2017-11-15T16:56:30-06:00 2016-12-31 ERNST & YOUNG US LLP 155 N Wacker Drive Chicago IL 60606 990 2016-01-01 363330928 Presence Healthcare Services % JAMES H KELLEY PRES 6309142791 100 North River Road Des Plaines IL 60016 JAMES H KELLEY TREASURER 6309142791 2017-11-13 Jacob J Zehnder P01564049 3128792000 164.57.159.253 36964520173195000061 2017-11-15 P 7D6F4A8AF469C3962AC110E0593D717C1921FD9E AA66391A3EB419599D985CB7941CE455993313B6 2016 2021-01-29 14:40:06Z SEE SCHEDULE O DANA GILBERT 200 SOUTH WACKER DRIVE CHICAGO IL 60606 144453324 false 0928 X www.presencehealth.org X 1984 IL SEE SCHEDULE O 3 0 0 0 0 0 0 0 100828514 132627096 1337592 -42392 -2627388 -2980739 99538718 129603965 0 0 0 0 79749192 113068565 0 0 0 67010888 64479357 146760080 177547922 -47221362 -47943957 93761315 93559306 7219084 54961032 86542231 38598274 X SEE SCHEDULE O. true true 163155850 126599733 PRESENCE HEALTHCARE SERVICES (PHS) PROVIDES THE COMMUNITY WITH NEARLY 265 HIGHLY QUALIFIED PHYSICIANS IN LOCATIONS THROUGHOUT THE CHICAGOLAND AREA. IT OFFERS ACCESS TO DOCTORS FROM VARIOUS DISCIPLINES AND ONE-STOP CLINICS FOR COMPREHENSIVE CARE AND TESTING. PHS PHYSICIANS HAVE PRACTICED IN THE COMMUNITIES THAT THEY SERVE FOR MANY YEARS. THE PHYSICIANS FOCUS ON LONG-TERM HEALTH, NOT JUST SHORT-TERM TREATMENT, AND TAKE THE TIME TO BUILD STRONG RELATIONSHIPS WITH THE COMMUNITY. PHS PHYSICIANS HAVE FLEXIBLE OFFICE HOURS AND EASY APPOINTMENT SCHEDULING, MAKING IT EASY FOR THE PEOPLE OF THE COMMUNITY TO GET THE HEALTHCARE THEY NEED, WHEN THEY NEED IT. 7153469 6027363 PRESENCE HEALTHCARE SERVICES (PHS) OWNS AND MANAGES A NUMBER OF MEDICAL OFFICE BUILDINGS. PHS IN TURN LEASES THE SPACE TO OTHER RELATED TAX-EXEMPT HEALTHCARE ENTITIES IN SUPPORT OF THEIR TAX-EXEMPT PROGRAM SERVICES. 170309319 true false false false false false false false false false true false false false true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true true true false false true X 0 0 0 false false false false false false false false false false X 3 0 false false true false true true true true true false false false true true true true true true true false X JAMES H KELLEY 3123083289 200 SOUTH WACKER DRIVE CHICAGO IL 60606 X BRIAN D RASMUS DIRECTOR, PMG FINANCE OFFICER 40.0 1.0 X 301957 0 27197 DANA GILBERT DIR/INT/PRES/CEO, CHF STRGY HO 1.0 44.0 X X 0 503669 137989 LESLIE R STERN DIRECTOR PMG PRACTICE OPR OFFC 40.0 1.0 X 262247 0 22862 ANTHONY FILER TREASURER (TERM 1/31/16), CFO 1.0 55.0 X 0 804167 7726 JAMES H KELLEY TREASURER, CFO 1.0 55.0 X 0 439434 93832 JEANNIE C FREY SECRETARY, SYS CH LGL OFFC 1.0 55.0 X 0 573469 126323 JULIE ROKNICH ASST SEC, SYS DIR SR AGC 1.0 54.0 X 0 189987 29914 PATRICIA EDDY ASST TREAS, SYS FINANCE OFFC 1.0 54.0 X 0 164402 29313 PATRICK QUINN ASST TREAS (TRM 2/17), SYS VP 1.0 54.0 X 0 270559 55888 PAULA J CAMPBELL ASST TREAS (TRM 8/16), SYS FO 1.0 54.0 X 0 293454 5179 STEPHEN WALTER TREASURER (TERM 5/2016) 1.0 54.0 X 0 85675 0 RACHEL M GEORGE SYS VP HOSP-EMERGENCY MED 40.0 0.0 X 446030 0 196983 NICOLE S SIBOL STRATEGY & GROWTH OFF-PMG 40.0 0.0 X 227748 0 13430 GAURAV KAPOOR PHYSICIAN MED 3000 40.0 0.0 X 1017205 0 42497 DONG O KIM PHYSICIAN MED 3000 40.0 0.0 X 895914 0 46597 JOMEL S LABAYOG PHYSICIAN MED 3000 40.0 0.0 X 852678 0 46983 MARIO MASSULLO PHYSICIAN MED 3000 40.0 0.0 X 835686 0 34052 NICHOLAS C FRISCH PHYSICIAN 40.0 0.0 X 811991 0 23772 SANDRA BRUCE FMR PRES/CEO/EX-OFFC-TRM 12/15 0.0 0.0 X 0 289815 5300 HOWARD DRENTH FMR DIR EX-OFFC, PRES/CEO 40.0 2.0 X 317160 0 12626 5968616 3614631 958463 296 true true false PST SERVICES INC PO BOX 742526 ATLANTA GA 30374 BILLING SERVICE 2066346 US BANK CORPORATE TRUST PO BOX 70870 ST PAUL MN 55170 CLINICAL AGENCY 1147171 B AND B MAINTENANCE INC 537 CAPITAL DR LAKE ZURICH IL 60047 MAINTENANCE SERVICES 776449 QUEST DIAGNOSTICS LLC 850 BEISTERFIELD ROAD ELK GROVE VILLAGE IL 60007 CLINICAL LABORATORY 721594 FAMILY MEDICAL GROUP SC 330 NORTH MADISON STREET SUITE 104 JOLIET IL 60435 CLINICAL AGENCY 662670 26 0 0 0 MEDICAL GROUP 621990 126599733 126599733 0 0 PROPERTIES 531110 6027363 6027363 0 0 132627096 