Aspirus Medical Group Inc.

“The parent organization, aspirus, inc. Is the sole member of the organization.”

“See explanation for form 990, part vi, line 7b.”

“The following actions must be approved by the sole member of the organization, aspirus, inc.: 1) change or amend the articles of incorporation or by laws, 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, and 5)approval of annual operating and capital expenditure budgets, strategic and long range plans.”

“The accounting department accumulates all 990 and 990-t information, including the ubit calculations. These documents are reviewed by the cfo. The 990 and the 990-t are 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, officers, 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 documented in the meeting minutes.”

“For the purposes of determining compensation, the filing organization, aspirus clinics, inc. Relied on related organizations to establish 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.”

“Some officers, directors, and key employees also provided service to other related organizations other than aspirus clinics, inc. These hours are reflected in line 2 of column b.”

“Contract/purchased services: program service expenses 4,421,960. Management and general expenses 222,528. Fundraising expenses 0. Total expenses 4,644,488. Corporate allocation: program service expenses 0. Management and general expenses 4,621,298. Fundraising expenses 0. Total expenses 4,621,298. Lab purchased services: program service expenses 1,666,617. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,666,617. Physician contract services: program service expenses 3,178,707. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,178,707. Other services: program service expenses 320,638. Management and general expenses 0. Fundraising expenses 0. Total expenses 320,638. Consulting fees: program service expenses 0. Management and general expenses 874,273. Fundraising expenses 0. Total expenses 874,273.”

“Additional postretirement benefit obligation 16,965.”

“The audit committee of the board of directors of aspirus, inc., the parent organization, assumes the responsibiilty for the oversight of the audit of the financial statements and selection of the independent accountant. There was no change in this process in the past year.”