2013-08-15T15:36:49-05:00 2012-09-30 PricewaterhouseCoopers LLP 125 High Street Boston MA 02110 990 2011-10-01 042323457 Lahey Clinic Foundation Inc % TIMOTHY O'CONNOR LAHE 7817445100 41 Mall Road Burlington MA 018050001 TIM O'CONNOR 2013-08-12 true 6175305000 2011 2016-02-24 21:20:13Z Howard R Grant JD MD 41 MALL ROAD BURLINGTON MA 018050001 5970051 false X www.lahey.org X 1963 MA SEE SCHEDULE O 19 9 600 34 -294355 -300265 2768044 3285682 0 0 4236488 2677299 8134 7070 7012666 5970051 0 0 0 0 2793488 3029412 28666 141000 4454805 1743096 1885452 4565250 5055864 2447416 914187 676307327 685716006 353705642 332955737 322601685 352760269 X SEE SCHEDULE O false false LAHEY CLINIC FOUNDATION, INC., (FOUNDATION) IS THE SOLE CORPORATE MEMBER OF LAHEY CLINIC HOSPITAL, INC. (HOSPITAL), LAHEY CLINIC, INC. (CLINIC) AND LAHEY CLINIC AFFILIATED SERVICES, INC. (LCAS). THE FOUNDATION HOLDS CAPITAL ASSETS, INVESTMENTS, DEBT, AND INFRASTRUCTURE COSTS TO PROVIDE ASSISTANCE TO THE HOSPITAL AND CLINIC FOR THE PROVISION OF PATIENT HEALTH CARE SERVICES, PATIENT EDUCATION, COMMUNITY BENEFITS AND COMMUNITY SERVICE PROGRAMS, CONTINUING EDUCATION OF HEALTH CARE PROVIDERS, AS WELL AS HEALTH CARE RESEARCH ACTIVITIES. PHILANTHROPIC EFFORTS, ALSO IN SUPPORT OF THE HOSPITAL AND CLINIC, ARE CARRIED OUT BY THE FOUNDATION. true true false false false false false true false true true true false true true false false true false false true false false true false false false false false true true false false false false false true false false false true false false false false false true true true false false true 195 0 true 600 true true true true BD CA false false false false false false false false X 19 9 true false true false true true true true true false false true true true true true false true true true false AZ AR CA CO CT FL GA IL KY ME MA MN MO NH NJ NM NY OK PA RI VA WA WI X TIMOTHY O'CONNOR 7817445100 41 MALL ROAD Burlington MA 018050001 X Howard R Grant JD MD 8.0 X X 960934 0 84545 John A Libertino MD 1.0 X 0 813060 39384 Richard W Nesto MD 20.0 X 595970 0 101415 Roger L Jenkins MD 1.0 X 0 592138 49628 Richard S D'Agostino MD 1.0 X 0 529013 52842 Judith A Melin MD 20.0 X 0 327467 30355 Carl A Soderland MD 1.0 X 0 389917 36436 Andrew G Villanueva MD 1.0 X 0 327045 37548 Betsey Crawford MD 1.0 X 0 187572 12386 Arthur P Mourtzinos MD 1.0 X 0 403201 43266 Rebecca C Yang MD 1.0 X 0 344322 41513 Irving E Rogers III 2.0 X X 0 0 0 Eric M Bailey 1.0 X 0 0 0 Craig R Benson 1.0 X 0 0 0 Ann Marie Connolly 1.0 X 0 0 0 Jerald G Fishman 1.0 X 0 0 0 James W Henderson 2.0 X X 0 0 0 James D Irving 1.0 X 0 0 0 Charles M Leighton 1.0 X 0 0 0 Peter J Manning 1.0 X 0 0 0 J William Poduska 1.0 X 0 0 0 Windle B Priem 1.0 X 0 0 0 James A Radley 1.0 X 0 0 0 Robert L Reynolds 1.0 X 0 0 0 Michael C Ruettgers 2.0 X X 0 0 0 Carolyn Ain 1.0 X 0 0 0 Jane C Edmonds 1.0 X 0 0 0 Edward Eskandarian 1.0 X 0 0 0 David G Spackman 8.0 X 0 0 0 Timothy O'Connor 8.0 X 683581 0 159274 Joan M Robbio 40.0 X 357894 0 26290 Kathleen S Jose 40.0 X 311548 0 27198 Bruce A Metz 40.0 X 0 241632 23880 Phillips Axten 40.0 X 347086 0 44783 Peter R Lloyd 40.0 X 305204 0 36728 Theorn Bradley 40.0 X 278919 0 48659 Allen S Danis 40.0 X 291896 0 19693 Joseph C Corkery 39.0 X 470778 0 77279 David M Barrett MD 0.0 X 1388662 0 200000 5992472 4155367 1193102 89 true true false ECLIPSYS SOLUTIONS CORP PO BOX 8538-0133 