2015-08-14T08:08:19-05:00 2014-09-30 042684828 FEELEY & DRISCOLL PC 200 PORTLAND STREET BOSTON MA 02114 990 2013-10-01 042323457 LAHEY CLINIC FOUNDATION INC LAHE 7817445100 41 MALL ROAD BURLINGTON MA 01805 HOWARD R GRANT JD MD PRESIDENT/CEO 7817445100 2015-08-14 1 JEFFREY T ROGERS P00744592 6177427788 2013 2016-03-07 17:11:31Z HOWARD R GRANT JD MD 41 MALL ROAD BURLINGTON MA 01805 10467663 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. 21 12 732 31 -28545 -28545 4626570 4862987 0 0 19512605 5572274 153169 32402 24292344 10467663 0 0 0 0 4017842 5465581 405408 391278 8300292 2242025 3056524 6665275 8913383 17627069 1554280 851356383 1118347920 479699756 726481775 371656627 391866145 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. PHILANTHROPIC EFFORTS, ALSO IN SUPPORT OF THE HOSPITAL AND CLINIC, ARE CARRIED OUT BY THE FOUNDATION. 1 1 0 0 0 0 0 1 0 1 1 1 0 1 1 0 0 1 0 0 1 0 0 1 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 1 732 1 1 1 1 CA 0 0 0 0 0 0 0 0 X 21 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MI MS MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA DC WV WI WY X X TIMOTHY O'CONNOR 7817445100 41 MALL ROAD BURLINGTON MA 01805 X HOWARD R GRANT JD MD TRUSTEE/PRESIDENT/CEO 50.00 1.00 X X 1469642 0 273518 JOHN A LIBERTINO MD TRUSTEE/CHAIR DEPT OF UROL 1.00 40.00 X 0 826585 44586 RICHARD W NESTO MD TRUSTEE/EVP/CMOO/PHYSICIAN 40.00 1.00 X 697155 0 98424 ROGER L JENKINS MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 639360 31908 RICHARD S D'AGOSTINO MD TRUSTEE/CHAIR DEPT CARDIO 1.00 40.00 X 0 657796 31088 ANDREW G VILLANUEVA MD TRUSTEE/CMO CLINIC/PHYSICI 1.00 40.00 X 0 393396 12340 BETSEY CRAWFORD MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 213972 542 ARTHUR P MOURTZINOS MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 510958 23958 REBECCA C YANG MD TRUSTEE/PHYSICIAN 1.00 40.00 X 0 371151 24441 ERIC M BAILEY TRUSTEE 1.00 X 0 0 0 CRAIG R BENSON TRUSTEE 1.00 X 0 0 0 ANN MARIE CONNOLLY TRUSTEE/BOARD 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 START 12/19/13 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/TREASURER/EVP/CFO 50.00 1.00 X 726158 0 162517 DAVID SPACKMAN JD CLERK/GEN COUNSEL 50.00 1.00 X 438488 0 44803 MARYELLEN LEAR ASSISTANT SECRETARY / LEGAL ADMIN 1.00 40.00 X 0 90802 15775 PETER LLOYD ASSISTANT TREASURER / VP FINANCE 40.00 1.00 X 369972 0 21828 LISA M COLOMBO SVP CHIEF NURSING OFFICER 40.00 X 197130 0 30120 JOSEPH C CORKERY MD CHIEF INST. ADV. OFFICER 40.00 1.00 X 534733 0 22512 GREGORY A BAZYLEWICZ MD SVP, CHIEF NETWK. DEV. OFFICER 40.00 X 495640 0 23207 ELIZABETH P CONRAD SVP CHIEF HR OFFICER 40.00 1.00 X 272032 0 28833 DONALD F SNELL EVP & COO 1.00 40.00 X 0 763228 112078 BRUCE A METZ CIO 1.00 40.00 X 0 389344 2448 DEREK C BELLIN SVP, INSTITUTIONAL ADV. & CMO 40.00 X 377038 0 25608 JOAN M ROBBIO CHIEF HUMAN RESOURCES OFFICER 