Millcreek Health System

“Dr. John m. Ferretti, d.o., dr. Sylvia m. Ferretti, d.o., and dr. Anthony j. Ferretti, d.o. - family relationship”

“Prior to filing its form 990, the organization provided its board members with access to an electronic copy of the tax return and invited comments and questions from the board members. Prior to filing form 990, members of the organization's financial management conducted a detailed review of the tax filing. Throughout the review process, there was ongoing discussion between the organization's financial management and the tax preparer.”

“Each member of the board of trustees is required to complete a standardized conflict of interest form on an annual basis. Any potential conflicts of interest are addressed by an appointed committee whose members are independent with regard to the matter being examined. If a potential conflict of interest arises, it is reviewed and documented by the the appointed committee, and then the appointed committee reports the results of its review to the board of trustees.”

“The organization's top management official and certain members of its board of trustees are compensated employees of related organizations. The salaries of these individuals are determined by the employing organization's finance/budget committee, which also acts as the employing organization's compensation committee.”

“The organization does not make its governing documents, by-laws, and financial statments available to the general public.”

“Supplemental disclosure regarding business transactions based on the schedule l, part iv instructions, reporting of business transactions with interested persons applies to transactions conducted with the filing organization. Millcreek health systems did not directly transact business with any person listed on form 990, part vii, section a, nor with any listed person's employer or owned business. Yet, certain persons listed on form 990, part vii, section a are employed or have an ownership interest in organizations with whom organizations related to millcreek health system transact business. As a result, millcreek health system voluntarily discloses the following business transactions: michael j. Visnosky, esquire: lake erie college of osteopathic medicine (lecom) and millcreek community hospital (the hospital) engaged attorney visnosky's employer, knox mclaughlin gornall & sennett, p.c. To perform various legal services during the fiscal year ended june 30, 2014. Lecom paid legal fees totaling $59,088 and the hospital paid legal fees totaling $109,086 for those services. Attorney visnosky's son-in-law, mark a. Denlinger, is also a shareholder of knox mclaughlin gornall & sennett, p.c. Neither attorney visnosky or attorney denlinger, individually, hold an ownership interest of greater than 5% in the law firm. Collectively, their ownership interests exceed 5%. Mr. Gerald p. Alonge: mr. Alonge is the executive director of vantage healthcare network. The following related organizations paid vantage for medical supplies and services during the fiscal year ended june 30, 2014: millcreek community hospital - $508,190 lake erie college of osteopathic medicine (lecom) - $176,433 medical associates of erie - $31,478 millcreek manor - $50,008 in addition, lecom received rental income from vantage totaling $89,675. Lecom currently owns approximately 12.15% of vantage. The investment was paid in installments. During the fiscal year ended 6/30/14, the final installment of $184,850 was made. One member of the millcreek health system board, mary l. Eckert, also serves on the vantage board of directors. Dr. John m. Ferretti, d.o.: millcreek community hospital engaged osteopathic internal medicine associates (oima) to perform specified medical services during the fiscal year ended june 30, 2014. The hospital paid oima $48,000 for those services. Oima is a professional corporation in which dr. J. Ferretti holds a 100% ownership interest. Dr. Anthony ferretti, d.o.: dr. A. Ferretti's son, attorney richard ferretti, is employed by lake erie college of osteopathic medicine. Attorney ferretti received compensation of $201,294 as a result of services he provided. Paul r. Hakel: mr. Hakel is employed as an investment advisor for ubs. The following related organizations paid ubs investment management fees during the fiscal year ended june 30, 2014: lake erie college of osteopathic medicine - $146,922 millcreek community hospital - $74,763”

“The transfers of cash to and from related organizations are detailed in schedule r, part v, line 2. The net of such transfers is zero.”