2014-10-08T09:14:02-05:00 2013-12-31 861065772 DELOITTE TAX LLP 201 E KENNEDY BLVD SUITE 1200 TAMPA FL 33602 990 2013-01-01 590903331 EAST RIDGE RETIREMENT VILLAGE INC EAST 3523728400 SANTAFE HEALTHCAREINC PO BOX 749 GAINESVILLE FL 326270749 TROY HART PRESIDENT 3523728400 2014-09-30 1 STEVEN E ROVNER P00648526 8132738300 2013 2015-11-30 17:44:51Z MICHAEL P GALLAGHER SANTAFE HEALTHCAREINC PO BOX 749 GAINESVILLE FL 326270749 35583129 0 X WWW.EASTRIDGERC.COM X 1961 FL TO PROVIDE AFFORDABLE HOUSING, MEALS, HEALTH CARE AND RELATED SERVICES TO SENIOR CITIZENS. 12 11 301 1 0 0 2050 3630 17075929 18124440 132428 196935 292 0 17210699 18325005 0 0 0 0 8278873 8531527 0 0 0 8516974 8505463 16795847 17036990 414852 1288015 35468510 39672681 25828327 28887183 9640183 10785498 X THE MISSION OF EAST RIDGE RETIREMENT VILLAGE, INC. IS TO PROVIDE AFFORDABLE HOUSING, MEALS, HEALTH CARE AND RELATED SERVICES TO SENIOR CITIZENS. THIS MISSION IS ACCOMPLISHED THROUGH VARIOUS MEANS: SERVICES ARE PROVIDED 24 HOURS A DAY, 7 DAYS A WEEK, 365 DAYS A YEAR TO APPROXIMATELY 223 SENIOR RESIDENTS. TO THE EXTENT OF ITS FINANCIAL ABILITY, EAST RIDGE RETIREMENT VILLAGE, INC. MAKES EVERY EFFORT TO CONTINUE PROVIDING SERVICES TO RESIDENTS WHO BECOME UNABLE TO PAY. 0 0 7090697 9026090 EAST RIDGE RETIREMENT VILLAGE PROVIDED SKILLED NURSING AND RELATED HEALTH CARE SERVICES, INCLUDING THERAPY FOR INDIVIDUALS WHO ARE UNABLE TO CARE FOR THEMSELVES. TOTAL PATIENT DAYS SERVED IN 2013 WERE 19,846. 4075254 5187587 EAST RIDGE RETIREMENT VILLAGE PROVIDED CLEANING, LAUNDRY, MAINTENANCE, SECURITY AND UTILITIES TO SENIORS IN RESIDENTIAL UNITS. THE AVERAGE NUMBER OF UNITS SERVED IN 2013 PER DAY WERE 223. 2618171 3332796 EAST RIDGE RETIREMENT VILLAGE PROVIDED THREE MEALS DAILY TO ELDERLY RESIDENTS AND TRAY SERVICE TO INDIVIDUALS LOCATED IN THE SKILLED NURSING CENTER OR THOSE UNABLE TO LEAVE THEIR APARTMENTS. TOTAL MEALS SERVED IN 2013 WERE APPROXIMATELY 164,389. 454038 577967 EAST RIDGE RETIREMENT VILLAGE PROVIDED RECREATIONAL, CULTURAL, ANDHOBBY ACTIVITIES, INCLUDING TRANSPORTATION TO LOCAL EVENTS OF INTEREST.APPROXIMATELY 223 RESIDENTS PER DAY WERE PROVIDED SERVICES IN 2013. 