Blanchard Valley Health System

“Myron lewis and dr. Richard polder are board members and are paid employees of a related organization. Due to their employment, they are considered non-independent voting members of the board.”

“A detailed review of the form 990 is performed by the organization's compliance and audit committee. This committee is comprised of members of the board of trustees, members of the community, and members of upper management. The compliance and audit committee reports to the board of trustees any areas of concern regarding the form 990's. Once the form 990's have been finalized, reviewed and approved, the members of board of trustees receive electronic communication that the form 990's are complete and available for review. Any questions arising from board members are addressed by the compliance and audit committee, upper management, the accounting department, and/or external accountants.”

“Annually, the organization asks its board members, corporate officers, upper management, and key employees to complete conflict of interest surveys. These surveys also include relationship & activity questions that these individuals are asked to complete for the form 990 filing year. Board members are required to bring to the attention of executive management any conflicts as they arise. These conflicts are documented in the board minutes. Board members that have conflicts are to excuse themselves from discussions and/or voting on issues with which a conflict exists.”

“The organization reviews executive compensation, benefits, and prerequisites on a periodic basis to ensure consistency with compensation philosophy and market practice. A subset of members from the board of directors serves as the executive compensation committee, and this committee meets to approve wage increases as well as reviews the organization's position in the market when it comes to executive compensation. In addition, the executive compensation committee annually engages sullivan cotter and associates, an external compensation consulting firm, to assess the reasonableness of the compensation program used for its executives. The committee also periodically performs a full benefit analysis and review with sullivan cotter and associates as part of this process. The organization is committed to a decision-making process for executive compensation that is consistent with internal revenue code section 4958 requirements for obtaining a rebuttable presumption of reasonableness. The members of the committee approving executive compensation decisions are individuals who are disinterested (i.e., do not have a conflict of interest with respect to the arrangements). The committee reviews objective data, including survey data prepared by independent firms, as part of the decision-making process. The market data provided in the compensation report from the consulting firm assists the organization in establishing the rebuttable presumption of reasonableness. The executive compensation committee's work is also shared/discussed with the board.”

“The same process applies for all other executive steering committee members as detailed for the ceo.”

“Financial statements, required tax forms (i.e., form 990), as well as governing documents and conflict of interest policies are available upon request through the administrative and finance offices.”

“INVESTMENT INCOME TIMING DIFFERENCE - -82703; TRANSFERS FROM AFFILIATES - 72034905; CHANGE IN BENEFICIAL INTEREST IN PERPETUAL TRUST - 9000; Total - 71961202;”