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801 BEDELL AVENUE DEL RIO TX 78840

X X X THE MEDICAL CENTER REPORTS PATIENT ACCOUNTS RECEIVABLE FOR SERVICES RENDERED AT NET REALIZABLE AMOUNTS FROM THIRD-PARTY PAYERS, PATIENTS AND OTHERS. THE MEDICAL CENTER PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON A REVIEW OF OUTSTANDING RECEIVABLES, HISTORICAL COLLECTION INFORMATION, AND EXISTING ECONOMIC CONDITIONS. AS A SERVICE TO THE PATIENT, THE MEDICAL CENTER BILLS THIRD-PARTY PAYERS DIRECTLY AND BILLS THE PATIENT WHEN THE PATIENT'S LIABILITY IS DETERMINED. PATIENT ACCOUNTS RECEIVABLE ARE DUE IN FULL WHEN BILLED. ACCOUNTS ARE CONSIDERED DELINQUENT AND SUBSEQUENTLY WRITTEN OFF AS BAD DEBTS BASED ON INDIVIDUAL CREDIT EVALUATION AND SPECIFIC CIRCUMSTANCES OF THE ACCOUNT. AMOUNT REPORTED ON LINE 2 IS BASED ON BAD DEBTS PER THE AUDITED FINANCIAL STATEMENTS AFTER APPLYING THE COST TO CHARGE RATIO. THE ORGANIZATION HAS ESTIMATED THE AMOUNT OF BAD DEBT AT COST ATTIBUTABLE TO PATIENTS ELIGIBLE UNDER THE CHARITY CARE POLICY AT 25%. THE MEDICAL CENTER USES COST REPORT METHODOLOGY, WHICH APPORTIONS ROUTINE COSTS BASED ON MEDICAID OR MEDICARE DAYS TO TOTAL DAYS AND APPORTIONS ANCILLARY COSTS BASED ON PROGRAM CHARGES TO TOTAL CHARGES. IF A PATIENT APPEARS TO BE INDIGENT, ACCOUNTS SHOULD BE REVIEWED, AT ANY TIME DURING THE COLLECTION PROCESS, FOR POSSIBLE CONSIDERATION AS A CHARITY CASE IN ACCORDANCE WITH THE ORGANIZATION'S CHARITY CARE POLICY. THE COMMUNITY'S NEEDS INFORMATION IS GARNERED FROM PATIENT SATISFACTION SURVEYS, EMPLOYEES, AND PHYSICIANS. WHEN AN UNINSURED PATIENT PRESENTS TO REGISTRATION, THE REGISTRAR IDENTIFIES THE SERVICES TO BE OFFERED AND REQUEST PAYMENT FOR THOSE SERVICES PRIOR TO SENDING PATIENT TO THE DEPARTMENT. IF THE PATIENT IS UNABLE TO PAY OUR ELIGIBILITY DEPARTMENT IS NOTIFIED AND THE PATIENT IS ESCORTED TO THAT DEPARTMENT WHERE THEY ARE SCREENED FOR A FUNDING SOURCE. IF IT IS IDENTIFIED THAT PATIENT DOES QUALIFY, APPLICATIONS ARE COMPLETED, AND NECESSARY DOCUMENTATION IS REQUESTED PRIOR TO SERVICES BEING RENDERED. THE DOCUMENTS ARE THEN FORWARDED TO THE ON-SITE TEXAS DEPARTMENT OF HEALTH SOCIAL WORKER WHO VERIFIES ALL DOCUMENTS ARE COMPLETE. IF NO FUNDING SOURCE CAN BE IDENTIFIED, THE PATIENT IS SCREENED FOR THE FACILITIES CHARITY CARE PROGRAM. IF THEY QUALIFY, CHARITY FINANCIAL CLASS IS ASSIGNED AND SERVICES RENDERED. THE HOSPITAL OWNS AND OPERATES A HOSPITAL IN DEL RIO, TEXAS. THE HOSPITAL'S PRIMARY SERVICE AREA CONSISTS OF VAL VERDE COUNTY WITH A POPULATION OF APPROXIMATELY 50,000. EVERY MONTH VVRMC HOSTS A COMMUNITY HEALTH EDUCATION SERIES PRESENTATION. THE PRESENTATIONS ARE ADVERTISED ON OUR WEBSITE, IN THE DEL RIO NEW HERALD, AND ON