PHILADELPHIA PA 191710133 ELECT. HEALTH SYSTEM 4162082 DELOITTE CONSULTING LLP PO BOX 7247-6447 PHILADELPHIA PA 191706447 CONSULTING 2073831 MEDMATICA CONSULTING ASSOC INC 18 BARRINGTON LANE CHESTER SPRINGS PA 19425 CONSULTING 1902406 AMERICAN PERSONNEL HEALTHCARE SERVI 133 FEDERAL STREET BOSTON MA 02110 PROF. STAFFING SERV. 1623589 THE OUTSOURCE GROUP 7 AUDUBON ROAD WAKEFIELD MA 018801248 PROF. BILLING AGENCY 1046182 36 3285682 3285682 0 1873513 1880 1871633 50 50 0 75947 727789 75947 727789 803736 -296235 1099971 0 0 0 OTHER REVENUE 900099 7070 7070 7070 5970051 -294355 2978724 0 0 0 0 27537 27537 22166 22166 2258637 171244 2087393 331110 31005 300105 229611 21110 208501 160351 14102 146249 0 29209 3763 25446 2456 2456 0 141000 141000 69410 69410 367931 43352 324579 8340 8340 549365 15649 533716 39809 39809 0 340474 8192 332282 19747 1547 18200 0 0 6829 6829 0 136502 118300 18202 6564 6564 MEDICAL SUPPLIES 36 33 3 GENERAL SUPPLIES 308780 59061 249719 5055864 0 601059 4454805 0 0 736490 6831224 65400 118200 10715 6715 0 0 0 0 0 0 0 0 6666439 4380315 891073181 554552851 353910643 336520330 67987057 90460862 198022672 194043337 0 0 0 0 48907911 53355023 676307327 685716006 33690024 37808996 0 0 0 0 181583991 176143259 0 0 2806849 2402972 0 0 4892555 2431860 130732223 114168650 353705642 332955737 X 237543125 258376628 29744396 36275143 55314164 58108498 322601685 352760269 676307327 685716006 X 914187 29244397 X false true true X false X 22246019 3904026 3963818 2768044 3285682 36167589 22246019 3904026 3963818 2768044 3285682 36167589 13118661 23048928 6226119 4023413 3204960 3684596 2873563 20012651 159 356 6268 8134 7070 21987 56202227 0.41011 0.44326 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED X false 266009728 946986 25996140 7824838 623817 284504199 275817593 1849984 -726521 10133190 798138 266009728 262176300 814624 23033174 9539545 666960 275817593 274357327 987745 8636901 21526729 278944 262176300 0.78000 0.22000 false false 15393209 15393209 486135483 230264265 255871218 8575806 5542068 3033738 367175671 309321511 57854160 13793012 9425007 4368005 336520330 INVESTMENTS 194043337 F 194043337 DEFERRED DEBT ISSUE COST, NET 3470231 INVESTMENT-LAHEY CLINIC INSUR. 120000 INVESTMENT-FELLSWAY DEVELOP. 5691165 OTHER RECEIVABLES 414838 ASSETS HELD UNDER SPLIT INT AG 11438796 BENE INT IN PERP & LEAD TRUSTS 27946231 INVESTMENTS - OTHER 4273762 53355023 0 INTERCOMPANY PAYABLES 106849156 SPLIT INTEREST LIABILITY 6372443 ASSET RETIREMENT OBLIGATION 947051 114168650 5970051 5055864 1914187 15180857 13063540 28244397 30158584 27677510 15180857 8812284 23993141 3684369 3285682 3285682 6970051 6844007 1788143 1788143 5055864 5055864 SCHEDULE D, PART III, LINE 4 THE ORGANIZATION MAINTAINS COLLECTIONS OF ART FOR DISPLAY TO IMPROVE THE PATIENT CARE ENVIRONMENT. SCHEDULE D, PART V, LINE 4 THE ORGANIZATION'S ENDOWMENT FUNDS SUBSIDIZE THE COSTS OF PROVIDING SUPERIOR HEALTH CARE LEADING TO THE BEST POSSIBLE OUTCOME FOR EVERY PATIENT. THE COSTS ARE FOR PATIENT CARE, PATIENT EDUCATION, CONTINUING EDUCATION OF HEALTH CARE PROVIDERS, RESEARCH, AND CAPITAL EXPENDITURES. SCHEDULE D, PART X, LINE 2 THE ORGANIZATION'S FINANCIAL STATEMENTS DID NOT REPORT A LIABILITY FOR UNCERTAIN TAX POSITIONS UNDER FIN 48. SCHEDULE D, PART XI, LINE 8 UNRESTRICTED CONTRIBUTIONS $2,985,039 ASSETS RELEASED FROM TIME RESTRICTIONS 1,571,236 ASSETS RELEASED