Freeman Neosho Hospital Inc

“Common paymaster arrangement & salaries: a related organization, freeman health system (fhs), files all w-2's on behalf of the organization. The amount of w-2's filed for the year on part v, line 2a, is the amount of w-2's filed on behalf of freeman neosho for those that work primarily for freeman neosho. The amount listed in column d of part vii, section a, as paid by the organization was paid through w-2's filed by fhs, but has been shown in column d for the individuals who work primarily for freeman neosho. Additionally, the applicable amounts were listed on part ix, line 5 as officer compensation from the organization. Other salaries and wages on part ix, lines 7 through 10, are the amount of salaries and benefits allocated to the organization for those employees who work primarily for freeman neosho.”

“Members/stockholders/other persons: freeman health system is the sole member of the organization. Directors and officers of the organization are appointed and removed by the organization's sole member. The board of freeman neosho hospital must obtain approval from the organization's sole member, freeman health system, to perform certain actions. These actions include: all governance decisions of interest to the member affecting the operation of the corporation; appointment review and removal of the administrator; development and adoption of strategic plans, budget and fiscal policy; approval of any financing or refinancing plans; any investment of the organization's funds; appointment and removal of directors of subsidiaries; amendment of the articles of incorporation and bylaws or any policies, rules, and regulations pertaining to the medical staff; the sale, lease, or exchange of all or substantially all of the organization's property or assets; taking any action that would affect the existence of the corporation, including merger, consolidation, affiliation, or dissolution; adoption or amendment of any corporate compliance program; and any other matter that by law requires the approval of members of a nonprofit corporation.”

“Review of form 990: the form 990 is prepared by an independent accounting firm based on the audited financial statements and information provided by the accounting department of the organization. Prior to filing, a draft of the form 990 is reviewed by members of top management. Once a final draft is ready, a power point presentation is made to the board members at the board of directors meeting to explain the 990 and its uses. The board reviews the document for key information included. Paper copies are made available to the board members at their request.”

“Monitoring compliance with conflict of interest policy: the conflict of interest policy is reviewed by the board of directors each year in april. The board members are asked to sign a new conflict of interest policy and list any possible conflicts. This information is reviewed and maintained in the administrative offices. If a board member encounters a transaction that would cause a possible conflict of interest, a form detailing the transaction is completed and submitted to the board for review and approval. Corporate officers and key employees are also required to annually disclose conflicts of interest.”

“Freeman health system compensation review: executive compensation philosophy & strategy i. Key principles freeman health system ("fhs") desires to ensure that its executive compensation program is competitive, fair, and equitable; compliant with regulatory guidelines; and representative of market best practices. Key principles that guide fhs's executive compensation decision-making process include: -executive compensation programs will support fhs's mission, values, strategic direction, and tax-exempt status. -fhs competes in a national market for its executives and thus will consider pay practices that are representative of the industry. -the relative pay levels of fhs executives will over time reflect both individual and organizational performance. -fhs intends to establish the rebuttable presumption of reasonableness under irs intermediate sanctions regulations. Thus, executive compensation programs and decisions will be approved, in advance of their implementation by the executive compensation committee (hereafter the "committee") of the board of directors: *the committee is comprised of members of the board of directors, who are independent of fhs's management, have no personal interest in the compensation arrangements, are not related to, or under the control of any individual whose compensation arrangement is being reviewed and have no material business relationship with fhs. *the committee will rely upon appropriate, independent comparability data to support its decision making process. *the committee will adequately document its deliberations, decisions, and actions on a timely basis. Ii. Primary program components fhs's executive total compensation program consists of the following components: -base salary -annual at risk compensation -standard all employee benefits -supplemental benefits and perquisites -severance annually, the committee will direct the review of the components of the executive compensation program and approve program modifications as appropriate. The committee may also authorize unique program components which support the achievements of fhs's mission. Iii. Market comparators fhs will consider a national peer group of healthcare organizations comparable to fhs in size (i.e., net revenues) and complexity to determine the market values for each of its executive positions. This peer group will primarily be comprised of not-for-profit healthcare organizations (but for-profit organizations may be considered selectively) for functionally comparable positions as reported in surveys conducted by independent firms. -cash compensation the following organizations/markets are the primary comparators for compensation purposes: *system level executives: health systems of comparable size to fhs, based on net revenue. These will be based on national healthcare labor markets. *hospital level executives: hospitals of comparable size to the fhs entity, based on net revenue. These will be based on national healthcare labor markets. *other executives: organizations of comparable size in relevant market segments such as medical group practices, home health, and the like. These will be based on national healthcare labor market. -executive benefits fhs will develop and administer executive benefit (i.e., standard benefits, supplemental executive benefits, and perquisites) plans that are based on national healthcare industry market norms. Iv. Market position targets fhs has established a target market position for each of the components of its executive total compensation program. -base salaries: fhs will manage its executives' base salaries around the 50th percentile of base salaries paid in the market. Salaries will vary from the 50th percentile based an executive's experience and performance. For example: *executives who are new to the organization and/or have limited or no prior executive-level experience should have salaries that are 80 to 90 percent of the 50th percentile. *experienced executives (with approximately”

