2020-11-12T20:52:56-06:00 2019-12-31 ERNST & YOUNG US LLP 200 CLARENDON ST BOSTON MA 021165072 990 2019-01-01 384016550 Catalyst Institute Inc % FRANK A SCALISE CATA 6178861000 465 MEDFORD STREET BOSTON MA 02129 GREGORY P WINN TREASURER 6178861000 2020-11-11 true MIKE A CINCOTTA P01595811 6172662000 71.56.5.91 06196520203175000004 2020-11-12 P 047C777BBD395ADD529156C75D94AFF56594489C 514CCA9FAAD99E40AE1E1127FCFA01BF8E073EA4 2019 2021-04-22 16:20:28Z GREGORY P WINN 465 MEDFORD STREET BOSTON MA 02129 5253562 false X N/A X 2016 MA TO IMPROVE THE ORAL HEALTH OF ALL. 12 11 31 0 53639 52639 0 0 234506 71057 12022 5156121 0 0 246528 5227178 0 0 0 0 5876119 5049387 0 0 0 4824308 10624169 10700427 15673556 -10453899 -10446378 671580593 739147696 1137730 2503666 670442863 736644030 TO IMPROVE THE ORAL HEALTH OF ALL. false false 5632620 0 71057 CATALYST INSTITUTE, INC. IS A NOT-FOR-PROFIT DENTAL SERVICE ORGANIZATION WITH A MISSION TO IMPROVE THE ORAL HEALTH OF ALL AND A VISION TO ACHIEVE PERSON-CENTERED HEALTH BY TRANSFORMING THE SYSTEMS OF POLICY, FINANCE, CARE, AND COMMUNITY. CATALYST INSTITUTE, INC. AND ITS SUBSIDIARIES' ACTIVITIES INCLUDE, BUT ARE NOT LIMITED TO, SECURING DENTAL SERVICES FOR EMPLOYEE GROUPS, INDIVIDUALS AND THEIR FAMILIES; INCLUDING THE SAFETY NET POPULATIONS THROUGH MEDICARE, MEDICARE ADVANTAGE AND CHIP PROGRAMS; PROVIDING INNOVATIVE PRODUCTS AND SERVICES; FINANCE AND DEVELOP PROFESSIONAL AND SCIENTIFIC STUDY AND RESEARCH; AND EDUCATE THE PUBLIC CONCERNING THE IMPORTANCE OF ORAL HEALTH. 5632620 false false false false false false false false false true false false true true false false true false false true false false false false false false false false true false false false false false false false false false false false false true true true true false true 18 0 true 31 true false false false false false false true false X 12 11 true true false false false false false true true false false true true true true true true true true false MA X FRANK A SCALISE 6178861000 465 MEDFORD STREET BOSTON MA 02129 STEVEN J POLLOCK PRES. & Director 4.5 35.5 X X 0 2621053 1651834 ROBERT E LYNN EVP - CHIEF SALES & RETENT. DQ 4.5 35.5 X 0 1228562 553514 DAVID ABELMAN CLERK (1/1/19-2/28/19) 4.5 35.5 X 0 1243378 510443 DONNA J KASIAN SVP COMM. & VISION PLAN DQ 4.5 35.5 X 0 1562525 28674 ALAN L MADISON EVP - CHIEF OPER. OFFICER DQ 4.5 35.5 X 0 1047846 503522 TODD R CRUSE EVP-PUBLIC AFFAIRS/CARE DELIV 4.5 35.5 X 0 870014 384790 JAMES E COLLINS FORMER Treasurer 0.0 0.0 X 0 1205682 20594 DENNIS J LEONARD president, delta dental 4.5 35.5 X 0 946904 271607 JEFFREY C BROWN TREASURER (1/1/19-2/28/19) 4.5 35.5 X 0 652564 21881 JAMES P HAWKINS CLERK (2/28/19-12/31/19) 4.5 35.5 X 0 550452 39982 GREGORY P WINn TREASURER (2/28/19-12/31/19) 4.5 35.5 X 0 515945 35334 PAMELA DA REEVE CHAIR / DIRECTOR 2.5 2.5 X 150000 0 0 RODERICK K KING DIRECTOR 1.75 3.25 X 115818 0 0 KATHLEEN V BETTS DIRECTOR 1.75 1.75 X 115580 0 0 