FROM RESTRICTIONS 2,461,577 PENSION AND POST RETIREMENT RELATED CHANGES (485,876) GRANTS AND CONTRIBUTIONS (3,285,682) CHANGE IN TEMPORARY AND PERMANENT NET ASSETS 9,325,081 CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 509,923 REDESIGNATION OF GIFTS (17,758) ____________ TOTAL $13,063,540 SCHEDULE D, PART XII, LINE 2D UNRESTRICTED CONTRIBUTIONS $2,985,039 ASSETS RELEASED FROM TIME RESTRICTIONS 1,571,236 ASSETS RELEASED FROM RESTRICTIONS 2,461,577 CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 509,923 REDESIGNATION OF GIFTS (17,758) OTHER OPERATING REVENUES TRANSFERRED TO LAHEY CLINIC, INC. AND LAHEY CLINIC HOSPITAL, INC. 1,302,267 _________ TOTAL $8,812,284 SCHEDULE D, PART XII, LINE 4B CONTRIBUTIONS, GIFTS, AND GRANTS $3,285,682 SCHEDULE D, PART XIII, LINE 2D OTHER OPERATING REVENUE COLLECTED BY LAHEY CLINIC FOUNDATION, INC. AND CREDITED TO OVERHEAD EXPENSES ALLOCATED TO LAHEY CLINIC INC. AND LAHEY CLINIC HOSPITAL, INC. $1,302,267 PENSION AND POST RETIREMENT RELATED CHANGES 485,876 __________ TOTAL $1,788,143 North America Fundraising Central America and the Caribbean Investments 94396538 94396538 94396538 true false true true false false PART I, LINE 3 (1) LAHEY CLINIC DOES NOT SEPARATELY TRACK EXPENDITURES FOR FUNDRAISING OUTSIDE THE UNITED STATES IN THE REGION. X X X X true THE WAYLAND GROUP 1323 BOSTON POST ROAD SUDBURY MA 01776 Fundraising Counsel false 0 141000 -141000 0 141000 -141000 AZ AR CA CO CT FL GA IL KY ME MA MN MO NH NJ NM NY OK PA RI VA WA WI X X false false X X X X X true true false false false false false true false Howard R Grant JD MD 936208 0 0 0 24726 0 26887 0 57658 0 1045479 0 0 0 John A Libertino MD 0 684189 0 90000 0 38871 0 17500 0 21884 0 852444 0 0 Richard W Nesto MD 573574 0 0 0 22396 0 75800 0 25615 0 697385 0 0 0 Roger L Jenkins MD 0 561129 0 0 0 31009 0 17500 0 32128 0 641766 0 0 Richard S D'Agostino MD 0 490255 0 0 0 38758 0 17500 0 35342 0 581855 0 0 Judith A Melin MD 0 288829 0 0 0 38638 0 17500 0 12855 0 357822 0 0 Carl A Soderland MD 0 351021 0 0 0 38896 0 17500 0 18936 0 426353 0 0 Andrew G Villanueva MD 0 288287 0 0 0 38758 0 17500 0 20048 0 364593 0 0 Betsey Crawford MD 0 170982 0 0 0 16590 0 10626 0 1760 0 199958 0 0 Arthur P Mourtzinos MD 0 386701 0 0 0 16500 0 17500 0 25766 0 446467 0 0 Rebecca C Yang MD 0 327732 0 0 0 16590 0 17500 0 24013 0 385835 0 0 Timothy O'Connor 566323 0 95000 0 22258 0 134500 0 24774 0 842855 0 0 0 David M Barrett MD 0 0 0 0 1388662 0 200000 0 0 0 1588662 0 0 0 Joan M Robbio 318632 0 0 0 39262 0 4900 0 21390 0 384184 0 0 0 Kathleen S Jose 272652 0 0 0 38896 0 17500 0 9698 0 338746 0 0 0 Bruce A Metz 0 187198 0 20000 0 34434 0 3876 0 20004 0 265512 0 0 Phillips Axten 308190 0 0 0 38896 0 17500 0 27283 0 391869 0 0 0 Peter R Lloyd 283066 0 0 0 22138 0 17500 0 19228 0 341932 0 0 0 Theorn Bradley 239657 0 0 0 39262 0 17500 0 31159 0 327578 0 0 0 Allen S Danis 253000 0 0 0 38896 0 17500 0 2193 0 311589 0 0 0 Joseph C Corkery 371882 0 60000 0 38896 0 57200 0 20079 0 548057 0 0 0 SCHEDULE J, PART I, LINES 1A, 1B & 2 DR. HOWARD GRANT RECEIVED THE FOLLOWING AMOUNTS IN CALENDAR YEAR 2011 FROM THE ORGANIZATION: $1,993 HOUSING ALLOWANCE (TAXABLE) $ 475 TAX GROSS UP PAYMENT FOR HOUSING RELATED EXPENSES (TAXABLE) THE ITEMS CHECKED IN SCHEDULE J, PART I, LINE 1A, VIA AN EXECUTED EMPLOYEMENT AGREEMENT, WERE NEGOTIATED AND AGREED TO BY BOTH PARTIES AND