University Extended Care Inc.

“A copy of form 990 and all related schedules was provided to the governing board before filing in electronic form. An email was sent to all members of the governing body containing a link to a password-protected website on which the entire 990 could be viewed. The email explained that the form 990 was available for review on the website.”

“The steps in the conflict of interest policy are outlined below: 1. Senior management (vice presidents and above) shall complete a potential conflict of interest questionnaire periodically. Each system organization's ceo, coo, cfo and within their division's vice presidents may require any employee to complete a potential conflict of interest questionnaire. 2.each employee is expected to report a potential conflict of interest when it arises. 3. A. An employee will report a potential conflict of interest by initiating a potential conflict of interest disclosure form and delivering it to his/her vice president. All employee potential conflicts will be screened by two levels of senior management to identify conflict or duality of interest situations. (a duality of interest exists when an individual has personal or outside interests that can be affected by decisions of the system. Such a duality or even multiplicity of interest can be beneficial to and consistent with the primary goals of the institutions. Duality of interest can raise the potential for conflict of interest when the personal interests of individuals come into conflict with the interests of the system.) b. When a division vice president is notified of a potential conflict/duality of interest, the vice president shall investigate the situation and make a report of his or her findings along with a recommendation to the executive vice president (coo) or ceo of the involved system organization. C. The executive vice president or ceo who received the 3.b report shall make a decision concerning a potential conflict of interest and any resolution measures to be taken. In the event the potential conflict involves a vice president, the president of university health shall investigate the situation and make a decision concerning a potential conflict of interest and any resolution measures to be taken. This information shall be communicated directly to the concerned employee. D. The employee may appeal the conflict of interest determination to the president of university health. The president's decision about a potential conflict of interest and any resolution measures is final and not cognizable under the employee grievance policy a-30. E. In the event the potential conflict involves the ceo of a system organization, the matter shall be reported to the chairman of the involved system organization board, who shall determine if a conflict exists and what, if any, resolution measures are necessary in accordance with the corporation's conflict of interest policy. 4. Filing of forms a. Conflict of interest questionnaires of those who are required by this policy to complete one periodically shall be filed in the applicable corporation's ceo's office and retained for no less than seven years. Optional conflict of interest questionnaires shall be filed in the office of the vice president who requested completion of the form. B. Completed potential conflict of interest disclosure forms shall be filed in the applicable corporation's ceo's office for the ceo, coo, and vice presidents and for all others in the appropriate vice president's office. The forms should be retained for no less than seven years. 5.the vice president for legal affairs will be available to advise on potential conflict of interest matters. Board members: board members are also required to complete a potential conflict of interest questionnaire annually. This questionnaire asks for disclosures related to any family relationships or business relationships with other board members, or business relationships with the organization.”

“The organization follows the process described in treasury regulation 53.4958-6(c) for establishing the rebuttable presumption of reasonableness in the review, approval, and documentation of any officer, key management, and director compensation. The ceo and cfo are paid by university health services, inc. (58-1581103). Annually, a compensation committee of the university health services (uhs) comprised of three independent board members reviews the compensation of the ceo and other senior management members. The review is conducted in the context of a board approved executive compensation philosophy. Both the development of the compensation philosophy and the reviews involve the advice and assistance of an independent compensation consulting firm. Minutes of the compensation are recorded. The compensation committee reports to the uhs board executive committee.”

“All governing documents, policies, financial statements, and informational returns are available upon request from the administration office.”

“James r davis compensation paid by university health services inc (58-1581103) david a belkoski compensation paid by university health services inc (58-1581103) marilyn a bowcutt compensation paid by university health services inc (58-1581103) william l farr jr compensation paid by university health services inc (58-1581103) daniel h boone md compensation paid by university medical group, llc (27-4467379) james c sherman md compensation paid by university health services inc (58-1581103)”

“Consulting fees: program service expenses 122. Management and general expenses 29. Fundraising expenses 0. Total expenses 151. Physician fees: program service expenses 53,831. Management and general expenses 12,625. Fundraising expenses 0. Total expenses 66,456. Purchased services: program service expenses 1,573,329. Management and general expenses 368,979. Fundraising expenses 0. Total expenses 1,942,308. Physical therapy: program service expenses 1,025,160. Management and general expenses 240,422. Fundraising expenses 0. Total expenses 1,265,582. Occupational therapy: program service expenses 1,104,731. Management and general expenses 259,082. Fundraising expenses 0. Total expenses 1,363,813. Speech therapy: program service expenses 359,770. Management and general expenses 84,373. Fundraising expenses 0. Total expenses 444,143. Dietician fees: program service expenses 55,652. Management and general expenses 13,052. Fundraising expenses 0. Total expenses 68,704. Morrison contract: program service expenses 570,869. Management and general expenses 133,881. Fundraising expenses 0. Total expenses 704,750. Personnel recruitment: program service expenses 26,731. Management and general expenses 6,269. Fundraising expenses 0. Total expenses 33,000. Management: program service expenses 972,687. Management and general expenses 228,114. Fundraising expenses 0. Total expenses 1,200,801.”

“The process has not changed from the prior year.”