2013-05-14T15:58:34-05:00 2012-09-30 476097913 SEIM JOHNSON LLP 18081 BURT STREET SUITE 200 OMAHA NE 680224722 990 2011-10-01 470375220 MEMORIAL HEALTH CARE SYSTEMS MEMO 4026432971 300 NORTH COLUMBIA AVENUE SEWARD NE 68434 GREG JERGER 4026432971 2013-05-14 1 BARBARA J FAJEN P00400874 4023302660 2011 2016-02-24 21:20:13Z GREG JERGER 300 NORTH COLUMBIA AVENUE SEWARD NE 68434 26585675 0 X WWW.MHCS.US X 1956 NE WE PROVIDE HOSPITAL ACUTE INPATIENT, SKILLED NURSING, AND OUTPATIENT SERVICES FOR THE RESIDENTS OF OUR COMMUNITY. WE PROVIDE FAMILY PRACTICE PHYSICIAN CLINIC SERVICES TO THE COMMUNITIES IN OUR SERVICE AREA. 8 8 287 34 0 117 50624 61739 24960170 25289894 701979 973155 249246 256928 25962019 26581716 0 0 0 0 13661165 14547546 0 0 0 9955152 9628662 23616317 24176208 2345702 2405508 41733037 46208686 3680334 3661705 38052703 42546981 WE ENHANCE THE QUALITY OF LIFE FOR INDIVIDUALS IN OUR COMMUNITIES BY PROVIDING EXCELLENCE IN HEALTH CARE SERVICES IN THE MOST APPROPRIATE SETTINGS. 0 0 10103297 12809163 HOSPITAL OUTPATIENT SERVICES 4218290 5348060 HOSPITAL ACUTE INPATIENT AND SKILLED NURSING SERVICES 6474086 7228719 FAMILY PRACTICE PHYSICIAN CLINIC SERVICES 20795673 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 55 0 1 287 1 1 1 0 0 0 0 0 0 0 0 0 X 8 8 0 0 0 0 1 1 1 1 0 0 0 0 1 1 1 1 1 1 1 0 X GREG JERGER 4026432971 300 NORTH COLUMBIA AVE SEWARD NE 68434 MIKE HECKER 6.00 X X 0 0 0 LARRY LINDQUIST 5.00 X X 0 0 0 JAMES SWANSON 5.00 X X 0 0 0 DONNA HAVENER 4.00 X 0 0 0 STEVE KAYTON 4.00 X 0 0 0 TRISH LINDNER 4.00 X 0 0 0 MARLIN POZEHL 4.00 X 0 0 0 BYRON WINTER 4.00 X 0 0 0 ROGER REAMER 50.00 X 222869 0 27265 GREG JERGER 50.00 X 210337 0 30345 JARED KETNER 55.00 X 270307 0 28955 LORANCE NEWBURN 55.00 X 360143 0 30242 CONNIE NOVAK 55.00 X 259272 0 35813 JAMES PLASEK 55.00 X 364423 0 33550 ROBERT WERGIN 55.00 X 351872 0 41779 2039223 0 227949 15 0 1 0 SAMPSON CONSTRUCTION COMPANY 3730 SOUTH 14TH ST LINCOLN NE 68502 CONSTRUCTION SERVICES 389669 BRYANLGH MEDICAL CENTER 1600 S 48TH STREET LINCOLN NE 68506 DIAGNOSTIC TESTING 282336 ACUTE CARE INC 16009 N ANKENY BLVD ANKENY IA 50023 PHYSICIAN ER SERVICES 246087 SHARED MEDICAL SERVICES PO BOX 330 COTTAGE GROVE WI 53527 DIAGNOSTIC TESTING 116285 SOUTHEAST NEBRASKA MOBILE DIAGNOSTIC SER 245 S 84TH ST LINCOLN NE 68510 DIAGNOSTIC TESTING 109937 5 61739 61739 PRIVATE INSURANCE 621400 13867595 13867595 MEDICARE 621400 9292390 9292390 SELF PAY 624100 1177716 1177716 MEDICAID 621400 