THEIR REPRESENTATIVES. SCHEDULE J, PART I LINE 4a, PART II, COLUMN B(III) AND COLUMN C DR. DAVID M. BARRETT WAS TERMINATED FROM LAHEY CLINIC FOUNDATION, INC. ON 12/31/2010. SCHEDULE J REQUIRES THE REPORTING OF COMPENSATION BASED ON CALENDAR YEAR 2011. DR. BARRETT'S COMPENSATION PAID FOR CALENDAR YEAR 2011 INCLUDES $989,983 OF SEVERANCE PAYMENTS PER DR. BARRETT'S EMPLOYMENT CONTRACT, $346,154 OF VACATION AND SICK TIME CASH-OUT AND $52,525 OF TAXABLE LIFE INSURANCE BENEFITS. THE REMAINING AMOUNT PAID TO DR. BARRETT OF $200,000 IS DEFERRED COMPENSATION UNDER A SPLIT DOLLAR AGREEMENT WITH LAHEY CLINIC HOSPITAL, INC. SCHEDULE J, PART I, LINE 4b, PART II COLUMN C THE ORGANIZATION MAINTAINS A 457F NONQUALIFIED DEFERRED COMPENSATION PLAN FOR CERTAIN PHYSICIANS, EXECUTIVE MANAGEMENT AND DEFINED MEDICAL STAFF. THE PLAN OFFERS PARTICIPATING EMPLOYEES AN ANNUAL DEFFERAL OF COMPENSATION IN ADDITION TO THEIR SALARIES. FOR THE CURRENT PERIOD, THE FOLLOWING PERSONS PARTICIPATED IN THE 457F NONQUALIFIED DEFERRED COMPENSATION PLAN: TIMOTHY O'CONNOR - AMOUNT = $117,000 RICHARD W NESTO - AMOUNT = $ 58,300 JOSEPH C CORKERY - AMOUNT = $ 39,700 SCHEDULE J, PART I, LINE 7 THE NON-FIXED PAYMENT BONUSES REPORTED IN SCHEDULE J, PART II, COLUMN B(II) ARE DETERMINED BY AN INDEPENDENT COMPENSATION COMMITTEE, WHICH INCLUDES A GROUP OF TRUSTEES. IN A SUBJECTIVE MANNER, THE COMMITTEE TAKES INTO ACCOUNT THE ACHIEVEMENTS OF BOTH THE ORGANIZATION AND THE INDIVIDUAL TO DETERMINE AN APPROPRIATE AMOUNT OF SUCH BONUSES. SCHEDULE J, PART II LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS DO NOT COMPENSATE ANY TRUSTEE IN THEIR CAPACITY AS TRUSTEE. ALL COMPENSATION PAID IS FOR WORK PERFORMED IN THEIR CAPACITY OTHER THAN TRUSTEE, WHICH IS LISTED ON FORM 990, PART VII, DIRECTLY FOLLOWING THE TITLE OF THE TRUSTEE. 2005 MHEFA SERIES C BONDS 042456011 57586CKW4 2005-07-14 161296967 SEE PART V false false false 2007 MHEFA SERIES D BONDS 042456011 57586CE68 2007-08-17 48655976 SEE PART V false false false 33883577 0 163666057 0 0 0 1259007 3594356 0 51328227 107484467 0 2006 true false true true 24894 0 51388809 0 0 0 870765 0 0 50518044 0 0 2009 false false true true false true true true true true 0.00936 0.00245 0.01181 true false false false false 0.00000 0.00000 0.00000 true false false false 0 true XL ASSET FUND CO I 1.83 true false false false false false 0 true AIG MATCH FUND CORP 1. true false false BERNARD GORDON - ASSET ACQUISITION X 5000000 2402972 false true true 2402972 ADAM S AIN SON OF TRUSTEE 14080 EMPLOYEE COMPENSATION false FORM 990, PART I, LINE 1 & PART III, LINE 1 LAHEY CLINIC FOUNDATION, INC. SUPPORTS LAHEY CLINIC HOSPITAL, INC., LAHEY CLINIC, INC. AND LAHEY CLINIC AFFILIATED SERVICES, INC. LAHEY HOSPITAL & MEDICAL CENTER, IN ASSOCIATION WITH THE TUFTS UNIVERSITY SCHOOL OF MEDICINE, PROVIDES SUPERIOR HEALTH CARE LEADING TO THE BEST POSSIBLE OUTCOMES FOR EVERY PATIENT. AS ONE OF THE WORLD'S PREMIER HEALTH CARE ORGANIZATIONS, LAHEY HOSPITAL & MEDICAL CENTER AIMS TO EXCEED PATIENT'S HIGH EXPECTATIONS FOR SERVICE AND ADVANCE MEDICINE THROUGH RESEARCH AND THE EDUCATION OF TOMORROW'S HEALTH CARE LEADERS. IN ADDITION, LAHEY HOSPITAL & MEDICAL CENTER IS COMMITTED TO IMPROVING THE HEALTH AND QUALITY OF LIFE OF COMMUNITY RESIDENTS BY SUPPORTING LOCAL ORGANIZATIONS ALIGNED WITH THIS MISSION. FORM 990, PART IV, LINE 4 LAHEY CLINIC HOSPITAL, INC., A RELATED