Hunterdon Regional Community Health Inc.

“Hunterdon healthcare system, inc. ("hhs") is the sole member of this organization. Hhs has the right to elect the members of this organization's board of trustees and has certain reserved powers as defined in this organization's bylaws.”

“The organization is an affiliate within hunterdon healthcare system, inc. ("system"); a tax-exempt integrated healthcare delivery system. Hunterdon healthcare system, inc. Is the tax-exempt parent entity of the system. The organization's federal form 990 was provided to each voting member of the organization's governing body (its board of trustees) prior to the filing of the federal form 990 with the internal revenue service ("irs") and after presentation and review by hunterdon healthcare system, inc.'s audit committee. As part of the tax return preparation process the organization hired a professional certified public accounting ("cpa") firm with experience and expertise in both healthcare and not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the organization's finance personnel ("internal working group") to obtain the information needed in order to prepare a complete and accurate tax return. The cpa firm prepared a draft federal form 990 and furnished it to the organization's internal working group for their review. The organization's internal working group reviewed the draft federal form 990 and discussed questions and comments with the cpa firm. Revisions were made to the draft federal form 990 where necessary and a final draft was furnished by the cpa firm to the organization's internal working group for final review. After this review the form 990 was presented to the members of hunterdon healthcare system, inc.'s audit committee for review and thereafter provided to the board of trustees through a secure website for their review prior to filing with the irs.”

“A CONFLICT OF INTEREST DISCLOSURE STATEMENT IS OBTAINED ANNUALLY FROM ALL TRUSTEES, SENIOR STAFF, AND OTHER KEY EMPLOYEES WHO ARE CURRENTLY SERVING THE ORGANIZATION. IT IS THE ORGANIZATION'S POLICY THAT IN THE EVENT OF A CONFLICT THEY DO THE FOLLOWING: IF THERE IS A CONFLICT RELEVANT TO A MATTER REQUIRING ACTION BY tHE BOARD OF TRUSTEES, THE INTERESTED PERSON SHALL CALL IT TO THE ATTENTION OF THE BOARD OF TRUSTEES, AND THE TRUSTEE CONCERNED SHALL NOT VOTE ON THE MATTER. MOREOVER, THE PERSON HAVING A CONFLICT SHALL RETIRE FROM THE ROOM IN WHICH THE BOARD IS MEETING AND SHALL NOT PARTICIPATE IN THE DELIBERATION OR DECISION REGARDING THE MATTER UNDER CONSIDERATION. WHEN THERE IS DOUBT AS TO WHETHER A CONFLICT OF INTEREST EXISTS, THE MATTER SHALL BE RESOLVED BY VOTE OF THE BOARD OF TRUSTEES OR A COMMITTEE THEREOF, EXCLUDING FROM THE ROOM AND THE VOTE of THE PERSON WHOSE SITUATION WILL BE DISCUSSED. WHEN A CONFLICT OF INTEREST ARISES FOR ANY STAFF MEMBER EXCEPT THE PRESIDENT, THAT STAFF MEMBER SHALL REPORT IT TO THE PRESIDENT IN WRITING. A CONFLICT OF INTEREST RELATING TO THE PRESIDENT SHALL BE REPORTED IN WRITING TO THE CHAIRMAN OF THE BOARD.”