934133 934133 HEALTH FAIR 624100 18060 18060 25289894 963151 963151 10184 180 10004 10004 10004 7525 3779 3746 3746 MISCELLANEOUS 624100 104870 96048 8822 DAY CARE REVENUE 624100 101406 101406 DIETARY REVENUE 623990 46906 46906 253182 26581716 25385942 0 1134035 490816 490816 68326 68326 11703605 10257950 1445655 340026 298500 41526 1187486 1042608 144878 757287 640710 116577 24912 24912 30234 30234 2192813 1764710 428103 148827 96297 52530 720879 488484 232395 5990 5990 401117 401117 213 213 1152 1152 1557222 1300770 256452 234303 196527 37776 MEDICAL SUPPLIES 3520822 3520822 BAD DEBTS 587974 587974 DUES & SUBSCRIPTIONS 92899 50070 42829 TRAINING & EDUCATION 83674 49114 34560 25631 24339 1292 24176208 20795673 3380535 0 250 350 17675139 18313904 2883144 3583578 608325 635917 181169 254679 29045592 16228764 11541842 12816828 2159889 1907746 6016035 7851603 667244 844081 41733037 46208686 2489584 2803967 1190750 857738 3680334 3661705 X 30532255 32915524 39302 311798 7481146 9319659 38052703 42546981 41733037 46208686 X 2405508 2088770 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 4137 4137 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: A PORTION OF DUES PAID TO NHA AND AHA IS DEDICATED TO LOBBYING ACTIVITIES. 1504413 2945 272496 1779854 1549141 4020 -48748 1504413 655664 823751 69726 1549141 578536 520 76608 655664 0.00000 1.00000 0.00000 0 0 320907 320907 9571656 5875259 3696397 17150938 9748889 7402049 2002091 604616 1397475 12816828 BENEFICIAL INTEREST IN A PERPETUAL TRUST 7851603 F 7851603 EST. THIRD PARTY SETTLEMENTS 13829 DEFERRED COMPENSATION LIABILITY 843909 857738 26581716 24176208 2405508 253202 1835568 2088770 4494278 28670486 253202 1835568 2088770 26581716 0 26581716 24176208 0 24176208 0 24176208 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: INCOME FROM THE HOSPITAL ENDOWMENT FUND WILL BE USED FOR MEMORIAL HOSPITAL TO ENHANCE AND IMPROVE THE QUALITY OF HOSPITAL SERVICES PROVIDED TO THE COMMUNITY. THIS COULD TAKE THE FORM OF KEEPING UP WITH CHANGING TECHNOLOGY, ACQUIRING THE BEST EQUIPMENT, OR IMPROVING OUR BUILDING FACILITIES. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN BENEFICIAL TRUST 1,835,568. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN BENEFICIAL TRUST 1,835,568. 1 1 1 X 1 X 1 1 1 0 0 201781 201781 0.00860 1247764 989718 258046 0.01090 1449545 989718 459827 0.01950 1449545 989718 459827 0.01950 0 587974 0 9238249 9371648 -133399 X 1 1 1 1 MEMORIAL HOSPITAL

