2017-11-07T11:15:23-06:00 2016-12-31 271728945 PKF O'CONNOR DAVIES LLP 32 FOSTERTOWN RD NEWBURGH NY 12550 990 2016-01-01 133911773 HEALTHSTAR NETWORK INC HEAL 9142735454 135 BEDFORD ROAD ARMONK NY 10504 SHARON M LUCIAN PRESIDENT/CEO 9142735454 2017-11-07 1 GARRETT M HIGGINS P00543209 8455655400 2017-11-03 65.51.112.58 2017-11-07 12:13:13 ES P C63E204139530C7A73D948D9DBE25A8631A7AD1B 45D10729E84C80409783239EA0C370A8A08632B7 2016 2018-03-14 21:41:22Z STELLARIS HEALTH NETWORK SHARON M LUCIAN 135 BEDFORD ROAD ARMONK NY 10504 19045950 0 X WWW.STELLARISHEALTH.ORG X 1996 NY HEALTHSTAR NETWORK INC.'S PRIMARY PURPOSE IS TO SUPPORT THE COMMUNITY BY PROVIDING MANAGEMENT AND SUPPORT SERVICES TO ITS AFFILIATED HOSPITAL ORGANIZATIONS. X 9 6 8 8 0 0 0 0 24918851 19005032 25220 34402 18037 6516 24962108 19045950 0 0 0 0 1961741 2059760 0 0 0 20715822 20026274 22677563 22086034 2284545 -3040084 67731750 21511338 6552239 3511217 61179511 18000121 X HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK'S PRIMARY EXEMPT PURPOSE IS TO SUPPORT THE COMMUNITY BY PROVIDING MANAGEMENT AND SUPPORT SERVICES TO ITS AFFILIATED HOSPITAL ORGANIZATIONS: NORTHERN WESTCHESTER HOSPITAL ASSOCIATION, LAWRENCE HOSPITAL CENTER, WHITE PLAINS HOSPITAL MEDICAL CENTER AND PHELPS MEMORIAL HOSPITAL ASSOCIATION. 0 0 21566081 19005032 SEE SCHEDULE O IN AUGUST OF 1996 HEALTH STAR NETWORK, INC. D/B/A STELLARIS HEALTH NETWORK WAS FORMED BY WHITE PLAINS HOSPITAL CENTER (WHITE PLAINS, NY) AND NORTHERN WESTCHESTER HOSPITAL ASSOCIATION, (MT. KISCO, NY). IN RECOGNITION OF DRAMATIC CHANGES OCCURRING IN THE REGIONAL HEALTH CARE MARKETPLACE, HEALTHSTAR WAS CREATED TO PARTNER LIKE-MINDED HEALTHCARE ENTITIES. THESE ORGANIZATIONS RECOGNIZED THE VALUE OF COLLABORATION, SYNERGY, AND LEVERAGE, AND DETERMINED TO FORM AN ALLIANCE TO IMPROVE HEALTH QUALITY AND PERFORMANCE, AND REDUCE COSTS. STELLARIS HEALTH NETWORK THE REGION'S FIRST COMMUNITY HOSPITAL NETWORK, EVOLVED OUT OF THE MEMBER ORGANIZATION'S SHARED VISION TO MAINTAIN LOCAL DECISION MAKING AND DELIVERY OF HIGH QUALITY HEALTH CARE SERVICES. IN MARCH, 1997 LAWRENCE HOSPITAL CENTER (BRONXVILLE, NY) JOINED THE NETWORK AND IN OCTOBER 1997 PHELPS MEMORIAL HOSPITAL ASSOC. (SLEEPY HOLLOW, NY) FOLLOWED SUIT. IN 2000, THE NETWORK SPONSORED THE FORMATION OF AN EMERGENCY MEDICAL SERVICES (EMS), WHICH PROVIDES MUNICIPAL PARAMEDIC SERVICES TO NEARLY ONE THIRD OF WESTCHESTER COUNTY, NY. IN ADDITION, STARNET EMERGENCY SERVICES (TRADE NAME-WESTCHESTER EMS) ALSO PROVIDES AMBULANCE AND RELATED SERVICES FOR THE NETWORK INDIVIDUAL CLIENTS AND OTHER NON-AFFILIATED INSTITUTIONS.IN 2001, HEALTHSTAR