454038 577967 14238160 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 318 0 1 301 1 0 0 0 0 0 0 0 0 0 0 X 12 11 0 1 0 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X KATHY HARPER CONTROLLER 3525483593 4300 NW 89TH BLVD GAINESVILLE FL 326065688 X JAY PERKINS CHAIRMAN/DIRECTOR 2.00 0.00 X X 0 0 0 LESLIE W BUCHANAN VICE CHAIRMAN/DIRECTOR 1.00 0.00 X X 0 0 0 CAROLYN GARWOOD SECRETARY/DIRECTOR 2.00 0.00 X X 0 0 0 THORNTON HOELLE TREASURER/DIRECTOR 1.00 0.00 X X 0 0 0 CONNIE BARDEN DIRECTOR 1.00 0.00 X 0 0 0 HEATHER BELL DIRECTOR 1.00 0.00 X 0 0 0 HARRY K BENDER DIRECTOR 1.00 0.00 X 0 0 0 PATRICIA BERMAN DIRECTOR 1.00 0.00 X 0 0 0 JACK DOWNEY DIRECTOR 1.00 0.00 X 0 0 0 JAMES W HARRIS DIRECTOR 1.00 0.00 X 0 0 0 DAVID LOEWENSTEIN PHD DIRECTOR 1.00 0.00 X 0 0 0 MICHAEL P GALLAGHER CHIEF EXECUTIVE OFFICER/DIRECTOR 1.00 59.00 X X 0 2238682 269719 TROY R HART PRESIDENT 10.00 40.00 X 0 496831 82897 STEVEN M ZIEGLER ASSISTANT SECRETARY 3.00 60.00 X 0 508883 130033 RICK DREW MARKETING DIRECTOR 55.00 0.00 X 120410 0 9439 STANLEY STERNEFELD ADMINISTRATOR 55.00 0.00 X 110935 0 11608 ESLIE HOLLINGSWORTH DIRECTOR OF NURSING 55.00 0.00 X 101214 0 24213 332559 3244396 527909 3 0 1 0 REHABCARE GROUP INC PO BOX 503534 ST LOUIS MO 631503534 PHYSICAL THERAPISTS 733743 LIFE CARE SERVICES LLC 400 LOCUST STE 820 DES MOINES IA 50309 MANAGEMENT SERVICES 691983 GLYNNDEVINS 11230 COLLEGE BLVD OVERLAND PARK KS 66210 ADVERTISING 440620 KRISKEN PAINTING CONTRACTORS INC 12824 SW 259TH STREET HOMESTEAD FL 33032 CAPITAL IMPROVEMENTS 331010 PRIDE FLOORING 10790 SW 184TH STREET MIAMI FL 33157 CAPITAL IMPROVEMENTS 284416 16 3630 3630 HOUSING/MAINT 623000 10088852 10088852 ROOM & BOARD 623000 4962137 4962137 DUES AND ASSESSMENTS 624100 1901138 1901138 COMPANION SERVICES 623000 1076782 1076782 TRANS. & SOCIAL SVCS 624100 95531 95531 18124440 206786 206786 17248273 17258124 -9851 -9851 -9851 18325005 18124440 0 196935 7065837 6246906 818931 79432 64037 15395 827537 762932 64605 558721 495152 63569 730135 730135 49844 49844 88704 88704 583528 348483 235045 541974 541974 441533 299629 141904 1099655 1025006 74649 49742 16878 32864 2188364 2164073 24291 297097 14618 282479 FOOD & FOOD SVCS 748593 748593 THERAPY SERVICES 691088 691088 EQUIP RENTAL AND MAINT 298356 298356 MEDICAL SUPPLIES 248523 248523 448327 271912 176415 17036990 14238160 2798830 0 266932 1011409 3437751 3398040 721209 1414664 64715 79000 267724 299895 55148177 34428265 19670835 20719912 9867894 11522757 1171450 1227004 35468510 39672681 1732693 1570647 10987283 13060707 13108351 14255829 25828327 28887183 X 9625788 10773718 14395 11780 9640183 10785498 35468510 39672681 X 1288015 -140085 -2615 X X 0 1 X 1 0 X 641026 775 116237 2050 3630 763718 15448120 15633172 15688217 17075929 18124440 81969878 16089146 15633947 15804454 17077979 18128070 