2015-08-14T13:55:50-05:00 2014-09-30 350921680 CROWE HORWATH LLP 175 POWDER FOREST DRIVE SIMSBURY CT 06089 990 2013-10-01 222546079 EASTERN CONNECTICUT HEALTH NETWORK INC EAST 8606461222 71 HAYNES STREET MANCHESTER CT 06040 MICHAEL D VEILLETTE CHIEF FINANCIAL OFFICER 8606461222 2015-08-14 1 BETH A THURZ P00346435 8606789200 2013 2016-04-25 22:37:26Z PETER J KARL 71 HAYNES STREET MANCHESTER CT 06040 32926761 0 X WWW.ECHN.ORG X 1995 CT INTEGRATED HEALTHCARE SYSTEM. 18 10 0 10 0 0 808889 503829 32671422 31601939 0 820993 0 0 33480311 32926761 0 0 0 0 0 0 0 0 0 33053515 32734317 33053515 32734317 426796 192444 18058695 18930663 21496234 14695801 -3437539 4234862 X ECHN'S MISSION IS TO IMPROVE THE HEALTH OF OUR COMMUNITIES WITH COMPETENCE AND COMPASSION. WE WILL PROVIDE HEALTH CARE SERVICES THAT EXCEED THE EXPECTATIONS OF OUR PATIENTS, PHYSICIANS AND COMMUNITY. 0 0 32734317 31609939 ECHN PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICIES WITHOUT CHARGE OR AT AMOUNTS LESS THAN ITS ESTABLISHED AND CONTRACTUAL RATES. ECHN DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE: AS SUCH, THESE AMOUNTS ARE NOT REPORTED AS REVENUE. CHARITY CARE FOR FY 2014 WAS $3,599,808 FOR 1,305 TOTAL APPROVED APPLICANTS AT MMH AND RGH. EXPENSES RELATED TO THE SERVICES PERFORMED FOR PATIENTS OF ECHN, INC. CONTRIBUTE IMPORTANTLY TO ITS EXEMPT PURPOSE BECAUSE THE EXPENSES ARE INCURRED IN THE DIAGNOSIS, CURE, MITIGATION, TREATMENT AND PREVENTION OF DISEASE, AND FOR MEDICAL PURPOSES AFFECTING THE STRUCTURE OR FUNCTION OF THE HUMAN BODY. ECHN, INC. PROVIDED NEEDED MEDICAL CARE TO THE COMMUNITY REGARDLESS OF ANY INDIVIDUAL'S ABILITY TO PAY. AT MMH AND RGH, 11,451 INPATIENTS WERE CARED FOR IN FY14 REPRESENTING 55,261 PATIENT DAYS; 369,471 OUTPATIENT VISITS WERE RECORDED.INCLUDED IN THE 11,451 INPATIENTS WERE 7,748 GOVERNMENT RELATED PATIENTS. THE GOVERNMENT INPATIENTS FALL INTO THE FOLLOWING GROUPS:MEDICARE 3,996MEDICARE MANAGED CARE 1,204MEDICAID 2,497CHAMPUS 51TOTAL GOV INPATIENTS 7,748 TOTAL NON GOV INPATIENTS 3,703TOTAL INPATIENTS 11,451INCLUDED IN THE 369,471 OUTPATIENT VISITS WERE 197,906 GOVERNMENT RELATED VISITS. THE VISITS ARE A PRODUCT OF GROSS REVENUE RELATIONSHIP TO TOTAL VISITS. THE GOVERNMENT VISITS FALL INTO THE FOLLOWING GROUPS:MEDICARE 100,925 MEDICARE MANAGED CARE 35,942MEDICAID 59,392CHAMPUS 1,647TOTAL GOV OUTPATIENTS 197,906TOTAL NON GOV OUTPATIENTS 171,565TOTAL OUTPATIENTS 369,471MMH AND RGH PROVIDED UNCOMPENSATED CARE TO 59,773 MEDICAID PATIENTS FOR A NET COMMUNITY BENEFIT