Faith Regional Health Services

“Faith regional has one nonprofit 501(c)(3) corporate member, lutheran community hospital association, a related organization.”

“Pursuant to faith regional's 2008 restated bylaws, the sole corporate member, lutheran community hospital association, appoints 14 voting members of the board of directors of faith regional health services.”

“Faith regional's restated bylaws reserve certain powers to its sole member, lutheran community hospital association. There are 13 reserved powers, including appointment and removal of directors, other than chief of staff, amendment of the articles of incorporation and bylaws, amendment of the mission, vision and value statements, among others.”

“Form 990 information schedules are completed in-house by the reimbursement accountant and reviewed by the cfo. The information is provided to seim johnson, llp, for return preparation and signature. Post-audit review, form 990 and schedules are mailed to each board member. Form 990 is reviewed and discussed at the scheduled board meeting prior to submission to the irs.”

“Faith regional's board members are required to sign a conflict of interest statement and disclosure annually. Any conflicts are reviewed by the board. A member with a conflict is excused from the board deliberations and action.”

“Determination of compensation for the ceo and other officers and key employees is made by gathering data from external surveys and the form 990 data provided by comparable facilities. Facilities used are determined by similar bed size, net revenues and number of ftes. Wages are gathered and compared by title, responsibilities and years of experience. The salary recommendations are made by the human resource department. The governing board approves the salary recommendations for the ceo; the ceo approves the recommendations for the other officers and vice-presidents; and the vice-presidents approve the recommendations for the directors of various hospital departments.”

“Faith regional does not make its governing documents, conflict of interest policy or financial statements available to the public.”

“Maintenance contracts: program service expenses 1,658,650. Management and general expenses 176,788. Fundraising expenses 98,854. Total expenses 1,934,292. Medical services: program service expenses 210,977. Management and general expenses 2,358,934. Fundraising expenses 0. Total expenses 2,569,911. Billing service fee: program service expenses 537,161. Management and general expenses 0. Fundraising expenses 0. Total expenses 537,161. Anesthesia services: program service expenses 4,957,386. Management and general expenses 0. Fundraising expenses 0. Total expenses 4,957,386. Laboratory services: program service expenses 1,234,933. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,234,933. Purchased services: program service expenses 3,241,342. Management and general expenses 2,029,927. Fundraising expenses 0. Total expenses 5,271,269. Contract labor: program service expenses 0. Management and general expenses 2,062,835. Fundraising expenses 0. Total expenses 2,062,835. Other fees for services: program service expenses 58,166. Management and general expenses 16,268. Fundraising expenses 0. Total expenses 74,434.”

“Northest nebraska surgery center equity adjustment 119,412.”

“The finance/audit committee meets monthly to review our unaudited financial statements. In november of each year, they meet to approve our annual budget and five-year strategic financial plan. In december, they will review and approve the engagement letter prepared by our external auditors, seim johnson, llp, which outlines the scope of their audit and their fees and expenses. At the close of the audit, they meet with the faith regional executive team and seim johnson, llp representatives to discuss any audit issues. In mid to late march, they then meet again with seim johnson, llp representatives to discuss the draft and final audited financial statements including their opinion. Regarding the selection of an external auditor, the committee has in the past selected up to three regional cpa firms specializing in healthcare audits to which to send rfps and then reviews the rfps at a later date. The last time this was done they reaffirmed the retention of seim johnson, llp as the external auditor. Each five years, although not required by the sarbanes-oxley legislation, seim johnson, llp rotates one of their partners to the faith regional engagement. This process has not changed from the prior year.”