Mercy Hospital Carthage

“The filing organization has a sole corporate member, mercy health southwest missouri/kansas communities.”

“The sole corporate member has the authority to: -to appoint and remove, with or without cause, members of the board; and, -through the sole action of the president of mercy health, to appoint and remove, with or without cause, the chief executive officer who shall serve as president of the corporation.”

“The following governance decisions are reserved to the sole corporate member: - to approve the mission and establish the philosophy according to which the corporation, and all organizations controlled by the corporation, shall operate; - to adopt or amend the articles of incorporation and bylaws; - to approve or amend the strategic, long range, and health manpower development plans, goals, and objectives of the corporation; - to approve or amend the operating, capital, and construction budgets for the corporation; - to assign, transfer, lease or sell any of the assets of the corporation; - to encumber any or all of the assets of the corporation; - to authorize and approve the incurrence of debt by the corporation; - to merge, dissolve, or abandon the corporation; and, - to approve the creation, ownership or acquisition of, or affiliation with, any other organization controlled by the corporation.”

“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 team, including the director of finance and the chief financial officer. The draft form 990 is also reviewed by mercy health's tax department, to ensure accuracy and consistency with other related organizations' forms 990. 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 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, 2023. This process is administered at the mercy health level by mercy's corporate compliance department. The conflicts and their respective resolutions are shared at the mercy level with a team including mercy's senior vice president of financial operations & planning, chief compliance officer and other members of finance, legal and hr. The questionnaires are then reviewed with leadership at the local level and potential conflicts discussed and resolved. Summary results are reviewed with mercy's stewardship committee of the board of directors.”

“Governing documents, conflict of interest policy, and financial statements are made available upon request but are not published publicly.”

“Former employee compensation is reported for the calendar year ending within the organization's fiscal year while average hours are based on the fiscal year period from july 1, 2022 through june 30, 2023.”

“Process to establish compensation of top management officials, other officers and key employees for the top management officials, those classified as officers (and thus disqualified persons) and key employees, the organization relies upon mercy health, which 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 board of mercy health. Compensation reviews are completed on an annual basis and a review was completed during the reporting year.”

“(Expenses $ 7,702,803 including grants of $ 21,900)(Revenue $ 10,320,748) IN ADDITION TO THE PROGRAM SERVICES DESCRIBED ABOVE, MERCY HOSPITAL CARTHAGE ALSO SERVES PATIENTS IN ADDITIONAL SERVICE LINES, INCLUDING BUT NOT LIMITED TO THE FOLLOWING AREAS: CARDIOVASCULAR; ONCOLOGY; LAB; GASTROENTEROLOGY; WOMEN & INFANTS.”

“Vendors 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 mercy health system (with limited exceptions) under the mercy health ein.”

“Most employees are paid by a related organization under a common paymaster arrangement. As such, required payroll filing (including w-2 and w-3's) is reported under the related organization, mhm support services, ein 20-2553101.”

“Transfers to/from affiliates - -8041747;”

“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 2023 (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 and this audit was completed for the fiscal year ending june 30, 2023 by march 31, 2024. 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, 2023, it will be included on the mercy health consolidated sefa, and therefore, also included in the population included in the audit.”

“Early in 2020, the mercy health system was called to serve as the covid-19 pandemic swept across the world. During fy 2023, the impact of covid-19 and inflation has been and still is significant to our communities with changes in patient care revenues due to surges, increasing the costs of salaries and agency labor, and supply chain impacts. All mercy facilities adjusted operations for the impacts of the pandemic. 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 did receive funding from the coronavirus aid relief and economic security act ("cares act"). Mercy received cares act funding for the past four fiscal years across various entities 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. 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.”