EVELYN H MILLER DIRECTOR 1.75 1.75 X 105822 0 0 ROBERT J WEYANT DIRECTOR 1.75 2.75 X 105584 0 0 COLLEEN D BALDWIN DIRECTOR 1.75 1.75 X 105391 0 0 LINDA J HALL DIRECTOR 1.75 1.75 X 100580 0 0 TODD W MARSHALL DIRECTOR 1.75 1.75 X 100580 0 0 DR ANDREW C AGWUNOBI DIRECTOR 1.75 1.75 X 99996 0 0 JESSICA A ZEASKE DIRECTOr (6/5/19-12/31/19) 1.75 1.75 X 53333 0 0 CASWELL A EVANS JR DIRECTOR (1/1/19- 6/18/19) 1.75 1.75 X 52500 0 0 DONALD J KENNEY DIRECTOR (1/1/19-6/18/19) 1.75 1.75 X 50820 0 0 THOMAS J GALLIGAN III DIRECTOR (1/1/19-6/18/19) 1.75 2.75 X 50582 0 0 MARY V KAPLAN DIRECTOR (1/1/19-6/18/19) 1.75 1.75 X 50389 0 0 WILLIAM C MILLS II DIRECTOR (9/1/19-12/31/19) 1.75 1.75 X 33332 0 0 1256975 12444925 4022175 8 true true false HEALTH SCAPE ADVISORS LLC 55 W MONROE ST SUITE 2100 CHICAGO IL 60603 CONSULTING 120190 1 0 CONSULTING SERVICES 900099 71057 71057 71057 4332832 53639 4279193 0 0 0 0 0 849673 26384 823289 823289 823289 0 0 0 0 0 0 0 0 0 0 5227178 71057 53639 5102482 0 0 0 0 1290307 774184 516123 0 3180169 1908101 1272068 0 35566 21340 14226 543345 326007 217338 0 2814 2814 2744615 2744615 0 0 718637 718637 2819790 2819790 1040434 624260 416174 83324 49994 33330 100277 60166 40111 0 164772 98863 65909 499188 299513 199675 0 90478 54287 36191 0 1646328 987797 658531 65548 39329 26219 289214 173528 115686 SUBSCRIPTIONS AND DUES 62033 37220 24813 FEES AND OTHER 224606 134764 89842 BOD EXPENSE 72111 43267 28844 15673556 5632620 10040936 0 0 0 56503599 74558183 0 0 0 2462870 0 0 0 0 0 0 0 0 68320 450485 504339 436918 132969 67421 0 307590400 0 0 0 0 0 0 614875705 354018337 671580593 739147696 951270 1349958 0 0 0 0 0 0 0 0 0 0 0 0 0 0 186460 1153708 1137730 2503666 X 670442863 736644030 0 0 670442863 736644030 671580593 739147696 X -10446378 40086220 36561325 X false true X true false 92993 60958 32035 295906 260520 35386 115440 115440 67421 INVESTMENT IN SUBSIDIARIES 354018337 354018337 0 PAYABLE OPEN FOR TRADE 900950 OTHER TAXES PAYABLE 133000 INTERCOMPANY DUE TO RELATED ORG. 119758 1153708 SCHEDULE D, PART XIII, SUPPLEMENTAL INFORMATION ASC 740 DISCLOSUE (FIN 48) THERE IS NO FIN 48/ASC 740 FOOTNOTE. HOWEVER, THE FOLLOWING DISCLOSURE WAS MADE: THE COMPANY DETERMINES WHETHER A TAX POSITION OF THE COMPANY IS MORE LIKLEY THAN NOT TO BE SUSTAINED UPON EXAMINATION, INCLUDING RESOLUTION OF ANY RELATED APPEALS OF LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITION. FOR TAX POSITIONS MEETING THE MORE LIKLEY THAN NOT THRESHOLD, THE TAX AMOUNT RECOGNIZED IN THE FINANCIAL STATEMENTS IS REDUCED BY THE LARGEST BENEFIT THAT HAS A GREATER THAN FIFTY PERCENT LIKELIHOOD OF BEING REALIZED UPON THE ULTIMATE SETTLEMENT WITH THE RELEVANT TAXING AUTHORITY. Central America and the Caribbean 0 0 Investments 10405049 0 0 0 0 10405049 10405049 false false true false false false X X true true X X X X X X true false false true true true true true false STEVEN J POLLOCK PRES. & Director 0 892142 0 763100 0 965811 0 