2015-11-13T15:40:36-06:00 2014-12-31 BDO USA LLP 3200 BRISTOL ST 4TH FLOOR COSTA MESA CA 92626 990 2014-01-01 450552845 THE SCAN FOUNDATION % ERIC THAI SCAN 8885697226 3800 KILROY AIRPORT WAY ste 400 LONG BEACH CA 908065616 Rene Seidel President & CFO 8885697226 2015-11-13 true WALTER H HICK JR P01070437 7149573200 2014 2016-03-07 17:11:31Z Bruce Chernof 3800 Kilroy Airport Way Long Beach CA 908065616 94878322 false X THESCANFOUNDATION.ORG X 2007 CA TO ADVANCE A COORDINATED AND EASILY NAVIGATED SYSTEM OF HIGH-QUALITY SERVICES FOR OLDER ADULTS THAT PRESERVE DIGNITY AND INDEPENDENCE. 11 9 17 6 28996 0 0 0 0 0 10357907 20263830 0 0 10357907 20263830 2995357 6373692 0 0 2815281 2804430 0 0 0 3593475 2957071 9404113 12135193 953794 8128637 209336495 211989381 3036297 4321704 206300198 207667677 X THE SCAN FOUNDATION'S MISSION IS TO ADVANCE A COORDINATED AND EASILY NAVIGATED SYSTEM OF HIGH-QUALITY SERVICES FOR OLDER ADULTS THAT PRESERVE DIGNITY AND INDEPENDENCE. During 2014, the Foundation disbursed $5,176,119 in cash grants to other organization's to help achieve their mission. false false 10457956 6373692 The SCAN Foundation started its grant-making activities in 2008. In January 2009, the Foundation Board of Directors formally adopted a 5-year strategic plan, and grant-making throughout the 2013 fiscal year occurred in accordance with this plan. In December 2013, the Board approved an updated five-year Strategic Framework for 2014-2018 that is guiding the Foundation's current work. The 2014-2018 Strategic Framework builds on the initial three funding priorities of the Foundation: (1) Raising public awareness and engagement (2) Advancing realistic policy options around financing and delivery system reform; and (3) Bringing promising programs to scale. Within these funding priorities, the new Strategic Framework outlined three specific Thematic Goals, focused to serve specific populations: (1) Medicare-Medicaid Integration - bridging care and financing for low-income older adults; (2) Person-Centered Care - putting decisions in the hands of people and families; (3) Long-Term Care Financing - enabling working families to pay for long-term care needs. As in the past, The SCAN Foundation's grant-making is primarily for the benefit of Californians. However, since care for California seniors is to a large extent financed by the federal government (through Medicare and Medicaid), the policy work of the Foundation also has a federal focus. The following highlighted projects shaped progress in the Foundation's Thematic Goals in 2014: Thematic Goal 1: Medicare-Medicaid Integration The Foundation has been a pioneer in building the business acumen of non-profit organizations, in order to prepare them to contract with the health care sector. As responsibility for providing medical care and long-term services and supports shifts more and more to health plans and other health care providers, it is an important objective for the Foundation under this goal to enable health plans to implement effective care coordination models through appropriate networks. The Foundation trained six California vanguard community organizations through its Linkage Lab initiative to be able to contractually partner with the health care sector. Additionally, the Foundation supported the Administration for Community Living in bringing together thought partners on a national level and to engage in similar efforts throughout the country. A second large initiative under this goal is the Foundation's "Community of Constituents", made up of 18 