NETWORK, INC. BEGAN OPERATING UNDER THE TRADE NAME OF STELLARIS HEALTH NETWORK. STELLARIS REPRESENTS THE STELLAR LEVEL OF CARE AND SERVICES WE STRIVE TO DELIVER, AND POETICALLY REFER TO THE GROWING CONSTELLATION OF AFFILIATES IN OUR NETWORK. BASED IN ARMONK, NY, STELLARIS HEALTH NETWORK IS MANAGED BY SHARON M. LUCIAN, PRESIDENT AND CEO. TOGETHER THE ORGANIZATION SET AN AGENDA FOR WORKING TOGETHER TO ACCOMPLISH GOALS THAT ALONE WOULD BE MORE DIFFICULT (OR IMPOSSIBLE) TO ACHIEVE. AMONG THE MOST IMPORTANT INITIATIVES, THE ORGANIZATION ENVISIONED THE DESIGN AND INSTALLATION OF A HIGH QUALITY INFORMATION TECHNOLOGY INFRASTRUCTURE. OTHER CORE OBJECTIVES INCLUDED REDUCTION OF EXPENSES THROUGH SUPPLY CHAIN CENTRALIZATION INITIATIVES, SHARING OF BEST PRACTICES TO IMPROVE THE QUALITY OF SERVICES AND CLINICAL CARE OFFERED TO OUR PATIENTS. STRATEGIC GOALS FOR STELLARIS INCLUDE COST REDUCTION INITIATIVES SUCH AS SUPPLY CHAIN MANAGEMENT OF CONSOLIDATED BUSINESS FUNCTIONS SUCH AS JOINT INSURANCE PROCUREMENT PROGRAMS, HIPAA COMPLIANCE, THE IMPLEMENTATION OF A STATE OF THE ART INFORMATION SYSTEM AND CLINICAL INITIATIVES SUCH AS THE SPONSORSHIP OF AN EMERGENCY MEDICAL SERVICE (EMS). 21566081 1 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 1 0 0 1 X 12 0 8 1 0 1 BD 0 0 0 0 0 0 0 0 X 9 6 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 0 NY X X SCOTT M MAY DIRECTOR OF FINANCE 9142735454 135 BEDFORD ROAD ARMONK NY 10504 X SHARON LUCIAN PRESIDENT/CEO 37.50 2.00 X X 591681 0 49567 RICHARD SINNI SECRETARY THRU 2/29/16; CHAIR AS OF 2/29/16 1.00 2.00 X X 0 0 0 LAURENCE SMITH SECRETARY AS OF 2/29/16 1.00 X X 0 0 0 ROBERT A SPOLZINO CHAIR THRU 2/29/16; BOARD MEMBER THRU 12/31/16 1.00 X X 0 0 0 MICHAEL FOSINA BOARD MEMBER 1.00 X 0 0 0 LAURA FORESE BOARD MEMBER 1.00 X 0 0 0 JON SCHANDLER BOARD MEMBER 1.00 37.50 X 0 595833 0 JOEL SELIGMAN BOARD MEMBER 1.00 37.50 X 0 0 0 DANIEL BLUM BOARD MEMBER 1.00 37.50 X 0 0 0 NICOLE B BROOM DIRECTOR OF ICD-10 37.50 X 191471 0 43974 SCOTT M MAY DIRECTOR OF FINANCE 37.50 X 198311 0 46150 RICHARD WISNIEWSKI DIRECTOR OF SUPPLY CHAIN 37.50 X 177727 0 40522 MATTHEW SHAFIROFF VP CLINICAL INFORMATICS 37.50 X 380325 0 55077 JANET PAWLOWSKI HR ADMINISTRATOR 37.50 X 167913 0 25514 EDWARD DINAN FORMER BOARD MEMBER 0.00 0.00 X 0 1598851 12471 1707428 2194684 273275 6 1 1 0 DELL PO BOX 677654 DALLAS TX 752676021 IT SUPPORT 13042491 MEDITECH PO BOX 74569 CHICAGO IL 60696 IT SUPPORT 1467918 NTT DATA PO BOX 677654 DALLAS TX 752676021 IT SUPPORT 1176525 MEDASSETS PO BOX 405652 ATLANTA GA 303845652 IT SUPPORT/CONSULTING 462000 CHANGE HEALTHCARE SOLUTIONS 3055 LEBANAON