Mercy Clinic Oklahoma Communitiesinc

“Mercy health oklahoma communities is the sole member of the organization.”

“Mercy health oklahoma communities (the member) may appoint or remove members of the board of directors at any time at the member's discretion.”

“Mercy health oklahoma communities may: - adopt or amend the mission and philosophy of the corporation and any organization controlled by the corporation; - adopt or amend the strategic plans, goals, and objectives of the corporation and any organization controlled by the corporation; - adopt or amend the operating and capital budgets of the corporation and any organization controlled by the corporation and any changes in such budgets in excess of an amount established from time to time by the member; - review and approve any capital expenditures or recommendations not previously approved as part of the corporation's budgets; - authorize or approve the assignment, transfer, sale or lease of any of the assets of the corporation or any organization controlled by the corporation or interest therein in excess of an amount established from time to time by the member; - authorize or approve the grant of any pledge, lien, encumbrance, mortgage, deed of trust or other security interest in any or all of the assets of the corporation and any organization controlled by the corporation; - authorize or approve the incurrence of debt (other than debt incurred for the acquisition of goods that are acquired in the ordinary course of business) by the corporation or any organization controlled by the corporation and the grant any security interests, the placement of any encumbrances, the entering into any covenants, and the execution of any documents and the taking of any actions necessary or appropriate in connection with the incurrence of such debt; - merge, dissolve or abandon the corporation or any organization controlled by the corporation; - amend the certificate of incorporation and bylaws of the corporation and any organization controlled by the corporation; - establish all compensation and benefit terms for physicians and other medical professionals employed or otherwise retained by the corporation; - approve the creation, ownership or acquisition of, or affiliation with, any other organization controlled by the corporation; - approve contracts in which the corporation assumes financial risk, including but not limited to managed care contracts, subject to consultation with the managed care contracting committee of the member; - approve the clinic's manpower plan; - through the sole action of the president of the member (with the approval of the president of mercy, appoint and remove the president of the corporation; and - authorize and amend the charity care policy of the clinic.”

“The form 990 is prepared by an independent accounting firm, using information provided by the filing organization. A draft form 990 is reviewed by the filing organization's finance team. The draft form 990 is also reviewed by mercy health's tax department, to ensure accuracy and consistency with other related organizations' form 990s. After questions arising from the various reviews are addressed and incorporated into the form 990, a revised draft is provided to the filing organization's leadership team, including the cfo and ceo, for review. Once reviewed and approved by the filing organization's leadership team, the form 990 is then signed and filed with the irs.”

“Officers, directors, key employees and other disqualified persons are required to complete a conflict of interest questionnaire annually and did so in the normal course for the year ended june 30, 2020. This process is administered at the mercy health level by mercy's corporate compliance department. The questionnaires are reviewed with leadership at the local level and potential conflicts discussed and resolved. The conflicts and their respective resolutions are shared at the mercy level with a team including mercy's chief financial officer, chief compliance officer and other members of finance, legal and hr. Summary results are reviewed with mercy's stewardship committee of the board of directors.”

“For those classified as officers (and thus disqualified persons), the organization uses the following to establish compensation: external market salary surveys, external market salary studies, engagement of an independent compensation consultant, and review/approval of compensation by the compensation committee of the board of mercy health. For those classified as key employees, the organization uses the following to establish the compensation: external market salary surveys, external market salary studies, and review/approval of executive management. Compensation reviews are completed on an annual basis, and a review was completed during the reporting year.”

“Governing documents, conflict of interest policy, and financial statements are made available from time to time but are not published publicly.”

“Average hours per week the hours per week disclosed in part vii is the average hours the listed person worked or devoted per week while employed or associated with the filing organization and related organizations (if applicable).”

“Net transfers to/from affiliates 57,189,513.”

“Audited financial statements the filing organization's financial statements were included in the mercy health, and subsidiaries annual financial statement audit. Mercy health and subsidiaries received an unqualified opinion from the external auditors for fiscal 2020 (the tax year currently being reported). However, no separate audit opinion is issued on the financial statements of the filing organization. The ultimate responsibility for oversight of the financial statement audit and selection of the external auditor lies with the stewardship committee of the mercy health board of directors. Audit results are communicated to this committee.”

“Single audit act and 2 cfr 200 audit mercy health undergoes a consolidated 2 cfr 200 audit every year. This audit is underway for the fiscal year ending june 30, 2020 and will be completed by june 30, 2021. Each entity that receives federal funds during the year is included on the schedule of expenditures of federal awards (sefa) and is also included in the population included in the audit. If the filing entity received federal funds during the year ended june 30, 2020, it will be included on the mercy health consolidated sefa, and therefore, also included in the population included in the audit.”

“System limitations lawson erp software is the primary accounting software used by mercy health system, inc. And subsidiaries. The majority of the intercompany/related organization transactions are processed through lawson via intercompany journal entries. With the current design of the erp system, there are various limitations on the related organization information that can be extracted from lawson. Due to these limitations,most of the related organization activity for the filing organization has been classified on schedule r, part v, in lines p and q.”

“Mercy hospitals east communities mercy hospitals east communities consists of mercy hospitals east communities st. Louis, ein 43-065393, and mercy hospitals east communities washington, ein 43-1066883.”

“Independent contractors independent contractors for the filing organization are paid by mercy health (ein 43-1423050). As such, all required form 1099 and form 1096 reporting is made for the entire health system (with limited exceptions) under the mercy health ein.”

“Public charity status the organization meets the definition for public charity status box 3 on part i of schedule a, but does not meet the definition of a hospital for schedule h. Therefore, schedule h was not completed for this organization.”

“W-3 filing salaries and wages with limited exceptions, the salaries and wages reported on form 990, part ix, line 7 represent an allocation of salaries and wages from a related organization. Most employees are paid by a related organization under a common paymaster arrangement. As such, all required payroll filing for these employees (including w-2 and w-3's) is reported under the related organization, mhm support services,ein 20-2553101.”

“Early in 2020, the mercy health system was called to serve as the covid-19 pandemic swept across the world. This continues to be a difficult time for all healthcare providers. All mercy facilities adjusted operations for the impacts of the pandemic which meant making changes to patient care areas and cancelling most of our outpatient procedures for periods of time. In addition, mercy foundations and outreach ministries experienced limitations in fundraising for program and capital support efforts that assist the underserved in our communities. Mercy's total system revenues were reduced by over $550 million dollars during the four months ending june 30, 2020, and this figure does not include the impact of any coronavirus aid relief and economic security act ("cares act") funding. Mercy received cares act funding across various entities for the year ended june 30, 2020 and recognized a portion of this funding in other operating revenue. These funds helped to offset revenue losses and additional expenses incurred due to the pandemic; however, these funds fell short of the system losses experienced in these months due to the pandemic. The impact of covid-19 was significant to our communities and coworkers as unemployment rates soared and mercy acted quickly to provide continuous care to patients and the community. Mercy continues to monitor the impacts of the pandemic both to the health system and the communities served as we continue to provide assistance and maintain access to care within our communities.”