2015-11-13T12:35:08-06:00 2014-12-31 990 2014-01-01 141678068 HEALTH QUEST SYSTEMS INC % KATHERINE BACHERVP FIN OPER HEAL 8454759500 1351 ROUTE 55 LAGRANGEVILLE NY 12540 GARY ZMRHAL SVP/CFO 8454759500 2015-11-13 2014 2016-04-25 22:37:26Z LUKE MCGUINNESS PRESIDENTCEO 1351 ROUTE 55 SUITE 200 LAGRANGEVILLE NY 12540 151239957 false X WWW.HEALTH-QUEST.ORG X 1987 NY PROVIDE SUPPORT TO MEMBER ORGANIZATIONS OF THE HEALTH QUEST SYSTEMS 15 14 1041 0 6355 4000 144386610 149825725 0 -36000 108773 1407232 144501738 151200957 0 0 0 0 83767426 91739366 0 0 0 60734297 63648285 144501723 155387651 15 -4186694 108814063 92903959 108815163 97091753 -1100 -4187794 X THE MISSION STATEMENT OF THE HEALTH QUEST SYSTEM AND IT'S AFFILIATED ORGANIZATIONS IS TO IMPROVE THE HEALTH OF THE COMMUNITIES THAT THEY SERVE IN THE HUDSON VALLEY BY PROVIDING QUALITY PATIENT CARE BASED ON OUR COMMITMENT TO EXCELLENCE, INNOVATION AND STATE OF THE ART TECHNOLOGIES. HEALTH QUEST SYSTEMS, INC IS THE CORPORATE ENTITY PROVIDING SUPPORT TO ITS MEMBER ORGANIZATIONS. false false 73098349 127172259 To provide executive and administrative oversight to the member organizations of Health Quest (See Sch O for listing of Affiliates). Health Quest provides centralized administration, finance (including payroll, accounts payable, decision support, managed care, budgets and reimbrusement), patient financial services, purchasing, business development, human resources, compliance, internal audit, lab management, Biomed services, construction and property management, legal counsel, physician recruitment, medical affairs management and hospitality/security services management in order to further the exempt purpose of Health Quest. This has lead to numerous operating efficiencies at each member organization. 19435726 22653466 HQ Lab provides clinical diagnostic services to affiliate hospitals for both inpatient and outpatient services. 92534075 true false true true false false false false false true false false true true false false true false false true false false false false false false false false true false false false false false false false false false false false false true true false false false true 420 0 1041 true false true BB false false false false false false false false X 15 14 false false false false false false false true true false true true true true true true true true true true false NY X KATHERINE BACHERVP FIN OPER 8454759500 1351 ROUTE 55 SUITE 200 POUGHKEEPSIE NY 12540 RICHARD FRIEDLAND MD TRUSTEE 1.0 0.0 X 0 0 0 JOSEPH DIVESTEA TRUSTEE 1.0 0.0 X 0 0 0 ROBERT R DYSON CHAIRMAN 1.0 0.0 X 0 0 0 MARY MADDEN SECOND VICE CHAIRMAN 1.0 0.0 X 0 0 0 MICHAEL MOSES MD TRUSTEE 1.0 0.0 X 0 0 0 MICHAEL J NESHEIWAT MD TRUSTEE 1.0 0.0 X 0 0 0 WAYNE NUSSBICKEL TRUSTEE 1.0 0.0 X 0 0 0 LILLIAN S WEIGERT TRUSTEE 1.0 0.0 X 0 0 0 GREGORY W RAKOW FIRST VICE CHAIRMAN 1.0 0.0 X 0 0 0 STEVEN V LANT IMMEDIATE PAST CHAIR 1.0 0.0 X 0 0 0 JASON COHEN MD TRUSTEE 1.0 0.0 X 0 0 0 EVAN MELTZER NDH CHAIRMAN 1.0 0.0 X 0 0 0 JEFFREY J REDFIELD PHC CHAIRMAN 1.0 0.0 X 0 0 0 JOHN L MCGUINNESS CEO AND PRESIDENT 40.0 0.0 X X 1422455 0 19503 CARLA GUDE VBMC CHAIRMAN 1.0 0.0 X 0 0 0 KATHERINE BACHER INTERIM CFO/TREASURER 40.0 0.0 X 294501 0 16923 ROBERT DIAMOND SVP