82733596 0 14156 14156 14156 14156 82719440 116742 75736 48855 88583 206786 536702 116742 75736 48855 88583 206786 536702 1543 292 1835 16205888 15709683 15854852 17166854 18334856 83272133 0.99340 0.99110 0.00640 0.00890 X 544076 544076 42924390 30032656 12891734 5487069 4395609 1091460 6192642 6192642 20719912 REFUNDABLE ENTRANCE FEES 7581701 DUE TO AFFILIATES 6674128 14255829 X 18322390 0 18322390 2615 2615 18325005 17036990 0 17036990 0 17036990 PART X, LINE 2: EAST RIDGE FOLLOWS THE FASB'S GUIDANCE FOR ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES (ASC 740). EAST RIDGE HAD NO UNCERTAIN TAX POSITIONS AS OF DECEMBER 31, 2013 OR 2012. TAX YEARS 2010 TO 2012 ARE SUBJECT TO EXAMINATION BY FEDERAL AND STATE TAXING AUTHORITIES. THERE ARE NO INCOME TAX EXAMINATIONS CURRENTLY IN PROCESS. EAST RIDGE INCURRED NO INTEREST OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS IN 2013 OR 2012. PART XI, LINE 4B - OTHER ADJUSTMENTS: NET ASSETS RELEASED FROM RESTRICTION USED FOR SERVICES 2,615. 0 1 0 0 0 0 0 0 0 MICHAEL P GALLAGHER CHIEF EXECUTIVE OFFICER/DIRECTOR 0 879090 0 870216 0 489376 0 244268 0 25451 0 2508401 0 204750 TROY R HART PRESIDENT 0 306900 0 138378 0 51553 0 63147 0 19750 0 579728 0 28377 STEVEN M ZIEGLER ASSISTANT SECRETARY 0 315764 0 182501 0 10618 0 99376 0 30657 0 638916 0 29521 PART I, LINE 3 MICHAEL P GALLAGHER IS THE CHIEF EXECUTIVE OFFICER (CEO) OF EAST RIDGE RETIREMENT VILLAGE, INC. MR. GALLAGHER IS COMPENSATED BY SANTAFE HEALTHCARE, INC. (SANTAFE), A RELATED SUPPORTING ORGANIZATION. SANTAFE UTILIZES THE FOLLOWING PROCESS TO ESTABLISH THE CEO'S COMPENSATION AND BENEFITS: ANNUALLY, THE SANTAFE BOARD OF DIRECTORS RETAINS AN INDEPENDENT COMPENSATION AND BENEFITS CONSULTING FIRM TO CONDUCT A MARKET COMPETITIVENESS REVIEW OF THE CEO'S TOTAL DIRECT COMPENSATION (BASE SALARY, ANNUAL INCENTIVES, AND LONG TERM INCENTIVES) AND BENEFITS. THE COMPETITIVE ANALYSIS INCLUDES COMPARISON TO SIMILAR POSITIONS IN COMPANIES OF SIMILAR SIZE WITHIN THE SAME OR SIMILAR INDUSTRY. THE INDEPENDENT CONSULTING FIRM MAKES RECOMMENDATIONS, IF ANY, DIRECTLY TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS ESTABLISHES THE FINAL COMPENSATION AND BENEFIT PACKAGE FOR THE CEO TAKING INTO CONSIDERATION THE MARKET COMPETITIVENESS REVIEW AND FINAL RECOMMENDATION OF THE INDEPENDENT CONSULTING FIRM. THE INDEPENDENT CONSULTING FIRM PROVIDES AN OPINION LETTER REGARDING THE REASONABLENESS OF THE CEO'S FINAL COMPENSATION AND BENEFITS PACKAGE. THE ACTIONS OF