2014-08-15T09:25:44-05:00 2013-09-30 061533253 SASLOW LUFKIN & BUGGY LLP 175 POWDER FOREST DRIVE SIMSBURY CT 06089 990 2012-10-01 222546079 EASTERN CONNECTICUT HEALTH NETWORK INC EAST 8606461222 71 HAYNES STREET MANCHESTER CT 06040 MICHAEL D VEILLETTE 8606461222 2014-08-14 1 BETH A THURZ P00346435 8606789200 2014-08-14 2012 2015-11-30 17:44:51Z PETER J KARL 71 HAYNES STREET MANCHESTER CT 06040 33480311 0 X WWW.ECHN.ORG X 1995 CT INTEGRATED HEALTHCARE SYSTEM. 18 12 0 12 0 0 832567 808889 25923519 32671422 0 0 3761645 0 30517731 33480311 0 0 0 0 0 0 0 0 0 29989067 33053515 29989067 33053515 528664 426796 20833299 18058695 24159488 21496234 -3326189 -3437539 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 33053515 32671422 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 2013 WAS $5,180,649 FOR 3,645 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, 11,909 INPATIENTS WERE CARED FOR IN FY13 REPRESENTING 58,987 PATIENT DAYS; 392,781 OUTPATIENT VISITS WERE RECORDED.INCLUDED IN THE 11,909 INPATIENTS WERE 8,222 GOVERNMENT RELATED PATIENTS. THE GOVERNMENT INPATIENTS FALL INTO THE FOLLOWING GROUPS:MEDICARE 4,354MEDICARE MANAGED CARE 1,174MEDICAID 2,377SAGA 48CHAMPUS 269TOTAL GOV INPATIENTS 8,222 TOTAL NON GOV INPATIENTS 3,687TOTAL INPATIENTS 11,909INCLUDED IN THE 392,781 OUTPATIENT VISITS WERE 215,288 GOVERNMENT RELATED VISITS. THE VISITS ARE A PRODUCT OF GROSS REVENUE RELATIONSHIP TO TOTAL VISITS. THE GOVERNMENT VISITS FALL INTO THE FOLLOWING GROUPS:MEDICARE 111,781 MEDICARE MANAGED CARE 35,740MEDICAID 58,260SAGA 1,538CHAMPUS 7,969TOTAL GOV OUTPATIENTS 215,288TOTAL NON GOV OUTPATIENTS 177,493TOTAL OUTPATIENTS 392,781MMH AND RGH PROVIDED UNCOMPENSATED CARE TO 57,231 MEDICAID PATIENTS FOR A NET COMMUNITY BENEFIT AMOUNT OF $12,258,917 AFTER MEDICAID REIMBURSEMENT. ADDITIONAL INFORMATION REGARDING PROGRAMS FOR THE COMMUNITY AT MMH AND RGH: 2013 PERSONS 2013 BENEFITSCOMMUNITY HEALTH IMPROVEMENT SERVICES (A) COMMUNITY HEALTH EDUCATION (A1) 140,397 $ 626,982 COMMUNITY BASED CLINICAL SERVICES (A2) 1,033 $ 991,173 HEALTH CARE SUPPORT SERVICES (A3) 1,896 $ 120,680**** COMMUNITY HEALTH IMPROVEMENT SERVICES 143,326 $1,738,685HEALTH PROFESSIONS EDUCATION (B) PHYSICIANS/MEDICAL STUDENTS (B1) 48 $ 986,196 NURSES/NURSING STUDENTS (B2) 279 $1,194,700 OTHER HEALTH PROFESSIONAL EDUCATION (B3) 250 $ 402,677**** HEALTH PROFESSIONS EDUCATION 577 $2,583,573SUBSIDIZED HEALTH SERVICES (C) NEONATAL INTENSIVE CARE (C2) 191 $1,428,466**** SUBSIDIZED HEALTH SERVICES 191 $1,428,466RESEARCH (D) OTHER RESEARCH (D3) 0 $ 264,956**** RESEARCH 0 $ 264,956FINANCIAL AND IN-KIND CONTRIBUTIONS (E) CASH DONATIONS (E1) 0 $ 31,441 GRANTS (E2) 45 $ 10,008 IN-KIND DONATIONS (E3) 