AND CIO 40.0 0.0 X 813183 0 20059 RONALD TATELBAUM EVP AND CMO OF HQ 40.0 0.0 X 745170 0 50100 DAVID PING SVP STRATEGIC PLANNING 40.0 0.0 X 608421 0 43642 PATRICK BOREK SVP HUMAN RESOURCES 40.0 0.0 X 354141 0 42106 DENISE GEORGE SVP AND NDH PRESIDENT 40.0 0.0 X 776907 0 45493 TIM CLEARY SVP COMPLIANCE/INTERNAL AUDIT 40.0 0.0 X 249227 0 41184 ROBERT FRIEDBERG EVP HQ AND VBMC PRESIDENT 40.0 0.0 X 786636 0 26885 JAMES CALDAS PHC PRESIDENT 40.0 0.0 X 322521 0 20184 ROBERT KIRK PRES OF PHYSICIAN ENTERPRISE 40.0 0.0 X 380392 0 12449 MICHAEL HOLZHUETER SVP GENERAL COUNSEL 40.0 0.0 X 438513 0 8373 LAWRENCE BELL VP OF CONSTRUCTION 40.0 0.0 X 189713 0 0 TIMOTHY MASSIE SVP PUBLIC AFFAIRS/GOV'T RELAT 40.0 0.0 X 360646 0 13014 JANET READY PRESIDENT VBMC 40.0 0.0 X 484148 0 41406 MAUREEN ZIPPARO COO - PHC 40.0 0.0 X 305243 0 35733 CATHERINE YURKON VP OF REIMB/FINANCIAL PLANNING 40.0 0.0 X 315988 0 26169 JOHN CONLON VP MEDICAL AFFAIRS, PHC 40.0 0.0 X 336529 0 227882 JOHN SABIA MD VP OF MEDICAL AFFAIRS NDH 40.0 0.0 X 411776 0 42247 MICHAEL T WEBER FORMER PRESIDENT/CEO 0.0 0.0 X 817449 0 0 MARYANN KEPPLE FORMER CFO/TREASURER 0.0 0.0 X 779221 0 17076 FREDERICK THOMAS FORMER CORP SECRETARY/LEGAL CO 0.0 0.0 X 104511 0 0 DONNA MCGREGOR FORMER INTERIM CO-CEO 0.0 0.0 X 1184606 0 41217 DANIEL ARONZON MD FORMER CEO OF VBMC 0.0 0.0 X 193562 0 0 12675459 0 791645 24 true true false PREMIER MEDICAL GROUP 1 COLUMBIA STREET SUITE 390 POUGHKEEPSIE NY 12601 MEDICAL DIR/ON CALL 1822198 KIRCHHOFF MEDICAL PROPERTIES LLC 199 WEST RD-SUITE 100 PLEASANT VALLEY NY 12569 CONSTRUCTION 7447528 ISEMAN CUNNINGHAM RIESTER HYDE LL 9 THURLOW TERRACE ALBANY NY 12203 LEGAL SERVICES 3091372 HUDSON VALLEY CARDIOVASCULAR ASSOCI 1 COLUMBIA STREET POUGHKEEPSIE NY 12601 MED DIR/ON CALL COV 1722618 THE CHARTIS GROUP LLC DEPARTMENT 5925 CAROL STREAM IL 60122 STRATEGIC PLANNING 4152836 68 4000 4000 MANAGEMENT FEES 900099 127172259 127172259 LAB SERVICES 621500 22653466 22653466 149825725 0 0 0 0 0 0 3000 39000 -36000 -36000 -36000 0 0 0 ST. FRANCIS - REIMBURSEMENT OF LEGAL COSTS 1000000 1000000 CAPITAL ONE/CLASS ACTION REFUND 203518 203518 CONTINUING EDUCATION 118263 118263 85451 85451 1407232 151200957 151196957 0 0 0 0 9706254 4701080 5005174 0 63602940 37285340 26317600 2959079 1566160 1392919 10774968 5779614 4995354 4696125 2485531 2210594 0 2570437 8563 2561874 674704 674704 25885 25885 0 6210 6210 14321810 6664145 7657665 0 6267332 6267332 2604904 1498893 1106011 8815337 7752371 1062966 0 2323759 622053 1701706 427853 243233 184620 0 488382 266474 221908 227042 22704 204338 0 3808680 2513265 1295415 1054193 105544 948649 PURCHASED SERVICES 9205856 5350110 3855746 MAINTENANCE & SVC CONTRACTS 1523234 1150367 372867 DUES AND SUBSCRIPTIONS 344118 68899 275219 OTHER EXPENSES 1771626 995474 776152 7186923 7186923 155387651 92534075 62853576 0 8070136 6080429 0 0 0 0 0 0 0 0 0 0 10603 45549 1219841 1165158 3899385 3859215 33508504 17612454 15852575 15896050 0 0 0 0 0 0 0 0 79761523 65857558 108814063 92903959 32387911 31131724 0 0 0 0 0 0 0 0 0 0 18142970 1925072 0 0 58284282 64034957 108815163 97091753 X -1100 -4187794 0 0 0 0 -1100 -4187794 108814063 92903959 -4186694 X false true X true false X 0 10057 6825 6355 4000 27237 90935812 101026222 