2024-11-11T15:15:55-06:00 2023-12-31 861065772 DELOITTE TAX LLP 50 SOUTH SIXTH STREET MINNEAPOLIS MN 55402 990 2023-01-01 953826037 SCAN GROUP SCAN 5629895100 3800 KILROY AIRPORT WAY 100 LONG BEACH CA 908065616 SACHIN JAIN CEO 5629895100 2024-11-11 1 0 ANNA KOLAKALURI P01275237 6123974000 2023 2024-10-15 13:58:12Z SACHIN JAIN 3800 KILROY AIRPORT WAY 100 LONG BEACH CA 908065616 219286753 0 X WWW.THESCANGROUP.ORG X 1982 CA TO SUPPORT THE CHARITABLE MISSION OF SCAN HEALTH PLAN, THE SCAN FOUNDATION AND ITS OTHER 501(C)(3) RELATED ORGANIZATIONS. 13 12 419 54 0 0 0 0 0 0 -129841 9153426 0 0 -129841 9153426 0 0 0 0 7134163 7671800 0 0 0 4415498 3670769 11549661 11342569 -11679502 -2189143 267780208 236604033 50239777 47094021 217540431 189510012 TO SUPPORT THE CHARITABLE MISSION OF SCAN HEALTH PLAN, THE SCAN FOUNDATION AND ITS OTHER 501(C)(3) RELATED ORGANIZATIONS. 0 0 6174640 0 0 SCAN GROUP IS A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION WHICH IS A SUPPORTING ORGANIZATION TO ITS RELATED SECTION 501(C)(3) TAX-EXEMPT ORGANIZATIONS. SCAN GROUP SUPPORTS THE 501(C)(3) SCAN HEALTH PLAN IN ACTIVITIES IN SUPPORT OF THE MISSION OF SCAN HEALTH PLAN TO KEEP SENIORS HEALTHY AND INDEPENDENT. SCAN GROUP PROVIDES SUPPORT SERVICES TO THE SCAN FOUNDATION, A 501(C)(3) ORGANIZATION, WHOSE MISSION IS TO ADVANCE A COORDINATED AND EASILY NAVIGATED SYSTEM OF HIGH-QUALITY SERVICES FOR OLDER ADULTS THAT PRESERVE DIGNITY AND INDEPENDENCE. 6174640 1 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 1 1 1 0 1 153 0 1 419 1 0 0 0 0 0 0 0 0 0 0 1 0 X 13 12 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 1 1 0 CA X VIRGINIA A HAVAI 5629895100 3800 KILROY AIRPORT WAY STE 100 LONG BEACH CA 908065616 JAIN MD SACHIN H PRESIDENT & CEO 6.00 34.00 X X 0 3268166 1554958 ROSENSTOCK LINDA CHAIRPERSON 7.74 3.66 X X 165000 35000 0 JONES BRANDON DIRECTOR 6.39 4.11 X 129000 37500 0 ORTIZ CELESTE DIRECTOR 6.39 4.11 X 129000 37500 0 RUIZ DE LUZURIAGA FRANCESCA DIRECTOR 5.67 3.43 X 117000 35000 0 PHILLIPS CHERYL DIRECTOR 4.95 3.65 X 105000 36055 0 ELLIS ROSEMARY DIRECTOR 4.50 3.90 X 90000 36667 0 TURNER ROSEMARY DIRECTOR 4.95 0.55 X 117000 0 0 CAIN COLLEEN DIRECTOR 5.04 0.56 X 114000 0 0 ALLOCCO ANDREW DIRECTOR 4.50 0.50 X 90000 0 0 CHIN HANSEN JENNIE DIRECTOR 4.50 0.50 X 90000 0 0 CHU BENJAMIN DIRECTOR (BEG 01/2023) 4.50 0.50 X 90000 0 0 NAVATHE AMOL DIRECTOR (BEG 01/2023) 4.50 0.50 X 90000 0 0 PLUMB MICHAEL CHIEF FINANCIAL OFFICER 6.00 34.00 X 0 1101248 666170 SCHULTE KAREN H PRESIDENT, MEDICARE (BEG 12/2022) 5.00 35.00 X 