PIKE SUITE 1000 NASHVILLE TN 37214 IT SUPPORT 365074 11 ADMINISTRATIVE SERVICES 561000 19005032 19005032 19005032 34402 34402 VENDOR REBATES 900099 6516 6516 6516 19045950 19005032 0 40918 641248 582033 59215 1115712 1012683 103029 78791 71883 6908 135324 122484 12840 88685 80837 7848 27632 25193 2439 50729 45656 5073 5913 5786 127 6500 5850 650 315253 305784 9469 16567588 16547983 19605 211859 190673 21186 7235 6663 572 8730 7822 908 10723 9651 1072 2580917 2329114 251803 109200 91991 17209 REPAIRS AND MAINTENANCE 123995 123995 22086034 21566081 519953 0 17511332 7100706 1678159 9500676 2730940 1212530 307123 517645 1007209 647259 40420941 37968968 4466852 2451973 39961408 0 68727 80549 67731750 21511338 4075164 3511217 2477075 0 6552239 3511217 X 61179511 18000121 61179511 18000121 67731750 21511338 X -3040084 -40139306 X X 0 1 X 1 0 X X 4 WHITE PLAINS HOSPITAL MEDICAL CENTER 131740130 3 1 4748628 0 NYPLAWRENCE HOSPITAL 131740110 3 1 4819739 0 NORTHERN WESTCHESTER HOSPITAL 131740118 3 1 4717062 0 PHELPS MEMORIAL HOSPITAL ASSOC 131725076 3 1 4719603 0 4 19005032 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 SCHEDULE A, SECTION D, LINE 2: THE BOARD OF DIRECTORS SHALL INCLUDE THE PRESIDENT/CEO OF THE ORGANIZATION, THE CEO OF EACH HOSPITAL (SUPPORTED ORGANIZATIONS) OR THE DESIGNEE OF EACH CEO AND THE CHAIRPERSON OF THE BOARD OF EACH HOSPITAL OR THE DESIGNEE OF EACH CHAIRPERSON OF EACH HOSPITAL. A HOSPITAL'S DESIGNEE REPRESENTATIVE TO THE BOARD SHALL BE A MEMBER OF SUCH HOSPITAL'S BOARD AND SHALL NOT BE AN EMPLOYEE OF THE HOSPITALS. PER THE BYLAWS OF THE ORGANIZATION, THE CHIEF EXECUTIVE OFFICERS ("CEOS") OF THE SUPPORTED ORGANIZATIONS LISTED IN PART I, LINE 11G, SHALL MAINTAIN AN ACTIVE ROLE IN THE AFFAIRS OF THE CORPORATION AND THE PRESIDENT/CEO OF THE ORGANIZATION SHALL SEEK THE ADVICE AND COUNSEL OF THE CEOS OF LAWRENCE HOSPITAL CENTER, NORTHERN WESTCHESTER HOSPITAL ASSOCIATION, PHELPS MEMORIAL HOSPITAL ASSOCIATION, AND WHITE PLAINS HOSPITAL MEDICAL CENTER (EACH INDIVIDUALLY, A "HOSPITAL AND COLLECTIVELY, THE "HOSPITALS") IN ORDER TO ASSESS THE DEGREE TO WHICH THE CORPORATION IS MEETING THE NEEDS OF THE HOSPITALS. THE CEOS OF THE HOSPITALS SHALL MAKE RECOMMENDATIONS TO THE PRESIDENT/CEO OF THE ORGANIZATION AND TO THE BOARD OF DIRECTORS AS TO HOW THESE NEEDS CAN BEST BE MET. PART I, LINE 11, COLUMN (VI): HEALTHSTAR NETWORK INC. PROVIDES THE FOLLOWING SERVICES TO EACH OF ITS SUPPORTED ORGANIZATIONS: 1. SUPPLY CHAIN RELATIONSHIP MANAGEMENT, OVERSIGHT AND REPORTING UNDER THE GPO AGREEMENTS AND DIRECT AGREEMENTS FOR GOODS AND SERVICES. 