The Methodist Hospitals Inc.

“The form 990 is reviewed by the controller and cfo of the organization and then sent to members of the governing body for review prior to filing.”

“The board passed a resolution in 1994 which requires each board member to annually disclose all situations where a potential conflict of interest may exist. The conflict of interest/related party questionnaires are completed and reviewed on an annual basis. Any potentially conflicted directors are prohibited from participating in the discussion about or voting on any conflicted issue.”

“The hr and governance committee uses independent and external resources for the establishment of compensation for officers and other key employees. The committee uses comparability data and market comparisons including compensation surveys and form 990 information from other organizations as part of the compensation determination process. The compensation approach, process, and data are thoroughly discussed in the committee meetings and the review and approvals are documented throughout the process. The most recent year this process was undertaken was 2016.”

“Documents are available upon request.”

“CONTRACT LABOR: Program service expenses 265,303. Management and general expenses 313,246. Fundraising expenses 0. Total expenses 578,549. CONSULTING: Program service expenses 580,224. Management and general expenses 186,796. Fundraising expenses 0. Total expenses 767,020. PROFESSIONAL FEES: Program service expenses 9,310,934. Management and general expenses 40,010. Fundraising expenses 0. Total expenses 9,350,944. PURCHASED SERVICES: Program service expenses 19,493,910. Management and general expenses 2,894,405. Fundraising expenses 0. Total expenses 22,388,315. BILLING: Program service expenses 144,581. Management and general expenses 514,058. Fundraising expenses 0. Total expenses 658,639. SECURITY: Program service expenses 7,965. Management and general expenses 657. Fundraising expenses 0. Total expenses 8,622. MARKETING: Program service expenses 97,629. Management and general expenses 12,517. Fundraising expenses 0. Total expenses 110,146. TRANSCRIPT: Program service expenses 237,623. Management and general expenses 30,287. Fundraising expenses 0. Total expenses 267,910. REFERENCE: Program service expenses 1,568,336. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,568,336. TRANSPORT: Program service expenses 154,860. Management and general expenses 0. Fundraising expenses 0. Total expenses 154,860. RECRUITMENT: Program service expenses 636,479. Management and general expenses 79,916. Fundraising expenses 0. Total expenses 716,395. FEES: Program service expenses 888,046. Management and general expenses 113,859. Fundraising expenses 0. Total expenses 1,001,905.”

“Pension Related Changes Other Than Net Periodic Cost -6,666,451. TRANSFER TO THE METHODIST HOSPITALS FOUNDATION, INC. -250,000.”

“There has been no change in process from prior year.”