1646602 0 5232 0 4272887 0 965811 DENNIS J LEONARD president, delta dental 0 430158 0 144100 0 372646 0 266613 0 4994 0 1218511 0 372646 JEFFREY C BROWN TREASURER (1/1/19-2/28/19) 0 347269 0 102602 0 202693 0 16911 0 4970 0 674445 0 202693 DAVID ABELMAN CLERK (1/1/19-2/28/19) 0 418262 0 218229 0 606887 0 505449 0 4994 0 1753821 0 606887 GREGORY P WINn TREASURER (2/28/19-12/31/19) 0 241349 0 68000 0 206596 0 30372 0 4962 0 551279 0 206596 JAMES E COLLINS FORMER Treasurer 0 0 480010 0 725672 0 19772 0 822 0 1226276 0 725672 ALAN L MADISON EVP - CHIEF OPER. OFFICER DQ 0 443446 0 495400 0 109000 0 498528 0 4994 0 1551368 0 109000 TODD R CRUSE EVP-PUBLIC AFFAIRS/CARE DELIV 0 379568 0 165300 0 325146 0 379558 0 5232 0 1254804 0 325146 JAMES P HAWKINS CLERK (2/28/19-12/31/19) 0 266957 0 76545 0 206950 0 35204 0 4778 0 590434 0 206950 DONNA J KASIAN SVP COMM. & VISION PLAN DQ 0 372612 0 556003 0 633910 0 24236 0 4438 0 1591199 0 633910 ROBERT E LYNN EVP - CHIEF SALES & RETENT. DQ 0 396584 0 174700 0 657278 0 548282 0 5232 0 1782076 0 657278 SCHEDULE J, PART I, LINE 1A SUPPLEMENTAL COMPENSATION INFORMATION THE CHIEF EXECUTIVE OFFICER/PRESIDENT MAY TRAVEL FIRST CLASS FOR ALL BUSINESS FLIGHTS. ALL OTHER OFFICERS OF A SR. VICE PRESIDENT LEVEL OR GREATER MAY TRAVEL FIRST CLASS ON DOMESTIC FLIGHTS OF FOUR HOURS ORGREATER OF CONTINUOUS DURATION. ALL BUSINESS RELATED TRAVEL IS NOT TAXED TO THE EMPLOYEE. SOCIAL CLUB DUES, IF ANY, ARE PAID ONLY WHEN THEY ARE BUSINESS IN NATURE. BECAUSE THESE DUES ARE BUSINESS RELATED, ANY DUES ARE NOT TREATED AS TAXABLE INCOME TO THE INDIVIDUAL. THE ABOVE ITEMS WERE PAID THROUGH DENTAQUEST, LLC, A RELATED ORGANIZATION. SCHEDULE J, PART I, QUESTION 4A SEVERANCE PAYMENT JAMES E. COLLINS RECEIVED SEVERANCE IN THE AMOUNT OF $480,010 AND DONNA KASIAN RECEIVED SEVERANCE IN THE AMOUNT OF $79,231. THIS AMOUNT IS INCLUDED IN BOTH INDIVIDUALS' COMPENSATION ON SCHEDULE J, PART II. SCHEDULE J, PART I, QUESTION 5 COMPENSATION CONTINGENT ON REVENUE DENTAQUEST, LLC SPONSORS A TARGET INCENTIVE PLAN THAT ALLOWS PARTICIPANTS ANNUALLY TO EARN A THRESHOLD, TARGET OR SUPERIOR INCENTIVE (AS A PERCENT OF THEIR BASE SALARY). THE ACTUAL INCENTIVE TO BE AWARDED IS BASED ON THE ACHIEVEMENT OF PERFORMANCE GOALS THAT ARE SET AT THE BEGINNING OF THE YEAR BY THE COMPENSATION COMMITTEE AS PART OF THE ORGANIZATION'S EXECUTIVE COMPENSATION PHILOSOPHY AND PAY-FOR-PERFORMANCE PHILOSOPHY. AMONG THE PERFORMANCE GOALS ARE A REVENUE GOAL, A NET INCOME GOAL AND A MEMBERSHIP GOAL. EACH PARTICIPANT IN THE TARGET INCENTIVE PLAN HAS A MAXIMUM INCENTIVE THAT CAN BE EARNED REGARDLESS OF THE ATTAINMENT OF THE REVENUE, NET INCOME AND/OR MEMBERSHIP GOALS. THE MAXIMUM INCENTIVE OPPORTUNITY FOR EACH PARTICIPANT IS SET SO THAT THE PARTICIPANT'S TOTAL POSSIBLE COMPENSATION IS REASONABLE FOR PURPOSES OF INTERMEDIATE SANCTIONS, SECTION 4958 OF THE INTERNAL REVENUE CODE. SCHEDULE J, PART I, QUESTION 6 & 7 COMPENSATION CONTINGENT ON NET