Community Hospitals of Central California

“Upon completion of an initial review by senior management, the Chairman of the Board of Trustees forwards the form to the Executive Committee of the Board of Trustees for final review. The finalized Form 990 then becomes a record of the organization's Board of Trustees.”

“Annually each director, principal officer and member of committee with board delegated powers sign a statement which affirms that such person: 1) Has received a copy of the conflicts of interest policy; 2) Has read and understands the policy; 3) Has agreed to comply with the policy; and 4) Understands that the Corporation is a charitable organization and that in order to maintain its federal tax exemption, it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. To ensure that the Corporation operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews are conducted. The periodic reviews, at a minimum, include the following subjects: 1) Whether compensation arrangements and benefits are reasonable and are the result of arm's-length bargaining; 2) Whether acquisitions of physician practices and other provider services result in inurement or impermissible private benefit; 3) Whether partnership and joint venture arrangements and arrangements with management service organizations and physician hospital organizations conform to written policies, are properly recorded, reflect reasonable payments for goods and services, further the Corporation's charitable purposes and do not result in inurement or impermissible private benefit; and 4) Whether agreements to provide health care and agreements with other health care providers, employees, and third party payors further the Corporation's charitable purposes and do not result in inurement or impermissible private benefit.”

“Responsibility for oversight of executive compensation rests with the board's Executive Compensation Subcommittee. The committee will "consider all matters involving compensation and benefits of (i) corporate officers who are classified as "disqualified persons" pursuant to Internal Revenue Code Section 4958; (ii) all other corporate officers who are Senior Vice Presidents and Executive Vice Presidents and (iii) the President/Chief Executive Officer." Through the Executive Compensation Subcommittee, the board has engaged Sullivan, Cotter and Associates, INC. to conduct a total compensation review for those individuals identified in their scope of responsibility.”

“In accordance with generally accepted accounting principles, the organization consolidates the results of its financial operations with those of its nonprofit and forprofit affiliates to issue consolidated financial statements under the business name community medical center. These audited financial statements are publicly available through electronic municipal market access (emma) at emma.msrb.org.”

“MD Supervisory Fees: Program service expenses 245,576. Management and general expenses 325,531. Fundraising expenses 0. Total expenses 571,107. Collection Agencies: Program service expenses 247,914. Management and general expenses 328,630. Fundraising expenses 0. Total expenses 576,544. Other Professional Fees: Program service expenses 975,161. Management and general expenses 1,292,655. Fundraising expenses 0. Total expenses 2,267,816. Other Purchased Services: Program service expenses 7,854,251. Management and general expenses 9,489,837. Fundraising expenses 0. Total expenses 17,344,088. Consult & Mgmt Fees: Program service expenses 131,286. Management and general expenses 174,031. Fundraising expenses 0. Total expenses 305,317.”

“Change in unfunded accumulated pension benefit obligation 10,150,649.”