Progressive Health Systems

“Family and business relationships dr. Smalley and curtis eeton have a business relationship. All board members and officers have a business relationship with each other as a result of all serving as board members or officers of pekin prohealth, inc., a for-profit affiliate of the organization.”

“Delegating authority the board of directors has contracted with quorum health resources (qhr) to serve as a management corporation to assist in the leadership of the hospital. Qhr provides progressive health system with leadership via the ceo along with other consulting services on financial and staffing needs.”

“Process to review 990 form 990 was reviewed by the ceo, cfo, and controller. Prior to filing, the 990 was provided to the board of directors electronically, and reviewed independently by each member. Questions by board members were handled on an individual basis with management.”

“Organization's policy for monitoring compliance periodic surveys are performed requesting disclosures of conflicts of interest. If it is determined that a conflict exists, the employee will be required to relinquish either the outside business interest/arrangement or his/her phs employment. The conflict of interest policies apply to individuals who serve as trustees, managers (department heads and above), chiefs of clinical departments, and any other employee, medical staff member or non-employed contractor acting in a managerial or clinical leadership capacity deemed by an administrative officer or chief of service to be in a position to influence decision-making for the organization. Disclosure will occur through an annual conflict of interest disclosure statement and the disclosure of other actual or potential conflicts as they arise. Potential conflicts of interest should be reported to an immediate supervisor, who, in turn, is obligated to report the matter to the corporate compliance officer. The corporate compliance officer is expected to investigate reported conflicts and make a report to the compliance committee on a quarterly basis. All board members are required to report any potential conflicts of interest to the board or an applicable committee of the board. After excusing the member with a potential conflict, the remaining members of the board or committee will discuss and decide if a conflict exists, board members found to have a conflict are required to excuse themselves from any discussions regarding a transaction related to a potential conflict and are prohibited from voting on any such matter.”

“Compensation review the ceo is employed by an outside management company.”

“Compensation review human resources and the ceo review the compensation of other officers and key employees of the organization on an annual basis.”

“Disclosure the governing documents, conflict of interest policy, and financial statements are not made available to the public.”

“Change in oversight or selection process during the tax year. There is no longer a committee that oversees the audit and compilation of its financial statements. The financial statements are included in the board packet monthly and the cfo presents the financial data in the board meeting monthly.”

“Form 990, part vi, section b, line 16b the organization does not have a written policy or procedure in place for evaluating its participation in joint venture arrangements with taxable entities. During the year, the organization's subsidiary entered into a joint venture agreement with a taxable entity. The operating agreement of the joint venture contains provisions which safeguard the subsidiary's tax exempt status by prohibiting changes in purpose or operations which would be inconsistent with, or in violation of, tax-exempt status under sec. 501(c)(3) of the internal revenue code.”