Regional Aging and Disability Service Coalition, and the Sacramento-based California Collaborative. These organizations meet weekly by phone and twice a year at a conference, including the Foundation's Summit on Long-Term Services and Supports Transformation. The goal of this effort is to develop a shared vision and to find a unified voice in transforming and shaping the service delivery system for older adults and people with disability in the state. Thematic Goal 2: Person-Centered Care Building on prior work that the Foundation coined Dignity-Driven Decision-Making, this goal focuses on broadly scaling person-centered models of care in California and beyond. Before engaging in actual scaling activities, much ground work needs to be completed. The Foundation engaged the American Geriatrics Society (AGS), to conduct a comprehensive literature review and convene national experts to develop a consensus definition of person-centered care for older adults with chronic illness and functional limitations, and, equally important, to describe key elements that make up such models of care. Further, the Foundation released a request for proposals to solicit qualified candidates to conduct an environmental scan in California, To determine which, if any type of health care organizations serving Medicare beneficiaries (i.e., health plans, medical groups, physician groups, hospitals, Accountable Care Organizations) already operate person-centered models of care that meet the AGS definition, and where the greatest opportunities for scaling lie. Avalere Health was selected to conduct the environmental scan in 2015. While AGS made the case that person-centered care is good clinical care, the third foundational groundwork will be to develop the business case for such models. While this too is largely a 2015 activity, in 2014 the Foundation began planning for this work in early discussions with Dr. Victor Tabbush, Professor Emeritus of the University of California, Los Angeles, Anderson School of Business. Thematic Goal 3: Long-Term Care Financing Building on renewed interest and activity towards bipartisan policy development to solve the long-term care financing problem, the Foundation funded four interrelated projects to launch the creation, testing, and initial vetting of viable long-term care financing policy solution. The Foundation engaged the Bipartisan Policy Center to create highly visible, pragmatic, and achievable bipartisan recommendations that are being developed by respected senior political leaders from both parties. In order to provide a common basis for political discussions so that any of these proposed policy option can receive serious consideration, it is necessary to develop a realistic set of cost estimates and economic impact analyses of these options. The Foundation engaged the Urban Institute and Milliman to model the related costs and savingS Medicare and Medicaid (where applicable) of the key policy options. At the same time the Foundation convened a broad panel of policy leaders to provide technical advisement about the specifications of each policy option for modeling so that the proposals are balanced and practical. Finally, another key constituency with great interest in solving the long-term care financing problem is national employer groups. The Foundation engaged consultants to convene employer and insurer groups to increase their understanding of long-term care financing in general and to obtain their buy-in for insurance-based solutions based on the modeling outputs. 