Emhfl Inc.

“Process to review form 990 -------------------------- copies of the form 990 are submitted to the full board via email prior to filing.”

“Monitoring the conflict of interest policy ------------------------------------------ annually, board of directors, senior leadership and medical staff leaders complete a conflict of interest questionnaire. Completion of the annual questionnaire is coordinated by general counsel and ephraim mcdowell's corporate compliance officer. The completed questionnaires are reviewed by the senior leadership and the corporate compliance officer. The chairman of the board of directors is made aware of conflicts which have been disclosed on annual statements. If conflicts exist, the conflict is disclosed and the individual with the conflict does not participate or vote on activities where a conflict of interest is present.”

“PROCESS FOR DETERMINING COMPENSATION ------------------------------------ EMHFL, INC. IS PART OF AN INTERGRATED HEALTHCARE DELIVERY SYSTEM WHOSE PARENT IS EPHRAIM MCDOWELL HEALTH, INC. COMPENSATION FOR ALL AFFILIATES IS OVERSEeN AND COORDINATED THROUGH EPHRAIM MCDOWELL HEALTH, INC. THE MERCER GROUP, INDEPENDENT CONSULTANTS, CONDUCTED A REVIEW IN 2015 FOR ESTABLISHING REASONABLE COMPENSATION OF OFFICERS AND KEY EMPLOYEES FOR THE SYSTEM. THE ORGANIZATION ALSO UTILIZED COMPENSATION STUDIES. THE COMPENSATION IS APPROVED BY THE COMPENSATION COMMITTEE OF THE EPHRAIM MCDOWELL HEALTH, INC. BOARD OF DIRECTORS. THE DECISION AND PROCESS IS DOCUMENTED BY THE COMMITTEE.”

“Making forms available to the public ------------------------------------ the organization makes its governing documents, conflict of interest policy and financial statements available to the public upon request.”

“Members of the organization --------------------------- ephraim mcdowell health, inc. Is the sole corporate member of emhfl, inc. Ephraim mcdowell health, inc., a related 501(c)(3) entity, is the parent organization of an integrated healthcare delivery system. Ephraim mcdowell health, inc. Elects board members of emhfl, inc. On an annual basis. The bylaws of emhfl, inc. Require approval of certain transactions by its sole corporate member, ephraim mcdowell health, inc.”

“Part-year officers ------------------ vicki darnell resigned as ceo on 1/30/2016 and was replaced as ceo by sally davenport.”

“Common paymaster ---------------- ephraim mcdowell regional medical center is the common paymaster for emhfl, inc. All salaries and payroll taxes are reported on a consolidated form 941. The ein on the form 941 is 61-0492356.”

“PROGRAM SERVICE ACCOMPLISHMENTS ------------------------------- Ephraim McDowell Fort Logan Hospital (EMFLH), located in Stanford, Kentucky, is a 25-bed critical access hospital offering quality health care and Level IV Trauma certified emergency services. The facility is Joint Commission accredited and recognized as a Certified Preferred Employer through The Work Institute. EMFLH represents less than five percent of employers, among more than 200 healthcare organizations that are a part of The Work Institute to receive such a distinction. EMFLH offers a variety of Ephraim McDowell Health system services locally through the facility, including Cardiopulmonary, Diagnostic, Dietary, Family-Centered Maternity Care with a Birthing Spa, Laboratory, Rehabilitation, Surgical Services, and Durable Medical Equipment including Home Medical Equipment through Med Source of Stanford. In fiscal year 2016, outpatient registrations, including emergency services were 38,780; there were 920 surgical procedures, 1,181 admissions (including nursery), 454 observation days, and the facility recorded 3,418 total patient days (excluding observation). These numbers reflect an increase in health care access to residents of Lincoln County and the surrounding counties. Community Health Education General ------------------------------------ Health Fairs - A registered nurse (RN) met with each client to develop a written plan to decrease their life style associated health risk factors. Services were offered at 7 sites in Lincoln and Garrard Counties with a focus on reaching at risk and vulnerable populations. Two hundred and fifteen adults were served. Over fifty two percent had a household income below $35,000; compared to 42 percent in 2015. In clients seen, unemployment increased from thirteen percent in 2015 to 15.1 percent in 2016. Forty-three percent of clients were retired; down 8 percent the prior year. In FY 2016 sixty eight percent reported not having a primary care provider compared to 64 percent in FY 2015. Referral options were provided, including Hope Clinic, reduced fee program, and a primary care provider listing for the region. Seven percent of clients served were African American; 90 percent Caucasian, three percent were other. The African American population represents a high risk group due to poverty, diabetes, high blood pressure, high body mass index and other factors, and was a focus for services. The ethnicity percentages are representative of the regional demographics. Screening test results showed that 50.2 percent were out of normal range, this figure representing a slight increase with the fifty percent reported in FY 2015. Twenty-two percent of participants with abnormal test results were referred to a primary care provider for follow-up care. Forty-three percent of clients were male; fifty-seven percent were female. This represents an increase in female clients seeking preventative care. There was a fourteen percent increase in the number of individuals seen in Lincoln and Garrard Counties in FY 2016 compared to 2015 due to changes in leadership within the school systems, changes in church leadership and engagement in health ministry and preventative care for breast and cervical cancer, as addressed through ACA rather than outreach projects. The increase seen was also due to the inability for individuals to pay for high deductibles/copays, as was deducted from the complaints received. Carry over from the outreach of the HRSA Grant for Healthy People Healthy Communities was also a contributing factor. There was an increase in hospital based outpatient services which reflects increased access to care. The conclusion is that high risk individuals were served by the screening programs. School-Based Program - The Trauma Bear Fair was sponsored by the EMFLH, EMS, and Air Evac at local schools to provide trauma education to twenty-four students. The focus was on what to expect if involved in an accident requiring a hospital visit. EM”