Commonwealth Health Corporation Inc

“Beverly Boren and Gary Broady - Business relationship”

“Form 990 is sent to board members via secure email. Each board member receives access to review the form prior to the designated filing date”

“The commonwealth health corporation (chc) (applicable to the corporation and/or its affiliates) code of conduct explicitly states members of the board, administration, the medical staff and all employees are expected to avoid conflicts of interest. Further, it requires disclosure of any potential conflicts of interest in a timely manner. All individuals sign an acknowledgement that they have received a copy of the code of conduct, are familiar with its content and understand their responsibilities to avoid non-compliant activity. Chc's regulatory compliance and compensation committee (rcc) reviews and approves all contracts between chc and/or its affiliates and disqualified entities. The review is designed to identify potential conflicts of interest by board members and/or officers. Rcc members are prohibited from taking part in decisions regarding transactions with which he/she has a conflict of interest. Annually, written inquiry is made - by questionnaire - of board members and officers seeking disclosure of conflicts of interest or information that relates to family members. Transactions arising are reviewed by management as they occur. After disclosure of a potential conflict, the interested party may not participate in the committee meeting during which the conflict is discussed and voted upon, except as otherwise provided in the conflict of interest policy. The committee shall determine if a conflict of interest exists in accordance with the procedures set forth in the conflict of interest policy.”

“Commonwealth health corporation uses independent consultants to annually review compensation. Compensation-related determinations are conducted in accordance with applicable requirements of the internal revenue code and regulations to qualify for the presumption that the compensation is reasonable, including but not limited to approval by an authorized committee of the board of directors who do not have a conflict of interest, obtaining and relying on appropriate data as to comparability, and concurrent documentation of the basis for the compensation determinations.”

“Commonwealth health corporation uses independent consultants to annually review compensation. Compensation-related determinations are conducted in accordance with applicable requirements of the internal revenue code and regulations to qualify for the presumption that the compensation is reasonable, including but not limited to approval by an authorized committee of the board of directors who do not have a conflict of interest, obtaining and relying on appropriate data as to comparability, and concurrent documentation of the basis for the compensation determinations.”

“Governing documents, conflict of interest policy and financial statements are only made available if required, and in the manner required, by a governing agency.”

“Benefits provided directly to the community by med center health and its affiliates: financial assistance (free or discounted care for uninsured people whose incomes met certain poverty guidelines): $7,848,550 unpaid cost of medicaid/medicare: $20,112,350 community health services (including free community health fairs, screenings, community health education classes, and health and wellness projects): $5,387,053 health professional education: $4,662,956 subsidized health services (includes emergency care and behavioral health services for which reimbursements do not cover the full cost and kentucky provider tax to fund care): $1,982,475 financial and in-kind contributions: $667,219 community building activities: $411,442 bad debt (services provided in which payment is expected but never received, stated at gross*): $41,510,837 total charity care and other benefits: $102,871,733 *amount includes the bad debt balances of a 50% owned entity that was not consolidated in the corporation's consolidated financial statements.”

“Collection Fees - Total Expense: 386106, Program Service Expense: 386106, Management and General Expenses: 0, Fundraising Expenses: 0; Consulting Fees - Total Expense: 11444216, Program Service Expense: 11444216, Management and General Expenses: 0, Fundraising Expenses: 0; Billing Fees - Total Expense: 3925068, Program Service Expense: 3925068, Management and General Expenses: 0, Fundraising Expenses: 0; Pathology Lab Fees - Total Expense: 75295, Program Service Expense: 75295, Management and General Expenses: 0, Fundraising Expenses: 0; Contract Fees - Total Expense: 11502204, Program Service Expense: 10457542, Management and General Expenses: 1044662, Fundraising Expenses: 0;”

“NET PERIODIC PENSION ADJUSTMENT - -98210; Total - -98210;”

“The board of directors assumes responsibility for oversight of the audit of the financial statements and selection of the independent accountant; and no processes have changed from prior year.”