2019-08-19T14:39:13-05:00 2018-12-31 410746749 CLIFTONLARSONALLEN LLP 220 SOUTH SIXTH STREET SUITE 300 MINNEAPOLIS MN 55402 990 2018-01-01 411518013 CRITICAL CARE SERVICES INC CRIT 6126384900 3010 BROADWAY STREET NE MINNEAPOLIS MN 554131768 ROBERT SANNERUD CFO 6126384900 2019-08-15 1 KOREY BOELTER P00775161 6123764500 67.137.57.251 2019-08-15 06:09:59 CD P DBE5E9100BD705C5801F05FB9419F1388E8E9FDA 64D167D091931D8555FA058DC075EC7E31BCB1E3 2018 2019-02-21 02:37:17Z LIFE LINK III EDWARD R EROE 3010 BROADWAY STREET NE MINNEAPOLIS MN 554131768 38126316 0 X WWW.LIFELINKIII.COM X 1985 MN TO PROVIDE SAFE AND EFFECTIVE MEDICAL CARE AND TRANSPORTATION SERVICES. 13 12 145 22 0 3732 0 0 33140719 36638671 427238 394149 93349 89933 33661306 37122753 0 0 0 0 10914172 12774698 0 0 0 20121123 23245799 31035295 36020497 2626011 1102256 53121865 57374823 19044708 19231129 34077157 38143694 X THE MISSION OF LIFE LINK III IS SAFE AND EFFECTIVE AIR MEDICAL TRANSPORT. WE ACCOMPLISH THIS BY SETTING, HOLDING AND ENHANCING THE STANDARD FOR EXCELLENCE IN PATIENT CARE, TRANSPORTATION AND INDUSTRY LEADERSHIP. 1 0 27080208 0 34190926 ROTOR WING SERVICESLIFE LINK III PROVIDES AIR TRANSPORTATION OF PATIENTS REQUIRING CRITICAL CARE AND EMERGENCY MEDICAL CARE IN HELICOPTERS CONFIGURED FOR MOBILE INTENSIVE CARE. LIFE LINK III PROVIDES HELICOPTER AIR MEDICAL TRANSPORTATION INCLUDING ON-SCENE EMERGENCY RESPONSE AND INTER-FACILITY TRANSPORT 24 HOURS A DAY, 365 DAYS PER YEAR. WITH HELICOPTER BASES THROUGHOUT MINNESOTA AND WESTERN WISCONSIN, LIFE LINK III TRANSPORTS ALL TYPES OF CRITICALLY ILL OR INJURED PATIENTS. LIFE LINK III PROVIDED 2,541 ROTOR WING TRANSPORTS IN 2018. 2703060 0 2447745 FIXED WING SERVICESLIFE LINK III PROVIDES AIR TRANSPORTATION OF PATIENTS REQUIRING CRITICAL CARE AND EMERGENCY MEDICAL CARE IN FIXED WING AIRCRAFT CONFIGURED FOR MOBILE INTENSIVE CARE. LIFE LINK III PROVIDES AIRPLANE AMBULANCE TRANSPORTATION THROUGHOUT THE UNITED STATES, 24 HOURS A DAY, 365 DAYS PER YEAR. LIFE LINK III HAS A DEDICATED, MEDICALLY-CONFIGURED AIRPLANE READY AT ALL TIMES AND HAS ACCESS TO A FLEET OF OTHER AIRCRAFT FOR ADDITIONAL SUPPORT TO TRANSPORT ALL TYPES OF CRITICALLY ILL OR INJURED PATIENTS. LIFE LINK III PROVIDED 226 FIXED WING TRANSPORTS IN 2018. 