president of human resources and the vice president of corporate integrity and compliance and the latter is monitored and enforced by the president of the medical staff, president and ceo, general counsel, and compliance officer. On an annual basis, staff within human resources survey all employees and contracted staff serving in a managerial role, as well as members of any committees that make recommendations or decisions regarding the purchase of goods or services by any of the corporations as a means to ensure that any conflict of interest is disclosed and appropriately managed. Employees otherwise are required to supplement or make any further written disclosure at the time a conflict arises.”

“The organization's parent (exeter health resources) has a formal process for determining total compensation for the ceo and other listed officers that is intended to provide reasonable compensation for achieving the organization's mission, to recognize individual and team performance, and to comply with the organization's obligations as a tax-exempt charitable organization. The executive committee of the exeter health resources' board of trustees conducts an annual review of the compensation of the ceo, other listed officers and key emloyees. In doing so, the committee retains a qualified independent compensation consultant to conduct competitive market analysis of the market ranges of base, incentive, and total cash compensation, and to provide advice concerning the reasonableness of the compensation of the ceo, other listed officers and key employees. The committee utilizes that analysis and other appropriate information in connection with its annual review and makes recommendations to the full board of exeter health resources for adjustment of the ceo's compensation and the compensation for other listed officers. Information which the committee may consider can include but is not limited to the performance of an individual and/or that individual's contributions to a team, the performance of the organization in whole and in part, the elements of total compensation and salary history, the organization's compensation targets, and comparability data,including the data prepared by the independent consultant and reviewed with the committee. The committee incorporates a performance appraisal process in the ceo's, other listed officers' and key employees' compensation review. The ceo, other listed officers and key employees are not present when the committee discusses their respective compensation. In addition, the committee determines if the threshold requirements for incentive awards are met, consisting of the organization's performance results for quality, operating system excellence and financial performance. The results of the committee's deliberations are presented to the exeter health resources board and include recommendations concerning salary range adjustments and incentive awards and the basis for the committee's decisions / recommendations. The deliberations of the exeter health resources board are conducted in executive session with the independent members of the board but do include the ceo only for that period of time in which the exeter health resources board has questions concerning the performance of any listed officer or key employee other than the ceo. The exeter health resources board reviews the ceo's performance and determines if the adjustments and awards recommended by the committee for the ceo are in the organization's best interest and for the benefit of the organization and its parent organization. For the other listed officer positions, adjustments and incentive awards are approved upon recommendation of the ceo by the executive committee within the exeter health resources board approved parameters and ratified by the exeter health resources board of trustees. Adjustments and awards for other listed key employees are approved upon recommendation of the ceo by the executive committee within the exeter health resources board approved parameters and reviewed by the board. Form 990, part vi, section b, line 16b: although written policies were not in place as of the end of the year covered by this tax return requiring the organization to evaluate its participation in joint venture arrangements under applicable federal law to ensure that the organization's exempt status is protected, the organization performed due diligence with respect to its joint venture arrangements to safeguard the organization's exempt status. The organization is considering adopting formal written policies by the end of the next fiscal year.”

“These documents are available upon request.”

“Physician fees: program service expenses 7,426,448. Management and general expenses 0. Fundraising expenses 0. Total expenses 7,426,448. Service contracts: program service expenses 5,604,895. Management and general expenses 837,513. Fundraising expenses 0. Total expenses 6,442,408. Contracted services: program service expenses 3,783,826. Management and general expenses 565,399. Fundraising expenses 0. Total expenses 4,349,225. Outside fees: program service expenses 2,460,363. Management and general expenses 367,641. Fundraising expenses 0. Total expenses 2,828,004. Interest rate swap: program service expenses 0. Management and general expenses 1,999,961. Fundraising expenses 0. Total expenses 1,999,961. Equipment rental: program service expenses 919,765. Management and general expenses 137,436. Fundraising expenses 0. Total expenses 1,057,201. Collection fees: program service expenses 549,627. Management and general expenses 0. Fundraising expenses 0. Total expenses 549,627. Laundry/linen: program service expenses 536,350. Management and general expenses 0. Fundraising expenses 0. Total expenses 536,350. Miscellaneous expense: program service expenses 440,508. Management and general expenses 65,823. Fundraising expenses 0. Total expenses 506,331. Maintenance: program service expenses 371,781. Management and general expenses 55,553. Fundraising expenses 0. Total expenses 427,334. Freight and transportation: program service expenses 331,988. Management and general expenses 0. Fundraising expenses 0. Total expenses 331,988. Dues/subscriptions: program service expenses 242,590. Management and general expenses 36,249. Fundraising expenses 0. Total expenses 278,839. Medical leadership/ fees: program service expenses 266,818. Management and general expenses 0. Fundraising expenses 0. Total expenses 266,818. Project/design costs: program service expenses 0. Management and general expenses 266,262. Fundraising expenses 0. Total expenses 266,262. Financing fees: program service expenses 0. Management and general expenses 242,642. Fundraising expenses 0. Total expenses 242,642. Consulting: program service expenses 203,099. Management and general expenses 0. Fundraising expenses 0. Total expenses 203,099. Refreshments: program service expenses 149,263. Management and general expenses 22,304. Fundraising expenses 0. Total expenses 171,567. Storage: program service expenses 138,998. Management and general expenses 0. Fundraising expenses 0. Total expenses 138,998. Fundraising: program service expenses 0. Management and general expenses 0. Fundraising expenses 18,076. Total expenses 18,076. Patient transport: program service expenses 13,950. Management and general expenses 0. Fundraising expenses 0. Total expenses 13,950. Medical device tax: program service expenses 0. Management and general expenses 211. Fundraising expenses 0. Total expenses 211.”

“The organization maintains a revocable self-insurance trust to fund the related actuarially determined liability for incurred but unpaid claims. The asset and corresponding liability are presented on lines 15 and 25 in the current year. In the prior year, the asset and corresponding liability were offset.”

“Transfers between related entities -13,502,854. Pension adjustment 710,467. Assets released -51,924.”