AMOUNT OF $12,843,520 AFTER MEDICAID REIMBURSEMENT. ADDITIONAL INFORMATION REGARDING PROGRAMS FOR THE COMMUNITY AT MMH AND RGH: 2014 PERSONS 2014 BENEFITSCOMMUNITY HEALTH IMPROVEMENT SERVICES (A) COMMUNITY HEALTH EDUCATION (A1) 140,021 $ 558,852 COMMUNITY BASED CLINICAL SERVICES (A2) 196 $ 27,965 HEALTH CARE SUPPORT SERVICES (A3) 6,550 $ 460,231**** COMMUNITY HEALTH IMPROVEMENT SERVICES 146,767 $1,047,048HEALTH PROFESSIONS EDUCATION (B) PHYSICIANS/MEDICAL STUDENTS (B1) 46 $1,593,302 NURSES/NURSING STUDENTS (B2) 252 $ 927,861 OTHER HEALTH PROFESSIONAL EDUCATION (B3) 398 $ 147,737**** HEALTH PROFESSIONS EDUCATION 696 $2,668,900SUBSIDIZED HEALTH SERVICES (C) NEONATAL INTENSIVE CARE (C2) 169 $1,590,000 HOSPITAL OUTPATIENT SERVICES 5,068 $ 228,388 WOMEN'S AND CHILDREN'S SERVICES (C3) 1,401 $ 618,825 RENAL DIALYSIS SERVICES (C6) 619 $ 119,008 SUBSIDIZED CONTINUING CARE (C7) 900 $ 69,466 BEHAVIORAL HEALTH SERVICES (C8) 0 $ 945,650**** SUBSIDIZED HEALTH SERVICES 8,157 $3,571,337RESEARCH (D) OTHER RESEARCH (D3) 0 $ 289,359**** RESEARCH 0 $ 289,359FINANCIAL AND IN-KIND CONTRIBUTIONS (E) CASH DONATIONS (E1) 0 $ 32,697 GRANTS (E2) 0 $ 58,448 IN-KIND DONATIONS (E3) 13,768 $ 133,427**** FINANCIAL AND IN-KIND CONTIBUTIONS 13,768 $ 224,572COMMUNITY BUILDING ACTIVITIES (F) ECONOMIC DEVELOPMENT (F2) 0 $ 2,249 COMMUNITY SUPPORT (F3) 1,145 $ 152,235 COALTION BUILDING (F6) 0 $ 24,954 COMMUNITY HEALTH IMPROVEMENT ADVOCACY (F7) 0 $ 7,848 WORKFORCE DEVELOPMENT (F8) 169 $ 125,190**** COMMUNITY BUILDING ACTIVITIES 1,314 $ 312,476COMMUNITY BENEFT OPERATIONS (G) DEDICATED STAFF (G1) 14 $ 248,851**** COMMUNITY BENEFIT OPERATIONS 14 $ 248,851FINANCIAL ASSISTANCE FINANCIAL ASSISTANCE 1,305 $ 910,941**** FINANCIAL ASSISTANCE 1,305 $ 910,941GOVERNMENT SPONSORED HEALTH CARE MEDICAID 59,773 $12,843,520**** GOVERNMENT SPONSORED HEALTH CARE 59,773 $12,843,520TOTALS - COMMUNITY BENEFIT 231,794 $22,117,004 32734317 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 0 0 0 0 0 1 1 1 0 0 1 0 0 0 0 1 CJ 0 0 0 0 0 0 0 0 X 18 10 1 0 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X NICHOLAS JAMIESON 8606461222 320 MAIN STREET MANCHESTER CT 06040 DENNIS O'NEILL MD CHAIRMAN 1.00 4.00 X X 0 0 0 ROBIN MURDOCK MEGGERS VICE CHAIR 1.00 2.00 X X 0 0 0 MICHELE CONLON MD SECRETARY 1.00 2.00 X X 0 0 0 JOSEPH F JEAMEL JR TREASURER 1.00 2.00 X X 0 0 0 GORDON BRODIE MD TRUSTEE 1.00 2.00 X 0 0 0 THOMASINA CLEMONS TRUSTEE 1.00 2.00 X 0 0 0 ANTHONY DISTEFANO MD TRUSTEE 1.00 3.00 X 0 0 0 MILTON DOREMUS TRUSTEE 1.00 