0 740787 486465 KROEKER KEVIN B SPECIAL COUNSEL (END 07/2023) 6.00 34.00 X 1017186 0 51046 DELPHIN-RODRIGUEZ RENEE C CHIEF LEGAL OFFICER & GC (BEG 3/23) 6.00 34.00 X 435053 0 374248 BATRA ROMILLA A CHIEF MEDICAL OFFICER (END 09/2023) 4.00 36.00 X 0 1930843 32379 GOODE JOSH K CHIEF INFORMATION OFFICER 8.00 32.00 X 1394386 0 475679 MONK NANCY J CHIEF OPERATIONS OFFICER 5.00 35.00 X 1128510 0 537664 STANISLAW SHERRY GENERAL MANAGER OFFICER (END 06/2023) 4.00 36.00 X 0 1246301 32580 LEUNG KWAN-MOON SVP, CHIEF DATA OFFICER 2.00 38.00 X 790378 0 290566 CRAWLEY-HERBERT LINDSAY CHIEF PEOPLE OFFICER 8.00 32.00 X 681544 0 335185 PARVINCHIHA MD PAYAM CVP, CHIEF MEDICAL DIRECTOR (BEG 09/2023) 4.00 36.00 X 0 675684 227079 SELBY JILL V SVP PRODUCT DEV & MKT EXP 7.50 32.50 X 591867 0 57440 BLEA MICHAEL CVP, CHIEF GROWTH OFFICER (BEG 02/2023) 2.00 38.00 X 416368 0 145644 HAWKINS GINETTE SVP, CHIEF RISK OFFICER 8.00 32.00 X 420404 0 95275 SHETH DEEPA SVP, CORP DEVELOPMENT (BEG 3/23) 8.00 32.00 X 640414 0 280435 HAMMASH MUHANNAD CVP, MED POL & CORP SUP 36.00 4.00 X 603415 0 215012 ROSENTHAL OREN DEPUTY GEN COUNSEL 8.00 32.00 X 447826 0 141262 DURAN DENNIS M VP, INFRA & INFO SEC 8.00 32.00 X 396678 0 147768 PARACHA MOHAMMAD B SR DIR ENTERPRISE ANLYTCS 8.00 32.00 X 391025 0 97493 10681054 9180751 6244348 199 0 1 0 ACCENTURE LLP 161 N CLARK ST CHICAGO IL 60601 CONSULTING SERVICES 5732675 CROWELL & MORING LLP PO BOX 75509 BALTIMORE MD 21275 LEGAL SERVICES 1207724 KILROY REALTY LP 12200 W OLYMPIC BLVD STE 200 LOS ANGELES TX 90064 MANAGEMENT SERVICES 713531 ONICA GROUP 1 FANATICAL PLACE WINDCREST TX 78218 SOFTWARE SERVICES 530129 NBC UNIVERSAL LLC DBA UNIVERSAL CITY ST 100 UNIVERSAL CITY PLAZA UNIVERSAL CITY CA 91608 ENTERTAINMENT SERVICES 517133 35 6248353 6248353 213038400 210133327 2905073 2905073 2905073 9153426 0 0 9153426 X 3356172 1254408 2101764 3254732 2409608 845124 519326 258744 260582 215604 148084 67520 325966 205602 120364 1370694 1370694 17456 17456 1 1 281537 281537 1662379 1613212 49167 5976 4086 1890 41159 14183 26976 14584 10763 3821 78340 62099 16241 23786 20697 3089 12276 8961 3315 3572 726 2846 FEDERAL, STATE, LOCAL 141158 140959 199 OTHER 10261 4983 5278 DUES AND SUBSCRIPTIONS 7588 69 7519 ROUNDING 2 2 11342569 6174640 5167929 0 -2705 -62442 28086598 28826677 3251926 8363157 6335758 8425216 75288503 58511112 135020874 103135722 14239537 19799254 15165054 267780208 236604033 26969886 30738721 23269891 16355300 50239777 47094021 X 217540431 189510012 217540431 189510012 267780208 236604033 X -2189143 