Elkhart General Hospital Inc

“Beacon Health System, Inc. is the sole corporate member of Elkhart General Hospital, Inc.”

“The Corporate Member shall appoint the board of directors of Elkhart General Hospital, Inc. And shall have such powers of advance approval regarding corporate actions as are delineated in the bylaws of Elkhart General Hospital, Inc. In the absence of such selection by the Corporate Member, or until the Corporate Member determines otherwise, directors shall be selected as follows: eight (8) directors shall be determined by the Member or by the board with the approval of the Member. The President of the medical staff of the corporation shall not be a director but shall be entitled to participate ex officio with the board of directors, with the ability to participate in deliberations but without the right to vote, so long as such individual holds the position of President of the medical staff.”

“Decisions of the board of directors must be approved by the Corporate Member. Beacon Health System, the sole member of Elkhart General Hospital, has control over Elkhart General Hospital's operations. The following matters require the approval of Beacon Health System's board: 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. Other matters determined from time to time by the Member, or as provided in the bylaws or other governing documents. In addition, the Member may elect in its discretion to take action directly with respect to any matter including matters within the scope of the board of directors of the Corporation, and such actions will supersede any inconsistent actions of the board of directors of the Corporation. 1. The Member shall take action annually for the purpose of electing directors and conducting such other business as shall properly come before such meeting. This meeting shall be held at such date, time and place as the member shall determine, but if no determination is made, shall be held on the same date as the annual meeting of the Member, at the principal office of the Member. 2. Any action required or permitted to be taken by the member may be taken by the Member by written consent to such action and delivery of the writing or writings to the corporation for inclusion in the minutes of the members for filing with the corporation's records. Action taken pursuant to this section is effective on the date the Member signs the consent unless the consent contains an earlier or later effective date. 3. The Corporation may rely on a certificate signed by the secretary or other officer of the Member that an action has been taken by the Member. 4. Membership in the Corporation may be transferred, for or without consideration, by the Member. The Corporation shall not admit additional members without the prior consent of the Member.”

“The Organization incorporates numerous parties in the production and review of the form 990 and associated schedules. Senior accounting staff and management complete 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.”

“Elkhart General Hospital, 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.”

“Write Off Intercompany Balances -49,957,948.”