2.00 X 0 0 0 JOY DORIN TRUSTEE 1.00 2.00 X 0 0 0 DAVID GONCI TRUSTEE 1.00 2.00 X 0 0 0 REBECCA JANENDA TRUSTEE 1.00 2.00 X 0 0 0 LENORA WILLIAMS MD TRUSTEE 1.00 2.00 X 0 0 0 PETER J KARL PRESIDENT AND CEO 1.00 59.00 X X 0 1123212 122724 LOUISE ENGLAND TRUSTEE 1.00 3.00 X 0 0 0 DONALD GENOVESI TRUSTEE 1.00 2.00 X 0 0 0 KATHLEEN A O'NEILL TRUSTEE 1.00 3.00 X 0 0 0 KEITH J WOLFF TRUSTEE 1.00 2.00 X 0 0 0 ERIC KLOTER TRUSTEE 1.00 2.00 X 0 0 0 PAMELA LEWIS MD TRUSTEE 1.00 2.00 X 0 0 0 MICHAEL D VEILLETTE SVP, CHIEF FINANCIAL OFFIC 1.00 59.00 X 0 441275 58896 KEVIN G MURPHY THROUGH OCT 2013 EVP, TREASURER 1.00 59.00 X 0 605651 26680 DEBORAH GOGLIETTINO SVP, HUMAN RESOURCES 1.00 59.00 X 0 350668 46611 DENNIS MCCONVILLE SVP, STRATEGIC PLANNING 1.00 59.00 X 0 325180 93680 DEBORAH PARKER EVP, CHIEF CLINICAL OFFICE 1.00 59.00 X 0 439801 58046 JOEL REICH MD SVP, MEDICAL AFFAIRS 1.00 59.00 X 0 522615 136948 CHARLES COVIN THROUGH NOV 2013 VP AND CIO 1.00 59.00 X 0 158898 32253 LEONA CROSSKEY VP, QUALITY 1.00 59.00 X 0 177688 73043 ROBERT CARROLL MD MED DIR, EMERGENCY DEPARTM 1.00 59.00 X 0 449483 34371 JOYCE TICHY GENERAL COUNSEL 1.00 59.00 X 0 355681 28863 0 4950152 712115 0 0 1 0 0 503829 503829 AFFILIATION CHARGE 900099 29128254 29128254 OTHER HEALTHCARE RELATED 621990 1313957 1313957 PARTNERSHIP AND OTHER 900099 1159728 1159728 31601939 82052 82052 738941 0 738941 738941 738941 32926761 31601939 0 820993 355038 355038 40848 40848 45125 45125 1155043 1155043 1335239 1335239 639644 639644 5219154 5219154 389016 389016 5152 5152 142335 142335 85197 85197 208107 208107 3687888 3687888 ALLOCATED WAGES AND BEN 12987618 12987618 DUE DILIGENCE 2108705 2108705 GOODWILL WRITE OFF 1663665 1663665 OUTSIDE SERVICES 999392 999392 1667151 1667151 32734317 32734317 0 0 243530 162984 328616 169322 307041 134014 1235148 970358 0 0 301591 0 8922955 10921129 6719814 6572856 18058695 18930663 1301847 2159817 2162414 1154905 18031973 11381079 21496234 14695801 X -3959262 3761845 521723 473017 -3437539 4234862 18058695 18930663 X 192444 -539135 8019092 X X 0 1 X 1 0 X X X 1 0 0 MANCHESTER MEMORIAL HOSPITAL 060646710 3 1 1 1 0 ROCKVILLE GENERAL HOSPITAL INC 060653151 3 1 1 1 0 ECHN ELDERCARE SERVICES INC 061149193 9 1 1 1 0 3 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 1 45125 0 0 45125 0 PART II-B, LINE 1: WE ARE MEMBERS AND PAY DUES TO THE AMERICAN HOSPITAL ASSOCIATION AND THE CONNECTICUT HOSPITAL ASSOCIATION. THESE ASSOCIATIONS ENGAGE IN DIRECT COMMUNICATIONS WITH MEMBERS OF FEDERAL, STATE AND LOCAL GOVERNMENTS TO INFLUENCE LEGISLATION AFFECTING THE HEALTH CARE INDUSTRY. LOBBYING FEES OF $45,125 WERE PAID TO A LOBBYING FIRM TO INFLUENCE HEALTH CARE RELATED LEGISLATION. 