Joint Commission Resources Inc.

“Although there is no formal written policy, such arrangements are evaluated by the Enterprise Legal Department, appropriate accounting department personnel, and external tax advisers for compliance with applicable federal tax law, including taking appropriate steps to safeguard the corporation's tax exempt status. Furthermore, JCR Articles of Incorporation provide that The Joint Commission, as the sole member of JCR, reserves the power to approve all creations of subsidiaries or controlled affiliates, all permanent or long-term affiliations and all joint ventures of JCR involving capital investment in excess of $250,000. In addition, JCR's Code of Conduct highlights legal and ethical obligations to act in compliance with applicable laws and to engage in activities in furtherance of JCR's charitable purpose.”

“All board committees document their meetings and actions taken. However, no board committees have authority to act on behalf of governing board except by board resolution.”

“As the sole member of the filing organization, The Joint Commission, a related tax-exempt organization, has broad authority to act on behalf of the governing body. Please see the narratives for Part VI, Lines 6, 7a and 7b for a description of such authority.”

“The Organization has one sole member, The Joint Commission. The Joint Commission has the power to: 1) Appoint all Directors to the Board and remove them, with or without cause. 2) Appoint the Chairman, Vice-Chairman and the President/ Chief Executive Officer (President/CEO) of the Corporation and removing them, with or without cause. 3) Approve changes to the Bylaws, mission and/or vision statements, and all strategic or long-term plans of the Organization. 4) Approve all creations of subsidiaries or controlled affiliates, mergers, consolidations, permanent or long-term affiliations and all joint ventures of the Organization involving capital investments in excess of $250,000. 5) Approve the sale or encumbrance of all or substantially all the assets of the Organization and all long-term debt in excess of $250,000. 6) Approve the Organization's annual operating and capital budgets and material amendments thereto. 7) Approve the dissolution of and all liquidations from the Organization.”

“See narrative for line 6”

“See narrative for line 6”

“The organization's management, including the Joint Commission CFO, Controller, Corporate Compliance & Privacy Officer, and General Counsel performed a detailed review of the Form 990 with the paid tax preparer. Once this level of review was performed, a thorough walk through was done with the JCR Finance Committee prior to filing. A copy of the Form 990 was provided to the entire Board of Directors prior to filing. A final filed public disclosure copy of the return will be placed on the Organization's website for the public once accepted by the IRS.”

“The policy states that any decision that could result in an actual or perceived conflict of interest must be avoided. All staff and board members review the policy on an annual basis and complete a Conflict of Interest questionnaire each year which, is designed to identify interests that could give rise to possible conflicts. Although many such potential conflicts are and will be deemed inconsequential, every individual of the Organization has an ongoing responsibility to disclose situations that involve personal, family, or business relationships that could be perceived as a conflict of interest. The interests identified are reviewed by the corporate compliance officer, general counsel, and governance committee and appropriately managed. All disclosures are pursued until 100% completed. Prior to any board or committee meeting, a member is required to disclose a conflict of interest or possible conflict of interest on any matter during a meeting and then not vote or use personal influence on the matter. The minutes of the meeting reflects that a disclosure was made and the member abstained from voting. At the beginning of each board or committee meeting a request is made to disclose any potential conflict of interest. The Compliance Officer monitors and reviews the conflict of interest policy as well as the responses to the questionnaires on an annual basis. The Organization also has available an independent hotline number for staff to report anonymously any potential conflicts during the year.”

“The CEO's compensation arrangement is subject to an independent board committee review and approval referred to as the Human Resources and Executive Compensation Committee. Joint Commission Resources engaged an independent compensation consultant to assist in determining compensation of its CEO. In setting the CEO's compensation, the organization's Human Resources and Executive Compensation Committee relies on recent compensation studies that provide compensation data for comparable position in other organizations to support its decision-making process. The Human Resources and Executive Compensation Committee adequately documents its compensation determinations and deliberations regarding compensation in its committee minutes on a timely basis. Each voting Committee member has been determined to be independent in accordance with intermediate Sanctions regulations and signs the Board's Conflict of Interest policy annually to ensure that he or she is independent. The Board engages in an active review of the compensation recommended by the Committee. In addition, the Board conducts an annual evaluation of the CEO. The process for determining Paula Wilson, CEO, compensation is undertaken annually.”