10457956 true false false false false false false false false false true true false false true true true true false false true false false false false false false true false true false false false false false false false false false false false false false true true true false false true 35 0 true 17 true true true false false false false false false false false false X 11 9 false false true false false false false true true false false true true true true true true true true false CA X ERIC THAI 5623082889 3800 KILROY AIRPORT WAY LONG BEACH CA 908065616 Collen Cain Chair 3.5 5.6 X X 0 123000 0 Thomas Higgins Director 2.4 4.3 X 0 105000 0 Patrick Seaver Director 3.1 5.8 X 0 114200 0 Michael Noel Director 3.1 4.9 X 0 106200 0 Ryan Trimble Director 3.2 7.1 X 0 136200 0 Jennie Chin Hansen Director 2.7 0.0 X 36200 0 0 Paul Torrens Director 2.4 0.0 X 35000 0 0 Ivelisse Estrada Director 2.4 0.0 X 35000 0 0 Nicholas Augustinos Director 2.4 0.0 X 35000 0 0 Christopher Wing Director 1.0 39.0 X 0 980319 547891 Bruce Chernof President/CEO 40.0 0.0 X X 488974 0 154488 Rene Seidel Secretary/Treasurer 40.0 0.0 X 242849 0 48891 Gretchen Alkema VP Policy & Communications 40.0 0.0 X 245386 0 54089 Erin Westphal Program Officer 40.0 0.0 X 127611 0 42598 Karen Scheboth Director of Grants Administrat 40.0 0.0 X 125499 0 36743 Eric Thai Director of Finance 40.0 0.0 X 122609 0 28574 Victoria Ballesteros Director of Communications 40.0 0.0 X 116961 0 28968 Kali Peterson Program Officer 40.0 0.0 X 113933 0 20546 1725022 1564919 962788 8 false true false Avalere Health LLC 1350 Connecticut Ave NW STE 900 WASHINGTON DC 200360036 Program Services 196522 COLLABORATIVE CONSULTING 521 BROWNING ST MILL VALLEY CA 94941 Program Services 103688 RODRIGUEZ HORII CHOI CAFFERATA 777 S FIGUEROA ST STE 2150 LOS ANGELES CA 90017 LEGAL SERVICES 100469 3 0 0 6167392 28996 6138396 0 0 0 0 0 88710930 74614492 14096438 14096438 14096438 0 0 0 0 20263830 28996 20234834 6373692 6373692 0 0 0 1564477 1164988 399489 0 915974 741939 174035 136567 110835 25732 65607 53142 12465 121805 98722 23083 305128 305128 97416 97416 62638 62638 0 0 292242 292242 93735 341 93394 0 27712 26030 1682 30470 26826 3644 0 199682 161742 37940 151798 151154 644 0 133755 12078 121677 0 0 119996 97197 22799 0 RESEARCH AND EDUCATION 1438270 1438270 OTHER EXPENSES 4229 1000 3229 12135193 10457956 1677237 0 X 1226294 379662 4900866 2177347 0 0 243382 198805 0 0 0 0 0 0 0 0 10075 6596 767387 702551 175654 64836 171429909 169477810 31334124 39666253 0 0 0 0 16191 18072 209336495 211989381 765450 747219 1826671 3024245 0 0 0 0 0 0 0 0 0 0 0 0 444176 550240 3036297 4321704 X 206300198 207667677 0 0 0 0 206300198 207667677 209336495 211989381 8128637 -6761158 X false true X true false X X X 1 SCAN HEALTH PLAN 953858259 09 true 0 0 1 0 true false false false false false false false false false false false false false false false false true 648140 583304 64836 21863 21863 0 97384 97384 0 64836 HEDGE FUNDS 19700754 F PRIVATE EQUITY 19965499 F 39666253 0 INTERCOMPANY PAYABLES 8852 DEFERRED COMPENSATION 541388 550240 X 13210430 -6761158 -6761158 19971588 292242 292242 20263830 11842951 11842951 292242 292242 12135193 Part X, FIN 48 Footnote to the Financial Statements: Under FASB ASC 740, Income taxes. the company is required to recognize a liability for each uncertain tax position at the amount estimated to be required to settle the issues. As of December 31, 2014 and 2013, there were no liabilites recorded for uncertain tax positions. true false true false true false true Seniors Council of Santa