2,632 $ 119,984**** FINANCIAL AND IN-KIND CONTIBUTIONS 2,677 $ 161,433COMMUNITY BUILDING ACTIVITIES (F) ECONOMIC DEVELOPMENT (F2) 0 $ 946 COMMUNITY SUPPORT (F3) 821 $1,391,365 COALTION BUILDING (F6) 0 $ 16,727 COMMUNITY HEALTH IMPROVEMENT ADVOCACY (F7) 0 $ 6,595 WORKFORCE DEVELOPMENT (F8) 73 $ 337,869**** COMMUNITY BUILDING ACTIVITIES 894 $1,753,502COMMUNITY BENEFT OPERATIONS (G) DEDICATED STAFF (G1) 0 $ 229,280 COMMUNITY NEEDS/HEALTH ASSTS ASSESSMENT (G2) 0 $ 10,694**** COMMUNITY BENEFIT OPERATIONS 0 $ 239,974FINANCIAL ASSISTANCE FINANCIAL ASSISTANCE 3,645 $1,530,319**** FINANCIAL ASSISTANCE 3,645 $1,530,319GOVERNMENT SPONSORED HEALTH CARE MEDICAID 57,231 $12,258,917**** GOVERNMENT SPONSORED HEALTH CARE 57,231 $12,258,917TOTALS - COMMUNITY BENEFIT 208,541 $21,959,975 33053515 1 1 0 1 0 0 0 0 0 0 1 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 12 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 71 HAYNES STREET MANCHESTER CT 06040 DENNIS O'NEILL MD 1.00 4.00 X X 0 0 0 ROBIN MURDOCK MEGGERS 1.00 2.00 X X 0 0 0 MICHELE CONLON MD 1.00 2.00 X X 0 0 0 JOSEPH F JEAMEL JR 1.00 2.00 X X 0 0 0 GORDON BRODIE MD 1.00 2.00 X 0 0 0 THOMASINA CLEMONS 1.00 2.00 X 0 0 0 ANTHONY DISTEFANO MD 1.00 3.00 X 0 0 0 MILTON DOREMUS 1.00 2.00 X 0 0 0 JOY DORIN 1.00 2.00 X 0 0 0 DAVID GONCI 1.00 2.00 X 0 0 0 REBECCA JANENDA 1.00 2.00 X 0 0 0 CLAUDIO MILITE MD 1.00 2.00 X 0 0 0 LENORA WILLIAMS MD 1.00 2.00 X 0 0 0 PETER J KARL 1.00 41.50 X X 0 769136 113819 LOUISE ENGLAND 1.00 3.00 X 0 0 0 DONALD GENOVESI 1.00 2.00 X 0 0 0 KATHLEEN A O'NEILL 1.00 3.00 X 0 0 0 KEITH J WOLF 1.00 2.00 X 0 0 0 KEVIN G MURPHY 1.00 41.50 X 0 471431 66570 MICHAEL D VEILLETTE 1.00 41.50 X 0 355183 46063 DEBORAH GOGLIETTINO 1.00 41.50 X 0 291172 41750 DENNIS MCCONVILLE 1.00 41.50 X 0 261775 83473 DEBORAH PARKER 1.00 41.50 X 0 335989 52120 JOEL REICH MD 1.00 41.50 X 0 400584 119117 CHARLES COVIN 1.00 41.50 X 0 214967 38484 LEONA CROSSKEY 1.00 41.50 X 0 172720 69166 ROBERT CARROLL MD 1.00 41.50 X 0 528665 28137 KATHLEEN SIMS 1.00 41.50 X 0 119754 16102 0 3921376 674801 0 1 1 0 0 808889 808889 AFFILIATION CHARGE 900099 29653692 29653692 OTHER HEALTHCARE RELATED 621990 1593182 1593182 PARTNERSHIP AND OTHER 900099 1424548 1424548 32671422 33480311 32671422 0 0 X 1035934 1035934 26851 26851 45000 45000 1634749 1634749 1265252 1265252 2395669 2395669 4069898 4069898 384960 384960 7593 7593 195815 195815 138065 138065 228411 228411 3811651 3811651 ALLOCATED WAGES AND BEN 13717260 13717260 DUE DILIGENCE 1672861 1672861 OUTSIDE SERVICES 1153823 1153823 OTHER EXPENSES 800545 800545 469178 469178 33053515 33053515 0 0 115450 243530 926570 328616 326935 307041 1390040 1235148 555034 253443 376869 