LOCAL RADIO STATIONS. THEY ARE PRESENTED BY DOCTORS AND/OR EXPERTS IN CERTAIN FIELDS OF INTEREST. THE PRESENTATIONS COVER VARIOUS TOPICS TO HELP EDUCATE OUR COMMUNITY ON IMPORTANT HEALTH ISSUES. THE PRESENTATIONS ARE FREE TO THE PUBLIC; ON AVERAGE 40 PEOPLE ATTEND. THIS PROGRAM WAS IMPLEMENTED IN OCTOBER 2009. IT HAS GROWN IN POPULARITY IN TERMS OF INDIVIDUALS WHO EXPRESS AN INTERESTED IN PRESENTING AND THE NUMBER OF ATTENDEES. VVRMC IMPLEMENTED AN IN-HOUSE EMERGENCY MEDICAL (EMS) ACADEMY. WITHIN THE EMS DEPARTMENT THERE ARE DISPATCHERS, THREE LEVELS OF EMERGENCY MEDICAL TECHNICIANS - BASIC, INTERMEDIATE AND PARAMEDICS, AND CREW CHIEFS. THE GOAL OF THE EMS ACADEMY IS TO PROVIDE THE TRAINING AND CERTIFICATIONS TO PARAMEDIC. THE EMS ACADEMY IS A MAJOR STEP FORWARD COMMUNITY AND OUR HOSPITAL. VVRMC LAUNCHED A SLEEK NEW WEBSITE IN SEPTEMBER 2010. AT vvrmc.org, YOU CAN SEARCH FOR HEALTH ADVICE AND GET INFORMATION TO HELP MAKE SMART DECISIONS FOR YOU AND YOUR FAMILY. YOU CAN SEARCH FOR A PHYSICIAN WHO WILL MEET YOUR HEALTH CARE NEEDS - SEARCH BY NAME OR SPECIALTY, OR BROWSE A COMPLETE LIST OF OUR PHYSICIANS. THE VVRMC WEBSITE GIVES YOU ACCESS TO THE LATEST NEWS AND A WEALTH OF HEALTH INFORMATION AVAILABLE. THE HEALTH INFORMATION LIBRARY IS SEARCHABLE BY KEYWORD AND TOPIC AND INCLUDES TOPICS SUCH AS WOME'S HEALTH, SENIOR'S HEALTH, MEN'S HEALTH, AND CHILDREN AND PARENTING. YOU CAN ALSO VIEW A COMPLETE LIST OF OUT SERVICES. IN OCTOBER 2010, VVRMC PUBLISHED ITS FIRST ISSUE OF "KEEPING WELL". "KEEPING WELL" IS MAILED TO THE COMMUNITY OF DEL RIO AND ITS NEIGHBORS INCLUDING BRACKETTVILLE. "KEEPING WELL" IS A FREE HEALTH AND WELLNESS PUBLICATION. AS PART OF OUR MISSION TO IMPROVE THE HEALTH OF THE PEOPLE IN THE COMMUNITIES WE SERVE, "KEEPING WELL" PROVIDES EDUCATIONAL ARTICLES TARGETED SPECIFICALLY FOR OUR UNIQUE COMMUNITY INCLUDING INFORMATION ON DIABETES, HEART DISEASE, ALZHEIMER'S, NUTRITION, AND ARTHRITIS, JUST TO NAME A FEW. "KEEPING WELL" IS PUBLISHED QUARTERLY IN THE MONTHS OF JANUARY, APRIL, JULY, AND OCTOBER. IT IS PRINTED IN BOTH ENGLISH AND SPANISH. THE CONTENT IS WRITTEN BY EXPERIENCED MEDICAL WRITERS TO INCLUDE RELEVANT, ENGAGING STORIES WITH RELIABLE AND PRACTICAL CONTENT. VVRMC ENCOURAGES SUPPORT OF VARIOUS NON-PROFITS ESPECIALLY RELAY FOR LIFE AND UNITED WAY. MORE THAN $12,000 WAS RAISED FOR THE CURRENT RELAY FOR LIFE CAMPAIGN AND MORE THAN $21,000 WAS RAISED FOR THE 2010 UNITED WAY CAMPAIGN. VVRMC PARTICIPATES IN NUMEROUS HEALTH FAIRS INCLUDING THE OLDER AMERICAN HEALTH FAIR, THE ANNUAL BACK TO SCHOOL HEALTH FAIR, ANDALE DEL RIO, AND THE AMISTAD BINATIONAL HEALTH COUNCIL WELLNESS EXPO, JUST TO NAME A FEW. VVRMC ALSO PROVIDES THE MEDIC SERVICES FOR COMMUNITY RUN