Medcentral Health System

“The tax return was prepared by kpmg with information provided by the organization. Effective march 1, 2014 medcentral health system was acquired by "member substitution." ohiohealth corporation is now the sole member because the legal entity of medcentral health system did not change. The medcentral board of trustees was dissolved at that time and no longer existed when the 2013 990 was completed during the fall of 2014. Ohiohealth was not a legal owner of medcentral during the period covered by the 990. Consequently, there was no appropriate board to review the form. However, medcentral's interim vp finance and accounting director, as well as ohiohealth's tax manager, have been involved throughout the transitional 2013 990 tax preparation process.”

“Conflict of interest forms are completed annually by officers and trustees. All employees are asked during their annual performance evaluation whether they have potential conflicts to disclose. The conflict of interest policy is also reviewed during new employee orientation. The director of risk management and corporate compliance is responsible for reviewing and monitoring transactions for conflicts of interest. The director of accounting also reviews the accounts payable distribution to check for employee names and/or family members. Board members with a potential conflict are asked to leave the room and not participate in any discussion or vote related to the conflict.”

“The compensation committee, none of which have a conflict of interest with respect to the compensation arrangement, was accountable for setting reasonable compensation packages for the ceo, vice presidents and physicians employed by the system. The executive committee developed, consistent with medcentral health system's philosophy and principles, the annual performance goals and criteria to be used in determining merit increases and variable compensation criteria for the ceo. The compensation committee also reviewed appropriate comparability data prepared by an independent consultant that utilized national nonprofit compensation surveys in determining the ceo's compensation. The compensation for all other officers is approved by the ceo.”

“The organization does not make its governing documents, conflict of interest policy, and financial statements available to the public.”

“The stated mission of medcentral health system is to provide expert health care to the people of north central ohio. North central ohio is defined as a multi-county area with a combined population of approximately 350,000. Medcentral does this a number of ways: *by offering state-of-the-art care in richland county so people in the local communities do not have to travel over 60 minutes north or south to receive that excellent care. For example, medcentral has offered open heart surgery at mansfield hospital since 1998, nurturing the service to become a leader in the state. *by starting and remaining a partner of the third street family services, a primary care clinic for uninsured or underinsured residents. *by operating a radiation oncology center which is accredited by the american college of radiology. *by being a community hospital comprehensive cancer program through the american college of surgeons' commission on cancer. *by seeking opportunities to do clinical research so that the people of north central ohio can have access to cutting-edge diagnostic and curative procedures. *by actively recruiting and employing physicians when appropriate so that residents can have access to primary care physicians and specialists including orthopedic surgeons, oncologists and electrophysiologists. *by acquiring an ambulatory surgery center to maintain a third option for surgery patients in the area. *by operating critical service lines such as inpatient psychiatric and maternity units despite financial challenges and by opening new birthing and surgical suites in maternity. *by fulfilling the requirements to be a level ii trauma center so that patients and families do not add further trauma by being referred out of the area. *by offering state of the art digital mammography at both hospitals. Both sites are approved by the american college of radiology.”

“Community health improvement services and community benefit operations including health screenings, athletic training services to schools, sports physicals for high school students, educational programs, support to the third street clinic and the minority health fair, and sponsorships and donations to other organizations. Community building activities including community board representation and leadership, environmental improvements, workforce development, disaster preparedness and other community support activities. Health professions education including scholarships, job shadowing and mentoring student nurses and radiology technicians. Cash and in-kind contributions to community groups including the third street family services, alzheimer's association, american cancer society, american heart association, shelby bicycle days, united way, pat kracker breast cancer fund, renaissance theater and donations to local schools and governmental agencies.”

“Change in pension liability 8,818,503 gains on restricted assets not sold 146,869 --------- total changes in fund balance 8,965,372 =========”