2015-07-10T08:20:03-05:00 2014-09-30 560747981 DIXON HUGHES GOODMAN LLP 500 RIDGEFIELD COURT ASHEVILLE NC 28806 990 2013-10-01 830343789 WRMC HOSPITAL OPERATING CORPORATION WRMC 3366518100 1370 WEST D STREET NORTH WILKESBORO NC 28659 BARRY WALD VP OF FINANCE/CFO 3366518100 2015-07-10 1 AMY BIBBY P00445891 8282542254 2013 2016-02-25 16:41:14Z WILKES REGIONAL MEDICAL CENTER BARRY WALD 1370 WEST D STREET NORTH WILKESBORO NC 28659 86198735 0 X WWW.WILKESREGIONAL.ORG X 1 1996 NC OUR MISSION IS TO PROVIDE EFFECTIVE, COMPASSIONATE MEDICAL CARE TO PROMOTE HEALTH LIFESTYLES FOR OUR COMMUNITY. 15 14 791 79 0 0 380262 577816 86760811 85239513 146155 126359 272000 238271 87559228 86181959 0 0 0 0 36657875 34924980 0 0 0 45949485 45148351 82607360 80073331 4951868 6108628 90277311 92946382 38724494 36888023 51552817 56058359 X OUR MISSION IS TO PROVIDE EFFECTIVE, COMPASSIONATE MEDICAL CARE TO PROMOTE HEALTHY LIFESTYLES FOR OUR COMMUNITY. 0 0 69782663 85241208 WILKES REGIONAL MEDICAL CENTER IS A 130 BED FACILITY SERVING ALLEGHANY, ALEXANDER, ASHE, CALDWELL, IREDELL, SURRY, WATAUGA, AND WILKES COUNTIES. IN FISCAL YEAR 2014 THE HOSPITAL HAD 33,546 EMERGENCY ROOM VISITS AND 17,275 IN-PATIENT DAYS. THE HOSPITAL INCURRED APPROXIMATELY $3.6 MILLION OF CHARITY CARE COSTS IN PROVIDING FREE AND DISCOUNTED CARE TO PATIENTS. THE HOSPITAL ACCEPTS ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY.PLEASE SEE SCHEDULE O FOR A CONTINUATION OF THE PROGRAM SERVICE ACCOMPLISHMENTS.WILKES REGIONAL MEDICAL CENTER WAS AWARDED AN "A" BY THE LEAPFROG GROUP, THE GOLD STANDARD FOR COMPARING HOSPITAL QUALITY AND SAFETY PERFORMANCE.US NEWS AND WORLD REPORT NAMED WILKES REGIONAL'S SKILLED NURSING FACILITY TO THEIR "2014 BEST NURSING HOME" LIST.PROFESSIONAL RESEARCH CONSULTANTS RECOGNIZED THE WILKES REGIONAL NEW BEGINNINGS BIRTHING CENTER WITH A 5 STAR AWARD FOR THE NINTH STRAIGHT YEAR.WILKES REGIONAL ACHIEVED THE LARGEST INCREASE IN EMPLOYEE COMMITMENT SCORE, GOING FROM 3.93 IN 2013 TO 4.15 IN 2014 (58TH PERCENTILE RANKING).WILKES REGIONAL WAS AWARDED THE SILVER TOUCH STONE AWARD FROM CHS FOR INTRODUCING METERED-DOSE INHALERS, SAVING HUNDREDS OF THOUSANDS OF DOLLARS THROUGHOUT THE SYSTEM. 