Franciscan Missionaries of Our Lady

“The entity is organized as a non-profit corporation with members. The members are the provincial of the fmol north american province and those persons who are members of the provincial council of fmol north american province.”

“The members retain the power to appoint and remove the members of the board of trustees and officers of fmol health system.”

“The reserved powers to the members are as follows: 1. Change philosophy, objectives, purposes of corporation and any corporation in which fmol health system retains voting rights 2. Appoint and remove board of trustees and officers of fmol health system 3. Alter articles of incorporation and bylaws of fmol health system and any corporation in which fmol health system retains voting rights 4. Authorize merger, consolidation or affiliation, or participate in joint ventures 5. Dissolve and distribute assets of fmol health system or any corporation in which fmol health system retains voting rights 6. Appoint and terminate ceo of fmol health system or any corporation in which fmol health system retains voting rights 7. Acquire, lease, encumber real estate on behalf of fmol health system or any corporation in which fmol health system retains voting rights 8. Add to or incur long term debt in excess of $5 million by fmol health system or any corporation in which fmol health system retains voting rights”

“After preparation and review by kpmg, llp, management will review the form 990. A copy of the form 990 is provided to the organization's governing body before it is filed with the irs.”

“Fmol health system has a comprehensive conflict of interest policy that requires each officer, trustee, board committee member and employee to complete a conflict of interest disclosure statement annually. Completed disclosure forms are reviewed and maintained by the chief compliance officer. If any trustee, board committee member or senior manager has a potential conflict, the executive committee of the board determines whether action needs to be taken and communicates any such action to the individual. A potential conflict of any other employee is reviewed by the ceo or his designee. The executive committee, ceo or designee, as applicable, determines if a conflict of interest results in creating the appearance of impropriety. If such a determination is made, the individual will be excused from participating in the business decision. During the year, any change to the information in the disclosure statement must be disclosed promptly to the chief compliance officer, who takes appropriate action. The process also requires affirmation from each individual that she or he (a) has received a copy of the conflict of interest policy; (b) has read and understands the policy; (c) has agreed to comply with the policy; and (d) understands that fmol health system is a charitable organization and that, in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. In addition to the above, fmol health system provides mechanisms for confidential reporting of compliance issues. These mechanisms include an anonymous hotline and web site where individuals may raise issues, seek clarification, and report possible conflicts of interest or other concerns. These reports, including reports of possible conflicts of interest, are reviewed and investigated by the corporate compliance department and appropriate action is taken.”

“Our board of directors designates the human resources and compensation committee, made up of independent members to review and set the compensation annually of our executives and key employees. The committee obtains and relies upon comparable data including industry-wide compensation information from an outside consulting firm. The committee reviews compensation packages and appropriate compensation is determined and approved. The basis for determination is then documented by the committee.”

“Copies of the governing documents, conflict of interest policy, and financial statements are available upon request.”

“The franciscan missionaries of our lady health system ("fmolhs") was formed in 1984 by the franciscan missionaries of our lady - north american province, a religious community of the roman catholic church, to ensure the perpetuation of their mission. The health system delivers medical care and community services through its sponsored hospitals, subsidiaries and affiliates: our lady of the lake hospital, inc. In baton rouge, louisiana; st. Elizabeth hospital, in gonzales, louisiana; our lady of lourdes regional medical center in lafayette, louisiana; st. Francis medical center in monroe, louisiana; and our lady of the angels hospital, inc. In bogalusa, louisiana. Calais health, llc, a wholly owned corporate health services subsidiary, and franciscan pace, inc., a wholly owned corporation formed for the purpose of performing religious, benevolent, charitable, healthcare and educational activities, are both headquartered in baton rouge and operate throughout louisiana. Louise insurance company seeks to assure best-cost liability coverage for health system-sponsored organizations. These sponsored hospitals, subsidiaries and affiliates are referred to herein as "fmolhs affiliates". Fmolhs supports the purpose and activities of fmolhs affiliates and its power must be exercised in accordance with the teachings, traditions and canon law of the roman catholic church and the ethical and religious directives for catholic health facilities promulgated by the national conference of catholic bishops of the united states catholic conference. Fmolhs supports the activities of the entire system by providing executive leadership and centralized support and managerial functions. System-level activities include strategic planning, capital and operational budgeting, human resources administration, centralized cash management and treasury functions, information technology development and support, business office, decision support, and other support and management functions. Fmolhs and the fmolhs affiliates are active, caring members of the communities they serve. In carrying out its mission of meeting the health needs of the people of god, the board of directors has established a policy under which fmolhs affiliates provide care to needy members of their communities. Following that policy, health care services costing $20,156,000 were provided without charge during the year ended june 30, 2016. Charges foregone, based on established rates, totaled $267,546,000 for the year ended june 30, 2016. The fmolhs affiliates also participate in government programs including medicare, medicaid, and the tricare program. Under these programs, the fmolhs affiliates provide care to patients at payment rates that are determined by the federal and state governments, regardless of actual cost. In some cases, these programs pay the fmolhs affiliates at amounts which are less than their cost of providing services. The following table summarizes the amount of charges foregone (i.e., contractual adjustments) and the estimated losses incurred by the fmolhs affiliates due to inadequate payments by these programs and for charity for the year ended june 30, 2016: charges foregone estimated unreimbursed costs medicare $1,436,942,000 $110,356,000 medicaid $519,459,000 $54,960,000 other $13,823,000 $303,000 charity $267,546,000 $20,156,000 totals $2,237,770,000 $185,775,000 in addition to community services directly associated with providing hospital based care, fmolhs affiliates serve their communities in numerous other ways. Although the fmolhs affiliates have estimated the cost of each of these efforts to serve their communities, management and the boards of directors believe that such costs represent only some of the many ways fmolhs affiliates serve their communities. The estimated costs for the year ended june 30, 2016 are as follows: net community benefit expense subsidized health services $ 4,022,000 community health improvement services $ 3,691,000 health professions”

“Capital transfers $76,319,260 income from corporate subsidiaries $1,643,328”

“FMOL Health System, Inc. is making the election under Treas. Reg. 1.263(a)-3(n) to capitalize those repair and maintenance costs that it treats as capital improvements on its books and records for the tax year ended June 30,2016.”

“FMOL Health System, inc. hereby makes the de minimis safe harbor election under Section 1.263(a)-1(f) of the Treasury Regulations, effective only for the tax year ending June 30, 2016. Taxpayer has an Applicable Financial Statement for the year of the election. This election permits the taxpayer to deduct for tax purposes any item deducted under its book policy that does not exceed $5,000 per invoice (or per item, as substantiated by the invoice) or items having an economic useful life of twelve months or less as described in Section 1.263(a)-1(f)(1)(i).”

“DESCRIPTION:Other Purchased Services TOTAL FEES:57620974”