“OTHER OFFICERS: THE OTHER OFFICERS' COMPENSATION ARRANGEMENT IS SUBJECT TO AN INDEPENDENT BOARD COMMITTEE REVIEW AND APPROVAL REFERRED TO AS THE HUMAN RESOURCES AND EXECUTIVE COMPENSATION COMMITTEE. JOINT COMMISSION RESOURCES ENGAGED AN INDEPENDENT COMPENSATION CONSULTANT TO ASSIST IN DETERMINING COMPENSATION OF ITS OTHER OFFICERS. IN SETTING THE OTHER OFFICERS' COMPENSATION, THE ORGANIZATIONS' HUMAN RESOURCES AND EXECUTIVE COMPENSATION COMMITTEES RELY ON RECENT COMPENSATION STUDIES THAT PROVIDE COMPENSATION DATA FOR COMPARABLE POSITIONS IN OTHER ORGANIZATIONS TO SUPPORT ITS DECISION-MAKING PROCESS. THE HUMAN RESOURCES AND EXECUTIVE COMPENSATION COMMITTEES ADEQUATELY DOCUMENTED ITS COMPENSATION DETERMINATIONS AND DELIBERATIONS REGARDING COMPENSATION IN ITS COMMITTEE MINUTES ON A TIMELY BASIS. EACH VOTING COMMITTEE MEMBER HAS BEEN DETERMINED TO BE INDEPENDENT IN ACCORDANCE WITH INTERMEDIATE SANCTIONS REGULATIONS AND SIGNS THE BOARD'S CONFLICT OF INTEREST POLICY ANNUALLY TO ENSURE THAT HE OR SHE IS INDEPENDENT. THE BOARD ENGAGES IN AN ACTIVE REVIEW OF THE COMPENSATION RECOMMENDED BY THE COMMITTEE. IN ADDITION, AN ANNUAL PERFORMANCE EVALUATION OF THE OFFICERS IS CONDUCTED. The process for determining the organizations' other officers' compensation is undertaken annually FOR: Marwa Zohdy - vp, Jean Courtney - vp, Ying Qu - vp, and Joel Roos - vp. KEY EMPLOYEES: JOINT COMMISSION RESOURCES ENGAGES ITS HUMAN RESOURCES DEPARTMENT TO ASSIST IN DETERMINING COMPENSATION OF ITS KEY EMPLOYEES. IN SETTING THE KEY EMPLOYEES' COMPENSATION, THE HUMAN RESOURCES DEPARTMENT RELIES ON INDEPENDENT SURVEY AND COMPENSATION DATA FOR COMPARABLE POSITIONS IN OTHER ORGANIZATIONS AND/OR ON THE INTERNAL JOB EVALUATION SYSTEM TO SUPPORT ITS DECISIONMAKING PROCESS. THE KEY EMPLOYEES' COMPENSATION IS DETERMINED BY THE COMPENSATION POLICY AND GUIDELINES, WHICH ARE ESTABLISHED ANNUALLY BY THE HUMAN RESOURCES DEPARTMENT. INCENTIVE COMPENSATION FOR KEY EMPLOYEES IS REVIEWED BY THE ORGANIZATION'S HUMAN RESOURCES AND EXECUTIVE COMPENSATION COMMITTEE. THE PROCESS FOR DETERMINING THE ORGANIZATION'S KEY EMPLOYEES' COMPENSATION IS UNDERTAKEN ANNUALLY FOR ALL KEY EMPLOYEES.”

“The organization makes its governing documents and the form 990 available to the public upon request and in accordance with applicable laws. The conflict of interest policy and the Joint Commission Consolidated financial statements are made available to the public on the Joint Commission website. The organization also makes available on its website a public disclosure copy of form 990-t and form 990.”

“Contract Evaluation Services - Total Revenue: 340088, Related or Exempt Function Revenue: 340088, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Other - Total Revenue: 679842, Related or Exempt Function Revenue: 679842, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ;”

