2016-08-15T06:43:47-05:00 2015-09-30 135381590 BDO USA LLP 200 PORTLAND STREET BOSTON MA 02114 990 2014-10-01 042323457 LAHEY CLINIC FOUNDATION INC LAHE 7817445100 41 MALL ROAD BURLINGTON MA 01805 HOWARD R GRANT JD MD PRESIDENT/CEO 7817445100 2016-08-09 1 JEFFREY T ROGERS P00744592 6177427788 2014 2016-09-27 15:27:22Z HOWARD R GRANT JD MD 41 MALL ROAD BURLINGTON MA 01805 43968631 0 X WWW.LAHEY.ORG X 1963 MA LAHEY CLINIC FOUNDATION, INC. SUPPORTS LAHEY CLINIC HOSPITAL, INC.,AND LAHEY CLINIC, INC. LAHEY HOSPITAL & MEDICAL CENTER, IN ASSOCIATION WITH THE TUFTS UNIVERSITY SCHOOL OF MEDICINE, PROVIDES SUPERIOR HEALTH CARE LEADING TO THE BEST POSSIBLE OUTCOMES FOR EVERY PATIENT. AS ONE OF THE WORLD'S PREMIER HEALTH CARE ORGANIZATIONS, LAHEY HOSPITAL & MEDICAL CENTER AIMS TO EXCEED PATIENT'S HIGH EXPECTATIONS FOR SERVICE AND ADVANCE MEDICINE THROUGH RESEARCH AND THE EDUCATION OF TOMORROW'S HEALTH CARE LEADERS. IN ADDITION, LAHEY HOSPITAL & MEDICAL CENTER IS COMMITTED TO IMPROVING THE HEALTH AND QUALITY OF LIFE OF COMMUNITY RESIDENTS BY SUPPORTING LOCAL ORGANIZATIONS ALIGNED WITH THIS MISSION. 22 12 723 12 -9355 -9355 4862987 5188265 0 0 5572274 38780366 32402 0 10467663 43968631 0 0 0 0 5465581 0 391278 0 0 3056524 0 8913383 0 1554280 43968631 1118347920 1187008303 726481775 790513613 391866145 396494690 X SEE SCHEDULE O 0 0 0 0 LAHEY CLINIC FOUNDATION, INC., (FOUNDATION) IS THE SOLE CORPORATE MEMBER OF LAHEY CLINIC HOSPITAL, INC. (HOSPITAL), AND LAHEY CLINIC, INC. (CLINIC). THE FOUNDATION HOLDS CAPITAL ASSETS, INVESTMENTS, DEBT, AND INFRASTRUCTURE COSTS TO PROVIDE ASSISTANCE TO THE HOSPITAL AND CLINIC FOR THE PROVISION OF PATIENT HEALTH CARE SERVICES, PATIENT EDUCATION, COMMUNITY BENEFITS AND COMMUNITY SERVICE PROGRAMS, CONTINUING EDUCATION OF HEALTH CARE PROVIDERS, AS WELL AS HEALTH CARE RESEARCH ACTIVITIES. 1 1 0 0 0 0 0 1 0 1 1 1 0 1 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 1 1 0 0 1 208 0 1 723 1 1 1 1 CA 0 0 0 0 0 0 0 0 X 22 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 MA X X TIMOTHY O'CONNOR 7817445100 41 MALL ROAD BURLINGTON MA 01805 X HOWARD R GRANT JD MD TRUSTEE/OFFICER/PRESIDENT & CEO 50.00 1.00 X X 1106889 905636 278701 JOHN A LIBERTINO MD TRUSTEE/PHYSICIAN/DEPARTMENT CHAIR 1.00 40.00 X 0 851691 21468 RICHARD W NESTO MD TRUSTEE/CMO LAHEY HEALTH/PHYSICIAN 40.00 1.00 X 597095 243884 93878 ROGER L JENKINS MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 626415 31483 RICHARD S D'AGOSTINO MD TRUSTEE/PHYSICIAN/DEPARTMENT CHAIR 1.00 40.00 X 0 639523 30662 ANDREW G VILLANUEVA MD TRUSTEE/CMO LHMC/PHYSICIAN 1.00 40.00 X 0 408781 11190 BETSEY CRAWFORD MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 221260 1181 ARTHUR P MOURTZINOS MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 522864 26873 REBECCA C YANG MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 383299 32166 ERIC M BAILEY TRUSTEE 1.00 X 0 0 0 CRAIG R BENSON TRUSTEE 1.00 X 0 0 0 ANN MARIE CONNOLLY TRUSTEE CHAIR 2.00 X 0 0 0 JAMES D IRVING TRUSTEE 1.00 X 0 0 0 J WILLIAM PODUSKA TRUSTEE 1.00 X 0 0 0 