“Freeman health system compensation review (continued): executive compensation committee charter this executive compensation committee charter was adopted by the board of directors (the "board") of freeman health system (hereafter "fhs") on april 25, 2008. This charter applies to fhs and all of its business entities, including freeman neosho hospital, ozark center and the freeman foundation (hereafter the "system"). This charter is a component of the flexible framework within which the board, assisted by its committees, directs the affairs of fhs. While the charter should be interpreted in the context of all applicable laws and regulations, as well as in the context of fhs's articles of incorporation and bylaws, it is not intended to establish by its own force any legally binding obligations. I. Purpose the executive compensation committee (hereafter the "committee") is authorized to act on the board's behalf in (i) determining appropriate compensation for system executives and other disqualified persons as defined in the irs intermediate sanctions regulations; (ii) evaluating system executives' and other disqualified persons' cash compensation plans, policies, and programs; (iii) reviewing benefit plans for system executives and other disqualified persons; and (iv) verifying that compensation information is appropriately and fully disclosed. -a disqualified person: is any person who is or was in a position to exercise substantial influence over the affairs of the applicable tax-exempt organization. It is not necessary that the person actually exercise substantial influence, only that the person be in a position to do so. -for purposes of this charter, "executives" are defined as system executives and other disqualified persons validated by the committee. In discharging its role, the committee is empowered to investigate any matter brought to its attention with access to all books, records, facilities, and personnel of the system. It has the authority to retain outside advisors (e.g., legal counsel, compensation consultants, or other experts) and will receive adequate funding from the system to engage such advisors. It shall have the sole authority to retain, compensate, terminate, and oversee its advisors, who shall be accountable ultimately to the committee. To support the committee, a timetable and resource book will be developed containing the necessary data, information, and documents the committee will need to carry out its duties. The resource book will be distributed to the committee in advance of its meetings and fhs will maintain these books at its corporate office. The committee also will receive training in compensation plan design and administration, including legal and regulatory issues (as needed). Ii. Committee membership the committee is a standing committee of the board. In accordance with the corporate bylaws, it shall consist of at least three, but not more than five, members of the board. Each committee member has been determined by the board to be "independent" in accordance with irs intermediate sanctions regulations. At the start of the year, each member will review the organization's conflict of interest policy to ensure he or she has no conflict of interest and is "independent". If a real, potential, or perceived conflict of interest is identified, the committee member will review the issue with the committee chair and legal counsel to determine the appropriate action. In addition, no director may serve on the committee unless he or she is a "non-employee" member of a system board. The fhs board will appoint a committee chair to convene all sessions, set agendas for meetings, and determine the information needs of the committee. Before debating and voting on any compensation arrangement, each member shall determine whether he or she has a conflict of interest regarding the compensation arrangement. Any member with a conflict of interest regarding a particular compensation arrangement or transaction sha”

“Document disclosure: the organization's governing documents, conflict of interest policy, and financial statements are not made available to the public.”