300 N COLUMBIA AVE SEWARD NE 68434

X X X X MEMORIAL HEALTH CARE SYSTEMS 1 0 1 1 150.000000000000 1 250.000000000000 1 X X X 1 1 X X 1 0 1 X 0 0 4 SEWARD FAMILY MEDICAL CENTER

250 N COLUMBIA AVE SEWARD NE 68434

RURAL HEALTH CLINIC SEWARD FAMILY PHARMACY

250 N COLUMBIA AVE SEWARD NE 68434

PHARMACY - CONVENIENCE OF PATIENT/EMPLOYEE MILFORD FAMILY MEDICAL CENTER

119 S C ST MILFORD NE 68405

RURAL HEALTH CLINIC UTICA FAMILY MEDICAL CENTER

100 4TH ST UTICA NE 68456

RURAL HEALTH CLINIC PART I, LINE 7: THE ORGANIZATION USED THE COST-TO-CHARGE RATIO FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES, PROVIDED BY THE IRS IN THE INSTRUCTIONS OF FORM 990, SCHEDULE H. PART I, LINE 7G: THERE ARE NO COSTS REPORTED ON LINE 7G. THEREFORE, THERE WOULD BE NO COSTS ATTRIBUTABLE TO A PHYSICIAN CLINIC INCLUDED ON LINE 7G. PART I, L7 COL(F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 24, COLUMN (A) BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $587,974. PART II: THERE ARE NO COMMUNITY BUILDING ACTIVITIES TO REPORT. PART III, LINE 4: THERE IS NO FOOTNOTE IN THE ORGANIZATION'S FINANCIAL STATEMENTS THAT DESCRIBES BAD DEBT EXPENSE. HOWEVER, THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "PATIENT ACCOUNTS RECEIVABLE, NET":THE SYSTEM REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTIBILITY OF ACCOUNTS RECEIVABLE, THE SYSTEM ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE SYSTEM ANALYZES CONTRACTUALLY DUE AMOUNTS AND ESTIMATES A PERCENTAGE OF THOSE ACCOUNTS THAT WILL TRANSITION TO SELF-PAY PATIENTS BASED ON HISTORICAL ANALYSIS. THE ESTIMATED PERCENTAGE OF THOSE TRANSITION ACCOUNTS ARE ADDED TO RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL). THE SYSTEM RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR THE DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS.PAYMENT FOR SERVICES IS EXPECTED WITHIN THIRTY DAYS OF RECEIPT OF THE BILLING. ACCOUNTS CONSIDERED PAST DUE ARE SENT TO COLLECTION AGENCIES WHEN EXTERNAL COLLECTION EFFORTS HAVE BEEN UNSUCCESSFUL. ANY AMOUNTS DEEMED UNCOLLECTIBLE ARE WRITTEN OFF ON A MONTHLY BASIS. THE SYSTEM DOES NOT CHARGE INTEREST ON OUTSTANDING BALANCES OWED.THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "NET PATIENT SERVICE REVENUE":NET PATIENT SERVICE REVENUE IS REPORTED AT THE ESTIMATED NET REALIZABLE AMOUNTS FROM PATIENTS, THIRD-PARTY PAYORS, AND OTHERS FOR SERVICES RENDERED, INCLUDING ESTIMATED RETROACTIVE ADJUSTMENTS UNDER REIMBURSEMENT AGREEMENTS WITH THIRD-PARTY PAYORS. RETROACTIVE ADJUSTMENTS ARE ACCRUED ON AN ESTIMATED BASIS IN THE PERIOD THE RELATED SERVICES ARE RENDERED AND ADJUSTED IN FUTURE PERIODS AS FINAL SETTLEMENTS ARE DETERMINED.THE FOLLOWING IS THE TEXT OF THE FOOTNOTE TITLED "CHARITY CARE":THE SYSTEM PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED RATES. BECAUSE THE SYSTEM DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED IN THE STATEMENTS OF OPERATIONS.THE SYSTEM IS DEDICATED TO PROVIDING COMPREHENSIVE HEALTHCARE SERVICES TO ALL SEGMENTS OF SOCIETY, INCLUDING THE AGED AND OTHERWISE ECONOMICALLY DISADVANTAGED. IN ADDITION, THE SYSTEM PROVIDES A VARIETY OF COMMUNITY HEALTH SERVICES AT OR BELOW COST.THERE IS LIKELY A PORTION OF THE BAD DEBT THAT SHOULD BE CONSIDERED COMMUNITY BENEFITS AS SOME OF THOSE PEOPLE LIKELY WOULD HAVE QUALIFIED FOR CHARITY CARE. HOWEVER, THE ORGANIZATION IS UNABLE TO DETERMINE AN ESTIMATED AMOUNT FOR THIS AND HAVE NOT INCLUDED ANY OF THE COST OF BAD DEBTS ON PART III, LINE 3. PART III, LINE 8: THE ORGANIZATION USED VARIOUS WORKSHEETS FROM THE MEDICARE COST REPORT FOR THE YEAR ENDED SEPTEMBER 30, 2012 TO