Clearfield Hospital

“Business relationship: kevin tyler, do, thomas carnevale, md, robert steward, jr, md, brian kline, mark norman and gary macioce share a business relationship through their employment with a related organization, penn highlands dubois.”

“Delegation of management duties: penn highland healthcare, penn highland clearfield's related tax-exempt parent organization, provides administrative services including management duties.”

“Members: penn highlands healthcare (phh) holds certain powers, including the approval of the election and removal of officers and directors and approval of any and all amendments to the bylaws or other organizational/governance documents. Penn highlands healthcare (phh) shall have the following powers with respect to the election and removal of directors of this corporation. Nomination and election of directors: prior to the end of phh's fiscal year, the phh board will meet to elect directors to fill open director positions, other than ex-officio positions. At least sixty (60) days in advance of this meeting, penn highlands clearfield shall provide to phh's governance/nominating committee (the phh governance/nominating committee) a list of one or more candidates (the number of candidates to be determined in the phh governance/nominating committee's discretion) whom it has approved for each expiring director position (other than ex officio positions). The list of candidates shall have been developed in consultation with the board of penn highlands clearfield. The phh governance/nominating committee shall review each candidate in accordance with the phh bylaws, the criteria, if any, set forth in this organization's bylaws or policies for which said candidate is being considered for board service, and the policies and rules of phh, including, without limitation, the conflict of interest policy (all of which shall be referred to collectively herein as the eligibility criteria) and develop a list of one or more candidates for each open position (the number of candidates to be determined in the phh governance/nominating committee's discretion). Once the slate of candidates for each open director position is nominated by the phh governance/nominating committee, the board of penn highlands clearfield shall submit such slate of candidates to the phh board for election. The phh board may elect by a vote of the majority or refuse to elect each candidate submitted by the board of penn highlands clearfield and may not elect any candidate not submitted by the board of penn highlands clearfield and nominated by the phh governance/nominating committee. In the event the phh board fails to elect a candidate nominated as described above, then (i) phh will notify this corporation; and (ii) the process described above shall continue until all open board positions of penn highlands clearfield have been filled. Unless otherwise specified at the time of election, new directors shall be installed at the first meeting of the board of directors of penn highlands clearfield following their election. Removal: with respect to any director of penn highlands clearfield, the board of phh has the power to remove such director at any time with or without cause. Vacancies: in the event that penn highlands clearfield desires to fill a vacancy occurring on its board, the phh governance/nominating committee and the board of phh, at the request of penn highlands clearfield, shall act to fill such vacancy. Bylaws: subject to the approval of phh as set forth in the bylaws, the articles and these bylaws may be altered, amended, or repealed and new articles or bylaws may be adopted by the affirmative vote of two-thirds (2/3) of the board. Written notice of the intent to amend the articles or these bylaws and a draft of the proposed change shall be sent to all directors, by the secretary, at least five (5) days prior to any meeting at which amendment of the articles or these bylaws is intended.”

“Form 990 review process: the form 990 is prepared by an independent accounting firm based on the audited financial statements and information provided by the accounting department and management of the organization. The draft form 990 is reviewed by the cfo and the accounting manager. After all suggested changes from the cfo and the accounting manager are made, the updated draft form 990 is provided for review to the full board.”

“Monitoring compliance with the conflict of interest policy: penn highlands healthcare, inc. (phh), maintains a conflict of interest policy which applies to all subsidiaries. The conflict of interest policy applies to board members, officers, executive employees, and any other manager or supervisor exercising substantial influence over operations. Each covered person will promptly and fully disclose all material facts of every actual or potential dual interest existing at the time when he/she becomes a covered person, and annually through each phh system entity's disclosure statement, which requests disclosure of relationships, investments, and transactions that may lead to an actual conflict of interest. All completed disclosure statements will be provided to the phh governance/nominating committee. This committee, in consultation with the chairperson or vice chairperson of each phh system entity's board, shall evaluate the completed disclosure statements and determine if there are any conflicts that are so pervasive as to render any covered person ineligible for service. The chairperson of each phh system entity's board will disclose to the full board of said phh system entity all dual interests reported to him or her under the policy and will also make the disclosure statements of all covered persons available to directors at any time during the year. If a potential dual interest arises as a result of a contemplated phh system entity board (or committee) action, the chairperson of said phh system entity's board or the interested person shall, or any other director may, raise the question of the interested person's dual interest. The disinterested members of the phh system entity's board (or committee) will evaluate the disclosures and the material facts relating to the transaction, arrangement, or policy giving rise to the dual interest to determine whether they involve actual conflicts of interest and may attempt to develop alternatives to remove the conflict from the transaction, arrangement, or policy. A covered person who has a dual interest shall not be present for or shall leave any portion of a meeting at which a phh system entity's board (or committee) is voting to determine whether a conflict exists, but may be present prior to the vote to make a presentation to said board (or committee), to disclose additional facts, or to respond to questions. If a phh system entity's board (or committee determines that an actual conflict of interest exists, the interested person shall be so advised and the chairperson of a phh system entity's board or committee shall, if appropriate, appoint a disinterested person or committee or direct management to investigate alternatives to the proposed transaction or arrangement, if this has not already been done. Any interested person who has an actual conflict of interest with respect to the transaction or arrangement does not participate in and is not present for the vote regarding any such transaction or arrangement. If an individual whose company or employer has a business relationship with a phh system entity, but the individual does not have an actual conflict of interest with respect to this business relationship, the individual may nonetheless voluntarily recuse him/herself from voting on any matters related to the relationship.”

“Compensation determination: penn highlands healthcare, inc. (phh) performs the compensation review for the phh executives, including the ceo of ph clearfield. An independent compensation consultant, yaffe and company, is contracted to complete an annual compensation review. Included in this review is comparative data. The phh board reviews and approves the compensation.”

“Governing document availability: the governing documents, conflict of interest policy, and financial statements are available upon request.”

“Board member compensation: no directors receive any compensation for their director duties. Gary macioce was compensated for his duties as president of penn highlands clearfield. Mark norman is compensated for his duties as coo of phh while serving as interim president of penn highlands clearfield. Kevin tyler, do, thomas carnevale, md, and robert steward, jr, md, are compensated by a related organization for their duties as physicians.”

“Other changes in net assets: $ 41,437 change in beneficial interest in perpetual trust”

“Description:outside services total fees:2662929”

“Description:maintenance contracts total fees:2464410”

“Description:consulting services total fees:158474”

“Description:professional fees total fees:1969367”

“Description:contract labor total fees:1533130”