Honorhealth Foundation

“Honorhealth foundation does not have employees but shares the cost of personnel, services, facilities and expenses with honorhealth, a related tax-exempt organization.”

“There is an executive & finance committee of the board of trustees, consisting of the chairman, immediate past chairman, vice-chairman, president, secretary, treasurer, and the chairman of all standing committees. The chairman of the board may appoint up to two at large members to the executive & finance committee. The executive & finance committee shall meet on an as-needed basis and shall have the authority and responsibility of exercising the powers and duties of the board of trustees. The executive & finance committee, which may be convened on any type of notice, may act for the board when action between regularly scheduled board meetings is required. Typically, the executive & finance committee meets to bring recommendations to the foundation board of trustees.”

“THE PRESIDENT OF HONORHEALTH FOUNDATION IS COMPENSATED BY HONORHEALTH, A RELATED TAX-EXEMPT ORGANIZATION. THE PROCESS DESCRIBED BELOW IS THAT OF HONORHEALTH. An executive compensation consultant conducts detailed market analysis for executive cash compensation. The consultant utilizes available published healthcare survey sources. Executive positions, like the position of President of the HonorHealth Foundation, are matched to Appropriate survey positions based on job content, duties and scope of responsibility. Survey data is matched from organizations of similar size and scope. The study was last completed in 2024. HonorHealth's CEO serves on the Executive Compensation Committee. In direct consultation with the Executive and Compensation Committee of the Board, A HonorHealth corporate officer annually determines officer and key employee compensation, including compensation of the President of the HonorHealth Foundation, using data provided by the compensation consultant. Discussion of recommended compensation adjustments is documented in the Executive Compensation Committee minutes. Impacted individuals are not present during the discussion and are not involved in the process.”

“Honorhealth foundation does not have any members under state law. However, using the irs definition of a member, honorhealth is considered a member of honorhealth foundation due to its ability to approve certain significant decisions of the governing body of the foundation and the requirement that the honorhealth board ratify foundation trustees elected by the foundation board.”

“The ceo of honorhealth, shall automatically, upon assumption of such office, become an ex-officio trustee of the foundation with full voting power during the ceo's tenure in office.”

“While the foundation is an independent corporation, it is important that its plans and actions be coordinated with honorhealth. To accomplish this coordination, the following must take place: (a) annual plan. Prior to the beginning of each fiscal year, the annual plan of the foundation must be submitted to the ceo of honorhealth or designee for review and approval. This annual plan shall consist of: (1) the management plan - describing the major objectives and new activities planned during the year. (2) the operating budget - describing the specific costs of carrying out the management plan and operating the organization during the year. Honorhealth's approval for this annual plan shall be required before any funds are expended by the foundation. (b) deviations from the annual plan shall require prior approval of honorhealth. Specifically, approval is required for any unbudgeted action that will result in a change in the operating budget by a substantial amount during a one-year period. (c) financial reporting. The foundation's fiscal year shall correspond with the fiscal year of honorhealth. Financial reports and the annual audit of the foundation shall be submitted to honorhealth for final review and approval. (d) substantial action. The trustees of the foundation shall take no "substantial action" without approval of honorhealth. The term "substantial action" as used in this section shall mean the following: (1) removing or hiring an executive above the vice-president level. (2) repealing, altering, amending or restating these by-laws or the foundation's articles of incorporation. (3) merging with another corporation or entity. (4) dissolving the foundation. (5) guaranteeing the obligations of another entity or individual. (6) selling or transferring all or substantially all of the assets of the foundation. (e) failure to comply. Any actions taken by the foundation's trustees that fall outside of the conditions stipulated in this article will be null and void. Any waiver by honorhealth of its rights or approval under this article shall not constitute a waiver of the requirement of approval on any future actions requiring such approval.”

“THE TAX RETURN IS PREPARED BY HONORHEALTH'S DIRECTOR OF TAX FROM INFORMATION THAT IS GATHERED FROM VARIOUS SOURCES WITHIN THE ORGANIZATION INCLUDING, BUT NOT LIMITED TO, HUMAN RESOURCES, PAYROLL, AND THE LEGAL DEPARTMENT. AN ACCOUNTING FIRM REVIEWS A DRAFT OF THE FORM 990. AN ACCOUNTING FIRM REVIEWS A DRAFT OF THE FORM 990. THE DRAFT 990 IS THEN REVIEWED BY HONORHEALTH'S CHIEF FINANCIAL OFFICER, NETWORK CONTROLLER, VP of Treasury and Investments, GENERAL COUNSEL, AND THE FOUNDATION'S PRESIDENT. COMMENTS FROM THOSE INDIVIDUALS ARE CONSIDERED AND INCORPORATED INTO A FINAL DRAFT. PRIOR TO FILING, THE FORM 990 IS DISTRIBUTED TO THE BOARD OF TRUSTEES OF HONORHEALTH FOUNDATION.”

“HONORHEALTH, ON BEHALF OF THE HONORHEALTH FOUNDATION, MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH EDUCATION AND ANNUAL/ONGOING REPORTING. Directors, officers and key employees are among the individuals required to annually review HonorHealth's Conflict of Interest Policy and complete an annual disclosure statement. The Audit & Compliance department oversees the review of all reported disclosures annually to determine if an actual or perceived conflict exists. Additional information is requested from the disclosing party as necessary. HonorHealth's General Counsel is consulted when possible conflicts are identified. If the reported disclosure can be managed in such a way that a conflict of interest does not present itself, the Audit & Compliance department will derive a management plan which is shared with and agreed upon by the disclosing party. If the reported disclosure cannot be managed in such a way to avoid a conflict, the Audit & Compliance department will discuss options for addressing the conflict with HonorHealth's General Counsel. Possible actions include discontinuance of relationship with HonorHealth, removal from committees, removal from specific employment role, or the termination of a contractual agreement. The Nominating and Governance Committee of the HonorHealth Board receives an annual summary of all disclosed potential or actual conflicts to ensure they have been reviewed and processed in accordance with the HonorHealth Conflict of Interest Policy.”

“PERTINENT HONORHEALTH FOUNDATION POLICIES, DOCUMENTS & FINANCIAL REPORTS INCLUDING IRS FORM 990 ARE AVAILABLE FOR PUBLIC INSPECTION AT THE FOUNDATION OFFICE: 8125 N. HAYDEN ROAD, SCOTTSDALE ARIZONA 85258, DURING NORMAL BUSINESS HOURS WHICH ARE 8:00 AM TILL 5:00 PM MST, MONDAY THROUGH FRIDAY. WRITTEN OR E-MAIL REQUESTS SHOULD BE SUBMITTED TO HANS SIVERTS AT THE ADDRESS LISTED ABOVE OR AT [email protected].”

“Todd LaPorte is the CEO of HonorHealth, a related 501(c)(3) nonprofit Healthcare Organization. The compensation disclosed on Part VII is for services provided to the Health System and not the Foundation. HonorHealth operates nine acute-care hospitals and an expansive medical group with over 200 locations offering comprehensive primary, specialty, and urgent care services. The network also includes advanced cancer care centers, outpatient surgery facilities, clinical research programs, medical education initiatives, and a wide range of community services. With a team of over 17,000 individuals, HonorHealth is committed to improving the health and well-being of the community.”