0 0 0 11824628 14806967 -2982339 0 -2982339 -2982339 0 42392 -42392 -42392 -42392 0 0 0 0 0 0 0 0 0 CAFETERIA 722514 1600 0 0 1600 1600 129603965 132627096 0 -3023131 0 0 0 0 0 0 0 0 1498455 1498455 0 0 0 0 0 0 98941843 98941843 0 0 1818354 1818354 0 0 5680063 5680063 0 0 5129850 5129850 0 0 7048356 0 7048356 0 190247 0 190247 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 14457897 14457897 0 0 6187 6187 0 0 1250556 1250556 0 0 30424 30424 0 0 0 0 0 0 8495437 8495437 0 0 206168 206168 0 0 0 0 0 0 16907 16907 0 0 1350237 1350237 0 0 0 0 0 0 4713915 4713915 0 0 1746955 1746955 0 0 BAD DEBT 17147504 17147504 0 0 MEDICAL SUPPLIES 4871913 4871913 0 0 REPAIRS AND MAINTENANCE 511263 511263 0 0 MINOR & LEASED EQUIPMENT 301039 301039 0 0 2134352 2134352 177547922 170309319 7238603 0 0 542612 0 0 0 0 0 9801182 9620629 0 0 0 0 0 0 -1283 0 0 0 214906542 131004414 83418804 83902128 0 0 0 0 0 0 0 0 0 36549 93761315 93559306 7013305 8681751 0 0 0 419323 0 0 0 0 0 0 0 0 0 0 205779 45859958 7219084 54961032 X 86542231 38598274 0 0 0 0 86542231 38598274 93761315 93559306 -47943957 0 0 0 0 X X false true X true false X 0 0 0 0 0 0 132627096 132627096 0 0 0 0 0 0 0 132627096 132627096 0 0 0 132627096 11824628 11824628 0 11824628 11824628 0 1600 1600 0 0 0 0 144453324 144453324 0.91813 0.00000 0.08186 0.00000 X PARTS I & III, PUBLIC SUPPORT PRESENCE HEALTHCARE SERVICES (PHS) HAS HISTORICALLY REPORTED AS A HOSPITAL ORGANIZATION UNDER 170(B)(1)(A)(III). PHS WAS LATER TO SERVE AS A TAX-EXEMPT PHYSICIAN GROUP FOR THE PRESENCE HEALTH SYSTEM. AS OF 2016, PHS IS MORE ACCURATELY REPORTING AS A PUBLICLY SUPPORTED ORGANIZATION UNDER 509(A)(2). 6170779 6170779 149487126 93842015 55645111 4261070 2930564 1330506 54987343 34231835 20755508 224 224 83902128 0 DUE TO AFFILIATES 40589505 OTHER LONG TERM LIABILITIES 74206 CAPITAL ACCUMULATION 22557 CASH OVERDRAFT 5173690 45859958 X FIN 48 (ASC740) Footnote PRESENCE HEALTH AND AFFILIATES RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY THE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. AS OF DECEMBER 31, 2016 AND 2015 PRESENCE HEALTH AND ITS AFFILIATES DO NOT HAVE ANY LIABILITIES FOR UNRECOGNIZED TAX BENEFITS. true true false false false false false ANTHONY FILER TREASURER (TERM 1/31/16), CFO 0 63489 0 0 0 740678 0 5841 0 1885 0 811893 0 527027 BRIAN D RASMUS DIRECTOR, PMG FINANCE OFFICER 282971 0 0 0 18986 0 13250 0 13947 0 329154 0 0 0 DANA GILBERT DIR/INT/PRES/CEO, CHF STRGY HO 0 491221 0 0 0 12448 0 114638 0 23351 0 641658 0 0 JAMES H KELLEY TREASURER, CFO 0 432039 0 0 0 7395 0 80634 0 13198 0 533266 0 0 JEANNIE C FREY SECRETARY, SYS CH LGL OFFC 0 448798 0 0 0 124671 0 104479 0 21844 0 699792 0 86745 JULIE ROKNICH ASST SEC, SYS DIR SR AGC 0 189804 0 0 0 183 0 9052 0 20862 0 219901 0 0 LESLIE R STERN DIRECTOR PMG PRACTICE OPR OFFC 261330 0 0 0 917 0 5300 0 17562 0 285109 0 0 0 PATRICIA EDDY ASST TREAS, SYS FINANCE OFFC 0 159817 0 0 0 4585 0 18641 0 10672 0 193715 0 0 PATRICK QUINN ASST TREAS (TRM 2/17), SYS VP 0 237924 0 0 0 32635 0 39294 0 16594 0 326447 0 23604 PAULA J CAMPBELL ASST TREAS (TRM 8/16), SYS FO 0 284718 0 0 0 8736 0 0 0 5179 0 298633 0 0 SANDRA BRUCE FMR PRES/CEO/EX-OFFC-TRM 12/15 0 16341 0 0 0 273474 0 5300 0 0 0 295115 0 0 HOWARD DRENTH FMR DIR EX-OFFC, PRES/CEO 220146 0 0 0 97014 0 0 0 12626 0 329786 0 67495 0 RACHEL M GEORGE SYS VP HOSP-EMERGENCY MED 130854 0 0 0 315176 0 190172 0 6811 0 643013 0 0 0 NICOLE S SIBOL STRATEGY & GROWTH OFF-PMG 227006 0 0 0 742 0 9200 0 4230 0 241178 0 0 0 GAURAV KAPOOR PHYSICIAN MED 3000 676041 0 339754 0 1410 0 18790 0 23707 0 1059702 0 0 0 DONG O KIM PHYSICIAN MED 3000 523062 0 349930 0 22922 0 21108 0 25489 0 942511 0 0 0 JOMEL S LABAYOG PHYSICIAN MED 3000 700468 0 132368 0 19842 0 24044 0 22939 0 899661 0 0 0 MARIO MASSULLO PHYSICIAN MED 3000 557884 0 275060 0 2742 0 18531 0 15521 0 869738 0 0 0 NICHOLAS C FRISCH PHYSICIAN 416217 0 393909 0 1865 0 13250 0 10522 0 835763 0 0 0 DETERMINATION OF COMPENSATION OF ORGANIZATION'S CEO/EXECUTIVE DIRECTOR SCHEDULE J, PART I, LINE 3 COMPENSATION FOR THE CORPORATION'S CEO AND OTHER OFFICERS OR KEY EMPLOYEES IS DETERMINED IN ACCORDANCE WITH WRITTEN POLICIES AND PROCEDURES ADOPTED BY THE BOARD OF DIRECTORS OF THE CORPORATION AND THE CORPORATIONS ULTIMATE PARENT, PRESENCE HEALTH NETWORK. SUCH POLICIES AND PROCEDURES ARE APPLIED BY THE HUMAN RESOURCES COMMITTEE OF PRESENCE HEALTH NETWORK, WHICH CONSISTS WHOLLY OF INDEPENDENT DIRECTORS. PRESENCE HEALTH NETWORK USES MARKET DATA COMPILED BY AN INDEPENDENT COMPENSATION CONSULTANT TO ESTABLISH BASE SALARIES AND TOTAL CASH COMPENSATION OPPORTUNITIES. THE HUMAN RESOURCES COMMITTEE MONITORS EXECUTIVE TOTAL COMPENSATION, ANNUALLY REVIEWING AND APPROVING COMPENSATION CHANGES FOR EACH EXECUTIVE, AND REGULARLY REPORTING ITS ACTIVITIES TO THE BOARD. SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A PRESENCE HAS THREE SEVERANCE PLANS DEPENDING UPON LEVEL. THESE PLANS ALLOW INDIVIDUALS WHOSE JOBS HAVE BEEN ELIMINATED AND WHO HAVE NOT BEEN ABLE TO FIND A SIMILAR POSITION WITHIN THE SYSTEM TIME TO TRANSITION. THE NUMBER OF WEEKS OF WAGE CONTINUATION ARE BASED UPON LENGTH OF SERVICE. THE PLANS ARE NOT FUNDED. THE FOLLOWING INDIVIDUALS RECEIVED SEVERANCE PAYMENTS IN CALENDAR YEAR 2016: ANTHONY FILER 527,027 RACHEL M GEORGE 222,120 THE CORPORATION ALSO ACCRUED DEFERRED SEVERANCE FOR THE FOLLOWING INDIVIDUALS, WHICH WILL VEST IN A LATER YEAR: RACHEL M GEORGE 190,172 PAYMENTS FROM A SUPPLEMENTAL NON QUALIFIED RETIREMENT PLAN SCHEDULE J, PART I, QUESTION 4B IN ORDER TO ENHANCE THE ABILITY OF PRESENCE HEALTH TO ATTRACT AND RETAIN QUALIFIED MANAGEMENT PERSONNEL BY PROVIDING ELIGIBLE EXECUTIVES WITH ADDITIONAL RETIREMENT BENEFITS ON A DEFERRED BASIS, PRESENCE HEALTH NETWORK MAINTAINS AN UNFUNDED SUPPLEMENTAL RETIREMENT PLAN (THE "PLAN") FOR A SELECT GROUP OF MANAGEMENT, WHICH IS INTENDED TO COMPLY WITH SECTION 457(F), AND SECTION 409A OF THE INTERNAL REVENUE CODE. PRESENCE HEALTH NETWORK CREDITS TO SUCH ELIGIBLE EXECUTIVE'S RETIREMENT ACCOUNT AN AMOUNT BASED ON A PERCENTAGE OF SALARY. EARNINGS AND/OR LOSSES ON INVESTMENTS ARE CREDITED AT A RATE EQUAL TO THE RATE OF RETURN OVER THE SAME PERIOD ON INVESTMENT OPTIONS SELECTED BY THE ELIGIBLE EXECUTIVE. ELIGIBLE EXECUTIVES ARE ENTITLED TO RECEIVE BENEFITS ON THE EARLIEST OF (I) JANUARY 1 OF THE THIRD CALENDAR YEAR BEGINNING AFTER THE YEAR IN WHICH SUCH CONTRIBUTION IS CREDITED, (II) ATTAINING AGE 62, OR (III) ATTAINING THE AGE OF 60 IF THE ELIGIBLE EXECUTIVE HAS COMPLETED TEN (10) YEARS OF SERVICE. THE FOLLOWING LISTED INDIVIDUALS BECAME VESTED IN SUPPLEMENTAL RETIREMENT BENEFITS UNDER THE SERP, AND THEREFORE HAD BENEFITS INCLUDED IN THEIR TAXABLE INCOME: ANTHONY FILER 5,874 HOWARD DRENTH 70,915 JEANNIE C FREY 94,713 PATRICK QUINN 25,318 RACHEL M GEORGE 73,215 ALSO IN RESPONSE TO QUESTION 4B, THE FOLLOWING LISTED INDIVIDUALS PARTICIPATED IN THE ORGANIZATION'S SECTION 457(F) PLAN AND EARNED UNVESTED BENEFITS DURING 2016 WHICH ARE REPORTED IN COLUMN (C): DANA GILBERT 105,149 JAMES H KELLEY 80,634 JEANNIE C FREY 88,579 PATRICIA EDDY 16,622 PATRICK QUINN 24,559 FORM 990, BOX C DOING BUSINESS AS/ASSUMED NAMES PRESENCE HEALTHCARE SERVICES ALSO OPERATES UNDER THE FOLLOWING ASSUMED NAMES: - PRESENCE MEDICAL GROUP RHC - WOMEN FIRST - PRESENCE MEDICAL GROUP FORM 990, PART I, LINE 1 MISSION STATEMENT/SIGNIFICANT ACTIVITY INSPIRED BY THE HEALING MINISTRY OF JESUS CHRIST, WE PRESENCE HEALTH, A CATHOLIC HEALTH SYSTEM, PROVIDE COMPASSIONATE, HOLISTIC CARE WITH A SPIRIT OF HEALING AND HOPE IN THE COMMUNITIES WE SERVE. FORM 990, PART III, QUESTION 1 MISSION STATEMENT THE CORPORATION IS PART OF THE PRESENCE HEALTH SYSTEM AND ACTS IN ACCORDANCE WITH THE PRESENCE HEALTH MISSION, WHICH IS AS FOLLOWS: INSPIRED BY THE HEALING MINISTRY OF JESUS CHRIST AND AS PART OF PRESENCE HEALTH, A CATHOLIC HEALTH SYSTEM, PRESENCE HEALTHCARE SERVICES PROVIDES HEALTHCARE SERVICES IN A COMPASSIONATE, HOLISTIC MANNER IN THE SPIRIT OF HEALING AND HOPE. FORM 990, PART III, QUESTION 2 NEW PROGRAM SERVICES AS OF JANUARY 1, 2016 THE PRESENCE HEALTH SYSTEM CONSOLIDATED ALL OF ITS MEDICAL GROUP ACTIVITIES IN PRESENCE HEALTHCARE SERVICES (PHS). AS PART OF THIS CONSOLIDATION, THE ALVERNO LABS INTEREST, PREVIOUSLY OWNED BY PRESENCE VENTURES, AND THE MEDICAL GROUP ASSETS, PREVIOUSLY HELD AT PRESENCE SERVICE CORPORATION, WERE TRANSFERRED TO PHS AND WILL BE REPORTED FOR THE ENTIRE YEAR ON THIS ENTITY'S FORM 990. FORM 990, PART III, QUESTION 3 CHANGES IN PROGRAM SERVICES AS OF JANUARY 1, 2016 THE PRESENCE HEALTH SYSTEM CONSOLIDATED ALL OF ITS HOME CARE SERVICES TO PRESENCE HOME CARE (PHC). AS PART OF THIS CONSOLIDATION THE HOMEBOUND ELDERLY CARE SERVICES THAT WERE PREVIOUSLY PERFORMED BY PRESENCE HEALTHCARE SERVICES HAVE BEEN TRANSFERRED OUT OF THIS ENTITY AND WILL BE REPORTED ON PHC'S FORM 990. FORM 990, PART I, QUESTION 5, AND PART V, QUESTION 2 COMPENSATION AND FORM W-3 TRANSMITTAL OF WAGES AND TAX STATEMENT PRESENCE HEALTHCARE SERVICES (THE "CORPORATION") REPORTS 0 EMPLOYEES ON FORM 990, PART I, QUESTION 5 AND FORM 990, PART V, QUESTION 2A AS IT IS NOT REQUIRED TO FILE FORM W-3, TRANSMITTAL OF WAGES AND TAX STATEMENT. THE CORPORATIONS COMPENSATION IS PAID BY PRESENCE CARE TRANSFORMATION CORPORATION ("PCTC"), WHICH ISSUES THE FORMS W-2 AND W-3, AND THE EXPENSE IS TRANSFERRED TO THE CORPORATION. THE COMPENSATION AMOUNTS REPORTED IN THIS 990 REFLECT THE AMOUNT TRANSFERRED TO THE CORPORATION FROM PCTC. FORM 990, PART V, QUESTION 1A FORM 1096 TRANSMITTAL OF U.S. INFORMATION RETURNS PRESENCE HEALTHCARE SERVICES (THE "CORPORATION") REPORTS 0 ON FORM 990, PART V, QUESTION 1A AS IT IS NOT REQUIRED TO FILE FORM 1096, TRANSMITTAL OF U.S. INFORMATION RETURNS. ALL OF THE CORPORATIONS ACCOUNTS PAYABLE REPORTABLE ON FORM 1096 ARE PAID BY PRESENCE CARE TRANSFORMATION CORPORATION ("PCTC"), WHICH ISSUES ALL FORMS 1099, AND THE EXPENSE IS TRANSFERRED TO THE CORPORATION. THE COMPENSATION AMOUNTS REPORTED IN THIS 990 REFLECT THE AMOUNT TRANSFERRED TO THE CORPORATION FROM PCTC. FORM 990, PART VI, QUESTION 4 CHANGES TO ORGANIZATIONAL DOCUMENTS THE CORPORATION'S ARTICLES OF INCORPORATION WERE AMENDED EFFECTIVE JANUARY 1, 2016 UPDATE ITS CHARITABLE PURPOSE TO SPECIFICALLY REFERENCE ITS ACTIVITIES OF PROMOTING THE GENERAL HEALTH OF THE COMMUNITIES THE CORPORATION SERVES THROUGH THE PROVISION OF PHYSICIANS AND RELATED HEALTHCARE SERVICES. THE CORPORATION'S BYLAWS WERE AMENDED JANUARY 1, 2016 TO REFLECT THE CORPORATION'S CHARITABLE PURPOSES AS STATED IN ITS ARTICLES OF INCORPORATION BY INCLUDING THE CORPORATION'S PURPOSE STATEMENT, AS WELL AS A PROVISION CLARIFYING THAT THE CORPORATION IS NOT PERMITTED TO USE CONTRIBUTIONS TO CARRY ON ACTIVITIES THAT ARE NOT CHARITABLE, RELIGIOUS, SCIENTIFIC, OR EDUCATIONAL UNDER SECTION 170(C)(2). THE FOLLOWING ADDITIONAL CHANGES WERE MADE TO THE CORPORATIONS GOVERNANCE: (1) THE CORPORATIONS SOLE MEMBER CHANGED FROM "PRESENCE RHC CORPORATION" TO "PRESENCE CARE TRANSFORMATION CORPORATION(2) THE MINIMUM AND MAXIMUM AMOUNT OF DIRECTORS SERVING ON THE BOARD WAS REVISED. FORM 990, PART VI, QUESTION 6 MEMBERS OR SHAREHOLDERS PRESENCE HEALTHCARE SERVICES HAS ONE MEMBER, PRESENCE CARE TRANSFORMATION CORPORATION. FORM 990, PART VI, QUESTION 7A PERSONS WITH AUTHORITY TO ELECT MEMBERS OF THE GOVERNING BODY THE CORPORATIONS SOLE MEMBER, PRESENCE CARE TRANSFORMATION CORPORATION, HAS THE POWER TO APPOINT MEMBERS OF THE GOVERNING BODY, OTHER THAN EX-OFFICIO DIRECTORS. FORM 990, PART VI, QUESTION 7B DECISIONS OF GOVERNING BODY APPROVAL BY MEMBERS OR SHAREHOLDERS PRESENCE CARE TRANSFORMATION CORPORATION (THE "MEMBER"), THROUGH ITS BOARD OF DIRECTORS, HAS CERTAIN GENERAL AND RESERVED POWERS WITH RESPECT TO THE FOLLOWING. GENERAL POWERS: THE MEMBER SHALL PROVIDE OVERSIGHT AND SUPPORT FOR THE ACTIVITIES OF THE CORPORATION, FOR THE PURPOSE OF ASSURING THAT ALL ACTIONS OF THE CORPORATION ARE CONSISTENT WITH THE MISSION AND VALUES OF THE SYSTEM; THE PURPOSES OF THE CORPORATION; THE ETHICAL AND RELIGIOUS DIRECTIVES; THE PRESENCE HEALTH SYSTEM STRATEGIC PLAN; AND BEST PRACTICES. RESERVED POWERS: IN FURTHERANCE OF THE EXERCISE OF ITS GENERAL POWERS AND RESPONSIBILITIES, THE MEMBER SHALL HAVE THE SOLE POWER TO TAKE THE ACTIONS SPECIFIED BELOW WITH RESPECT TO THE FOLLOWING MATTERS PERTAINING TO THE CORPORATION AND EACH HOSPITAL MINISTRY, SUBJECT TO ANY NOTICES OR FURTHER APPROVALS REQUIRED BY APPLICABLE CIVIL OR CANON LAW, OR THE MEMBER'S BYLAWS: A. BYLAWS. AMEND OR REPEAL THE BYLAWS OF THE CORPORATION. B. OFFICERS AND DIRECTORS. APPOINT AND REMOVE ALL OFFICERS OF THE CORPORATION AND ALL DIRECTORS OF THE CORPORATION, OTHER THAN ANY EX-OFFICIO DIRECTORS. C. BUDGETS. APPROVE CAPITAL AND OPERATING BUDGETS, AND LONG-TERM CAPITAL EQUIPMENT PLANS FOR THE CORPORATION, INCLUDING EACH HOSPITAL MINISTRY. D. UNBUDGETED EXPENDITURES. APPROVE UNBUDGETED EXPENDITURES IN EXCESS OF THE LIMIT ESTABLISHED BY THE MEMBER FROM TIME TO TIME. E. DEBT, SALE, LEASE AND OTHER REAL PROPERTY TRANSACTIONS. APPROVE ANY BORROWING OR SIGNIFICANT INCURRENCE OF DEBT BY THE CORPORATION IN EXCESS OF THE LIMIT ESTABLISHED BY THE MEMBER FROM TIME TO TIME, OR ANY SALE, PURCHASE, ALIENATION, EXCHANGE, SIGNIFICANT LEASES (OTHER THAN IN THE ORDINARY COURSE) OR ENCUMBRANCES OF THE CORPORATION'S REAL PROPERTY, EXCEPT THOSE MADE PURSUANT TO APPROVED BUDGETS. F. REAL ESTATE DOCUMENTS, EQUIPMENT LEASES. APPROVE EXECUTION OF ANY DEEDS, MORTGAGES, BONDS, OR MAJOR EQUIPMENT LEASES, EXCEPT THOSE ENTERED INTO PURSUANT TO APPROVED BUDGETS. G. SIGNIFICANT UNBUDGETED TRANSACTIONS. APPROVE ANY OTHER SIGNIFICANT AND UNBUDGETED SALE, PURCHASE, EXCHANGE, LEASE (OTHER THAN IN THE ORDINARY COURSE) TRANSFER, LITIGATION OR LEGAL SETTLEMENT, BENEFITS PACKAGES, ENCUMBRANCE OR OTHER DISPOSITION OR OTHER SIGNIFICANT TRANSACTION INVOLVING THE NON-REAL-ESTATE ASSETS OF THE CORPORATION IN EXCESS OF THE LIMIT ESTABLISHED BY THE MEMBER FROM TIME TO TIME. H. MATERIAL CHANGES IN SERVICES. APPROVE MATERIAL CHANGES IN THE KIND OF SERVICES RENDERED AT ANY HOSPITAL MINISTRY, SUCH AS THE ADDITION OR DISCONTINUATION OF ANY MAJOR SERVICE LINE (E.G., OBSTETRICS) OR CHANGE IN THE FUNDAMENTAL NATURE OF SERVICES PROVIDED BY THE CORPORATION THROUGH ANY HOSPITAL MINISTRY (E.G., A CHANGE REQUIRING A DIFFERENT KIND OF LICENSE). I. STRATEGIC PLAN. APPROVE STRATEGIC PLANS FOR THE CORPORATION AND EACH HOSPITAL MINISTRY, CONSISTENT WITH AND IN FURTHERANCE OF SYSTEM MISSION AND VALUES, AND RESPONSIVE TO THE NEEDS OF THE COMMUNITIES SERVED BY THE CORPORATION AND SUPPORT THE ABILITY OF THE CORPORATION AND ITS AFFILIATES TO PROVIDE HIGH-QUALITY CARE AND SERVICES. J. MANAGEMENT CONTRACTS. APPROVE ANY CONTRACT FOR THE MANAGEMENT OF ALL OR SUBSTANTIALLY ALL OF THE CORPORATION OR ANY INDIVIDUAL HOSPITAL MINISTRY OWNED BY THE CORPORATION. K. BUSINESS NAME, LOGO. APPROVE ANY SELECTION OR MODIFICATION OF THE BUSINESS NAME OR LOGO OF THE CORPORATION OR ANY HOSPITAL MINISTRY OR ANY PROGRAM OR DIVISION, OR THE USE OF ANY CORPORATE OR BUSINESS NAME OF THE CORPORATION OR ANY HOSPITAL MINISTRY BY AN ENTITY OTHER THAN THE MEMBER OR AN AFFILIATE. L. ADMINISTRATIVE SERVICES. PROVIDE OR ASSURE THE PROVISION OF APPROPRIATE INSURANCE COVERAGE, STANDARDIZED EMPLOYEE BENEFITS, INFORMATION SYSTEMS AND TECHNOLOGY, FINANCIAL MANAGEMENT SERVICES, LEGAL, MARKETING, RISK MANAGEMENT AND OTHER ADMINISTRATIVE SERVICES NECESSARY TO SUPPORT THE CORPORATION'S OPERATIONS. M. SIGNIFICANT JOINT VENTURES. APPROVE THE ESTABLISHMENT, TERMINATION, OR SALE OF ANY SIGNIFICANT JOINT VENTURE RELATIONSHIP BY THE CORPORATION GENERALLY OR WITH RESPECT TO ONE OR MORE HOSPITAL OR OTHER MINISTRIES OPERATED BY THE CORPORATION. N. UNRELATED BUSINESS ACTIVITY. APPROVE THE ACQUISITION OR DEVELOPMENT OF ANY BUSINESS OR ACTIVITY UNRELATED TO THE PROVISION OF HEALTH CARE SERVICES. O. NEW AFFILIATES. APPROVE THE CREATION OF ANY NEW AFFILIATE TO BE OWNED OR CONTROLLED BY THE CORPORATION. P. CONTRIBUTIONS TO MEMBER. DIRECT AND APPROVE ANY CONTRIBUTIONS, DONATIONS OR OTHER ASSET TRANSFERS WITHOUT CONSIDERATION TO THE MEMBER OR ANY AFFILIATE, IN FURTHERANCE OF THE MISSION AND VALUES. Q. CONTRIBUTION ACCEPTANCE. APPROVE ACCEPTANCE OF A CONTRIBUTION THAT IMPOSES A MATERIAL OBLIGATION ON THE CORPORATION, IF APPROVED BY THE CORPORATION'S APPLICABLE FOUNDATION OR FUNDRAISING AFFILIATE AS CONSISTENT WITH THE CORPORATION'S AND SYSTEM'S MISSION AND GOALS. R. BANKING. DEFINE THE CRITERIA FOR THE SELECTION OF BANKS AND OTHER FINANCIAL DEPOSITORIES TO BE USED BY THE CORPORATION, AND AUTHORIZE THE PROCESS BY WHICH SIGNATORIES ON ALL BANK AND SIMILAR ACCOUNTS OF THE CORPORATION ARE APPROVED. S. AUDITORS. SELECT INDEPENDENT AUDITORS FOR THE CORPORATION, IN CONNECTION WITH THE CONSOLIDATED AUDIT OF ALL SYSTEM ENTITIES. T. REGISTERED AGENT. APPROVE OR CHANGE THE CORPORATION'S REGISTERED AGENT OR REGISTERED OFFICE, AS APPROPRIATE FROM TIME TO TIME. U. TAX-EXEMPTION. APPROVE ANY VOLUNTARY CHANGE TO THE CORPORATION'S STATUS OF AN ORGANIZATION EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AS AMENDED FROM TIME TO TIME. U. TAX-EXEMPTION. APPROVE ANY VOLUNTARY CHANGE TO THE CORPORATION'S STATUS OF AN ORGANIZATION EXEMPT FROM TAXATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, AS AMENDED FROM TIME TO TIME. FORM 990, PART VI, QUESTION 11B FORM 990 REVIEW PROCESS THE CORPORATION PROVIDES A COMPLETE COPY OF ITS FORM 990 TO ALL MEMBERS OF THE GOVERNING BODY OF ITS ULTIMATE PARENT CORPORATION, PRESENCE HEALTH NETWORK, FOR REVIEW PRIOR TO FILING WITH THE IRS. THE BOARD OF DIRECTORS OF THE CORPORATION AND OTHER SUBSIDIARY ORGANIZATIONS WITHIN THE PRESENCE HEALTH SYSTEM ARE INTERNAL LIMITED FIDUCIARY BOARDS WHICH DO NOT RECEIVE A COMPLETED COPY OF THE FORM 990 PRIOR TO FILING. AS A RESULT, THE CORPORATION ANSWERS "NO", TO FORM 990, PART VI, LINE 11A. FORM 990, PART VI, LINE 12C PROCEDURES FOR ADDRESSING CONFLICTS OF INTEREST THE PURPOSE OF THE CONFLICT OF INTEREST POLICY IS TO PROTECT THE INTERESTS OF PRESENCE HEALTH NETWORK AND ALL OF ITS AFFILIATED MINISTRIES (COLLECTIVELY "PRESENCE HEALTH") WHEN IT IS CONTEMPLATING ENTERING INTO A TRANSACTION OR ARRANGEMENT THAT MIGHT BENEFIT THE PRIVATE INTEREST OF ANY DIRECTOR, TRUSTEE, OFFICER, CORPORATE MEMBER APPOINTEE, MEMBER OF A COMMITTEE WITH BOARD-DELEGATED POWERS, SENIOR LEADERS, AND OTHERS IN A RECENT POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER PRESENCE HEALTH ("INTERESTED PERSONS"), AND CLARIFY THE STANDARDS OF CONDUCT, DUTIES AND OBLIGATIONS OF INTERESTED PERSONS IN THE CONTEXT OF POTENTIAL CONFLICTS OF INTEREST BY PROVIDING A METHOD FOR DISCLOSING AND RESOLVING SUCH POTENTIAL CONFLICTS. NO PRESENCE HEALTH ENTITY WILL ENGAGE IN ANY CONTRACT, TRANSACTION OR ARRANGEMENT INVOLVING A CONFLICT OF INTEREST UNLESS DISINTERESTED MEMBERS OF THE APPLICABLE BOARD OF DIRECTORS OR OTHER GOVERNING BODY DETERMINE BY A MAJORITY VOTE THAT APPROPRIATE SAFEGUARDS TO PROTECT THE CHARITABLE MISSION OF PRESENCE HEALTH HAVE BEEN IMPLEMENTED. TO FACILITATE THIS POLICY, ALL INTERESTED PERSONS HAVE A CONTINUING OBLIGATION TO PROMPTLY DISCLOSE THE EXISTENCE AND NATURE OF ANY ACTUAL, APPARENT, OR POTENTIAL CONFLICTS OF INTEREST HE/SHE MAY HAVE. ALL DISCLOSURES MUST BE PROVIDED TO THE SYSTEM COMPLIANCE OFFICER AND GENERAL COUNSEL IN A WRITTEN DESCRIPTION OF THE MATERIAL FACTS. DISCLOSURE SHALL BE ON A CONFLICTS OF INTEREST QUESTIONNAIRE OR SIMILAR FORMAT AS DESCRIBED IN THE CONFLICTS OF INTEREST POLICY. ALL INTERESTED PERSONS SHALL ALSO COMPLETE A QUESTIONNAIRE BASED ON THE ASSUMPTION OF THE BOARD (OR OTHER RELEVANT) POSITION, AND THEREAFTER ON AT LEAST AN ANNUAL BASIS OR WHEN AN ACTUAL, APPARENT, OR POTENTIAL CONFLICT ARISES. AT ANY TIME THAT AN ACTUAL, APPARENT OR A POTENTIAL CONFLICT OF INTEREST IS IDENTIFIED TO THE CORPORATIONS BOARD OF DIRECTORS, WHETHER THROUGH THE VOLUNTARY SUBMISSION OF A DISCLOSURE STATEMENT BY AN INTERESTED PERSON, OR BY A DISCLOSURE BY A PERSON OTHER THAN THE SUBJECT INTERESTED PERSON, THE CORPORATIONS BOARD OR APPLICABLE COMMITTEE SHALL REVIEW THE MATTER AND DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. ONCE ALL NECESSARY INFORMATION HAS BEEN OBTAINED, ONLY DISINTERESTED DIRECTORS/COMMITTEE MEMBERS VOTE TO DETERMINE WHETHER A CONFLICT OF INTEREST EXISTS. IF A CONFLICT IS FOUND TO EXIST THE INTERESTED PERSON WILL GENERALLY BE REQUIRED TO RECUSE HIM OR HERSELF DURING ANY MEETING IN WHICH THE BOARD OF DIRECTORS OR APPLICABLE COMMITTEE CONDUCTS THE EVALUATION OF THE SUBJECT TRANSACTION, EXCEPT TO ANSWER QUESTIONS AS MAY BE NECESSARY. TO ENSURE THAT THE PRESENCE HEALTH OPERATES IN A MANNER CONSISTENT WITH ITS CHARITABLE PURPOSES AND THAT IT DOES NOT ENGAGE IN ACTIVITIES THAT COULD JEOPARDIZE ITS EXEMPT STATUS, TRANSACTIONS INVOLVING INTERESTED PERSONS ARE ONLY APPROVED IF, AFTER EXERCISING REASONABLE DUE DILIGENCE, THE BOARD DETERMINES THEY ARE FAIR AND REASONABLE, TAKING INTO ACCOUNT FACTORS SUCH AS WHETHER PRESENCE HEALTH COULD OBTAIN A MORE ADVANTAGEOUS CONTRACT, TRANSACTION OR ARRANGEMENT. HOWEVER, LENDING MONEY OR GUARANTYING AN OBLIGATION OF A DIRECTOR, OFFICER, OR EMPLOYEE OF PRESENCE HEALTH (EXCLUSIVE OF CUSTOMARY INSURANCE COVERAGE FOR ACTS DONE IN CONNECTION WITH SUCH INDIVIDUALS SERVICE TO OR EMPLOYMENT BY PRESENCE HEALTH) IS STRICTLY PROHIBITED. FORM 990 PART VI, QUESTIONS 15A AND 15B, AND PART V, QUESTION 2A COMPENSATION AND APPROVAL PROCESS FOR OFFICERS AND KEY EMPLOYEES COMPENSATION FOR THE CORPORATIONS CEO AND OTHER OFFICERS OR KEY EMPLOYEES IS DETERMINED IN ACCORDANCE WITH WRITTEN POLICIES AND PROCEDURES ADOPTED BY THE BOARD OF DIRECTORS OF THE SYSTEMS PARENT, PRESENCE HEALTH NETWORK ("PHN"), AND APPLIED BY THE HUMAN RESOURCES COMMITTEE OF THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS USES MARKET DATA COMPILED BY AN INDEPENDENT COMPENSATION CONSULTANT TO ESTABLISH BASE SALARIES AND TOTAL CASH COMPENSATION OPPORTUNITIES. THE HUMAN RESOURCES COMMITTEE MONITORS EXECUTIVE TOTAL COMPENSATION BY APPROVING ALL COMPONENTS OF EXECUTIVE TOTAL COMPENSATION, AND ANNUALLY REVIEWING AND APPROVING COMPENSATION CHANGES FOR EACH EXECUTIVE. THE CORPORATION ANSWERS "YES" TO FORM 990, PART VI, QUESTION 15A AND 15B AS PHNS BOARD OF DIRECTORS HAS ULTIMATE CONTROL OVER ALL SUBSIDIARY ORGANIZATIONS. FORM 990, PART VI, LINE 19 DOCUMENT AVAILABILITY THE CORPORATIONS ARTICLES OF INCORPORATION ARE ON FILE WITH THE STATE OF ILLINOIS. THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF THE CORPORATION, TOGETHER WITH ITS AFFILIATES, ARE AVAILABLE FROM THE NATIONAL DISSEMINATION AGENT AS REQUIRED BY PRESENCE HEALTH SYSTEMS BOND DOCUMENTS. CONFLICTS OF INTEREST POLICIES ARE NOT MADE AVAILABLE TO THE PUBLIC, HOWEVER A SUMMARY OF THE CURRENT POLICY IS ANNUALLY INCLUDED IN SCHEDULE O OF THE CORPORATIONS FORM 990. FORM 990, PART VII, SECTIONS A & B STATUTORY EMPLOYER PRESENCE CARE TRANSFORMATION CORPORATION ("PCTC") (FEIN 36-3366652) ACTS AS THE AGENT FOR THE CORPORATION. CASH IS SWEPT FROM THE CORPORATION ON A DAILY BASIS TO PCTC AND PCTC ISSUES ALL PAYROLL AND ACCOUNTS PAYABLE CHECKS ON BEHALF OF AND AS AGENT FOR THE CORPORATION AND THE APPROPRIATE ACCOUNTING ENTRIES ARE RECORDED. FORM 990, PART XII, LINE 2B AUDITED FINANCIAL STATEMENTS AN INDEPENDENT ACCOUNTANT ANNUALLY AUDITS THE CONSOLIDATED FINANCIAL STATEMENTS OF PRESENCE HEALTH NETWORK AND ITS AFFILIATES. THE AUDIT OPINION IS ISSUED ON THE CONSOLIDATED FINANCIAL STATEMENTS AND EACH AFFILIATE IS NOT SEPARATELY AUDITED. PART XII, LINES 3A & 3B PRESENCE HEALTH NETWORK COMPLETES A CONSOLIDATED A-133 AUDIT WHICH INCLUDES ALL ENTITIES FOR WHICH IT IS A PARENT ORGANIZATION WHETHER THEY EXPENDED FEDERAL FUNDS DURING THE YEAR OR NOT. Presence Health Network 200 South Wacker Drive Chicago IL 60606 361649520 Parent Corp IL 501(C)(3) 12c III FI na false Medicare Value Partners 100 North River Road Des Plaines IL 60016 363495969 Health Care IL 501(C)(3) 10 PHPS true Mount Loretto Nursing Home Inc 302 Swart Hill Road Amsterdam NY 12010 141363014 Health Care NY 501(C)(3) 3 RM New York true Presence Health Partners Services 2380 E Dempster Ave STE 236 Des Plaines IL 60016 362644178 Health Care IL 501(C)(3) 12b PHN false Presence Care Home 18927 Hickory Creek Drive 300 Mokena IL 60448 460483587 Health Care IL 501(C)(3) 10 PLC true Presence Care Transformation Corporation 1000 Remington BLVD STE 100 Bolingbrook IL 60440 363366652 Mgmt Support IL 501(C)(3) 12c III FI PHN false Presence Home Care 18927 Hickory Creek Drive 300 Mokena IL 60448 460483581 Health Care IL 501(C)(3) 10 PLC true PRESENCE CENTRAL AND SUBURBAN HOSP 1000 Remington BLVD STE 100 Bolingbrook