Phelps Medical Services PC

“The organization is incorporated as a professional corporation. Through bylaws and shareholder agreement Phelps Memorial Hospital Association ("hospital"), a not for profit corporation, retains ultimate control over the organization and is the beneficial owner of this organization. Organization's stock is held in Nominee form only. Shareholder of the stock is bound by the shareholders agreement. The bylaws state that the organization is organized and operates exclusively for the sole purpose of supporting the hospital.”

“The hospital as it has ultimate control over the organization and has power to appoint board members.”

“Any governance decisions of the organization are subject to approval by the hospital.”

“The 2014 form 990 was prepared by a certified public accounting firm (paid preparers) and reviewed by the management of Phelps Memorial Hospital. Management presents the Form 990 to the Shareholder of Phelps Medical Services, PC, who reviews the Form 990 prior to its filing with the IRS.”

“All governing board members, senior management and other personnel who might find themselves in a position where their personal interests conflict with the interests of Phelps Medical Services are required to file an annual conflict of interest disclosure statement with the Compliance Officer and immediately disclose to the Compliance Officer any possible conflicts of interests as they arise. It is the responsibility of the Compliance Officer to obtain and review conflict of interest disclosure statements at least annually. The Compliance Officer as necessary will consult with outside counsel and report to the Audit Committee of the Board of Directors any conflicts.”

“The documents are available upon request.”

“The officers listed on Form 990, Part VII as compensated by a related party, receive compensation from Phelps Memorial Hospital Association ("PMHA"). PMHA follows the intermediate sanctions rules when setting compensation of officers. For a full description of the procedure please see PMHA's Form 990.”

“Contracted Physicians: Program service expenses 19,115,320. Management and general expenses 0. Fundraising expenses 0. Total expenses 19,115,320. data processing: Program service expenses 10,241. Management and general expenses 0. Fundraising expenses 0. Total expenses 10,241.”

“The process has not changed from the prior year.”