Decatur Memorial Hospital

“David tyrolt roy mosser, jr. Director director business relationship david tyrolt timothy stone, jr. Director officer business relationship david tyrolt john funk director director business relationship david tyrolt thomas kowa director director business relationship david tyrolt kenneth smithmier director director business relationship david tyrolt jack o'riley director director business relationship david tyrolt john ridley director officer business relationship roy mosser, jr. David tyrolt director director business relationship roy mosser, jr. Timothy stone, jr. Director officer business relationship roy mosser, jr. John funk director director business relationship roy mosser, jr. Thomas kowa director director business relationship roy mosser, jr. Kenneth smithmier director director business relationship roy mosser, jr. Edward elliot director director business relationship paula eissfeldt kenneth smithmier director director business relationship john funk david tyrolt director director business relationship john funk roy mosser, jr. Director director business relationship john funk timothy stone, jr. Director officer business relationship john funk thomas kowa director director business relationship john funk kenneth smithmier director director business relationship john funk edward elliot director director business relationship thomas kowa david tyrolt director director business relationship thomas kowa roy mosser, jr. Director director business relationship thomas kowa timothy stone, jr. Director officer business relationship thomas kowa john funk director director business relationship thomas kowa kenneth smithmier director director business relationship tomas kowa edward elliot director director business relationship kenneth smithmier david tyrolt director director business relationship kenneth smithmier roy mosser, jr. Director director business relationship kenneth smithmier paula eissfeldt director director business relationship kenneth smithmier john funk director director business relationship kenneth smithmier thomas kowa director director business relationship kenneth smithmier robin king director director business relationship kenneth smithmier edward elliot director director business relationship edward elliot kenneth smithmier director director business relationship edward elliot john funk director director business relationship edward elliot thomas kowa director director business relationship edward elliot roy mosser, jr. Director director business relationship robin king kenneth smithmier director director business relationship john ridley david tyrolt officer director business relationship jack o'riley david tyrolt director director business relationship timothy stone, jr. John funk officer director business relationship timothy stone, jr. Roy mosser, jr. Officer director business relationship timothy stone, jr. Thomas kowa officer director business relationship timothy stone, jr. Edward elliott, md officer director business relationship kenneth smithmier timothy stone, jr. Director officer business relationship timothy stone, jr. David tyrolt officer director business relationship timothy stone, jr. Kenneth smithmier officer director business relationship edward elliott, md timothy stone, jr. Director officer business realtionship”

“The sole corporate member of the organization is illinois health and science, an illinois not-for-profit corporation that has been recognized as being described in sec. 501 (c)(3), irc.”

“As the sole corporate member of dmh, illinois health and science has the right to approve all directors of dmh, and to remove any director so approved. All directors of illinois health and science are also directors of dmh.”

“The dmh board of directors generally oversees and directs all activities, assets and operations of dmh, subject to the rights and authority specifically reserved to illinois health and science, as the sole corporate member, in the dmh bylaws. These rights pertain to the appointment and removal of directors, election of the president and treasurer, nomination of other officers, amendment of articles and bylaws, approval of budgets and long range plans, approval of any merger or consolidation, approval of significant transactions, approval of dissolution, creation of any subsidiaries or affilitates, and appointment of the independent auditor.”

“The form 990 and related schedules are reviewed by the accounting department of the hospital and by the chief financial officer prior to filing. Further, a copy of the form 990, along with an explanatory note, is provided for review to the board via an intranet site. The form 990 is also reviewed and discussed at a regularly scheduled board meeting prior to filing.”

“Annually, all members of the board of directors, officers and key employees are required to submit a conflict of interest disclosure to the ceo. A list of potential conflicts is prepared and is available for reference prior to each board and committee meeting. The cfo's office monitors and periodically reviews transactions between the organization and board members or entities with which they are affiliated.”

“The board of directors of illinois health and science (the sole corporate member of dmh) has adopted an executive compensation policy and procedure setting forth the authority and process regarding compensation determinations for the top executives of dmh and its affiliates (the ceo and five other executives). Pursuant to the policy, the board has delegated to the executive committee the responsibility to review independent market data, assess the comparability of such data, and make recommendations to the board regarding compensation proposed to be paid. In carrying out their respective compensation-related responsibilities, the board and executive committee exclude any person deemed to have a conflict of interest within the meaning of applicable treasury regulations (including any physicians employed by dmh or on its medical staff). As provided in the policy, the executive committee conducts an in-depth total compensation analysis usually every two years with the assistance of an independent nationally-recognized compensation consulting firm. In the off-years between in-depth reviews, the committee typically has obtained from its consulting firm an updated assessment to confirm continued comparability with market data. Consistent with the foregoing, in august 2012, dmh obtained such an update report from its independent compensation consulting firm, covering the following individuals: smithmier (ceo), stone (coo), peacock (former cfo), zia (vpma), fahey (cno), and ridley (vpps). All determinations of the board and executive committee are thoroughly and timely documented in appropriate minutes and supporting materials.”

“See response to form 990, part vi.b, line 15a above.”

“The governing documents, conflicts of interest policy and financial information of dmh are available to the public upon specific request to dmh administration.”

“Form 990, part i, item 1 and form 990, part iii, item 1: dmh's mission is to improve the health of the people of central illinois, relying on its core foundations of committed physicians, constructive culture, responsible governance, process innovation, managerial competence, and engaged employees. With a history dating back to 1916, dmh today encompasses twelve state-of-the-art centers of excellence which focus on the cutting edge of medicine today and provide the community with award-winning health care. Approximately 250,000 persons reside in dmh's service area, including substantial numbers of medicare and medicaid beneficiaries, as well as persons who do not qualify for either program and thus seek care pursuant to dmh's financial assistance (charity care) program. The local community has been hit hard by the recent economic declines. In response to these conditions, dmh has expanded its threshold for provision of financial assistance to six times the federal poverty guidelines; for these and other patients, dmh offers sliding scale discounts and extended payment terms in an effort to ensure that patients are able to obtain necessary medical care. During the fiscal year, dmh provided significant free or discounted services to patients qualifying for financial assistance as well as other forms of community benefit programs, grants and services. See schedule h for more detail.”

“Education and outreach: dmh has concluded that, to fulfill its mission of improving health, it must become involved in the education, awareness and prevention of disease and illness that negatively impact health status. In an effort to give community residents the tools necessary to make healthy lifestyle decisions, dmh seeks out opportunities and actively involves itself in the local community, through measures ranging from programs for local schools to dmh's popular "prime time" program for seniors. In recent years, dmh has participated in various community health needs assessment initiatives, as a result of which dmh has identified significant concerns such as access to primary care physicians and specialists; heart, lung, & stroke screenings; chronic obstructive pulmonary disease; obesity; diabetes; indigent outpatient longitudinal care; oncology screenings; women and children's health; and senior health and wellness. With the leadership of a multidisciplinary community benefits committee, including participation by a diverse group of community representatives, dmh has taken a primary role in confronting these issues.”

“Book/tax diff. In inc. Frm partnerships (increase) 185,408 change in val. Of assets held in trust (increase) 552,474 transfer of capital from affiliate (increase) 39,903 transfer of capital from affiliate (decrease) 36,831,437 transfer of capital from affiliate (decrease) 295,000 change in minimum pension liability (decrease) 850,229 the net result of all of these other changes in net assets is a decrease of 37,198,881.”

“Decatur memorial hospital was included in the consolidated audited financial statements of illinois health and science and affiliated organizations.”