0 BENEFICIAL INTEREST IN NET ASSETS OF ECHN COMMUNITY HEALTHCARE FOUNDATION 4480831 F INVESTMENT IN JOINT VENTURES 5976358 C INVESTMENTS IN CHIC 463940 C 10921129 DUE FROM AFFILIATES 871629 GOODWILL 5701227 6572856 DUE TO AFFILIATES 11381079 11381079 X PART X, LINE 2: THE NETWORK ACCOUNTS FOR UNCERTAIN TAX POSITIONS IN ACCORDANCE WITH PROVISIONS OF FASB ASC 740, "INCOME TAXES" WHICH PROVIDES A FRAMEWORK FOR HOW COMPANIES SHOULD RECOGNIZE, MEASURE, PRESENT AND DISCLOSE UNCERTAIN TAX POSITIONS IN THEIR CONSOLIDATED FINANCIAL STATEMENTS. THE NETWORK MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY THE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE NETWORK DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS AS OF SEPTEMBER 30, 2014 AND 2013. AS OF SEPTEMBER 30, 2014 AND 2013, THE NETWORK DID NOT RECORD ANY PENALTIES OR INTEREST ASSOCIATED WITH UNCERTAIN TAX POSITIONS. X X X X X 1 1 0 0 0 0 0 0 0 PETER J KARL PRESIDENT AND CEO 0 572400 0 550812 0 0 0 97575 0 25149 0 1245936 0 360237 MICHAEL D VEILLETTE SVP, CHIEF FINANCIAL OFFIC 0 306037 0 135238 0 0 0 36975 0 21921 0 500171 0 58014 KEVIN G MURPHY THROUGH OCT 2013 EVP, TREASURER 0 347516 0 178255 0 79880 0 9505 0 17175 0 632331 0 154642 DEBORAH GOGLIETTINO SVP, HUMAN RESOURCES 0 222929 0 127739 0 0 0 29790 0 16821 0 397279 0 71339 DENNIS MCCONVILLE SVP, STRATEGIC PLANNING 0 207957 0 117223 0 0 0 82752 0 10928 0 418860 0 68020 DEBORAH PARKER EVP, CHIEF CLINICAL OFFICE 0 294718 0 145083 0 0 0 35251 0 22795 0 497847 0 73202 JOEL REICH MD SVP, MEDICAL AFFAIRS 0 338385 0 184230 0 0 0 119923 0 17025 0 659563 0 109131 CHARLES COVIN THROUGH NOV 2013 VP AND CIO 0 151398 0 7500 0 0 0 20292 0 11961 0 191151 0 0 LEONA CROSSKEY VP, QUALITY 0 150246 0 27442 0 0 0 55175 0 17868 0 250731 0 0 ROBERT CARROLL MD MED DIR, EMERGENCY DEPARTM 0 376654 0 72829 0 0 0 12750 0 21621 0 483854 0 0 JOYCE TICHY GENERAL COUNSEL 0 257881 0 97800 0 0 0 7650 0 21213 0 384544 0 0 PART I, LINE 3 THE BOARD OF TRUSTEES (THE "BOARD") APPOINTS AN EXECUTIVE COMPENSATION COMMITTEE (THE "COMMITTEE") AND HAS DELEGATED THE RESPONSIBILITY OF COMPLETING AN ANNUAL MARKET ANALYSIS OF THE CEO'S COMPENSATION AND OTHER SENIOR EXECUTIVES AND COMPLETION OF THE CEO'S ANUAL PERFORMANCE REVIEW. THE EVALUATION OF THE CEO IS AN IMPORTANT RESPONSIBILITY OF THE BOARD AND IS CRITICAL TO