Commonwealth Regional Specialty Hospital Inc.

“The corporation's articles of incorporation specify the corporation shall have one (1) member. The member shall be commonwealth Health Corporation, Inc.”

“Bylaws of the corporation specify that the sole member shall appoint a nominating committee which shall meet and designate nominees for board directorships.”

“form 990 is placed electronically on a company website used to share information with board members. each board member is provided access to the website and is asked to review form 990 prior to a designated date on which the return will be filed. at least two weeks of advance notice is given to board members so they may review the return.”

“THE COMMONWEALTH HEALTH CORPORATION (CHC) (APPLICABLE TO tHE CORPORATION AND/OR ITS AFFILIATES) CODE OF CONDUCT EXPLICITLY STATES MEMBERS OF THE BOARD ADMINISTRATION, THE MEDICAL STAFF AND ALL EMPLOYEES ARE EXPECTED TO AVOID CONFLICTS OF POLICY INTEREST. FURTHER, IT REQUIRES DISCLOSURE OF ANY POTENTIAL CONFLICTS OF INTEREST IN A TIMELy MANNER. ALL INDIVIDUALS SIGN AN ACKNOWLEDGEMENT UPON EMPLOYMENT THAT THEY HAVE RECEIVED A COPY OF THE CODE OF CONDUCT, ARE FAMILIAR WITH ITS CONTENT AND UNDERSTAND THEIR RESPONSIBILITIES TO AVOID NON-COMPLIANT ACTIVITY. CHC'S REGULATORY COMPLIANCE COMMITTEE (RCC) REVIEWS AND APPROVES ALL CONTRACTS between CHC and/or its affiliates and disqualified entities. THE REVIEW IS DESIGNED TO IDENTIFY POTENTIAL CONFLICTS OF INTEREST BY BOARD MEMBERS AND/OR OFFICERS. RCC MEMBERS ARE PROHIBITED FROM TAKING PART IN DECISIONS REGARDING TRANSACTIONS WITH WHICH HE/SHE HAS A CONFLICT OF INTEREST. ANNUALLY, WRITtEN INQUIRY IS MADE - BY QUESTIONNAIRE - OF BOARD MEMBERS AND OFFICERS SEEKING DISCLOSURE OF CONFLICTS OF INTEREST OR INFORMATION THAT RELATES TO FAMILY MEMBERS. TRANSACTIONS ARISING ARE REVIEWED BY MANAGEMENT AS THEY OCCUR.”

“The officers are Commonwealth Health Corporation employees. The Commonwealth Regional Specialty Hospital (CRSH) administrator is an officer that is an employee of CRSH. The entity USES INDEPENDENT CONSULTANTS TO ANNUALLY REVIEW COMPENSATION. COMPENSATiON-RELATED DETERMINATIONS ARE CONDUCTED IN ACCORDANCE WITH APPLICABLE REQUIREMENTS OF THE INTERNAL REVENUE CODE AND REGULATIONS TO QUALIFY FOR THE PRESUMPTION THAT THE COMPENSATION IS REASONABLE, INCLUDING BUT NOT LIMITED TO APPROVAL BY AN AUTHORIZED COMMITTEE OF THE BOARD OF DIRECTORS WHO DO NOT HAVE A CONFLICT OF INTEREST, OBTAINING AND RELYING ON APPROPRIATE DATA AS TO COMPARABILITY, AND CONCURRENT DOCUMENTATION OF THE BASIS FOR THE COMPENSATION DETERMINATIONS.”

“Governing documents, conflict of interest policy and financial statements are only made available if required, and in the manner required, by a governing agency.”

“Contract Fees: Program service expenses 796,380. Management and general expenses 0. Fundraising expenses 0. Total expenses 796,380. Billing Fees: Program service expenses 0. Management and general expenses 10,762. Fundraising expenses 0. Total expenses 10,762. Employee Support Fees: Program service expenses 55,364. Management and general expenses 0. Fundraising expenses 0. Total expenses 55,364.”

“The board of directors assumes responsibility for oversight of the audit of the financial statements and selection of the independent accountant; and no processes have changed from prior year.”