FUNDRAISERS, SUCH AS THE ANDALE DEL RIO AND CHILLY 5K, FREE OF CHARGE. THE FOLLOWING PROGRAMS HAVE BEEN INSTITUTED: COMMUNITY EDUCATION SERIES FOCUS GROUPS - SMALL GROUPS MEET TO DISCUSS HOSPITAL CHARGES OUTPATIENT DIABETIC EDUCATION BREAST FEEDING CLASSES AFTER HOURS WEEKEND CLINIC TO MEET COMMUNITIES NEED GRIEF SUPPORT GROUP SAFE KIDS - (CAR SEAT PROGRAM, HELMET/BICYCLE SAFETY, WATER/SWIMMING SAFETY EDUCATION) FIRE SAFETY POISON PREVENTION HYPOTHERMIA PREVENTION HOSPICE PROGRAM (SERVES 2 COUNTIES) CHILD BIRTH CLASSES N/A X X X X true false false false false false false false false Michael D Williams 0 595995 0 268869 0 138868 0 17200 0 15185 0 1036117 Jack Houghton 0 32282 0 0 0 196063 0 3503 0 0 0 231848 DAVID F ALANIZ 245058 0 0 0 0 0 0 0 0 0 245058 0 POLLY DAVENPORT 0 217244 0 24545 0 30067 0 15635 0 0 0 287491 SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENTS WERE MADE AS FOLLOWS: JACK HOUGHTON - $177,164, GERALD HENNESY - $56,061, SUZANNE MESSER - $66,778 VAL VERDE HOSPITAL CORPORATION ("VVMC") MISSION STATEMENT FORM 990, PART III, LINE 1 1. PROVIDE THE AVAILABILITY OF HIGH QUALITY HEALTHCARE SERVICES TO ALL RESIDENTS AND VISITORS OF THE HOSPITAL DISTRICT AND SURROUNDING AREAS. 2. RESPOND TO COMMUNITY NEEDS BY EMPOWERING EMPLOYEES, PHYSICIANS, BOARD MEMBERS, AND VOLUNTEERS TO USE THEIR WISDOM, SKILLS, AND TALENTS IN PROVIDING QUALITY HEALTHCARE AND EDUCATION TO OUR COMMUNITY AND VISITORS. 3. INTERACT WITH OTHER HEALTHCARE PROVIDERS THROUGH COLLABORATIVE AND COOPERATIVE ARRANGEMENTS TO BROADEN THE SCOPE OF SERVICES. 4. DEMONSTRATE FISCAL RESPONSIBILITY TO THOSE WHOM WE SERVE BY EXERCISING SOUND FINANCIAL PRINCIPLES AND MORAL INTEGRITY. 5. EMPHASIZE EXCELLENCE THROUGH CONTINUOUS QUALITY IMPROVEMENT AS WE SEEK INNOVATIVE STRATEGIES TO MAXIMIZE EFFICIENCY, COST EFFECTIVENESS, AND QUALITY OF SERVICE. DELEGATION OF CONTROL OVER MANAGEMENT DUTIES FORM 990, PART VI, QUESTION 3 COMMUNITY HOSPITAL CORPORATION PROVIDED CERTAIN FINANCIAL, TECHNICAL AND MANAGERIAL SUPPORT SERVICES TO THE HOSPITAL THROUGH FEBRUARY 2010. IN FEBRUARY 2010, METHODIST HEALTH SYSTEMS BEGAN PROVIDING THESE SERVICES TO THE HOSPITAL. MEMBERS OR STOCKHOLDERS FORM 990, PART VI, QUESTION 6 VHA SOUTHWEST COMMUNITY HOSPITAL CORPORATION ("CHC") WAS THE SOLE MEMBER THROUGH FEBRUARY 2010. IN FEBRUARY 2010, VAL VERDE COUNTY HOSPITAL DISTRICT BECAME THE SOLE MEMBER OF THE ORGANIZATION. ELECTION OF GOVERNING BODY FORM 990, PART VI, QUESTION 7A THROUGH FEBRUARY 2010, VHA SOUTHWEST COMMUNITY HEALTH CORPORATION (CHC), AS THE SOLE MEMBER HAD THE RIGHT TO APPOINT THE INITIAL BOARD MEMBERS. ANY DIRECTOR MAY BE REMOVED, WITH OR WITHOUT CASE, AT ANY TIME BY THE AFFIRMATIVE VOTE OF TWO-THIRDS OF THE MEMBERS