127259348 144386610 149825725 613433717 0 0 0 90935812 101036279 127266173 144392965 149829725 613460954 0 0 0 613460954 0 0 0 0 107507 102368 68856 108773 1407232 1794736 91043319 101138647 127335029 144501738 151236957 615255690 0.99708 0.99920 0.00000 0.00000 X SCH A, PART III, SECTION B, LINE 12 REIMBURSEMENT OF LEGAL COSTS - HEALTH QUEST TOOK PART IN A BIDDING 25885 0 0 false false false true 11687 false false true 11687 true 2511 false 25885 false PART I-A LINE 1 Health Quest's lobbying efforts are divided into three components - national, state and local. On the national front, Health Quest retains the firm of DeBrunner and Associates to provide assistance in these efforts. Typically DeBrunner arranges quarterly meetings with the Congressional delegation that represents Health Quest. During these meetings we discuss things like health reform, wage index issues, shortages of key personnel like physicians and nurses, and the efforts that Health Quest makes to provide better access to care and higher quality of care to our patients. In addition, we participate with HANYS on the lobbying days that they have in Washington, D.C. On the state level, we participate in advocacy days sponsored by HANYS and meet on a regular basis with our state assemblymen and senators. Locally, we meet with village and town supervisors, mayors and county legislators to discuss upcoming plans and services that we will offer. 5158922 600523 4558399 26156733 17011930 9144803 2192848 0 2192848 15896050 DUE FROM AFFILIATES - S/T 20610492 DUE FROM AFFILIATES-L/T 30256421 RETIREMENT INVESTMENTS 2874342 DEFERRED FINANCING FEES 7145 INSURANCE RECEIVABLE 10868306 OTHER RECEIVABLES 1076236 PREMIER INVESTMENT 164616 65857558 0 DUE TO AFFILIATES 10243441 3RD PARTY LIABILITIES 14845999 RETIREMENT INVESTMENTS 2961575 DUE TO AFFILIATES L/T 35983942 64034957 Central America and the Caribbean Program Services INSURANCE 9358027 9358027 9358027 false false true false false false SCH F, PART I, LINE 3, COLUMN F METHOD TO ACCOUNT FOR EXPENDITURES ON ORGANIZATION'S FINANCIAL STATEMENTS WAS THE ACCRUAL METHOD. X X true true X X X X X true true false false false false false MICHAEL T WEBER FORMER PRESIDENT/CEO 0 0 0 0 817449 0 0 0 0 0 817449 0 15300 0 MARYANN KEPPLE FORMER CFO/TREASURER 124022 0 225000 0 430199 0 15600 0 1476 0 796297 0 15300 0 ROBERT DIAMOND SVP AND CIO 321751 0 412903 0 78529 0 15600 0 4459 0 833242 0 15300 0 RONALD TATELBAUM EVP AND CMO OF HQ 540788 0 103150 0 101232 0 15600 0 34500 0 795270 0 15300 0 DAVID PING SVP STRATEGIC PLANNING 351131 0 217729 0 39561 0 15600 0 28042 0 652063 0 15300 0 PATRICK BOREK SVP HUMAN RESOURCES 293436 0 39051 0 21654 0 15600 0 26506 0 396247 0 15300 0 FREDERICK THOMAS FORMER CORP SECRETARY/LEGAL CO 0 0 0 0 104511 0 0 0 0 0 104511 0 6271 0 DANIEL ARONZON MD FORMER CEO OF VBMC 0 0 0 0 193562 0 0 0 0 0 193562 0 0 0 DENISE GEORGE SVP AND NDH PRESIDENT 354396 0 393023 0 29488 0 15600 0 29893 0 822400 0 15300 0 DONNA MCGREGOR FORMER INTERIM CO-CEO 69639 0 330000 0 784967 0 15600 0 25617 0 1225823 0 15300 0 TIM CLEARY SVP COMPLIANCE/INTERNAL AUDIT 211049 0 31071 0 7107 0 14527 0 26657 0 290411 0 15300 0 JANET READY PRESIDENT VBMC 142002 0 52619 0 289527 0 14576 0 26830 0 525554 