Bowling Green-Warren County Community Hospital Corporation

“------------------------------------------ article 2 of the bylaws identifies commonwealth health corporation board of directors as the member. Article 2 of the bylaws says the member shall appoint a nominating committee which shall meet and designate nominees for all positions to be filled by appointment by the member.”

“---------------------------------------- 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 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.”

“---------------------------------------- employee officers of this entity are employees of commonwealth health corporation which uses an independent consultant 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.”

“Program service accomplishments ------------------------------- organization: bowling green - warren county community hospital corporation, dba the medical center ("the medical center"), a kentucky non-stock, non-profit corporation exempt from income taxes under section 501(c)(3) of the internal revenue code of 1986, was established to act and operate exclusively for charitable purposes serving the local city, county, state, and surrounding counties in south-central kentucky. Begun in 1926, the medical center has a rich heritage of serving our community's healthcare needs and being the leader in providing quality care in a technologically advanced setting. The medical center is licensed by the cabinet for health and family services, commonwealth of kentucky, pursuant to irs chapter 216b and the regulations promulgated thereunder, operating with campuses in bowling green, ky, scottsville, ky and caverna, ky. The medical center's licensed beds include: bowling green scottsville caverna total acute care: 313 313 critical access acute: 25 25 50 psychiatric: 24 24 nursing facility: 110 110 subtotal - beds: 327 135 25 497 services: the medical center is primarily engaged in providing to inpatients and outpatients, by or under the supervision of physicians, diagnostic and therapeutic services for medical diagnosis, treatment, and care of injured, disabled, or sick persons. As a hospital, it maintains clinical records on all patients and has bylaws in effect concerning its staff of physicians. It requires that every patient must be under the care of physician and provides 24-hour nursing service by or supervised by a registered professional nurse, and has a licensed practical nurse or registered professional nurse on duty at all times. It has in effect a hospital utilization review plan and is licensed or is approved by the state of kentucky as meeting the standards estbalished for such licensing. It also meets other health and safety requirements of the secretary of health and human services. Services offered include: - acute medical care - skilled medical care - intensive coronary care - pharmacy - invasive cardiology - physical therapy - laboratory, clinical and pathology - radiation medicine (inpatient/outpatient oncology) - home health services - surgical inpatient services - surgical outpatient services - emergency room services - outpatient services - respiratory therapy services - radiology, including mammography, diagnostic x-ray, nuclear medicine, cat scanning, ultrasound, cardiology, positron emission tomography. The medical center's professional staff includes physicians who are engaged in the practice of medicine and who represent multiple specialties including family practice and emergency care. The staff also includes nurses, physical, occupational, and speech therapists, psychologists, respiratory therapists, nutritionists and others. Using an interdisciplinary team approach, the staff work collaboratively to provide primary outpatient care, rendered in an emergency room and outpatient setting, and secondary care consisting of inpatient services of a general and specialized nature. Community benefit and charity as a hospital, the medical center: (1) is organized as a nonprofit charitable organization for the purpose of operating as a hospital for the care of the sick, (2) is operated for the care of all persons in the community regardless of ability to pay the cost thereof, either directly or through third party reimbursement, (3) will not restrict use of its facilities to a particular group of physicians and surgeons to the exclusion of all other qualified doctors, and (4) will not permit any of its earning to inure directly or indirectly to the benefit of any private shareholder or individual. The medical center provides care to patients who meet certain criteria under their care policy without charge or at amounts less than their established rates. Because the medical center does not pursue collection of amounts det”

“Changes in net assets -------------------------------------- change in minimum pension liability (757,737) transfer from affiliates (625,749) ----------- total (1,383,486)”