Silverton Health DBA Legacy Silverton Health

“Prior to the affiliation with legacy Health, THE HOSPITAL CONTRACTed WITH A THIRD-PARTY NONPROFIT CORPORATION TO PROVIDE VARIOUS MANAGEMENT SERVICES, INCLUDING FINANCIAL SERVICES, GROUP PURCHASING AND PATIENT ACCOUNTING SERVICES. Legacy Health provides management services for all of its affiliated companies which includes accounting, purchasing, contracting, legal, human resources, information technology, billing, facilities, budgeting, transcription, security, public relations, strategic planning, organization development.”

“The articles of incorporation and bylaws were amended as of May 31, 2016 pursuant to a new affiliation with Legacy Health.”

“Legacy Health became the sole corporate member of the organization during the year.”

“Legacy Health, as the sole corporate member of the organization, has the power to approve or reject members of the governing body.”

“Legacy Health, as the sole corporate member of the organization, has the ability to approve or reject some governance decisions.”

“Form 990 was reviewed by Legacy's Director of Tax and Interim CFO. Due to the affiliation with Legacy, the returns will be presented to the governing board and reviewed in conjunction with the other Legacy returns at a later date.”

“The conflict of interest policy is sent out annually for officers, directors, trustees and key employees to review the policy and complete the conflict of interest statement. Any conflicts are disclosed to the board and the board votes on whether a conflict exists. If a conflict does exist, alternatives will be looked at with possibly an external party to avoid a conflict. If none exists, the board shall determine by majority vote whether the transaction is in the organization's best interest and fair and reasonable and will make a determination as to whether to enter into the transaction.”

“The following describes the compensation practices of Legacy and its affiliates. Executive compensation for Legacy is designed to recruit, retain and motivate qualified senior management personnel. The comprehensive compensation plan is designed for positions that have a significant impact on the high-level strategic and policy direction of Legacy and its affiliates. Base pay and total compensation (including incentive compensation) for similar positions is established at a level comparable to market compensation for healthcare organizations. External consultants are regularly used to review published compensation surveys of comparable organizations and comparable benchmark positions in the market. The Compensation Committee of the Board of Directors, none of whom is a Legacy employee, reviews the compensation for key executive positions. The Committee oversees the system's governance procedures with respect to the evaluation of reasonableness of compensation. The Committee reports to the Board in sufficient detail to enable the entire Board to take such actions as are required to obtain the rebuttable presumption of reasonableness. The Compensation Committee also reviews tax-reporting disclosures.”

“The organization's governing documents, conflict of interest policy and financial statements are made available to the public upon request.”

“BOOK/TAX DIFFERENCE FROM PASSTHROUGH INVESTMENTs -104,509.”