ORGANIZATION, IS IN CONTACT WITH FEDERAL AND STATE LEGISLATORS REGARDING HEALTH CARE REFORM ISSUES THAT WOULD POTENTIALLY HAVE AN IMPACT ON THE ORGANIZATION AND ITS RELATED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 2 OFFICERS AND TRUSTEES OF LAHEY CLINIC FOUNDATION, INC. ARE OFFICERS AND TRUSTEES OF LAHEY CLINIC, INC., LAHEY CLINIC HOSPITAL, INC., AND LAHEY CLINIC AFFILIATED SERVICES, INC. CERTAIN TRUSTEES ARE ALSO EMPLOYEES OF LAHEY CLINIC, INC. IN ADDITION TO THEIR ROLE AS A TRUSTEE AND/OR OFFICER, HOWARD R. GRANT, J.D., M.D., TIMOTHY O'CONNOR AND JAMES A. RADLEY (UNTIL 7/16/2012) ARE ALSO TRUSTEE AND/OR OFFICER FOR LAHEY CLINIC INSURANCE COMPANY, LTD. IN ADDITION TO THEIR ROLES AS OFFICERS OF LAHEY CLINIC FOUNDATION, INC., TIMOTHY O'CONNOR AND DAVID SPACKMAN ARE ALSO OFFICERS OF NORTHEAST PROPRIETARY CORPORATION, A RELATED ORGANIZATION. THE COMPENSATION FOR THE TRUSTEES AND OFFICERS OF LAHEY CLINIC FOUNDATION, INC. LISTED IN FORM 990, PART VII, COLUMN(E) IS FOR EMPLOYEES OF LAHEY CLINIC, INC. ALL COMPENSATION PAID IS FOR WORK IN THEIR CAPACITIES OTHER THAN AS TRUSTEES. FORM 990, PART VI, SECTION A, LINES 6 AND 7 THE LAHEY HOSPITAL & MEDICAL CENTER CONSISTS OF FOUR NON-PROFIT CORPORATIONS, LAHEY CLINIC HOSPITAL, INC. (EIN # 04-2704686), LAHEY CLINIC, INC. (EIN # 04-2704683), LAHEY CLINIC FOUNDATION, INC. (EIN # 04-2323457) AND LAHEY CLINIC AFFILIATED SERVICES, INC. (EIN # 04-3178972). ALL FOUR CORPORATIONS ARE TAX EXEMPT UNDER INTERNAL REVENUE CODE SECTION 501(C)(3). LAHEY CLINIC FOUNDATION, INC. IS THE SOLE CORPORATE MEMBER OF EACH OF THE OTHER THREE CORPORATIONS. THE BOARD OF TRUSTEES (GOVERNING BODY) AND CORPORATE OFFICERS OF THE FOUR CORPORATIONS CONSISTS OF THE EXACT SAME MEMBERS. FORM 990, PART VI, SECTION A, LINES 4, 6, 7A & 7B EFFECTIVE MAY 1, 2012, LAHEY CLINIC FOUNDATION, INC. AND NORTHEAST HEALTH SYSTEM, INC. COMPLETED AN AFFILIATION WITH EACH OTHER AND ESTABLISHED A NEW ORGANIZATION, LAHEY HEALTH SYSTEM, INC. ("LHS"), TO SERVE AS THE PARENT OF THE COMBINED HEALTH SYSTEM. LHS IS NOW THE SOLE CORPORATE MEMBER OF LAHEY CLINIC FOUNDATION, INC. AND NORTHEAST HEALTH SYSTEM, INC. LAHEY HEALTH SYSTEM, INC. HAS, WITH RESPECT TO THE REPORTING ORGANIZATION, THE RIGHT TO EXERCISE ALL POWERS CONFERRED ON MEMBERS OF NON-PROFIT CORPORATIONS UNDER MASSACHUSETTS GENERAL LAWS CHAPTER 180, INCLUDING, WITHOUT LIMITATION, POWERS WITH RESPECT TO THE FOLLOWING: (A) APPOINTMENT AND REMOVAL OF MEMBERS OF THE BOARD OF TRUSTEES (SUBJECT TO CERTAIN TRANSITION RULES IN PLACE THROUGH MAY 1, 2016); (B) AMENDMENT OF THE ARTICLES OF ORGANIZATION; (C) AMENDMENT OF THE BY-LAWS; (D) THE SALE, LEASE, EXCHANGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE CORPORATION'S ASSETS; AND (E) THE MERGER OR CONSOLIDATION OF THE CORPORATION WITH ANOTHER CORPORATION. THE ARTICLES OF INCORPORATION OF THE REPORTING ORGANIZATION WERE AMENDED MAY 1, 2012 AND THE BY-LAWS WERE AMENDED ON SEPTEMBER 21, 2012 TO REFLECT THE AFOREMENTIONED CHANGES. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PREPARED THE IRS FORM 990 ALONG WITH INDEPENDENT TAX CONSULTANTS WHO SIGN THE RETURN AS A PAID PREPARER. LAHEY CLINIC FOUNDATION, INC.'S EXECUTIVE MANAGEMENT REVIEWED AND, WITH THE INDEPENDENT TAX CONSULTANTS, PRESENTED THE FINAL DRAFT OF IRS FORM 990 TO THE AUDIT & COMPLIANCE COMMITTEE OF THE LAHEY HEALTH SYSTEM, INC. BOARD OF TRUSTEES PRIOR TO THE FILING DATE. THE FINAL IRS FORM 990 WAS PROVIDED TO THE ENTIRE BOARD OF TRUSTEES BEFORE THE FILING DATE VIA A SECURED WEBSITE. FORM 990, PART VI, SECTION B, LINE 12C ALL OFFICERS, TRUSTEES, KEY EMPLOYEES, PHYSICIANS AND MANAGEMENT EMPLOYEES AT ALL LEVELS, ARE REQUIRED TO FILL OUT AN ANNUAL CONFLICT OF INTEREST DISCLOSURE FORM. THE LAHEY HOSPITAL & MEDICAL CENTER'S CORPORATE COMPLIANCE DEPARTMENT MONITORS AND REVIEWS EACH DISCLOSURE FOR COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. THE CORPORATE COMPLIANCE DEPARTMENT MONITORS CONFLICTS OF INTEREST THROUGH DISCLOSURE SOFTWARE, TRAINING, AND INDIVIDUAL REVIEWS WITH PHYSICIANS, KEY EMPLOYEES, AND MANAGERS. DEPENDING ON THE CONFLICT OF INTEREST: A PERSON COULD BE ASKED TO NOT PARTICIPATE IN DECISIONS MADE ON BEHALF OF THE LAHEY HOSPITAL & MEDICAL CENTER; A PERSON MAY BE TOLD THEY CANNOT BE A PRINCIPAL INVESTIGATOR ON A RESEARCH STUDY; A PERSON MAY BE TOLD THAT THEY CANNOT PERFORM THE TASK THAT CREATES THE CONFLICT; OR A PERSON COULD BE ASKED TO REMOVE THEMSELVES FROM A COMMITTEE. FORM 990, PART VI, SECTION B, LINE 14 LAHEY HOSPITAL & MEDICAL CENTER HAS WRITTEN DOCUMENT RETENTION AND DESTRUCTION POLICY KNOWN AS THE "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS". THE POLICIES, PROCEDURES, AND STANDARDS ARE MONITORED, MANAGED, AND REVISED BY THE RECORDS MANAGEMENT STEERING COMMITTEE. THE REVISED "RETENTION OF ADMINISTRATIVE AND CLINICAL DOCUMENTS" POLICY WAS APPROVED BY THE MEDICAL PRACTICE AND UTILIZATION COMMITTEE ON JULY 26, 2012. FORM 990, PART VI, SECTION B, LINE 15 & SCHEDULE J, PART I, LINE 3 INDEPENDENT MEMBERS OF THE BOARD OF TRUSTEES COMPRISE THE COMPENSATION COMMITTEE. THE COMMITTEE SETS THE COMPENSATION AND BENEFITS FOR THE CEO AND ALSO REVIEWS AND APPROVES RECOMMENDATIONS FOR THE COMPENSATION AND BENEFITS FOR DISQUALIFIED INDIVIDUALS AND OTHERS. OUTSIDE LEGAL COUNSEL ADVISES THE COMMITTEE AND RECORDS MINUTES FROM THE COMMITTEE MEETINGS. THE COMMITTEE SEEKS THE ADVICE OF EXTERNAL COMPENSATION CONSULTANTS. COMPARABILITY DATA IS PROVIDED, ANALYZED, AND DOCUMENTED BY THE EXTERNAL CONSULTANTS. THE LAHEY VICE PRESIDENT OF HUMAN RESOURCE OPERATIONS PROVIDES THE COMMITTEE WITH ANY REQUESTED INFORMATION. THE COMMITTEE MET SEVERAL TIMES THIS YEAR. FORM 990, PART VI, SECTION B, LINE 16B THE ORGANIZATION NEGOTIATES ARRANGEMENTS TO INCLUDE TERMS AND SAFEGUARDS TO ENSURE THAT THE ORGANIZATION'S EXEMPT STATUS IS PROTECTED. FROM A LEGAL PERSPECTIVE, IN-HOUSE LEGAL COUNSEL, WITH THE INPUT OF EXTERNAL LEGAL COUNSEL, REVIEWS ALL PROPOSED JOINT VENTURE AND PARTNERSHIP AGREEMENTS. FROM A FINANCIAL PERSPECTIVE, LAHEY'S FINANCE MANAGEMENT TEAM REVIEWS ALL PROPOSED JOINT VENTURE AND PARTNERSHIP AGREEMENTS. BOTH REVIEWS TAKE PLACE BEFORE LAHEY HOSPITAL & MEDICAL CENTER ENTERS INTO ANY SUCH AGREEMENTS. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. THE ORGANIZATION'S CONFLICT OF INTEREST POLICY AND OTHER COMPLIANCE POLICIES ARE MADE AVAILABLE TO THE PUBLIC VIA THE ORGANIZATION'S WEBSITE. IN ADDITION, THE ORGANIZATION PRESENTS FINANCIAL INFORMATION TO THE PUBLIC AS AN ATTACHMENT TO ITS MASSACHUSETTS OFFICE OF THE ATTORNEY GENERAL FORM PC. FORM 990, PART VII LAHEY CLINIC FOUNDATION, INC. AND ITS RELATED ORGANIZATIONS DO NOT COMPENSATE ANY TRUSTEE IN THEIR CAPACITY AS A TRUSTEE. ALL COMPENSATION PAID IS FOR WORK PERFORMED IN THE EMPLOYEE'S JOB TITLE, WHICH IS LISTED ON FORM 