Community Health Network Inc.

“Related party information among officers the following directors/officers served as a director or officer of community physicians of indiana, inc. ("cpi"): john kunzer, m.d. Bryan a. Mills annette moore, m.d. Charles platz, m.d. Steven plump ramarao yeleti, m.d. John kunzer, m.d., annette moore, m.d., and charles platz, m.d. Received compensation from cpi. The following directors/officers served as directors of visionary enterprises, inc. ("vei"), a taxable affiliate of chnw: jason fahrlander ronald thieme, ph.d.”

“Organization's process to review form 990 chnw has delegated authority for the review of chnw's form 990 to two committees composed of independent outside directors: a) the network executive compensation committee reviewed the compensation aspects of chnw's form 990, and b) the network finance committee reviewed the remainder of the form 990. In addition, chnw's outside accounting firm and law firm reviewed the form 990 prior to filing. Chnw utilized this process to ensure that its form 990 received substantive review by directors and professionals with specific knowledge of chnw's activities and extensive financial, accounting, and tax expertise.”

“Enforcement of conflicts of interest policy chnw has delegated authority for audit and compliance to the audit committee, which is composed of independent directors. The conflict of interest policy requires directors, officers, and key employees to submit an annual conflict of interest disclosure. The annual disclosure requires directors, officers, and key employees to disclose, in writing, any known financial interest that the individual (together with family members) has in any business entity that transacts business with chnw. In addition, directors, officers, and key employees are required to immediately disclose any possible conflict of interest that arises mid-year in relation to a proposed transaction. The conflict of interest policy requires that any individual with a conflict be recused from the decision making process, that independent directors or committee members determine that the proposed transaction is in the best interest of chnw, and the transaction must be approved by a vote of independent directors or committee members without the participation of any interested individual. The annual conflict disclosure statements are submitted to, and reviewed by, chnw's audit committee, composed of independent directors. In addition, the executive staff and general counsel of the network are responsible for monitoring any possible conflict transactions that arise and managing them to ensure that all transactions represent arms length, fair market value terms for the benefit of chnw.”

“Compensation process for top official chnw has adopted an executive compensation and intermediate sanctions policy. The purpose of the policy is to ensure that chnw's compensation arrangements with related parties are evaluated and entered at arms length and that any compensation that is paid to a related party is reasonable and reflects fair market value. This policy encourages the application of the rebuttable presumption standard of code section 4958 and the related treasury regulations by: a) excluding any interested party from the decision making process, b) requiring disinterested board or committee members to obtain and rely upon comparability data when setting the proposed compensation terms, c) requiring approval of the transaction in advance by disinterested directors or committee members, and d) requiring contemporaneous documentation (i.e. Minutes) reflecting the decision and the process by which it was made. Chnw also delegated authority regarding chnw's executive compensation to a)the network executive compensation committee, composed of independent outside directors, which is responsible for applying the terms and process of the executive compensation and intermediate sanctions policy as outlined above, and b) the network vice president of human resources who is responsible for obtaining comparative salary market data for the chief executive officer, officers, and key employees, periodically engaging an independent compensation consultant to establish reasonable compensation, and providing staff support to the network executive compensation committee. During 2019, the network executive compensation committee followed this process for all senior executive leaders. Form 990, part vi, line 15b - compensation process for officers see line 15a above. Form 990, part vi, line 16b - joint venture procedure joint venture operating agreements involving chnw include provisions to protect chnw's tax-exempt status. Each agreement contains specific language related to the provision of health care services with focus on community health benefit and must follow a formal review process prior to contract execution. Chnw continually ensures that its tax-exempt status is protected by actively participating in the governance of all joint ventures.”