OF THE BOARD OF DIRECTORS. UPON THE REMOVAL OR VACANCY OF DIRECTOR DESIGNATED BY CHC, CHC MAY DESIGNATE THE SUCCESSOR DIRECTOR OR IF ANY OTHER DIRECTOR, A REPLACEMENT DIRECTOR MAY BE ELECTED WITH AN AFFIRMATIVE VOTE OF THE MAJORITY OF THE DIRECTORS. AFTER FEBRUARY 2010, THE MEMBER, VAL VERDE COUNTY HOSPITAL DISTRICT, SHALL APPOINT CLASS A DIRECTORS FROM IT'S OWN BOARD ANNUALLY. THE MEMBER SHALL APPOINT TWO CLASS B DIRECTORS INITIALLY AND THEN SHALL APPOINT ONE CLASS B DIRECTOR ANNUALLY THEREAFTER. DECISIONS OF THE GOVERNING BODY FORM 990, PART VI, QUESTION 7B THROUGH FEBRUARY 2010, THE APPROVAL OF VHA SHALL BE NECESSARY FOR EACH OF THE FOLLOWING MATTERS: A. THE ESTABLISHMENT OF OR ANY CHANGE IN THE ACTIVITIES, PHILOSOPHY, MISSION OR PURPOSE OF THE CORPORATION AS SET BY THE MEMBERS. B. ANY AMENDMENTS OR REVISIONS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION. C. ANY AMENDMENTS OR REVISIONS OF THE ARTICLES OF INCORPORATION OR BYLAWS OF ANY SUBSIDIARY CORPORATION OF THE CORPORATION. D. THE CREATION OF OR INVESTMENT IN ANY SUBSIDIARY ENTITY, PARTNERSHIP OR VENTURE. E. ANY AMENDMENT, REVISION OR TERMINATION OF THE PARTNERSHIP AGREEMENT OF ANY PARTNERSHIP OR REGULATION OF ANY LIMITED LIABILITY COMPANY, TO WHICH THE CORPORATION IS A PARTY. F. THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE CORPORATION. G. ALL MATERIAL EXPENDITURE DEVIATIONS ($25,000 IN ANY SINGLE OR SERIES OF TRANSACTIONS) FROM THE ANNUAL OPERATING BUDGET. H. ALL EXPENDITURE DEVIATIONS FROM THE ANNUAL CAPITAL BUDGET. I. THE PURCHASE OF ACQUISITION OF ANY REAL, PERSONAL, OR MIXED PROPERTY BY THE CORPORATION IN EXCESS OF $25,000 THAT IS NOT PROVIDED FOR IN THE CORPORATION'S ANNUAL OPERATING OR CAPITAL BUDGETS. J. THE SALE, MORTGAGE, ENCUMBRANCE, TRANSFER, LEASE, GIFT, OR OTHER DISPOSITION OF ANY REAL PROPERTY OF THE CORPORATION. K. ANY SALE, GIFT, EXCHANGE, LEASE, MORTGAGE OR OTHER TRANSFER OR ENCUMBRANCE (COLLECTIVELY, "TRANSFER") OF THE PERSONAL PROPERTY OF THE CORPORATION (TANGIBLE OR INTANGIBLE) IF THE SUM OF SUCH TRANSFER AND THE SUM OF ALL PRIOR TRANSFERS, PER FISCAL YEAR, EXCEED $50,000. L. ANY DEBT OR FINANCING ARRANGEMENT OF THIS CORPORATION, EXCEPT USUAL AND CUSTOMARY TRADE DEBT WHICH IS INCURRED IN THE ORDINARY COURSE OF BUSINESS OF THE CORPORATION. M. SETTLEMENT OF ANY CLAIMS OR LITIGATION INVOLVING THE CORPORATION. N. THE MERGER, DISSOLUTION, OR CONSOLIDATION OF THE CORPORATION OR SUBSIDIARY CORPORATION. O. THE EXECUTION, REVISION, AMENDMENT, EXTENSION, NON-RENEWAL OR TERMINATION OF ANY MANAGEMENT, EMPLOYMENT, LEASE, OR SERVICE CONTRACT, WITH AN ANNUAL COMPENSATION IN EXCESS OF $30,000 OR AN AGGREGATE COMPENSATION IN EXCESS OF $50,000. P. ANY DEBTS, LOANS, GUARANTIES, OR GRANTS NOT INCLUDED AND APPROVED AS PART OF THE CORPORATION'S ANNUAL OPERATING AND CAPITAL BUDGETS. Q. THE ELECTION OF THE MEMBERS OF THE BOARD OF DIRECTORS OR THE REMOVAL OF SAID BOARD MEMBERS, WHETHER WITH OR WITHOUT CAUSE. R. THE ENGAGEMENT OF OR REMOVAL OF THE HOSPITAL ADMINISTRATOR. S. THE APPROVAL OF THE EMPLOYEE POLICIES AND BENEFITS PROGRAMS OF THE CORPORATION. T. THE APPROVAL OF MAJOR DEVELOPMENT CAMPAIGNS AND FUND-RAISING. U. THE APPROVAL OF THE FINANCE MANAGEMENT SYSTEM OF THE CORPORATION. FOLLOWING THE AMENDED BYLAWS ENACTED IN JULY 2010, THE BOARD SHALL REQUIRE APPROVAL OF THE NEW MEMBER VAL VERDE COUNTY HOSPITAL AUTHORITY, FOR THE FOLLOWING DECISIONS: A. THE ESTABLISHMENT OF OR ANY CHANGES IN THE ACTIVITIES, PHILOSOPHY, MISSION OR PURPOSE OF THE CORPORATION AS SET BY A MEMBER. B. ANY AMENDMENTS OR REVISIONS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION. C. ANY AMENDMENTS OR REVISIONS OF THE ARTICLES OF INCORPORATION OR BYLAWS OF ANY SUBSIDIARY CORPORATION OF THE CORPORATION. D. THE CREATION OF, OR INVESTMENT IN, ANY SUBSIDIARY ENTITY, PATNERSHIP OR VENTURE. E. ANY AMENDMENT, REVISION OR TERMINATION OF THE PARTNERSHIP AGREEMENT OF ANY PARTNERSHIP OR REGULATIONS OF ANY LIMITED LIABILITY COMPANY, TO WHICH THE CORPORATION IS A PARTY. F. THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE CORPORATION. G. ALL MATERIAL EXPENDITURE DEVIATIONS, WHICH IS DEFINED AS $100,000 IN ANY SINGLE OR SERIES OF TRANSACTIONS, FROM THE ANNUAL OPERATING BUDGET. H. ALL EXPENDITURE DEVIATIONS FROM THE ANNUAL CAPITAL BUDGET. I. THE PURCHASE OR ACQUISITION OF ANY REAL PROPERTY BY THE CORPORATION. J. ANY DEBT OR FINANCING ARRANGEMENT OF THIS CORPORATION FOR AN AMOUNT THAT EXCEEDS $100,000 THAT IS NOT PROVIDED FOR IN THE CORPORATION'S ANNUAL OPERATING OR CAPITAL BUDGETS. K. THE MERGER, DISSOLUTION, OR CONSOLIDATION OF THE CORPORATION OR SUBSIDIARY CORPORATION. L. THE SELECTION OF THE MEMBERS OF THE BOARD OF DIRECTORS OR THE REMOVAL OF SAID BOARD MEMBERS, WHETHER WITH OR WITHOUT CAUSE. THE DETAILED REVIEW PROCESS OF THE FORM 990 FORM 990, PART VI, QUESTION 11A THE ORGANIZATION ENGAGES AN OUTSIDE ACCOUNTING FIRM TO PREPARE FORM 990. ONCE PREPARED THE ORGANIZATION'S INTERNAL ACCOUNTANTS AND CFO PERFORM A DETAILED REVIEW OF THE RETURN PRIOR TO FILING. COMPLIANCE WITH WRITTEN CONLIFCT OF INTEREST POLICY FORM 990, PART VI, QUESTION 12C THROUGH FEBRUARY 2010, THE ORGANIZATION FOLLOWED THE CONFLICT OF INTEREST DISCLOSURE PROCESS ADMINISTERED BY ITS PARENT, VHA SOUTHWEST COMMUNITY HEALTH CORPORATION (CHC), WHICH REQUIRES ALL OFFICERS, DIRECTORS, KEY EMPLOYEES, HIGHLY COMPENSATED EMPLOYEES AND OTHER MANAGEMENT OFFICIALS ("COVERED PERSONS") TO DISCLOSE POTENTIAL CONFLICTS. PURSUANT