Who owns
the hospital?
The
community. The hospital is designated by the Internal Revenue
Service as a 501-C-3 organization. This means we are a private,
non-profit organization. As such, we are a tax-exempt
organization whose excess of revenues less expenses (profits in
the for-profit world) are reinvested back into the organization
or community. If the hospital is sold for some reason, by law
the proceeds have to be distributed to another non-profit
organization. If there is not another non-profit organization
where the funds can go, the Chancery Court will decide where the
money goes. Individuals cannot benefit from the sale.
Who are
the shareholders?
There are
no shareholders. We have members of the “corporation” who
actually pay $10 per year for membership. The corporation has
approximately 200 members, who live in communities in our
service area.
How are
the “profits” distributed?
“Profits”
or the excess of revenues less expenses are not distributed to
anyone. They are reinvested into our facility, new
technologies, new services and the community. Dollars
reinvested into the community include charity care, the school
health program, community health initiatives, health fairs,
contributions to local philanthropic and civic organizations,
etc.
Who are
the Board members?
The Board
of Directors has 35 members. Board members are not paid, and we
view their membership as a service to the community. They
volunteer many hours each month serving on the Board itself and
the various committees of the Board. The Board members are:
Mickey Holliman, Chairman; Doug
Clark, M.D., Vice Chairman; Kathy Aycock, Ph.D.; Kyle Chandler;
Leon Clay; David Cole, Ph.D.; James Cooper, M.D.; Billy Crews;
Tom Foy; Hassell Franklin; L. E. (Bo) Gibens; Barney Guyton,
M.D.; M. Paul Haynes, Jr.; Richard Heyer, M.D.; James F. Ingram;
David Irwin, M.D.; Jim Kelley; Larry Kirk; Wilson Long; Zell
Long; Sherry Martin, M.D.; Robin McGraw; Hughes Milam, M.D.; Guy
Mitchell, III; Buddy R. Montgomery; Mabel Murphree, Ph.D.;
Aubrey Patterson; John Robinson; Stephen Shirley, M.D.; John W.
Smith; Claude H. Springfield; Travis Staub; Mike Walker; C. K.
White, M.D.; and Buddy Williamson, M.D.
How are
the Board members selected?
Prospective
Board members are nominated by a nominating committee and
presented to the full Board for its approval. Board members are
elected for staggering five-year terms and have to rotate off
the Board for one year after serving two consecutive terms.
Why do
Board members’ companies get all of the contracts at the
hospital?
They
don’t. We have a very rigorous bidding process for items such
as our banking relationships, investment relationships,
construction projects, etc. We contract with a national
purchasing organization for most of our supplies and equipment
to ensure we obtain the best pricing.
Why do
you spend so much money on advertising? We know you’re there.
The money
we spend on advertising is intended to inform the public of the
services and programs we provide. We try to balance the amount
of money we spend with the public’s need for information. If we
don’t communicate what’s going on at the hospital or the
services we provide, the community lacks the information needed
to determine whether or not we’re doing a good job. Also, by
not communicating, people are left to fill the void of
information with their own biases. We believe we are
accountable to the community, and we need to communicate that
through our community relations efforts.
October 17, 2004