THE BOARD ARE DOCUMENTED IN THE MINUTES OF THE BOARD MEETING. PART I, LINE 4B (RELATES TO PART I, LINE 4A): LISTED PERSONS ARE EMPLOYEES OF RELATED ORGANIZATIONS AND ARE COVERED UNDER A SEVERANCE POLICY FOR THEIR RESPECTIVE RELATED ORGANIZATION. THE SEVERANCE POLICY INCLUDES MONTHLY PAYMENTS UP TO A MAXIMUM OF 12 MONTHS UNDER QUALIFYING CIRCUMSTANCES. NO ONE LISTED RECEIVED SEVERANCE OR CHANGE OF CONTROL PAYMENTS DURING 2013. PART I, LINE 4B: LISTED PERSONS PARTICIPATING IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN IN THE YEAR: MICHAEL P GALLAGHER AND TROY R HART ARE EMPLOYEES OF SANTAFE HEALTHCARE, INC. (SANTAFE) A RELATED SUPPORTING ORGANIZATION. MR. GALLAGHER AND MR. HART PARTICIPATE IN TWO NONQUALIFIED DEFERRED COMPENSATION RETIREMENT PLANS SPONSORED BY SANTAFE FOR A CERTAIN GROUP OF EXECUTIVES. ONE PLAN RESTORES RETIREMENT BENEFITS EQUIVALENT TO QUALIFIED 401(K) BENEFITS ON INCOME EARNED IN EXCESS OF THE INTERNAL REVENUE SERVICE CODE SECTION 401 (A) (17) RECOGNIZABLE PAY LIMITS (A DEFINED CONTRIBUTION RESTORATION PLAN). VESTING FOR THIS PLAN IS ACHIEVED AT AGE 55 AND 10 YEARS OF SERVICE OR AT AGE 65 AND 5 YEARS OF SERVICE. THE SECOND SUPPLEMENTAL DEFINED CONTRIBUTION PLAN PROVIDES ADDITIONAL RETIREMENT INCOME BASED ON A PERCENTAGE OF BASE SALARY AND VESTS AT THREE AND FIVE YEARS OF SERVICE. MR. GALLAGHER RECEIVED $378,945 FROM SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS IN 2013. MR. HART RECEIVED $37,734 FROM A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN IN 2013. STEVEN M ZIEGLER IS AN EMPLOYEE OF AVMED, INC. (AVMED) A RELATED TAX-EXEMPT ORGANIZATION. MR. ZIEGLER PARTICIPATES IN TWO NONQUALIFIED DEFERRED COMPENSATION RETIREMENT PLANS SPONSORED BY AVMED FOR A CERTAIN GROUP OF EXECUTIVES. ONE PLAN RESTORES RETIREMENT BENEFITS EQUIVALENT TO QUALIFIED 401(K) BENEFITS ON INCOME EARNED IN EXCESS OF THE INTERNAL REVENUE SERVICE CODE SECTION 401 (A) (17) RECOGNIZABLE PAY LIMITS (A DEFINED CONTRIBUTION RESTORATION PLAN). VESTING IS ACHIEVED AT AGE 55 AND 10 YEARS OF SERVICE OR AT AGE 65 AND 5 YEARS OF SERVICE. THE SECOND SUPPLEMENTAL DEFINED CONTRIBUTION PLAN PROVIDES ADDITIONAL RETIREMENT INCOME BASED ON A PERCENTAGE OF BASE SALARY AND VESTS AT THREE AND FIVE YEARS OF SERVICE. SCHEDULE J, PART II: CERTAIN SENIOR EXECUTIVES ARE ACCOUNTABLE FOR AND PERFORM SERVICES FOR SANTAFE HEALTHCARE, INC. AND EACH OF ITS AFFILIATES. SANTAFE HEALTHCARE AND AFFILIATES REPRESENT A DIVERSIFIED FAMILY OF NOT-FOR-PROFIT ORGANIZATIONS WITH $2 BILLION IN GROSS RECEIPTS AND APPROXIMATELY 2,000 EMPLOYEES. THESE SENIOR EXECUTIVES ARE PAID DIRECTLY BY EITHER SANTAFE HEALTHCARE, INC. OR AVMED, INC. AND THEIR COMPENSATION AND BENEFITS ARE APPORTIONED AND CHARGED TO THE RESPECTIVE AFFILIATE BASED ON THE ESTIMATED AMOUNT OF TIME SPENT ON EACH AFFILIATES ACTIVITIES. FOR 2013, THE FOLLOWING PERCENTAGES OF EACH EXECUTIVES COMPENSATION AND BENEFITS (FOR THOSE SENIOR EXECUTIVES PAID BY A RELATED ORGANIZATION) IS APPORTIONED AND CHARGED TO EAST RIDGE, AS FOLLOWS: 0% - MICHAEL P GALLAGHER, CHIEF EXECUTIVE OFFICER 0% - TROY R HART, PRESIDENT 0% - STEVEN M ZIEGLER, ASSISTANT SECRETARY FORM 990, PART VI, SECTION A, LINE 3 EAST RIDGE RETIREMENT VILLAGE, INC. HAS A MANAGEMENT AGREEMENT WITH LIFE CARE SERVICES, LLC TO PROVIDE MANAGEMENT, ADVISORY AND CONSULTING SERVICES. FORM 990, PART VI, SECTION A, LINE 7A THE AMENDED AND RESTATED ARTICLES OF INCORPORATION STATE THAT THE BOARD OF DIRECTORS SHALL BE ELECTED AND MAY BE REMOVED BY THE BOARD OF SANTAFE SENIOR LIVING, INC. FORM 990, PART VI, SECTION A, LINE 7B THE RESERVED POWERS OF SANTAFE SENIOR LIVING, INC., AS DELINEATED IN THE ARTICLES OF INCORPORATION AND BYLAWS, PERMIT IT TO APPROVE OR RATIFY THE GOVERNING BODY'S DECISIONS RELATED TO BOARD MEMBER ELECTIONS OR REMOVALS, THE DECISION TO DISSOLVE THE ORGANIZATION, AND OTHER MATTERS THAT MAY COME BEFORE THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S PROCESS FOR ENSURING THE ACCURATE PREPARATION, REVIEW AND APPROVAL OF THE 2013 FORM 990 BEGAN WITH PROFESSIONAL DEVELOPMENT OF STAFF (SEVERAL OF WHICH ARE CPAS) WHICH WERE INVOLVED IN THE PREPARATION OF THE 2013 FORM 990. IN ADDITION TO STAFF DEVELOPMENT, WHICH INCLUDED ATTENDING TAX SEMINARS AND CLASSES, MANAGEMENT ALSO CONSULTED WITH INDEPENDENT ACCOUNTING FIRMS AND TAX LEGAL COUNSEL REGARDING THE INTERNAL REVENUE SERVICE (IRS) FORM 990 CODE AND FILING REQUIREMENTS. THE ORGANIZATION ALSO PREVIOUSLY EDUCATED ITS MANAGEMENT TEAM, OFFICERS AND DIRECTORS, WITH THE ASSISTANCE OF DELOITTE TAX LLP, REGARDING THE FORM 990 AND THEIR INVOLVEMENT IN REVIEWING THE RETURN. FOLLOWING MANAGEMENT'S PREPARATION OF THE 2013 FORM 990, DELOITTE TAX LLP REVIEWED THE 2013 FORM 990. A COPY OF THE 2013 FORM 990 AND ATTACHMENTS WERE PROVIDED TO THE ORGANIZATION'S CURRENT BOARD OF DIRECTORS FOR THEIR REVIEW AND COMMENT. EXECUTIVE MANAGEMENT ADDRESSED ANY QUESTIONS RAISED BY THE BOARD MEMBERS PRIOR TO FILING THE 2013 FORM 990 AND ATTACHMENTS WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C