CALCULATE PART III, LINES 5 AND 6. MEDICARE CURRENTLY PAYS CRITICAL ACCESS HOSPITALS (CAH) 101% OF ALLOWABLE COSTS. MEDICARE PAYS THE ORGANIZATION'S RURAL HEALTH CLINICS (RHC) AT COST SUBJECT TO CERTAIN LIMITS. THERE IS GENERALLY NO MEDICARE SHORTFALL ON CAH SERVICES. THE SHORTFALL IS MAINLY GENERATED BY NON-RHC PHYSICIAN SERVICES THAT ARE PAID UNDER THE MEDICARE FEE SCHEDULE. MEDICARE SHORTFALLS IN PAYMENT SHOULD BE CONSIDERED A COMMUNITY BENEFIT AS IT IS PART OF THE ORGANIZATION'S MISSION TO PROVIDE THESE SERVICES EVEN IF MEDICARE REIMBURSEMENT IS BELOW COST. PART III, LINE 9B: PATIENTS THAT ARE KNOWN TO QUALIFY FOR CHARITY CARE EITHER RECEIVE FREE EMERGENCY AND URGENT CARE IN THE HOSPITAL IF THEY ARE AT OR BELOW 150% OF POVERTY, OR A SLIDING DISCOUNT IF THEY ARE AT OR BELOW 250% OF POVERTY. SHOULD THESE PATIENTS OWE A PORTION OF THEIR BILL, THE ORGANIZATION FOLLOWS THE SAME COLLECTION POLICY AS IT DOES FOR PATIENTS WHO DO NOT QUALIFY FOR CHARITY CARE. PART VI, LINE 2: THE ORGANIZATION IS GOVERNED BY A VOLUNTEER BOARD OF DIRECTORS WHICH HAS 8 MEMBERS FROM THE COMMUNITY. THE BOARD OF DIRECTORS ASSISTS HOSPITAL ADMINISTRATION IN IDENTIFYING SERVICES NEEDED BY THE COMMUNITIES SERVED. PART VI, LINE 3: THE BUSINESS OFFICE IS EDUCATED ON HOW TO INFORM PATIENTS ABOUT THE PROCESS OF APPLYING FOR MEDICAID COVERAGE. THE OPPORTUNITY FOR FINANCIAL ASSISTANCE THROUGH OUR CHARITY CARE POLICY IS LISTED ON THE ORGANIZATION'S WEB-SITE, AND A STATEMENT ABOUT THIS IS INCLUDED WITH THE FINANCIAL AGREEMENT EACH PATIENT SIGNS AND IS ALSO INCLUDED WITH BILLINGS STATEMENTS SENT TO THE PATIENT. PART VI, LINE 4: THE ORGANIZATION'S PRIMARY SERVICE AREA IS SEWARD COUNTY, NEBRASKA, WHICH HAS A POPULATION OF AROUND 17,000. IT MAINLY PROVIDES PRIMARY CARE SERVICES WITH SOME SPECIALTY CARE OFFERED BY VISITING SPECIALISTS THAT PRACTICE HERE MAINLY OUT OF LINCOLN, NEBRASKA. PART VI, LINE 5: THE ORGANIZATION OFFERS EXTENSIVE HEALTHCARE AND WELLNESS EDUCATION TO THE COMMUNITY ON AN ON-GOING BASIS. THE COSTS FOR THESE SERVICES ARE NOT SEPARATELY IDENTIFIED AS "COMMUNITY BENEFIT" EXPENSES ELSEWHERE IN THIS RETURN. IT IS LIKELY THESE COSTS EXCEED $100,000 PER YEAR, AND THERE IS NO OFFSETTING REVENUE. THE HOSPITAL MAINTAINS AN OPEN MEDICAL STAFF AND HAS A GOVERNING BOARD OF DIRECTORS WHICH ARE ALL MEMBERS OF THE COMMUNITY SERVED. ALL SURPLUS FUNDS ARE USED TO FURTHER THE MISSION OF PROVIDING EXCELLENT HEALTHCARE SERVICES TO THE MEMBERS OF THE COMMUNITIES SERVED. PART VI, LINE 6: N/A X 1 1 X X X 0 1 0 1 0 0 0 0 0 ROGER REAMER 188294 0 34575 0 0 0 6515 0 20750 0 250134 0 0 0 GREG JERGER 176906 0 33431 0 0 0 6271 0 24074 0 240682 0 0 0 JARED KETNER 158487 0 111820 0 0 0 7350 0 21605 0 299262 0 0 0 LORANCE NEWBURN 158487 0 201656 0 0 0 7350 0 22892 0 390385 0 0 0 CONNIE NOVAK 158487 0 100785 0 0 0 7350 0 28463 0 295085 0 0 0 JAMES PLASEK 158487 0 205936 0 0 0 7350 0 26200 0 397973 0 0 0 ROBERT WERGIN 158487 0 193385 0 0 0 25350 0 16429 0 393651 0 0 0 PART I, LINE 1A THE ORGANIZATION PROVIDES A SECTION 162 BONUS PLAN IN WHICH THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER RECEIVE TAXABLE COMPENSATION ON AN ANNUAL BASIS TO PURCHASE LIFE INSURANCE AND/OR DISABILITY INSURANCE. THE BONUS PLAN AND AMOUNT WERE ESTABLISHED BY THE BOARD OF DIRECTORS AND ARE GROSSED-UP PER THE PLAN DESIGN IN ORDER TO PROVIDE A FIXED AMOUNT AFTER TAXES THAT IS AVAILABLE FOR INSURANCE PREMIUMS. THE FULL TAXABLE AMOUNT IS INCLUDED IN BOX 5 OF THE W-2 AND HAS BEEN INCLUDED IN PART II OF THIS SCHEDULE J UNDER COLUMN B(II). PART I, LINE 4B $18,000 WAS CONTRIBUTED INTO A 457(F) DEFERRED COMPENSATION