Cruz & San Benito Countie 234 SANTA CRUZ AVE APTOS CA 950034438 942662950 501(c)(3) 7991 Monterey Bay Aging and Disability Resource Center Quality for Dual Eligibles. GOVERNMENT ACTION COMMUNICATION INSTITUTE (GACI) 4535 SHADY OAK WAY FAIR OAKS CA 956285752 200038046 501(c)(3) 474048 California Collaborative for Long Term Services an NORC 55 E MONROE ST FL 20 CHICAGO IL 606035991 362167808 501(c)(3) 907395 Long-Term Care Public Opinion Research and Dissemi HENRY J KAISER FAMILY FOUNDATION 2400 SAND HILL ROAD MENLO PARK CA 940256941 946064808 501(c)(3) 500000 KHN Coverage of Aging and Long-Term Care Issues Greater Washington Educational Telecommunications 3939 Campbell Ave Arlington VI 22206 530242992 501(c)(3) 275000 Expanded long-term care coverage and social media Twin Cities Public Television 172 4TH ST E SAINT PAUL MI 551011492 410769851 501(c)(3) 195000 Raising Awareness and Visibility of Long-term Care CENTER FOR HEALTH CARE STRATEGIES 200 AMERICAN METRO BLVD STE 119 HAMILTON NE 086192320 223375015 501(c)(3) 56105 Cal MediConnect Learning Forums Long-Term Quality Alliance 1825 K Street NW - Suite 411 Washington DC 200061256 463140288 501(c)(3) 74800 Creating a Path Forward on Uniform Needs Assessmen Research Foundation of the City Universities of Ne 230 West 41 Street New York NY 10036 131988190 501(c)(3) 8500 BUILDING THE BUSINESS CASE: RESPONDING TO THE CHAN GOVERNMENT ACTION COMMUNICATION INSTITUTE (GACI) 4535 SHADY OAK WAY FAIR OAKS CA 956285752 200038046 501(c)(3) 74631 LTSS Summit 2014 Mercy Housing California 1360 Mission Street Suite 300 San Francisco CA 94103 943081666 501(c)(3) 7937 Enhanced Senior Health Reporting The Regents of the University of California San F 3333 California Street San Francisco CA 941186215 946036493 STATE OF CA 75000 Planning for an Evaluation of Californias Alignmen The Urban Institute 2100 M Street NW Washington DC 20037 520880375 501(c)(3) 35000 Establishing a One-Stop Shop for Modeling LTSS Pol The Regents of the University of California Los A Office of Contract and Grant Admini Los Angeles CA 900951406 956006143 STATE OF CA 349313 Development of a Universal Assessment for Californ BIPARTISAN POLICY CENTER INC 1225 EYE ST NW STE 1000 WASHINGTON DC 200053914 731628382 501(c)(3) 298305 Bipartisan Strategies for Sustainable Long-Term Ca National Hispanic Council on Aging 734 15th Street NW Suite 1050 Washington DC 20005 521306347 501(C)(3) 35000 Hispanic Outreach and Education Cal MediConnect in Long-Term Quality Alliance 1825 K Street NW - Suite 411 Washington DC 200061256 463140288 501(c)(3) 300000 Long-Term Care Employer Workgroup The Urban Institute 2100 M Street NW Washington DC 20037 520880375 501(c)(3) 420000 Modeling Policy Options to Finance Long-Term Servi American Geriatrics Society 40 FULTON ST FL 18 NEW YORK NE 100385082 131950856 501(c)(3) 227194 Identifying Successful Approaches to Person-Center National Assn Of Latino Elected Officials Naleo Ed 1122 W WASHINGTON BLVD LOS ANGELES CA 900153349 521212849 501(c)(3) 50670 Long-Term Care Initiative Planning Grant CENTER FOR HEALTH CARE STRATEGIES 200 AMERICAN METRO BLVD STE 119 HAMILTON NE 086192320 223375015 501(c)(3) 30857 Best Practices in Health Plan Approaches to Traini Families USA Foundation 1201 NEW YORK AVE NW STE 1100 WASHINGTON DC 200056100 042730934 501(C)(3) 75000 Grantee Meeting for the Duals Demonstration Ombuds California Department of Health Care Services PO Box 997413 MS 0000 Sacramento CA 958997413 680317191 STATE OF CA 75000 DHCS Academy funding to enroll additional training Women's