69782663 1 1 0 1 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 0 1 138 0 1 791 1 0 0 0 0 0 0 0 0 0 0 X 15 14 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NC X BARRY WALD 3366518100 1370 WEST D STREET NORTH WILKESBORO NC 28659 LEE HERRING CHAIRMAN 1.00 X X 0 0 0 ERIC CRAMER VICE CHAIRMAN 1.00 X X 0 0 0 JIM SMOAK TREASURER 1.00 X X 0 0 0 JEAN GRAF SECRETARY 1.00 X X 0 0 0 ARNOLD LAKEY DIRECTOR 1.00 X 0 0 0 BILL WARDEN DIRECTOR 1.00 1.00 X 0 0 0 C W BARKER DIRECTOR 1.00 X 0 0 0 DANE MASTIN DIRECTOR 1.00 X 0 0 0 DR ASHTON MOLAI DIRECTOR 1.00 1.00 X 0 0 0 DREW MAYBERRY DIRECTOR 1.00 1.00 X 0 0 0 LARRY FARTHING DIRECTOR 1.00 X 0 0 0 DR LARRY KILBY DIRECTOR 1.00 X 0 0 0 MELISSA LACKEY DIRECTOR 1.00 X 0 0 0 OLIVE THOMAS DIRECTOR 1.00 1.00 X 0 0 0 PAT BUMGARNER DIRECTOR 1.00 X 0 0 0 J GENE FAILE CEO 60.00 1.00 X 308599 0 48476 BARRY WALD CFO 55.00 1.00 X 92550 0 10461 SANDY SHEPPARD CNO 55.00 X 161257 0 23356 JASON YOCKEY CRNA 40.00 X 207329 0 27509 MARGARET LINKA CRNA 40.00 X 199218 0 12260 ELLEN HAZEL CRNA 40.00 X 194576 0 22215 KEVIN HANSEN CRNA 40.00 X 180276 0 27000 SANDY CASEY CRNA 40.00 X 177830 0 26974 MARLIN MARKHAM FORMER OFFICER 0.00 X 165848 0 16036 1687483 0 214287 15 1 1 0 MORRISON MANAGEMENT SPECIALIST PO BOX 102289 ATLANTA GA 30368 CAFETERIA MANAGEMENT 764878 THERASTAT DATA CORP PO BOX 890562 CHARLOTTE NC 28289 PHYSICAL THERAPY STAFFING SERVICES 355032 MCELWEE FIRM PLLC PO BOX 728 NORTH WILKESBORO NC 28659 LEGAL SERVICES 323591 RN NETWORK PO BOX 974088 DALLAS TX 75397 NURSING SERVICES 310086 DIXON HUGHES GOODMAN LLP PO BOX 602828 CHARLOTTE NC 282602828 ACCOUNTING FIRM 147184 8 577816 577816 PATIENT SERVICE REVENUE 621110 83366237 83366237 EHR INCENTIVE PROGRAM REVENUE 621110 1873276 1873276 85239513 143135 143135 140133 0 140133 140133 140133 9644 7132 -9644 -7132 -16776 -16776 MEDICAL SUPPLY AND PHARMACY SALES 621110 41932 41932 CARE CONNECTION 621110 34893 34893 MEDICAL RECORD TRANSCRIPTION FEES 621110 19618 19618 1695 1695 98138 86181959 85241208 0 362935 765807 765807 27205588 21764470 5441118 1426570 1141256 285314 3166390 2533112 633278 2360625 1888500 472125 324532 324532 66072 66072 162193 162193 5706121 5283329 422792 619467 619467 7067868 5654294 1413574 954249 763399 190850 1943646 1943646 565065 452052 113013 1519135 1519135 5501534 5501534 608146 608146 MEDICAL SUPPLIES 10629178 10629178 BAD DEBT 9481145 9481145 80073331 69782663 10290668 0 2260872 3582476 12361332 10425559 1907173 2169746 1557160 1712684 114077610 67936599 49103380 46141011 12265065 13912790 9958807 12811394 863522 2190722 90277311 92946382 8041480 7341188 16000 11938 25992486 25041910 4674528 4492987 38724494 36888023 X 51552817 56058359 51552817 56058359 90277311 92946382 X 6108628 -61177 -1541909 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 3513 3513 0 PART