IL 60440 364195126 Health Care IL 501(C)(3) 3 PCTC true Laverna Terrace Housing Corporation 18927 Hickory Creek Drive 300 Mokena IL 60448 363438977 Senior Living IL 501(C)(3) 10 PLC true Presence Life Connections 18927 Hickory Creek DR 300 Mokena IL 60448 371127787 Health Care IL 501(C)(3) 10 PCTC true Presence Behavioral Health 1820 South 25th Avenue Broadview IL 60155 362709982 Health Care IL 501(C)(3) 3 PCTC true Presence Ambulatory Services 100 North River Road Des Plaines IL 60016 364286236 Health Care IL 501(C)(3) 10 PCTC true PRESENCE HEALTH FDN BOARD OF TRUSTEES 200 South Wacker Drive Chicago IL 60606 363330929 Fundraising IL 501(C)(3) 7 PHN false Presence Chicago Hospitals Network 200 South Wacker Drive Chicago IL 60606 362235165 Health Care IL 501(C)(3) 3 PCTC true Resurrection Nursing Home Inc 90 North Main Street Castleton NY 12033 141348691 Health Care NY 501(C)(3) 3 RM New York true Presence Senior Services - Chicagoland 100 North River Road Des Plaines IL 60016 237061646 Health Care IL 501(C)(3) 10 PCTC true ARTHUR MERKLE - CLARA KNIPPRATH NURSING 1190 E 2900 N Road Clifton IL 60927 362841358 Health Care IL 501(C)(3) 10 PLC true Rainbow Hospice and Palliative Care 1550 Bishop Court Mount Prospect IL 60056 363296367 Health Care IL 501(C)(3) 10 PLC true Resurrection University 1431 N Claremont Chicago IL 60622 362182170 Education IL 501(C)(3) 2 PHN false Bel Harlem Surg Ctr 3101 North Harlem Chicago IL 60634 412237162 Medical Service IL PHS RELATED 511311 751162 false 0 false 0.53130 RH Sleep Ctr - NW 665 West North Ave 500 Lombard IL 60148 261519627 Medical Service IL PHS RELATED 24957 161103 false 0 false 0.55050 RH Sleep Ctr - Evan 665 West North Ave 500 Lombard IL 60148 261519556 Medical Service IL PHS RELATED -2787 116929 false 0 false 0.59640 RH Sleep Ctr - LP 665 West North Ave 500 Lombard IL 60148 261519667 Medical Service IL PHS RELATED 9227 142377 false 0 false 0.53860 RH Sleep Ctr - RF 665 West North Ave 500 Lombard IL 60148 262189763 Medical Service IL PHS RELATED -116268 0 false 0 false 0.56920 Alverno Clinic Lab 2434 Interstate Plaza Drive Hammond IN 46324 203240648 Medical Service IN PHS RELATED 232718 15149650 false 0 false 0.66670 Prof Clinic Lab LLC 113 E 4th St Michigan City IN 46360 300711211 Medical Service IN ACL LLC RELATED -50 0 false 0 false 0.64290 L Gilbraith Insurance SPC LTD 68 W Bay Road PO Box 1109 Grand Cayman CJ 000000000 Insurance CJ PHN Foreign Company false Provena Health Assurance SPC 23 Lime Tree Bay Ave PO Box 1051 Grand Cayman CJ 980420054 Insurance CJ PCTC Foreign Company true Presence Properties Inc 100 North River Road Des Plaines IL 60016 363520630 Medical IL PV C Corp true Presence Service Corporation 2380 E Dempster Street Des Plaines IL 60016 364314354 Medical IL PCTC C Corp true Presence Ventures Inc 100 North River Road Des Plaines IL 60016 371168085 Medical IL PCTC C Corp true Resurrection Medical Center Auxiliary 7435 West Talcott Avenue Chicago IL 60631 366109825 Fundraising IL PCHN C Corp true Resurrection Ministries of New York 90 North Main Street Castleton NY 12033 141720818 Parent Corp NY PCHN C Corp true Presence Health Care Preferred 100 North River Road Des Plaines IL 60016 363974620 MGD Care Contract IL PCHN C Corp true false false false false false false false false false false false false true false false true false false true PRESENCE CARE TRANSFORMATION CORPORATION m 7644843 COST ALLOCATION PRESENCE CARE TRANSFORMATION CORPORATION p 105115131 COST PRESENCE VENTURES INC S 4156705 FMV SCHEDULE R, PART V, LINE 2 REIMBURSEMENTS FOR SHARED SERVICES PRESENCE CARE TRANSFORMATION CORPORATION (FEIN: 36-3366652) PAYS ALL OF THE COMPENSATION AND ACCOUNTS PAYABLE FOR ALL ENTITIES UNDER THE PRESENCE HEALTH SYSTEM AS THE DESIGNATED PAYMENT AGENT FOR SUCH ENTITIES. CASH IS DEPOSITED INTO AN ACCOUNT BY PRESENCE HEALTH ENTITIES AND SWEPT ON A MONTHLY BASIS TO REIMBURSE PRESENCE CARE TRANSFORMATION CORPORATION FOR THESE EXPENSES AT COST. THE AMOUNTS REPORTED ON PART V OF SCHEDULE R REFLECT THE TOTAL CASH TRANSFERS TO/FROM PRESENCE CARE TRANSFORMATION.