Hackley Hospital Self Insurance Professional Liability Trust

“The sole member of hackley hospital self insurance professional liability trust is mercy health partners. See line 7 for additional information.”

“Mercy health partners is the sole member of hackley hospital self insurance professional liability trust. Mercy health partners has the right to appoint all persons to the board of directors of hackley hospital self insurance professional liability trust.”

“As sole member, mercy health partners must approve certain decisions of the governing body, including the stratetic plan, annual capital plan, and annual operating budget. Mercy health partners must also approve significant changes such as merger, dissolution, sale of assets in excess of certain limits, and modifications to governing documents.”

“Prior to filing, the form 990 for hackley hospital self insurance professional liability trust is reviewed by management. Each member of the board receives a copy of the return in its final form before it is filed with the internal revenue service.”

“Hackley hospital self insurance professional liability trust has adopted trinity health's governance policy no. 1, which sets forth the organization's conflict of interest policy and processes. It applies to all "interested persons" of hackley hospital self insurance professional liability trust, which includes directors, principal officers, and members of committees with board-delegated powers. Interested persons are expected to discharge their duties in a manner the person reasonably believes to be in the best interests of hackley hospital self insurance professional liability trust and to avoid situations involving a conflict of interest. On an annual basis, interested persons are required to complete a conflict of interest disclosure statement and to affirm their receipt of the conflict of interest policy, compliance with its requirements, and agree to notify the organization of changes impacting their annual disclosure in accordance with the policy. The annual disclosures are provided to internal legal counsel and the integrity and compliance officer, from which legal counsel prepares a report for the board chair and ceo. A summary of potential conflicts is reviewed with the board of directors of hackley hospital self insurance professional liability trust (or a delegated committee of the board) on a yearly basis. Interested persons are required to make full disclosure to hackley hospital self insurance professional liability trust of any financial or business interests that might result in or have the appearance of a conflict of interest. The board of directors of hackley hospital self insurance professional liability trust (or a delegated committee of the board) is responsible for the review of transactions to determine whether an actual conflict of interest exists. In the event of an actual conflict, the board (or a delegated committee of the board) will either avoid the conflict or appropriately scrutinize the transaction to ensure it is in the best interests of hackley hospital self insurance professional liability trust. Interested persons are required to recuse themselves from discussion and voting on matters involving a conflict of interest. The policy further addresses the proper documentation of the proceedings and potential disciplinary and corrective action for violations of the policy. The policy is available to the public upon request.”

“Questions 15a and 15b are answered "no" because the compensation for hackley hospital self insurance professional liability trust's officers is established by trinity health, a related organization. In establishing certain officers' compensation, trinity health follows a process and policy that is intended to mirror the irc section 4958 guidelines for obtaining a "rebuttable presumption of reasonableness" with regard to compensation and benefits. As part of that process, the compensation and benefits of certain officers of hackley hospital self insurance professional liability trust are reviewed at least annually by the trinity health board or the trinity health human resources and compensation committee (hrcc) of the board, authorized to act on behalf of the board with respect to certain compensation matters. As part of its review process, the hrcc retains an independent firm experienced in compensation and benefit matters for not-for-profit healthcare organizations to advise it in the determinations it makes on the reasonableness of proposed compensation and benefits arrangements.”

“Hackley hospital self insurance professional liability trust is a subsidiary organization in the trinity health system. Trinity health makes certain of its key documents available to the public on its website, www.trinity-health.org, in the "about us" section. In this section, the consolidated audited financial statements are publicly available. Hackley hospital self insurance professional liability trust's governing documents and conflict of interest policy are available upon request.”

“Sr. Mary persico, ihm is a member of the sisters, servants of the immaculate heart of mary. Having taken a vow of poverty, sr. Mary did not receive compensation for the services she provided as executive vice president mission integration to trinity health, except for insurance benefits of $12,429. Instead, a total of $948,956 was paid by trinity health directly to the congregation of the sisters, servants of the immaculate heart of mary for sr. Mary's services.”

“Hackley hospital merged into mercy health partners on january 1, 2014. Prior to that date, hackley hospital had provided funds to maintain a program of self-insurance for all professional and general liability risks in an irrevocable trust. These funds have been held in a bank trust account and are invested primarily in mutual funds. Hackley hospital has made provisions for the estimated losses in connection with these professional and other liability claims for incidents occurring before the merger, for which amounts can be reasonably estimated, including provisions for claims incurred but not yet reported. As of june 30, 2014, the actuaries have concluded that there are no longer any claims incurred but not yet reported. Therefore, the trust was dissolved on 5/23/16.”

“Cash distribution to supported organization to dissolve the trust -1,558,915.”

“Hackley hospital self insurance professional liability trust's financial statements were included in the fy16 consolidated financial statements of trinity health, which were audited by an independent public accounting firm.”