0 0 0 COMMUNITY EDUCATION AND SAFETYLIFE LINK III'S AIRPLANE AND HELICOPTER TRANSPORTATION SERVICES ARE ACCREDITED BY THE COMMISSION ON ACCREDITATION OF MEDICAL TRANSPORT SYSTEMS (CAMTS), WHICH REFLECTS THE ORGANIZATION'S COMMITMENT TO MEETING OR EXCEEDING THE HIGHEST STANDARDS OF PATIENT CARE, QUALITY AND SAFETY. THERE WERE OVER 155 CAMTS ACCREDITED SERVICES NATIONALLY AND INTERNATIONALLY BY THE END OF 2018. LIFE LINK III IS ONE OF ONLY 54 MEDICAL TRANSPORTATION SERVICES NATIONALLY AND INTERNATIONALLY THAT ARE CAMTS ACCREDITED FOR THE TWO MODES OF CRITICAL CARE AIR MEDICAL TRANSPORTATION: ROTOR WING AND FIXED WING. LIFE LINK III SUCCESSFULLY COMPLETED THE REACCREDITATION PROCESS IN MARCH 2019, WHICH EXTENDED ACCREDITATION THROUGH MARCH 2022.LIFE LINK III PROVIDES OUTREACH EDUCATION AND TRAINING TO PRE-HOSPITAL AND HOSPITAL-BASED HEALTHCARE PROVIDERS COVERING SUCH TOPICS AS HELICOPTER LANDING ZONE SET UP, SCENE SAFETY, PATIENT TRANSPORT PREPARATION AND OTHER PATIENT CARE TOPICS. LIFE LINK III ACTIVELY PARTICIPATES WITH THE COMMUNITIES IT SERVES, INCLUDING PUBLIC, INFORMATIONAL, SCHOOL, INJURY PREVENTION AND COMMUNITY EVENTS. IN 2018 THE ORGANIZATION DONATED MORE THAN 2,500 HOURS OF CLINICIAN TIME, 505 HOURS OF PILOT TIME AND 158 HOURS OF AIRCRAFT TIME FOR 405 SEPARATE COMMUNITY AND HEALTHCARE-RELATED EVENTS AND TRAININGS. THE 188 OUTREACH EDUCATION PROGRAMS TRAINED 15,000 EMS AND COMMUNITY-BASED MEDICAL AND FIRST RESPONDERS.IN ADDITION TO THE COMMUNITY AND HEALTHCARE-RELATED EDUCATION AND SAFETY EVENTS, LIFE LINK III CONTINUES TO SEEK NEW CHANNELS FOR DELIVERING EDUCATION TO EMERGENCY SERVICE, FIRST RESPONDER, AND HEALTHCARE PERSONNEL FROM MINNESOTA, WISCONSIN, AND SURROUNDING STATES. LIFE LINK III PROVIDES HIGH QUALITY CONTINUING EDUCATION WITH EXCEPTIONAL SPEAKERS AND SPECIAL GUESTS THROUGH BOTH ITS CLINICAL EDUCATIONAL PROGRAM AND LINKED EVENTS, A REGIONAL EDUCATIONAL SERIES THAT BRINGS EDUCATION TO THE REGION WITH THE GOAL OF ENHANCING SKILLS AND DEMONSTRATING TRANSPORT BEST PRACTICES FOR PROVIDERS OF ALL LEVELS, FROM RESCUE AND PRE-HOSPITAL SITUATIONS TO TRANSPORT AND IN-HOSPITAL TREATMENT. 0 0 0 FINANCIAL ASSISTANCELIFE LINK III MAINTAINS A FINANCIAL ASSISTANCE PROGRAM CALLED COMMUNITY CARE. THIS PROGRAM PROVIDES CARE FOR THOSE WHO ARE UNINSURED OR UNABLE TO AFFORD THE COST OF SERVICES. WE MAINTAIN RECORDS TO IDENTIFY AND MONITOR THE LEVEL OF CHARITY CARE UNDER THIS PROGRAM. APPLICANTS FOR OUR CHARITY CARE PROGRAM ARE REQUESTED TO PROVIDE CURRENT AND PRIOR YEAR INCOME INFORMATION. WE USE INCOME-BASED CRITERIA IN OUR DETERMINATION OF CHARITY CARE AND USE 200% OF THE FEDERAL POVERTY GUIDELINES ESTABLISHED BY THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES IN DETERMINING ELIGIBILITY. IN 2018 THE COST OF PROVIDING CARE TO PATIENTS UNDER THIS PROGRAM WAS $254,597. LIFE LINK III