Pinnacle Health Foundation

“The sole member of the corporation is pinnacle health system, a nonprofit corporation (ein 25-1778658).”

“As sole member of the organization, pinnacle health system shall elect the board of directors.”

“The following powers are reserved to the sole member, pinnacle health system: to approve and authorize: annual operating and capital budgets strategic plans borrowings or extensions of credit equal to or greater than one million dollars voluntary dissolution, merger, or consolidation the sale, pledging, leasing or transfer of assets in excess of $500,000 the creation or acquisition or any subsidiary or affiliate addition or deletion of clinical centers of emphasis any contract with an unrelated party for mgt of substantially all activities investment policies unbudgeted capital expenditures to select the certified public accountants to establish an obligated group for financing purposes to adopt employee benefit plans”

“The authority and responsibility for review of the forms 990 for the pinnacle health system and its subsidiaries is delegated to the finance and audit committee of the pinnacle health system board. In order to accomplish this, all members of the finance and audit committee are provided with a reasonable opportunity to review and comment to executive leadership on the irs forms 990 of the pinnacle health system and its subsidiaries, including pinnacle health hospitals, pinnacle health medical services, pinnacle health foundation and community life team before the returns are filed with the internal revenue service. In addition, each member of each respective board of directors will be given access to view their individual form 990 via a shared, password-protected website.”

“In the performance of their duties to pinnacle health system and subsidiaries (collectively referred to as "phs"), covered persons shall seek to act in the best interests of phs, and shall exercise good faith, loyalty, diligence and honesty. A covered person is any individual who serves in a fiduciary capacity to, or who has legal authority to represent or obligate, the pinnacle health system or any of its affiliated organizations including, but not limited to, directors, officers, employees, and agents. Covered persons also include a) immediate families (spouses, children, siblings, parents, or spouse's parents), b) any organization in which they or their immediate families directly or indirectly i) have a material financial or beneficial interest, or ii) serve as a director, officer, employee, agent, attorney or similar capacity. A covered person shall disclose any business or personal interests or relationships which may be in conflict with the interest of phs, including, but not limited to (a) engaging in or seeking to be engaged in (i) the delivery of health care services or (ii) the delivery of goods or services to phs, or (b) any transaction or arrangement with phs which would result in benefit to covered persons. The governance committee of the phs board reviews all conflict of interest statements annually and determines whether each director on the board is independent. Covered persons who are directors must comply with the pinnacle health system guidelines for determining director independence and applying director independence requirements. Covered persons with a conflict of interest shall not vote on the matter, and the phs board or committee must approve, authorize, or ratify the transaction or arrangement by a majority vote of the non-interested directors or committee members present at a meeting that has a quorum. Violations of this statement of policy may subject covered persons to appropriate sanctions, including removal from their positions with phs.”

“The compensation committee of the pinnacle health system ("phs") board of directors has the authority to develop and maintain executive and physician compensation to be approved by the pinnacle health system board. The compensation committee will follow a diligent process that meets regulatory requirements for a rebuttable presumption of reasonableness and promotes effective governance of executive compensation, consistent with the phs compensation philosophy. 1. Follow a process that establishes and maintains a rebuttable presumption of reasonableness for all executives and physicians potentially subject to intermediate sanctions. 2. Prepare minutes for each meeting to record the terms of the committee's decisions and the process followed in reaching those decisions. These minutes must include indications that the committee is following good practices in dealing with conflicts of interest and in obtaining and relying on appropriate comparability data on total compensation. 3. Select and directly engage and supervise any consultant hired by phs to advise the committee on executive and physician compensation. 4. Periodically evaluate the appropriateness of this charter and the effectiveness of the process the committee uses in governing executive and physician compensation and report this evaluation to the board. 5. Provide the board with an annual report on the committee's actions. 6. Monitor changes in laws and regulations pertaining to executive compensation and benefits to see that phs complies with them. 7. Seek outside review of committee operations to ensure compliance with the irs rebuttable presumption of reasonableness. 8. Review actual executive compensation and benefits provided to confirm consistency with compensation and benefits approved by the committee.”

“The organization makes its governing documents and conflict of interest policy available for public inspection upon request. The organization includes a copy of its financial statements with the state registration filed with the pennsylvania department of state, bureau of charitable organizations. These documents are a matter of public record and can be viewed at the bureau office.”

“Pinnacle health system, the parent entity of a group of tax-exempt organizations, is the common reporting agent for the group and files all 1099 forms for pinnacle health foundation.”

“Other professional fees: program service expenses 250,000. Management and general expenses 0. Fundraising expenses 8,852. Total expenses 258,852.”

“Fund balance transfer - pinnacle health hospitals 248,538.”