EARNINGS NON-FIXED PAYMENTS: THE COMPANY PROVIDES ANNUAL INCENTIVE BONUSES TO MANAGEMENT EMPLOYEES THAT ARE CALCULATED BASED ON THE PERFORMANCE OF THE COMPANY AND THE INDIVIDUAL EMPLOYEE. THE company followed the PROCESS TO ESTABLISH THE PRESUMPTION THAT COMPENSATION PAID TO THE ORGANIZATION'S CEO AND OTHER TOP MANAGEMENT WAS REASONABLE AS DESCRIBED IN SECTION 4958. THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS APPROVES THE OVERALL ANNUAL INCENTIVE BONUS POOL AND REVIEWS AND APPROVES COMPENSATION RELEVANT TO EXECUTIVE OFFICERS REPORTING TO THE COMPANY'S CEO. THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS AND MAKES RECOMMENDATIONS TO THE BOARD OF DIRECTORS ON COMPENSATION MATTERS FOR THE COMPANY'S CEO. THE BOARD OF DIRECTORS APPROVES THE COMPENSATION OF THE COMPANY'S CEO. LONG-TERM INCENTIVE COMPENSATION: THE FOLLOWING DSM AND DENTAQUEST, LLC EMPLOYEES PARTICIPATE IN THE DENTAQUEST, LLC LONG-TERM INCENTIVE COMPENSATION PLAN AND RECEIVED THE PAYMENTS LISTED BELOW DURING 2019: STEVEN J. POLLOCK 965,811 JEFFREY C. BROWN 202,693 DAVID ABELMAN 606,887 GREGORY P. WINN 206,596 DENNIS J. LEONARD 372,646 ALAN L. MADISON 109,000 TODD R. CRUSE 325,146 JAMES P. HAWKINS 206,950 DONNA J. KASIAN 633,910 ROBERT E. LYNN 657,278 JAMES E. COLLINS 725,672 LONG-TERM INCENTIVE COMPENSATION PLAN PAYMENTS ARE BASED ON THE VALUATION OF THE COMPANY, DENTAQUEST, LLC, AND ARE PAID OUT OVER A FIVE YEAR PERIOD. PAYMENTS ARE MADE ANNUALLY AND PARTICIPANTS RECEIVE PAYOUTS FOR ALL VESTED BALANCES. THE ELIGIBLE LISTED EMPLOYEES OVER $250,000 AS OF 12/31/2019 PARTICIPATE IN A 457(B) SUPPLEMENTAL RETIREMENT PLAN. OF THOSE ELIGIBLE EMPLOYEES, DONNA KASIAN RECEIVED OF PAYMENT OF $15,316 IN 2019. THIS AMOUNT IS INCLUDED IN DONNA KASIANS COMPENSATION ON SCHEDULE J, PART II. SCHEDULE J, PART II COMPENSATION PAID BY RELATED ORGANIZATION: SCHEDULE J, PART II INCLUDES INDIVIDUALS THAT ARE PAID BY DENTAQUEST, LLC, A RELATED ORGANIZATION, BUT PERFORM SERVICES FOR BOTH DENTAQUEST, LLC AND CATALYST INSTITUTE INC., THE FILING ORGANIZATION. SCHEDULE J, PART II, COLUMN B(II) BONUS PAYMENTS COLUMN B (II) ON SCHEDULE J PART II INCLUDES BONUSES EARNED AND ACCRUED DURING 2018 BUT PAID IN 2019. SCHEDULE J, PART II, COLUMN B(III) COLUMN B(III) OTHER REPORTABLE COMPENSATION OTHER REPORTABLE COMPENSATION REPRESENTS LONG-TERM INCENTIVE COMPENSATION EXPENSE EARNED PRIOR TO 2019 BUT PAID DURING 2019. SCHEDULE J, PART II, COLUMN C DEFERRED COMPENSATION COLUMN C ON SCHEDULE J PART II INCLUDES LONG-TERM INCENTIVE COMPENSATION AND PENSION AMOUNTS EARNED DURING 2019 BUT PAID IN FUTURE YEARS. FORM 990, PART VI, LINE 2 BUSINESS RELATIONSHIPS STEVEN J. POLLOCK, GREGORY P. WINN, JEFFREY C. BROWN, JAMES E. COLLINS, JAMES P. HAWKINS, DAVID ABELMAN, PAMELA D.A. REEVE, DR. ANDREW C. AGWUNOBI, COLLEEN D. BALDWIN, KATHLEEN V. BETTS, CASWELL A. EVANS JR., THOMAS J. GALLIGAN III, LINDA J. HALL, MARY V. KAPLAN, DONALD J. KENNEY, RODERICK K. KING, TODD