PARTICIPATES IN GOVERNMENT PROGRAMS AND IS COMMITTED TO SERVING ALL PERSONS IN NEED REGARDLESS OF RACE, CREED, SEX, NATIONALITY, RELIGION, DISABILITY, AGE OR ABILITY TO PAY. TO PROMOTE ACCESS TO ALL INDIVIDUALS, LIFE LINK III PARTICIPATES IN THE FOLLOWING PUBLIC HEALTHCARE PROGRAMS: MEDICARE, MEDICAID (MINNESOTA AND WISCONSIN), MINNESOTACARE, BADGERCARE, AND OTHER GENERAL ASSISTANCE PROGRAMS. PAYMENTS FROM THESE PROGRAMS FREQUENTLY DO NOT COVER THE COSTS LIFE LINK III INCURS TO SERVE PROGRAM BENEFICIARIES. IN 2018 THE COST OF HEALTH CARE SERVICES PROVIDED BY LIFE LINK III WAS $5,898,849 IN EXCESS OF THE REIMBURSEMENTS RECEIVED FROM PUBLIC PROGRAMS. 0 0 0 PATIENT RECEIVABLES AND CREDIT POLICYPATIENT ACCOUNTS RECEIVABLE ARE UNCOLLATERALIZED PATIENT OBLIGATIONS THAT ARE STATED AT THE AMOUNT MANAGEMENT EXPECTS TO COLLECT FROM OUTSTANDING BALANCES. THESE OBLIGATIONS ARE PRIMARILY FROM LOCAL RESIDENTS, MOST OF WHOM ARE INSURED UNDER THIRD-PARTY PAYORS ON THE PATIENTS' BEHALF. OR, IF THE PATIENT IS UNINSURED, THE PATIENT RECEIVES AN AUTOMATIC DISCOUNT EQUAL TO THE DISCOUNT GIVEN THE ORGANIZATION'S LARGEST THIRD PARTY PAYER, THEN THAT PATIENT IS BILLED DIRECTLY. ONCE CLAIMS ARE SETTLED WITH THE PRIMARY PAYER, ANY SECONDARY INSURANCE IS BILLED AND PATIENTS ARE BILLED FOR CO-PAY AND DEDUCTIBLE AMOUNTS THAT ARE PATIENTS' RESPONSIBILITY. PAYMENTS ON PATIENT ACCOUNTS RECEIVABLE ARE APPLIED TO THE SPECIFIC CLAIM IDENTIFIED ON THE REMITTANCE ADVICE OR STATEMENT. LIFE LINK III DOES NOT HAVE A POLICY TO CHARGE INTEREST ON PAST DUE ACCOUNTS. PATIENT ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF PATIENT ACCOUNTS RECEIVABLE, THE ORGANIZATION ANALYZES ITS COLLECTION HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE ORGANIZATION ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS, A PROVISION FOR BAD DEBTS AND CHARITABLE CARE. FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE ORGANIZATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE STANDARD RATES (OR DISCOUNTED RATES IF NEGOTIATED) AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN 2018 THESE BAD DEBTS TOTALED $3,382,172.PATIENT ACCOUNTS RECEIVABLE ARE RECORDED IN THE ACCOMPANYING BALANCE SHEET NET OF CONTRACTUAL ADJUSTMENTS AND AN ALLOWANCE FOR DOUBTFUL ACCOUNTS.IT IS UNKNOWN HOW MUCH BAD DEBT EXPENSE, IF ANY, REASONABLY COULD BE ATTRIBUTABLE TO PERSONS WHO LIKELY WOULD QUALIFY FOR FINANCIAL ASSISTANCE UNDER OUR COMMUNITY CARE PROGRAM. 