7080724 -32922000 X 0 1 X 1 0 X X 1 SCAN HEALTH PLAN 953858259 10 1 0 11289950 1 0 11289950 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 SCHEDULE A, PART IV, SECTION A, LINE 6: SCAN GROUP SUPPORTS OR BENEFITS, PERFORMS THE FUNCTIONS OF, AND/OR CARRIES OUT THE PURPOSES OF SCAN HEALTH PLAN. DURING 2023, SCAN GROUP PROVIDED CONTRIBUTIONS TO SCAN HEALTH PLAN NEVADA, SCAN DESERT HEALTH PLAN, SCAN HEALTH PLAN TEXAS, AND SCAN HEALTH PLAN NEW MEXICO, WHICH ENGAGE IN ACTIVITIES THAT ARE CONSISTENT WITH AND COMPLEMENTARY TO, AND THAT FURTHER THE CHARITABLE PURPOSES OF SCAN HEALTH PLAN. 0 ASSET BACKED 18373982 F CORPORATE BONDS 36931796 F MORTGAGE BACKED SECURITIES 5726044 F US GOV. & AGENCY OBLIGATIONS 33363964 F PASSIVE INVESTMENTS 8739936 F 103135722 SECURITY DEPOSITS 758986 OPERATING LEASE RIGHT-OF-USE ASSET 14406068 15165054 DEFERRED COMP 457B AND 457F 4082058 DEFERRED LT INCENTIVE COMP PLAN 299320 OPERATING LEASE LIABILITIES - NET OF CURRENT PORTION 11973922 16355300 X 8871889 0 8871889 281537 281537 9153426 11061032 0 11061032 281537 281537 11342569 PART X, LINE 2: THE COMPANY IS RECOGNIZED AS A TAX-EXEMPT ENTITY UNDER IRC SECTION 501(C)(3) AND CALIFORNIA REVENUE CODE SECTION 23701(D). UNDER FASB ASC 740, INCOME TAXES, THE COMPANY IS REQUIRED TO RECOGNIZE A LIABILITY FOR EACH UNCERTAIN TAX POSITION AT THE AMOUNT ESTIMATED TO BE REQUIRED TO SETTLE THE ISSUES. AS OF DECEMBER 31, 2023, THERE WERE NO LIABILITIES RECORDED FOR UNCERTAIN TAX POSITIONS. THE FEDERAL INCOME TAX RETURN HAS A THREE-YEAR STATUTE OF LIMITATION AND THE CALIFORNIA RETURN HAS A FOUR-YEAR STATUTE OF LIMITATION, FROM THE LATTER OF A) THE DUE DATE OF THE RETURN OR B) THE DATE THE RETURN IS FILED. DURING THIS TIME PERIOD, THE INCOME TAX RETURNS COULD BE SUBJECT TO EXAMINATION. THE FEDERAL INCOME TAX RETURNS ARE SUBJECT TO EXAMINATION FROM 2020 THROUGH 2022, AND STATE INCOME TAX RETURNS ARE SUBJECT TO EXAMINATION FROM 2019 THROUGH 2022. X X X X X 1 1 0 0 0 0 0 1 0 JAIN MD SACHIN H PRESIDENT & CEO 0 1021668 0 2245658 0 840 0 1538636 0 16322 0 4823124 0 1761300 BATRA ROMILLA A CHIEF MEDICAL OFFICER (END 09/2023) 0 432525 0 661813 0 836505 0 25339 0 7040 0 1963222 0 513784 GOODE JOSH K CHIEF INFORMATION OFFICER 506236 0 388508 0 499642 0 458240 0 17439 0 1870065 0 864289 0 PLUMB MICHAEL CHIEF FINANCIAL OFFICER 0 586926 0 489890 0 24432 0 638903 0 27267 0 1767418 0 489890 MONK NANCY J CHIEF OPERATIONS OFFICER 531804 0 488232 0 108474 0 507768 0 29896 0 1666174 0 568663 0 STANISLAW SHERRY GENERAL MANAGER OFFICER (END 06/2023 0 257416 