WINDLE B PRIEM TRUSTEE 1.00 X 0 0 0 STUART REESE TRUSTEE 1.00 X 0 0 0 CAROLYN AIN TRUSTEE 1.00 X 0 0 0 JANE C EDMUNDS TRUSTEE 1.00 X 0 0 0 DEBORAH MCKENNA TRUSTEE 1.00 X 0 0 0 DAVID WAJSGRAS TRUSTEE 1.00 X 0 0 0 EDWARD ESKANDARIAN TRUSTEE 1.00 X 0 0 0 TIMOTHY O'CONNOR OFFICER/EVP CFO & TREASURER 50.00 1.00 X 522673 224003 148876 DAVID G SPACKMAN OFFICER/SVP GOV AFFAIRS & GEN COUNSEL 50.00 1.00 X 319908 130667 51385 MARYELLEN LEAR OFFICER/LEGAL SUPPORT SERV. 1.00 40.00 X 0 99883 1785 PETER LLOYD OFFICER/VP CORPORATE FINANCE 40.00 1.00 X 253958 103729 21482 DEREK C BELLIN MD SVP INSTITUTIONAL ADV & CMO/PHYSICIAN 40.00 X 317468 105822 35324 LISA M COLOMBO SVP CHIEF NURSING OFFICER 40.00 X 17929 340631 39955 JOSEPH C CORKERY MD CHIEF INST. ADV. OFFICER 40.00 X 504922 0 22655 JOANNE M CONROY EVP LHS & CEO LHMC 40.00 X 372804 0 39938 GREGORY A BAZYLEWICZ MD SVP CHIEF NETWRK DVLP OFFC 40.00 1.00 X 406322 238633 52148 ELIZABETH P CONRAD SVP CHIEF HR OFFICER 40.00 1.00 X 258179 115994 55551 BRUCE A METZ SVP CHIEF INFO OFFICER 1.00 40.00 X 0 411703 31863 MICHAEL JELLNICK EVP LHS & CEO LHS COMM NETWRK 40.00 1.00 X 100452 245934 45448 TRACY A GALVIN ACNO CRITICAL CARE CDU 1.00 40.00 X 0 218921 9747 PHILLIPS AXTEN VP CCO & ASSOC GENL COUNSEL 40.00 1.00 X 250423 112509 2670 KEVIN H HOPPE VICE PRESIDENT LAHEY ACU 40.00 X 331878 0 46659 ALLAN S DANIS VP CONTRACTING 40.00 X 341514 0 1403 KIMBERLY A PERRYMAN CNO BEVERLY HOSPITAL 40.00 X 311689 0 48955 THOMAS J CAHILL JR VP PHILANTHROPY 40.00 X 311529 0 32027 6325632 7151782 1215473 16 0 1 0 DELOITTE CONSULTING LLP PO BOX 7247-6447 PHILADELPHIA PA 19170 CONSULTING 8435247 AMEGY BANK NATIONAL ASSOCIATION 4400 POST OAK PARKWAY HOUSTON TX 77210 FINANCIAL SERVICE 5924285 EPIC SYSTEMS CORPORATION PO BOX 88314 MILWAUKEE WI 53288 CONSULTING 3509481 NRS GLOBAL PARTNERS 2300 CROWN COLONY QUINCY MA 02169 CONSULTING 915432 BRAND UNION CO INC PO BOX 7247-7196 PHILADELPHIA PA 19170 CONSULTING 513278 61 5188265 248296 5188265 4110172 -9355 4119527 33104501 1565693 0 0 33104501 1565693 34670194 34670194 43968631 0 -9355 38789721 0 0 0 0 2492075 35524110 36750 708810 4584069 1049621 1191971970 638831501 451404393 553140469 155013769 206249927 247017163 99519501 257799701 290815865 1118347920 1187008303 27660243 20111982 11760 11760 276711096 259026861 1500934 1028802 30000000 420597742 480334208 726481775 790513613 X 285524850 299041115 45426621 36035948 60914674 61417627 391866145 396494690 1118347920 1187008303 X 43968631 -36202310 -3137776 X 0 1 X 1 0 X 2768044 3285682 4626570 4862987 5188265 20731548 2768044 3285682 4626570 4862987 5188265 20731548 20731548 3684596 2873563 3479683 5008298 4110172 19156312 8134 7070 153169 32402 200775 40088635 0.51710 0.51380 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 325051422 1108268 -4193908 -15647580 -548774 305769428 295405414 10196514 20788272 800000 538778 325051422 284504199 688023 16904514 6048789 642533 295405414 266009728 946986 25996140 7824838 623817 284504199 275817593 1849984 -726521 10133190 798138 266009728 0.79000 