990, PART VII DIRECTLY FOLLOWING THE TITLE OF "TRUSTEE". FORM 990, PART VII; PART IX, LINE 5; SCHEDULE J COMPENSATION, BENEFIT AND PENSION EXPENSES FOR OFFICERS, TRUSTEES AND KEY EMPLOYEES, OF LAHEY CLINIC FOUNDATION, INC. ARE PAID BY LAHEY CLINIC FOUNDATION, INC. AS THE PARENT COMPANY OF LAHEY CLINIC HOSPITAL, INC., AND LAHEY CLINIC, INC., LAHEY CLINIC FOUNDATION, INC. ALLOCATES A SIGNIFICANT PORTION OF THE AFOREMENTIONED EXPENSES TO ITS AFFILIATES. THE AFFILIATES THEN REIMBURSE LAHEY CLINIC FOUNDATION, INC. FORM 990, PART XI, LINE 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS $ 15,180,857 UNRESTRICTED CONTRIBUTIONS 2,985,039 ASSETS RELEASED FROM TIME RESTRICTIONS 1,571,236 ASSETS RELEASED FROM RESTRICTIONS 2,461,577 PENSION & POST RETIREMENT RELATED CHANGE (485,876) GRANTS & CONTRIBUTIONS (3,285,682) CHANGE IN TEMPORARY & PERMANENT NET ASSETS 9,325,081 CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 509,923 REDESIGNATION OF GIFTS (17,758) _____________ $ 28,244,397 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Howard R Grant J.D. M.D. TITLE:TRUSTEE/PRESIDENT/CEO HOURS:57 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:John A Libertino, M.D. TITLE:TRUSTEE/CHAIR DEPT OF UROLOGY HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Richard W Nesto, M.D. TITLE:TRUSTEE/EVP/CMOO/PHYSICIAN HOURS:41 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Roger L Jenkins M.D. TITLE:TRUSTEE/PHYSICIAN HOURS:40 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Richard S D'Agostino M.D. TITLE:TRUSTEE/CHAIR DEPT CARDIO SURG HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Judith A Melin M.D. TITLE:TRUSTEE UNTIL7/16/12/ASSC CQSO HOURS:41 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Carl A Soderland M.D. TITLE:TRUSTEE UNTIL 07/16/12 /CHAIR HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Andrew G Villanueva M.D. TITLE:TRUSTEE/CMO CLINIC/PHYSICIAN HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Betsey Crawford M.D. TITLE:TRUSTEE START 7/16/12/PHYSICIA HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Arthur P Mourtzinos M.D. TITLE:TRUSTEE START 7/16/12/PHYSICIA HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Rebecca C Yang M.D. TITLE:TRUSTEE START 7/16/12/PHYSICIA HOURS:39 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Irving E Rogers III TITLE:TRUST/CHAIR/CLERK UNTIL7/16/12 HOURS:7 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Eric M Bailey TITLE:TRUSTEE HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Craig R Benson TITLE:TRUSTEE HOURS:4 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Ann Marie Connolly TITLE:TRUSTEE HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Jerald G Fishman TITLE:TRUSTEE UNTIL 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:James W Henderson TITLE:TRUST/VICE CHAIR UNTIL 7/16/12 HOURS:6 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:James D Irving TITLE:TRUSTEE HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Charles M Leighton TITLE:TRUSTEE UNTIL 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Peter J Manning TITLE:TRUSTEE UNTIL 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:J William Poduska TITLE:TRUSTEE HOURS:4 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Windle B Priem TITLE:TRUSTEE HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:James A Radley TITLE:TRUSTEE UNTIL 