II-B, LINE 1: THE ORGANIZATION IS A MEMBER OF THE AMERICAN HOSPITAL ASSOCIATION (AHA) AND THE NORTH CAROLINA HOSPITAL ASSOCIATION (NCHA). EACH YEAR, A PORTION OF THE DUES PAID TO THESE ORGANIZATIONS IS ALLOCATED TOWARDS LOBBYING EFFORTS ON BEHALF OF THEIR MEMBERSHIP BODIES. FOR FY 2014, AMOUNTS OF MEMBERSHIP DUES ALLOCATED TO THESE EXPENDITURES WERE APPROXIMATELY $ 2,300 FOR AHA AND $ 1,200 FOR NCHA. 976902 976902 54062748 22422356 31640392 4231954 2746841 1485113 54560965 42767402 11793563 245041 245041 46141011 DUE FROM WPN 12811394 C 12811394 ESTIMATED THIRD PARTY SETTLEMENTS 4492987 4492987 X 75097728 -61177 -11023054 -11084231 86181959 0 86181959 70592186 0 70592186 9481145 9481145 80073331 PART X, LINE 2: WRMC HOSPITAL OPERATING CORPORATION IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE ORGANIZATION HAS DETERMINED THAT IT DOES NOT HAVE ANY MATERIAL UNRECOGNIZED TAX BENEFITS OR OBLIGATIONS AS OF SEPTEMBER 30, 2014. PART XI, LINE 2D - OTHER ADJUSTMENTS: PROVISION FOR BAD DEBT -9,481,145. EQUITY TRANSFER TO AFFILIATE WILKES PHYSICIAN NETWORK -1,541,909. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR BAD DEBT 9,481,145. 1 1 1 X 125.000000000000 1 X 1 1 1 0 1 0 4686661 4686661 0.06640 10620633 9513770 1106863 0.01570 15307294 9513770 5793524 0.08210 183195 34893 148302 0.00210 31711 31711 0.00040 214906 34893 180013 0.00250 15522200 9548663 5973537 0.08460 0 9481145 22239441 22221032 18409 X 1 1 1 1 WILKES REGIONAL MEDICAL CENTER 1370 W D STREET NORTH WILKESBORO NC 28659 X X X X WILKES REGIONAL MEDICAL CENTER 1 1 X X X X X X X X X 12 1 0 1 X X X X X X X X X X 1 0 1 1 125.000000000000 1 200.000000000000 1 X X X X 1 1 X X X X X 1 0 1 X 0 0 WILKES REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 3: ONE OF THE GOALS OF THE COMMUNITY HEALTH ASSESSMENT (CHA) WAS TO LEARN ABOUT THE HEALTH AND QUALITY OF LIFE IN WILKES COUNTY, WHILE IDENTIFYING THE STRENGTHS AND CHALLENGES IN THE COMMUNITY. AS PART OF THE LARGER CHA PROJECT, A STAKEHOLDER SURVEY WAS DISTRIBUTED. THE PURPOSE OF THE STAKEHOLDER SURVEY WAS TO SOLICIT INPUT ON CRITICAL ISSUES THAT INFLUENCE THE HEALTH OF CITIZENS AND DECISIONS TO BE MADE BY PROVIDERS AND INSTITUTIONS (E.G., WILKES COUNTY HEALTH DEPARTMENT [WCHD], WILKES REGIONAL MEDICAL CENTER [WRMC], COMMUNITY ORGANIZATIONS, PHYSICIANS, ETC.). THE WCHD SOUGHT TO INCLUDE A DIVERSITY OF OPINIONS THAT WERE REPRESENTATIVE OF DECISION MAKERS, HEALTH PROVIDERS, AND SOCIAL AND EDUCATION SERVICES TO CITIZENS OF WILKES COUNTY. A TOTAL OF 33 