0.21000 0 0 15393209 15393209 421881789 188553065 233328724 9856146 8080837 1775309 730659213 429833935 300825278 14181613 12363664 1817949 553140469 OTHER INVESTMENTS 99519501 F 99519501 DEFERRED DEBT ISSUE COSTS, NET 2999607 INVESTMENT - LAHEY CLINIC INSURANCE 120000 INVESTMENT - JOINT VENTURE - FELLSWAY DEVELOPMENT 6938520 OTHER RECEIVABLES - EMPLOYEES 378597 ASSETS HELD UNDER SPLIT INTEREST AGREEMENTS 9736717 BENEFICIAL INTEREST IN PERPETUAL AND LEAD TRUSTS 30890965 INVESTMENTS - OTHER 4510547 INTERCOMPANY RECEIVABLES 235240912 290815865 INTERCOMPANY PAYABLES 473716681 SPLIT INTEREST LIABILITY 5566282 CONDITIONAL ASSET RETIREMENT OBLIGATION 1051245 480334208 13516265 -36202310 10938209 -25264101 38780366 5188265 5188265 43968631 0 0 0 0 0 PART III, LINE 4: THE ORGANIZATION MAINTAINS COLLECTIONS OF ART FOR DISPLAY TO IMPROVE THE PATIENT CARE ENVIRONMENT. PART V, LINE 4: THE ORGANIZATION'S ENDOWMENT FUNDS SUBSIDIZE THE COSTS OF PROVIDING SUPERIOR HEALTH CARE LEADING TO THE BEST POSSIBLE OUTCOME FOR EVERY PATIENT. THE COSTS ARE FOR PATIENT CARE, PATIENT EDUCATION, CONTINUING EDUCATION OF HEALTH CARE PROVIDERS, RESEARCH, AND CAPITAL EXPENDITURES. PART XI, LINE 2D - OTHER ADJUSTMENTS: UNRESTRICTED CONTRIBUTIONS 2,674,593. ASSETS RELEASED FROM TIME RESTRICTIONS 234,608. ASSETS RELEASED FROM RESTRICTIONS 8,293,255. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -264,247. PART XI, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTIONS, GIFTS, AND GRANTS 5,188,265. NORTH AMERICA 0 0 FUNDRAISING 5180454 CENTRAL AMERICA/CARIBBEAN 0 0 INVESTMENTS 21990598 0 0 0 0 0 0 27171052 0 27171052 0 0 0 0 0 0 PART I, LINE 3: LAHEY CLINIC FOUNDATION, INC. DOES NOT SEPARATELY TRACK EXPENDITURES FOR FUNDRAISING OUTSIDE THE UNITED STATES IN THE REGION. X X X X X 0 1 0 0 0 0 0 1 0 HOWARD R GRANT JD MD TRUSTEE/OFFICER/PRESIDENT & CEO 872864 714161 211750 173250 22275 18225 136623 111782 16663 13633 1260175 1031051 0 0 JOHN A LIBERTINO MD TRUSTEE/PHYSICIAN/DEPARTMENT CHAIR 0 702976 0 120715 0 28000 0 0 0 21468 0 873159 0 0 RICHARD W NESTO MD TRUSTEE/CMO LAHEY HEALTH/PHYSICIAN 482891 197237 94324 38527 19880 8120 47925 19575 18728 7650 663748 271109 0 0 ROGER L JENKINS MD TRUSTEE/PHYSICIAN 0 533213 0 50202 0 43000 0 0 0 31483 0 657898 0 0 RICHARD S D'AGOSTINO MD TRUSTEE/PHYSICIAN/DEPARTMENT CHAIR 0 495809 0 93214 0 50500 0 0 0 30662 0 670185 0 0 ANDREW G VILLANUEVA MD TRUSTEE/CMO LHMC/PHYSICIAN 0 312087 0 56194 0 40500 0 0 0 11190 0 419971 0 0 BETSEY CRAWFORD MD TRUSTEE/PHYSICIAN 0 173006 0 25254 0 23000 0 0 0 1181 0 222441 0 0 ARTHUR P MOURTZINOS MD TRUSTEE/PHYSICIAN 0 456204 0 39160 0 27500 0 0 0 26873 0 549737 0 0 REBECCA C YANG MD TRUSTEE/PHYSICIAN 0 326602 0 39197 0 17500 0 0 0 32166 0 415465 0 0 TIMOTHY O'CONNOR OFFICER/EVP CFO & TREASURER 413389 177167 86184 36936 23100 9900 85120 36480 19093 8183 626886 268666 0 0 DAVID G SPACKMAN OFFICER/SVP GOV AFFAIRS & GEN COUNSE 261617 106858 45454 18566 12837 5243 20168 8237 16316 6664 356392 145568 0 0 PETER LLOYD OFFICER/VP CORPORATE FINANCE 196909 80427 33619 