301591 8437569 8922955 9259866 6719814 20833299 18058695 1572925 1301847 3097152 2162414 19489411 18031973 24159488 21496234 X -3944964 -3959262 618775 521723 -3326189 -3437539 20833299 18058695 X 426796 319202 -857348 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 45000 0 0 45000 0 PART IV, SUPPLEMENTAL INFORMATION: PART II-B, LINE 1, LOBBYING ACTIVITIES: 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 $45,000 WERE PAID TO A LOBBYING FIRM TO INFLUENCE HEALTH CARE RELATED LEGISLATION. 123513 61756 61757 431521 191687 239834 301591 BENEFICIAL INTEREST IN NET ASSETS OF ECHN COMMUNITY HEALTHCARE FOUNDATION 4015385 F INVESTMENT IN JOINT VENTURES 4907570 C 8922955 DUE FROM AFFILIATES 847173 GOODWILL 5872641 6719814 DUE TO AFFILIATES 18031973 18031973 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: 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 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, 2013 AND 2012. AS OF SEPTEMBER 30, 2013 AND 2012, THE NETWORK DID NOT RECORD ANY PENALTIES OR INTEREST ASSOCIATED WITH UNCERTAIN TAX POSITIONS. X X X X X 0 1 0 0 0 0 0 0 0 PETER J KARL 0 571136 0 198000 0 0 0 90000 0 23819 0 882955 0 0 KEVIN G MURPHY 0 365827 0 105604 0 0 0 42701 0 23869 0 538001 0 0 MICHAEL D VEILLETTE 0 289379 0 65804 0 0 0 25126 0 20937 0 401246 0 0 DEBORAH GOGLIETTINO 0 234772 0 56400 0 0 0 25125 0 16625 0 332922 0 0 DENNIS MCCONVILLE 0 212785 0 48990 0 0 0 74088 0 9385 0 345248 0 0 DEBORAH PARKER 0 263589 0 72400 0 0 0 30000 0 22120 0 388109 0 0 JOEL REICH MD 0 325831 0 74753 0 0 0 103200 0 15917 0 519701 0 0 CHARLES COVIN 0 198967 0 16000 0 0 0 23238 0 15246 0 253451 0 0 LEONA CROSSKEY 0 146452 0 26268 0 0 0 48609 0 20557 0 241886 0 0 ROBERT CARROLL MD 0 395608 0 133057 0 0 0 7500 0 20637 0 556802 0 0 KATHLEEN SIMS 0 88279 0 31475 0 0 0 6042 0 10060 0 135856 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, LINE 4B PART I, LINE 4B: PETER KARL - $82,500 KEVIN MURPHY - $35,201 MICHAEL VEILLETTE - $17,626 DEBORAH GOGLIETTINO - $17,625 DEBORAH PARKER - $22,500 DENNIS MCCONVILLE - $15,975 JOEL REICH - $25,500 SUPPLEMENTAL INFORMATION PART III 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 EVP, TREASURER - KEVIN G. MURPHY 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 AND CIO - CHARLES COVIN VP QUALITY - LEONA CROSSKEY VP, OPERATIONS - KATHLEEN SIMS MED. DIR. EMERGENCY DEPARTMENT - ROBERT CARROLL, M.D. 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. THE 6 OWNERS ARE ALSO WORKING PATHOLOGISTS ALONG WITH TWO PHYSICIAN ASSISTANTS TO MAKE UP THE 8 EMPLOYEES OF THE PRACTICE. 