RESPONSES WERE RECEIVED.ADDITIONALLY, COMMUNITY HEALTH OPINION SURVEYS (CHOS) WERE DISTRIBUTED TO RESIDENTS OF WILKES COUNTY, NC BETWEEN JULY 2012 AND JANUARY 2013. SURVEYS WERE COMPLETED EITHER ONLINE VIA SURVEY MONKEY OR IN PERSON AT VARIOUS COMMUNITY LOCATIONS. A TOTAL OF 938 RESIDENTS COMPLETED THE SURVEY. WILKES REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 20D: THE HOSPITAL DETERMINES AMOUNTS CHARGED TO FINANCIAL ASSISTANCE ELIGIBLE INDIVIDUALS BASED ON THE FINANCIAL ASSISTANCE POLICY. THE HOSPITAL USES THE AVERAGE OF ALL PRIVATE HEALTH INSURERS AND MEDICARE PAID CLAIMS FOR THE PRIOR 12 MONTHS. PATIENTS ELIGIBLE FOR A SLIDING SCALE DISCOUNT ARE CHARGED AT RATES THAT ARE SIGNIFICANTLY LOWER THAN COMMERCIAL RATES. WILKES REGIONAL MEDICAL CENTER PART V, SECTION B, LINE 21: AN AVERAGE DISCOUNT THAT REFLECTED THE AVERAGE DISCOUNT AFFORDED COMMERCIAL AND MANAGED CARE COVERED PATIENTS. 5 WILKES REGIONAL DIALYSIS CENTER 1917 W PARK DRIVE A NORTH WILKESBORO NC 28659 DIALYSIS CENTER HOME CARE OF WILKES REGIONAL MEDICAL CEN 1907 WEST PARK DRIVE NORTH WILKESBORO NC 28659 HOME CARE DIAGNOSTIC CENTER 1900 WEST PARK DRIVE NORTH WILKESBORO NC 28659 DIAGNOSTIC CENTER REHAB SERVICES 1918 WEST PARK DRIVE NORTH WILKESBORO NC 28659 REHAB CENTER WOUND HEALING CENTER OF WILKES REGIONAL 1900 WEST PARK DRIVE SUITE C NORTH WILKESBORO NC 28659 WOUND HEALING CENTER PART I, LINE 7: THE ORGANIZATION USED AN INTERNAL COST TO CHARGE RATIO. PART I, LINE 7G: THE ORGANIZATION PROVIDES CERTAIN SERVICES TO THE COMMUNITY AT A LOSS DUE TO THE COMMUNITY NEED. PART I, LN 7 COL(F): THE TOTAL EXPENSE ON FORM 990, PART XI, LINE 25 CONTAINS A BAD DEBT EXPENSE OF $9,481,145 THAT HAS BEEN REMOVED FOR PURPOSES OF COMPUTING LINE 7, COLUMN R. PART III, LINE 4: THE ORGANIZATION'S FINANCIAL STATEMENTS DO NOT INCLUDE A FOOTNOTE ON BAD DEBT. THE ORGANIZATION IS NOT INCLUDING ANY AMOUNT OF BAD DEBT AS COMMUNITY BENEFIT IN THIS REPORT. PART III, LINE 8: THE ORGANIZATION UTILIZES A MEDICARE COST REPORT TO OBTAIN THE ALLOWABLE COSTS OF CARE AND MEDICARE REVENUES. PART III, LINE 9B: IF PATIENTS MEET THE QUALIFICATIONS IN REGARDS TO OUR CHARITY CARE POLICY, THEY ARE GIVEN CHARITY CARE. THE ORGANIZATION USES FINANCIALS COUNSELORS TO DETERMINE THIS ELIGIBILITY. PART VI, LINE 2: WILKES REGIONAL MEDICAL CENTER WORKS WITH COUNTY HEALTH DEPARTMENTS AND COUNTY GOVERNMENT AS A HEALTH COALITION TO DETERMINE HEALTH CARE NEEDS IN THE COMMUNITY. INPUT IS ALSO SOLICITED FROM SURROUNDING PHYSICIANS REGARDING APPROPRIATE