Mercy Hospital Jefferson

“The member of MERCY Hospital Jefferson is Mercy Health East Communities, a supporting organization under Section 509(a)(3). The member of Mercy Health East Communities is Mercy Health.”

“Mercy Health, the member of Mercy Health East Communities, has reserve powers to appoint and remove all directors and officers for Mercy Hospital Jefferson.”

“The following corporate powers and responsibilities shall be reserved to the corporate member (and with regard to certain powers and responsibilities, to mercy health east communities as the corporate member of the corporate member): a. Approval of revisions to the mission, vision and operating values pursuant to which the corporation operates; b. Approval of any amendments to the articles of incorporation and these bylaws and any amendments to the organizational documents of any affiliate of the corporation; c. Appointment and removal of members of the board; d. Approval of the appointment and removal of the president of the hospital subject to the consent of mercy health east communities; e. Adoption of the strategic plan, goals, and objectives of the corporation; f. Adoption of the operating, capital and all other budgets for the corporation; g. Approval of the assignment, transfer, sale or lease of any of the assets of the corporation or any affiliate of the corporation in excess of one million dollars ($1,000,000) in any one or series of related transactions occurring within any twelve (12) month period; h. Authorization and approval of the incurrence of debt by the corporation or any affiliate of the corporation (other than debt incurred for the acquisition of goods that are acquired in the ordinary course of business) and to grant any security interests, place any encumbrances, enter into any covenants, and execute any documents and take any actions necessary or appropriate in connection with the incurrence of such debt; i. Approval of a plan of merger, consolidation or dissolution of the corporation or any affiliate; j. Approval of the lease, management or purchase of, or affiliation with, another hospital or hospital system, or health care facility or health care system by the corporation; and, k. To approve the creation, ownership or acquisition of, or affiliation with, any other organization by the corporation. L. Oversee, approve and monitor human resource programs, which shall promorte an organizational environment that: 1. Provides for the recruitment and rention of co-workers who are service oriented, compassionate, engaged, and who find meaning and purpose in working in a faith-based organization; 2. Enables people to relate to one another with respect and acceptance in a spirit of community; 3. Promotes co-worker partiicpation and voice in their work lives; 4. Gives co-workers a fair opportunity to devleop their skills and talents, and a means by which their contributions are recognized; 5. Provides co-workers with the materials and equipment to properly do their work;and, 6. Ensures co-worker safety and well-being.”

“The form 990 is prepared by an independent accounting firm, using information provided by the filing organization. A draft form 990 is reviewed by the filing organization's finance leadership. The draft form 990 is also reviewed by mercy health's tax department, to ensure accuracy and consistency with other related organizations' form 990s. After questions arising from the various reviews are addressed and incorporated into the form 990, a revised draft is provided to the filing organization's leadership team, including the cfo and ceo, for review. Once reviewed and approved by the filing organization's leadership team, the form 990 is provided to the board of directors for review; it is then signed and filed with the irs.”

“OFFICERS, DIRECTORS, KEY EMPLOYEES AND OTHER DISQUALIFIED PERSONS ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST QUESTIONNAIRE ANNUALLY AND DID SO IN THE NORMAL COURSE FOR THE YEAR ENDED JUNE 30, 2021. THIS PROCESS IS ADMINISTERED AT THE MERCY HEALTH LEVEL BY MERCY'S Corporate Compliance DEPARTMENT. THE QUESTIONNAIRES ARE REVIEWED WITH LEADERSHIP AT THE LOCAL LEVEL AND POTENTIAL CONFLICTS DISCUSSED AND RESOLVED. THE CONFLICTS AND THEIR RESPECTIVE RESOLUTIONS ARE SHARED AT THE MERCY LEVEL WITH A TEAM INCLUDING MERCY'S CHIEF FINANCIAL OFFICER, CHIEF COMPLIANCE OFFICER AND OTHER MEMBERS OF FINANCE, LEGAL AND HR. SUMMARY RESULTS ARE REVIEWED WITH MERCY'S STEWARDSHIP COMMITTEE OF THE BOARD OF DIRECTORS.”

“FOR THOSE CLASSIFIED AS OFFICERS (AND THUS DISQUALIFIED PERSONS), MERCY HEALTH (ultimate parent company) USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, ENGAGEMENT OF AN INDEPENDENT COMPENSATION CONSULTANT, AND REVIEW/APPROVAL OF COMPENSATION BY THE COMPENSATION COMMITTEE OF THE MERCY HEALTH BOARD. FOR THOSE CLASSIFIED AS KEY EMPLOYEES, THE ORGANIZATION USES THE FOLLOWING TO ESTABLISH THE COMPENSATION: EXTERNAL MARKET SALARY SURVEYS, EXTERNAL MARKET SALARY STUDIES, AND REVIEW/APPROVAL OF EXECUTIVE MANAGEMENT. COMPENSATION REVIEWS ARE COMPLETED ON AN ANNUAL BASIS, AND A REVIEW WAS COMPLETED DURING THE REPORTING YEAR.”