TO THE POLICY, A DISCLOSURE STATEMENT IS CIRCULATED ANNUALLY TO COVERED PERSONS IN WHICH THE INDIVIDUAL MUST DISCLOSE TRANSACTIONS THAT MAY RESULT IN A CONFLICT. COVERED PERSONS ARE ALSO ENCOURAGED TO NOTIFY THE BOARD, APPROPRIATE MANAGEMENT PERSONNEL, CHIEF COMPLIANCE OFFICE, GENERAL COUNSEL, OR THE AUDIT AND COMPLIANCE COMMITTEE OF THE GOVERNING BODY AS NECESSARY. WHEN NECESSARY, THE BOARD CHAIR OR APPROPRIATE BOARD COMMITTEE MAY APPOINT A DISINTERESTED PERSON(S) OR COMMITTEE TO INVESTIGATE THE POTENTIAL CONFLICT OF INTEREST AND RECOMMEND ALTERNATIVES TO THE APPLICABLE TRANSACTION OR ARRANGEMENT OR OTHERWISE DETERMINE IF THE CONFLICT CAN BE RESOLVED. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLY UNDER THE CIRCUMSTANCES NOT PRODUCING A CONFLICT OF INTEREST, THE GOVERNING BOARD OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS IN THE BEST INTEREST OF THE ORGANIZATION, FOR ITS OWN BENEFIT, AND WHETHER IT IS REASONABLE. THE GOVERNING BOARD OR COMMITTEE MAKES THE DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. ANY MEMBER OF THE BOARD OPERATING UNDER A CONFLICT IS NOT PERMITTED TO BE PRESENT OR OTHERWISE PARTICIPATE IN THE VOTE ON ANY MATTER TO WHICH THE CONFLICT RELATES. IF THE GOVERNING BOARD OR COMMITTEE OF THE ORGANIZATION HAS REASONABLE CAUSE TO BELIEVE THAT A COVERED PERSON HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST AND AFTER INVESTIGATION THE BOARD OR COMMITTEE DETERMINES THAT THE COVERED PERSON FAILED TO DISCLOSE A CONFLICT OF INTEREST, THE ORGANIZATION TAKES APPROPRIATE DISCIPLINARY OR CORRECTIVE ACTION, WHICH MAY INCLUDE, TERMINATION OF THE INDIVIDUAL'S MEMBERSHIP, EMPLOYMENT, OR CONTRACT. THE ORGANIZATION HAS CONTINUED TO FOLLOW A SIMILAR PROCESS AFTER FEBRUARY 2010. THE FACILITY OR DIVISION ECO OR THE SVP AND CHIEF ETHICS AND COMPLIANCE OFFICER WILL REVIEW DISCLOSURES WITH SUPERVISORS AND DETERMINE WHICH REQUIRE FURTHER ACTION. SUPERVISORS WILL DISCUSS NECESSARY ACTION WITH THE AFFECTED INDIVIDUAL. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, QUESTION 15A&B THROUGH FEBRUARY 2010, THE ORGANIZATION FOLLOWS THE COMPENSATION POLICY OF THE PARENT ORGANIZATION, VHA SOUTHWEST COMMUNITY HEALTH CORPORATION (CHC). CHC ENGAGED WATSON WYATT WORLDWIDE (NOW DOING BUSINESS AS TOWERS WATSON) TO CONDUCT A COMPETITIVE MARKET ANALYSIS OF THE COMPENSATION OF CHC'S TOP MANAGEMENT OFFICIALS, OFFICERS, DIRECTORS AND KEY EMPLOYEES. WATSON WYATT'S RECOMMENDATIONS WERE PRESENTED TO THE CHC COMPENSATION COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. CHC ALSO CONDUCTS PERIODIC REVIEWS OF COMPENSATION TO DETERMINE WHETHER COMPENSATION ARRANGEMENTS AND BENEFITS ARE REASONABLE, BASED ON COMPETENT SURVEY INFORMATION, AND