40.00 X 351507 0 7321 KATHLEEN S JOSE CHIEF NURSING OFFICER 40.00 X 400391 0 0 PHILLIPS AXTEN CHIEF COMPLIANCE OFFICER & ASSOC GENL COUNSEL 40.00 1.00 X 400404 0 2584 NELSON R GAGNON VP. INFORMATION SERVICES 40.00 X 381347 0 423 7111637 4856592 1040862 118 0 1 0 DELOITTE CONSULTING LLP PO BOX 7247-6447 PHILADELPHIA PA 19170 CONSULTING 3281658 EPIC SYSTEMS CORPORATION PO BOX 88314 MILWAUKEE WI 53288 CONSULTING 2475370 NORBELLA INC 46 PLYMPTON STREET BOSTON MA 02118 MEDIA CONSULTING SERVICE 1749822 FREEMAN WHITE INC 8845 RED OAK BOULEVARD CHARLOTTE NC 28217 ARCHITECT 1683635 THE OUTSOURCE GROUP PO BOX 12414 NEWARK NJ 07101 COLLECTION SERVICES 952626 55 4862987 43020 4862987 4957267 -28545 4985812 51031 51031 59209 504767 0 0 59209 504767 563976 563976 OTHER REVENUE 900099 32402 32402 32402 10467663 0 -28545 5633221 X 42408 42408 4590927 172672 4418255 235314 7802 227512 286356 11658 274698 310576 13226 297350 82341 15786 66555 3751 3751 391278 391278 1349670 98797 1250873 17496 17496 473889 20480 453409 25870 25870 482918 14169 468749 49086 4889 44197 13593 13593 70163 70163 5872 5872 GENERAL SUPPLIES 480570 74249 406321 MEDICAL SUPPLIES 1305 210 1095 8913383 0 613091 8300292 13982926 2492075 71000 36750 4436944 4584069 1036290604 584886211 360901590 451404393 138257750 155013769 274788583 247017163 58917590 257799701 851356383 1118347920 56800457 27660243 11760 293867743 276711096 1975450 1500934 127056106 420597742 479699756 726481775 X 272282903 285524850 39937449 45426621 59436275 60914674 371656627 391866145 851356383 1118347920 X 1554280 8556345 10098893 X 0 1 X 1 0 X 3963818 2768044 3285682 4626570 4862987 19507101 3963818 2768044 3285682 4626570 4862987 19507101 19507101 3204960 3684596 2873563 3479683 5008298 18251100 6268 8134 7070 153169 32402 207043 37965244 0.51380 0.51540 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X 0 295405414 10196514 20788272 800000 538778 325051422 284504199 688023 16904514 6048789 642533 295405414 266009728 946986 25996140 7824838 623817 284504199 275817593 1849984 -726521 10133190 798138 266009728 262176300 814624 23033174 9539545 666960 275817593 0.78000 0.22000 0 0 15393209 15393209 502491221 172902793 329588428 9526628 7196344 2330284 494727993 393382150 101345843 14151553 11404924 2746629 451404393 OTHER INVESTMENTS 247017163 F 247017163 DEFERRED DEBT ISSUE COSTS, NET 3259700 INVESTMENT - LAHEY CLINIC INSURANCE 120000 INVESTMENT - JOINT VENTURE - FELLSWAY DEVELOPMENT 6303828 OTHER RECEIVABLES - EMPLOYEES 441893 ASSETS HELD UNDER SPLIT INTEREST AGREEMENTS 11480896 BENEFICIAL INTEREST IN PERPETUAL AND LEAD TRUSTS 32886132 INVESTMENTS - OTHER 4367711 INTERCOMPANY RECEIVABLES 198939541 257799701 INTERCOMPANY PAYABLES 413687839 SPLIT INTEREST LIABILITY 5881335 CONDITIONAL ASSET RETIREMENT OBLIGATION 1028568 420597742 28569013 8556345 14407992 22964337 5604676 4862987 4862987 10467663 14881330 5967947 5967947 8913383 0 8913383 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 2,432,949. ASSETS RELEASED FROM TIME RESTRICTIONS 941,962. ASSETS RELEASED FROM RESTRICTIONS 5,034,077. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 138,769. CAPTIVE INSURANCE TRANSFER -107,712. OTHER OPERATING REVENUES TRANSFER TO LAHEY CLINIC, INC. AND LAHEY CLINIC HOSPITAL INC. 5,967,947. PART XI, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTIONS, GIFTS, AND GRANTS 4,862,987. PART XII, LINE 2D - OTHER ADJUSTMENTS: OTHER OPERATING REVENUE COLLECTED BY LAHEY CLINIC FOUNDATION, INC. AND CREDITED TO OVERHEAD EXPENSES ALLOCATED TO LAHEY CLINIC INC. AND LAHEY CLINIC HOSPITAL, INC. 5,967,947. NORTH AMERICA 0 0 FUNDRAISING 219498 CENTRAL AMERICA/CARIBBEAN 0 0 INVESTMENTS 55818340 0 0 0 0 0 0 56037838 0 56037838 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 X X 0 NEWPORT CREATIVE COMMUNICATIONS 33 RAILROAD AVENUE DUXBURY MA 02332 DIRECT MAILING 0 590983 168382 422601 TARGET MARKET TEAM NORTHPARK TOWN CENTER ATLANTA GA 30328 DIRECT MAILING 0 173903 137812 36091 FREEDMAN HEALTHCARE LLC 29 CRAFTS STREET NEWTON MA 02458 GRANT WRITING 0 49967 42623 7344 PUBLIC INTEREST COMMUNICATIONS 7700 LEESBURG PIKE SUITE 301 NORTH FALLS CHURCH VA 22043 TELEMARKETING 0 6970 8101 -1131 821823 356918 464905 AL AK AZ AK CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MI MS MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA DC WV WI WY X X X X X 0 1 0 0 0 0 0 1 0 HOWARD R GRANT JD MD TRUSTEE/PRESIDENT/CEO 1451746 0 0 0 17896 0 242796 0 30722 0 1743160 0 0 0 JOHN A LIBERTINO MD TRUSTEE/CHAIR DEPT OF UROL 0 809085 0 0 0 17500 0 22796 0 21790 0 871171 0 0 RICHARD W NESTO MD TRUSTEE/EVP/CMOO/PHYSICIAN 679655 0 0 0 17500 0 73400 0 25024 0 795579 0 0 0 ROGER L JENKINS MD TRUSTEE/PHYSICIAN 0 639360 0 0 0 0 0 0 0 31908 0 671268 0 0 RICHARD S D'AGOSTINO MD TRUSTEE/CHAIR DEPT CARDIO 0 640296 0 0 0 17500 0 0 0 31088 0 688884 0 0 ANDREW G VILLANUEVA MD TRUSTEE/CMO CLINIC/PHYSICI 0 375896 0 0 0 17500 0 0 0 12340 0 405736 0 0 BETSEY CRAWFORD MD TRUSTEE/PHYSICIAN 0 213972 0 0 0 0 0 0 0 542 0 214514 0 0 ARTHUR P MOURTZINOS MD TRUSTEE/PHYSICIAN 0 510958 0 0 0 0 0 0 0 23958 0 534916 0 0 REBECCA C YANG MD TRUSTEE/PHYSICIAN 0 371151 0 0 0 0 0 0 0 24441 0 395592 0 0 TIMOTHY O'CONNOR OFFICER/TREASURER/EVP/CFO 725900 0 0 0 258 0 136700 0 25817 0 888675 0 0 0 DAVID SPACKMAN JD CLERK/GEN COUNSEL 437726 0 0 0 762 0 22796 0 22007 0 483291 0 0 0 PETER LLOYD ASSISTANT TREASURER / VP FINANCE 369972 0 0 0 0 0 0 0 21828 0 391800 0 0 0 LISA M COLOMBO SVP CHIEF NURSING OFFICER 197130 0 0 0 0 0 0 0 30120 0 227250 0 0 0 JOSEPH C CORKERY MD CHIEF INST. ADV. OFFICER 517233 0 0 0 17500 0 0 0 22512 0 557245 0 0 0 GREGORY A BAZYLEWICZ MD SVP, CHIEF NETWK. DEV. OFFICER 478140 0 0 0 17500 0 0 0 23207 0 518847 0 0 0 ELIZABETH P CONRAD SVP CHIEF HR