SERVICES FOR THE AREA PART VI, LINE 3: THE HOSPITAL NOTIFIES PATIENTS WHEN THEY REGISTER THAT WE HAVE A CHARITY CARE POLICY. THE HOSPITAL USES FINANCIAL COUNSELORS TO ASSIST PATIENTS IN DETERMINING IF THEY QUALIFY FOR CHARITY CARE. THE HOSPITAL ALSO DISCUSSES WITH THE PATIENT THE AVAILABILITY OF VARIOUS GOVERNMENT BENEFITS, SUCH AS MEDICAID OR STATE PROGRAMS, AND ASSISTS THE PATIENT WITH QUALIFICATION FOR SUCH PROGRAMS, WHERE APPLICABLE. LANGUAGE BARRIERS ARE TAKEN INTO ACCOUNT WITH ALL PATIENT COMMUNICATIONS. PART VI, LINE 4: THE HOSPITAL'S PRIMARY SERVICE AREA IS WILKES COUNTY AND ALSO INCLUDES THE SURROUNDING COUNTIES OF ALLEGHANY, ALEXANDER, ASHE, CALDWELL, IREDELL, SURRY, AND WATAUGA, WITH A TOTAL POPULATION OF APPROXIMATELY 458,000. PART VI, LINE 5: THE HOSPITAL FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY IN SEVERAL OTHER WAYS. A MAJORITY OF THE HOSPITAL'S GOVERNING BODY IS COMPRISED OF PERSONS WHO RESIDE IN THE HOSPITAL'S PRIMARY SERVICE AREA WHO ARE NEITHER EMPLOYEES, CONTRACTORS OF THE ORGANIZATION, NOR FAMILY MEMBERS THEREOF. FURTHERMORE, THE HOSPITAL EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN ITS COMMUNITY FOR ALL OF ITS DEPARTMENTS. IF ANY SURPLUS EXISTS AT THE END OF THE FISCAL YEAR, THE HOSPITAL APPLIES SURPLUS FUNDS TO IMPROVEMENTS IN PATIENT CARE AND MEDICAL EDUCATION. THE HOSPITAL HOLDS MULTIPLE HEALTH FAIRS AROUND THE COMMUNITY ON AN ANNUAL BASIS. THE HOSPITAL OPERATES AN EMERGENCY ROOM AVAILABLE TO ALL REGARDLESS OF ABILITY TO PAY. THE HOSPITAL PARTICIPATES IN EDUCATION AND TRAINING OF HEALTHCARE PROFESSIONALS. THE HOSPITAL PARTICIPATES IN GOVERNMENT-SPONSORED HEALTH PROGRAMS. THE HOSPITAL SERVES AS A VEHICLE FOR ATTRACTING AND EFFECTIVELY USING DONATED FUNDS. THE HOSPITAL OFFERS VOLUNTEER OPPORTUNITES TO MEMBERS OF THE COMMUNITY. THE HOSPITAL OPERATES THE CARE CONNECTIONS PHARMACY WHICH PROVIDES FREE AND DISCOUNTED PRESCRIPTION DRUGS TO THOSE UNABLE TO PAY FOR MEDICATIONS. APPROXIMATELY 1000 PRESCRIPTIONS ARE FILLED MONTHLY FOR 258 PLUS PATIENTS. THIS PROGRAM ENABLES PATIENTS TO STAY COMPLIANT WITH THEIR MEDICAL TREATMENT PLAN AND ALSO REDUCE THE OCCURENCE OF READMISSIONS. PART VI, LINE 7, REPORTS FILED WITH STATES NC X X X X X 1 0 0 1 0 0 0 0 0 J GENE FAILE CEO 230534 0 50874 0 27191 0 25871 0 22605 0 357075 0 0 0 SANDY SHEPPARD CNO 137903 0 21229 0 2125 0 14706 0 8650 0 184613 0 0 0 JASON YOCKEY CRNA 207029 0 0 0 300 0 4451 0 23058 0 234838 0 0 0 MARGARET LINKA CRNA 197238 0 0 0 1980 0 4025 0 8235 0 211478 0 0 0 ELLEN