2017-11-10T09:12:41-06:00 2016-12-31 ERNST & YOUNG US LLP 5 TIMES SQUARE NEW YORK NY 100366530 990 2016-01-01 133783732 Healthfirst PHSP Inc % CRAIG BARATTIN-VP/CONTROLLER HEAL 2128016000 100 CHURCH ST FL 18 NEW YORK NY 100072601 JOHN BERMEL CFO 2128016000 2017-11-08 LAURA KIELCZEWSKI P00740769 2127733000 2017-11-07 12.41.123.251 13966620173145000000 2017-11-10 P 48376AC60715834143EC7E8D06BB46C111BC8BCB 48376AC60715834143EC7E8D06BB46C111BC8BCB 2016 2017-02-10 21:41:12Z PATRICIA J WANG 100 CHURCH ST FL 18 NEW YORK NY 100072601 6011909761 false X WWW.HEALTHFIRSTNY.ORG X 1994 NY IMPROVE THE HEALTH & WELL-BEING OF UNDER- served populations by providing gov't purchased prepaid healthcare coverage to individuals covered under medicaid and other health progs. 4 3 0 0 0 0 0 0 5129661897 6005346578 3491679 6563183 0 0 5133153576 6011909761 0 0 0 0 0 0 0 0 0 5103578899 6044053170 5103578899 6044053170 29574677 -32143409 1392900428 1591670184 994939758 1118193981 397960670 473476203 X TO IMPROVE THE HEALTH AND WELL-BEING OF UNDERSERVED POPULATIONS BY PROVIDING COMPREHENSIVE PREPAID HEALTHCARE COVERAGE TO MEDICAID, ESSENTIAL PLAN, HARP, CHILD HEALTH PLUS AND QUALIFIED HEALTH PLAN RECIPIENTS. true false 4833103530 4891350355 MEDICAID MANAGED CARE: HEALTHFIRST PHSP, INC. (PHSP) IS A LICENSED PREPAID HEALTH SERVICES PLAN THAT PROVIDES COMPREHENSIVE PREPAID HEALTH CARE COVERAGE TO BENEFICIARIES OF GOVERNMENT HEALTH CARE COVERAGE PROGRAMS. PHSP HAS PARTICIPATED IN NEW YORK'S MEDICAID PROGRAM SINCE OCTOBER 1994. FOR 2016 THERE WERE 904,859 MEMBERS ENROLLED IN PHSP'S MEDICAID PLAN. PHSP'S NETWORK INCLUDES 71 REGIONAL HOSPITALS THAT PROVIDE SERVICES TO MEMBERS. 514060257 534199642 ESSENTIAL PLAN (EP): HEALTHFIRST PHSP, INC. (PHSP) IS A LICENSED PREPAID HEALTH SERVICES PLAN THAT PROVIDES COMPREHENSIVE PREPAID HEALTH CARE COVERAGE TO BENEFICIARIES OF GOVERNMENT HEALTH CARE COVERAGE PROGRAMS. EP IS A NEW PROGRAM IN 2016 WHICH COVERS INDIVIDUALS WHO WOULD OTHERWISE BE ELIGIBLE FOR EITHER CERTAIN CATEGORIES OF EXPANDED MEDICAID COVERAGE OR SIGNIFICANT SUBSIDIES FOR QUALIFIED HEALTH PLAN (QHP) FOR LITTLE OR NO MEMBER CONTRIBUTION. FOR 2016 THERE WERE 117,546 MEMBERS ENROLLED IN PHSP'S EP PLAN. PHSP'S NETWORK INCLUDES 59 REGIONAL HOSPITALS THAT PROVIDE SERVICES TO MEMBERS. 416935587 434660052 HEALTH AND RECOVERY PLAN (HARP): HEALTHFIRST PHSP, INC. (PHSP) IS A LICENSED PREPAID HEALTH SERVICES PLAN THAT PROVIDES COMPREHENSIVE PREPAID HEALTH CARE COVERAGE TO MEDICAID ELIGIBLE INDIVIDUALS THAT HAVE SERIOUS BEHAVIORAL HEALTH DIAGNOSES. THE HARP PROGRAM WAS INTRODUCED IN 2015 AND IS A MANAGED CARE PROGRAM WITHIN MEDICAID. FOR 2016 THERE WERE 17,159 MEMBERS ENROLLED IN PHSP'S HARP PROGRAM. PHSP'S NETWORK INCLUDES 62 REGIONAL HOSPITALS THAT PROVIDE SERVICES TO MEMBERS. 154340538 145136529 5918439912 true false false false false false false false false false false false false true true false true true false false false false false false false false false false false true false false false false false false false true false false false false false true true true true false true 10087 0 0 false false false false false false false false false false X 4 3 false true false false true true true true true false false true true true true true true false false false NY X CRAIG BARATTIN-VPCONTROLLER 2128016000 100 CHURCH ST FL 18 NEW YORK NY 100072601 JAY A SCHECHTMAN CHIEF MEDICAL OFFICER 1.0 40.0 X 0 857313 125306 ELIZABETH R ST CLAIR Chief Lgl Officer-END 9/30/16 1.0 40.0 X X 0 879977 110029 EVELYN DEL ORBE COMMUNITY REPRESENTATIVE 1.0 0.0 X 0 0 0 STEPHEN ROSENTHAL DIRECTOR 1.0 0.0 X 0 0 0 ERIC SCALETTAR DIRECTOR 1.0 0.0 X 0 0 0 PATRICIA J WANG CHIEF EXECUTIVE OFFICER 1.0 40.0 X 0 3263189 360296 DANIEL P MCCARTHY PRESIDENT & COO 1.0 40.0 X 0 1482463 198420 CRAIG BARATTIN VP CONTROLLER-END 5/11/16 1.0 40.0 X 0 379502 35322 SEAN M NATARO SECRETARY-BEG 5/11/16 1.0 40.0 X 0 386755 35322 JOHN J BERMEL CFO-BEG 2/1/16 1.0 40.0 X 0 621734 15873 PAUL E PORTSMORE JR SVP, GROWTH 1.0 40.0 X 0 646818 95926 REBECCA SCHWIETZ SVP CLINICAL SERVICES 1.0 40.0 X 0 542851 86462 GERALD T SWEENEY SVP CHIEF INFORMATION OFFICER 1.0 40.0 X 0 870836 137731 SEAN KANE CHIEF HR OFFICER 1.0 40.0 X 0 652845 103072 MELINDA A THIEL SVP STRAT INT & BUS TRAN 1.0 40.0 X 0 492183 70125 MICHAEL FEDYNA CFO-END 7/21/15 1.0 40.0 X 0 503800 23002 MARYBETH TITA SVP-CORP. FINANCE-END 3/31/15 0.0 0.0 X 0 212981 0 0 11793247 1396886 0 true true false CAREMARK LLC ONE CVS DRIVE WOONSOCKET RI 02895 PHARMACY 1333974852 NYC HEALTH AND HOSPITAL CORP 125 WORTH STREET NEW YORK NY 10013 MEDICAL/HOSPITAL 300509734 MONTEFIORE MEDICAL CENTER PO BOX 4296 CHURCH STREET STATION NEW YORK NY 10261 MEDICAL/HOSPITAL 255348253 NY PRESBYTERIAN HOSP-COLUMBIA PO BOX 6154 NEW YORK NY 10249 MEDICAL/HOSPITAL 224427756 NYS PUBLIC GOOD POOLS 344 S WARREN STREET SYRACUSE NY 13202 NYS HEALTH CARE FUND 166271808 2554 0 MEDICAID MANAGED CARE 524114 4891350355 4891350355 EP ESSENTIAL PLAN 524114 534199642 534199642 HARP 524114 434660052 434660052 CHILD HEALTH PLUS(CHP) & CHP FIDELIS 524114 78489554 78489554 QUALIFIED HEALTH PLAN 524114 52045618 52045618 14601357 14601357 6005346578 6563183 6563183 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 6011909761 6005346578 6563183 0 0 0 0 0 0 0 0 0 0 378684000 253718280 124965720 0 0 0 0 0 1652374 1337193 315181 7585949 7585949 928480 596123 332357 0 0 0 0 0 0 0 0 0 0 HEALTHCARE SERVICE COSTS 5653114197 5653114197 CLAIMS PROCESSING 2088170 2088170 6044053170 5918439912 125613258 0 0 0 403786596 567864022 0 0 434625593 448550724 0 0 0 0 0 0 0 0 0 0 0 0 482644318 469264221 0 0 0 0 0 0 71843921 105991217 1392900428 1591670184 853838972 954301820 0 0 1299558 4853905 0 0 0 0 0 0 0 0 0 0 139801228 159038256 994939758 1118193981 X 397960670 473476203 0 0 0 0 397960670 473476203 1392900428 1591670184 X -32143409 761428 106897514 X X false true X true true true X 0 0 0 0 0 0 2462763165 3305343319 4145039756 5129661897 6005346578 21048154715 0 0 0 2462763165 3305343319 4145039756 5129661897 6005346578 21048154715 0 0 0 21048154715 3392262 1916101 2819987 3491679 6563183 18183212 0 3392262 1916101 2819987 3491679 6563183 18183212 0 0 2466155427 3307259420 4147859743 5133153576 6011909761 21066337927 0.99914 0.99917 0.00086 0.00083 X OTHER CURRENT ASSETS 76615647 DUE FROM AFFILIATE 16875570 INVESTMENT IN AFFILIATE 12500000 105991217 0 DUE TO STATE OF NEW YORK 159038256 159038256 6119568702 761427 106897514 107658941 6011909761 6011909761 6044053170 6044053170 6044053170 SCHEDULE D PART XI, LINE 2D - OTHER ADJUSTMENTS ADMINISTRATIVE CHARGES: $75,904,924. The health care services agreements with certain hospitals require that a portion of the premiums are retained as an administrative cost by PHSP, which represents the capital required for its statutory financial reserves. EQUITY TRANSFER FROM AFFILIATE: $30,992,590. During 2016, Healthfirst requested and received approval from the Department of Health to transfer $30,992,590 of capital reserves from Neighborhood Health Providers, Inc. (NHP) to PHSP. This transfer is in conjunction with the liquidation/dissolution of the NHP operations. Other Adjustments totaling $106,897,514. true true false false false false false false false JAY A SCHECHTMAN CHIEF MEDICAL OFFICER 0 434310 309736 113267 0 106830 0 18622 0 982765 0 93963 ELIZABETH R ST CLAIR Chief Lgl Officer-END 9/30/16 407339 336888 135750 0 100613 0 9567 0 990157 0 0 PATRICIA J WANG CHIEF EXECUTIVE OFFICER 1147767 979693 1135729 0 354219 0 6228 0 3623636 0 1088131 DANIEL P MCCARTHY PRESIDENT & COO 698258 607037 177168 0 186111 0 12421 0 1680995 0 157287 PAUL E PORTSMORE JR SVP, GROWTH 396319 248312 2187 0 95926 0 140 0 742884 0 0 REBECCA SCHWIETZ SVP CLINICAL SERVICES 340655 201601 595 0 67040 0 19553 0 629444 0 0 MICHAEL FEDYNA CFO-END 7/21/15 221431 277971 4398 0 15900 0 7102 0 526802 0 0 GERALD T SWEENEY SVP CHIEF INFORMATION OFFICER 442296 427020 1520 0 119335 0 18506 0 1008677 0 0 SEAN KANE CHIEF HR OFFICER 396551 244556 11738 0 103072 0 138 0 756055 0 9878 CRAIG BARATTIN VP CONTROLLER-END 5/11/16 256886 122331 285 0 15900 0 19513 0 414915 0 0 SEAN M NATARO SECRETARY-BEG 5/11/16 275625 109613 1517 0 15900 0 19516 0 422171 0 0 JOHN J BERMEL CFO-BEG 2/1/16 522697 99037 0 0 0 16025 0 637759 0 0 MELINDA A THIEL SVP STRAT INT & BUS TRAN 304555 185765 1863 0 70125 0 120 0 562428 0 0 MARYBETH TITA SVP-CORP. FINANCE-END 3/31/15 0 0 212981 0 0 0 0 0 212981 0 0 SCHEDULE J, PART 1, LINE 4A THE FOLLOWING INDIVIDUALS ENTERED INTO SEVERANCE AGREEMENTS AND/OR RECEIVED SEVERANCE PAYMENTS FROM HF MANAGEMENT SERVICES, LLC - AN AFFILIATE ORGANIZATION OF HEALTHFIRST. ELIZABETH ST. CLAIR - TOTAL SEVERANCE: $759,575, SEVERANCE PAID IN 2016: $107,120 SEVERANCE DEFERRED: $652,455. MARYBETH TITA, SEVERANCE PAID IN 2016: $135,635. SCHEDULE J, PART 1, LINE 4B THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE NON-QUALIFIED RETIREMENT PLAN PROVIDED BY HF MANAGEMENT SERVICES, LLC - A RELATED ORGANIZATION. THE AMOUNTS BELOW REPRESENT CONTRIBUTIONS FROM THE PLAN SPONSOR FOR 2016: PATRICIA J. WANG $338,319 [Col. C] DANIEL P. McCARTHY $176,344 [Col. C] ELIZABETH R. ST CLAIR $84,713 [Col. C] JAY A. SCHECHTMAN $90,930 [Col. C] GERALD T. SWEENEY $103,455 [Col. C] SEAN KANE $87,172 [Col. C] PAUL PORTSMORE $80,026 [Col. C] MELINDA THIEL $56,547 [Col. C] REBECCA SCHWIETZ $51,140 [Col. C] MARYBETH TITA $77,346 [Col. C] HF MANAGEMENT SERVICES LLC COMMON OFFICERS/DIRECTORS 378684000 MANAGEMENT AND ADMIN SERVICES false HEALTHFIRST HEALTH PLAN INC COMMON OFFICERS/DIRECTORS 54572000 RISK SHARING INTERCO TRANSFER false HEALTHFIRST INSURANCE COMPANY INC COMMON OFFICERS/DIRECTORS 12500000 INVESTMENT false NEIGHBORHOOD HEALTH PROVIDERS INC COMMON OFFICERS/DIRECTORS 30992590 EQUITY TRANSFER false FORM 990, PART III, LINE 2 Essential Plan (EP) is a new program in 2016 which covers all of the essential health benefits covered under the Qualified Health Plans offered on the Marketplace and is offered to eligible individuals within specific income guidelines who are ineligible for Medicaid and do not have access to affordable employer coverage. FORM 990, PART III, LINE 4D OTHER PROGRAM SERVICES CHILD HEALTH PLUS (CHP): THE ORGANIZATION IS A LICENSED PREPAID HEALTH SERVICES PLAN THAT PROVIDES COMPREHENSIVE PREPAID HEALTH CARE COVERAGE TO CHP RECIPIENTS PURSUANT TO ARTICLE 44 OF THE NEW YORK STATE PUBLIC HEALTH LAW. PHSP HAS PARTICIPATED IN NEW YORK'S CHP PROGRAM SINCE 1997. Qualified Health Plans (QHP): In 2014, PHSP established a Qualified Health Plan ("QHP") under the Health Care Reform, which is certified by the New York State Health Insurance Marketplace ("Marketplace"). QHP provides essential health benefits, follows established limits on cost-sharing (deductible, copayment, and out-of-pocket maximum amounts), and must maintain compliance with other provisions of Health Care Reform. QHP is administered under an agreement between PHSP and the DOH that extends through December 31, 2018. BASIC HEALTH PLANS (BHP): HEALTHFIRST PHSP, INC. (PHSP) IS A LICENSED PREPAID HEALTH SERVICES PLAN THAT PROVIDES STANDARD HEALTH PLAN COVERAGE TO ELIGIBLE INDIVIDUALS WHO WOULD NOT HAVE ACCESS TO COVERAGE THROUGH THE HEALTH INSURANCE MARKETPLACE. PHSP UNDERTOOK NEW YORK'S BHP PROGRAM AS OF 2015. FORM 990, PART VI, SECTION A, LINE 3 HEALTHFIRST PHSP, INC. (PHSP) CONTRACTS WITH HF MANAGEMENT SERVICES, LLC (HFMS) TO PROVIDE ALL OF ITS MANAGEMENT AND ADMINISTRATIVE SERVICES. PHSP DOES NOT MAINTAIN ITS OWN STAFF OR OFFICE SPACE; THESE ARE PROVIDED BY HFMS. HFMS CHARGES A PERCENT OF PREMIUM ON A PER MEMBER PER MONTH BASIS OR A FLAT FEE PER MEMBER PER MONTH. THE ARRANGEMENT IS APPROVED BY RESOLUTION OF THE BOARD OF DIRECTORS AND THE NY STATE DEPARTMENT OF HEALTH. ALL OFFICERS, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES WERE PAID BY, AND WORKED FOR HFMS, A MANAGEMENT COMPANY WHICH PROVIDES MANAGEMENT SERVICES FOR MULTIPLE ENTITIES. NONE OF THE INDIVIDUALS LISTED EARNED ANY COMPENSATION FROM PHSP. FORM 990, PART VI, SECTION A, LINE 6 HEALTHFIRST PHSP, INC. IS A NEW YORK STATE NOT-FOR-PROFIT MEMBERSHIP CORPORATION. HEALTHFIRST PHSP'S SOLE CORPORATE MEMBER IS HEALTHFIRST, INC. FORM 990, PART VI, SECTION A, LINE 7A HEALTHFIRST PHSP, INC. (PHSP) IS A NEW YORK STATE NOT-FOR-PROFIT MEMBERSHIP CORPORATION. HEALTHFIRST PHSP'S SOLE CORPORATE MEMBER IS HEALTHFIRST, INC. HEALTHFIRST, INC. HAS THE RIGHT TO APPOINT MEMBERS TO THE BOARD OF DIRECTORS OF PHSP. FORM 990, PART VI, SECTION A, LINE 7B THE AMENDMENT OF THE ORGANIZATION'S GOVERNING DOCUMENTS IS SUBJECT TO THE APPROVAL OF HEALTHFIRST, INC. SOME OF THE DECISIONS OF THE GOVERNING BODY, SHOULD THEY OCCUR, ARE SUBJECT TO APPROVAL BY STATE REGULATORS: * DISTRIBUTION OF THE ORGANIZATION'S NET ASSETS * CERTAIN CHANGES TO PREMIUM RATES * EXPANSION TO OTHER MANAGED CARE BUSINESSES * SPECIFIC TYPES OF CHANGES TO THE ORGANIZATION'S BENEFIT PLANS * MANAGEMENT FEE RATE CHANGES [APPROVAL IS ALSO REQUIRED FROM THE MANAGEMENT COMPANY] FORM 990, PART VI, SECTION B, LINE 11B THE 990 IS PREPARED BY THE HF MANAGEMENT SERVICES, LLC (HFMS) CORPORATE FINANCE DEPARTMENT STAFF AND THEN REVIEWED BY THE HFMS VICE PRESIDENT, CONTROLLER AND TREASURER. SECONDARY REVIEWS ARE ALSO PERFORMED BY THE HFMS CHIEF LEGAL OFFICER AND CHIEF FINANCIAL OFFICER. THE DRAFT 990 IS THEN REVIEWED BY AN INDEPENDENT ACCOUNTING FIRM. THE DRAFT 990 IS THEN PRESENTED TO THE BOARD OF DIRECTORS FOR REVIEW. THE FINAL 990 IS SUBMITTED AFTER THE BOARD OF DIRECTORS REVIEW IT. FORM 990, PART VI, SECTION B, LINE 12C A CONFLICT OF INTEREST DISCLOSURE STATEMENT IS COMPLETED ANNUALLY BY EACH BOARD MEMBER, OFFICER AND KEY EMPLOYEE. A NOMINATED BOARD MEMBER WHO DOES NOT COMPLETE THE STATEMENT WITHIN THE CALENDAR YEAR WILL NOT BE PERMITTED TO CARRY OUT DUTIES. THE SAME APPLIES TO AN OFFICER OR KEY EMPLOYEE WHO DOES NOT COMPLETE THE APPROPRIATE DISCLOSURES. ANY DISCLOSURE OF A CONFLICT OR POTENTIAL CONFLICT IS REVIEWED BY THE CHIEF COMPLIANCE OFFICER. CONFLICTS ARE ADDRESSED BY EXAMINING THE RELATIONSHIP OF THE INDIVIDUAL TO THE ORGANIZATION AND THE NATURE OF THE DISCLOSURE. A REPORT OF ANY CONFLICTS IS PREPARED FOR DISCUSSION WITH AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF DIRECTORS OF HEALTHFIRST, INC., THE NOT FOR PROFIT CORPORATE PARENT, AS WELL AS THE FULL BOARD OF DIRECTORS OF HEALTHFIRST PHSP, INC. AS APPROPRIATE. GUIDANCE IS PROVIDED TO THE NECESSARY PARTIES AND ACTION IS TAKEN, INCLUDING BUT NOT LIMITED TO DISCLOSURE AND RECUSAL FROM DECISION-MAKING, MODIFICATIONS TO BUSINESS AGREEMENTS, CHANGES IN VENDORS OR REPLACEMENT OF THE DIRECTOR, OFFICER OR KEY EMPLOYEE WITH A NON-CONFLICTED INDIVIDUAL. FORM 990, PART VI, SECTION B, LINE 15 BECAUSE THE REPORTING ORGANIZATION DID NOT COMPENSATE ANY OFFICER OR EMPLOYEE, THE REPORTING ORGANIZATION HAS RESPONDED "NO." HOWEVER, THE COMPENSATION OF THE CEO, OTHER OFFICERS AND KEY EMPLOYEES IS DETERMINED BY THE COMPENSATION COMMITTEE OF HF MANAGEMENT SERVICES, LLC, THE MANAGEMENT COMPANY THAT PROVIDES ALL SERVICES TO PHSP (A RELATED ORGANIZATION). THE COMMITTEE CONSISTS ONLY OF HFMS MEMBER HOSPITAL DIRECTORS (WHO ARE NOT EMPLOYED NOR COMPENSATED BY HFMS OR ANY OF ITS AFFILIATES). THE PROCESS FOR DETERMINING COMPENSATION IS DESCRIBED IN THE COMMITTEES CHARTER. THE PROCESS INCLUDES ENGAGEMENT OF AN OUTSIDE HUMAN RESOURCES CONSULTING FIRM TO CONDUCT A COMPARABILITY ANALYSIS. THE ANALYSIS INCLUDES COMPARABLE RANGES OF EXECUTIVE COMPENSATION USING THE COMPANY'S INDUSTRY CLASSIFICATION. THE COMMITTEE MEETS PRIOR TO IMPLEMENTATION OF ANY CHANGE IN COMPENSATION. CONTEMPORANEOUS MINUTES OF EACH MEETING ARE PREPARED. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC BY PROVIDING COPIES ON REQUEST FOR INSPECTION AT ITS CORPORATE OFFICES. FORM 990, PART XI, LINE 9 OTHER CHANGES IN NET ASSETS - ADMINISTRATIVE CHARGES: $75,904,924. EQUITY TRANSFER FROM AFFILIATE: $30,992,590. DURING 2016, HEALTHFIRST REQUESTED AND RECEIVED APPROVAL FROM THE DEPARTMENT OF HEALTH TO TRANSFER $30,992,590 OF CAPITAL RESERVES FROM NHP TO PHSP. THIS TRANSFER IS IN CONJUNCTION WITH THE LIQUIDATION/DISSOLUTION OF THE NHP OPERATIONS. TOTAL OTHER CHANGES IN NET ASSETS AMOUNT TO $106,897,514. FORM 990, PART XII, LINE 2C THE SELECTION OF THE INDEPENDENT AUDITOR IS ADMINISTERED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF DIRECTORS OF HEALTHFIRST, INC. (A RELATED ORGANIZATION). HEALTHFIRST HEALTH PLAN INC 100 CHURCH ST FL 18 NEW YORK NY 10007 113029569 MANAGED CARE NY 501 (C)4 HEALTHFIRST true HEALTHFIRST INC 100 CHURCH ST FL 18 NEW YORK NY 10007 133714932 MANAGED CARE NY 501 (C)3 12 Type I NA false HEALTHFIRST HEALTH PLAN OF NJ INC 1 WASHINGTON ST STE 1405 NEWARK NJ 07102 510609967 MANAGED CARE NJ 501 (C)4 HF MGMT SVCS true SENIOR HEALTH PARTNERS INC 100 CHURCH STREET 18FL NEW YORK NY 10007 134103882 MGD LT CARE NY 501 (C)3 10 HEALTHFIRST true NEIGHBORHOOD HEALTH PROVIDERS INC 100 CHURCH ST FL 18 NEW YORK NY 10007 943474115 MANAGED CARE NY 501 (C)3 10 HEALTHFIRST true HF MANAGEMENT SERVICES LLC 100 CHURCH ST FL 18 NEW YORK NY 100072601 134069806 3RD PTY ADM S NY 0 HF ADMINISTRATIVE SERVICES INC 100 CHURCH STREET NEW YORK NY 100072601 133873482 3RD PTY ADM S NY HF MGMT SVCS C CORP true HEALTHFIRST INSURANCE COMPANY INC 100 CHURCH STREET New York NY 100072601 464545744 INSUR. PROVID NY NA C CORP false false false false false false false false false false false false false true false false false false true true HF MANAGEMENT SERVICES LLC (HFMS) M 378684000 CONTRACTED RATE HEALTHFIRST INSURANCE COMPANY INC (HFIC) R 12500000 CONTRACT HEALTHFIRST HEALTH PLAN INC (HFHP) S 54572000 CONTRACT NEIGHBORHOOD HEALTH PROVIDERS INC (NHP) S 30992590 DOH APPROVAL FORM 990, SCHEDULE R, PART V, LINE 2 METHOD OF DETERMINING AMOUNT INVOLVED ITEM (1): THE AMOUNT REPRESENTS THE EXPENSES INCURRED AND PAID OR DUE TO THE RELATED ORGANIZATION FOR SERVICES RENDERED BASED ON CONTRACTED RATES APPROVED BY RESOLUTION OF THE BOARD OF DIRECTORS AND BY STATE REGULATORS. ITEM (2): IN 2016, PHSP PURCHASED 50% OF THE OUTSTANDING COMMON STOCK OF HEALTHFIRST INSURANCE COMPANY, INC. ("HFIC"), A SUBSIDIARY, IN EXCHANGE FOR CASH CONSIDERATION. ITEM (3): IN ACCORDANCE WITH THE ORGANIZATION'S CONTRACTUAL ARRANGEMENTS AND UPON APPROVAL BY THE BOARD OF DIRECTORS OF PHSP, HEALTHFIRST HEALTH PLAN, INC. ("HFHP"), AN AFFILIATED COMPANY AND HEALTHFIRST, CERTAIN MEMBER DEFICIT BALANCES IN PHSP MAY BE OFFSET BY A PERCENTAGE OF THAT MEMBER'S SURPLUS BALANCE IN HFHP THROUGH AN INTERCOMPANY TRANSFER; CONVERSELY, HFHP MEMBER DEFICIT BALANCES MAY BE OFFSET BY A PERCENTAGE OF PHSP'S SURPLUS BALANCES. IN 2016, THE ALLOWABLE AMOUNT OF SURPLUS OFFSET WAS INCREASED FROM 25% TO 50% OF SURPLUSES THAT MAY ACCRUE, AND WOULD OTHERWISE BE DISTRIBUTED TO A MEMBER HOSPITAL OR AFFILIATE INSTITUTION BY EITHER PHSP OR HFHP. ITEM (3) IS A TRANSFER FROM HFHP. ITEM (4): DURING 2016, HEALTHFIRST REQUESTED AND RECEIVED APPROVAL FROM THE DEPARTMENT OF HEALTH TO TRANSFER CAPITAL RESERVES FROM NHP TO PHSP. THIS TRANSFER IS IN CONJUNCTION WITH THE LIQUIDATION/DISSOLUTION OF THE NHP OPERATIONS.