13732 23430 9570 0 0 15252 6230 269210 109959 0 0 DEREK C BELLIN MD SVP INSTITUTIONAL ADV & CMO/PHYSICIA 129537 43179 53983 17994 133948 44649 18059 6020 8434 2811 343961 114653 0 0 LISA M COLOMBO SVP CHIEF NURSING OFFICER 16257 308877 944 17927 728 13827 1089 20686 909 17271 19927 378588 0 0 JOSEPH C CORKERY MD CHIEF INST. ADV. OFFICER 362044 0 82378 0 60500 0 0 0 22655 0 527577 0 0 0 JOANNE M CONROY EVP LHS & CEO LHMC 360292 0 0 0 12512 0 28405 0 11533 0 412742 0 0 0 GREGORY A BAZYLEWICZ MD SVP CHIEF NETWRK DVLP OFFC 324030 190303 44177 25945 38115 22385 19155 11250 13698 8045 439175 257928 0 0 ELIZABETH P CONRAD SVP CHIEF HR OFFICER 221712 99610 20712 9305 15755 7079 19599 8806 18731 8415 296509 133215 0 0 BRUCE A METZ SVP CHIEF INFO OFFICER 0 315925 0 55278 0 40500 0 28405 0 3458 0 443566 0 0 MICHAEL JELLNICK EVP LHS & CEO LHS COMM NETWRK 100089 245046 0 0 363 888 7455 18252 5725 14016 113632 278202 0 0 TRACY A GALVIN ACNO CRITICAL CARE CDU 0 187716 0 25448 0 5757 0 0 0 9747 0 228668 0 0 PHILLIPS AXTEN VP CCO & ASSOC GENL COUNSEL 216989 97488 33434 15021 0 0 0 0 1842 828 252265 113337 0 0 KEVIN H HOPPE VICE PRESIDENT LAHEY ACU 298262 0 20000 0 13616 0 18460 0 28199 0 378537 0 0 0 ALLAN S DANIS VP CONTRACTING 256768 0 44246 0 40500 0 0 0 1403 0 342917 0 0 0 KIMBERLY A PERRYMAN CNO BEVERLY HOSPITAL 243007 0 45682 0 23000 0 21775 0 27180 0 360644 0 0 0 THOMAS J CAHILL JR VP PHILANTHROPY 273223 0 25775 0 12531 0 28405 0 3622 0 343556 0 0 0 PART I, LINE 3 THE ITEMS CHECKED IN SCHEDULE J, PART I, LINE 1A, VIA AN EXECUTED EMPLOYMENT AGREEMENT, WERE NEGOTIATED AND AGREED TO BY BOTH PARTIES AND THEIR REPRESENTATIVES. PART I, LINE 4B THE ORGANIZATION MAINTAINS A 457F NON-QUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN PHYSICIANS, EXECUTIVE MANAGEMENT AND DEFINED MEDICAL STAFF. THE PLAN OFFERS PARTICIPATING EMPLOYEES AN ANNUAL DEFERRAL OF COMPENSATION IN ADDITION TO THEIR SALARIES. FOR THE CURRENT PERIOD, THE FOLLOWING INDVIDUALS PARTICIPATED IN THE 457F NON-QUALIFIED DEFERRED COMPENSATION PLAN. HOWARD R. GRANT, JD, MD $220,000 TIMOTHY O'CONNOR $121,600 RICHARD W. NESTO $67,500 PART I, LINE 7 THE NON-FIXED PAYMENT BONUSES REPORTED IN SCHEDULE J, PART II, COLUMN B(II) ARE DETERMINED BY AN INDEPENDENT COMPENSATION COMMITTEE, WHICH INCLUDES A GROUP OF TRUSTEES. IN A SUBJECTIVE MANNER, THE COMMITTEE TAKES INTO ACCOUNT THE ACHIEVEMENTS OF BOTH THE ORGANIZATION AND THE INDIVIDUAL TO DETERMINE AN APPROPRIATE AMOUNT OF SUCH BONUSES. A 2005 MHEFA SERIES C BONDS 042456011 57586CKW4 2005-07-14 161296967 REFUNDING AND DEFEASANCE OF EXISTING LONG-TERM DEBT AND A NEW PARKING GARAGE 0 0 0 B 2007 MHEFA SERIES D BONDS 042456011 57586CE68 2007-08-17 48655976 EXPANSION, RENOVATION, FURNISHING AND EQUIPPING OF AN AMBULATORY CARE CENTER 0 0 0 C 2013 MDFA SERIES E BONDS 134994650 2013-03-07 130000000 CONSTRUCTION/EQUIPPING OF A POWER PLANT AND ACQUISITION OF CAPITAL ASSETS 0 0 0 A 51489557 163666057 1259007 3594356 51328227 107484467 2006 1 0 1 1 B -39475 51388809 870765 50518044 2009 0 0 1 1 C 29475000 130050301 