W. MARSHALL, EVELYN H. MILLER, WILLIAM C. MILLS III, ROBERT J. WEYANT, AND JESSICA A. ZEASKE HAVE A BUSINESS RELATIONSHIP SINCE THEY JOINTLY SERVE AS OFFICERS OR DIRECTORS OF THE ORGANIZATION AND ONE OR MORE ITS SUBSIDIARIES. FORM 990, PART VI, LINE 3 DELEGATE CONTROL OVER MANAGEMENT DUTIES THE COMPANY HIRES DENTAQUEST, LLC (A RELATED PARTY) TO PROVIDE MANAGEMENT SERVICES. FORM 990, PART VI, QUESTION 11B REVIEW PROCESS THE AUDIT COMMITTEE, A COMMITTEE OF THE CATALYST BOARD OF DIRECTORS, REVIEWS THE final FORM 990 PRIOR TO ACTUAL FILING. MEMBERS OF THE EXTERNAL TAX FIRM (CURRENTLY ERNST & YOUNG U.S., LLP) INITIALLY DISCUSS, PREPARE AND REVIEW THE RETURN WITH MANAGEMENT. MANAGEMENT AND STAFF REVIEW THE 990 FOR ACCURACY AND COMPLETENESS AND PROVIDE COMMENTS TO THE PREPARER. ONCE THE RETURN IS FULLY ANALYZED AND PREPARED, A COPY IS DISTRIBUTED TO THE AUDIT COMMITTEE MEMBERS IN ADVANCE OF A SPECIFIC MEETING. AUDIT COMMITTEE MEMBERS REVIEW THE DRAFT FORM 990 AND THEN SEND TO THE FULL BOARD. A COPY OF THE FINAL FORM 990 IS SENT TO THE FULL BOARD AND OFFICERS BEFORE IT IS FILED. FORM 990, PART VI, QUESTION 12C CONFLICTS OF INTEREST MONITORING THE ORGANIZATION'S CONFLICT OF INTEREST POLICY PROVIDES THAT ANNUALLY, EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS SHALL SIGN A QUESTIONNAIRE AFFIRMING THAT SUCH PERSON RECEIVED A COPY OF THE CONFLICT OF INTEREST POLICY, READ AND UNDERSTANDS THE POLICY AND AGREES TO COMPLY WITH THE POLICY. ADDITIONALLY, THE SIGNED QUESTIONNAIRE AFFIRMS THAT THE PERSON UNDERSTANDS DENTAL SERVICE OF MASSACHUSETTS, INC. IS A CHARITABLE ORGANIZATION AND THAT IN ORDER TO MAINTAIN ITS TAX-EXEMPT STATUS, DENTAL SERVICE OF MASSACHUSETTS MUST ENGAGE IN ACTIVITIES WHICH ACCOMPLISH ONE OR MORE OF ITS TAX-EXEMPT PURPOSES. ENFORCEMENT IF THE GOVERNING BOARD OR COMMITTEE HAS REASONABLE CAUSE TO BELIEVE A BOARD OR COMMITTEE MEMBER ("MEMBER") HAS FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTEREST, IT SHALL INFORM THE MEMBER OF THE BASIS FOR SUCH BELIEF AND AFFORD THE MEMBER AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE MEMBER'S RESPONSE AND AFTER MAKING FURTHER INVESTIGATION AS WARRANTED BY THE CIRCUMSTANCES, THE GOVERNING BOARD OR COMMITTEE DETERMINES THE MEMBER HAS FAILED TO DISCLOSE AN ACTUAL OR POSSIBLE CONFLICT OF INTEREST, IT SHALL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION. WHO IS COVERED? THE ORGANIZATION'S CONFLICT OF INTEREST POLICY COVERS EACH DIRECTOR, PRINCIPAL OFFICER AND MEMBERS OF A COMMITTEE WITH GOVERNING BOARD DELEGATED POWERS. LEVEL OF DETERMINATION AND REVIEW OF CONFLICTS IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER PRESENTATION OF A POTENTIAL TRANSACTION OR ARRANGEMENT IS MADE BY AN INTERESTED PERSON, THE REMAINING DISINTERESTED BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. THE CHAIRPERSON OF THE GOVERNING BOARD OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE TRANSACTION OR ARRANGEMENT IN QUESTION. AFTER