“(Continuation from Form 990 Part III, Line 1) Joint Commission Resources (JCR), a wholly controlled, not-for-profit affiliate of The Joint Commission, is a global, knowledge-based organization that disseminates information regarding accreditation, standards development and compliance, good practices, and patient safety and performance improvement. Joint Commission International (JCI), a division of JCR, has extensive experience working with public and private healthcare organizations, ministries of health, and local governments in more than 100 countries. JCI provides accreditation based on international standards, as well as third-party review and evaluation services. Examples of Projects in Support of JCR's Mission JCR's mission aims to help all healthcare providers no matter where they are on their journey in providing safe patient care. This resulted in the creation of JCI Navigator, designed to help organizations that we have not been able to serve with Accreditation. JCI Navigator is an online solution available to hospitals that are at the early stages of establishing quality and patient safety improvement initiatives.. In 2020, the Infection Prevention and Control Navigator module was shared with global organizations at no cost to assist in their efforts in building resilient infection prevention and control systems in the wake of the COVID-19 global pandemic. JCI-CRHG Academy of Hospital Management JCI has entered into a joint venture with China Resources Healthcare Group (CRHG), a healthcare organization in the People's Republic of China, to introduce JCI's knowledge system of quality and patient safety through training, education, and publications to educate local professionals in quality management, thus improving the quality and safety in Chinese healthcare organizations. The JCI-CRHG Academy of Hospital Management began offering education programs in China in 2016. Following this venture, in addition to the education offerings, the JCI-CRHG Academy of Hospital Management translated several JCR publications into simplified Chinese for release into the Chinese market. Free Resources JCR offers more than 125 free resources on quality and patient safety to customers and the public. These free resources, which are available on JCR's Web site, include articles published in JCR periodicals, books, whitepapers, toolkits, and checklists, on topics ranging from medication management to infection prevention and control to emergency management. In addition, JCR also partnered with Deloitte to develop and publish a free white paper entitled "COVID-19 Lessons Learned: A Resource for Recovery." The white paper catalogues a broad array of lessons learned and best practices identified during the period of March through August 2020. It lays out specific actions that healthcare organizations have taken to address a variety of issues, and provides access to guidance and tools that health care leaders can use to implement their own plans in pandemic management and recovery. JCR Primary Program Services JCR's primary program services are described below. Joint Commission International Accreditation JCI provides international standards and accreditation programs for international healthcare organizations. JCI standards and evaluation methods are designed to provide quantifiable benchmarks for patient care quality and improvement, to stimulate and support sustained performance improvement, and to provide a framework for risk reduction for international healthcare organizations. JCI offers accreditation programs for hospitals, academic medical centers, clinical laboratories, ambulatory care, long term care, home care, primary care, and medical transport organizations. JCI also provides disease-specific and clinical care program certification in programs such as primary stroke, heart failure, chronic kidney disease, HIV/AIDs, oncology care, palliative care, and diabetes care. JCI has accredited nearly 1000 healthcare organizations in more”

“(Expenses $ 7,611,989 including grants of $ 0)(Revenue $ 7,829,767) JCR offers a service called Continuous Service Readiness that provides ongoing guidance from a dedicated healthcare quality and safety expert to help organizations meet the standards to achieve and maintain Joint Commission accreditation and/or disease-specific care certification. In addition, JCR aids organizations that are preparing for CMS or state agency (on behalf of CMS) surveys. JCR (and internationally through JCI) offers seminars, conferences, webinars, and other education programs that address standards compliance, performance improvement, and patient safety, among other topics, for different healthcare settings. JCI also offers diploma- and certificate-style education programs, which are intensive, 3--12 month education programs, for infection control and quality management and patient safety staff within healthcare organizations. JCR offers most of its educational offerings with continuing education credits from ANCC, ACCME, and ACHE. (See Schedule O, Part III, Line 1, for further description)”

“OTHER FEES - Total Expense: 6958049, Program Service Expense: 6739643, Management and General Expenses: 218406, Fundraising Expenses: ; SHARED SERVICES FEE - Total Expense: 7029684, Program Service Expense: 1910347, Management and General Expenses: 5119337, Fundraising Expenses: ;”

“Return of net assets from parent company - The Joint Commission EIN 36-2229255 - 3360216; Change in unrecognized net defined benefit plan costs not yet recognized in periodic benefit cost - 131369; Change in net periodic pension costs other - -78786;”

“In March 2020, the World Health Organization declared the outbreak of a coronavirus to be a pandemic. In that same month, the United States of America declared a national public health emergency concerning the COVID-19 outbreak. Consequently, The Joint Commission enterprise suspended all on-site customer engagements. Shortly thereafter, virtual engagement models were created for accreditation, certification, education, consultative technical assistance, and high reliability training activities; these models of service delivery began to roll out in May, increasing in volume over the course of the year. In June, on-site engagements were restarted and continued through year-end on a limited basis. In addition, The Joint Commission enterprise aggressively reduced costs to mitigate the impact of lost on-site revenues. Despite these measures, the pandemic resulted in a significant operating deficit in 2020. Although vaccines for COVID-19 are currently available to the general public in the U.S. and around the world, it will take time for the vaccines to materially affect the spread of the virus and the outbreak could have a continued adverse impact on the organization. Management forecasts suggest it may take several years before the enterprise returns to historical revenue levels. To date, the organization has been able to sustain its operations through operating cash and has kept its reserves intact. Management continues to monitor the situation very carefully and is prepared to take any actions needed to keep the organization financially sound.”