“Governing documents disclosure explanation a) the articles of incorporation and business entity report are on file with the indiana secretary of state and are available to the public upon request to the indiana secretary of state or free of charge on the secretary of state's website. B) chnw has adopted the network conflict of interest policy. While this policy is not available to the public, the network's definition of conflict of interest and how to report such an incident is described in the network responsibility and compliance program ("nrcp") manual which is posted on the network's website, ecommunity.com. This manual is available for the public to review. C) chnw does not have individually audited financial statements. Its financial results are included in the consolidated financial statements of chnw and affiliates. As such, there are no individual financial statements to post. Chnw does file the 990 tax return on an annual basis which is available upon request and/or available on a delayed basis on guidestar.org. D) community health network, inc. And affiliates provide any document open to public inspection upon request.”

“Part vii, section b - independent contractor disclosure compensation to pepper construction company of indiana includes material costs.”

“Community health network, inc. ("chnw") is a 501(c)(3) corporation serving the health related needs of the citizens of the indianapolis metropolitan area and central indiana. Chnw operates three general acute care hospitals and provides inpatient, outpatient, emergency and ambulatory health care services to all patients regardless of their ability to pay. Chnw's mission is to: a) promote the health of the residents of central indiana by promoting, supporting and furthering the charitable purposes of: community hospital south, inc., community hospital of anderson and madison county, inc., community ltc, inc., and community home health services, inc. (collectively, the "supported organizations"), and their respective subsidiaries and affiliates, to consider, coordinate, and facilitate the alignment of initiatives within the community health network ("network"). B) serve as the parent of the network, an integrated delivery system, and exercise common supervision and control over the network by integrating, coordinating, and managing the delivery of capital, resources, and services throughout the network. In furtherance of its role as the parent, the corporation is responsible for carrying out a number of significant management, governance, and operational functions on behalf of the entire network, the supported organizations, and their respective subsidiaries and affiliates.”

“Form 990, part i, line 4 - independent voting members the board of directors for chnw is also the board of directors for the following organizations: community home health services, inc., community hospital south, inc., and health institute of indiana, inc. With regard to executive compensation, chnw reviews and approves executive compensation through the deliberations of the network executive compensation committee composed of independent outside directors. Likewise, chnw reviews and manages conflict of interest transactions through the deliberations of a network audit committee composed of independent outside directors.”

“As of january 1, 2012, chnw became the employer for various related entities. The total employees reported on form w-3, transmittal of wage and tax statements filed for 2019 was 17,201.”

“Community health network, inc. ("chnw") is a 501(c)(3) corporation serving the health related needs of the citizens of the indianapolis metropolitan area and central indiana. Chnw operates three general acute care hospitals and provides inpatient, outpatient, emergency and ambulatory health care services to all patients regardless of their ability to pay. Chnw's mission is to: a) promote the health of the residents of central indiana by promoting, supporting and furthering the charitable purposes of: community hospital south, inc., community hospital of anderson and madison county, inc., community ltc, inc., and community home health services, inc. (collectively, the "supported organizations"), and their respective subsidiaries and affiliates, to consider, coordinate, and facilitate the alignment of initiatives within the community health network ("network"). B) serve as the parent of the network, an integrated delivery system, and exercise common supervision and control over the network by integrating, coordinating, and managing the delivery of capital, resources, and services throughout the network. In furtherance of its role as the parent, the corporation is responsible for carrying out a number of significant management, governance, and operational functions on behalf of the entire network, the supported organizations, and their respective subsidiaries and affiliates.”

“Form 990, part v, line 1a - number reported in box 3 of form 1096 chnw files 1099s for various related entities. The total number reported on form 1096, transmittal of u.s. Information returns filed for 2019 was 251.”

“CAYMAN ISLANDS”

“Increase in isc east equity investment 3,647,673. Underfunded replacement pension plan adjustment 1,729,921. Change in eliminations -556,533. Acquisition of fairbanks consolidated -5,000,000. Elimination of westview consolidated -20,471,517. East surgery center distributions -11,939,058. Home health jv contribution 17,100,000. Launchpad purchase 6,945,591.”

“The audit oversight and selection processes have not changed since last year.”