HAZEL CRNA 193332 0 0 0 1244 0 4098 0 18117 0 216791 0 0 0 KEVIN HANSEN CRNA 180036 0 0 0 240 0 3942 0 23058 0 207276 0 0 0 SANDY CASEY CRNA 177380 0 0 0 450 0 3916 0 23058 0 204804 0 0 0 MARLIN MARKHAM FORMER OFFICER 89724 0 0 0 76124 0 8561 0 7475 0 181884 0 0 0 PART I, LINE 4A SEVERANCE COMPENSATION: DURING THE CALENDAR YEAR 2013 FORMER CFO MARLIN MARKHAM RECEIVED SEVERANCE COMPENSATION AS FOLLOWS. MARLIN MARKHAM: $73,987 PART I, LINE 5 INCENTIVES FOR THE CEO AND CFO ARE BASED ON MEETING THE CRITERIA ON THE KEY PERFORMANCE INDICATOR BALANCED SCORECARD. THE CRITERIA INCLUDE SIX FINANCIAL PERFORMANCE MEASURES, FIVE QUALITY MEASUREMENTS, CERTIFICATIONS, AND SPECIALTY DESIGNATIONS. THE INCENTIVE PAYMENTS ARE CALULATED USING SET FORMULAS WITH A MEASUREABLE THRESHOLD, TARGET AMOUNT, AND MAXIMUM AMOUNT. THE RECIPIENTS OF PAYMENTS UNDER THIS PROGRAM FOR CALENDAR YEAR 2013 ARE LISTED BELOW. J. GENE FAILE, CEO $50,874 SANDY SHEPPARD, CNO 21,229 REBA GARLOCK FAMILY MEMBER OF DIRECTOR 43405 COMPENSATION FOR EMPLOYMENT AS PATIENT ACCESS MANAGER. 0 JANET WALD FAMILY MEMBER OF OFFICER 13050 COMPENSATION FOR EMPLOYMENT AS WPN OFFICE MANGER. 0 FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL BE COMPOSED OF THE CHAIRMAN OF THE BOARD (WHO SHALL ALSO SERVE AS CHAIRMAN OF THE COMMITTEE) AND THE VICE CHAIRMEN. THE EXECUTIVE COMMITTEE SHALL MEET AS NECESSARY. A MAJORITY OF THE EXECUTIVE COMMITTEE SHALL CONSTITUTE A QUORUM, AND A MAJORITY OF THE MEMBERS PRESENT SHALL BE REQUIRED TO TAKE ACTION ON ANY MATTER. THE RESPONSIBILITIES OF THE EXECUTIVE COMMITTEE SHALL INCLUDE, BUT NOT BE LIMITED TO: (A) PARTICIPATION IN THE JOINT CONFERENCE COMMITTEE; (B) LONG RANGE PLANNING; (C) ACQUISITIONS; AND (D) BUSINESS DEVELOPMENT; (E) SETTING GOALS FOR AND EVALUATING THE CEO, CFO, AND CNO, AND (F) APPROVAL OF THE COMPENSATION OF THE CEO, CFO, AND CNO. IN THE EVENT IMMEDIATE BOARD ACTION IS REQUIRED TO AVOID SUBSTANTIAL HARM AND A QUORUM OF THE FULL BOARD CANNOT TIMELY BE CONVENED, THE EXECUTIVE COMMITTEE IS AUTHORIZED TO APPROVE EMERGENCY ACTION; PROVIDED, HOWEVER THAT SUCH ACTION SHALL BE REPORTED TO THE FULL BOARD TO SEEK RATIFICATION OF THE ACTION AT A SPECIAL MEETING CALLED FOR THAT PURPOSE. FORM 990, PART VI, SECTION A, LINE 3 ON FEBRUARY 7, 2007, THE HOSPITAL SYSTEM ENTERED INTO A SERVICES AND AFFILIATION AGREEMENT WITH THE CHARLOTTE MECKLENBURG HOSPITAL AUTHORITY D/B/A CAROLINAS HEALTHCARE SYSTEM (CHS). THE AGREEMENT APPOINTS CAROLINAS HEALTHCARE SYSTEM AS THE MANAGER OF THE HOSPITAL