Covenant Health System Foundation

“Description of classes of members or stockholders covenant health system is the sole corporate member of covenant health system foundation.”

“Description of classes of persons and the nature of their rights covenant health system foundation has a tiered governance in which the corporate member reserves the right to appoint trustees to the covenant health system foundation board. All trustee appointments that come from the covenant health system foundation board as nominations must be approved by the covenant health system, as the corporate member, and the st. Joseph health ministry, as the organizational sponsor.”

“Descr the process used by management &/or governing body to review 990 the form 990 is prepared by the finance department based on information received from various departments of the organization as applicable. The form 990 is then reviewed by an officer of the organization. A copy of the form 990 filing is then distributed to all voting members of the board prior to filing.”

“Description of process to monitor transactions for conflicts of interest officers, trustees and key employees are required to disclose the existence and nature of any actual, apparent, or potential conflicts of interest he/she may have that might result in or have the appearance of a conflict in connection with that individual satisfying their fiduciary obligations to the organization. Disclosures shall be made promptly any time an actual, apparent or potential conflict of interest arises and before the consummation of any contract, transaction or arrangement that is the subject of the potential conflict of interest. With guidance from the st. Joseph health system chief compliance officer (cco), the chief executive and/or the governing board chairperson, as appropriate, considers the matter initially. If the matter cannot be resolved at that level, the matter is escalated to the cco. The cco, in consultation with the st. Joseph health system general counsel, reviews the matter and presents recommendations to the governing board and/or board committee, as appropriate, for discussion and vote. The individual whose potential conflict is being reviewed may be requested to be present during any meeting in which the board or board committee conducts its evaluation but shall be excused for any discussion or vote.”

“Process used to determine compensation the organization's president is paid by its tax exempt parent, covenant health system, and is disclosed as a person paid by a related organization. Executive compensation is approved by the covenant health system worklife committee, which is comprised of independent persons. The committee reviews comparability data prepared for and compiled by the st. Joseph health system worklife committee, a committee of the st. Joseph health system board of trustees comprised of independent members. The st. Joseph health system worklife committee acts in accordance with a committee charter approved by the st. Joseph health system board of trustees and an executive compensation philosophy. The charter directs the st. Joseph health system worklife committee to administer the executive compensation program and to approve program changes, as necessary, to ensure alignment with the stated philosophy and ensure continued compliance with federal and state regulations on behalf of the st. Joseph health system board of trustees. Overall, the philosophy is intended to reward a broad spectrum of high organizational and individual performance expectations, as well as retention of key management talent. The executive compensation philosophy defines the market for administering compensation as a comparable set of for profit and not-for-profit health care delivery systems. St. Joseph health system provides compensation to its executives in the form of base salary, an annual incentive program, and benefits. To ensure compensation philosophy adherence and general fair market value compensation, the committee regularly reviews information from multiple sources of market data and engages legal counsel and consulting support, as needed. They use this information to support ongoing effectiveness and administration of the program. The st. Joseph health system worklife committee meets at least 3 times a year and takes action in executive session. These actions are documented in detailed minutes and approved in subsequent meetings. A full compensation review is conducted on a biennial basis and the last review was performed in june 2013. During the year, the covenant health system worklife committee reviewed and approved any changes in compensation for key executives predicated on the analysis and recommendation by an independent third party consulting firm with expertise in healthcare executive compensation. In addition, annual incentive awards are review and approved prior to payment consistent with the most recent compensation biennial review and in accordance with the plan document. These actions are documented in detailed minutes. Which are subsequently approved at the committee meeting.”

“Avail of gov docs, conflict of interest policy, & fin stmt to gen public the organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request. The sjhs community benefit reports, financial reports, and philanthropy reports are also available on the sjhs internet site.”

“Organization's mission statement as a member of the st. Joseph health system, covenant health system foundation is committed to extending the healing ministry of jesus in the tradition of the sisters of st. Joseph of orange by continually improving the health and quality of life of people in the communities we serve.”

“Program service accomplishments hospice charity care - each year the foundation garners philanthropic dollars for use in support of care for those who otherwise could not afford end-of-life care. Nursing scholarships - various educational scholarships for covenant nursing school students and continuing medical educational courses for working nurses. Each year many students in the covenant school of nursing are granted scholarships. Equipment fund - covenant health system foundation raises funds in order that physicians, nurses and other staff memebers have the best equipment, facilities and service support available for the needs of our patients. Funds raised, supplement the budget of the hospital and allow for additional equipment, facility enhancements and program support in any given year. Examples of foundation purchases for fy14 include: family resource center (children's hospital) teen town (children's hospital) echmo (children's hospital)”

“Descr classes of persons, decisions req appr & type of voting rights the reserved rights in our tiered governance structure contemplate approval by the st. Joseph health system member of financing, budgets, unbudgeted expenditures of defined amounts, strategic plan, appointment of auditors, creation or investment in a legally recognized entity, joint ventures, purposes, sale or disposition of real property, merger or sale of substantially all assets, appointment and removal of trustees, adoption or amendment of articles or bylaws.”