THE GOVERNANCE RESPONSIBILITIES OF THE BOARD. THE EXECUTIVE COMPENSATION COMMITTEE SOLICITS FEEDBACK ABOUT THE PERFORMANCE OF THE CEO FROM EVERY ACTIVE BOARD MEMBER WHICH WHEN RECEIVED IS ANALYZED AND REVIEWED BY THE MEMBERS OF THE COMMITTEE. THE CEO COMPLETES A SELF-EVALUATION AND AN EVALUATION FOR ALL ELIGIBLE MEMBERS OF THE SENIOR LEADERSHIP TEAM, WHO COMPLETE BOTH A SELF-EVALUATION AND A PEER EVALUATION. THE RESULTS OF THE ASSESSMENTS COMPLETED BY MEMBERS OF THE SENIOR LEADERSHIP TEAM ARE REVIEWED BY THE CEO WHO DISCUSSES THE RESULTS WITH THE MEMBERS OF THE COMMITTEE ON AN ANNUAL BASIS. THE EXECUTIVE COMPENSATION COMMITTEE IN COLLABORATION WITH THE CEO EVALUATES AND APPROVES ORGANIZATIONAL PERFORMANCE OBJECTIVES BOTH ON AN ANNUAL AND LONG TERM BASIS AND FOCUSES ON THOSE GOALS WITH THE GREATEST IMPACT TO THE ORGANIZATION'S STRATEGY AND MISSION. THE COMMITTEE ENSURES AN ANNUAL REVIEW OF THE CEO'S PERFORMANCE IN RELATION TO THESE GOALS; REVIEWS THE TALLY SHEETS TO UNDERSTAND THE ECONOMICS OF THE EMPLOYEE BENEFITS; RETAINS AND ENSURES THE INDEPENDENCE OF ITS EXTERNAL CONSULTANTS AND ADVISORS AND INVOLVES RELEVANT ORGANIZATIONAL RESOURCES AS APPROPRIATE TO CARRY OUT ITS RESPONSIBILITIES. THE COMMITTEE ENSURES TRANSPARENCY AND DISCLOSURE TO THE BOARD BY PRESENTING THE RESULTS OF THE ANNUAL PERFORMANCE AND MARKET REVIEWS PROVIDING THE BOARD WITH THE OPPORUTNITY FOR FURTHER INPUT AND CONSIDERATION AND ASKING THAT THE BOARD TAKE ACTION ON THE RECOMMENDATIONS OF THE COMMITTEE IF THE RECOMMENDATION IS APPROPRIATE. THE BOARD HAS THE OPPORTUNITY TO CHANGE ANY RECOMMENDATION OF THE COMMITTEE IF IT SO DESIRES. MEMBERS OF THE BOARD AND OF THE COMMITTEE WHO MAY BE INTERESTED PARTIES ARE ASKED TO RECUSE THEMSELVES FROM ANY REQUIRED VOTES TO AVOID CONFLICTS OF INTEREST. THE COMMITTEE ENSURES THAT THE PROCESS MEETS COMPLIANCE STANDARDS. PART I, LINES 4A-B LINE 4A, SEVERANCE PAYMENT: KEVIN MURPHY - $79,880 LINE 4B, SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: PETER KARL - $84,825 MICHAEL VEILLETTE - $24,225 DEBORAH GOGLIETTINO - $17,625 DEBORAH PARKER - $22,501 DENNIS MCCONVILLE - $15,975 JOEL REICH - $25,845 PART I, QUESTIONS 5A, 5B, 6A AND 6B: THE ECHN EXECUTIVE INCENTIVE COMPENSATION PLAN IS A PLAN THAT HAS BEEN DEVELOPED, REVIEWED AND IS ANNUALLY APPROVED BY MEMBERS OF THE BOARD EXECUTIVE COMPENSATION COMMITTEE WITH CONSULTANT THIRD PARTY OVERSIGHT. THE PLAN ESTABLISHES GOALS IN 4 AREAS OF PERFORMANCE: SYSTEM-WIDE FINANCIAL PERFORMANCE BASED ON PROFIT FROM OPERATIONS, TWO