Kadlec Foundation

“The new Sole Voting Member is Kadlec Regional Medical Center, a Washington nonprofit corporation.”

“The Sole Voting Member of the Foundation is Kadlec Regional Medical Center, a Washington nonprofit corporation.”

“The Sole Voting Member has the power to ratify the election or appointment of each member of the Board of Trustees and the election of officers. Additionally, the Member has the right to remove any trustee, with or without cause, and shall have the right to ratify removal of a trustee by the Board of Trustees.”

“The following powers are reserved exclusively to the Sole Voting Member: * Amend the Articles of Incorporation and Bylaws of the corporation and to approve any amendments recommended by the Board of Trustees. * Approve the merger, consolidation, or affiliation of the Foundation with another corporation, organization or program, or the dissolution of the Foundation. * Approve the compensation, forms of employment agreements and any amendments for all staff of the corporation. * Approve the annual operating and capital budgets and development and revision for investing funds. * Approve the entry into joint ventures or partnerships. * Approve the encumbrance, lease, sale or other transfer of assets of the corporation with a value of $100,000 or greater. * Approve the execution of any management agreement, or any other contract of the corporation not in the ordinary course of business. * Approve the initiation of litigation or settlement of material litigation in which the corporation is the plaintiff or defendant. * Approve the selection or removal of the corporation's independent auditor or legal counsel.”

“The Form 990 is prepared internally by experienced Providence Health & Services(PH&S) staff and reviewed by the internal PH&S Director of Taxes and external tax advisors. The Board of Directors reviewed the Form 990 prior to filing with the IRS.”

“The Board of Trustees are required to disclose any potential conflict on Interests on an annual basis. Board members are asked to declare any conflicts of Interest prior to the start of each meeting which will be documented in Board Minutes.”

“Forms 990, Forms 1023, Governing Documents, Conflict of Interest Policy, and Financial Statements are kept in the accounting office at Kadlec Regional Medical Center and are available to anyone upon request.”

“Rounding -2.”

“As a result of the Affiliation with Providence Health & Services, the financial information for Kadlec Foundation was included in the consolidated financial statements of the Providence Health System and under the supervision of the Audit & Compliance Committee. The Providence Health & Services Audit and Compliance Committee assists the Board of Directors with the oversight of the integrity of the System's consolidated financial statements and reporting, the audit process and the System's internal financial controls and policies; compliance with ethical, legal and regulatory standards and requirements; the independence, qualifications and performance of the System's internal and external auditors; the System's investment committee; and informs the Board of Directors of critical risk areas and recommended mitigation.”

“The employees working at Kadlec Foundation are compensated by Kadlec Regional Medical Center EIN# 91-0655392. Therefore, no W-2s are issued by the reporting organization.”

“We utilize volunteers in assisting us with our special events. Our special events include Kidz Dig Rigz, Golf Classic, Radiothon and Celebration of Philanthropy. KDR - 250 Volunteers - Monitor the areas to assure safety, direct attendees, sell tickets, set up, clean up Golf Classic - 25 Volunteers - Check golfers in, sell tickets, monitor raffle, direct attendees, set up, clean up Radiothon - 32 Volunteers - Answer phones, set up, clean up Celebration of Philanthropy - 5 Volunteers - Set up and clean up”

“AFFILIATION AGREEMENTS Effective March 1, 2014, Providence Health & Services (Health System) entered into an affiliation agreement with Sisters of Charity of Leavenworth Health System (SCL) to transfer sponsorship of Saint John's Health Center (Saint John's) to the Health System. Saint John's operates a nonprofit medical center, a cancer institute, and physician clinics to serve the Santa Monica, California community and surrounding area. Effective May 1, 2014, the Health System entered into an affiliation agreement with PacMed Clinics (PacMed). PacMed is a private, nonprofit, multi-specialty medical group with nine clinics in the Puget Sound area and more than 150 primary care and specialty providers at the date of affiliation. Pursuant to the affiliation agreement, Western HealthConnect became PacMed's sole corporate Member. No cash or other purchase consideration was transferred to effect the affiliation. Effective June 13, 2014, the Health System entered into an affiliation agreement with Kadlec Health System (Kadlec). Kadlec operates a nonprofit medical center, a neurological resource center, a supporting foundation, and physician clinics to serve the tri-cities area of Kennewick, Pasco, and Richland, Washington. Pursuant to the affiliation agreement, Western HealthConnect became the sole member of Kadlec. No cash or other purchase consideration was transferred to effect the affiliation.”