0 15300 0 MAUREEN ZIPPARO COO - PHC 145368 0 0 0 159875 0 11713 0 24020 0 340976 0 15300 0 CATHERINE YURKON VP OF REIMB/FINANCIAL PLANNING 296699 0 19289 0 0 0 15600 0 10569 0 342157 0 15300 0 JOHN CONLON VP MEDICAL AFFAIRS, PHC 319032 0 17497 0 0 0 2182 0 225700 0 564411 0 0 0 JOHN L MCGUINNESS CEO AND PRESIDENT 1206923 0 0 0 215532 0 0 0 19503 0 1441958 0 0 0 KATHERINE BACHER INTERIM CFO/TREASURER 281113 0 12893 0 495 0 15600 0 1323 0 311424 0 0 0 ROBERT FRIEDBERG EVP HQ AND VBMC PRESIDENT 588461 0 100000 0 98175 0 0 0 26885 0 813521 0 0 0 JAMES CALDAS PHC PRESIDENT 280635 0 0 0 41886 0 0 0 20184 0 342705 0 0 0 ROBERT KIRK PRES OF PHYSICIAN ENTERPRISE 339927 0 0 0 40465 0 0 0 12449 0 392841 0 0 0 MICHAEL HOLZHUETER SVP GENERAL COUNSEL 238897 0 150000 0 49616 0 0 0 8373 0 446886 0 0 0 LAWRENCE BELL VP OF CONSTRUCTION 34615 0 150000 0 5098 0 0 0 0 0 189713 0 0 0 TIMOTHY MASSIE SVP PUBLIC AFFAIRS/GOV'T RELAT 230769 0 90000 0 39877 0 0 0 13014 0 373660 0 0 0 JOHN SABIA MD VP OF MEDICAL AFFAIRS NDH 382741 0 29035 0 0 0 15600 0 26647 0 454023 0 0 0 SCH J, PART I, LINE 4A AND 4B COMPENSATION IN 2014, HQ UNDERWENT A MAJOR EXECUTIVE MANAGEMENT RESTRUCTURING. INCLUDED IN THE WAGES LISTED ON SCHEDULE J FOR FORMER EMPLOYEES ARE RETENTION BONUSES, SEVERANCE PAYMENTS (LISTED IN DETAIL BELOW) AND TAX DEFERRED DISTRIBUTIONS. LINE 4A - SEVERANCE AGREEMENTS FOR FORMER OFFICERS - Daniel Aronzon, MD - 2 years +1 month, effective term date 1/1/2012 - $59,938, paid in 2014 Michael T. Weber - 24 months, effective term date 3/11/2013 - $817,449, paid in 2014 Frederick Thomas - 12 months, effective term date 6/30/2013 - $104,511, paid in 2014 Janet Ready - 12 months, effective term date 4/30/14 - $290,287, paid in 2014 Jeffrey Kellogg - 12 months, effective term date 5/17/14 - $148,555, paid in 2014 Maureen Zipparo - 12 months, effective term date 6/2/14 - $159,633, paid in 2014 Donna McGregor - 12 months, effective term date 2/2/14 - $390,392, paid in 2014 Maryann Kepple - 12 months, effective term date 3/6/14 - $385,909, paid in 2014 LINE 4B - SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN - The Section 457(f) Plan is a non-qualified, tax-sheltered opportunity to defer income and accumulate additional income and accumulate income for intermediate or long-term savings goals above the legislative limits imposed on the qualified pension plans. Under the 457(f) employer contribution plan, eligible employees have the option of electing to receive their employer contribution as taxable income or to defer the contribution. There is a 6% employer contribution along with a possible remaining amount that would depend upon whether the 6% 403(b) employer contribution caps out ($15,600 in 2014, subject to increases). Elections for both the 457(f) employee contribution or the 457(f) employer contribution are made in the tax year prior to the year of deferral. SCH J, PART I, LINE 1A LINE 1A TRAVEL FOR COMPANIONS AS PART OF RELOCATION EXPENSES FOR SOME EXECUTIVES, HQ PAID FOR THEIR SPOUSE TO RELOCATE. LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS HQ GROSSED UP EARNINGS FOR THREE EXECUTIVES FOR EXPENSES INCURRED FOR TRAVEL ASSOCIATED WITH RELOCATION. THE VALUE OF THE TRAVEL AND GROSS UP WERE TREATED AS