Missouri Hospital Plan

“MHP is governed by 11 individuals. 7 serve as executive officers of member hospitals; 1 serves as President of Missouri Hospital Association; 1 serves as the former President of Missouri Hospital Association; and 1 is a former director of The Missouri Department of Commerce & Insurance. MHP has a service contract with Hospital Services Group, Inc (HSG), a wholly-owned, taxable, for-profit subsidiary of HSA. HSG provides operating personnel, management services, and facilities to the organization. An executive officer of HSG also serves as President of MHP.”

“MHP is owned by its policyholders/members. Each member shall be entitled to one vote on all matters submitted to the members except in elections of directors which shall be by cumulative voting in which each member shall have a number of votes equal to the number of directors to be elected and shall have the right to cumulate its votes and cast them for one candidate or distribute them among more than one candidate. The annual meeting of the members shall be held to receive, consider, and act upon report of the board of directors and of the administrative personnel of MHP, and to elect a successor or successors to fill any vacancy or vacancies on the Board of Directors, and to conduct any other business as may properly come before the meeting.”

“MHP is owned by its policyholders/members. Each member shall be entitled to one vote on all matters submitted to the members except in elections of directors which shall be by cumulative voting in which each member shall have a number of votes equal to the number of directors to be elected and shall have the right to cumulate its votes and cast them for one candidate or distribute them among more than one candidate. The annual meeting of the members shall be held to receive, consider, and act upon report of the board of directors and of the administrative personnel of MHP, and to elect a successor or successors to fill any vacancy or vacancies on the Board of Directors, and to conduct any other business as may properly come before the meeting.”

“MHP is owned by its policyholders/members. Each member shall be entitled to one vote on all matters submitted to the members except in elections of directors which shall be by cumulative voting in which each member shall have a number of votes equal to the number of directors to be elected and shall have the right to cumulate its votes and cast them for one candidate or distribute them among more than one candidate. The annual meeting of the members shall be held to receive, consider, and act upon report of the board of directors and of the administrative personnel of MHP, and to elect a successor or successors to fill any vacancy or vacancies on the Board of Directors, and to conduct any other business as may properly come before the meeting.”

“Form 990 filing is prepared by an independent public accounting firm with assistance from MHP's finance team. The document is then reviewed and signed by either the President & CEO or the CFO for submission to the IRS. This tax return is also presented to MHP's governing body before filing for information purposes only, which also receives regular and timely reports on any issues relevant to MHP's operations, including material comments from independent parties.”

“Officers, directors, key employees, and certain other employees are required to complete a written conflict of interest questionnaire every 12 months, the results of which are reviewed by management and presented to the Board of Directors. Documentation is retained until completion of statutory examinations.”

“MHP has no employees. As mentioned in part VI, line 3, it is managed by Hospital Services Group, Inc (HSG), a wholly-owned subsidiary of Healthcare Services Association (HSA). The HSA compensation committee is responsible for the annual performance reviews of HSG's President & CEO and CFO and establishing a compensation recommendation on each that is presented to the governing board for review and approval. An independent consultant and related market research is used periodically as deemed necessary.”

“MHP has no employees. As mentioned in part VI, line 3, it is managed by Hospital Services Group, Inc (HSG), a wholly-owned subsidiary of Healthcare Services Association (HSA). The HSA compensation committee is responsible for the annual performance reviews of HSG's President & CEO and CFO and establishing a compensation recommendation on each that is presented to the governing board for review and approval. An independent consultant and related market research is used periodically as deemed necessary.”

“MHP's financial statements are filed quarterly with the Missouri Department of Commerce & Insurance (MODCI) and are publicly available documents through that regulatory agency. In addition, MODCI is mandated to perform a financial audit of the organization every 5 years, the results of which are also publicly available. Governing documents may also be available to the public through MODCI or through Missouri's Secretary of State.”

“MHP earned approximately $2.3M in premium revenue from Medical Liability Alliance, its wholly-owned taxable subsidiary. This gross income from constituents of section 501(C) (3) and governmental hospital members, who do not meet MHP's underwriting guidelines, is primarily related to the organization's mission of providing complete medical care needed by their communities.”

“MHP prepares its financial statements using accounting practices prescribed or permitted by the Missouri Department of Commerce & Insurance, financial institutions and professional registration, which practices differ from accounting principles generally accepted in the United States of America to determine and report its financial condition, its results of operations, and its solvency under Missouri insurance law.”