PLAN FOR ROBERT WERGIN, MD. PART I, LINE 5 PHYSICIANS RECEIVE BONUSES BASED ON THEIR INDIVIDUAL PROFESSIONAL CHARGES. FORM 990, PART VI, SECTION A, LINE 6 MEMORIAL HEALTH CARE SYSTEMS IS A CORPORATION THAT HAS MEMBERS. ANYONE DONATING $100 TO MEMORIAL HEALTH CARE SYSTEMS CAN FILL OUT AN APPLICATION AND BECOME A MEMBER. MEMORIAL HEALTH CARE SYSTEMS CURRENTLY HAS ABOUT 604 CORPORATE MEMBERS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF MEMORIAL HEALTH CARE SYSTEMS (AS DESCRIBED ON FORM 990, PART VI, SECTION A, LINE 6) ELECT THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B THE MEMBERS OF MEMORIAL HEALTH CARE SYSTEMS (AS DESCRIBED ON FORM 990, PART VI, SECTION A, LINE 6) APPROVE ANY CHANGES IN THE ARTICLES OF INCORPORATION AND ANY CHANGES TO THE BYLAWS THAT EFFECT THE ELECTION OF THE BOARD OF DIRECTORS (VOTING RIGHTS). THE MEMBERS WOULD ALSO APPROVE ANY SIGNIFICANT DECISIONS, SUCH AS THE SALE OR MERGER OF THE CORPORATION OR A SALE OF ALL OF THE ASSETS OF THE CORPORATION. FORM 990, PART VI, SECTION A, LINE 8B THERE ARE NO COMMITTEES WITH THE AUTHORITY TO ACT ON BEHALF OF THE BOARD. ANY COMMITTEE WHICH REPORTS TO THE BOARD HAS ITS REPORT DOCUMENTED IN THE MINUTES OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE CHIEF FINANCIAL OFFICER IS RESPONSIBLE FOR THE TIMELY FILING OF THE FORM 990 AND ENSURING COMPLIANCE WITH ALL RELATED RULES AND REGULATIONS. THE ACTUAL FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM. ALL INFORMATION IS PROVIDED BY THE ORGANIZATION TO THE ACCOUNTING FIRM WHO THEN PREPARES THE FORM 990 FOR SUBMITTAL TO THE IRS. PRIOR TO SUBMISSION TO THE IRS, THE CFO OF THE ORGANIZATION WILL REVIEW THE FORM 990 AND APPROVE IT FOR SUBMITTAL. A COPY OF THE FORM 990 WILL BE MADE AVAILABLE TO THE BOARD OF DIRECTORS AFTER THE FORM 990 IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EACH MEMBER OF THE BOARD OF DIRECTORS AND ALL SENIOR MANAGEMENT OFFICIALS OF THE ORGANIZATION FILE AN ANNUAL CONFLICT OF INTEREST FORM IN WHICH THEY ARE REQUIRED TO LIST ALL CONFLICTS OF INTEREST. ADMINISTRATION REVIEWS THE ANNUAL CONFLICT OF INTEREST STATEMENTS AND ALL CONFLICTS ARE REPORTED TO THE BOARD CHAIRPERSON. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS PERFORMS AN ANALYSIS OF THE FAIR MARKET VALUE OF COMPENSATION FOR BOTH THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. LONGEVITY, QUALITY OF THE HEALTHCARE SERVICES PROVIDED, COMMUNITY PERCEPTION, AND FINANCIAL PERFORMANCE ARE ALL FACTORED INTO THE ANALYSIS. THE BOARD OF DIRECTORS THEN APPROVES THE COMPENSATION PACKAGES. THE LAST FULL REVIEW AND ANALYSIS WAS DONE IN DECEMBER 2008 AND ANNUAL COMPENSATION WAS SET UNDER THE CEO CONTRACT FOR A 5 YEAR PERIOD OF 2009 THROUGH 2013. THE CFO COMPENSATION WAS REVIEWED BY THE BOARD OF DIRECTORS AT THE SAME TIME AND THE CEO WAS DELEGATED THE AUTHORITY TO ADJUST AND MONITOR CFO COMPENSATION WITHIN THE PARAMETERS SET BY THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR ITS FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC. HOWEVER, THE CORPORATE MEMBERSHIP OF THE ORGANIZATION CONSISTS OF OVER 600 MEMBERS OF THE COMMUNITY SERVED. THE CORPORATE MEMBERSHIP APPROVES THE ARTICLES OF INCORPORATION AND THEY RECEIVE AN ANNUAL REPORT OF OPERATIONS CONTAINING SUMMARY FINANCIAL STATEMENTS. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 253,202. CHANGE IN INTEREST IN BENEFICIAL TRUST 1,835,568. TOTAL TO FORM 990, PART XI, LINE 5: 2,088,770. FORM 990, PART XI, LINE 2C: THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF THE INDEPENDENT ACCOUNTANT. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR.