2012-08-10T10:52:29-05:00 2011-09-30 MOSS ADAMS LLP 101 SECOND STREET 9TH FLOOR SAN FRANCISCO CA 94105 990 2010-10-01 941502014 SOUTHERN MONTEREY COUNTY MEMORIAL HOSP DBA GEORGE L MEE MEMORIAL HOSPITAL SOUT 8313856000 300 CANAL STREET KING CITY CA 93930 SUSAN CHILDERS 8313856000 2012-07-23 1 RENIE BURBANK 4159561500 2010 2016-02-24 21:20:13Z SUSAN M CHILDERS 300 CANAL STREET KING CITY CA 93930 69406353 0 X WWW.MEEMEMORIAL.COM X 1964 CA THE HOSPITAL PROVIDES COMPREHENSIVE MEDICAL CARE TO THE LOCAL COMMUNITY AND OUTLYING AREAS WITHIN A 50-MILE RADIUS. 9 6 650 40 0 0 120196 119031 68755087 68451371 904 447 584125 835504 69460312 69406353 0 0 0 0 38691644 36596136 0 0 0 29712932 31125605 68404576 67721741 1055736 1684612 38012500 35888773 52726699 48918360 -14714199 -13029587 THE HOSPITAL PROVIDES COMPREHENSIVE MEDICAL CARE TO THE LOCAL COMMUNITY AND OUTLYING AREAS WITHIN A 50-MILE RADIUS. 0 0 54974584 69247303 THE HOSPITAL, IS A 119-BED LICENSED FACILITY THAT PROVIDES COMPREHENSIVE MEDICAL CARE TO THE LOCAL COMMUNITY AND OUTLYING AREAS WITHIN A 50-MILE RADIUS. TYPES OF CARE OFFERED ARE ACUTE, LONG-TERM, AND RURAL HEALTH CLINIC SERVICES. OVER THE FISCAL YEAR, TOTAL PATIENT DAYS WERE 30,756, AND TOTAL PATIENTS TREATED WERE 41,232. 54974584 1 1 0 0 0 0 0 0 0 0 1 0 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 1 135 0 1 650 1 0 0 0 0 0 0 0 0 0 1 0 X 9 6 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 1 1 0 X RUDY ANGELES 8313867327 300 CANAL STREET KING CITY CA 93930 X LEX SMITH 40.00 X X 254207 0 54110 ROGER BORZINI 2.00 X 0 0 0 JANET BUTTGEREIT 2.00 X 0 0 0 JIM LARSON 2.00 X 0 0 0 PAULETTE BUMBALOUGH 2.00 X 0 0 0 SARAH NASH 2.00 X 0 0 0 JOHN MYERS 2.00 X 0 0 0 LEOPOLD GRAUPERA 40.00 X 316987 0 67473 ROY SCHINDELHEIM 40.00 X 217780 0 46356 SUSAN M CHILDERS 40.00 X 200189 0 42612 RAYE BURKHARDT 40.00 X 209350 0 44562 ARLENE KIEPEK 40.00 X 0 0 0 KEN JOYNER 40.00 X 140851 0 29981 OBILOH EGU 40.00 X 318258 0 67743 JOHN FEJES 40.00 X 317777 0 67641 SANDRA MONTIJO 40.00 X 222355 0 47330 BRUCE GREENBERG 40.00 X 213920 0 45534 ANUNYA HARANRATTANA 40.00 X 197597 0 42060 2609271 0 555402 60 0 1 0 XTEND HEALTHCARE PO BOX 1709 HENDERSONVILLE TN 37077 PATIENT AR BILLING & COLLECTIONS AGENCY 1374056 MONTEREY ANESTHESIA PROFESSIONALS 1522 CONSTITUTION BLVD123 SALINAS CA 93905 MEDICAL SERVICES 1218751 STAFF CARE PO BOX 281923 ATLANTA GA 30384 MEDICAL SERVICES 562111 MEDICAL DOCTORS ASSOCIATES PO BOX 277185 ATLANTA GA 303857185 MEDICAL SERVICES 431149 LETITIA BRADFORD 7485 RUSH RVR SUITE 710-323 SACRAMENTO CA 95831 MEDICAL SERVICES 313672 21 119031 119031 PATIENT SERVICE REV. 621400 68451371 68451371 68451371 447 447 39572 39572 39572 39572 OTHER OPERATING INCOME 900099 655859 655859 CAFETERIA 900099 106731 106731 REBATES/REFUNDS 900099 33342 33342 795932 69406353 69247303 0 40019 1324994 813719 511275 25876064 21501098 4374966 -1601394 -1381031 -220363 8877460 7343711 1533749 2119012 1809946 309066 18136 15759 2377 287789 287789 42403 42403 6198614 6198614 1399111 833038 566073 1626504 1397486 229018 2254098 1938524 315574 1379903 1186717 193186 BAD DEBT EXPENSE 7901680 7901680 OTHER PURCHASED SERVICE 4005393 664538 3340855 MEDICAL SUPPLIES 3402076 3402076 2609898 1348709 1261189 67721741 54974584 12747157 0 1787 1361287 636416 0 12232725 10438266 654170 599424 483457 477192 41974688 19259608 23332306 22715080 12518 12518 659121 285006 38012500 35888773 11347821 13701932 958973 10772809 10467393 14832083 13440063 1910306 1597449 13863680 8752550 52726699 48918360 X -14714199 -13029587 -14714199 -13029587 38012500 35888773 1684612 0 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1412182 1412182 27433036 9397958 18035078 11981555 9273786 2707769 1147915 587864 560051 22715080 ACCRUED INTEREST PAYABLE 4349991 ESTIMATED THIRD PARTY PAYOR SETTLEMENTS 446887 SELF INSURED HEALTH CARE CLAIMS 878000 LITIGATION RESERVE 3077672 8752550 69406353 67721741 1684612 0 1684612 69406353 0 69406353 0 69406353 67721742 1 1 67721741 0 67721741 PART XIII, LINE 2D - OTHER ADJUSTMENTS: ROUNDING ADJUSTMENT 1. 1 1 X 1 X 1 X 1 0 0 854695 854695 0.01430 27678548 23485630 4192918 0.07010 28533243 23485630 5047613 0.08440 28533243 23485630 5047613 0.08440 1 2668324 8306162 9815358 -1509196 X 1 1 1 1 GEORGE L MEE MEMORIAL HOSPITAL

300 CANAL STREET KING CITY CA 93930

X X X GEORGE L MEE MEMORIAL HOSPITAL 1 1 1 350.000000000000 1 350.000000000000 1 X X X X X X X 1 1 X X X X 1 X X 1 X X X X X X X X 1 X 0 0 5 KING CITY CLINIC

210 CANAL STREET KING CITY CA 93930

RURAL HEALTH CLINIC SPECIALTY CLINIC

400 CANAL STREET SUITE B KING CITY CA 93930

HEALTH CLINIC FAMILY MEDICAL CENTER

400 CANAL STREET SUITE A KING CITY CA 93930

HEALTH CLINIC WOMENS CENTER

400 CANAL STREET SUITE C KING CITY CA 93930

HEALTH CLINIC GREENFIELD CLINIC

467 EL CAMINO REAL GREENFIELD CA 93927

RURAL HEALTH CLINIC PART I, LINE 7: COST TO CHARGE RATIO WAS USED TO CALCULATE THE COMMUNITY BENEFIT EXPENSE ON PART I, LINE 7B. THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES. PART I, LINE 7, COLUMN (F): THE BAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25, COLUMN (A), BUT SUBTRACTED FOR PURPOSES OF CALCULATING THE PERCENTAGE IN THIS COLUMN IS $ 7901680. FINANCIAL ASSISTANCE AT COST: PART I, LINE 7 THE HOSPITAL ACCEPTS ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY. A PATIENT IS CLASSIFIED AS A CHARITY PATIENT BY REFERENCE TO CERTAIN ESTABLISHED POLICIES OF THE HOSPITAL. ESSENTIALLY, THESE POLICIES DEFINE CHARITY SERVICES AS THOSE SERVICES FOR WHICH NO PAYMENT IS ANTICIPATED. BECAUSE THE HOSPITAL DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS NET PATIENT SERVICE REVENUES. SERVICES PROVIDED ARE RECORDED AS GROSS PATIENT SERVICE REVENUES AND THEN WRITTEN OFF ENTIRELY AS AN ADJUSTMENT TO NET PATIENT SERVICE REVENUES.THE HOSPITAL MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE AND COMMUNITY SERVICE IT PROVIDES. THESE RECORDS INCLUDE: THE AMOUNT OF CHARGES FOREGONE, (BASED ON ESTABLISHED RATES), FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE AND COMMUNITY SERVICE POLICIES, THE ESTIMATED COST OF THOSE SERVICES AND SUPPLIES, AND STATISTICS QUANTIFYING THE LEVEL OF CHARITY CARE AS A PERCENTAGE OF EXPENSES OF THE HOSPITAL AS A WHOLE. PART III, LINE 4: BAD DEBT:THE HOSPITAL USES "CHARITY CARE" FOOTNOTES TO DESCRIBE BAD DEBT EXPENSE:THE HOSPITAL ACCEPTS ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY. A PATIENT IS CLASSIFIED AS A CHARITY PATIENT BY REFERENCE TO CERTAIN ESTABLISHED POLICIES OF THE HOSPITAL. ESSENTIALLY, THESE POLICIES DEFINE CHARITY SERVICES AS THOSE SERVICES FOR WHICH NO PAYMENT OR PARTIAL PAYMENT IS ANTICIPATED. BECAUSE THE HOSPITAL DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS NET PATIENT SERVICE REVENUES. SERVICES PROVIDED ARE RECORDED AS GROSS PATIENT SERVICE REVENUES AND THEN WRITTEN OFF ENTIRELY AS AN ADJUSTMENT TO NET PATIENT SERVICE REVENUES. THE HOSPITAL MAINTAINS RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE AND COMMUNITY SERVICE IT PROVIDES. THESE RECORDS INCLUDE: THE AMOUNT OF CHARGES FOREGONE, (BASED ON ESTABLISHED RATES), FOR SERVICES AND SUPPLIES FURNISHED UNDER ITS CHARITY CARE AND COMMUNITY SERVICE POLICIES, THE ESTIMATED COST OF THOSE SERVICES AND SUPPLIES, AND STATISTICS QUANTIFYING THE LEVEL OF CHARITY CARE AS A PERCENTAGE OF EXPENSES OF THE HOSPITAL AS A WHOLE.THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOTNOTE DESCRIBING BAD DEBT EXPENSE. IF THE SELF-PAY ACCOUNT REMAINS OPEN AND UNPAID FOR 120 DAYS POST INSURANCE DETERMINATION, THE ACCOUNT IS REVIEWED. ANY BALANCE IN THE ACCOUNT THAT HAS NOT BEEN IDENTIFIED TO BE ON A PAYMENT PLAN IS CONSIDERED TO BE A BAD DEBT. NET PATIENT ACCOUNTS RECEIVABLE FOOTNOTE: PATIENT ACCOUNTS RECEIVABLE CONSIST OF AMOUNTS OWED BY VARIOUS GOVERNMENTAL AGENCIES, INSURANCE COMPANIES, AND PRIVATE PATIENTS. THE HOSPITAL MANAGES ITS RECEIVABLES BY REGULARLY REVIEWING THE ACCOUNTS, INQUIRING WITH RESPECTIVE PAYORS AS TO COLLECTABILITY AND PROVIDING FOR ALLOWANCES ON THEIR ACCOUNTING RECORDS FOR ESTIMATED CONTRACTUAL ADJUSTMENTS AND UNCOLLECTIBLE ACCOUNTS. SIGNIFICANT CONCENTRATIONS OF PATIENT ACCOUNTS RECEIVABLE ARE DISCUSSED FURTHER IN THESE FOOTNOTES. PART III, LINE 8: MEDICARE COST REPORTS WERE USED TO DETERMINE THE MEDICARE ALLOWABLE COSTS OF CARE. THE HOSPITAL IS THE SOLE PROVIDER WITHIN OUR LARGE GEOGRAPHIC AREA AND THE SHORTFALL SHOULD BE TREATED AS SUCH. THE ENTIRE SHORTFALL IS CONSIDERED TO BE A COMMUNITY BENEFIT. PART III, LINE 9B: COLLECTION PRACTICES FOR QUALIFIED PATIENTS:IT IS THE POLICY OF GEORGE L. MEE MEMORIAL HOSPITAL TO PROVIDE EXCELLENT CUSTOMER SERVICE TO ALL PATIENTS, AND ASSIST ALL UNINSURED PATIENTS WITH OBTAINING COVERAGE FROM GOVERNMENT-SPONSORED PROGRAMS SUCH AS MEDICARE, MEDI-CAL, AND CENTRAL COAST ALLIANCE FOR HEALTH, AND HEALTHY FAMILIES. IF SUCH COVERAGE IS NOT AVAILABLE TO THE PATIENT, THE HOSPITAL WILL PROVIDE APPROPRIATE HEALTHCARE TO THE PATIENT, AND THE HOSPITAL WILL PROVIDE FINANCIAL ASSISTANCE BASED ON THE CURRENT FEDERAL POVERTY LEVEL, AND PER THE HOSPITAL'S POLICY, IN ACCORDANCE WITH CALIFORNIA STATE LAW, EMTALA, AND MEDICARE REGULATIONS. FURTHER, SELF-PAY PATIENTS WHO DO NOT QUALIFY FOR FINANCIAL ASSISTANCE BASED ON INCOME WILL BE PROVIDED WITH SEVERAL OPTIONS FOR PAYMENT OF THEIR BILLS. IT IS THE HOSPITAL'S POLICY TO:- ASSIST ALL UNINSURED PATIENT WITH OBTAINING COVERAGE FROM GOVERNMENT-SPONSORED PROGRAMS SUCH AS MEDICARE, MEDI-CAL, CENTRAL COAST ALLIANCE FOR HEALTH, AND HEALTHY FAMILIES.