500000 129550301 0 0 1 1 A 0 1 1 1 1 1 0.00940 0.00240 0.01180 0 0 0 B 0 0 0 0 0 0 0 C 0 0 0 0 0 0 0 A 0 0 0 1 0 0 1 XL ASSET FUND CO I 1.830000000000 1 0 0 B 0 0 0 1 0 0 1 AIG MATCH FUND CORP 1.000000000000 1 0 0 C 0 0 0 1 0 0 0 0 0 A 1 B 1 C 1 BERNARD GORDON FORMER TRUSTEE ASSET ACQUISITION X 5000000 1028802 0 1 1 1028802 X 16 248296 HIGH-LOW AVERAGE 0 1 0 FORM 990, PART IV, LINE 11(F) AND SCHEDULE D, PART X, LINE 2 THE ORGANIZATION'S FINANCIAL STATEMENTS DID NOT REPORT A LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48. FORM 990, PART IV, LINE 4 LAHEY HEALTH SYSTEM, INC. IS IN CONTACT WITH FEDERAL AND STATE LEGISLATORS REGARDING HEALTH CARE REFORM ISSUES THAT WOULD POTENTIALLY HAVE AN IMPACT ON THE ORGANIZATION AND ITS RELATED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 6 THE LAHEY HOSPITAL AND MEDICAL CENTER CONSISTS OF THREE NON-PROFIT CORPORATIONS, LAHEY CLINIC HOSPITAL, INC. (EIN # 04-2704686), LAHEY CLINIC, INC. (EIN # 04-2704683), LAHEY CLINIC FOUNDATION, INC. (EIN # 04-2323457) ALL THREE OF THE CORPORATIONS ARE TAX EXEMPT UNDER INTERNAL REVENUE CODE SECTION 501(C) (3). LAHEY CLINIC FOUNDATION, INC. IS THE SOLE CORPORATE MEMBER OF EACH OF THE OTHER TWO CORPORATIONS. THE BOARD OF TRUSTEES (GOVERNING BODY) AND CORPORATE OFFICERS OF THE THREE CORPORATIONS CONSIST OF THE EXACT SAME MEMBERS. EFFECTIVE MAY 1, 2012, LAHEY CLINIC FOUNDATION, INC. AND NORTHEAST HEALTH SYSTEM, INC. COMPLETED AN AFFILIATION WITH EACH OTHER AND ESTABLISHED A NEW ORGANIZATION, LAHEY HEALTH SYSTEM, INC. ("LHS"), TO SERVE AS THE PARENT OF EACH AND THE HEALTH SYSTEM. ON JULY 1, 2014, LHS AND WINCHESTER HEALTHCARE MANAGEMENT, INC ENTERED INTO AN AFFILIATION. THE SOLE CORPORATE MEMBER OF THE REPORTING ORGANIZATION IS LAHEY HEALTH SYSTEM, INC. THE REPORTING ORGANIZATION'S MEMBER HAS, WITH RESPECT TO THE REPORTING ORGANIZATION, THE RIGHT TO EXERCISE ALL POWERS CONFERRED ON MEMBERS OF NON-PROFIT CORPORATIONS UNDER MASSACHUSETTS GENERAL LAWS CHAPTER 180, INCLUDING, WITHOUT LIMITATION, POWERS WITH RESPECT TO THE FOLLOWING: (A) APPOINTMENT AND REMOVAL OF MEMBERS OF THE BOARD OF TRUSTEES; (B) AMENDMENT OF THE ARTICLES OF ORGANIZATION; (C) AMENDMENT OF THE BY-LAWS; (D) THE SALE, LEASE, EXCHANGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE CORPORATION'S ASSETS; AND (E) THE MERGER OR CONSOLIDATION OF THE CORPORATION WITH ANOTHER CORPORATION. THE ARTICLES OF INCORPORATION OF THE REPORTING ORGANIZATION WERE AMENDED JULY 1, 2014 AND THE BY-LAWS WERE AMENDED ON JULY 1, 2014 TO REFLECT THE AFOREMENTIONED CHANGES. FORM 990, PART VI, SECTION A, LINE 7A PLEASE SEE PREVIOUS DISCLOSURE FOR FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION A, LINE 7B PLEASE SEE PREVIOUS DISCLOSURE FOR FORM 990, PART VI, SECTION A, LINE 6 FORM 990, PART VI, SECTION B, LINE 11 MANAGEMENT PREPARED THE IRS FORM 990 ALONG WITH INDEPENDENT TAX CONSULTANTS WHO SIGN THE RETURN AS A PAID PREPARER. PRIOR TO THE FILING DATE, A DRAFT OF THE IRS FORM 990 WAS PROVIDED TO THE ENTIRE BOARD OF TRUSTEES VIA A SECURED WEBSITE. IN ADDITION, THE