Vail Health Services

“PROCESS TO REVIEW THE FORM 990 Review of the Form 990 is delegated to more qualified personnel since the Board members are not trained in tax matters. The CFO, Controller and accounting staff of Vail Clinic, Inc. dba Vail Valley Medical Center, providing services to Vail Health Services, reviews the tax form and works with an external CPA firm in the production of the Form 990. An electronic version is provided to directors and officers for review, discussion, and comment.”

“Process for Monitoring Compliance with Conflict of Interest Policy All Board Members and Officers are covered under the policy and are required to disclose any conflicts. The accounting group that issues checks and prepares the financial statements will advise the Board of any apparent, or clear conflict of interests. The Board authorizes, approves, or ratifies any conflict in regards to voting rights based on good faith and fairness to the organization. An interested person may make a presentation at the meeting considering the matter giving rise to the conflict, however, they must leave the meeting during the discussion of and the vote on the matter. A committee might be appointed to investigate alternatives to the proposed arrangement.”

“PUBLIC DISCLOSURE OF DOCUMENTS The Governing documents, conflict of interest policy, and financial statements are available for viewing by the public upon request for valid business purposes.”

“EXECUTIVE COMPENSATION Executive compensation is paid and determined by a related party, Vail Clinic, Inc. DBA Vail Valley Medical Center. Beginning in 2011, a formal external review is conducted every year. Executive compensation was last formally reviewed in 2015 by Sullivan Cotter. This review evaluates total compensation of the executive against compensation data for the same or similar job by industry, revenue size and geographic location and other factors to ensure that the compensation paid is appropriate and reasonable. That information is then reviewed by the compensation committee and the Board of Directors. Internal reviews are performed as well at time of hire and on an ongoing basis using compensation surveys.”

“OTHER OFFICER COMPENSATION Other Officer compensation is paid and determined by a related party, Vail Clinic, Inc. DBA Vail Valley Medical Center. Beginning in 2011, a formal external review is conducted every year. Compensation for the CFO was last formally reviewed in 2015 by Sullivan Cotter. This review evaluates total compensation of the individual in a specific role against compensation data for the same or similar job by industry, revenue size and geographic location and other factors to ensure that the compensation paid is appropriate and reasonable. That information is then reviewed by the CEO. Internal reviews are performed as well at time of hire and on an ongoing basis using compensation surveys.”

“OTHER CHANGES IN NET ASSETS 7,772,433 Transfer of interest in Vail Health Services Foundation from Vail Clinic Inc. 9,392,138 Change in value of investment in Foundation ----------- 17,164,571”