- PROVIDE ALL MEDICALLY NECESSARY HEALTH CARE SERVICES AT NO COST TO ELIGIBLE PATIENTS WHOSE FAMILY'S INCOME IS BELOW 100% OF THE CURRENT FEDERAL POVERTY LEVEL.- PROVIDE ALL MEDICALLY NECESSARY HEALTH CARE SERVICES AT A 50% DISCOUNT TO ELIGIBLE PATIENTS WHOSE FAMILY'S INCOME IS BETWEEN 101% AND 133% OF THE CURRENT FEDERAL POVERTY LEVEL. FOR THE SERVICES PROVIDED TO A PATIENT MEETING THESE CRITERIA, EXPECTED PAYMENT SHALL NOT EXCEED THE GREATER OF THE AMOUNT THAT WOULD BE EXPECTED FROM MEDICARE, MEDI-CAL, CENTRAL COAST ALLIANCE FOR HEALTH, OR HEALTHY FAMILIES FOR THE SAME SERVICES.- PROVIDE ALL MEDICALLY NECESSARY HEALTH CARE SERVICES AT A 35% DISCOUNT TO ELIGIBLE PATIENTS BETWEEN 133% AND 200% OF THE CURRENT FEDERAL POVERTY LEVEL. FOR THE SERVICES PROVIDED TO A PATIENT MEETING THESE CRITERIA, EXPECTED PAYMENT SHALL NOT EXCEED THE GREATER OF THE AMOUNT THAT WOULD BE EXPECTED FROM MEDICARE, MEDI-CAL, CENTRAL COAST ALLIANCE FOR HEALTH, OR HEALTHY FAMILIES FOR THE SAME SERVICES.- PROVIDE INTEREST-FREE PAYMENT PLANS FOR ELIGIBLE PATIENTS UNDER THIS POLICY.- FORGO REPORTS TO CREDIT BUREAUS, REFERRAL OF ACCOUNTS TO COLLECTION AGENCIES, LIENS AGAINST PROPERTY OR WAGE GARNISHMENTS FOR ELIGIBLE PATIENTS WHO ARE MEETING AN AGREED-UPON PAYMENT PLAN.- PROVIDE ADEQUATE NOTICE OF THIS POLICY IN ALL ADMITTING AND RECEPTION AREAS.- OFFER FREE FINANCIAL COUNSELING TO ALL UNINSURED PATIENTS FOR FINANCIAL MATTERS RELATED TO THEIR HOSPITAL BILLS.- FOR ALL UNINSURED PATIENTS ABOVE 100% OF THE CURRENT FEDERAL POVERTY LEVEL, SEVERAL PAYMENT OPTIONS WILL BE PRESENTED, AS FOLLOWS:A. PROMPT PAY DISCOUNT: OFFER A 25% DISCOUNT IF THE ACCOUNT IS PAID IN FULL AT TIME OF SERVICE.B. PAYMENT PLAN: OFFER A 15% DISCOUNT IF THE PATIENT SIGNS AN AGREEMENT REPRESENTING THAT HE/SHE WILL MEET A PAYMENT PLAN THAT WILL PAY THE BALANCE IN FULL WITHIN 6 MONTHS AT NO INTEREST.C. CCS EARLY-OUT: IF THE PATIENT REJECTS EACH OF THE ABOVE OPTIONS, THE ACCOUNT WILL BE SENT TO CCS FOR "EARLY-OUT" COLLECTIONS FOR 90 DAYS. THIS "EARLY-OUT" PROCESS DOES NOT INCLUDE REPORTS TO CREDIT BUREAUS. AT THE END OF THE 90 DAYS, THE ACCOUNT WILL BE RETURNED TO THE HOSPITAL TO BE REVIEWED FOR POTENTIAL BAD DEBT WRITE-OFF AND COLLECTIONS REPORTING. PART V, SECTION A: PART V - EXPLANATION OF NUMBER OF FACILITY TYPE:BESIDES THE MAIN HOSPITAL, THERE ARE FIVE RURAL HEALTH CLINICS (NON-HOSPITAL FACILITIES). GEORGE L. MEE MEMORIAL HOSPITAL PART V, SECTION B, LINE 19D: MEANS USED