0 531893 0 456992 0 23100 0 9480 0 1278881 0 327446 SCHULTE KAREN H PRESIDENT, MEDICARE (BEG 12/2022) 0 497800 0 218656 0 24331 0 467408 0 19057 0 1227252 0 218656 LEUNG KWAN-MOON SVP, CHIEF DATA OFFICER 453115 0 262304 0 74959 0 287864 0 2702 0 1080944 0 311151 0 KROEKER KEVIN B SPECIAL COUNSEL (END 07/2023) 331937 0 591206 0 94043 0 33230 0 17816 0 1068232 0 493571 0 CRAWLEY-HERBERT LINDSAY CHIEF PEOPLE OFFICER 441335 0 216976 0 23233 0 321676 0 13509 0 1016729 0 216976 0 SHETH DEEPA SVP, CORP DEVELOPMENT (BEG 3/23) 417347 0 200000 0 23067 0 252460 0 27975 0 920849 0 0 0 PARVINCHIHA MD PAYAM CVP, CHIEF MEDICAL DIRECTOR (BEG 09/ 0 421777 0 230592 0 23315 0 203530 0 23549 0 902763 0 180592 HAMMASH MUHANNAD CVP, MED POL & CORP SUP 416000 0 162983 0 24432 0 206650 0 8362 0 818427 0 162983 0 DELPHIN-RODRIGUEZ RENEE C CHIEF LEGAL OFFICER & GC (BEG 3/23) 411923 0 0 0 23130 0 372844 0 1404 0 809301 0 0 0 SELBY JILL V SVP PRODUCT DEV & MKT EXP 358023 0 207987 0 25857 0 37220 0 20220 0 649307 0 207987 0 ROSENTHAL OREN DEPUTY GEN COUNSEL 309154 0 116423 0 22249 0 138569 0 2693 0 589088 0 0 0 BLEA MICHAEL CVP, CHIEF GROWTH OFFICER (BEG 02/20 301508 0 100000 0 14860 0 115086 0 30558 0 562012 0 0 0 DURAN DENNIS M VP, INFRA & INFO SEC 267708 0 108655 0 20315 0 117782 0 29986 0 544446 0 108655 0 HAWKINS GINETTE SVP, CHIEF RISK OFFICER 290769 0 120632 0 9003 0 84956 0 10319 0 515679 0 120632 0 PARACHA MOHAMMAD B SR DIR ENTERPRISE ANLYTCS 241175 0 149400 0 450 0 87042 0 10451 0 488518 0 0 0 ROSENSTOCK LINDA CHAIRPERSON 165000 35000 0 0 0 0 0 0 0 0 165000 35000 0 0 JONES BRANDON DIRECTOR 129000 37500 0 0 0 0 0 0 0 0 129000 37500 0 0 ORTIZ CELESTE DIRECTOR 129000 37500 0 0 0 0 0 0 0 0 129000 37500 0 0 RUIZ DE LUZURIAGA FRANCESCA DIRECTOR 117000 35000 0 0 0 0 0 0 0 0 117000 35000 0 0 PART I, LINES 4A-B PART I, LINE 4A DURING 2023, THE EMPLOYMENT RELATIONSHIP OF THE FOLLOWING EMPLOYEES OF SCAN GROUP AND SCAN HEALTH PLAN ENDED. IN CONNECTION WITH THE TERMINATION OF EMPLOYMENT, SCAN GROUP AND SCAN HEALTH PLAN NEGOTIATED AND PAID SEVERANCE TO THE EMPLOYEES. ROMILLA A BATRA - $ 664,882 SHERRY STANISLAW - $ 401,782 PART I, LINE 4B: SCAN GROUP AND SCAN HEALTH PLAN PROVIDE A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN TO OFFICERS AND SENIOR VICE PRESIDENTS VIA ITS SECTION 457(F) PLAN. FOR CONTRIBUTIONS MADE PRIOR TO DECEMBER 31, 2017, A PARTICIPANT BECOMES VESTED IN THE 457(F) PLAN UPON COMPLETION OF ONE OF THE CHOSEN VESTING OPTIONS: 1) FIVE YEARS OF SERVICE AND 62 YEARS OF AGE OR 2) 10 YEARS OF SERVICE. ON