EAST RIDGE RETIREMENT VILLAGE, INC. (EAST RIDGE) HAS A CONFLICT OF INTEREST POLICY (POLICY) THAT COVERS BOARD MEMBERS, OFFICERS, EMPLOYEES WITH CONTRACTING AUTHORITY OR OTHER PERSONS ASSOCIATED WITH THE ORGANIZATION HAVING CONTRACTING AUTHORITY ON BEHALF OF THE ORGANIZATION. THIS POLICY IS INTENDED TO SUPPLEMENT THE CORPORATE COMPLIANCE PROGRAM. THE PRESIDENT OF EAST RIDGE, OR HIS OR HER DESIGNEE, IS RESPONSIBLE FOR PROVIDING EACH DIRECTOR OR OFFICER WITH A COPY OF THE POLICY AND OBTAINING THE SIGNED ACKNOWLEDGMENT OF EACH PERSON COVERED BY THE POLICY AT THE TIME OF APPOINTMENT AND ANNUALLY THEREAFTER. ALL PERSONS COVERED BY THE POLICY HAVE THE DUTY TO DISCLOSE THE EXISTENCE OF A POSSIBLE CONFLICT OF INTEREST TO THE PRESIDENT. IN THE CASE OF SELF-DISCLOSURE, THE PERSON INVOLVED IS EXCUSED FROM FURTHER DISCUSSION BY THE BOARD OF DIRECTORS OR A COMMITTEE OF THE BOARD OF DIRECTORS. THE REMAINING BOARD OR COMMITTEE MEMBERS SHALL DECIDE IF A CONFLICT OF INTEREST EXISTS. THE BOARD WILL DECIDE WHAT ACTION WILL BE TAKEN, IF ANY, GIVEN THE FACTS AND CIRCUMSTANCES. POSSIBLE VIOLATIONS OF THE POLICY, WHETHER WILLFUL OR NOT AND NOT PREVIOUSLY DISCLOSED TO THE PRESIDENT, WILL BE DISCUSSED WITH THE PERSON INVOLVED TO ALLOW THAT PERSON TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. IF, AFTER HEARING THE RESPONSE OF THE PERSON AND MAKING FURTHER INVESTIGATION AS MAY BE WARRANTED IN THE CIRCUMSTANCES, THE BOARD WILL TAKE APPROPRIATE DISCIPLINARY AND CORRECTIVE ACTION, IF NECESSARY. FORM 990, PART VI, SECTION B, LINE 15 MICHAEL P GALLAGHER IS THE CHIEF EXECUTIVE OFFICER (CEO) OF EAST RIDGE RETIREMENT VILLAGE, INC. MR. GALLAGHER IS COMPENSATED BY SANTAFE HEALTHCARE, INC. (SANTAFE), A RELATED SUPPORTING ORGANIZATION. SANTAFE UTILIZES THE FOLLOWING PROCESS TO ESTABLISH THE CEO'S COMPENSATION AND BENEFITS: THE SANTAFE BOARD OF DIRECTORS ANNUALLY RETAINS AN INDEPENDENT COMPENSATION AND BENEFITS CONSULTING FIRM TO CONDUCT A MARKET COMPETITIVENESS REVIEW OF THE CEO'S TOTAL DIRECT COMPENSATION (BASE SALARY, ANNUAL INCENTIVES AND LONG TERM INCENTIVES) AND BENEFITS. THE COMPETITIVE ANALYSIS INCLUDES COMPARISON TO SIMILAR POSITIONS IN COMPANIES OF SIMILAR SIZE WITHIN THE SAME OR SIMILAR INDUSTRY. THE INDEPENDENT CONSULTING FIRM MAKES RECOMMENDATIONS, IF ANY, DIRECTLY TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS ESTABLISHES THE FINAL COMPENSATION AND BENEFIT PACKAGE FOR THE CEO TAKING INTO CONSIDERATION THE MARKET COMPETITIVENESS REVIEW