TAXABLE INCOME ON THEIR FORM W-2. FORM 990 PART VI SECTION B LINE 11B, 12C AND 15 - POLICIES LINE 11B - PRIOR TO FILING, A DRAFT OF THE COMPLETED FORM 990 WAS REVIEWED BY INTERNAL MANAGEMENT. AFTER THAT REVIEW WAS COMPLETE, THE FORM 990 WAS POSTED TO AN INTRANET SITE FOR HQ BOARD MEMBERS TO RETRIEVE AND REVIEW (A PAPER COPY WAS MAILED UPON THEIR REQUEST). CONTACT INFORMATION WAS PROVIDED SHOULD ANY QUESTIONS ARISE. LINE 12C - ALL POTENTIAL CONFLICTS OF INTEREST ARE REVIEWED BY THE HEALTH QUEST BUSINESS ETHICS COMMITTEE ON BEHALF OF THE AFFILIATE. IN ADDITION, CONFLICT OF INTEREST STATEMENTS ARE COMPLETED BY BOARD MEMBERS AND KEY EMPLOYEES ON AN ANNUAL BASIS AND REVIEWED BY THE HEALTH QUEST CORPORATE COMPLIANCE DEPARTMENT. LINE 15 - COMPENSATION FOR THE CEO, TOP MANAGEMENT AND OTHER KEY EMPLOYEES IS ESTABLISHED BY THE HEALTH QUEST EXECUTIVE COMPENSATION COMMITTEE BASED ON INFORMATION AND SUPPORT OF AN INDEPENDENT THIRD PARTY. FORM 990 PART VI SECTION C LINE 19 - DISCLOSURE LINE 19 - POLICIES AND FINANCIAL STATEMENTS FOR THE AFFILIATES ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE DOCUMENTS ARE PROVIDED EITHER ELECTRONICALLY OR AS PAPER COPIES. IN ADDITION, CERTAIN FINANCIAL INFORMATION IS AVAILABLE ON VARIOUS WEBSITES DUE TO REGULATORY FILINGS SUCH AS THE 990 AND BOND HOLDER AGREEMENTS. SCHEDULE R PART II - RELATED TAX EXEMPT ORGANIZATIONS Entity Tax ID# Primary Activity Legal Domicile Exempt Code Status Public Charity Status Directo controlling Entity Vassar Brothers Medical Center 14-1338586 Hospital NY 501c3 Box 3 HQ The Foundation for Vassar Brothers Medical Center 14-1736429 Fundraising NY 501c3 Box 9 HQ Riverside Diversified Services, Inc (Parent) 14-1675545 Education NY 501c3 Box 9 HQ Alamo Ambulance Service, Inc 14-1745417 Transport NY 501c3 Box 9 HQ Health Quest Home Care, Inc (Certified) 14-1788412 Home Health NY 501c3 Box 9 HQ Health Quest Home Care, Inc (Licensed) 14-1788410 Home Health NY 501c3 Box 9 HQ Northern Duchess Hospital 14-1338467 Hospital NY 501c3 Box 3 HQ Northern Dutchess Residential Health Care Facility 22-3129608 Nursing Home NY 501c3 Box 9 HQ NDH Foundation 14-1776208 Fundraising NY 501c3 Box 9 HQ Putnam Hospital Center 14-6019179 Hospital NY 501c3 Box 3 HQ Putnam Hospital Center Foundation 06-1399319 Fundraising NY 501c3 Box 9 HQ Health Quest Medical Practice, PC 56-2669185 Medical Care NY 501c3 Box 3 HQ Health Quest Urgent Medical Practice, PC 80-0152047 Medical Care NY 501c3 Box 3 HQ Health Serve Information Technologies, LLC 14-1797086 IT Support NY 501c3 Box 3 HQ Health Quest Laboratory Support Services, LLC 45-4370644 Medical Laboratory NY 501c3 Box 3 HQ One Columbia Street, LLC 46-1626016 Real Estate Mgmt NY 501c3 Box 3 HQ Hudson Valley Cardiovasular Practice, PC 46-3756713 Medical Care NY 501c3 Box 3 HQ Health Quest VEBA Health Savings Trust 27-4847462 VEBA NY 501c9 Box HQ SCHEDULE R PART V LINE 2(1) - TRANSACTIONS WITH RELATED ORGANIZATIONS Allocation of Support Services Shared Expenses Cash Funding General: The following services are considered shared services for Health Quest affiliates and the cost to provide these services are allocated to each entity which benefits from the service based on a pre defined allocation methodology: 1. Specialty