Yoakum Community Hospital

“Community hospital corporation ('chc') provides certain financial, technical and managerial support services to the hospital.”

“Chc is the sole member of yoakum community hospital ("ych").”

“Chc as the sole member of ych elects the members of the board of trustees of ych and is empowered with the ability to remove trustees, with or without cause.”

“Articles of incorporation - board of directors section 7.1 powers. The affairs of this corporation shall be managed by its board of trustees (hereinafter sometimes called the 'board') provided that the approval of the member of this corporation shall be necessary for each of the following matters: a. The establishment of or any change in the activities, philosophy, mission or purpose of the corporation as set by the member; b. Any amendments or revisions to the articles of incorporation or bylaws of the corporation; c. Any amendments or revisions of the articles of incorporation or bylaws of any subsidiary corporation of the corporation; d. The creation of, or investment in, any subsidiary entity, partnership or venture; e. Any amendment, revision or termination of the partnership agreement of any partnership or regulations of any limited liability company, to which the corporation is a party; f. The annual operating and capital budgets of the corporation; g. All material expenditure deviations ($25,000 in any single or series of transactions) from the annual operating budget; h. All expenditure deviations from the annual capital budget; i. The purchase or acquisition of any real, personal, or mixed property the corporation in excess of $25,000 that is not provided for in the corporation's annual operating or capital budgets; j. The sale, mortgage, encumbrance, transfer, lease, gift, or other disposition of any real property of the corporation; k. Any sale, gift, exchange, lease, mortgage or other transfer or encumbrance (collectively 'transfer') of the personal property of the corporation (tangible or intangible) if the sum of such transfer and the sum of all prior transfers, per fiscal year, exceed $50,000; l. Any debt or financing arrangement of this corporation, except usual and customary trade debts, which is incurred in the ordinary course of business of the corporation; m. Settlement of any claims or litigation involving the corporation; n. The merger, dissolution, or consolidation of the corporation or subsidiary corporation; o. The execution, revision, amendment, extension, non-renewal or termination of any management, employment, lease, or service contract an annual compensation in excess of $30,000 or an aggregate compensation in excess of $50,000; p. Any debts, loans, guaranties, or grants not included and approved as part of the corporation's annual operating and capital budgets; q. The election of the members of the board of trustees of the corporation or the removal of said trustee, whether with or without cause; r. The engagement of or removal of the hospital administrator; s. The approval of the employee policies and benefits programs of the corporation; t. The approval of major development campaigns and fund-raising; and u. The approval of the finance management system of the corporation.”

“A review of the 990 form is performed by the cfo of the hospital following form preparation. Electronic copies are sent to each board member via email upon completion of the form. The forms are then filed with the irs.”

“Conflict of interest statements are filled out by governing board members, administrative team, and other key employees on a yearly basis. If a conflict of interest is disclosed, it is reviewed by management personnel, chief compliance officer, general counsel, or the audit and committee. The interested person is allowed to make a presentation, and answer questions posed by the governing body at the committee meeting but must leave after the presentation, during the discussion of and vote on the transaction or arrangement involving the potential conflict of interest. If deemed necessary, a disinterested person can be appointed to investigate the potential conflict of interest and the alternatives to the applicable transaction or arrangement. If a more advantageous transaction/arrangement is not reasonable, the governing body shall determine by a majority vote of the disinterested directors whether the transaction/arrangement is in the best interest of the organization. The compliance officer along with the chief financial officer is responsible for conducting audits and monitoring reviews of internal controls to make sure they are free from any conflicts of interest/influences that would impair their ability to objectively carry out their work without bias. If for any reason there is belief that a board/committee member/employee failed to disclose actual or possible conflicts of interest, the member/employee will be informed and given an opportunity to explain the failure to disclose. If, after hearing the response and making further investigation, it is determined there was failure to disclose, then appropriate disciplinary action is taken which can include without limitation, termination of the person's membership, employment, or contract.”

“The organization makes its governing documents, financial statements, and conflict of interest policy available at its business office upon request.”

“- Total Revenue: 154533, Related or Exempt Function Revenue: 154533, Unrelated Business Revenue: 0, Revenue Excluded from Tax Under Sections 512, 513, or 514: 0;”

“The organization executives are employed by the parent organization, chc, and therefore follow the compensation policy of chc as adopted by yoakum community hospital. Chc engaged sullivan cotter to conduct a competitive market analysis of the compensation of chc's top management officials, officers, directors and key employees. Sullivan cotter gathered data related to job descriptions, scope of responsibility, and current incumbents compensation. Sullivan cotter recommended appropriate comparison data and utilized survey data from four major executive compensation survey providers to provide market data and executive compensation recommendations that meet chc's compensation philosophy. Sullivan cotter's recommendations were presented to the chc compensation committee of the board for review and approval. Chc also conducts periodic reviews of compensation to determine whether compensation arrangements and benefits are reasonable, based on competent survey information, and the result of arm's length bargaining. The process is performed each year prior to the annual employee evaluation process, which ends on july 1st of each year.”

“PURCHASED SERVICES-HOSPITAL - Total Expense: 3418192, Program Service Expense: 2905463, Management and General Expenses: 512729, Fundraising Expenses: 0; PURCHASED SERVICES-CLINIC - Total Expense: 46373, Program Service Expense: 39417, Management and General Expenses: 6956, Fundraising Expenses: 0; PROFESSIONAL FEES-HOSPITAL - Total Expense: 1047470, Program Service Expense: 890350, Management and General Expenses: 157120, Fundraising Expenses: 0;”

“Other Adjustments - 8069;”