2. INSURANCE FUNCTION MANAGEMENT, OVERSIGHT AND CONSULTING; MONITOR AND COORDINATE BENEFITS AND SUBROGATION OF CLAIMS; RISK MANAGEMENT FUNCTION, ACCIDENT PREVENTION AND LOSS CONTROL PROGRAMS; AND PROVIDE ACCESS TO AND COORDINATE THE MEDICAL MALPRACTICE INSURANCE PROGRAM AND THE NWLP CAPTIVE INSURANCE PROGRAM. 3. CLINICAL INFORMATICS AND ANALYSIS AND INFORMATION TECHNOLOGY MANAGEMENT, INCLUDING PHSICIAN ORDER SETS AND MEANINGFUL USE ACHIEVEMENT AND DEMONSTRATION. 4. WESTCHESTER EMERGENCY MEDICAL SERVICES, INCLUDING AMBULANCE TRANSPORTS, EMERGENCY PREPAREDNESS, FLY CAR SYSTEM, CALL CENTER AND EMERGENCY MEDICAL TECHNICIAN LEASING. 6. ACCESS TO INFORMATION TECHNOLOGY UNDER EXISTING CAPITAL LEASE ARRANGEMENT. 7. ACCESS TO INFORMATION TECHNOLOGY SUPPORT AND RELATED SERVICES FROM IT SERVICE PROVIDERS CURRENTLY CONTRACTING WITH SERVICE PROVIDER. SCHEDULE A, SECTION D, LINE 3: THE CEO AND CHAIRPERSON OF EACH SUPPORTED ORGANIZATION SERVES ON THE BOARD OF HEALTHSTAR NETWORK INC. AS BOARD MEMBERS OF THE ORGANIZATION THEY HAVE THE POWER TO CREATE THE ORGANIZATION'S INVESTMENT POLICIES AS WELL AS DIRECT THE USE OF THE ORGANIZATION'S INCOME AND ASSETS AT ANY POINT DURING THE YEAR. SCHEDULE A, SECTION E, LINE 2A: THE SUPPORTED ORGANIZATIONS MISSIONS IS TO PROVIDE QUALITY, PATIENT CENTERED CARE THROUGH A UNIQUE COMBINATION OF MEDICAL EXPERTISE, LEADING-EDGE TECHNOLOGY, AND A COMMITMENT TO HUMANITY. HEALTHSTAR NETWORK INC. WORKS TO HELP THE SUPPORTED ORGANIZATIONS ACHIEVE THEIR MISSIONS BY PROVIDING NETWORK LEVEL SERVICES SUCH AS INFORMATION TECHNOLOGY SERVICES, JOINT INSURANCE PROGRAMS, SUPPLY CHAIN SERVICES, AND AMBULANCE SERVICES TO THE SUPPORTED ORGANIZATIONS. SCHEDULE A, SECTION E, LINE 3: THE ORGANIZATION'S ACTIVITIES WOULD HAVE BEEN PERFORMED BY THE SUPPORTED ORGANIZATIONS HAD THE ORGANIZATION NOT HAD PERFORMED THEM. THE SUPPORTED ORGANIZATIONS NEED ALL OF THE SERVICES PROVIDED BY THE ORGANIZATION IN ORDER TO OPERATE THE HOSPITAL AND TO PROVIDE OPTIMAL SERVICE TO THEIR PATIENTS. 562129 538984 23145 39858812 37429984 2428828 2451973 X 26564608 7536758 7536758 19027850 18100 18100 19045950 29087186 7019252 7019252 22067934 18100 18100 22086034 PART X, LINE 2: STELLARIS RECOGNIZES THE EFFECTS OF INCOME TAX POSITIONS ONLY IF THEY ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT STELLARIS HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION AND/OR DISCLOSURE. STELLARIS IS NO LONGER SUBJECT TO EXAMINATION BY APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO DECEMBER 31, 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE ATTRIBUTABLE TO CONSOLIDATED SUBSIDIARIES 7,536,758. PART XI, LINE 4B - OTHER ADJUSTMENTS: ELIMINATIONS ON CONSOLIDATED FINANCIAL STATEMENTS 18,100. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES ATTRIBUTABLE TO CONSOLIDATED SUBSIDIARIES 7,019,252. PART XII, LINE 4B - OTHER ADJUSTMENTS: ELIMINATIONS ON CONSOLIDATED FINANCIAL STATEMENTS 18,100. CENTRAL AMERICA AND THE CARIBBEAN PROGRAM-RELATED INVESTMENT 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 SCHEDULE F, PART IV, LINE 3: HEALTHSTAR NETWORK, INC. IS REQUIRED TO FILE FORM 5471 BECAUSE IT MEETS THE APPLICABLE FILING REQUIREMENT. X X X X 1 1 0 0 0 0 0 1 0 SHARON LUCIAN PRESIDENT/CEO 395389 0 192938 0 3354 0 22369 0 27198 0 641248 0 0 0 JON SCHANDLER BOARD MEMBER 0 595833 0 0 0 0 0 0 0 0 0 595833 0 0 NICOLE B BROOM DIRECTOR OF ICD-10 138163 0 53000 0 308 0 11841 0 32133 0 235445 0 0 0 SCOTT M MAY DIRECTOR OF FINANCE 164284 0 33220 0 807 0 13983 0 32167 0 244461 0 0 0 RICHARD WISNIEWSKI DIRECTOR OF SUPPLY CHAIN 144718 0 29180 0 3829 0 12102 0 28420 0 218249 0 0 0 MATTHEW SHAFIROFF VP CLINICAL INFORMATICS 337939 0 41620 0 766 0 22369 0 32708 0 435402 0 0 0 JANET PAWLOWSKI HR ADMINISTRATOR 138956 0 27740 0 1217 0 11427 0 14087 0 193427 0 0 0 EDWARD DINAN FORMER BOARD MEMBER 0 250203 0 850000 0 498648 0 1661 0 10810 0 1611322 0 0 PART I, LINES 4A-B EDWARD DINAN, IS A FORMER BOARD MEMBER OF STELLARIS, AND FORMER CEO OF LAWRENCE HOSPITAL, AND IN 2016 HE RECEIVED A SEVERANCE PAYMENT OF $498,648 FROM THE HOSPITAL IN HIS W-2. PART I, LINE 7 BONUS COMPENSATION WAS PAID BY HEALTHSTAR NETWORK INC. TO THE OFFICERS AND SENIOR STAFF LISTED ON PART II, COLUMN (B)(I) IN 2016. SUCH COMPENSATION WAS AWARDED TO THOSE INDIVIDUALS BASED ON THE INDIVIDUAL'S RESPECTIVE JOB PERFORMANCE AND ACCOMPLISHMENTS ACHIEVED AS DETERMINED BY EITHER THE MANAGEMENT COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS IN THE CASE OF THE OFFICERS OR BY THE EXECUTIVE LEADERSHIP IN THE CASE OF SENIOR STAFF. SCHEDULE J, PART II: THE OFFICERS LISTED ON PART VII AND SCHEDULE J OF THE STELLARIS FORM 990 EXCEPT FOR SHARON LUCIAN, DO NOT RECEIVE COMPENSATION AS OFFICERS OF STELLARIS, BUT AS OFFICERS OF THEIR RELATED HOSPITAL ORGANIZATIONS. THIS COMPENSATION IS PAID SOLELY BY RELATED ORGANIZATIONS. LIQUIDATION DISTRIBUTION OF CAPITAL FROM INVESTMENT IN NWLP INSURANCE COMPANY LTD. 2016-12-31 23845343 LIQUIDATION AGREEMENT 131740130 WHITE PLAINS HOSPITAL MEDICAL CENTER 41 EAST POST ROAD WHITE PLAINS NY 10601 501(C)3 LIQUIDATION DISTRIBUTION OF CAPITAL FROM INVESTMENT IN NWLP INSURANCE COMPANY LTD. 2016-12-31 13910786 LIQUIDATION AGREEMENT 131740110 NYPLAWRENCE HOSPITAL 55 PALMER AVENUE BRONXVILLE NY 10708 501(C)3 LIQUIDATION DISTRIBUTION OF CAPITAL FROM INVESTMENT IN NWLP INSURANCE COMPANY LTD. 2016-12-31 2106343 LIQUIDATION AGREEMENT 131725076 PHELPS MEMORIAL HOSPITAL CENTER 701 NORTH BROADWAY SLEEPY HOLLOW NY 10591 501(C)3 LIQUIDATION DISTRIBUTION OF CAPITAL FROM INVESTMENT IN NWLP INSURANCE COMPANY LTD. 2016-12-31 210389 LIQUIDATION AGREEMENT 131740118 NORTHERN WESTCHESTER HOSPITAL 400 EAST MAIN STREET MOUNT KISCO NY 10549 501(C)3 1 1 0 0 PART II, LINE 2E: EXPLANATION OF INVOLVEMENT: THE FOLLOWING INDIVIDUALS ARE EMPLOYEES AND DIRECTORS OF THE TRANSFEREE ORGANIZATIONS AS FOLLOWS:JON SCHANDLER - SPECIAL CONSULTANT/DIRECTOR AT WHITE PLAINS HOSPITAL CENTERJOEL SELIGMAN - CEO/DIRECTOR AT NORTHERN WESTCHESTER HOSPITALDANIEL BLUM - CEO/DIRECTOR AT PHELPS MEMORIAL HOSPITAL CENTERMICHAEL FOSINA - PRESIDENT/DIRECTOR AT NYP/LAWRENCE HOSPITALTHE FOLLOWING INDIVIDUALS ARE DIRECTORS OF THE TRANSFEREE ORGANIZATIONS AS FOLLOWS:LAURENCE SMITH - WHITE PLAINS HOSPITAL CENTERHON. ROBERT SPOLZINO - NORTHERN WESTCHESTER HOSPITALRICHARD SINNI - PHELPS MEMORIAL HOSPITAL CENTERLAURA FORESE - NYP/LAWRENCE HOSPITAL FORM 990, PART V, LINE 4B: THE BANK ACCOUNTS LISTED ON PART V, LINE 4(B) ARE RELATED TO THE BUSINESS ACTIVITIES OF THE 100% OWNED SUBSIDIARY, NWLP INSURANCE COMPANY, LTD. THE SUBSIDIARY WAS DISSOLVED IN 2016. FORM 990, PART VI, SECTION A, LINE 2 JOEL SELIGMAN, JON SCHANDLER, DANIEL BLUM, MICHAEL FOSINA AND SHARON LUCIAN ARE ALSO DIRECTORS OF NWLP INSURANCE COMPANY AND, THEREFORE, HAVE A BUSINESS RELATIONSHIP AS DESCRIBED BY THE IRS FOR FORM 990 REPORTING PURPOSES. NWLP WAS DISSOLVED DURING 2016. FORM 990, PART VI, SECTION B, LINE 11B HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK'S FORM 990 FOR THE YEAR ENDING DECEMBER 31, 2016 WAS REVIEWED IN DETAIL BY THE ORGANIZATION'S PRESIDENT/CEO. THE BOARD WAS PROVIDED A PAPER DRAFT OF THE FORM 990 PRIOR TO FILING TO REVIEW AND PROVIDE COMMENTS TO THE ORGANIZATION'S TAX PREPARER PKF O'CONNOR DAVIES LLP AT A BOARD MEETING, WHERE THE FORM 990 WAS PRESENTED. FORM 990, PART VI, SECTION B, LINE 12C HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK'S CONFLICT OF INTEREST POLICY IS DISTRIBUTED TO OFFICERS, DIRECTORS, SENIOR MANAGERS, OTHER EMPLOYEES AND VOLUNTEERS. ANNUALLY, A QUESTIONNAIRE IS COMPLETED BY ALL OFFICERS AND DIRECTORS IN WHICH THEY ARE ASKED SPECIFIC QUESTIONS AND DISCLOSE INFORMATION REGARDING ACTUAL OR POTENTIAL CONFLICTS BETWEEN STELLARIS AND THEMSELVES OR CERTAIN RELATED PARTIES (AS DEFINED IN THE INSTRUCTIONS TO THE FORM 990). THESE QUESTIONNAIRES ARE COLLECTED AND REVIEWED ANNUALLY TO ENSURE COMPLIANCE WITH STELLARIS' CONFLICT