Nebraska Methodist Hospital

“The sole member of nebraska methodist hospital is nebraska methodist health system, inc., a nebraska not-for-profit corporation.”

“In accordance with the bylaws, nebraska methodist health system, inc., the member, has the power to confirm and remove the directors of the corporation and has the power to appoint and remove the person designated as the corporation's president by the board of directors.”

“Nebraska methodist health system, inc., the member, has the power to approve or refuse to approve any amendment to the corporation's articles of incorporation or to the bylaws, or any action required to be submitted to and approved by the voting members of a nonprofit corporation under the nebraska nonprofit corporation act. The member has approval authority on annual budgets, capital expenditures in excess of certain established thresholds, and establishment of or participation as a shareholder, partner or equity member of any other entity.”

“A copy of the form 990 was provided to the members of the nebraska methodist health system audit and compliance committee who reviewed it in detail. The audit and compliance committee reported to the board of directors on their review of the federal form 990. A copy was made available to members of the board of directors for review through a secure internet portal. The board of directors is given an opportunity to ask questions or request more information. Nebraska methodist hospital is an affiliate of the nebraska methodist health system. The policies and practices of nebraska methodist health system apply to all its affiliates. Information for the form 990 is gathered from appropriate responsible parties throughout the organization including finance, human resources and corporate compliance; is reviewed by external tax advisors and has a final review by the chief financial officer for the nebraska methodist health system and the organization's chief executive officer.”

“An annual questionnaire is sent to all officers, directors and key employees pursuant to the methodist health system conflicts of interest policy which requires the disclosure relationships, not just financial, that could give rise to conflicts with the organization. A board committee meets annually to review all potential conflicts identified through the surveys. Should a decision come to the board with an identified conflict, the officer, director or key employee is not permitted to vote or use personal influence on the matter and is not counted in determining a quorum for a meeting at which the matter is discussed. Potential conflicts of interest, once identified, must be evaluated on a case by case basis. In order to approve the transaction which involves a direct conflict of interest, the board must first find, by majority vote of directors not involved in the conflict, at a meeting at which a quorum is present, that the arrangement or transaction is in the best interests of nebraska methodist hospital and/or the methodist health system affiliates, is fair and reasonable, and after investigation, the directors have determined that a more advantageous transaction or arrangement cannot be obtained with reasonable efforts under the circumstances.”

“Nebraska methodist health system with which nebraska methodist hospital is affiliated, retains an independent consultant to review all officer compensation for each affiliate. Under this process, market data on compensation is gathered and analyzed and compensation ranges are set. The information is then provided to the compensation committee of the board of nebraska methodist health system, inc., a nebraska non-profit corporation. All officer compensation is reviewed, evaluated and approved by this committee. Physician compensation is compared to national compensation survey data from the american medical group association (amga) and the medical group management association (mgma). The policy on "physician compensation" is followed when contracting with physicians to ensure appropriate approvals, including approval by the board of directors, are obtained when warranted. Opinions of fair market value regarding a particular compensation arrangement or transaction may also be obtained from reputable, independent valuation consultants.”

“The organization filed the form 1023 in 1968. Applications filed before july 15, 1987 need not be made publicly available. A copy of the irs determination letter will be provided upon written request.”

“The organization does not make these documents separately available to the public. However, the restated articles of incorporation of the organization are available through the nebraska secretary of state's website. The conflict of interest policy is distributed to members of the board of directors and employees. Financial information is available to the public through the irs form 990 and form 990-t. The organization also contributes information regarding the community benefits it provides as part of the nebraska methodist health system's annual community benefit report. The report is available to the public on the website www.bestcare.org/about/community-benefits/community-impact.”

“The payroll system for nebraska methodist hospital is being handled by a common paymaster, nebraska methodist health system, inc. All w-2 forms were issued under the tax identification number of nebraska methodist health system and all required employment tax returns were filed by nebraska methodist health system. Wages and benefits shown in the form 990 are actual wages associated with nebraska methodist hospital personnel.”

“Transfers to affiliates -23,494,567. Change in beneficial interest in foundation assets 6,966,993. Change in investment in subsidiaries 841,018.”