Southeasthealth System Inc.

“The ceo and vice presidents determine compensation for applicable key employees and other officers. Human resources compiles external data for comparable amounts to confirm rates are adequate.”

“Kenneth bateman, officer and board member; krista berry, officer, and steven haas, officer, are employed by southeast hospital, a related organization. No board members receive compensation for their roles as board members.”

“Southeast health updated its bylaws during the year to reflect the affiliation agreement between mercy health, southeasthealth system, inc., southeast hospital, and southeasthealth representative, llc.”

“The sole member of southeasthealth system, inc is mercy health east communities.”

“Mercy health east communities has the power and responsibility to appoint and remove members of the board of southeasthealth systems.”

“The following corporate powers and responsibilities shall be reserved to mercy health east communities * revisions to the mission, philosophy, vision and operating values pursuant to which the southeasthealth system operates; * any amendments to the articles of incorporation and bylaws and any amendments to the corporate documents of southeasthealth system; * appointment and removal of the president of southeasthealth system; * adoption of the strategic plan, goals, and objectives of southeasthealth system * adoption of the operating, capital, construction and all other budgets for southeasthealth system * assignment, transfer, sale or lease of any of the assets of southeasthealth system in excess of an amount established from time to time by mercy health east communities; * incurrence of debt by southeasthealth system (other than debt incurred for the acquisition of goods that are acquired in the ordinary course of business) and to grant any security interests, place any encumbrances, enter into any covenants, and execute any documents and take any actions necessary or appropriate in connection with the incurrence of such debt; * any action which may be required to cause mercy health or southeasthealth system to comply with the terms and conditions of the master trust indenture dated as of november 15, 1995 between sisters of mercy health system, st. Louis, inc. And mercantile bank of st. Louis national association {and their respective successors and assigns) and any prior or subsequent supplements, amendments, replacements, restatements or successor indentures thereto; * adoption of a plan of merger, consolidation or dissolution of southeasthealth system * lease, management or purchase of, or affiliation with, another hospital or hospital system, or health care facility or health care system by southeasthealth system * expenditures not authorized by, or included within budgets approved by mercy health east communities which are in excess of an amount established from time to time by mercy health east communities * entering into any contract not included within budgets approved by, or within guidelines established from time to time by, mercy health east communities. * the creation, ownership or acquisition of, or affiliation with, any other organization controlled directly or indirectly by southeasthealth system; and * oversee, approve and monitor human resource programs, which shall promote an organizational environment that: - provides for the recruitment and retention of co-workers who are service orientated, compassionate, engaged, and who find meaning and purpose in working in a faith-based organization; - enables people to relate to one another with respect and acceptance in a spirit of community; - promotes co-worker participation and voice in their work lives; - gives co-workers a fair opportunity to develop their skills and talents, and a means by which their contributions are recognized; - provides co-workers with the materials and equipment to properly do their work~ and - ensures co-worker safety and well-being”

“The form 990 is prepared by an independent accounting firm based on the audited financial statements and information provided by the accounting department and management. The form 990 is reviewed by the accounting department, legal counsel, and management and is then provided to the board of directors at a meeting before filing.”

“All trustees and key employees (administrative staff) are required to read the organizational ethics statement annually and complete a certification statement to that effect. Directors, officers, managers and key employees must disclose any potential conflicts of interest to the board of directors. The remaining directors will discuss and vote upon whether a conflict of interest exists. If a conflict of interest is determined to exist, the chairman shall appoint a disinterested director to investigate alternative options for the transaction/arrangement in question. If a more advantageous option is not available, a majority vote of the disinterested directors will determine if it is in the best interest of the organization to continue with the transaction/arrangement. If a conflict of interest has failed to be disclosed, the interested party will be notified and appropriate disciplinary action will be taken as needed.”

“Data from two organizations (mo hospital association and another independent agency) are used for comparison. Recommendations are made from that information to the board of trustees, who then determine the compensation for the ceo. The board completes this review annually.”

“Copies of the organization's governing documents, conflict of interestpolicy, financial statements, and federal form 990 are available at the administrative office upon request.”

“Transfer to affiliates - -2801417;”