Staffing a. VBMC Surgical b. Radiology c. Oncology d. VBMC Sleep Lab e. PT/OT/ST f. Cardiac Rehab 2. Clinical Management a. Emergency Room b. Pharmacy c. Cardiac d. Oncology 3. Revenue Cycle including health information management, budgets and reimbursement, revenue cycle, system business office, patient access oversight, financial clearance center, managed care and decision support 4. Facilities including courier service, construction, property management, facility operations, food service management and security 5. Business Development including strategic planning, marketing and public relations, answering service and community education 6. Corporate Finance including accounts payable, payroll, general accounting, purchasing, supply chain and mailroom, practice management billing and management engineering 7. Internal Audit and Compliance 8. Practice management operations including physician recruitment, physician management and centralized scheduling 9. Human Resources and learning and development 10. Administrative including Executive office, Hospital Support and risk management 11. Legal Counsel 12. Information Technology and Medical Technology Services (MTS) Description of Services: 1. Specialty staffing a. Provides non union staffing services for various specialties to the hospitals, offsite ancillary locations and the Fishkill Medical Mall 2. Clinical management includes management oversight to system consolidated clinical services 3. Revenue Cycle - a. Health Information Management functions includes coding and transcription of medical records for all 3 hospitals b. Budget functions include preparation of annual budgets, variance reporting and maintenance of the budget module Reimbursement functions include preparation of annual cost reports, analysis of third party rate accounts and third party audits c. Revenue cycle functions include charge master analysis and development of revenue producing charges, compliance with CPT coding and establishment of appropriate charges d. System business office services includes producing claims for third party payers and private pay patients, payment processing, periodic reporting, accounts receivable analysis, charity care application process, denial management, collection and follow up for the hospitals. Patient access and financial clearance center includes oversight of all centralized registration areas at the hospitals and pre-authorization for numerous hospital services to insure compliance with third party regulations e. Managed Care functions include contract negotiations and analysis of contract terms f. Decision Support functions include cost accounting reporting, maintenance of HBI (Horizon Business Insight) reporting and the contract management system 4. Facilities - a. Courier service provides delivery services internally throughout the HQ system and bank deposit drop offs b. Construction and property management functions include contracting services for Health Quest projects and property management of all HQ facilities c. Facility operations include management oversight of the engineering departments for the hospitals d. Food Service management includes management oversight of food and nutrition departments for the