QUALITY OUTCOMES IN CLINICAL CORE MEASURES AND PATIENT SATISFACTION AND AN INDIVIDUAL GOAL (WHICH HAS A SEPARATE MEASUREMENT FOR TEAM ASSESSMENT) FOR EACH MEMBER OF THE INCENTIVE PROGRAM. THERE IS NO EXECUTIVE COMPENSATION TIED TO THE REVENUES OF THE REPORTING ORGANIZATION OR OTHER RELATED ENTITIES. THERE IS EXECUTIVE COMPENSATION TIED TO THE NET EARNINGS (INCOME FROM OPERATIONS), AS NOTED IN THE PRIOR PARAGRAPH, HOWEVER IT IS ONE OF FOUR PERFORMANCE LEVERS THAT DETERMINE THE LEVEL OF COMPENSATION. THE AGGREGATE NET EARNINGS OF THE ECHN "SYSTEM" NOT ANY ONE REPORTING ORGANIZATION OR RELATED ENTITIES OF ECHN DETERMINE THIS COMPENSATION. SO TO CONCLUDE, THE ANSWER TO THESE 4 QUESTIONS IS "NO" WITH THE CLARIFICATION THAT IT IS THE PERFORMANCE OF THE ENTIRE SYSTEM AS A WHOLE THAT DETERMINES EXECUTIVE COMPENSATION, NOT ONE REPORTING ORGANIZATION OR A RELATED ENTITY. MEMBERS OF THE INCENTIVE PROGRAM INCLUDE THE FOLLOWING: POSITION TITLE - KEY EMPLOYEE NAME PRESIDENT AND CEO - PETER J. KARL SVP, CHIEF FINANCIAL OFFICER - MICHAEL D. VEILLETTE SVP, HUMAN RESOURCES - DEBORAH GOGLIETTINO SVP, STRATEGIC PLANNING - DENNIS MCCONVILLE SVP, CHIEF CLINICAL OFFICER - DEBORAH PARKER SVP, MEDICAL AFFAIRS - JOEL REICH, M.D. VP QUALITY - LEONA CROSSKEY VP, OPERATIONS - KATHLEEN SIMS MED. DIR. EMERGENCY DEPARTMENT - ROBERT CARROLL, M.D. PART II THE SALARY INFORMATION PROVIDED WITHIN SCHEDULE J REPRESENTS CALENDAR YEAR 2013 WAGES AND BENEFITS. AS COMPARED TO THE PRIOR YEAR RETURN, THE MAJOR CHANGES ARE: THE LONG TERM RETENTION BENEFIT REACHED MATURITY UPON THE COMPLETION OF THE FOUR YEAR VESTING PERIOD. THIS BENEFIT WAS PAID IN 2013 AND WAS FOR VESTING YEARS ENDED 9/30/10, 9/30/11, 9/30/12 AND 9/30/13. THREE OF THE FOUR VESTED YEARS WERE REPORTED AS DEFERRED INCOME IN PRIOR RETURNS ON SCHEDULE J LINE F (COMPENSATION REPORTED AS DEFERRED IN PRIOR FORM 990). IN CALENDAR YEAR 2013 WE IMPLEMENTED A FURLOUGH PROGRAM WHICH MEANT THAT EXECUTIVES RECEIVED AN UNPAID WEEK OF VACATION. THIS APPROXIMATED A 2% PAY REDUCTION. ANOTHER CHANGE TO PRIOR YEAR'S COMPENSATION IS THAT THE MONEY MATCH PROGRAM WAS REINSTATED IN CALENDAR YEAR 2013. DR DENNIS O'NEILL DR MICHELE CO SEE PART V SEE NOTE (1) 0 SEE PART V ECPC CONTRACTS WITH ECHN, INC. TO PROVIDE PATHOLOGY SERVICES AND LAB MANAGEMENT SERVICES TO MMH AND RGH. ALL PAYMENTS MADE TO ECPC ARE FOR PURPOSES OF OPERATING THE BUSINESS AND MAINTAINING OPERATING CASHFLOW; PAYMENTS ARE NOT DIRECTLY TO ANY OF THE OWNERS. 