FINAL FORM 990 WAS PROVIDED TO THE ENTIRE BOARD OF TRUSTEES VIA THE SAME SECURED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, TRUSTEES, KEY EMPLOYEES, PHYSICIANS AND MANAGEMENT EMPLOYEES AT ALL LEVELS, ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM. THE LHS CORPORATE COMPLIANCE DEPARTMENT MONITORS AND REVIEWS EACH DISCLOSURE FOR COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. THE CORPORATE COMPLIANCE DEPARTMENT MONITORS CONFLICTS OF INTEREST THROUGH DISCLOSURE SOFTWARE, TRAINING, AND INDIVIDUAL REVIEWS WITH PHYSICIANS, KEY EMPLOYEES, AND MANAGERS. DEPENDING ON THE CONFLICT OF INTEREST: A PERSON COULD BE ASKED TO NOT PARTICIPATE IN DECISIONS MADE ON BEHALF OF THE LAHEY HEALTH SYSTEM, INC. AND AFFILIATES; A PERSON MAY BE TOLD THEY CANNOT BE A PRINCIPAL INVESTIGATOR ON A RESEARCH STUDY; A PERSON MAY BE TOLD THAT THEY CANNOT PERFORM THE TASK THAT CREATES THE CONFLICT; A PERSON COULD BE ASKED TO REMOVE THEMSELVES FROM A COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 INDEPENDENT MEMBERS OF THE BOARD OF TRUSTEES COMPRISE THE COMPENSATION COMMITTEE. THE COMMITTEE SETS THE COMPENSATION AND BENEFITS FOR THE CEO AND ALSO REVIEWS AND APPROVES RECOMMENDATIONS FOR THE COMPENSATION AND BENEFITS FOR DISQUALIFIED INDIVIDUALS AND OTHERS. THE COMMITTEE SEEKS THE ADVICE OF EXTERNAL COMPENSATION CONSULTANTS. COMPARABILITY DATA IS PROVIDED, ANALYZED, AND DOCUMENTED BY THE EXTERNAL CONSULTANTS. THE LAHEY SENIOR VP, CHIEF HR OFFICER PROVIDES THE COMMITTEE WITH ANY REQUESTED INFORMATION. THE COMMITTEE MET SEVERAL TIMES THIS YEAR. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND OTHER COMPLIANCE POLICIES ARE MADE AVAILABLE TO THE PUBLIC VIA THE ORGANIZATION'S WEBSITE. IN ADDITION, THE ORGANIZATION PRESENTS FINANCIAL INFORMATION TO THE PUBLIC AS AN ATTACHMENT TO ITS MASSACHUSETTS OFFICE OF THE ATTORNEY GENERAL FORM PC. FORM 990, PART VI, SECTION B, LINE 14 LAHEY HEALTH SYSTEM, INC. AND AFFILIATES HAS A WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY KNOWN AS THE "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS". THE REVISED "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS" POLICY WAS APPROVED BY THE MEDICAL PRACTICE AND UTILIZATION COMMITTEE ON JULY 26, 2012. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION NEGOTIATES ARRANGEMENTS TO INCLUDE TERMS AND SAFEGUARDS TO ENSURE THAT THE ORGANIZATION'S EXEMPT STATUS IS PROTECTED. FROM A LEGAL PERSPECTIVE, IN-HOUSE LEGAL COUNSEL, WITH THE INPUT OF EXTERNAL LEGAL COUNSEL, REVIEWS ALL PROPOSED JOINT VENTURE AND PARTNERSHIP AGREEMENTS. FROM A FINANCIAL PERSPECTIVE, LHS'S FINANCE MANAGEMENT TEAM REVIEWS ALL PROPOSED JOINT VENTURE AND PARTNERSHIP AGREEMENTS. BOTH REVIEWS TAKE PLACE BEFORE LAHEY HEALTH SYSTEM, INC. AND AFFILIATES ENTERS INTO ANY SUCH AGREEMENTS. FORM 990, PART VII, SECTION A LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS DO NOT COMPENSATE ANY TRUSTEE IN THEIR CAPACITY AS A TRUSTEE. ALL COMPENSATION PAID IS FOR WORK PERFORMED IN THE EMPLOYEE'S JOB TITLE, WHICH IS LISTED ON FORM 990, PART VII DIRECTLY FOLLOWING THE TITLE OF "TRUSTEE". FORM 990, PART VII, SECTION A, COLUMN D ALL COMPENSATION PAID BY LAHEY CLINIC FOUNDATION, INC. IS ALLOCATED TO RELATED ORGANIZATIONS. FORM 990, PART XI, LINE 9: UNRESTRICTED CONTRIBUTIONS 2,674,593. ASSETS RELEASED FROM TIME RESTRICTIONS 234,608. ASSETS RELEASED FROM RESTRICTIONS 8,293,255. GRANTS AND CONTRIBUTIONS -5,188,265. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS -264,247. CHANGES IN TEMPORARY AND PERMANENT NET ASSETS -8,887,720. FORM 990, PART VII, PART IX AND SCHEDULE J COMPENSATION, BENEFIT AND PENSION EXPENSES FOR OFFICERS, TRUSTEES AND KEY EMPLOYEES OF LAHEY CLINIC FOUNDATION, INC. ARE PAID BY LAHEY CLINIC FOUNDATION, INC. AS THE PARENT COMPANY OF LAHEY CLINIC HOSPITAL, INC., AND LAHEY CLINIC, INC., LAHEY CLINIC FOUNDATION, INC. ALLOCATES ALL OF THE AFOREMENTIONED EXPENSES TO RELATED ORGANIZATIONS. THE RELATED ORGANIZATIONS THEN REIMBURSE LAHEY CLINIC FOUNDATION, INC. LAHEY HEALTH SYSTEM INC 41 MALL ROAD BURLINGTON MA 01805 611665701 SUPPORT MA 501(C)(3) 11C 0 LAHEY CLINIC HOSPITAL INC 41 MALL ROAD BURLINGTON MA 01805 042704686 HEALTHCARE MA 501(C)(3) 3 LCF 1 LAHEY CLINIC INC 41 MALL ROAD BURLINGTON MA 01805 042704683 HEALTHCARE MA 501(C)(3) 9 LCF 1 LAHEY HEALTH SHARED SERVICES INC 41 MALL ROAD BURLINGTON MA 01805 043178972 ADMINISTRATIVE SUPPORT TO LHS AND AFFILIATES MA 501(C)(3) 9 LHS 0 LAHEY PHYSICIAN COMMUNITY ORGANIZATION 1 INC 41 MALL ROAD BURLINGTON MA 01805 472248298 HEALTHCARE MA 501(C) (3) 11A LHS 0 WINCHESTER HEALTHCARE MANAGEMENT INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701817 MANAGEMENT SERVICES MA 501(C) (3) 11A LHS 0 WINCHESTER HOSPITAL FOUNDATION INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 043399570 SUPPORT MA 501(C) (3) 11C WHM 0 WINCHESTER HOSPITAL 41 HIGHLAND AVENUE WINCHESTER MA 01890 042104434 HEALTHCARE MA 501(C) (3) 3 WHM 0 WINCHESTER COMMUNITY ACCOUNTABLE CARE ORGANIZATION INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 223137856 SURGERY CENTER MA 501(C) (3) 11A WHM 0 WINCHESTER HEALTHCARE INVESTMENTS INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701819 SUPPORT MA 501(C)(3) 11C WHM 0 VISITING NURSE ASSOCIATION OF MIDDLESEX-EAST INC 607 NORTH AVENUE WAKEFIELD MA 01880 046151873 HEALTHCARE MA 501(C)(3) 11A LHS 0 COMMUNITY CARE INC 607 NORTH AVENUE WAKEFIELD MA 01880 900396973 HEALTHCARE MA 501(C)(3) 11A LHS 0 NORTHEAST HOSPITAL CORPORATION 85 HERRICK ST BEVERLY MA 01915 042121317 HEALTHCARE MA 501(C)(3) 3 LHS 0 NORTHEAST MEDICAL PRACTICE 85 HERRICK ST BEVERLY MA 01915 043201853 HEALTHCARE MA 501(C)(3) 9 NHC CORP 0 NORTHEAST BEHAVIORAL HEALTH CORPORATION 199 ROSEWOOD DRIVE SUITE 250 DANVERS MA 01923 042777145 BEHAVIORAL HEALTHCARE MA 501(C)(3) 7 LHS 0 HES HOUSING SERVICES INC 199 ROSEWOOD DRIVE SUITE 250 DANVERS MA 01923 223232914 HUD HOUSING MA 501(C)(3) 9 NBH CORP 0 CAB HEALTH & RECOVERY SERVICES INC 199 ROSEWOOD DRIVE SUITE 250 DANVERS MA 01923 042400270 SUBSTANCE ABUSE MA 501(C)(3) 9 NBH CORP 0 NORTHEAST SENIOR HEALTH CORPORATION 85 HERRICK ST BEVERLY MA 01915 