Mercy Life Inc

“The sole member of mercy life is sisters of providence care centers. See line 7 for additional information.”

“Sisters of providence care centers is the sole member of mercy life. Sisters of providence care centers has the right to appoint all persons to the board of directors of mercy life.”

“As sole member, sisters of providence care centers must approve certain decisions of the governing body, including the strategic plan, annual capital plan, and annual operating budget. Sisters of providence care centers must also approve significant changes such as a merger, dissolution, sale of assets in excess of certain limits and modifications to governing documents.”

“Prior to filing, the form 990 for mercy life is reviewed by management. Each member of the board receives a copy of the return in its final form before it is filed with the internal revenue service.”

“Mercy life has adopted trinity health's governance policy no. 1, which sets forth the organization's conflict of interest policy and processes. It applies to all "interested persons" of mercy life, which includes directors, principal officers, key employees, and members of committees with board-delegated powers. Interested persons are expected to discharge their duties in a manner the person reasonably believes to be in the best interests of mercy life and to avoid situations involving a conflict of interest. On an annual basis, interested persons are required to complete a conflict of interest disclosure statement and to affirm their receipt of the conflict of interest policy, compliance with its requirements, and agree to notify the organization of changes impacting their annual disclosure in accordance with the policy. The annual disclosures are provided to internal legal counsel and the integrity and compliance officer, from which legal counsel prepares a report for the board chair and ceo. A summary of potential conflicts is reviewed with the board of directors of mercy life (or a delegated committee of the board) on a yearly basis. Interested persons are required to make full disclosure to mercy life of any financial or business interests that might result in or have the appearance of a conflict of interest. The board of directors of mercy life (or a delegated committee of the board) is responsible for the review of transactions to determine whether an actual conflict of interest exists. In the event of an actual conflict, the board (or a delegated committee of the board) will either avoid the conflict or appropriately scrutinize the transaction to ensure it is in the best interests of mercy life. Interested persons are required to recuse themselves from discussion and voting on matters involving a conflict of interest. The policy further addresses the proper documentation of the proceedings and potential disciplinary and corrective action for violations of the policy. The policy is available to the public upon request.”

“Questions 15a and 15b are answered "no" because the compensation for certain officers and key management officials of mercy life was established by sisters of providence health system, a related organization that was merged into the mercy hospital effective december 30,2016. The process for establishing the compensation for the ceo and other management officials includes the following: the board has an independent committee review and approve all elements of remuneration for these executives. The board/committee has an established compensation philosophy which details the objectives of market positioning and pay elements. The committee engages with external consultants to provide market data comparing the organization's roles to similarly-sized health systems utilizing both title and job content comparisons. On an annual basis, the committee reviews the market analysis, approves any salary adjustments for the executive population, considers both reasonableness and effectiveness of all remunerative programs, and establishes the detailed performance expectations which are incorporated into the incentive plan. All of these discussions and decisions are documented through the provision of meeting minutes.”

“Mercy life is a subsidiary organization in the trinity health system. Trinity health makes certain of its key documents available to the public on its website, www.trinity-health.org, in the "about us" section. In this section, the consolidated audited financial statements are publicly available. Mercy life's governing documents and conflict of interest policy are available upon request.”

“Medical specialist fees: program service expenses 379,514. Management and general expenses 0. Fundraising expenses 0. Total expenses 379,514. Consulting fees: program service expenses 57,292. Management and general expenses 2,144. Fundraising expenses 0. Total expenses 59,436. Misc. Purchased services: program service expenses 957,128. Management and general expenses 35,816. Fundraising expenses 0. Total expenses 992,944. Medical services: program service expenses 3,212,777. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,212,777.”

“Mercy life's financial statements were included in the fy17 consolidated financial statements of trinity health, which were audited by an independent public accounting firm.”