JANUARY 1, 2018, A NEW PLAN WAS ADOPTED, FOR CONTRIBUTIONS MADE ON OR AFTER THAT DATE, A PARTICIPANT BECOMES VESTED IN THE 457(F) PLAN FOLLOWING A 4 YEAR CLASS VESTING CYCLE. SUPPLEMENTAL NON-QUALIFIED PLAN PAYMENTS WERE MADE DURING THE YEAR TO THE FOLLOWING LISTED PERSONS IN PART VII: (2023) ROMILLA BATRA $ 147,674 SHERRY STANISLAW - $ 27,376 KEVIN KROEKER - $ 68,078 JOSH GOODE - $ 475,881 NANCY MONK - $ 80,430 MOON LEUNG - $ 48,847 DEFERRED COMPENSATION FOR 2023, REPORTED ON SCHEDULE J, PART II, COLUMN B AND COLUMN C CONSISTS OF THE FOLLOWING: 1) 457(F) EMPLOYER CONTRIBUTIONS ARE SUBJECT TO VESTING TERMS AND CONDITIONS AS NOTED IN THE PLAN DOCUMENTS. BASED ON THESE VESTING TERMS AND CONDITIONS, THERE IS SUBSTANTIAL RISK OF FORFEITURE. 2) 457(B) IS A DEFERRED COMPENSATION PLAN THAT THE EMPLOYER AND EMPLOYEE CONTRIBUTE TO, UP TO THE SCAN GROUP AND SCAN HEALTH PLAN'S DEFINED AND IRS ANNUAL LIMITS. 3) 401(K) QUALIFIED RETIREMENT PLAN CONTRIBUTIONS (EMPLOYER MATCH AND SAFE HARBOR) UP TO THE IRS ANNUAL LIMITS. 4) SCAN GROUP AND SCAN HEALTH PLAN PROVIDE AN INCENTIVE PLAN TO VICE PRESIDENTS AND ABOVE. THE INCENTIVE PLAN IS BASED ON ORGANIZATION AND INDIVIDUAL PERFORMANCE METRICS. PAYMENTS ARE MADE ON OR AROUND APRIL 1 OF THE SUBSEQUENT CALENDAR YEAR. PART I, LINE 7 BEGINNING JANUARY 1, 2023, SCAN GROUP AND SCAN HEALTH PLAN PROVIDED A LONG-TERM INCENTIVE PLAN (LTIP) FOR KEY EMPLOYEES OCCUPYING SENIOR VICE PRESIDENT AND ABOVE. THE INCENTIVE PLAN IS GRANTED ANNUALLY BUT IS BASED ON ORGANZATIONAL PERFORMANCE METRICS OVER A THREE YEAR MEASURMENT PERIOD. PAYMENTS ARE MADE ON OR AROUND APRIL 1 OF THE SUBSEQUENT CALENDAR YEAR OF THE PERFORMANCE PERIOD. THE LTIP IS GOVERNED BY THE COMPENSATION COMMITTEE, WHICH HAS THE AUTHORITY TO APPROVE, AMEND OR TERMINATE ANY PROVISION OF THE LTIP, IN WHOLE OR IN PART, AT ANYTIME WITHOUT CONSENT OF OR PRIOR NOTICE TO ANY PARTICIPANT. AT THE END OF THE PERFORMANCE PERIOD, THE COMPENSATION COMMITTEE WILL SUBMIT ITS RECOMMENDATIONS TO THE BOARD OF DIRECTORS FOR REVIEW AND APPROVAL. SCHEDULE J CEO COMPENSATION IT IS IMPORTANT TO NOTE THAT SCHEDULE J REFLECTS ALL COMPENSATION THAT THE CEO "EARNED" IN 2023, WHICH INCLUDES INCENTIVE PAYMENTS RELATED TO 2023 THAT WILL BE PAID IN SUBSEQUENT YEARS AND UNVESTED RETIREMENT BENEFITS. SCHEDULE J ALSO INCLUDES COMPENSATION THAT THE CEO "EARNED" IN 2022 THAT WAS PAID IN 2023. FOR AVOIDANCE OF CONFUSION, THE CEO WAS PAID $3,268,166 IN 2023 [COLUMNS (B)(I), (B)(II), (B)(III)], OF WHICH $1,761,300 WAS "EARNED" IN 2022 [COLUMN (F)] AND PAID