Community Hospital of Bremen Inc

“Beacon Health System, Inc. is the sole corporate member of Community Hospital Of Bremen, Inc.”

“The Corporate Member shall appoint the board of directors of Community Hospital of Bremen and shall have such powers of advance approval regarding corporate actions as are delineated in the bylaws of Community Hospital of Bremen.”

“Decisions of the board of directors must be approved by the Corporate Member. Beacon Health System, Inc., the sole member of Community Hospital Of Bremen, has the sole power with respect to the following matters: 1. Selection and retention of auditors. 2. Approval of all contracts, policies, or programs of insurance establishing the types of insurance coverage required as well as the coverage levels. 3. The nomination, election and removal of members of the board of the Corporation. 4. The appointment and evaluation of the President of the Corporation. 5. Compensation of executive management of the Corporation. 6. Other matters determined from time to time by the Member, or as provided in the bylaws or other governing documents.”

“The Organization incorporates numerous parties in the production and review of the form 990 and associated schedules. Senior accounting staff and management complete information for the form 990 and related schedules. Some forms and schedules are reviewed by the controller. Subsequent to those steps, the organization engaged RSM to prepare form 990 and appropriate schedules. Prior to filing the return, the CFO, the audit committee of the organization, and the CEO, conduct a general overview of the form 990, including applicable compensation schedules. In addition, each board member receives notification of the IRS form 990 placement on the Organization's board portals which allows for board member review prior to filing the return.”

“There are three separate forms that are sent out through the internal audit department to key employees or board members regarding conflict of interest. They are as follows: 1. The first is a conflict of interest statement that is sent to senior level administration, management, and select staff, such as purchasing department employees. The purpose of the statement is to require these employees to disclose any potential conflict of interests they may have. The statements are sent in January of each year for the previous year activities. We pursue the replies to get a 100% response rate. In the current year we sent out 372 statements and are working to achieve a 100% response rate. Each response is reviewed by the director of internal audit and the results are reported to the CEO of Beacon Health System, the audit committee chairman, as well as the audit committee of the board of directors. 2. The second statement is the board duality of interest statement that is sent to current board members, former board members from the last five years, and other key employees. The duality of interest statement is sent using a web based survey tool provided by RSM. The replies are reviewed by the director of internal audit. The results of the surveys are summarized using the web based tool, and are reviewed by RSM in completing the 990. The results are reported to the CEO of Beacon Health System, the audit committee chairman, and the audit committee of the board of directors. 3. The third statement is entitled "Code of Ethics for Senior Financial Officers". The statement requires an acknowledgement form to be signed by Beacon Health System's key financial employees that Beacon's financial information is to the best of their knowledge true and accurate. This statement was sent out on March 4, 2025 and the signed acknowledgements are kept by the director of internal audit. In 2024, 31 designated employees were requested to sign the form and we had a 100% compliance rate. Any potential conflicts of interests are reviewed by independent parties both internal and external to the organization, and if necessary, corrective action would be taken to resolve a true conflict. The individual with the potential conflict of interest would be excluded from all review proceedings.”

“Community Hospital of Bremen, Inc.'s parent, Beacon Health System, Inc. has a comprehensive process in place for reviewing and approving compensation of the executive leadership team. This review compares the total compensation provided to each executive to that provided to functionally similar positions in similarly situated organizations. This review is conducted regularly by the board compensation committee in consultation with an independent compensation advisor who is hired by and reports to the board compensation committee. Based on the advice of the compensation advisor and comparable and appropriate market data reported in third-party compensation surveys, and applying the organization's executive compensation philosophy, the board compensation committee makes compensation recommendations regarding the CEO's compensation to the board of directors for approval and the CEO makes compensation recommendation regarding all other members of the executive leadership team to the board compensation committee for approval. Deliberations and final decisions are contemporaneously documented. The annual compensation review was completed by the board compensation committee in March 2025 and the independent compensation advisor provided a statement of reasonableness of the compensation provided to the CEO and executive leadership team members.”

“The governing documents and conflict of interest policy are not made available to the public. The financial statements are distributed quarterly to the Electronic Municipal Market Access (EMMA) website as part of the continuing disclosures for Beacon Health System, Inc. bonds.”

“Employees are paid by Memorial Hospital of South Bend (EIN 35-0868132) and expenses to Community Hospital of Bremen, Inc. through contract labor.”

“Lab Fees: Program service expenses 150,218. Management and general expenses 0. Fundraising expenses 0. Total expenses 150,218. Other PS: Program service expenses 333,573. Management and general expenses 55,557. Fundraising expenses 0. Total expenses 389,130. P/S Medical: Program service expenses 679,742. Management and general expenses 0. Fundraising expenses 0. Total expenses 679,742. Radiology Fees: Program service expenses 9,091. Management and general expenses 0. Fundraising expenses 0. Total expenses 9,091. Repair & Maint: Program service expenses 85,991. Management and general expenses 14,321. Fundraising expenses 0. Total expenses 100,312. Service Contracts: Program service expenses 219,167. Management and general expenses 36,502. Fundraising expenses 0. Total expenses 255,669. Consulting: Program service expenses 32,913. Management and general expenses 5,482. Fundraising expenses 0. Total expenses 38,395. Fees - Phys: Program service expenses 2,595,874. Management and general expenses 0. Fundraising expenses 0. Total expenses 2,595,874. Rep Parts/Mat: Program service expenses 1,968. Management and general expenses 327. Fundraising expenses 0. Total expenses 2,295. Blood Supply: Program service expenses 54,381. Management and general expenses 0. Fundraising expenses 0. Total expenses 54,381. Contract Labor: Program service expenses 22,813. Management and general expenses 3,799. Fundraising expenses 0. Total expenses 26,612. Trash Removal: Program service expenses 10,844. Management and general expenses 1,806. Fundraising expenses 0. Total expenses 12,650.”

“Write Off Intercompany -2,140,627.”