Foundation of California 340 PINE ST STE 302 SAN FRANCISCO CA 941043235 942752421 501(c)(3) 10500 Pathways' 2014 On the Road to Innovation Bus Tour CENTER FOR HEALTH CARE STRATEGIES 200 AMERICAN METRO BLVD STE 119 HAMILTON NE 086192320 223375015 501(c)(3) 449183 Implementing New Systems of Integration for Dual E Long-Term Quality Alliance 1825 K Street NW - Suite 411 Washington DC 200061256 463140288 501(c)(3) 8000 LTQA Strategic Planning Alzheimer's Disease and Related Disorders Associat 17771 COWAN IRVINE CA 926146043 953702013 501(c)(3) 48000 Orange County Aging Services Collaborative - Phase THE HEALTH TRUST 3180 Newberry Drive Suite 200 San Jose CA 95118 946050231 501(c)(3) 48000 Aging Services Collaborative (ASC) of Santa Clara San Mateo County Aging and Adult Services 225 37th Ave San Mateo CA 94403 946000532 city-san mateo 6400 Promoting a Community-Based System of Care that Su FREEDADRC of Nevada County 2059 Nevada City Highway Grass Valley CA 95945 680085639 501(c)(3) 6750 Community Living Council of Nevada County - A coal DEPARTMENT OF AGING AND ADULT SERVICES 1650 MISSION STREET 5TH FLOOR SAN FRANCISCO CA 94103 946000417 STATE OF CA 48000 Strengthening San Francisco's Long Term Care Coord Independent Living Resource Center Inc 423 W VICTORIA ST SANTA BARBARA CA 931013619 953255012 501(c)(3) 8000 Tri-County LTSS Coalition Riverside County Office on Aging 6296 River Crest Dr K Riverside CA 92507 956000930 CNTY-RIVERSIDE 8000 Regional Aging and Disability Service and Advocacy ST BARNABAS SENIOR CENTER OF LOS ANGELES 675 S CARONDELET ST LOS ANGELES CA 900573309 951641435 501(c)(3) 48000 Los Angeles Aging Advocacy Coalition (LAAAC) Alameda County Meals On Wheels PO Box 14002 OAKLAND CA 94614 942651065 city-alameda 48000 Senior Services Coalition- Advancing LTSS Public P Castle Keep 5459 E MONO ST FRESNO CA 937274117 270486313 501(c)(3) 8000 Central Valley LTSS Coalition Yolo Healthy Aging Alliance 625 Court Street Woodland CA 95695 941599229 501(c)(3) 44502 Increasing Access to Coordinated Long Term Care Se Independent Living Services of Northern California 1161 EAST AVE CHICO CA 959261018 942735218 501(c)(3) 8000 Diversability Advocacy Network Healthy Aging Association 121 DOWNEY AVE STE 102 MODESTO CA 953541235 770546574 501(c)(3) 47981 Senior Coalition of Stanislaus County San Diego County Health and Human Services Agency 5560 Overland Ave Suite 310 San Diego CA 92123 956000934 CNTY-SAN DIEGO 48000 Long Term Care Integration Project (LTCIP) ON LOK INC 1333 Bush Street San Francisco CA 941095611 943101464 501(c)(3) 8000 Local/Regional Aging and Disability Service and Ad Camarillo Health Care District 3639 Las Posas Road Camarillo CA 93010 952834854 state of ca 48000 Ventura County Evidence-based Health Promotion Coa Rehabilitation Services of Northern California 490 Golf Club Road Pleasant Hill CA 94523 942822559 501(c)(3) 8000 Advisory Council on Aging - Contra Costa NORC 55 E MONROE ST FL 20 CHICAGO IL 606035991 362167808 501(c)(3) 302360 The Long-term Care Journalism Fellowship National Public Radio Inc PO Box 79540 Baltimore MA 212790540 520907625 501(c)(3) 400000 Supporting NPR's Coverage of Aging and Long-Term C NATIONAL SENIOR CITIZENS LAW CENTER 1444 Eye Street NW Suite 1100 Washington DC 20037 953132674 501(c)(3) 150000 Preparing for California's Dual Eligibles for the BAY AREA COMMUNITY SERVICES 1814 FRANKLIN ST 4TH FLOOR Oakland CA 946123487 941708069 501(c)(3) 50000 Building Futures for Quality Care Coordination Camarillo Health Care District 3639 Las Posas Road camarillo CA 