AND FINAL RECOMMENDATION OF THE INDEPENDENT CONSULTING FIRM. THE INDEPENDENT CONSULTING FIRM PROVIDES AN OPINION LETTER REGARDING THE REASONABLENESS OF THE FINAL COMPENSATION AND BENEFITS PACKAGE. THE ACTIONS OF THE BOARD ARE DOCUMENTED IN THE MINUTES OF THE BOARD MEETING. FORM 990, PART VI,SECTION B, LINE 15B: PROCESS FOR DETERMINING COMPENSATION FOR THE PRESIDENT OF EAST RIDGE RETIREMENT VILLAGE, INC. IS AS FOLLOWS: THE SANTAFE HEALTHCARE, INC. (SANTAFE) BOARD OF DIRECTORS ANNUALLY RETAINS AN INDEPENDENT THIRD PARTY COMPENSATION AND BENEFITS FIRM (FIRM) TO CONDUCT A MARKET COMPETITIVENESS REVIEW OF THE AFOREMENTIONED OFFICER'S TOTAL DIRECT COMPENSATION (BASE SALARY, ANNUAL INCENTIVES, AND LONG-TERM INCENTIVES) AND BENEFITS. THE COMPETITIVE ANALYSIS INCLUDES COMPARISONS TO SIMILAR POSITIONS IN COMPANIES OF SIMILAR SIZE WITHIN THE SAME OR SIMILAR INDUSTRY. AFTER COMPLETION OF ITS REVIEW, THE FIRM MAKES RECOMMENDATIONS, IF ANY, DIRECTLY TO THE SANTAFE BOARD OF DIRECTORS. THE FIRM PROVIDES AN OPINION LETTER REGARDING THE REASONABLENESS OF TOTAL DIRECT COMPENSATION AND EXECUTIVE BENEFITS. THE ACTIONS OF THE BOARD ARE DOCUMENTED IN THE MINUTES OF THE BOARD MEETINGS. FORM 990, PART VI, SECTION C, LINE 18 EAST RIDGE APPLIED TO THE INTERNAL REVENUE SERVICE FOR RECOGNITION OF EXEMPTION (FORM 1023) BEFORE JULY 15, 1987. AS OF JULY 15, 1987, EAST RIDGE DID NOT HAVE A COPY OF ITS EXEMPTION APPLICATION. THEREFORE, EAST RIDGE DOES NOT MAKE THE EXEMPTION APPLICATION OR THE ASSOCIATED DOCUMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART VI, SECTION C, LINE 19 EAST RIDGE RETIREMENT VILLAGE, INC. (EAST RIDGE) POSTS IN A PROMINENT PLACE AT ITS FACILITY A SUMMARY OF THE LATEST ANNUAL STATEMENT AS REQUIRED UNDER FLORIDA STATUTE 651.091. EAST RIDGE MAKES AVAILABLE THE FULL ANNUAL STATEMENT, INCLUDING AUDITED FINANCIAL STATEMENTS, TO THE PUBLIC UPON REQUEST. EAST RIDGE FURTHER COMPLIES WITH FLORIDA STATUTE 651.091, WHICH REQUIRES THAT ADDITIONAL FINANCIAL AND OPERATIONAL REPORTS AND RECORDS FOR CONTINUING CARE FACILITIES BE PROMINENTLY POSTED OR AVAILABLE FOR INSPECTION UPON REQUEST. THE RESTATED AND AMENDED ARTICLES OF INCORPORATION ARE AVAILABLE FOR PUBLIC INSPECTION ONLINE AT THE STATE OF FLORIDA SECRETARY OF STATE WEBSITE WWW.SUNBIZ.ORG. THE CURRENT EAST RIDGE CONFLICT OF INTEREST POLICY IS AVAILABLE FOR PUBLIC INSPECTION AT THE EAST RIDGE MAIN OFFICE. FORM 990, PART VII, SECTION A, LINE 1A: COMPENSATION PAID BY RELATED ORGANIZATIONS: CERTAIN SENIOR