“Governing documents and financial statements are made available from time to time but are not published publicly; we are not required to make these documents available to the public. Financial results are available via request of copy of Form 990.”

“Average hours per week the hours per week disclosed in part vii is the average hours the listed person worked or devoted per week while employed or associated with the filing organization and related organizations (if applicable).”

“Transfer FROM (TO) AFFILIATES -34,571,764. Change in net restricted assets -2,000. Other changes in net assets -43,840. ROUNDING 1.”

“Audited Financial Statements THE FILING ORGANIZATION'S FINANCIAL STATEMENTS WERE INCLUDED IN MERCY HEALTH AND SUBSIDIARIES ANNUAL FINANCIAL STATEMENT AUDIT. MERCY HEALTH AND SUBSIDIARIES RECEIVED AN UNQUALIFIED OPINION FROM THE EXTERNAL AUDITORS FOR FISCAL 2021 (THE TAX YEAR CURRENTLY BEING REPORTED). HOWEVER, NO SEPARATE AUDIT OPINION WAS ISSUED ON THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION. THE ULTIMATE RESPONSIBILITY FOR OVERSIGHT OF THE FINANCIAL STATEMENT AUDIT AND SELECTION OF THE EXTERNAL AUDITOR LIES WITH THE STEWARDSHIP COMMITTEE OF THE MERCY HEALTH BOARD OF DIRECTORS. AUDIT RESULTS ARE COMMUNICATED TO THIS COMMITTEE.”

“Single audit act and 2 cfr 200 audit mercy health undergoes a consolidated 2 cfr 200 audit every year. This audit is underway for the fiscal year ending june 30, 2021 and will be completed by september 30, 2022. Each entity that receives federal funds during the year is included on the schedule of expenditures of federal awards (sefa) and is also included in the population included in the audit. If the filing entity received federal funds during the year ended june 30, 2021, it will be included on the mercy health consolidated sefa, and therefore, also included in the population included in the audit.”

“System limitations lawson erp software is the primary accounting software used by mercy health system, inc. And subsidiaries. The majority of the intercompany/related organization transactions are processed through lawson via intercompany journal entries. With the current design of the erp system, there are various limitations on the related organization information that can be extracted from lawson. Due to these limitations,most of the related organization activity for the filing organization has been classified on schedule r, part v, in lines p and q.”

“Independent Contractors Independent contractors for the filing organization are paid by Mercy Health (EIN 43-1423050). As such, all required Form 1099 and Form 1096 reporting is made for the entire health system (with limited exceptions) under the Mercy Health EIN.”

“W-3 filing salaries and wages with limited exceptions, the salaries and wages reported on form 990, part ix, line 7 represent an allocation of salaries and wages from a related organization. Most employees are paid by a related organization under a common paymaster arrangement. As such, all required payroll filing for these employees (including w-2 and w-3's) is reported under the related organization, mhm support services,ein 20-2553101.”

“Mercy hospitals east communities mercy hospitals east communities consists of mercy hospitals east communities st. Louis, ein 43-0653493, and mercy hospitals east communities washington, ein 43-1066883.”

“Early in 2020, the Mercy Health System was called to serve as the COVID-19 pandemic swept across the world. During FY 2021, it continued to be a difficult time for all healthcare providers. All Mercy facilities adjusted operations for the impacts of the pandemic which meant making changes to patient care areas and cancelling most of our outpatient procedures for periods of time. In addition, Mercy foundations and outreach ministries experienced limitations in fundraising for program and capital support efforts that assist the underserved in our communities. Mercy's total system net patient revenues were reduced during the year due to surges in the communities we serve. Mercy did receive funding from the Coronavirus Aid Relief and Economic Security Act ("CARES Act"). Mercy received CARES Act funding across various entities for the year ended June 30, 2021 and recognized a portion of this funding in other operating revenue. These funds helped to offset revenue losses and additional expenses incurred due to the pandemic; however, these funds fell short of the system losses experienced since the start of the pandemic. The impact of COVID-19 was significant to our communities and coworkers as unemployment rates soared and Mercy acted quickly to provide continuous care to patients and the community. Mercy continues to monitor the impacts of the pandemic both to the health system and the communities served as we continue to provide assistance and maintain access to care within our communities.”