Monument Health Network Inc.

“The membership of the Executive Committee of the corporation shall consist of the following: Chairman of the Board of Directors, Vice Chairman of the Board of Directors, Secretary, Treasurer, the most recent past Chairman of the Board of Directors unless such person is otherwise a member of the Committee (and only if the person continues to be a member of the Board of Directors), and the Corporation's President. The Chairman of the Board of Directors shall serve as Chairman of the Executive Committee. Directors on the Executive Committee shall serve during the term of office they hold which places them on the Executive Committee, or as otherwise provided by the Board of Directors. The Executive Committee, when the Board of Directors is not in session, shall have and may exercise all of the authority of the Board of Directors, except to the extent, if any, that such authority shall be limited by a motion or resolution of the Board of Directors. It is intended that the powers of the Executive Committee to act for the whole Board be confined to such urgent matters as reasonably should not be deferred until the next regularly-scheduled meeting of the full Board.”

“Brent Phillips has a business relationship with the following individuals due to being the CEO of the supporting organization that exercises reserve powers over the supported organizations that employ each of these key employees: Maureen Henson; Richard Latuchie; Mary Masten; Kyle Richards; Veronica Schmidt; Mark Schulte; Mark Thompson; Larry Veitz and employed Board Members: Lee Bailey MD; Christopher Gasbarre DO.”

“The bylaws of the Organization were amended with the following significant changes: -Following changes made to Regional Health, Inc., the President/CEO was changed to a non-voting member of the board, -System Committees were established to further increase responsiveness and gain more direct and efficient input from the supported organization's in Regional Health, Inc.'s decision-making. The amended bylaws require that at least one member of each supported entity's governing board be a member of the committee, along with members from the supporting organization's governing body. -Bylaw provisions were modernized to permit notices, meetings, etc. to be sent or attended and action to be taken through electronic means, -Added additional duties to the duties of the governing body related to accomplishment of strategic goals and Medical staff oversight.”

“Regional Health, Inc. is the sole member of Regional Health Network, Inc.”

“Regional Health, Inc., being the sole member of Regional Health Network, Inc., has the ability to appoint or remove all members of Regional Health Network, Inc.'s board.”

“Regional Health, Inc. provides compliance, governance, financial, and planning support to its Supported Organizations to best assure the functions and services of the Supported Organizations are coordinated and supported in a manner that furthers the shared charitable mission of the Supported Organizations and RHI, as a whole (the System). Regional Health, Inc. has final authority in significant business decisions affecting the Supported Organizations.”

“The 990 is prepared and reviewed by an independent accounting firm. It is then reviewed internally by finance and legal management. The Form 990 is further reviewed, prior to filing, by the organization's board of directors through a portal to the organization's internal information system, to which each board member has access. Educational sessions have been provided to each board member on how to access the portal.”

“As a part of the annual disclosure of potential conflicts process, all board members, officers, and management each required to complete a disclosure statement. Annually, a summary list of all conflicts disclosed by board members is prepared and provided to the full board so board members are aware of the conflicts/interests of other board members and are able to point out conflicts if an individual member with a conflict forgets. Additionally, the agenda for each board meeting and each board committee meeting includes an initial agenda item "Conflicts of Interest" where board members are asked if they have any conflicts related to the other items on the agenda. All employees are covered by the conflict of interest policy but completion of the annual disclosure statement is limited to board and board committee members, management, and certain physicians. When a proposed transaction involves a board member, the transaction is reviewed by the compliance and audit committee. At meetings, board members who have a conflict of interest may be invited to speak on the matter by the chairman, but are not permitted to vote on the matter and are required to leave the meeting during discussion, after they have made any comments invited by the chair. Failure to comply with this policy constitutes ground for removal from office or membership and in the case of all employees, termination of employment.”

“The Articles of Incorporation of the organization are filed in the office of the Secretary of State of South Dakota and are available to the public from the Office of the Secretary of State. Other documents (Bylaws, conflict of interest policy and financial statements) are not posted for the public but are available or described in other public documents or sites such as offering statements in bond issues or municipal securities rulemaking board's electronic municipal market access (EMMA) data port.”

“Spearfish Regional Hospital started providing Chemotherapy services on 07/01/15. The Spearfish Regional Health Clinics all were designated as "Provider based clinics" to the Spearfish Hospital - Provider # 43-0048 as of 06/15/15. This includes Spearfish Regional Medical Clinic, Queen City Regional Medical Clinic, Spearfish Regional Orthopedics and Regional Dermatology. Also within this same time frame the Belle Fourche Rural Health Care Clinic - provider 43-3440 also became a provider based Rural Health Clinic. These clinics are now owned and operated under the Organization's EIN. The Spearfish REgional Hospital's Queen City Regional Medical Clinic did offer extended hours and same day appointments beginning in October 2015 in preparation for offering urgent care services.”

“RHN discontinued some of its assisted living services.”

“Bond Issues: The issue price of the bonds includes the filing organization's share of the entire bond issue, which was issued to Rapid City Regional Hospital Inc. on behalf of the Obligated Group. The Obligated Group consists of Rapid City Regional Hospital Inc., Regional Health Inc, Regional Health Network Inc, and Regional Health Physicians Inc. In accordance with IRS instructions, information related to the tax exempt bond reporting is being reported on Rapid City Regional Hospital Inc.'s tax return.”

“All 1099's are issued centrally by Rapid City Regional Hospital, Inc., a related organization.”

“Golden Ridge Facility Sale Net Asset Adjustment 1,198,469. Fairmont Grand Facility Sale Net Asset Adjustment 7,154,303.”