THE RESULT OF ARM'S LENGTH BARGAINING. AFTER FEBRUARY 2010, THE ORGANIZATION ESTABLISHED AN INTERNAL PROCESS. HUMAN RESOURCES ANNUALLY USES MARKET SURVEYS FOR BASE PAY, PRIMARILY TSHRAE SURVEY TOOL WHICH INCLUDES 125 HOSPITALS IN TEXAS WITH 42 IN VVRMC'S REGION. PAY RANGES ARE ESTABLISHED BY HUMAN RESOURCES AND APPROVED BY SENIOR DIRECTORS FOR EACH PAY GRADE BASED ON THE MARKET SURVEYS. HUMAN RESOURCES WILL MAKE RECOMMENDATIONS TO THE SENIOR LEADERSHIP TEAM ANNUALLY TO DETERMINE COMPENSATION PHILOSOPHY, LEVEL OF ENTERPRISE PAY, EXPENSE TO BUDGET, EE ADJUSTMENTS FOR MERIT/MARKET RECOGNITION AND NEW HIRES INCENTIVES. GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC FORM 990, PART VI, QUESTION 19 THE ORGANIZATION MAKES ITS FINANCIAL STATEMENTS, GOVERNING DOCUMENTS, AND CONFLICT OF INTEREST POLICY AVAILABLE UPON REQUEST. SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS FORM 990, PART VI, QUESTION 4 THE ORGANIZATION REVISED AND AMENDED THE BYLAWS IN JULY 2010 FOLLOWING A CHANGE OF THE MEMBER IN FEBRUARY 2010. AUDITED FINANCIAL STATEMENTS FORM 990, PART IV, LINE 12 & PART XI, LINE 2 THE ORGANIZATION HAS ANSWERED "NO" TO THE QUESTIONS REGARDING AN AUDIT. THE ORGANIZATION IS IN THE PROCESS OF AN AUDIT OF THE FINANCIAL STATEMENTS. HOWEVER, AT THE TIME OF FILING THIS RETURN, THE AUDIT IS NOT YET COMPLETE. OTHER COMPENSATION, DEFERRED COMPENSATION, AND NONTAXABLE BENEFITS FORM 990, PART VII THE ORGANIZATION WAS UNABLE TO PROVIDE THE COMPLETE INFORMATION FOR DEFERRED COMPENSATION AND NONTAXABLE BENEFITS AND THEREFORE PLANS TO AMEND THE RETURN AS SOON AS POSSIBLE AFTER FILING. VHA SW COMMUNITY HEALTH CORP 5801 Tennyson Parkway STE 550 Plano TX 75024 752638469 Support Org TX 501(C)(3) 11 NA ARTESIA GENERAL HOSPITAL 702 North 13th Street Artesia NM 88210 742851819 Hospital NM 501(c)(3) 3 NA LAIRD MEMORIAL HOSPITAL 5801 Tennyson Parkway Suite 550 Plano TX 75024 020643367 Hospital TX 501(c)(3) 3 NA WALKER COUNTY HOSPITAL CORPORATION PO Box 4001 Huntsville TX 77342 203069241 Hospital TX 501(c)(3) 3 NA SOUTHWEST COMMUNITY HOSPITAL INC 5801 Tennyson Parkway Suite 550 Plano TX 75024 752725353 Hospital TX 501(c)(3) 3 NA YOAKUM COMMUNITY HOSPITAL 1200 Carl Ramert Dr Yoakum TX 77995 742323822 Hospital TX 501(c)(3) 3 NA CHC COMMUNITY CARE LLC 5801 Tennyson Parkway Suite 550 Plano TX 75024 371485773 Support Org TX 501(c)(3) 11 NA VAL VERDE COUNTY HOSPITAL DISTRICT 801 BEDELL AVENUE DEL RIO TX 78840 741835564 HEALTHCARE TX GOVRNMNTAL NA COMMUNITY HEALTH ASSURANCE SPC LTD Cayman Islands CJ CAPTIVE INSURANCE CJ NA C CORP 0 0 0.00000 CHC ACQUISITION CORP 5801 Tennyson Parkway Suite 550 PLANO TX 75024 752750360 PROPERTY CONSULT. 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