0 0 KATHLEEN O'NEILL SEE PART V SEE NOTE (2) 0 SEE PART V 0 DR GORDON BRODIE SEE PART V SEE NOTE (3) 347464 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 (1) ECHN TRUSTEES EACH OWNING MORE THAN 5% OF EASTERN CONNECTICUT PATHOLOGY CONSULTANTS, PC (ECPC) AND TWO OF SIX TOTAL OWNERS OF 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 OWNING MORE THAN 5% OF HEALTHWISE MEDICAL ASSOCIATES, LLP (HMA). SCHEDULE L, PART IV, COLUMN (C): LINE 1: PAYMENT OF $600,832 WAS 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 $347,464 REPORTED ON ECHN 990 SCHEDULE L ONLY. PAYMENT MADE DIRECTLY TO HMA, LLP NOT DR. BRODIE. 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 DEELIBERATIONS 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 12/13/12. 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. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: TRANSFERS TO AFFILIATES, NET -857,348. 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. MANCHESTER MEMORIAL HOSPITAL 71 HAYNES STREET MANCHESTER CT 06040 060646710 HOSPITAL CT 501 (C) 3 3 ECHN 1 ROCKVILLE GENERAL HOSPITAL INC 31 UNION STREET ROCKVILLE CT 06066 060653151 HOSPITAL CT 501 (C) 3 3 ECHN 1 ECHN COMMUNITY HEALTHCARE FOUNDATION INC 71 HAYNES STREET MANCHESTER CT 06040 222546080 FUNDRAISING/SUPPORT CT 501 (C) 3 7 ECHN 1 ECHN ELDERCARE SERVICES INC 26 SHENIPSIT LAKE ROAD TOLLAND CT 06084 061149193 SKILLED NURSING FACILITY CT 501 (C) 3 9 ECHN 1 EASTERN CONNECTICUT MEDICAL PROFESSIONAL FOUNDATION INC 71 HAYNES STREET MANCHESTER CT 06040 222546078 PHYSICIAN SERVICES CT 501 (C) 3 3 ECHN 1 VISITING NURSE & HEALTH SERVICES OF CT INC 8 KEYNOTE DRIVE VERNON CT 06066 060646795 HOME HEALTHCARE SERVICES CT 501 (C) 3 9 ECHN 1 MEDICAL PRACTICE PARTNERS LLC PO BOX 3830 VERNON CT 06066 271498877 BILLING AND PRACTICE MANAGEMENT SERVICES CT N/A ECHN ENTERPRISES INC 71 HAYNES STREET MANCHESTER CT 06040 222546828 REAL ESTATE HOLDING CT ECHN C -5575 2500355 1.00000 1 HAYNES STREET PROPERTY MANAGEMENT LLC 71 HAYNES STREET MANCHESTER CT 06040 222546028 REAL ESTATE PROPERTY MANAGEMENT CT N/A C 1 CONNECTICUT HEALTHCARE INSURANCE COMPANY PO BOX 1109 GRAND CAYMAN CJ 980623043 CAPTIVE INSURANCE CJ ECHN C -5701677 5220598 1.00000 1 ECHN CORPORATE SERVICES 71 HAYNES STREET MANCHESTER CT 06040 271596320 BILLING AND OTHER PRACTICE MANAGEMENT SERVICES CT ECHN C 82658 1610388 1.00000 1 0 0 0 1 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 ECHN CORPORATE SERVICES INC D 88381 CASH EASTERN CT MEDICAL PROFESSIONALS FOUNDATION J 66957 MARKET VALUE EASTERN CT MEDICAL PROFESSIONALS FOUNDATION L 150000 CONTRACT ROCKVILLE GENERAL HOSPITAL L 8418856 COST MANCHESTER MEMORIAL HOSPITAL L 21156078 COST ECHN ELDERCARE SERVICES INC L 78756 COST MANCHESTER MEMORIAL HOSPITAL M 71399 COST ECHN COMMUNITY HEALTHCARE FOUNDATION INC M 164829 COST