0 KATHLEEN O'NEILL SEE PART V SEE NOTE (2) 0 SEE PART V 0 DR GORDON BRODIE SEE PART V SEE NOTE (3) 229731 SEE PART V HMA LEASES OFFICE SPACE TO ECMPF, AN AFFILIATE OF ECHN, INC.; PAYMENTS REPRESENT TOTAL PAID BY ECMPF, A RELATED ENTITY OF ECHN, INC. 0 ANTHONY DISTEFANO MD SEE PART V SEE NOTE (4) 0 SEE PART V SALARY PAID TO SPOUSE LIZANNE DISTEFANO AS AN EMPLOYEE OF RGH. 0 JEFFREY HEIDTMAN SEE PART V SEE NOTE (5) 274269 SEE PART V FIBRO CHENEY LEASES OFFICE SPACE TO ECMPF, AN AFFILIATE OF ECHN; PAYMENTS REPRESENT TOTAL PAID BY ECMPF, A RELATED ENTITY OF ECHN, INC. 0 WILSON VEGA SEE PART V SEE NOTE (6) 0 SEE PART V CBS CONTRACTS WITH ECHN, INC. TO PROVIDE COPIER SERVICES TO MMH AND RGH. 0 SCHEDULE L, PART IV, COLUMN (B): (1) ECHN TRUSTEES EACH OWNING MORE THAN 5% OF EASTERN CONNECTICUT PATHOLOGY CONSULTANTS, PC (ECPC).(2) ECHN TRUSTEE AND THE WIFE OF DR. DENNIS O'NEILL, TRUSTEE FOR ALL AFFILIATES, WHO HAS A REPORTABLE TRANSACTION AS NOTED ABOVE. (3) ECHN TRUSTEE WITH OWNERSHIP IN HEALTHWISE MEDICAL ASSOCIATES, LLP (HMA).(4) ECHN TRUSTEE AND SPOUSE OF LIZANNE DISTEFANO, WHO IS EMPLOYED BY ROCKVILLE GENERAL HOSPITAL, AN AFFILIATE OF ECHN.(5) FORMER ECHN TRUSTEE OWNING MORE THAN 5% OF FIBRO CHENEY LLC.(6) FORMER ECHN TRUSTEE AND PRESIDENT OF CONNECTICUT BUSINESS SYSTEMS (CBS). SCHEDULE L, PART IV, COLUMN (C): LINE 1: AMOUNT OF TRANSACTION $0. PAYMENTS OF $634,238 WERE REPORTED ON THE MMH AND RGH 990 SCHEDULE L. ECHN, INC. DOES NOT MAKE ANY PAYMENT TO ECPC, PC AS MMH PAYS 2/3 AND RGH PAYS 1/3.LINE 3: PAYMENT OF $229,731 REPORTED ON ECHN 990 SCHEDULE L ONLY. PAYMENT MADE DIRECTLY TO HMA, LLP NOT DR. BRODIE.LINE 4: SALARY OF $19,191 PAID BY RGH. ECHN DID NOT MAKE ANY PAYMENTS.LINE 5: PAYMENT OF $274,269 REPORTED ON ECHN 990 SCHEDULE L ONLY. PAYMENT MADE DIRECTLY TO FIBRO CHENEY, NOT MR. HEIDTMAN.LINE 6: PAYMENT OF $320,518 REPORTED ON THE MMH AND RGH 990 SCHEDULE L. ECHN, INC. DOES NOT MAKE ANY PAYMENTS TO CBS. APPROXIMATELY 2/3 IS PAID BY MMH AND 1/3 BY RGH. FORM 990, PART VI, SECTION A, LINE 2 BOARD MEMBERS DENNIS O'NEILL AND MICHELE CONLON ARE BUSINESS PARTNERS. FORM 990, PART VI, SECTION A, LINE 7A CORPORATORS HAVE THE AUTHORITY TO ELECT BOARD MEMBERS. FORM 990, PART VI, SECTION A, LINE 7B CORPORATORS HAVE THE AUTHORITY TO VOTE ON SIGNIFICANT ISSUES. FORM 990, PART VI, SECTION B, LINE 11 PRIOR TO THE FILING OF THE FORM 990, THE FOLLOWING STEPS ARE TAKEN: 1) THE ACCOUNTING MANAGER, TOGETHER WITH OTHER MEMBERS OF THE FINANCE DEPARTMENT, CONDUCT A REVIEW OF THE FORM 990 ALONG WITH A REVIEW AND RECONCILATION OF THE FORM 