93010 952834854 state of ca 50000 Ventura County Care Transitions Partnership Jewish Family Services of Los Angeles 3580 WILSHIRE BLVD STE 700 Los Angeles CA 90010 951691013 501(c)(3) 23975 Aligning Social Service Delivery and Information T 49 0 SCHEDULE I, PART I, LINE 2: THE SCAN FOUNDATION ONLY MAKES GRANTS TO IRC SECTION 501(C) OR GOVERNMENT ORGANIZATIONS IN THE UNITED STATES. THE USE OF GRANT FUNDS IS MONITORED BY REVIEWING PROGRAM AND EXPENDITURE REPORTS ON A QUARTERLY BASIS. EXPENDITURE REPORTS ARE REVIEWED AGAINST THE PROPOSED AND APPROVED BUDGETS AND PROGRAM REPORTS AGAINST THE PROPOSED AND APPROVED SCOPES OF WORK. X X X X X X false true false false false false false false false Christopher Wing Director 0 626966 0 331820 0 21533 0 522786 0 25105 0 1528210 0 331820 Bruce Chernof President/CEO 330511 0 138753 0 19710 0 154488 0 0 643462 0 138753 0 Rene Seidel Secretary/Treasurer 193598 0 29520 0 19731 0 35844 0 13047 0 291740 0 29520 0 Gretchen Alkema VP Policy & Communications 193117 0 33948 0 18321 0 36463 0 17626 0 299475 0 33948 0 Erin Westphal Program Officer 115271 0 12020 0 320 0 17455 0 25143 0 170209 0 12020 0 Karen Scheboth Director of Grants Administrat 111981 0 11903 0 1615 0 17149 0 19594 0 162242 0 11903 0 Eric Thai Director of Finance 111846 0 10471 0 292 0 16361 0 12213 0 151183 0 10471 0 PART I, LINE 4B THE COMPANY PROVIDES A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN TO ONLY SENIOR EXECUTIVES OF THE COMPANY. SENIOR V.P. AND OFFICERS ARE ELIGIBLE TO PARTICIPATE IN THE SECTION 457(F) PLAN. THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE COMPANY'S SECTION 457(F) DURING THE YEAR 2014: BRUCE CHERNOF. COMPENSATION PURSUANT TO THE TERMS AND CONDITIONS OF THE SECTION 457(F)PLAN, A PARTICIPANT BECOMES 100% VESTED IN THE EMPLOYER CONTRIBUTION UPON THE OCCURRENCE OF ANY OF THE FOLLOWING WHILE THE PARTICIPANT IS AN EMPLOYEE (I) THE PARTICIPANT HAS TEN YEARS OF CONTINUOUS EMPLOYMENT,COUNTING ONLY SERVICE AFTER DECEMBER 31, 2005; (II) THE PARTICIPANT REACHES THE AGE OF 62 AND HAS 5 YEARS OF CONTINUOUS EMPLOYMENT; PARTICIPANTS ARE ALSO 100% VESTED FOR ANY OF THE INVOLUNTARY OCCURANCES: (I) THE PARTICIPANT'S INVOLUNTARY TERMINATION; (II) THE PARTICIPANT'S DISABILITY; (III) THE PARTICIPANT'S DEATH. Form 990, Part VI, Section A, line 4: In 2014, the Board approved revisions to the Bylaws and the four Committee Charters. The substantive changes to the Bylaws (in addition to some word clean-up, i.e., using the term "Chair" instead of "Chairman") was to shorten and simplify the description of the tasks of each of the four Board Committees. At the same time the Board clarified and standardized the language of all four Board Committee Charters, which provide the detail of the tasks to be completed by each Board Committee. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PREPARED BY BDO USA, LLP, WORKING IN CONJUNCTION WITH SCAN'S FINANCE DEPARTMENT AND THE SCAN FOUNDATION DIRECTOR OF FINANCE. THE SCAN FOUNDATION DIRECTOR OF FINANCE AND VP OF PROGRAM & OPERATIONS HAVE A DIRECT RESPONSIBILITY FOR THIS EFFORT. AFTER AN INITIAL DRAFT OF THE FORM 990 IS PREPARED, IT IS CIRCULATED FOR REVIEW AND COMMENT BY RELEVANT MEMBERS OF THE EXECUTIVE TEAM WHO HAVE RESPONSIBILITY AND/OR KNOWLEDGE ABOUT THE VARIOUS MATTERS DISCLOSED AND/OR DESCRIBED IN THE FORM. GENERAL COUNSEL OF THE SCAN FOUNDATION, IN PARTICULAR, REVIEWS THE FORM 990 AND ENSURES ACCURACY OF DESCRIPTIONS AND THAT DISCLOSURE IS COMPLETE. THE DRAFT FORM 990 IS REVIEWED BY THE AUDIT COMMITTEE OF THE BOARD OF DIRECTORS OF THE