Harbor Beach Community Hospital

“There is an executive committee that consists of the chairman, vice chairman, president and secretary of the board. This committee may act in the power of the corporation during periods between board meetings. The executive committee was inactive in 2024.”

“The sole member is harbor beach healthcare, which has all of the rights accorded by law to members of a michigan nonprofit corporation.”

“The board of trustees are elected by the sole member.”

“The following actions may be taken by the corporation and its board of trustees only upon prior written approval of the corporate member: a. Adoption, amendment, or other modification of the bylaws or articles of incorporation of this corporation. B. Any merger, consolidation, reorganization, or other change in the corporate structure of this corporation, or the creation of any corporate subsidiary thereof. C. The participation of this corporation in any partnership, limited partnership, corporation, association, or other form of joint venture or shared service with any other party or organization. D. Creation, incurrence, or assumption of indebtedness, commitments, or any contractual obligation with respect to borrowed money, guarantees, endorsements, leases, or other type of direct or contingent liabilities, in excess of $150,000 for any one item. E. Creation, incurrence, or assumption of any mortgage, pledge, security agreement, encumbrance, or other lien of any kind in any property or assets of this corporation. F. Acquisition, by purchase, lease, or by any other method, of any real estate, capital improvements, or equipment in excess of a value of $150,000 for any one such item. G. Any change in the services or programs of the corporation, including the termination of existing services, the addition of new services, or any major expansion or contraction of existing services or programs. H. Adoption, or formal amendment or modification of the annual operating and capital budgets of the corporation. I. Adoption, amendment, or modification of the mission and goals of the corporation, and its long range or short range strategic plans.”

“The form 990 was reviewed by management and the board of trustees prior to filing.”

“It is the policy of harbor beach community hospital (hbch) and its physicians offices to provide a mechanism for any board of trustee member, administrative leadership member or department director to identify and report any actual or potential conflict of interest that may affect the conduct of business of harbor beach community hospital and its physicians offices. Duty to disclose in connection with any actual or possible conflicts of interest, an interested person must disclose the existence of his or her financial interest and all material facts to the directors and members of committees that have board delegated powers considering the proposed transaction or arrangement. Disclosure of conflicting interests every person covered by this policy shall submit in writing to the hospital president a conflict of interest disclosure statement listing all financial and conflicting interests. Each statement will be resubmitted with any necessary changes each year or as any additional conflicting or financial interests arise. The chairman of the board and the vice-chairman of the board shall become familiar with all such disclosure statements in order to guide his conduct should a conflict arise. Violations of the policy if the board or committee has reasonable cause to believe that a member has failed to disclose actual or possible conflicts of interest, it shall inform the member of the basis for such belief and afford the member an opportunity to explain the alleged failure to disclose. If, after hearing the response of a member and making such further investigation as may be warranted in the circumstances, the board or committee determines that the member has in fact failed to disclose an actual or possible conflict of interest, it shall take corrective action. Periodic reviews to ensure that harbor beach community hospital and its physicians offices operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted.”

“Hbch participates in the hospital council of east central michigan's annual survey which includes ceo compensation. This is reviewed by our the executive director of human resources on an annual basis. The compensation was then approved by the board of trustees. The last full compensation review was performed in 2013. Since then, forms 990 of other organizations have been used for comparability data. The process included review and approval by independent persons, comparability data and contemporaneous substantiation in 2024.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Professional fees - medical: program service expenses 1,557,839. Management and general expenses 187,656. Fundraising expenses 0. Total expenses 1,745,495. Purchased services: program service expenses 1,736,787. Management and general expenses 475,300. Fundraising expenses 0. Total expenses 2,212,087. Collection fees: program service expenses 5,425. Management and general expenses 11,368. Fundraising expenses 0. Total expenses 16,793.”

“The process for oversight and selection of the independent accountant has not changed from the prior year.”