990 TO THE AUDITED FINANCIAL STATEMENTS; 2) THE ACCOUNTING MANAGER CONDUCTS AN EXTENSIVE REVIEW AND DISCUSSION OF THE FORM 990 WITH THE CPA FIRM THAT PREPARES THE RETURN; 3) AN ELECTRONIC COPY OF THE FORM 990 IS MADE AVAILABLE TO THE AUDIT AND CORPORATE COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES (THE GOVERNING BOARD), AND SENIOR MANAGEMENT OF THE ORGANIZATION, FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY, THE CORPORATE COMPLIANCE/INTERNAL AUDIT DEPARTMENT PROVIDES TO OFFICERS, DIRECTORS, OR TRUSTEES AND KEY EMPLOYEES THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND DISCLOSURE STATEMENT, AND EACH INDIVIDUAL IS REQUIRED TO RETURN TO THE DEPARTMENT, A SIGNED DOCUMENT, ACKNOWLEDGING RECEIPT OF THE POLICY AND DISCLOSURE STATEMENT AND DISCLOSE ANY INTERESTS THAT COULD GIVE RISE TO CONFLICTS. A SUMMARY OF THE DISCLOSURES IS SHARED WITH THE CHAIRMAN OF THE BOARD OF TRUSTEES AND WITH THE AUDIT AND CORPORATE COMPLIANCE COMMITTEE OF THE BOARD. INDIVIDUALS WHO ARE IDENTIFIED AS HAVING A CONFLICT OF INTEREST ARE PROHIBITED IN PARTICIPATING IN THE GOVERNING BODIES DELIBERATIONS AND DECISIONS RELATED TO THE TRANSACTION. THE RETURNED STATEMENTS ARE RETAINED BY THE CORPORATE COMPLIANCE/INTERNAL AUDIT DEPARTMENT. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE TAKES THE FOLLOWING STEPS WITH AN INDEPENDENT COMPENSATION CONSULTANT (1) REVIEWS DATA RELATED TO CURRENT MARKET VALUES CONSISTENT FOR ORGANIZATION'S EXECUTIVES BY REVIEW OF COMPENSATION LEVELS AND PLANS CONSISTENT WITH HOSPITALS AND HEALTH SYSTEMS OF COMPARABLE SIZE AND LOCATION; (2) COMPLETES A REVIEW OF DATA ON CURRENT AND FUTURE PLANS FOR THE ORGANIZATION, INCLUDING STRUCTURE AND JOB DESCRIPTIONS; (3) REVIEWS AND APPROVES AND RECOMMEND SALARY RANGES FOR EACH POSITION, ALONG WITH RELATED BENEFITS; (4) REVIEWS AND APPROVES A TIERED EXECUTIVE STRUCTURE WITH APPROPRIATE INCENTIVE OPPORTUNITY, BENEFITS, AND COMPENSATION. THE DATE OF THE LAST COMPENSATION REVIEW WAS 12/18/13. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION, WILL, UPON REQUEST, ALLOW FOR REVIEW OF OUR GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND MOST RECENT ANNUAL AUDITED FINANCIAL STATEMENTS AT AN OFFICE OF THE ORGANIZATION. FORM 990, PART XI, LINE 9: TRANSFERS FROM AFFILIATES, NET 8,019,092. FORM 990, PART XII, LINE 2C: THE ECHN AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. THERE HAVE BEEN NO CHANGES IN THESE PROCESSES SINCE THE PRIOR YEAR. 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