0 0 0 29783268 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 38 0 1 145 1 0 0 0 0 0 0 0 0 0 0 0 0 X 13 12 0 0 1 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 0 0 MN X ROBERT SANNERUD CFO 6126384900 3010 BROADWAY STREET NE MINNEAPOLIS MN 554131768 JAMES GARVEY CHAIR 2.00 X X 0 0 0 JIM LESTE MS CHSP VICE CHAIR 2.00 X X 0 0 0 JOSEPH HELLIE MHA SECRETARY/TREASURER 2.00 X X 0 0 0 RALPH FRASCONE MD FACEP FAEM DIRECTOR & CMO 2.00 X X 0 0 0 ANDREW BAGNALL DIRECTOR 1.00 X 0 0 0 BOB BEACHER DIRECTOR 1.00 X 0 0 0 JOHN DOHERTY DIRECTOR (THROUGH JUNE 2018) 1.00 X 0 0 0 JOHN FOLSTAD DIRECTOR (THROUGH JANUARY 2018) 2.00 X 0 0 0 JOHN HICK MD DIRECTOR 2.00 X 0 0 0 ERIC LOHN DIRECTOR 2.00 X 0 0 0 MICHAEL MCAVOY MS FACHE DIRECTOR 1.00 X 0 0 0 DAVID MILLER MBA DIRECTOR 1.00 X 0 0 0 NARAYANA MURALI DIRECTOR 1.00 X 0 0 0 STEVEN STERNER MD FACEP PAST CHAIR 2.00 X 0 0 0 EDWARD R EROE FACHE CAE CMT PRESIDENT & CHIEF EXECUTIVE OFFICER 40.00 X X 292925 0 25612 ROBERT A SANNERUD CHIEF FINANCIAL OFFICER 40.00 X 200342 0 34566 KOLBY KOLBET VP OF CLINICAL SERVICES 40.00 X 165393 0 21415 CATHY RICHARDS VP OF EMPLOYEE & CUSTOMER ENGAGEMENT 40.00 X 162663 0 34825 PAUL MACHELEDT SENIOR DIRECTOR OF STRATEGIC PLANNING & ANALYTICS 40.00 X 157613 0 25194 JOSHUA HOWELL VP OF OPERATIONS (THROUGH NOV 2018) 40.00 X 161208 0 34793 JASON DICKINSON REGIONAL OPERATIONS MANAGER 40.00 X 110630 0 29945 CHERYL PASQUARELLA DIRECTOR OF COMPLIANCE & Q.A. 40.00 X 136523 0 19475 MICHAEL SINKULE REGISTERED NURSE 36.00 X 140933 0 35505 AMY SAYLOR REGIONAL OPERATIONS MANAGER 40.00 X 129704 0 17139 KEITH VELASKI REGISTERED NURSE 36.00 X 112082 0 30000 1770016 0 308469 14 0 1 0 AIR METHODS CORPORATION 5500 S QUEBEC STREET GREENWOOD VILLAGE CO 80111 FIXED WING AIRCRAFT, PILOTS & MECHANICS 9372445 GREINER CONSTRUCTION INC 121 S 8TH STREET MINNEAPOLIS MN 55402 ELEVATOR AND REMODEL 333653 K&E CONSULTING 1541 OAKVIEW COURT LINO LAKES MN 55038 IT SUPPORT 256639 3 ROTOR WING SERVICE 621910 34190926 34190926 FIXED WING SERVICE 621910 2447745 2447745 36638671 402946 402946 122685 34447 88238 88238 88238 960319 966030 3086 -5711 -3086 -8797 -8797 MISCELLANEOUS INCOME 900099 1695 1695 1695 37122753 36638671 0 484082 1317088 311034 1006054 9335888 6689483 2646405 314005 236755 77250 989933 815389 174544 817784 557166 260618 147386 147386 27676 27676 37383 37383 585311 585311 205653 205653 475724 159830 315894 427336 317474 109862 1486219 1329710 156509 777355 644135 133220 508399 508399 2569723 1771891 797832 714843 636852 77991 AIRCRAFT RENT 10984115 10984115 BAD DEBT EXPENSE 3382172 3382172 REPAIRS & MAINTENANCE 836282 836282 MEDICAL SUPPLIES 463812 462957 