hospitals e. Security functions include management oversight of all facilities to ensure the safest environment 5. Business Development - a. Strategic Planning functions include CON submissions, market data analysis and assistance with business plans b. Marketing includes advertising services, coordination of joint Health Quest advertisements and reduction of expenses associated with larger campaigns c. Public relations functions include coordination of Health Quest communication to external customers, patients and media d. Oversight of the outsourced answering services for physicians affiliated with the hospitals and HQMP e. Community education functions include training classes specific to life saving techniques 6. Finance - a. Accounts payable functions include scheduling vendor payments, insuring flow of goods and services, maintaining days cash on hand goals and maintaining days in accounts payable b. Payroll functions include biweekly employee payments and tax filings in accordance with Human Resources and Payroll policies c. General Accounting functions include preparation of financial statements, account analysis, contract reconciliation, tax filings, investment coordination, insurance coordination and coordination of internal and external audit functions d. Purchasing, supply chain and mailroom functions include procurement services, contract negotiations, price negotiations, capital purchase negotiations, management/distribution of hospital inventory, and central mailroom management e. Practice management billing functions include producing all claims for third party payers and private pay patients, payment processing, periodic reporting, accounts receivable analysis, charity care application process, denial management, collection and follow up services for all employed HQ physicians f. Management Engineering functions include evaluating each area within HQ to ensure compliance with various productivity benchmarks optimizing staffing ratios 7. Internal Audit and Compliance includes oversight of the corporate compliance program, internal audit, HIPAA compliance, contract review and compliance 8. Human Resource and learning and development functions include recruitment, compensation, benefit administration and employee training 9. Physician management operations functions include oversight of all HQ physician practices, physician recruitment functions, and the centralized scheduling office 10. Administrative functions include oversight of the Health Quest system, hospital management and risk management 11. Legal Counsel functions include internal legal services for HQ and coordination of all outsourced legal initiatives 12. Information Technology and MTS - a. IT provides information technology support for all applications and telephony support within HQ. In addition provides project management services for all new and upgrades to current IT applications. b. MTS/Biomed includes technical services provided to each hospital for equipment repair and maintenance Shared Expenses: In addition to services provided by support departments, certain insurance policies are consolidated for all Health Quest entities. These include property insurance, travel, crime, environmental, cyber risk and