The Betty Ford Center

“The betty ford center buys operating support services from eisenhower medical center (emc). Aubry serfling is a member of the betty ford center's board of directors, the chief executive officer of emc and a member of the emc board of trustees. Madeline redstone is a member of the betty ford center's board of directors and her spouse is a member of the emc board of trustees. One betty ford center board member is the personal physician to another board member. A betty ford center board member serves on the board of an organization that has a pricing agreement with the betty ford center. A betty ford center board member serves as personal legal counsel to three of the center's executives and has previously represented over 150 staff members in various legal matters.”

“An agreement of merger was filed between hazelden betty ford foundation and the betty ford center, in which, the betty ford center legally dissolved and became a separate operating division of the hazelden betty ford foundation. See attached articles of merger”

“Effective february 7, 2014, the hazelden foundation ("hazelden") was substituted as the sole corporate member of the betty ford center at eisenhower to facilitate the planned statutory merger of the two organizations at january 1, 2015. Hazelden, a 501(c)(3) tax-exempt organization, is considered to be a leader in chemical dependency treatment headquartered in minnesota. Hazelden and its subsidiaries own and operate substance abuse treatment facilities and other programs and services in various sites across the country. Both parties determined that a complete integration and merger of their programs and services would further the mission of both organizations due to identical missions, clinical model rooted in the twelve steps of alcoholics anonymous, and commitment to providing the highest quality of care. The benefits of the merger included operating efficiencies, expanding geographic reach to help more people, combining resources to respond to the needs of health reform and strengthening and enhancing the continuum of program offerings in the communities served by each organization.”

“It is the intent of both the board of trustees of hazelden betty ford foundation and the board of directors of the betty ford center that their boards fully meld together to create one unified board over the combined organizations and affiliated subsidiaries. Upon the effective date of january 1, 2015, in accordance with the revised hazelden foundation bylaws, the initial board of trustees of hazelden betty ford foundation and the initial board of directors of betty ford center shall be comprised of all hazelden foundation and betty ford center directors interested and eligible to serve as board members of hazelden betty ford foundation and betty ford center, as determined pursuant to section 2.2.9 of the bylaws. Thereafter, the hazelden betty ford foundation board membership shall be self perpetuating, and the betty ford center board membership shall be identical to the hazelden betty ford foundation board membership. The president and chief executive officer of hazelden betty ford foundation shall serve on the board of trustees of hazelden betty ford foundation and the board of directors of betty ford center as an ex-officio member with a vote.”

“Each board member is sent a copy of form 990 for review before the form is filed.”

“Officers, directors, foundation trustees and members of senior management are required to complete annual conflict of interest statements which are reviewed by the betty ford center's legal counsel. Conflict of interest policy: betty ford center employees and trustees must avoid conflicts of interest by appropriately arranging outside obligations, financial interests, consultation and other activities that relate to or conflict with their employment or relationship with the betty ford center. Accordingly, employees may not undertake any activity, with or without compensation, which might: a. Interfere with the proper performance of his/her duties; b. Cause loss or cause unfavorable publicity or embarrassment to the betty ford center if disclosed or posted on any social media site/blog; c. Be unethical or unlawful in their relationships with patients and their families, health care practitioners, suppliers, subcontractors and competitors. To ensure compliance with this policy, all employees/trustees must disclose any known or potential conflict of interest as defined in this policy and receive approval prior to undertaking the "questionable" activity. In addition, all management employees shall complete a conflict of interest certification when an external activity may be construed as a conflict of interest. The chief executive officer (ceo) must approve all potential conflict transactions or activities involving employees of betty ford center. The ceo and the chairman, board of directors must approve all potential conflict transactions or activities involving trustees. It is the responsibility of management to ensure that all employees are informed of this policy statement and procedure. A. Definitions 1. Conflict of interest: a conflict of interest is defined as a situation in which an employee, either directly or indirectly through a spouse, parents, children or other family members, has the opportunity, or appears to have the opportunity to influence betty ford center decisions or to use any resources or information which is confidential with respect to the center in ways that could lead to professional, personal or economic gain or give improper advantage to self or associates outside of the center. 2. Significant financial interest: a significant financial interest shall be any interest, fee, salary, dividend, rent or any other form of compensation in excess of $7,500 per annum, or a 1% or greater equity or other financial position (including stock, stock options, warrants, debt, or other securities or ownership interest) in any company or other investment entity which conducts business with bfc, but excluding any interest arising solely by reason of an investment in which the employee owns less than a 1% interest. 3. Professional activity: an outside professional activity shall mean any consultation, employment, scientific advisory role, and participation in any corporation, partnership agreement, business, health care enterprise or any other legal entity. B. Examples of prohibited activities the following activities are considered "prohibited" unless written permission is granted by the ceo or the chairman, board of directors. 1. Any participation in or acceptance of any plan, transaction, or arrangement, which the employee knows or suspects, is unethical or unlawful. 2. Any direct or indirect significant financial interest in any business or health care enterprise that produces services or products which compete or could potentially compete with those of the betty ford center. 3. Disclosure of confidential patient information, financial, operating, medical or other information related to bfc intended to be privileged or confidential to any person or organization. 4. Acceptance for his or her professional activity honoraria, consulting fees or other remuneration in any amount from an individual or company which conducts business with bfc and for which the employee is in a position to make or influence decisions. 5. Serv”

“Compensation levels for the ceo and cfo/treasurer are reviewed by the compensation committee of the board of directors. The review is assisted by the senior vice president for human relations and relies on comparative data obtained from a number of outside sources as well as the periodic assistance of an independent compensation consultant. Other key employees' compensation is periodically reviewed by hr through surveys and 990 information and market adjustments are approved by the ceo where required.”

“The betty ford center does not routinely make its governing documents and conflict of interest policy available to the public, but will consider written requests for this information. Audited financial statements are made available upon request.”

“The organization merged with hazelden betty ford foundation and became an operating division of the foundation. For additional information, please see schedule n.”

“Provision for uncollectible pledges -1,080,055. Changes in endowment draws 229,170.”