OFFICER 272032 0 0 0 0 0 0 0 28833 0 300865 0 0 0 DONALD F SNELL EVP & COO 0 763228 0 0 0 0 0 90071 0 22007 0 875306 0 0 BRUCE A METZ CIO 0 371844 0 0 0 17500 0 0 0 2448 0 391792 0 0 DEREK C BELLIN SVP, INSTITUTIONAL ADV. & CMO 377038 0 0 0 0 0 0 0 25608 0 402646 0 0 0 JOAN M ROBBIO CHIEF HUMAN RESOURCES OFFICER 338694 0 0 0 12813 0 0 0 7321 0 358828 0 0 0 KATHLEEN S JOSE CHIEF NURSING OFFICER 396846 0 0 0 3545 0 0 0 0 0 400391 0 0 0 PHILLIPS AXTEN CHIEF COMPLIANCE OFFICER & ASSOC GEN 400404 0 0 0 0 0 0 0 2584 0 402988 0 0 0 NELSON R GAGNON VP. INFORMATION SERVICES 381347 0 0 0 0 0 0 0 423 0 381770 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 SCHEDULE J, PART I, LINE 4B, PART II COLUMN C THE ORGANIZATION MAINTAINS A 457F NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN PHYSICIANS, EXECUTIVE MANAGEMENT AND DEFINED MEDICAL STAFF. THE PLAN OFFERS PARTICIPATING EMPLOYEES AN ANNUAL DEFFERAL OF COMPENSATION IN ADDITION TO THEIR SALARIES. FOR THE CURRENT PERIOD, THE FOLLOWING PERSONS PARTICIPATED IN THE 457F NONQUALIFIED DEFERRED COMPENSATION PLAN: RICHARD W NESTO, MD - AMOUNT $73,400 TIMOTHY O'CONNOR- AMOUNT $136,700 HOWARD R GRANT, J.D., M.D. - AMOUNT = $242,796 DAVID SPACKMAN - AMOUNT = $22,796 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 45335465 163666057 1259007 3594356 51328227 107484467 2006 1 0 1 1 B -34618 51388809 870765 50518044 2009 0 0 1 1 C 17940000 130050301 500000 52570791 76979510 0 0 0 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 1500934 0 1 1 1500934 X 9 43020 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. PART IV, LINE 4 LAHEY CLINIC HOSPITAL, INC., A RELATED ORGANIZATION, 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 A MERGER WITH EACH OTHER AND ESTABLISHED A NEW ORGANIZATION, LAHEY HEALTH SYSTEM, INC. ("LHS"), TO SERVE AS THE PARENT OF THE COMBINED HEALTH SYSTEM. ON JULY 1, 2014, LHS AND WINCHESTER HEALTHCARE MANAGEMENT, INC ENTERED INTO AN AFFILIATION. LHS IS NOW THE SOLE CORPORATE MEMBER OF LAHEY CLINIC FOUNDATION, INC., NORTHEAST HEALTH SYSTEM,INC. AND WINCHESTER HEALTHCARE MANAGEMENT, INC. 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 (SUBJECT TO CERTAIN TRANSITION RULES IN PLACE THROUGH MAY 1, 2016); (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. EXECUTIVE MANAGEMENT REVIEWED AND PRESENTED A DRAFT OF THE IRS FORM 990 TO THE AUDIT AND COMPLIANCE COMMITTEE OF THE LAHEY HEALTH SYSTEM, INC. BOARD OF TRUSTEES. PRIOR TO THE FILING DATE, A DRAFT OF THE IRS FORM 990 AND THE FINAL IRS FORM 990 WERE BOTH PROVIDED TO THE ENTIRE BOARD OF TRUSTEES BEFORE THE FILING DATE VIA A 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 HOSPITAL AND MEDICAL CENTER; 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 EXECUTIVE VICE PRESIDENT OF HUMAN RESOURCE OPERATIONS 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. PART VI, SECTION B, LINE 