IN 2023. THE CEO'S "EARNED" COMPENSATION FOR 2023 IS EQUAL TO ROUGHLY $3,061,824, WHICH REPRESENTS COLUMN (E) MINUS COLUMN (F), SINCE COLUMN (F) IS COMPENSATION EARNED IN A PREVIOUS YEAR AND INCLUDED IN A PREVIOUS 990. HEALTHCARE IN ACTION MEDICAL GROUP OWNED BY DR ROMILLA BATRA, MD, THEN DR PAYAM PARVINCHIHA, MD 18676 ADMINISTRATIVE EXPENSE REIMBURSEMENTS PAID BY HEALTHCARE IN ACTION MEDICAL GROUP TO SCAN GROUP 0 FORM 990, PART VI, SECTION B, LINE 11B THE FORM 990 IS PREPARED BY THE ACCOUNTING FIRM OF DELOITTE TAX, LLP WORKING IN CONJUNCTION WITH SCAN'S FINANCE DEPARTMENT. SCAN HEALTH PLAN'S DIRECTOR OF ACCOUNTING HAS DIRECT RESPONSIBILITY FOR THIS EFFORT, SUBJECT TO SUPERVISION BY THE VICE PRESIDENT AND CONTROLLER OF SCAN HEALTH PLAN. AFTER AN INITIAL DRAFT OF THE FORM 990 IS PREPARED, IT IS CIRCULATED FOR REVIEW AND COMMENT BY RELEVANT MEMBERS OF THE EXECUTIVE TEAM WHO HAVE RESPONSIBILITY FOR AND/OR KNOWLEDGE REGARDING THE VARIOUS MATTERS DISCLOSED AND/OR DESCRIBED IN THE FORM. THE GENERAL COUNSEL, IN PARTICULAR, REVIEWS THE FORM 990 FOR ACCURACY AND COMPLETENESS. THE DRAFT FORM 990 IS REVIEWED IN PERTINENT PART BY THE COMPENSATION COMMITTEE OF THE BOARD; THE FORM 990 IS PROVIDED IN ITS ENTIRETY TO THE AUDIT AND COMPLIANCE COMMITTEES OF THE BOARD OF DIRECTORS OF SCAN GROUP, AND ALL MEMBERS OF THE BOARD OF DIRECTORS FOR REVIEW AFTER IT IS PREPARED, AND PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C SCAN GROUP REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL CIRCULATION OF A CONFLICT OF INTEREST POLICY AND DISCLOSURE QUESTIONNAIRE WHICH ALL MEMBERS OF THE BOARD OF DIRECTORS, OFFICERS AND MEMBERS OF EXECUTIVE MANAGEMENT ARE REQUIRED TO COMPLETE AND SIGN. IN ADDITION, THERE IS ANNUAL MANDATORY COMPLIANCE EDUCATION AND TRAINING AND SCAN'S COMPLIANCE DEPARTMENT IS RESPONSIBLE FOR ENFORCEMENT OF SCAN'S ROBUST COMPLIANCE PROGRAM, INCLUDING SCAN'S CODE OF CONDUCT AND COMPLIANCE-RELATED POLICIES AND PROCEDURES. MEMBERS OF THE EXECUTIVE TEAM ALSO HAVE RESPONSIBILITY FOR ENFORCEMENT. THE LEGAL DEPARTMENT OF SCAN GROUP REVIEWS ALL CONTRACTUAL RELATIONSHIPS ENTERED INTO BY THE ORGANIZATION AND SCAN'S GENERAL COUNSEL IS RESPONSIBLE FOR MONITORING THE CONFLICT OF INTEREST QUESTIONNAIRE. THE LEGAL DEPARTMENT OF SCAN GROUP MONITORS AND ENFORCES ADHERENCE TO THESE POLICIES ON AN ONGOING BASIS. FORM 990, PART VI, SECTION B, LINE 15B THE COMPENSATION FOR THE CHIEF EXECUTIVE OFFICER OF SCAN GROUP AND SCAN HEALTH PLAN IS PAID BY SCAN HEALTH PLAN. THE PROCESS FOR DETERMINING THE COMPENSATION OF THE