855 -383590 139624 -523214 36020497 29783268 6237229 0 2584633 5641432 5942196 4672414 37239 193368 210750 221880 183502 875226 48832941 13682232 33294617 35150709 9181277 8881575 1687651 1738219 53121865 57374823 1880211 1755338 11412325 9480224 5428826 7709616 323346 285951 19044708 19231129 X 34077157 38143694 34077157 38143694 53121865 57374823 X 1102256 -577830 3542111 X 0 1 X 1 0 X 27130364 28870586 28462288 33140719 36638671 154242628 27130364 28870586 28462288 33140719 36638671 154242628 0 0 0 154242628 209016 351103 447151 461341 525631 1994242 209016 351103 447151 461341 525631 1994242 1476235 17361 10021 1695 1505312 28815615 29239050 28909439 33612081 37165997 157742182 0.97780 0.97930 0.01260 0.01050 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME STATE PROVIDER TAX REFUND 0 0 0 0 0 0 0 0 1 12015 12015 0 PART II-B, LINE 1: LIFELINK III DOES NOT DIRECTLY ENGAGE IN ANY LOBBYING ACTIVITIES. A PERCENTAGE OF MEMBERSHIP DUES PAID TO THE ASSOCIATION OF AIR MEDICAL SERVICES, MINNESOTA AMBULANCE ASSOCIATION, ASSOCIATION FOR CRITICAL CARE TRANSPORT, AND HELICOPTER ASSOCIATION INTERNATIONAL ARE USED BY THOSE ORGANIZATIONS TO LOBBY ON BEHALF OF THEIR MEMBERS. 300000 300000 4685802 2263707 2422095 272630 96581 176049 43521661 11321944 32199717 52848 52848 35150709 DEFERRED AIRCRAFT MAINTENANCE 285951 285951 X 33380879 -577830 255511 -322319 33703198 37383 3382172 3419555 37122753 32635389 34447 34447 32600942 37383 3382172 3419555 36020497 PART X, LINE 2: THE ORGANIZATION IS A NONPROFIT CORPORATION AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE CODE) AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. IT IS ALSO EXEMPT FROM STATE INCOME TAXES PURSUANT TO SIMILAR PROVISIONS IN THE MINNESOTA STATUTES. THE ORGANIZATION FOLLOWS THE GUIDANCE IN THE ACCOUNTING STANDARDS REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE APPLICATION OF THIS STANDARD HAS NO EFFECT ON THE FINANCIAL STATEMENTS. THE ORGANIZATION'S INCOME TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL, STATE, AND LOCAL AUTHORITIES. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 34,447. INVESTMENT LOSS 217,978. LOSS ON SALE OF EQUIPMENT 3,086. PART XI, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR UNCOLLECTIBLE ACCOUNTS 3,382,172. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES 34,447. PART XII, LINE 4B - OTHER ADJUSTMENTS: PROVISION FOR UNCOLLECTIBLE ACCOUNTS 3,382,172. X X X X X 0 0 0 0 0 0 0 0 0 EDWARD R EROE FACHE CAE CMT PRESIDENT & CHIEF EXECUTIVE OFFICER 265187 0 26396 0 1342 0 11037 0 14575 0 318537 0 0 0 ROBERT A SANNERUD CHIEF FINANCIAL OFFICER 181141 0 18056 0 1145 0 8407 0 26159 0 234908 0 0 0 KOLBY KOLBET VP OF CLINICAL SERVICES 150282 0 14949 0 162 0 6777 0 14638 0 186808 0 0 0 CATHY RICHARDS VP OF EMPLOYEE & CUSTOMER ENGAGEMENT 146635 0 14840 0 1188 0 6972 0 27853 0 197488 0 0 0 PAUL MACHELEDT SENIOR DIRECTOR OF STRATEGIC PLANNING & ANALYTICS 142542 0 14297 0 774 0 6483 0 18711 0 182807 0 0 0 JOSHUA HOWELL VP OF OPERATIONS (THROUGH NOV 2018) 139241 0 15395 0 6572 0 6958 0 27835 0 196001 0 0 0 CHERYL PASQUARELLA DIRECTOR OF COMPLIANCE & Q.A. 122531 0 12363 0 1629 0 5610 0 13865 0 155998 0 0 0 MICHAEL SINKULE REGISTERED NURSE 140230 0 433 0 270 0 6395 0 29110 0 176438 0 0 0 A PUBLIC FINANCE AUTHORITY 273866124 2013-09-30 15420000 PURCHASE OF HELICOPTERS 0 0 0 B PUBLIC FINANCE AUTHORITY 273866124 2015-12-11 2600000 PURCHASE OF A HELICOPTER 0 0 0 A 7263987 15420000 15420000 2014 0 0 1 1 B 1113648 2600000 2600000 2015 0 0 1 1 A 0 0 0 0 0 0 1 B 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 A 1 B 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: PUBLIC FINANCE AUTHORITY DATE THE REBATE COMPUTATION WAS PERFORMED: 07/01/2018 FORM 990, PART III, LINE 2 DURING 2018, LIFE LINK III ADDED A NEW BASE OF ROTOR WING OPERATIONS IN MARSHFIELD, WISCONSIN. FORM 990, PART VI, SECTION A, LINE 1 EXECUTIVE COMMITTEE MEMBERSHIP CONSISTS SOLELY OF BOARD MEMBERS. THE EXECUTIVE COMMITTEE HAS THE AUTHORITY OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE BUSINESS IN THE INTERVALS BETWEEN BOARD OF DIRECTORS MEETINGS, PROVIDED, HOWEVER, THE EXECUTIVE COMMITTEE DOES NOT HAVE AUTHORITY TO ACT ON ANY MATTER REQUIRING A SUPERMAJORITY VOTE OR OTHER MATTERS SPECIFIED IN THE BYLAWS. FINANCE COMMITTEE MEMBERSHIP CONSISTS PRIMARILY OF NON-BOARD MEMBERS APPOINTED BY THE RESPECTIVE LIFE LINK III MEMBER ORGANIZATIONS. THE FINANCE COMMITTEE ACTS AS THE AUDIT COMMITTEE AND ASSISTS AND ADVISES THE BOARD OF DIRECTORS ON CAPITAL STRUCTURE, FINANCING, INVESTMENT STRATEGIES AND FINANCIAL POLICIES. FORM 990, PART VI, SECTION A, LINE 4 THE BYLAWS WERE AMENDED IN JANUARY 2018 TO ADD MARSHFIELD CLINIC HEALTH SYSTEM AS A MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 6 THERE IS ONLY ONE CLASS OF MEMBER - NON-PROFIT HEALTHCARE ORGANIZATIONS. LIFE LINK III OPERATES AS A CONSORTIUM WITH TEN MEMBERS INCLUDING: ALLINA HEALTH; CHILDRENS HEALTH CARE; HENNEPIN HEALTHCARE SYSTEM INC.; REGIONS HOSPITAL; FAIRVIEW HEALTH SERVICES; CENTRACARE HEALTH SYSTEM; SACRED HEART HOSPITAL OF THE HOSPITAL SISTERS OF THE