042731137 HEALTHCARE MA 501(C) (3) 9 LHS 0 NORTHEAST PROFESSIONAL REGISTRY OF NURSES INC 800 CUMMINGS CENTER BEVERLY MA 01915 201287349 HEALTHCARE MA 501(C) (3) 9 NSH CORP 0 SEACOAST NURSING & REHABILITATION CENTER INC 300 WASHINGTON STREET GLOUCESTER MA 01930 041305001 HEALTHCARE MA 501(C) (3) 9 LHS 0 ADDISON GILBERT SOCIETY INC 41 MALL ROAD BURLINGTON MA 01805 464371382 SUPPORT MA 501(C) (3) 11A LHS 0 NORTHEAST HEALTH SYSTEM INC 85 HERRICK ST BEVERLY MA 01915 043240453 SUPPORT MA 501(C) (3) 11C LHS 0 LAHEY CLINIC INSURANCE CO LTD PO BOX HM 2450 HAMILTON BERMUDA BD INSURANCE BD LHS INC C 0 WINCHESTER HEALTHCARE ENTERPRISES INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 042932059 HEALTHCARE VENTURES MA WHM INC C 0 WINCHESTER PHYSICIAN ASSOCIATES INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 043262963 PHYSICIAN PRACTICES MA WHM INC C 0 NORTHEAST PROPRIETARY CORPORATION 85 HERRICK STREET BEVERLY MA 01915 042855191 MEDICAL SERVICES MA NHS INC C 0 PERPETUAL TRUSTS (9) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 1014941 19027970 0 REMAINDER TRUSTS (19) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 500000 7616090 0 POOLED INCOME FUNDS (3) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 61031 1006440 0 0 0 0 1 1 0 0 0 0 1 0 1 1 1 1 1 1 1 1 LAHEY CLINIC INC N 207529137 FMV LAHEY CLINIC HOSPITAL INC N -471434334 FMV SCHEDULE R, PART IV LAHEY CLINIC FOUNDATION, INC., NORTHEAST HOSPITAL CORPORATION AND WINCHESTER HOSPITAL, RESPECTIVELY, HAVE FOUR, FOUR AND ONE PERPETUAL TRUSTS. THE PERPETUAL TRUSTS ARE DOMICILED IN MASSACHUSETTS, PENNSYLVANIA AND FLORIDA. LAHEY CLINIC FOUNDATION, INC. HAS NINETEEN REMAINDER TRUSTS. THE REMAINDER TRUSTS ARE DOMICILED IN MASSACHUSETTS, NEW HAMPSHIRE, WISCONSIN, AND NEW YORK. LAHEY CLINIC FOUNDATION, INC. HAS THREE POOLED INCOME FUNDS, DOMICILED IN MASSACHUSETTS. SCHEDULE R, PART V THE LAHEY HEALTH SHARED SERVICES, INC. PHILANTHROPY DEPARTMENT CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF ALL ENTITIES WITHIN THE LAHEY HEALTH SYSTEM, INC. FAMILY OF ORGANIZATIONS, EXCEPT "WINCHESTER" AS LISTED IN IRS FORM 990, SCHEDULE R, PART II. THE WINCHESTER HOSPITAL FOUNDATION, INC. PHILANTHROPY DEPARTMENT CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF ALL ENTITIES WITHIN "WINCHESTER", ALSO LISTED IN IRS FORM 990, SCHEDULE R, PART II. LAHEY HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATIONS, LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS, WINCHESTER HEALTHCARE MANAGEMENT, INC. AND ITS RELATED ORGANIZATIONS, NORTHEAST BEHAVIORAL HEALTH CORPORATION AND ITS RELATED ORGANIZATIONS, NORTHEAST SENIOR HEALTH CORPORATION AND ITS RELATED ORGANIZATION, NORTHEAST HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATION, AND NORTHEAST HOSPITAL CORPORATION AND ITS RELATED ORGANIZATION, PROVIDE VARIOUS CORPORATE AND OTHER SERVICES TO EACH OTHER. THE ORGANIZATIONS REIMBURSE EACH OTHER FOR EXPENSES INCURRED SUCH AS EMPLOYEE SALARIES AND BENEFITS, MATERIALS, SUPPLIES, UTILITIES, ETC. CASH IS TRANSFERRED BETWEEN THE ORGANIZATIONS.