CEO OF SCAN GROUP IS CONDUCTED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF SCAN GROUP, ALL THE VOTING MEMBERS OF WHICH ARE INDEPENDENT PERSONS. IN DETERMINING THE COMPENSATION OF THE CEO, THE COMPENSATION COMMITTEE WORKS WITH AND RELIES UPON THE COUNSEL AND EXPERTISE OF AN OUTSIDE COMPENSATION CONSULTANT WITH WELL-ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NONPROFIT HEALTH CARE ORGANIZATIONS, EXECUTIVE COMPENSATION, AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. THE COMPENSATION CONSULTANT PROVIDES AN EXECUTIVE COMPENSATION REPORT TO THE COMPENSATION COMMITTEE EACH YEAR WHICH FURNISHES THE BASIS FOR DETERMINING THE CEO'S COMPENSATION PACKAGE DURING THE FOLLOWING YEAR. THE EXECUTIVE COMPENSATION REPORT IS BASED ON A REVIEW OF THE EXECUTIVE COMPENSATION PRACTICES OF A VARIETY OF ORGANIZATIONS CONSIDERED COMPARABLE TO SCAN HEALTH PLAN BASED UPON CERTAIN INDUSTRY STANDARD METRICS. THE COMPENSATION COMMITTEE DELIBERATES ON THE ISSUE OF THE CEO'S COMPENSATION PACKAGE IN CONSIDERATION OF THE EXECUTIVE COMPENSATION REPORT. QUESTIONS ARE ASKED OF, AND ANSWERED BY THE COMPENSATION CONSULTANT, REGARDING SUCH REPORT AND OTHER MATTERS RELEVANT TO SUCH PACKAGE. BASED ON THESE DELIBERATIONS, THE COMPENSATION COMMITTEE MAKES A RECOMMENDATION TO THE BOARD OF DIRECTORS OF SCAN GROUP REGARDING THE COMPENSATION PACKAGE FOR THE CEO FOR THE FOLLOWING YEAR. THE FULL BOARD OF DIRECTORS OF SCAN GROUP DELIBERATES AND THEN VOTES ON SUCH RECOMMENDATION; THE CEO IS RECUSED FOR THE ENTIRETY OF SUCH DELIBERATIONS AND VOTE. THE MINUTES OF THE COMPENSATION COMMITTEE AND THE BOARD OF DIRECTORS FOR THESE MEETINGS ARE PREPARED SUBSTANTIALLY CONTEMPORANEOUSLY AND SUBSTANTIATE SUCH DELIBERATIONS AND DECISIONS. THE OUTSIDE COMPENSATION CONSULTANT PROVIDING THE EXECUTIVE COMPENSATION REPORT AND GUIDANCE RELATED TO THE 2023 SALARY PACKAGE WAS SULLIVAN COTTER. THE PROCESS FOR DETERMINING THE COMPENSATION OF THE CHIEF FINANCIAL OFFICER OF SCAN HEALTH PLAN FOLLOWS THE SAME PROCESS AS DESCRIBED ABOVE FOR THE CEO. THE PROCESS FOR DETERMINING THE COMPENSATION OF OFFICERS AND SENIOR VICE PRESIDENTS OF SCAN HEALTH PLAN AND SCAN GROUP IS CONDUCTED BY THE HUMAN RESOURCES DEPARTMENT OF SCAN GROUP AND CHIEF EXECUTIVE OFFICER (CEO) OF SCAN HEALTH PLAN, WITH THE APPROVAL OF THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF SCAN GROUP. ALL OF THE VOTING MEMBERS OF THE COMPENSATION COMMITTEE ARE INDEPENDENT DIRECTORS. IN DETERMINING EACH EMPLOYEE'S COMPENSATION, THE HUMAN RESOURCES DEPARTMENT AND COMPENSATION COMMITTEE