Indianapolis Osteopathic Hospital Inc

“Form 990, part vi, line 2 - related party information among officers the board of directors for ioh is also the board of directors for community health network, inc. ("chnw") and bryan mills and david williams, d.o. Received compensation from chnw. The following directors also served as a director of community physicians of indiana, inc. ("cpi"): jason becker bryan a. Mills annette m. Moore, m.d. Steven r. Plump and hany haddad, m.d., annette m. Moore, m.d., and kenneth shaver, m.d. Received compensation from cpi. The following directors served as directors of visionary enterprises, inc., a taxable affiliate of chnw: bruce f. King bryan a. Mills form 990, part vi, line 16b - joint venture policy even though a written policy does not currently exist, the matter is under review.”

“Effective january 30, 2014, ioh delegated exclusive authority to chnw (the sole member), acting through chnw's board of directors, in the following substantive areas: strategic planning, capital access, budgeting and allocation; audit and compliance; network compensation; and dispute resolution. In addition, chnw must approve any modification, repeal, amendment, or restatement of ioh's articles of incorporation. Finally, chnw must approve any material sale or disposition of the assets of ioh.”

“Chnw is the sole member of ioh. Chnw is an exempt organization pursuant to section 501(c)(3).”

“Effective january 30, 2014, ioh delegated exclusive authority to chnw (the sole member), acting through chnw's board of directors, in the following substantive areas: strategic planning, capital access, budgeting and allocation; audit and compliance; network compensation; and dispute resolution. In addition, chnw must approve any modification, repeal, amendment, or restatement of ioh's articles of incorporation. Finally, chnw must approve any material sale or disposition of the assets of ioh.”

“Ioh is an affiliate of community health network ("the network"), an integrated health delivery system. Ioh has delegated authority for the review of the form 990 to two committees composed of independent outside directors: a) the network executive compensation committee reviewed the compensation aspects of ioh's form 990, and b) the network finance committee reviewed the remainder of the form 990. In addition, ioh's board of directors and the network's outside accounting firm and law firm reviewed the form 990 prior to filing. Ioh utilized this process to ensure that ioh's form 990 received substantive review by directors and professionals with specific knowledge of ioh's activities and extensive financial, accounting, and tax expertise.”

“Chnw has assumed responsibility for ioh's audit and compliance matters. Chnw has adopted a conflict of interest policy that applies to ioh. 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 ioh. 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 ioh, 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 ioh.”

“Chnw assumed responsibility for ioh's executive compensation matters. 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 ioh'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 2016, the network executive compensation committee followed this process for all senior executive leaders.”

“SEE LINE 15A ABOVE”

“A) the articles of incorporation and certificate of existence 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) ioh does not make its conflict of interest policy available to the public. C) ioh 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. Ioh 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.”

“To provide quality healthcare to the central indiana community - regardless of their ability to pay - with facilities, support and growth for the osteopathic profession through our intern/resident education programs, increased physician practices, presence and expertise.”

“Form 990, part i, line 4 - independent voting members indianapolis osteopathic hospital, inc. ("ioh") is an affiliate of community health network ("the network"), an integrated health delivery system. Ioh is controlled by its parent, community health network, inc. ("chnw"), the tax-exempt parent of the integrated health delivery system. Ioh's articles of incorporation and bylaws designate the members of the board of directors of chnw to be the directors of ioh. Chnw exercises control over ioh through a series of governance rights: a) chnw is the sole member of ioh; b) ioh has delegated exclusive authority to chnw, acting through chnw's board of directors, in the following substantive areas: strategic planning; capital access, budgeting and allocation; audit and compliance; executive compensation; and dispute resolution; c) chnw must approve any modification, repeal, amendment, or restatement of ioh's articles of incorporation; and d) chnw must approve any sale or disposition of substantially all of the assets of ioh. With regard to executive compensation, chnw has delegated authority to review and approve executive compensation, including ioh's executives, to a network executive compensation committee composed of independent outside directors. In sum, ioh has removed any risk of inappropriate related party transactions by delegating (through chnw) its executive compensation decisions to a network executive compensation committee and its conflict of interest decisions to a network audit committee, with each committee composed of independent outside directors.”

“For a number of years, a declining economic and social structure in the geographic area, coupled with an inability to negotiate favorable pricing and reimbursement levels due to the small market size put a strain on the economic feasibility of ioh. On december 2, 2016 the surgery department closed. The emergency department and all other hospital services in the main building closed on december 16, 2016.”

“Included 10,230 emergency visits. The ioh surgery department performed 1,844 surgeries in 2016.”

“Form 990, part v, line 1a - box 3 of form 1096 form 1096 was processed under the name and federal identification number of community health network, inc.”

“Professional fees 128,457 50,265 0 service expense 5,341,397 7,430,248 0 total 5,469,854 7,480,513 0”

“An appraisal of the hospital was completed and the value was significantly less than the book value due to the location, condition and age of the building. As a result, an adjustment was made to lower the book value of the hospital.”