“The organization is an affiliate within hunterdon healthcare system, inc. ("system"); a tax-exempt integrated healthcare delivery system which includes hunterdon medical center ("hmc"). Hunterdon healthcare system, inc. Is the tax-exempt parent entity of the system. This filing organization itself has no paid senior management personnel receiving compensation directly from this organization. Rather, key senior management personnel are employed by hmc. Accordingly, hmc's board of trustees has an executive compensation committee ("committee"). The committee has adopted a written executive compensation philosophy which it follows when it reviews the compensation and benefits of hmc's senior management, including the president/chief executive officer and executive vice president/chief operating officer. The committee reviews the "total compensation" of the individuals which is intended to include both current and deferred compensation and all employee benefits, both qualified and non-qualified. The committee's review is done on at least an annual basis and ensures that the "total compensation" of senior management of the organization is reasonable. In 2017, the executive compensation committee reported to the full board for ratification. The actions taken by the committee enable the organization to receive the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of certain members of the senior management team, including the president/chief executive officer and executive vice president/chief operating officer. The three factors which must be satisfied in order to receive the rebuttable presumption of reasonableness are the following: 1. The compensation arrangement is approved in advance by an "authorized body" of the applicable tax-exempt organization which is composed entirely of individuals who do not have a "conflict of interest" with respect to the compensation arrangement; 2. The authorized body obtained and relied upon "appropriate data as to comparability" prior to making its determination; and 3. The authorized body "adequately documented the basis for its determination" concurrently with making that determination. The committee is comprised of members of the board of trustees each of who are independent and are free from any conflicts of interest. The committee relied upon appropriate comparable data; specifically the committee obtained a written compensation study from an independent firm which specializes in the reviewing of hospital and healthcare system executive compensation and benefits throughout the united states. This study used comparable geographic and demographic market data including but not limited to similarly sized healthcare systems and hospitals, # of licensed beds and net patient service revenue. In addition, the committee reviews and approves executive compensation adjustments based on market surveys developed by independent consultants, industry average comparison, years of service and other exempt organizations in the geographic area. After a review of the individual's performance for the year and relying on comparable information and other objective data, the executive committee will recommend an adjustment to the individual's compensation. Any determinations are documented contemporaneously in the executive committee minutes. The committee adequately documented its basis for its determination through the timely preparation of written minutes of the compensation committee meetings during which the executive compensation and benefits was reviewed and subsequently approved. The actions outlined above with respect to the committee and the establishment of the rebuttable presumption of reasonableness applies to certain senior management personnel, including, but not limited to, the president/chief executive officer and executive vice president/chief operating officer. The compensation and benefits of certain other individual”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the state of new jersey department of the treasury.”

“Core form, part vii and schedule j reflect certain board members and officers receiving compensation and benefits from a related organization. Please note this remuneration was for services rendered as full-time employees of a related organization and not for services rendered as a voting member or officer of this organization's board of trustees.”

“This organization is an affiliate within the hunterdon healthcare system, inc. ("system"); a tax-exempt integrated healthcare delivery system. The system includes both for-profit and not for-profit organizations. Certain board of trustee members, officers and key employees listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990 for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of trustees of other related organizations in the system, their respective hours per week per organization are approximately the same as reflected on core form, part vii of this form 990. The hours reflected on core form, part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers and key employees, reflect total hours worked per week on behalf of hunterdon healthcare system, inc. And all affiliates and not total hours worked per week on behalf of only this organization.”

“Other changes in fund balance include: - change in beneficial interest in temporarily restricted net assets of hunterdon healthcare foundation, inc.; a related internal revenue code section 501(c)(3) tax-exempt organization - ($79,102); and - equity contribution to hunterdon regional pharmacy, inc.; a related organization - ($706,220).”

“The organization is an affiliate within the hunterdon healthcare system, inc. ("system"); a tax-exempt integrated healthcare delivery system. Hunterdon healthcare system, inc. Is the tax-exempt parent entity of the system. An independent cpa firm audited the consolidated financial statements of hunterdon healthcare system, inc. And all entities within the system for the years ended december 31, 2017 and december 31, 2016; respectively. The audited consolidated financial statements contain consolidating schedules on an entity by entity basis. The independent cpa firm issued an unmodified opinion with respect to the audited consolidated financial statements.”

“The organization is an affiliate within hunterdon healthcare system, inc. ("system"); a tax-exempt integrated healthcare delivery system. The system engaged an independent accounting firm to prepare and issue a system wide consolidated audit under the single audit act and omb circular a-133 audit. This organization was included in the system wide a-133 audit.”