SYSTEM. THE BOARD OF WILKES REGIONAL MEDICAL CENTER (WRMC) CONTINUES TO OVERSEE THE OPERATIONS OF THE HEALTHCARE FACILITY AND RELATED EXEMPT ACTIVITIES. AS PART OF THE AGREEMENT, WRMC GRANTS CHS THE RESPONSIBILITY FOR MANAGEMENT OF THE HEALTH SYSTEM, SUBJECT TO THE GENERAL APPROVAL OF THE BOARD OF DIRECTORS OF WRMC. BOARD APPROVAL IS REQUIRED FOR LARGE CAPITAL EXPENDITURES, SALE OR DISPOSAL OF SYSTEM ASSETS, AND BORROWING IN EXCESS OF IMMATERIAL AMOUNTS. CHS IS REQUIRED TO PROVIDE KEY MANAGEMENT PERSONNEL. WRMC REIMBURSES CHS THE SALARY AND BENEFITS COST OF THESE INDIVIDUALS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WAS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM AND REVIEWED BY MANAGEMENT. BOARD MEMBERS RECEIVED A COPY OF THE RETURN FOR PERSONAL REVIEW PRIOR TO FILING WITH THE IRS. THE ORGANIZATION'S EXECUTIVE COMMITTEE AND FINANCE COMMITTEE REVIEWED AND DISCUSSED THE FORM 990 WITH MANAGEMENT PRIOR TO SUBMISSION WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C WHENEVER A BOARD MEMBER MAKES A DISCLOSURE REGARDING A CONFLICT OF INTEREST, OR INFORMATION CONCERNING A POTENTIAL CONFLICT OF INTEREST COMES TO THE ATTENTION OF THE BOARD, THE BOARD MEMBER INVOLVED MAY BE REQUIRED TO PROVIDE FURTHER INFORMATION AND TO WITHDRAW FROM THE MEETING FOR A DISCUSSION AND RECOMMENDATION OR DECISION REGARDING THE CONFLICT. BOARD MEMBERS, AT LEAST ANNUALLY, SHALL INDICATE IN WRITING THAT THEY ARE FAMILIAR WITH THIS ARTICLE REGARDING CONFLICTS OF INTEREST AND THAT THEY HAVE NOT VIOLATED ANY OF ITS PROVISIONS. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION UTILIZES AN INDEPENDENT THIRD PARTY COMPENSATION CONSULTANT TO PROVIDE COMPENSATION BENCHMARKING DATA FOR NUMEROUS KEY POSITIONS INCLUDING CEO, CFO AND CNO. THE BOARD USES THIS DATA DURING AN ANNUAL REVIEW AND APPROVAL PROCESS. ALSO, THE BOARD OF DIRECTORS PERFORMS AN ANNUAL ANALYSIS OF WAGE INCREASES OFFERED TO OTHER EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 18 THE ORGANIZATION MAKES ITS FORM 990 AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: EQUITY TRANSFER TO AFFILIATE WILKES PHYSICIAN NETWORK -1,541,909. PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM PRIOR YEARS. WILKES PHYSICIAN NETWORK INC 1370 WEST D STREET NORTH WILKES NC 28659 PHYSICIAN PRACTICES NC 501(C)(3) 3 WRMC HOSPITAL OPERATING CORPORATION 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 WILKES PHYSICIAN NETWORK INC P 1541909 EQUITY TRANSFER WILKES PHYSICIAN NETWORK INC D 12811394 BALANCE OF A/R