SCAN FOUNDATION, AND IS SHARED WITH ALL MEMBERS OF THE BOARD OF DIRECTORS AFTER IT IS READY FOR FILING BUT BEFORE IT IS FILED. Form 990, Part VI, Section B, line 12C: The SCAN Foundation regularly and consistently monitors and enforces compliance with its conflict of interest policy through annual circulation of a conflict of interest questionnaire which is required to be answered by all members of the Board of Directors, officers, and all employees. The Director of Grants Administration collects all completed conflict of interest questionnaires in late June and forwards any questionnaire where a conflict is indicated to the General Counsel of The SCAN Foundation. Counsel is responsible for reviewing and monitoring conflicts of interest, sharing them with the Board in Executive Session, and in particular is in a position to enforce compliance with the policy on an ongoing basis. Form 990, Part VI, Section B, line 15a: The process for determining the compensation of the Chief Executive Officer of The SCAN Foundation is conducted by the Compensation Committee of the Board of Directors of The SCAN Foundation, all of the voting members of which are independent persons. In determining the Chief Executive Officer's compensation the Compensation Committee worked with and relied upon the counsel and expertise of Ernst & Young, a consultant with well established experience and expertise in the area of non-profit organization executive compensation and compliance with the intermediate sanctions requirements applicable to such compensation. Ernst & Young provides an "Executive Total Rewards Report" to the Compensation Committee every year which furnishes the basis for the establishment of the Chief Executive Officer's compensation package during the following year. The Ernst & Young Executive Compensation Report is based on a review of the executive compensation practices of a variety of organizations that are considered comparable to The SCAN Foundation based on various metrics. The Compensation Committee deliberates on the issue of the Chief Executive Officer's compensation package in light of the Ernst & Young Executive Compensation Report and questions are asked of, and answered by Ernst & Young, regarding such report and other matters relevant to such package. Based on such deliberations, the Compensation Committee makes a recommendation to the Board of Directors of The SCAN Foundation regarding the compensation package for the following year. The full Board of Directors of The SCAN Foundation deliberates and then votes on such recommendation; the Chief Executive Officer is recused for the entirety of such deliberations and vote. The minutes of the Compensation Committee and the Board of Directors for these meetings are contemporaneously prepared for and reflect such deliberations and decisions. Form 990, Part VI, Section B, line 15b: THE PROCESS FOR DETERMINING THE COMPENSATION OF OFFICERS OR OTHER KEY EMPLOYEES OF THE SCAN FOUNDATION IS CONDUCTED BY THE HUMAN RESOURCES DEPARTMENT, THE CHIEF EXECUTIVE OFFICER AND THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF THE SCAN FOUNDATION, ALL OF THE VOTING MEMBERS OF WHICH ARE INDEPENDENT PERSONS. IN DETERMINING SUCH EMPLOYEE'S COMPENSATION, THE HUMAN RESOURCES DEPARTMENT AND COMPENSATION COMMITTEE RELIED UPON THE COUNSEL AND EXPERTISE OF ERNST & YOUNG, A CONSULTANT WITH WELL ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NON-PROFIT ORGANIZATION EXECUTIVE COMPESATION AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. ERNST & YOUNG PROVIDES AN "EXECUTIVE COMPENSATION REPORT" TO THE HUMAN RESOURCES DEPARTMENT AND COMPENSATION COMMITTEE EVERY YEAR WHICH FURNISHES THE BASIS FOR THE ESTABLISHMENT OF SUCH EMPLOYEES' COMPENSATION PACKAGE DURING THE FOLLOWING YEAR. ERNST & YOUNG EXECUTIVE COMPENSATION REPORT IS BASED ON A REVIEW OF THE EXECUTIVE COMPENSATION PRACTICES OF A VARIETY OF ORGANIZATIONS THAT ARE CONSIDERED COMPARABLE TO THE SCAN FOUNDATION BASED ON VARIOUS METRICS. THE CHIEF EXECUTIVE OFFICER MAKES A RECOMMENDATION TO THE COMPENSATION COMMITTEE WITH RESPECT TO EACH OF SUCH EMPLYEES' COMPENSATION PACKAGE IN LIGHT OF THE ERNST & YOURNG EXECUTIVE COMPENSATION REPORT. AT THE COMPENSATION COMMITTEE MEETING ADDRESSING SUCH MATTERS, QUESTIONS ARE ASKED OF, AND ANSWERED BY ERNST & YOUNG, REGARDING SUCH REPORT AND OTHER MATTERS RELEVANT TO Such PACKAGE. BASED ON SUCH DELIBERATIONS, THE COMPENSATION COMMITTEE MAKES A DECISION REGARDING THE COMPENSATION PACKAGE FOR SUCH EMPLOYEES THE FOLLOWING YEAR. THE MINUTES OF THE COMPENSATION COMMITTEE FOR THIS MEETING ARE PREPARED SUBSTANTIALLY CONTEMPORANEOUSLY AND SUBSTANTIATE SUCH DELIBERATIONS AND DECISIONS. THE PROCESS FOR DETERMINING THE COMPENSATION OF THE INDEPENDENT DIRECTORS OF THE SCAN FOUNDATION IS IN ACCORDANCE WITH THE SCAN FOUNDATION'S "INDEPENDENT DIRECTORS' COMPENSATION PHILOSOPHY" AND IS SIMILAR TO THE COMPENSATION PROCESS EMPLOYED BY THE SCAN FOUNDATION WITH RESPECT TO ITS SENIOR EXECUTIVES. ELEMENTS OF COMPENSATION INCLUDE AN ANNUAL RETAINER FOR BOARD MEMBERS AND COMMITTEE CHAIRS. IN DETERMINING SUCH COMPENSATION, THE BOARD OF THE FOUNDATION AND THE COMPENSATION COMMITTEE OF THE FOUNDATION RELY UPON THE COUNSEL AND EXPERTISE OF ERNST & YOUNG, AN INDEPENDENT CONSULTANT, WITH WELL-ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NON-PROFIT ORGANIZATION COMPENSATION AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. THE COMPENSATION COMMITTEE RETAINS ERNST & YOUNG TO CONDUCT A STUDY OF INDEPENDENT DIRECTOR COMPENSATION PRACTICES BIENNIALLY INCLUDING BENCHMARK DATA. FORM 990, PART VI, SECTION C, LINE 19 THE SCAN FOUNDATION GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE CURRENTLY NOT MADE AVAILABLE TO THE PUBLIC. THE SCAN FOUNDATION MAKES THEIR FORM 990 AND AUDITED FINANCIAL STATEMENTS AVAILABLE FOR PUBLIC INSPECTION. SCAN GROUP 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 953826037 ADMIN SUPPORT CA 501(C)(3) LINE11TYPE2 NA true SCAN HEALTH PLAN 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 953858259 MEDICARE ADVA CA 501(C)(3) LINE 9 SCAN GROUP true SCAN LONG TERM CARE 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 204607594 MEDICADE MANA AZ 501(C)(4) N/A SCAN HEALTH true SCAN HEALTH PLAN ARIZONA 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 731729007 MEDICARE ADVA AZ 501(C)(4) N/A SCAN GROUP true SCAN 360 CARE 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 352443412 MEDICARE & ME CA 501(C)(3) LINE 9 SCAN GROUP true SCAN MANAGEMENT SERVICES COMPANY 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 900860955 MANAGEMENT CA SCAN GROUP C CORP 0 0 true SCAN WELLNESS CENTER PC 3800 KILROY AIRPORT Way LONG BEACH CA 90806 900860971 HEALTH CARE CA SCAN GROUP C CORP 0 0 true SCAN HEALTH CHECK ASSESSMENT CENTERS 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 462962358 healthcare CA NA C CORP 0 0 true SCAN CALIFORNIA MANAGEMENT COMPANY INC 3800 KILROY AIRPORT WAY LONG BEACH CA 90806 462951831 Management CA SCAN GROUP C CORP 0 0 true false false false false false false false false false false false false true true true false false false