Benefis Health System Inc.

“CERTAIN OFFICERS AND DIRECTORS LISTED IN PART VII ALSO HOLD OFFICER AND/OR DIRECTOR POSITIONS IN RELATION TO THE ORGANIZATION'S AFFILIATES (AS IDENTIFIED IN SCHEDULE R) AND, IN THAT REGARD, MAY BE CONSIDERED TO HAVE BUSINESS RELATIONSHIPS WITH EACH OTHER. Such business relationships are undertaken in the ordinary course of business.”

“This form 990 was prepared by the finance department personnel of benefis health system, inc. In collaboration with its accounting firm. Prior to filing, a copy of this form 990 including schedule b was distributed to all members of the organization's board of directors and was presented to the bhs board by the accounting firm.”

“Board members annually complete a form to disclose interests that could give rise to conflicts. In addition, at the start of each board meeting, members are asked to indicate whether they have a conflict of interest with respect to any items on the agenda for the meeting. Consistent with the organization's conflicts of interest policy, board members are prohibited from participating in deliberations and voting on any matters as to which they have a conflict.”

“The compensation of the ceo, cfo, chief medical officer who is also president of benefis medical group, inc. And president of acute care division (who is also the president of benefis hospitals, inc.)was set by the organization's independent compensation committee, which is charged with administering the system's executive compensation philosophy, policies and programs in the manner set forth in the committee's written charter. The committee's responsibilities include (i) determining appropriate compensation for all executives and other key employees, (ii) evaluating and adopting executive compensation plans, policies and programs, (iii) reviewing and approving executive benefit plans, and (iv) verifying that compensation is appropriately and fully disclosed and reported. The committee has engaged an independent compensation consulting firm to assist in ensuring that amounts paid to the system's executives are consistent with reasonable, fair market levels. The process followed by the committee, including the data relied upon and the committee's decisions, was thoroughly and timely documented. The compensation of the organization's key employees and managers was set by their respective supervisory executives in consultation with the human resources department and executive leadership. The process involved review by independent persons who confirmed total compensation amounts to be paid were reasonable and comparable to amounts paid by similarly situated organizations. The process and data relied on were thoroughly and timely documented. This includes a total compensation assessment, professional opinion on reasonableness of compensation and reasonableness of benefits.”

“Benefis health system, inc. Provides copies of governing documents, conflict of interest policies, financial statements and form 990 to the public upon request during normal business hours.”

“The book/tax difference in subsidiary and joint venture income is: -74,671.”