Deaconess Regional Healthcare Services

“William Davis, Illinois Region President, Amber Lipe, CFO, and Dana Dalton are employed by Deaconess Health System, an unrelated organization. Compensation is provided by Deaconess Health System through a management agreement for services to Deaconess Illinois Red Bud Regional Hospital, Deaconess Illinois Union County Hospital, Deaconess Illinois Crossroads, and Deaconess Regional Healthcare Services Illinois. All four are related entities. The Illinois Region President position has the responsibility of supervising the management, administration, and operation of the organizations. The CFO has the responsibility for managing the financial operations of the organizations. The CNO oversees and leads the nursing and patient care services. Calendar year 2023 compensation and benefits is provided below. Compensation Benefits William Davis 323,636 21,697 Amber Lipe 329,969 1,007 Dana Dalton 261,825 22,186”

“Deaconess Health System, Inc. has authority to appoint and remove two Directors.”

“At least one of the two Deaconess Health System, Inc. Directors must approve the following actions along with affirmative vote of two-thirds of all serving Directors. 1. Approval of any capital and operating budgets for the Corporation, or of any amount that is un-budgeted and in excess of an agreed upon threshold over budgeted amounts approved in an annual capital or operating budget. 2. Any acquisition, purchase, sale, lease, mortgage, or other transfer or encumbrance of any property in excess of $500,000 or any real property of the Corporation, irrespective of the value, or any affiliation or management agreement, or any creation or substantive amendment of any agreement to which the Corporation is a party which involves an obligation, or a potential obligation, on the part of the Corporation, including without limitation any borrowings or guarantees, in excess of an agreed upon threshold set by Board policy; 3. Creation, elimination or modification of any Board policy or policies. 4. Any dissolution, merger, consolidation, change of control, sale, or other corporate restructuring of the Corporation, or the filing of any voluntary petition in bankruptcy or any other petition or pleading seeking any reorganization, receivership or similar relief under federal or state law. 5. Creation, ownership, or acquisition (whether in whole or in part) and dissolution of any subsidiary or affiliate of the Corporation. 6. Any of the foregoing reserve powers with respect to any subsidiary or affiliate of the Corporation”

“The Organization does not have committees with authority to act on behalf of the governing body.”

“The Form 990 is provided to the board before it is filed. The CEO and CFO review the Form 990.”

“Conflict of interest review and compliance is completed on an annual basis or as conflicts arise by officers, directors, and key employees. These individuals are required to complete a conflict of interest questionnaire. The document serves to ensure interested persons have an appropriate and timely manner in which to disclose any potential conflicts. Conflicts are considered with respect to outside interest, investments, outside activities, and business interests among the interested persons as well as their family members. On a periodic basis, reviews occur to ensure the Corporation operates in a manner consistent with its charitable purpose. The Board officers and CEO review and investigate any potential conflicts. An interested person with a conflict will abstain from voting on the matter and may be asked to leaving the meeting.”

“Compensation for the CEO and CFO is determined and approved by the Deaconess Health System's Compensation Committee. Deaconess Regional Healthcare Services Illinois board can only make recommendation to the Deaconess Health System's Compensation Committee. The Compensation Committee is appointed by the Board of Directors of Deaconess Health System Inc. and must meet independence requirements. The Committee has the power and authority to: 1. Annually review, approve, and recommend to the Board of Directors for its final approval for the Executive compensation. 2. Monitor broadly the structure, philosophy or competitiveness of the system's general hiring or compensation practices. 3. Oversee the establishment and administration of the company's broad-based benefit plans and programs. 4. Review or approve significant amendments or changes to the plans and programs. 5. Retain and terminate any compensation consultant to be used to assist in the evaluation of compensation. 6. Sole authority to approve the consultant's fees and other retention terms. 7. Obtain advice and assistance from internal or external legal, accounting, or other advisors. 8. Make regular reports to the board.”

“The Organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“Purchased Services: Program service expenses 2,381,043. Management and general expenses 19,279,045. Fundraising expenses 0. Total expenses 21,660,088. Medical Professional Fees: Program service expenses 2,452,011. Management and general expenses 2,298. Fundraising expenses 0. Total expenses 2,454,309.”

“During 2024, the Organization identified misstatements within the 2023 financial statements related to the recognition of the forgiveness of a portion of the note payable and recognition of the contribution received by the reduction of the note payable in the amount of $2,000,000.”