TO DETERMINE THE AMOUNTS BILLED TO UNINSURED INDIVIDUALS FOR EMERGENCY CARE:FOR ALL UNINSURED PATIENTS ABOVE 100% OF THE CURRENT FEDERAL POVERTY LEVEL, SEVERAL PAYMENT OPTIONS WILL BE PRESENTED, AS FOLLOWS:A. PROMPT PAY DISCOUNT: OFFER A 25% DISCOUNT IF THE ACCOUNT IS PAID IN FULL AT TIME OF SERVICE.B. PAYMENT PLAN: OFFER A 15% DISCOUNT IF THE PATIENT SIGNS AN AGREEMENT REPRESENTING THAT HE/SHE WILL MEET A PAYMENT PLAN THAT WILL PAY THE BALANCE IN FULL WITHIN 6 MONTHS AT NO INTEREST.C. CCS EARLY-OUT: IF THE PATIENT REJECTS EACH OF THE ABOVE OPTIONS, THE ACCOUNT WILL BE SENT TO CCS FOR "EARLY-OUT" COLLECTIONS FOR 90 DAYS. THIS "EARLY-OUT" PROCESS DOES NOT INCLUDE REPORTS TO CREDIT BUREAUS. AT THE END OF THE 90 DAYS, THE ACCOUNT WILL BE RETURNED TO THE HOSPITAL TO BE REVIEWED FOR POTENTIAL BAD DEBT WRITE-OFF AND COLLECTIONS REPORTING. PART VI, LINE 2: NEEDS ASSESSMENT:THE HOSPITAL ASSESSES THE HEALTHCARE NEEDS OF THE COMMUNITY THROUGH COLLABORATION WITH OTHER FACILITIES AND HEALTH RELATED ORGANIZATIONS INVOLVED IN COMMUNITY NEEDS ASSESSMENTS, HEALTH SURVEYS, COMMUNITY AWARENESS PROGRAMS, COMMUNITY FEEDBACK AND OTHER INFORMATIONAL OUTREACHES. PART VI, LINE 3: PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE:BUSINESS OFFICE STAFF SCREENS PATIENTS INDIVIDUALLY, AND EXPLAIN THE NEED TO APPLY FOR STATE AID FIRST. IF APPROVED THEY WILL BE TREATED UNDER THAT PROGRAM, IF NOT THEY WILL APPLY FOR CHARITY CARE. THEY ARE GIVEN A FINANCIAL APPLICATION SO THE HOSPITAL WILL BE ABLE TO DETERMINE WHETHER OR NOT THEY QUALIFY FOR CHARITY CARE. PART VI, LINE 4: COMMUNITY INFORMATION:GEORGE L. MEE MEMORIAL HOSPITAL (THE HOSPITAL) IS LOCATED IN KING CITY, CALIFORNIA. THE HOSPITAL, ORGANIZED IN MARCH, 1959, IS A 119-BED LICENSED FACILITY PROVIDING ACUTE, LONG-TERM CARE AND RURAL HEALTH CLINIC SERVICES TO RESIDENTS OF THE SOUTHERN MONTEREY COUNTY AREA. REPORTS FILED WITH STATES PART VI, LINE 7 CA X X X 0 0 0 0 0 0 0 0 0 LEX SMITH 223540 0 30667 0 0 0 0 0 54110 0 308317 0 0 0 LEOPOLD GRAUPERA 291987 0 25000 0 0 0 0 0 67473 0 384460 0 0 0 ROY SCHINDELHEIM 192780 0 25000 0 0 0 0 0 46356 0 264136 0 0 0 SUSAN M CHILDERS 171752 0 28437 0 0 0 0 0 42612 0 242801 0 0 0 RAYE BURKHARDT 209350 0 0 0 0 0 0 0 44562 0 253912 0 0 0 KEN JOYNER 140851 0 0 0 0 0 0 0 29981 0 170832 0 0 0 OBILOH EGU 318258 0 0 0 0 0 0 0 67743 0 386001 0 0 0 JOHN FEJES 292777 0 25000 0 0 0 0 0 67641 0 385418 0 0 0 SANDRA MONTIJO 197355 0 25000 0 0 0 0 0 47330 0 269685 0 0 0 BRUCE GREENBERG 188920 0 25000 0 0 0 0 0 45534 0 259454 0 0 0 ANUNYA HARANRATTANA 195097 