14 LAHEY HOSPITAL & MEDICAL CENTER HAS WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY KNOWN AS THE "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS". THE POLICIES, PROCEDURES, AND STANDARDS ARE MONITORED, MANAGED, AND REVISED BY THE RECORDS MANAGEMENT STEERING COMMITTEE. THE REVISED "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS" POLICY WAS APPROVED BY THE MEDICAL PRACTICE AND UTILIZATION COMMITTEE ON JULY 26, 2012. 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, LAHEY'S FINANCE MANAGEMENT TEAM REVIEWS ALL PROPOSED JOINT VENTURE AND PARTNERSHIP AGREEMENTS. BOTH REVIEWS TAKE PLACE BEFORE LAHEY HOSPITAL & MEDICAL CENTER ENTERS INTO ANY SUCH AGREEMENTS. PART VII 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 IX, LINE 11G OTHER: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 98,797. FUNDRAISING EXPENSES 1,250,873. TOTAL EXPENSES 1,349,670. FORM 990, PART XI, LINE 9: UNRESTRICTED CONTRIBUTIONS 2,432,949. ASSETS RELEASED FROM TIME RESTRICTIONS 941,962. ASSETS RELEASED FROM RESTRICTIONS 5,034,077. PENSION AND POST RETIREMENT RELATED CHANGES -445,736. GRANTS AND CONTRIBUTIONS -4,862,987. CHANGES IN TEMPORARY AND PERMANENT NET ASSETS 6,967,571. CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 138,769. CAPTIVE INSURANCE TRANSFER -107,712. PART VII, PART IX, 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 A SIGNIFICANT PORTION OF THE AFOREMENTIONED EXPENSES TO ITS AFFILIATES. THE AFFILIATES THEN REIMBURSE LAHEY CLINIC FOUNDATION, INC. LAHEY CLINICAL HOSPITAL INC 41 MALL ROAD BURLINGTON MA 01805 042704686 HEALTHCARE MA 501(C) (3) 3 LCF INC 1 LAHEY CLINIC INC 41 MALL ROAD BURLINGTON MA 01805 042704683 HEALTHCARE MA 501(C) (3) 9 LCF INC 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 INC 0 NORTHEAST HEALTH SYSTEM INC 85 HERRICK STREET BEVERLY MA 01915 043240453 SUPPORT MA 501(C) (3) 11C LHS INC 0 NORTHEAST BEHAVIORAL HEALTH CORPORATION ZERO CENTENNIAL DRIVE PEABODY MA 01960 042777145 BEHAVIORAL HEALTH CARE MA 501(C) (3) 7 LHS INC 0 HEALTH AND EDUCATION HOUSING SERVICES INC 131 RANTOUL STREET BEVERLY MA 01915 223232914 HUD HOUSING MA 501(C) (3) 9 NBH CORP 0 NORTHEAST HOSPITAL CORPORATION 85 HERRICK STREET BEVERLY MA 01915 042121317 HEALTHCARE MA 501(C) (3) 3 LHS INC 0 NORTHEAST MEDICAL PRACTICES INC 85 HERRICK STREET BEVERLY MA 01915 043201853 HEALTHCARE MA 501(C) (3) 9 NHC 0 SEACOAST NURSING & REHABILITATION CENTER 300 WASHINGTON STREET GLOUCESTER MA 01930 041305001 HEALTHCARE MA 501(C) (3) 9 LHS INC 0 NORTHEAST PROFESSIONAL REGISTRY OF NURSES 800 CUMMINGS CENTER BEVERLY MA 01915 201287349 HEALTHCARE MA 501(C) (3) 9 NESH CORP 0 NORTHEAST SENIOR HEALTH CORPORATION 131 RANTOUL STREET BEVERLY MA 01915 042731137 HEALTHCARE MA 501(C) (3) 9 LHS INC 0 CAB HEALTH & RECOVERY 111 MIDDLETON ROAD DANVERS MA 01923 042400270 SUBSTANCE ABUSE MA 501(C) (3) 9 NBH CORP 0 LAHEY HEALTH