OF INTEREST POLICY. IF A CONFLICT OF INTEREST IS IDENTIFIED, THE INDIVIDUAL WILL BE RECUSED FROM VOTING ON THE SUBJECT MATTER. FORM 990, PART VI, SECTION B, LINE 15A HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK ENGAGES AN EXECUTIVE COMPENSATION CONSULTANT TO DETERMINE THE COMPENSATION OF ITS PRESIDENT/CEO. THE CONSULTANT'S ANALYSIS INCLUDES DATA OF COMPENSATION PAID BY COMPARABLE ORGANIZATIONS AND TO OFFICERS SIMILARLY SITUATED (WITH SAME FUNCTIONS/JOBS RESPONSIBILITIES). COMPENSATION IS THEN REVIEWED, APPROVED AND DOCUMENTED BY A SEPARATE COMPENSATION COMMITTEE. DETERMINATION WAS DOCUMENTED IN A LETTER STATING THE SET COMPENSATION. OTHER THAN THIS INDIVIDUAL, HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK DOES NOT HAVE ANY KEY EMPLOYEES AS DEFINED BY THE INTERNAL REVENUE SERVICES. FORM 990, PART VI, SECTION C, LINE 19 HEALTHSTAR NETWORK INC. D/B/A STELLARIS HEALTH NETWORK'S FINANCIAL STATEMENTS, GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE TO THE PUBLIC UPON REQUEST, AND AT THE DISCRETION OF MANAGEMENT. FORM 990, PART VII, SECTION A, COLUMN (B): STELLARIS IS REPORTING THAT TWO BOARD MEMBERS, JOEL SELIGMAN AND DANIEL BLUM, WORK FOR RELATED ENTITIES LISTED IN SCHEDULE R, AN AVERAGE OF 37.5 HOURS A WEEK. NO COMPENSATION IS REQUIRED TO BE REPORTED IN PART VII AS THE COMPENSATION PAID TO THEM FOR THEIR SERVICES TO THE RELATED ORGANIZATIONS IS PAID BY AN UNRELATED ORGANIZATION TO STELLARIS. THEY DID NOT RECEIVE COMPENSATION FROM THESE UNRELATED ORGANIZATIONS IN THEIR CAPACITY AS A BOARD MEMBER OF STELLARIS. FORM 990, PART XI, LINE 9: DISTRIBUTION OF CAPITAL -40,139,306. STARNET EMERGENCY SERVICES 135 BEDFORD ROAD ARMONK NY 10504 134091675 EMERGENCY SERVICES NY 501(C)3 LINE 10 HEALTHSTAR NETWORK INC 1 WHITE PLAINS HOSPITAL MEDICAL CENTER 41 EAST POST ROAD WHITE PLAINS NY 10601 131740130 HOSPITAL NY 501(C)3 LINE 3 N/A 0 LAWRENCE HOSPITAL CENTER 55 PALMER AVE BRONXVILLE NY 10708 131740110 HOSPITAL NY 501(C)3 LINE 3 N/A 0 NORTHERN WESTCHESTER HOSPITAL ASSOC 400 EAST MAIN STREET MOUNT KISCO NY 10549 131740118 HOSPITAL NY 501(C)3 LINE 3 N/A 0 PHELPS MEMORIAL HOSPITAL ASSOC 701 NORTH BROADWAY SLEEPY HOLLOW NY 10591 131725076 HOSPITAL NY 501(C)3 LINE 3 N/A 0 NWLP INSURANCE COMPANY VICTORIA HALL 11 VICTORIA STREET BD INVESTMENT BD HEALTHSTAR NETWORK INC C 1.00000 1 1 0 0 1 0 0 0 0 0 0 0 1 0 1 1 0 1 1 0 STARNET EMERGENCY SERVICES INC A 18100 COST SCHEDULE R, PART V, LINE 1A: HEALTHSTAR NETWORK, INC. RECEIVED INTEREST INCOME FROM ITS CONTROLLED SUBSIDIARY. THESE INTEREST PAYMENTS WERE MADE AT ARM'S LENGTH AND MEETS THE FAIR MARKET VALUE STANDARD.