Directors and Officers insurance. Affiliate Cash Shortfalls: Affiliate cash shortfalls are funded by the entity(s) benefiting from the affiliate services. Examples include Health Quest Medical Practice and the Thompson House. The cash shortfall funding is based on the percentage of benefit received (percentage of revenue by division for HQMP and admissions to the Thompson House from the hospitals) Allocation Methodology: Net Revenue - lab management, budgets, revenue cycle, managed care, decision support, all facilities (excluding construction), business development, general accounting, management engineering, internal audit and compliance, executive office, legal, information technology and MTS # of visits/procedures - staffing specialties Historical trends - health information management, clinical management and hospital support Cash collections - patient accounting and the financial clearance center # of FTE's - payroll and human resources Non payroll expenses - accounts payable and purchasing Project based - construction # of FTE's allocated to physician sites - Practice management billing, operations and physician practice management System Benefits: 1. Financial planning 2. Revenue enhancement 3. Improved cash collections 4. Enhanced managed care contract rates 5. Optimized medical records coding 6. Savings for supplies, contracts, insurance and capital purchases 7. Staffing reduction through shared services 8. Enhanced employee benefit programs FORM 990 PART XII LINE 3 - OMB CIRCULAR A-133 HEALTH QUEST SYSTEMS, INC DID NOT RECEIVE MORE THAN $500,000 IN FEDERAL AWARDS IN 2014, AND DID NOT QUALIFY FOR AN A-133 AUDIT. SCHEDULE R PART V LINE 1Q - TRANSACTIONS WITH RELATED ORGANIZATIONS 2 ENTITY TAX ID # AMOUNT OF TRANSFER VASSAR BROTHERS MEDICAL CENTER 14-1338586 $87,636,590 NORTHERN DUTCHESS HOSPITAL 14-1338467 $14,534,899 PUTNAM HOSPITAL CENTER 14-6019179 $28,829,324 VBMC FOUNDATION 14-1736429 $588,644 NDH FOUNDATION 14-1776208 $200,421 PHC FOUNDATION 06-1399319 $75,266 RIVERSIDE MANAGEMENT SERVICES, INC 14-1675544 $35 RIVERSIDE DIVERSIFIED SERVICES, INC 14-1675545 $10,044 HUDSON VALLEY NEWBORN PHYSICIANS, PLLC 14-1811781 $789,505 HUDSON VALLEY EMERGENCY MEDICINE, PLLC 14-1810891 $0 ALAMO AMBULANCE SERVICES, INC 14-1745417 $18 HEALTH QUEST HOME CARE, INC 14-1788412 $408,014 HEALTHSERVE, LLC 14-1797086 $6,620 HEALTH QUEST MEDICAL PRACTICE, PC 56-2669185 $11,911,311 HQ URGENT MEDICAL PRACTICE, PC 80-0152047 $1,709,185 NORTHERN DUTCHESS RESID HEALTH CARE FA 22-3129608 $1,003,922 ONE COLUMBIA STREET, LLC 46-1626016 $324,099 HUDSON VALLEY CARDIOVASCULAR PRACTICE 46-3756713 $1,503,299 TOTAL ADMINISTRATIVE FEE $149,531,196 FORM 990, PART I, LINE 19 IN 2014, HQ CORPORATE INCURRED ADDITIONAL EXPENSES ASSOCIATED WITH A MANAGEMENT RESTRUCTURING AND CONSULTING EXPENSES RELATED TO ITS QUALITY PLATFORM AND STRATEGIC PLANNING. THESE ADDITIONAL COSTS WERE NOT PASSED BACK TO THE SUPPORTING ORGANIZATIONS, AND AS A RESULT A LOSS WAS RECOGNIZED. HQ LAB SUPPORT SERVICES LLC 45 READE PLACE POUGHKEEPSIE NY 12601 454370644 LAB SUPPORT NY 22653466 6460094 HQ SEE SCHEDULE 0 false false false false false false false false false false false false false false false true false false SEE SCHEDULE O FOR DETAILS