Marshall Health Network Inc.

“Form 990, part vi, section a, line 7 mountain health network, inc (mhn) has one member, cabell huntington hospital, inc. (chhi). The corporation is currently managed by nine board members that are appointed as follows: the chairman of the chhi board shall also serve as chairman of mhn. Three additional members of the chhi board (chosen by chhi board chair) shall serve, the president/ceo of chhi shall serve, one member shall be the dean of the marshall universty joan c. Edwards school of medicine, one member shall be the president/ceo of st. Marys hospital, one member shall be the president of the medical and dental staff at st. Marys medical center, and one member shall be a sister of the pallottine missionary society that resides in huntington, wv. The board of directors of chhi shall have the authority to add members up to the maximum of fifteen allowed by the governance documents. Form 990, part vi, section b, line 11 a draft of the form 990 is reviewed by drew hefner, director of financial decision support; barbara gunn, financial manager; monte ward, cfo; paul smith, general counsel; and jim bailes, attorney. After review by these individuals, the final copy of form 990 is provided to the board members for their review. Form 990, part vi, section b, line 12c yearly, officers, directors, and key employees are sent an annual questionnaire addressing the conflict of interest policy. Each completed questionnaire is reviewed by the board members and general counsel to determine if a conflict exists. If a conflict does exist, an in-depth analysis is performed to determine any impact to the organization. Form 990, part vi, section b, line 15 the board of directors of the organization has adopted a written executive compensation policy setting forth the board philosophy with respect to the compensation of its executives. An executive compensation committee comprised of board members has been delegated the responsibility for establishing compensation of the chief executive officer of the organization in keeping with the philosophy established by the board. The compensation committee has engaged the outside consulting firm of yaffe and associates, a firm which specializes in analyzing non-profit executive compensation. The outside consulting firm periodically provides the committee with relevant data concerning the compensation levels of executives of hospitals similar in size to the organization and in comparable geographic areas. The compensation committee considers this data together with the extent to which pre-established goals have been accomplished and the financial performance of the hospitals and establishes the compensation level for the chief executive officer. Form 990, part vi, section c, line 19 the organization makes its governing documents, conflict of interest policy, and financial statements available upon request through the in-house general counsel's office.”

“Form 990, part xi, line 9 mountain health network, inc. Has filed in previous years as a c corporation before receiving tax exempt status. The amount of $(164,576) represents prior years' retained earnings unappropriated.”

“Form 990, part xii, line 2c the annual financial statements are consolidated with the parent entity cabell huntington hospital, inc. That audit committee intermittently puts out bids for the annual audit and chooses what firm to go with. During the year auditors meet with this committee prior to audit and again to present audit. This process remains unchanged.”