SYSTEM INC 41 MALL ROAD BURLINGTON MA 01805 611665701 SUPPORT MA 501(C) (3) 11C III-FI N/A 0 WINCHESTER HOSPITAL 41 HIGHLAND AVENUE WINCHESTER MA 01890 042104434 HEALTHCARE MA 501(C) (3) 9 WHM INC 0 WINCHESTER HOSPITAL FOUNDATION INC 41 HIGHLAND AVENUE WINCHESTER MA 01890 043399570 SUPPORT MA 501(C) (3) 11C WHM INC 0 WINCHESTER HEALTHCARE INVESTMENTS 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701819 SUPPORT MA 501(C) (3) 11C WHM INC 0 WINCHESTER HEALTHCARE MANAGEMENT 41 HIGHLAND AVENUE WINCHESTER MA 01890 222701817 MANAGEMENT SERVICE MA 501(C) (3) 11A LHS INC 0 WINCHESTER COMMUNITY ACCOUNTABLE CARE ORGANIZATION 41 HIGHLAND AVENUE WINCHESTER MA 01890 223137856 SURGERY CENTER MA 501(C) (3) 11A WHM INC 0 ADDISON GILBERT SOCIETY 41 MALL ROAD BURLINGTON MA 01805 464371382 SUPPORT MA 501(C) (3) 11A LHS INC 0 LAHEY CLINIC INSURANCE CO LTD PO BOX HM 2450 HAMILTON BD INSURANCE BD LHS INC C 0 PERPETUAL TRUSTS (9) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 839149 20661015 1.00000 0 REMAINDER TRUSTS (17) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 26393 8034047 1.00000 0 POOLED INCOME FUNDS (3) 41 MALL ROAD BURLINGTON MA 01805 SUPPORT MA SEE PART VII T 64122 1084199 1.00000 0 NORTHEAST PROPRIETARY CORPORATION 85 HERRICK STREET BEVERLY MA 01915 042855191 MEDICAL SERVICES MA NHS 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 PRACTICE MA WHM INC C 0 WINCHESTER HEALTHCARE INDEMNIFICATION 41 HIGHLAND AVENUE WINCHESTER MA 01890 980589732 INVESTMENT COMPANY MA WHM INC C 1.00000 1 WINCHESTER PHYSICIAN HOSPITAL ORGANIZATION 41 HIGHLAND AVENUE WINCHESTER MA 01890 472646454 CONTRACT MANAGEMENT MA WHM INC C 0 0 0 0 1 1 0 0 0 0 1 0 1 1 1 1 1 1 1 1 LAHEY CLINIC INC N 15273357 FMV LAHEY CLINIC HOSPITAL INC N 95273632 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 SEVENTEEN REMAINDER TRUSTS. THE REMAINDER TRUSTS ARE DOMICILED IN MASSACHUSETTS, NEW HAMPSHIRE AND WISCONSIN. LAHEY CLINIC FOUNDATION, INC. HAS THREE POOLED INCOME FUNDS, DOMICILED IN MASSACHUSETTS. SCHEDULE R, PART V IN ADDITION TO CONDUCTING FUNDRAISING AND SOLICITATION EFFORTS ON ITS OWN BEHALF, LAHEY CLINIC FOUNDATION, INC. PHILANTHROPY DEPARTMENT ALSO CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF ALL ENTITIES WITHIN THE LAHEY HEALTH SYSTEM, INC. FAMILY OF ORGANIZATIONS, AS DETAILED IN THE ACCOMPANYING IRS FORM 990, SCHEDULE R, PART II. LAHEY HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATIONS, LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS, AND NORTHEAST HEALTH SYSTEM, INC. AND ITS RELATED ORGANIZATIONS, AND WINCHESTER HEALTHCARE MANAGEMENT, INC. AND ITS RELATED ORGANIZATIONS, PROVIDE VARIOUS CORPORATE AND OTHER SERVICES TO EACH OTHER. THESE ORGANIZATIONS REIMBURSE ONE ANOTHER FOR EXPENSES INCURRED SUCH AS EMPLOYEE SALARIES, MATERIALS, SUPPLIES, UTILITIES, ETC. CASH IS ALSO TRANSFERRED BETWEEN THE CORPORATIONS.