Aspirus Eagle River Hospital Inc.

“In august 2021, the organization's parent became aspirus inc, who is the sole parent member of the organizations reported on schedule r attached. The first month of the fiscal year (july) the organization was a part of a related party structure with the overarching parent being ascension health alliance (45-3358926). The direct parent being ministry health care inc. (39-1490371) who is owned by ascension health (31-1662309) which is owned by ascension health alliance (45-3358926). The bylaws and articles were amended to reflect this change.”

“Effective august 1, 2021, the parent organization, aspirus, inc., is the sole corporate member of the organization. Prior to that, ministry health care inc was the corporate member. Further details are provided throughout the form.”

“The board of directors is comprised of ten directors. There shall be three classes of voting directors: the aspirus member class, community class, and the provider class. No less than six independent community class directors, consisting of three nominated by the nominating committee and three nominated by aspirus, inc. With consideration to input from the corporation's board, and elected by aspirus, inc., two aspirus member class directors nominated and elected by aspirus, inc., two provider class director from each hospital, consisting of physicians in the active category of the medical staff at the hospital, nominated by the corporation's board and elected by aspirus, inc.”

“The following actions must be approved by the sole member of the organization, aspirus, inc.: 1) change or amend the articles of incorporation or bylaws; 2) change the mission, purpose, or scope of the corporation; 3) ratification or removal of directors or officers; 4) change the formula or methodology for determining physician compensation; 5) approval of annual operating and capital expenditure budgets, strategic and long-range plans.”

“The accounting department accumulates all 990 information. These documents are reviewed by the cfo. The 990 is reviewed by other senior management prior to submission to the internal revenue service and are made available to the board of directors through director's desk or other means of electronic retrieval.”

“Board members and key employees are required to sign annual conflict of interest statements and all managers are required to sign biannual conflict of interest statements. The organization's ceo and board chair review the statements and highlight potential conflicts. The board determines on a case by case basis any actions required. Individuals are not permitted to vote on any transaction where a conflict has been determined to exist. All conflicts and proceedings are noted in the meeting minutes.”

“For the purposes of determining compensation, aspirus, inc. Relied on related organizations to establish the compensation of the ceo, other officers, and key employees. The related organizations used the following practices for establishing compensation for such individuals: compensation committee, independent compensation consultant, written employment contract, compensation survey or study, and approval by the board or compensation committee.”

“The organization does not make its governing documents, conflict of interest policy, nor its financial statements available to the public.”

“Contract nursing and other labor: program service expenses 309,525. Management and general expenses 194,980. Fundraising expenses 0. Total expenses 504,505. Other fees: program service expenses 474,289. Management and general expenses 403,981. Fundraising expenses 0. Total expenses 878,270. Medical director fees: program service expenses 40,308. Management and general expenses 0. Fundraising expenses 0. Total expenses 40,308. Food service fees: program service expenses 13,217. Management and general expenses 0. Fundraising expenses 0. Total expenses 13,217. Housekeeping fees: program service expenses 0. Management and general expenses 48,295. Fundraising expenses 0. Total expenses 48,295. Lab fees: program service expenses 161,769. Management and general expenses 0. Fundraising expenses 0. Total expenses 161,769.”

“Net asset adjustment from acquisition of new parent -349,331.”

“The hospital relied on their new parent member, aspirus inc, in the selection of the independent auditors. They were included in their consolidated audit.”