THIRD ORDER OF ST. FRANCIS; ST. LUKES HOSPITAL OF DULUTH, INC.; ESSENTIA HEALTH; AND MARSHFIELD CLINIC HEALTH SYSTEM. FORM 990, PART VI, SECTION A, LINE 7A ALL MEMBERS ARE ENTITLED TO APPOINT ONE PERSON TO THE BOARD OF DIRECTORS AND UPON DISSOLUTION OF THE ORGANIZATION, SHARE EQUALLY IN ANY SURPLUS OF PROPERTY. FORM 990, PART VI, SECTION B, LINE 11B THE RETURN WAS REVIEWED IN DETAIL BY THE CHIEF FINANCIAL OFFICER (CFO). THE CFO PROVIDED AND REVIEWED A DRAFT OF THE FORM WITH THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS FOR THEIR REVIEW AND APPROVAL. THE BOARD OF DIRECTORS THEN RECEIVED A FINAL DRAFT AND APPROVED PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C DIRECTORS, OFFICERS AND KEY EMPLOYEES ARE REQUIRED TO ANNUALLY COMPLETE AND SIGN THE CONFLICT OF INTEREST STATEMENT. THE SIGNED STATEMENTS REMAIN ON FILE WITH THE ORGANIZATION'S CEO FOR THE CALENDAR YEAR. CONFLICTS ARE REVIEWED AND DETERMINED BY THE CEO IN CONJUNCTION WITH THE EXECUTIVE COMMITTEE. PERSONS WITH A CONFLICT ARE REQUIRED TO DISCLOSE AND REFRAIN FROM VOTING ON MATTERS WHERE THEY HAVE A CONFLICT. ACTUAL CONFLICTS ARE NOTED IN MEETING MINUTES. FORM 990, PART VI, SECTION B, LINE 15A AN INDEPENDENT NATIONAL COMPENSATION CONSULTING FIRM WAS ENGAGED TO ASSESS EVERY POSITION IN THE COMPANY INCLUDING THAT OF THE CEO. DATA PROVIDED BY THAT INDEPENDENT CONSULTANT AND CONSIDERATION OF THE NEEDS OF THE ORGANIZATION CONSISTENT WITH THE DIRECTION OF THE BOARD WERE ALL USED TO ARRIVE AT THE COMPENSATION FOR THE CEO. THE PROCESS OF REVIEWING THE CEO'S COMPENSATION INCLUDES REVIEW AND APPROVAL BY INDEPENDENT PERSONS, MARKET COMPENSATION DATA FOR COMPARABLE COMPANIES AND CONTEMPORANEOUS SUBSTANTIATION. A COMPENSATION COMMITTEE WAS FORMED IN LATE 2017 BY THE BOARD FOR THE PURPOSE OF DETERMINING COMPENSATION AND PERFORMANCE OF THE CEO. AN INDEPENDENT NATIONAL COMPENSATION CONSULTING FIRM WAS ENGAGED TO ASSESS EVERY POSITION IN THE COMPANY. LIFE LINK III HAS ENGAGED AN INDEPENDENT CONSULTANT TO REVIEW MARKET COMPENSATION DATA FOR COMPARABLE COMPANIES AND CONTEMPORANEOUS SUBSTANTIATION, AS WELL AS MAKE INFORMED RECOMMENDATIONS ON COMPENSATION LEVELS OF KEY ROLES. THE COMPENSATION REVIEW PROCESS LAST OCCURRED IN 2018. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE IN THE CARE OF THE ORGANIZATION'S CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER AND ARE AVAILABLE FOR INSPECTION UPON REQUEST AT THE ORGANIZATION'S OFFICE DURING NORMAL BUSINESS HOURS. FORM 990, PART XI, LINE 9: NET ASSET CONTRIBUTION FROM NEW MEMBER 3,542,111.