EXERCISING DUE DILIGENCE, THE GOVERNING BOARD OR COMMITTEE SHALL DETERMINE IF CATALYST INSTITUTE, INC. CAN OBTAIN, WITH REASONABLE EFFORTS, A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT FROM A PERSON OR ENTITY THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY POSSIBLE UNDER 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 ORGANIZATION'S BEST INTEREST, FOR ITS OWN BENEFIT AND WHETHER IT IS FAIR AND REASONABLE. IN CONFORMITY WITH THE ABOVE DETERMINATION, THE GOVERNING BOARD OR COMMITTEE SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. RESTRICTIONS PLACED ON CONFLICTED PERSONS IN CONNECTION WITH ANY ACTUAL OR POSSIBLE CONFLICT OF INTEREST, AN INTERESTED PERSON MUST DISCLOSE THE EXISTENCE OF THE FINANCIAL INTEREST AND BE GIVEN THE OPPORTUNITY TO DISCLOSE ALL MATERIAL FACTS TO THE DIRECTORS AND MEMBERS OF COMMITTEES WITH GOVERNING BOARD DELEGATED POWERS CONSIDERING THE PROPOSED TRANSACTION OR ARRANGEMENT. AFTER DISCLOSURE OF THE FINANCIAL INTEREST AND ALL MATERIAL FACTS, AND AFTER ANY DISCUSSION WITH THE INTERESTED PERSON, HE/SHE SHALL LEAVE THE GOVERNING BOARD OR COMMITTEE MEETING WHILE THE DETERMINATION OF A CONFLICT OF INTEREST IS DISCUSSED AND VOTED UPON. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. FORM 990, PART VI, QUESTION 15A & B COMPENSATION POLICY THE PROCESS FOR DETERMINING COMPENSATION FOR THE ORGANIZATION'S CEO AND OTHER TOP MANAGEMENT IS MODELED AFTER THE REQUIREMENTS IN THE INTERNAL REVENUE CODE SECTION 4958 TO ESTABLISH THE REBUTTABLE PRESUMPTION OF REASONABLE COMPENSATION. COMPENSATION IS REVIEWED AND APPROVED BY A COMPENSATION COMMITTEE ("THE COMMITTEE") OF THE BOARD, WHICH IS COMPRISED OF INDEPENDENT PERSONS, ON AN ANNUAL BASIS. THE COMMITTEE ENGAGED AN INDEPENDENT COMPENSATION CONSULTANT, WHICH PRESENTED TO THE COMMITTEE COMPARABLE MARKET DATA FROM PUBLISHED SURVEYS AND FORMS 990 OF COMPARABLE ORGANIZATIONS TO ASSIST IN EVALUATING THE COMPENSATION FOR EACH INDIVIDUAL. THE COMMITTEE CONDUCTED A REVIEW OF THIS COMPARABILITY DATA AND DOCUMENTED ITS DELIBERATIONS AND DISCUSSIONS IN MINUTES THAT ARE RETAINED WITH OTHER GOVERNANCE RECORDS OF THE ORGANIZATION. THE COMMITTEE FOLLOWED THE PROCESS TO ESTABLISH THE PRESUMPTION THAT COMPENSATION PAID TO THE ORGANIZATION'S CEO AND OTHER TOP MANAGEMENT WAS REASONABLE FOR PURPOSES OF SECTION 4958 BY RELYING ON PROFESSIONAL ADVICE IN A WRITTEN OPINION OF REASONABLENESS FROM INDEPENDENT COMPENSATION CONSULTANT. THE COMMITTEE INFORMS THE BOARD OF ITS DECISIONS AT THE NEXT BOARD MEETING. FORM 990, PART VI, QUESTION 19 PUBLIC DISCLOSURE WE FILE A MASSACHUSETTS FORM PC WITH AN ATTACHED FORM 990. THE FORM PC IS FILED WITH THE ATTORNEY GENERAL'S OFFICE AND IS AVAILABLE FOR INSPECTION BY ANY OF THE INTERESTED PUBLIC. THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND BYLAWS ARE MADE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9 other changes in net assets EQUITY IN SUBSIDIARIES 41,553,032 CHANGE IN