“Organization's vision: vision - to be the leading provider of patient centered, physician directed healthcare in an environment of compassion and trust, supported by dedicated employees with a desire to provide excellence in care and service.”

“Program services: freeman health system, not-for-profit, community-owned, and locally governed by a volunteer board of directors, provides full-service healthcare to southwest missouri, southeast kansas, northeast oklahoma, and northwest arkansas. A three-hospital health system, freeman provides comprehensive services including cancer care, heart care, orthopaedics, neurosurgery, women's services, and behavioral healthcare. Freeman accepts medicaid and medicare patients and offers charity care and payment plans, providing a safety net to a third of the local population with household incomes below $25,000. Freeman asks all employees and volunteers to embrace the mission of improving the health of the communities served through contemporary, innovative, quality healthcare solutions. The freeman medical team, which includes more than 300 physicians representing 60 specialties, uses the latest techniques, best practices, and technologies to provide lifesaving medical care, providing constituents with the healthcare they need right in their own back yard. Joplin-area patients do not have to travel to big cities to receive heart interventions, cardiothoracic surgeries, neurosurgeries, pain therapies, intensive care, trauma care, and advanced diagnostic services. The close-to-home availability of progressive healthcare services eases stress on patients, for whom travel can be uncomfortable, and their families, for whom travel can present a great financial burden. Freeman fast facts fy 2014 (joplin & neosho combined) - outpatient registrations: 384,436 - emergency/trauma/urgent care visits: 108,365 - freeman occumed visits: 46,201 - admissions: 20,897 - surgical procedures: 11,197 - births: 2,455 - babies in neonatal intensive care unit: 334 obesity and diabetes are growing problems with serious health implications. According to the missouri department of health and senior services, 12.6 percent of southwestern missouri residents have diabetes. To address the problem and provide education to the community, freeman diabetes education hosted the fifth annual diabetes expo in november 2013. It featured freeman endocrinologist dr. Allison galloway, who discussed new diabetes medications for treating type 2 diabetes, as well as diabetes-related product demonstrations and samples. Another community benefit related to diabetes and obesity, freeman hosted an american diabetes association alert day event in march 2014. During this free event, freeman diabetes educators administered a free diabetes risk assessment to any member of the public who wanted one. Participants received preventative tips and education. Additionally, the event raised awareness about diabetes and its impact on health. To help ensure the community has the physicians it needs, freeman brought 27 new physicians into the community during 2013 and 12 in 2014, providing a great benefit, in terms of both healthcare and economics. According to the missouri hospital association, family physicians make an economic impact of more than $1 million each year on the communities they serve. For 23 years, freeman orthopaedics & sports medicine and freeman rehabilitation services have provided free annual preseason physical exams for hundreds of athletes attending area schools. More than 75 volunteers, including doctors, nurses, therapists, and other clinicians, assist with the exams, scheduled at specific times throughout the year. These free preseason physicals provide comprehensive evaluation and assessment to athletes participating in a sanctioned sport in a school-based program; through the area's parks and recreation departments, ymcas, or local leagues; or in training to compete in a specific event, such as a marathon or triathlon. A huge community benefit in fy 2014, this program helped hundreds of families by providing required medical examinations free of charge. On a related note, freeman began offering free saturday morning sports injury clinics in fy 2014. Thanks to dr. Robe”

“Tax-exempt bond liability: the tax-exempt bond liability being reported is an allocation of a 2013 series bond from freeman health system, a related party. As such, details regarding the bond is reported on freeman health system's, form 990, schedule k. Since the bond details are being reported once, freeman neosho hospital is not required to include a schedule k with its form 990.”

“Other changes in net assets: $ 24,418 change in interest in affiliates”