0 2500 0 0 0 0 0 42060 0 239657 0 0 0 FORM 990, PART VI, SECTION B, LINE 11 FORM 990 IS REVIEWED BY THE CFO AND SHARED WITH THE CEO FOR FINAL APPROVAL. THE FORM MAY BE REVIEWED BY THE CEO AND CFO IN EITHER HARD COPY OR COMPUTER FILE VERSION. THE BOARD WILL REVIEW THE FINAL VERSION IN HARD COPY FORMAT. THE REVIEW AND BOARD APPROVAL OF THE 990 WILL BE CONDUCTED PRIOR TO SUBMISSION TO INTERNAL REVENUE SERVICE. THE FORM 990 IS PRESENTED BY AN INDEPENDENT AUDITOR/TAX PROVIDER AT THE MONTHLY MEETING OF THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C MONTEREY COUNTY MEMORIAL HOSPITAL HAS A CORPORATE POLICY ON CONFLICT OF INTEREST. THIS POLICY APPLIES TO ALL INTERESTED PERSONS WHO ARE AS FOLLOWS: A. TRUSTEES B. MEMBER OF SENIOR MANAGEMENT THE BOARD OF TRUSTEES, THE CEO, AND CFO WILL CONTINUOUSLY MONITOR AND EVALUATE ANY AND ALL TRANSACTIONS OF INTERESTED PARTIES WITH THE HOSPITAL. IF THE CURRENT OR PAST TRANSACTION POSE A POTENTIAL RISK OF BEING A CONFLICT OF INTEREST TO THE HOSPITAL, THESE ITEM(S) WILL BE BROUGHT TO THE ATTENTION OF THE CEO, BOARD CHAIRMAN, AND OR FULL BOARD OF TRUSTEES. AFTER DISCLOSURE OF A POTENTIAL CONFLICT OF INTEREST TO THE BOARD, THE INTERESTED BOARD MEMBER WOULD LEAVE THE BOARD MEETING WHILE THE CONFLICT OF INTEREST IS DISCUSSED AND/OR VOTED ON. THE REMAINING BOARD MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. PROVIDED, HOWEVER, IF THE INTERESTED PERSON IS AN ADMINISTRATIVE STAFF EMPLOYEE AND THE CONTEMPLATED TRANSACTION IS AT THE ADMINISTRATIVE LEVEL, THE DECISION SHALL BE MADE BY THE HOSPITAL CEO. ANY BOARD MEMBER HAVING A POSSIBLE CONFLICT OF INTEREST IN ANY MATTER MUST DISCLOSE THE EXISTENCE AND NATURE OF THE CONFLICT. BOARD MEMBERS SHOULD ALWAYS ABSTAIN FROM VOTING ON ANY ISSUES OF A POSSIBLE CONFLICT OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION IS ESTABLISHED THROUGH USE OF A CONSULTANT/RECRUITER THAT OBTAINS SALARY SURVEY INFORMATION. THE BOARD APPROVES ALL COMPENSATION AGREEMENTS AND RECORDS THEM IN WRITTEN EMPLOYMENT CONTRACTS. FORM 990, PART VI, SECTION C, LINE 19 DOCUMENTS ARE MADE AVAILABLE UPON REQUEST. COMPENSATION OF OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, ETC. FORM 990, PART VII, SECTION A CHIEF OF STAFF, LEOPOLD GRAUPERA AND TRUSTEE/PHYSICIAN, ROY SCHINDELHEIM RECEIVED COMPENSATION FOR THEIR SERVICES AS CHIEF OF STAFF AND PHYSICIAN, RESPECTIVELY. THEY ARE NOT COMPENSATED AS MEMBERS OF THE BOARD OF TRUSTEES. AUDIT COMMITTEE AND OVERSIGHT FORM 990, PART XII, LINE 2C THERE HAVE BEEN NO CHANGES TO THIS PROCESS FROM PRIOR YEAR.