EXECUTIVES ARE ACCOUNTABLE FOR AND PERFORM SERVICES FOR SANTAFE HEALTHCARE, INC. AND EACH OF ITS AFFILIATES. SANTAFE HEALTHCARE AND AFFILIATES REPRESENT A DIVERSIFIED FAMILY OF NOT-FOR-PROFIT ORGANIZATIONS WITH $2 BILLION IN GROSS RECEIPTS AND APPROXIMATELY 2,000 EMPLOYEES. THESE SENIOR EXECUTIVES ARE PAID DIRECTLY BY EITHER SANTAFE HEALTHCARE, INC. OR AVMED, INC. AND THEIR COMPENSATION AND BENEFITS ARE APPORTIONED AND CHARGED TO THE RESPECTIVE AFFILIATE BASED ON THE ESTIMATED AMOUNT OF TIME SPENT ON EACH AFFILIATES ACTIVITIES. FOR 2013, THE FOLLOWING PERCENTAGES OF EACH EXECUTIVES COMPENSATION AND BENEFITS (FOR THOSE SENIOR EXECUTIVES PAID BY A RELATED ORGANIZATION) IS APPORTIONED AND CHARGED TO EAST RIDGE, AS FOLLOWS: 0% - MICHAEL P GALLAGHER, CHIEF EXECUTIVE OFFICER 0% - TROY R HART, PRESIDENT 0% - STEVEN M ZIEGLER, ASSISTANT SECRETARY FORM 990, PART XI, LINE 9: NET ASSETS RELEASED FROM RESTRICTION (INCLUDED IN TOTAL REVENUE) -2,615. FORM 990, PART XII, LINE 2C: THERE HAS BEEN NO CHANGE FROM THE PRIOR YEAR TO THE PROCESS RELATED TO AUDIT OVERSIGHT AND SELECTION OF THE INDEPENDENT ACCOUNTANT FOR THE ORGANIZATION. SANTAFE HEALTHCARE INC PO BOX 749 GAINESVILLE FL 326270749 592317607 MANAGEMENT AND FINANCIAL SUPPORT FOR NOT-FOR-PROFIT AFFILIATES FL 501(C)(3) 11B TYPE II N/A 0 AVMED INC PO BOX 749 GAINESVILLE FL 326270749 592742907 HEALTH CARE FL 501(C)(4) N/A SANTAFE HEALTHCARE INC 0 NORTH CENTRAL FLORIDA HOSPICE INC PO BOX 749 GAINESVILLE FL 326270749 592490893 HOSPICE CARE FL 501(C)(3) 9 SANTAFE HEALTHCARE INC 0 SANTAFE SENIOR LIVING INC PO BOX 749 GAINESVILLE FL 326270749 203700526 MANAGEMENT AND FINANCIAL SUPPORT FOR NOT-FOR-PROFIT AFFILIATES FL 501(C)(3) 11A TYPE I SANTAFE HEALTHCARE INC 0 BVG ACQUISITION INC PO BOX 749 GAINESVILLE FL 326270749 203701186 RETIREMENT COMMUNITY FL 501(C)(3) 9 SANTAFE SENIOR LIVING INC 0 NORTH FLORIDA RETIREMENT VILLAGE INC PO BOX 749 GAINESVILLE FL 326270749 591912330 RETIREMENT COMMUNITY FL 501(C)(3) 9 SANTAFE HEALTHCARE INC 0 BONITA SPRINGS RETIREMENT VILLAGE INC PO BOX 749 GAINESVILLE FL 326270749 262386152 RETIREMENT COMMUNITY FL 501(C)(3) 9 SANTAFE SENIOR LIVING INC 0 SANTAFE SENIOR LIVING FOUNDATION INC PO BOX 749 GAINESVILLE FL 326270749 264464727 CHARITABLE & EDUCATIONAL PURPOSES FL 501(C)(3) 7 SANTAFE SENIOR LIVING INC 0 SF HOLDING CORPINC & SUBSIDIARY PO BOX 749 GAINESVILLE FL 326270749 592903901 HOLDING COMPANY FL N/A C 0 0 0 0 0 1 0 0 0 0 0 0 0 1 0 0 1 1 0 0 AVMED INC M 703010 FAIR MARKET VALUE OF SERVICES