WORK WITH AND RELY UPON THE COUNSEL AND EXPERTISE OF AN OUTSIDE COMPENSATION CONSULTANT WITH WELL-ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NONPROFIT HEALTH CARE ORGANIZATIONS, EXECUTIVE COMPENSATION, AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. THE COMPENSATION CONSULTANT PROVIDES AN EXECUTIVE COMPENSATION REPORT TO THE HUMAN RESOURCES DEPARTMENT EACH YEAR WHICH FURNISHES THE BASIS FOR THE DETERMINATION OF EACH EMPLOYEE'S COMPENSATION PACKAGE DURING THE FOLLOWING YEAR. THE EXECUTIVE COMPENSATION REPORT IS BASED ON A REVIEW OF THE EXECUTIVE COMPENSATION PRACTICES OF A VARIETY OF ORGANIZATIONS CONSIDERED COMPARABLE TO SCAN HEALTH PLAN BASED ON VARIOUS METRICS. THE CHIEF EXECUTIVE OFFICER (CEO) MAKES A RECOMMENDATION TO THE COMPENSATION COMMITTEE WITH RESPECT TO EACH EMPLOYEE'S COMPENSATION PACKAGE IN LIGHT OF THE EXECUTIVE COMPENSATION REPORT. AT THE COMPENSATION COMMITTEE MEETING ADDRESSING SUCH MATTERS, QUESTIONS ARE ASKED OF, AND ANSWERED BY, THE COMPENSATION CONSULTANT, REGARDING THEIR REPORT AND OTHER MATTERS RELEVANT TO THE COMPENSATION PACKAGE; PURSUANT TO THEIR DELIBERATIONS, THE COMPENSATION COMMITTEE MAKES A DECISION REGARDING THE COMPENSATION PACKAGE FOR SUCH EMPLOYEES FOR THE FOLLOWING YEAR. THE MINUTES OF THE COMPENSATION COMMITTEE FOR THIS MEETING ARE PREPARED SUBSTANTIALLY CONTEMPORANEOUSLY AND SUBSTANTIATE SUCH DELIBERATIONS AND DECISIONS. THE OUTSIDE COMPENSATION CONSULTANT PROVIDING THE EXECUTIVE COMPENSATION REPORT AND GUIDANCE RELATED TO THE 2023 SALARY PACKAGE WAS SULLIVAN COTTER. FORM 990, PART VI, SECTION C, LINE 19 SCAN GROUP'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. SCAN GROUP MAKES ITS FORM 990, WHICH CONTAINS FINANCIAL INFORMATION, AVAILABLE FOR PUBLIC INSPECTION. FORM 990, PART IX, LINE 11G OUTSIDE SERVICES: PROGRAM SERVICE EXPENSES 1,613,595. MANAGEMENT AND GENERAL EXPENSES 54,181. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,667,776. LEGAL SETTLEMENT: PROGRAM SERVICE EXPENSES 124. MANAGEMENT AND GENERAL EXPENSES -4,797. FUNDRAISING EXPENSES 0. TOTAL EXPENSES -4,673. MEDICAL SUPPLIES AC: PROGRAM SERVICE EXPENSES 8. MANAGEMENT AND GENERAL EXPENSES 3. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11. OTHER: PROGRAM SERVICE EXPENSES -515. MANAGEMENT AND GENERAL EXPENSES -220. FUNDRAISING EXPENSES 0. TOTAL EXPENSES -735. FORM 990, PART XI, LINE 9: CAPITAL CONTRIBUTIONS TO AFFILIATES -43,430,000. DISSOLUTION OF SUBS -3,731,537. GOODWILL (DISREGARDED ENTITY) 14,239,537. 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