Nebraska Methodist Health System Inc.

“Prior to filing the form 990, a copy is provided to the audit committee of nebraska methodist health system. The committee is given an opportunity to ask questions or request more information at a subsequent meeting. The form 990 is also posted on a secure board portal; board members are given notice of the document in the portal so they may review and ask questions prior to filing. Information for the form 990 is gathered from appropriate responsible parties throughout the organization, including the organization's human resources, finance and compliance departments; is reviewed by external tax advisors and has a final review by the chief financial officer for 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 conflict of interest policy which requires the disclosure of 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. A potential conflict 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 for whom no conflict exists, at a meeting at which a quorum is present, that the arrangement or transaction is in the best interests of nebraska methodist health system and/or its affiliates, is fair and reasonable, and after investigation, the directors have determined that a more advantageous transaction or arrangement cannot be obtained with reasonable effort under the circumstances.”

“Methodist health system 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 the nebraska methodist health system, a nebraska non-profit corporation. All officer compensation is reviewed, evaluated and approved by this committee.”

“The form 1023 was filed prior to 7/15/87 and need not be made publicly available. A copy of the irs letter 947 will be provided upon written request.”

“The organization does not make these documents separately available to the public. However, the amended articles of incorporation are available through the nebraska secretary of state's website. The conflict of interest policy is distributed to all 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 community benefits it provides as part of the annual community benefit report. This report is available to the public on the website www.methodistchart.org.”

“Todd grages, cynthia peacock and steve baumert are key employees for the nebraska methodist health system. These individuals have assigned leadership roles with physicians clinic, nebraska methodist hospital foundation and jennie edmundson memorial hospital respectively. These individuals are paid by nebraska methodist health system through a common paymaster arrangement and report to the president of the nebraska methodist health system. For this reason, they are reported on the nebraska health system form 990 as key employees. Linda burt is the cfo for the entire group of nebraska health system entities. Her hours have been allocated across the organization.”

“Nebraska methodist health system inc. Is a common paymaster for itself and certain related affiliates. All w-2 forms for these affiliates are issued under the tax identification number of nebraska methodist health system. All required federal employment tax returns were filed by nebraska methodist health system inc. Wages and benefits shown in this form 990 are actual wages associated with only nebraska methodist health system inc.”

“Minimum pension liability adjustment -51,216,925. Transfers to affiliates -2,429,052. Change in beneficial interest in net assets of the foundation 2,683,770. Investment in subsidiaries 474,390,000.”

“Bond liabilities shown on the nebraska methodist health system books and records were included as part of the refunding portion of the hospital authority no. 3 of douglas county, nebraska issue dated 5/20/2008. This bond issue is reported on schedule k of the nebraska methodist hospital form 990.”