Akron General Health System

“During 2014 akron general health system (aghs) became affiliated with the cleveland clinic foundation (ccf). Changes to the code of regulations include the following significant changes: - the range of the number of members of the governing body increased from "no fewer than 9 and no more than 19" to "no fewer than 12 and no more than 22". - creation of 2 membership classes, the "aghs class" and the "ccf class" (limited to 3 members) with each class having certain powers over aspects of the affiliation agreement and each having the power to appoint members of its membership class. In the event of dissolution, ccf member class shares power with the aghs member class with respect to the distribution of residual assets of the organization. The ccf member class has at least one member on every aghs board committee.”

“Line 11b - akron general health system prepares its form 990 internally. The return is subject to an overall and financial review by the vice president of accounting and finance/interim co-chief financial officer of akron general health system and reviewed for compliance with the reporting requirements of form 990 by the director of corporate tax for akron general health system. An overall review is performed by the governance committee of the akron general health system board. The form 990 is then reviewed by an independent accounting firm, which signs as preparer.”

“Akron general health system is the parent organization of the system and as such it determines certain policies and procedures applicable to all member organizations. In the case of conflict of interest reporting, akron general health system determines the policy and the procedure. A conflict of interest questionnaire is distributed to all board members, management personnel, employed physicians and any other personnel that have been designated by management. The distribution covers all system organizations. All responses that indicate a perceived conflict of interest are turned over to the governance committee (the committee) of akron general health system for review. The committee makes a determination as to whether the perceived conflict is likely to be an actual conflict, the materiality of any actual conflicts and the extent of safeguards required for any actual conflicts. Safeguards include, but are not limited to, requiring, in the case of a board member, that the person recuse himself or herself from any discussions or voting that may be affected by the conflict, requiring the person to disengage from the conduct creating the conflict or requiring the person to resign from the position affected by the conflict. This process is conducted by akron general health system's legal services department annually. The conflict of interest letter puts the recipient on notice that he or she is under an ongoing duty to report any potential conflicts that may arise subsequent to this formal process. Subsequent event reporting is monitored by akron general health system's legal services department. Any subsequently reported items are subject to the aforementioned review process by akron general health system's governance committee.”

“The reporting organization follows a process for determining compensation of the organization's chief executive officer (ceo) and other top management personnel that is modeled after the requirements found in internal revenue code section 4958 for establishing the presumption of reasonable compensation. Therefore, the process calls for recommendations - developed by an independent compensation consultant, based on comparable market data from published surveys and the forms 990 of comparable organizations - that are within the range of the compensation of similarly situated persons at similarly situated organizations. These recommendations are reviewed by the compensation committee of the reporting organization's board of directors. The compensation committee is comprised of independent persons and the deliberations are documented, contemporaneously, in the committee's minutes. With the exception of the ceo, the compensation for top management was reviewed for reasonableness using this process in 2012. During 2014, the ceo's contract was prepared for renewal using the process described above. In january 2015, the board approved the recommendation of the compensation committee and executed a new three-year agreement with the ceo.”

“Currently, akron general health system does not make its governing documents, conflict of interest policy, or its financial statements generally available to the public. Akron general health system does make these documents available on a case by case basis.”

“Consulting services: program service expenses 493,987. Management and general expenses 0. Fundraising expenses 0. Total expenses 493,987. Consulting services-acquisition: program service expenses 1,881,843. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,881,843. Physician retention: program service expenses 54,367. Management and general expenses 0. Fundraising expenses 0. Total expenses 54,367. Marketing: program service expenses 110,260. Management and general expenses 0. Fundraising expenses 0. Total expenses 110,260. Miscellaneous: program service expenses 381,502. Management and general expenses 0. Fundraising expenses 0. Total expenses 381,502.”

“Contributed capital from affiliated organizations 2,707,645. Transfers from/(to) affiliated organizations -30,865,483. Book/tax difference on partnerships 977. Cleveland clinic investment 100,000,000. Agp revenue posted on aghs 8,420.”