VALUE (RETAINED EARNINGS) 51,150,809 DISTRIBUTIONS TO SUBSIDIARIES (43,742,516) capital contributions to related organizations (12,400,000) Total other changes in net assets 36,561,325 FORM 990 PART IX LINE 11G DESCRIPTION:EXPERT ADVISORS & CONSULTANTS TOTAL FEES:2818734 FORM 990 PART IX LINE 11G DESCRIPTION:RECRUITING SERVICES TOTAL FEES:1056 Advantage Dental Clinics LLC 442 SW Umatilla Ave Redmond OR 97756 270364023 Care Delivery OR 0 0 DQ GROUP Advantage Consulting Services LLC 442 SW Umatilla Ave Redmond OR 97756 263981408 Care Delivery OR 0 0 DQ GROUP Advantage Support Services LLC 442 SW Umatilla Ave Redmond OR 97756 263981367 Care Delivery OR 0 0 DQ GROUP Advantage Clinic Properties LLC 442 SW Umatilla Ave Redmond OR 97756 270357326 Care Delivery OR 0 0 DQ GROUP Advantage Equipment Leasing LLC 442 SW Umatilla Ave Redmond OR 97756 800426323 Care Delivery OR 0 0 DQ GROUP Advantage Dental Service LLC 442 SW Umatilla Ave Redmond OR 97756 931195386 Care Delivery OR 0 0 DQ GROUP Advantage Professional Management LLC 442 SW Umatilla Ave Redmond OR 97756 260207886 Care Delivery OR 0 0 DQ GROUP DentaQuest of Arizona LLC 465 Medford Street BOSTON MA 02129 113692025 DENTAL SVCS WI 0 -13271015 DQ GROUP DentaQuest of Georgia LLC 465 Medford Street BOSTON MA 02129 141885493 DENTAL SVCS WI 0 357512 DQ GROUP DentaQuest of Illinois Inc 465 Medford Street BOSTON MA 02129 421529687 DENTAL SVCS WI 0 -8162885 DQ GROUP DentaQuest of Kentucky LLC 465 Medford Street BOSTON MA 02129 141885490 DENTAL SVCS WI 0 3549388 DQ GROUP DentaQuest of Maryland Inc 465 Medford Street BOSTON MA 02129 810567214 DENTAL SVCS WI 0 -3740085 DQ GROUP DentaQuest of Minnesota LLC 465 Medford Street BOSTON MA 02129 562356445 DENTAL SVCS WI 0 4423493 DQ Group DentaQuest of New Jersey LLC 465 Medford Street BOSTON MA 02129 562356433 DENTAL SVCS WI 0 474732 DQ Group DentaQuest of New Mexico LLC 465 Medford Street BOSTON MA 02129 141885481 DENTAL SVCS WI 0 2430065 DQ Group DentaQuest IPA of New York LLC 465 Medford Street BOSTON MA 02129 810616910 DENTAL SVCS WI 0 29780815 DQ Group DentaQuest of New York LLC 465 Medford Street BOSTON MA 02129 141885500 DENTAL SVCS WI 0 -4655251 DQ Group DentaQuest of Tennessee LLC 465 Medford Street BOSTON MA 02129 352177954 DENTAL SVCS WI 0 8825964 DQ Group DentaQuest Care Group Management LLC 465 Medford Street BOSTON MA 02129 320487994 CARE DELIVERY DE 0 157486344 DQ Group DentaQuest LLC 465 Medford Street BOSTON MA 02129 200390099 DENTAL SVCS DE -17522790 202643164 DQ Group Dental Services LLC 14201 NE 20TH AVE 2204 VANCOUVER WA 98686 050572255 CARE DELIVERY WA 0 0 DQ GROUP DQ PARTNERSHIP FOR ORL HEALTH ADV LLC 465 MEDFORD STREET BOSTON MA 02129 823649978 DENTAL SVCS MA 0 0 CATALYST DentaQuest Foundation LLC 465 MEDFORD STREET BOSTON MA 02129 823645884 DENTAL SVCS MA 0 0 CATALYST DQCGM of Washington LLC 465 MEDFORD STREET BOSTON MA 02129 843407897 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