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Robert L Reynolds TITLE:TRUSTEE UNTIL 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Michael C Ruettgers TITLE:TRUSTEE/CHAIR OF BOARD HOURS:6 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Carolyn Ain TITLE:TRUSTEE START 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Jane C Edmonds TITLE:TRUSTEE START 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Edward Eskandarian TITLE:TRUSTEE START 7/16/12 HOURS:3 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:David G Spackman TITLE:CLERK START 7/16/12 /GEN COUNS HOURS:57 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Timothy O'Connor TITLE:OFFICER/TREASURER/EVP/CFO HOURS:57 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:Joseph C Corkery TITLE:PHYSICIAN HOURS:1 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:David M Barrett M.D. TITLE:FORMER TRUSTEE/PRESIDENT/CEO HOURS: LAHEY CLINIC HOSPITAL INC 41 MALL ROAD BURLINGTON MA 01805 042704686 HEALTH CARE MA 501(C)(3) 3 LCF INC true LAHEY CLINIC INC 41 MALL ROAD BURLINGTON MA 01805 042704683 HEALTH CARE MA 501(C)(3) 9 LCF INC true LAHEY CLINIC AFFILIATED SERVICES INC 41 MALL ROAD BURLINGTON MA 01805 043178972 HEALTH CARE MA 501(C)(3) 9 LCF INC true NORTHEAST HEALTH SYSTEM INC 85 HERRICK ST BEVERLY MA 01915 043240453 SUPPORT MA 501(C)(3) 11C III-FI LHS INC true NORTHEAST HOSPITAL CORPORATION 85 HERRICK ST BEVERLY MA 01915 042121317 HEALTH CARE MA 501(C)(3) 3 NEHS INC true NORTHEAST MEDICAL PRACTICES 85 HERRICK ST BEVERLY MA 01915 043201853 HEALTH CARE MA 501(C)(3) 9 NEHC true SEACOAST NURSING & REHABILITATION CENTER 300 WASHINGTON ST GLOUCESTER MA 01930 041305001 HEALTH CARE MA 501(C)(3) 9 NEHS INC true NORTHEAST PROFESSIONAL REG OF NURSES 800 CUMMINGS CTR BEVERLY MA 01915 201287349 HEALTH CARE MA 501(C)(3) 9 NESHC true NORTHEAST SENIOR HEALTH CORPORATION 85 HERRICK ST BEVERLY MA 01915 042731137 HEALTH CARE MA 501(C)(3) 9 NEHS INC true NORTHEAST BEHAVIORAL HEALTH 131 RANTOUL ST BEVERLY MA 01915 042777145 MENTAL ILL MA 501(C)(3) 7 NEHS INC true CAB HEALTH & RECOVERY 111 MIDDLETON ROAD DANVERS MA 01923 042400270 SUBS ABUSE MA 501(C)(3) 9 NEBHC true HEALTH & EDUCATION HOUSING SERVICES INC ZERO CENTENNIAL DRIVE PEABODY MA 01960 223232914 HUD HOUSING MA 501(C)(3) 9 NEBHC true LAHEY HEALTH SYSTEM INC 41 MALL ROAD BURLINGTON MA 01805 611665701 SUPPORT MA 501(C)(3) 11C III-FI NA false LAHEY CLINIC INSURANCE CO LTD INSURANCE BD LCF INC C-CorP 0 42423135 1.00000 PERPETUAL TRUSTS (7) SUPPORT MA SEE PART VII TRUST REMAINDER TRUSTS (17) SUPPORT MA SEE PART VII TRUST POOLED INCOME FUNDS (4) SUPPORT MA SEE PART VII TRUST NORTHEAST PROPRIETARY CORPORATION 85 HERRICK ST BEVERLY MA 01915 042855191 MEDICAL SERVICES MA NEHS INC C-CORP NORTHEAST MASSACHUSETTS INDEMNITY CO LTD GOVERNORS SQ 23 LIME TREE BAY AVE GRAND CAYMAN KY1-1102 GRAND CAYMAN KY1-1102 CJ 980440187 INSURANCE CJ NHS INC C-CORP false false false false false false false false false false true true true true true true true true Lahey Clinic Hospital Inc K-R 9045977 COST LAHEY CLINIC INC K-R 6977791 COST PERPETUAL TRUSTS R 520106 CASH REMAINDER TRUSTS R 14192 CASH POOLED INCOME FUNDS R 135521 CASH FORM 990, SCHEDULE R, PART IV, LINE 2 LAHEY CLINIC FOUNDATION INC. AND NORTHEAST HOSPITAL CORPORATION, RESPECTIVELY, HAVE FOUR AND THREE PERPETUAL TRUSTS. THE PERPETUAL TRUSTS ARE DOMICILED IN MASSACHUSETTS AND PENNSYLVANIA. FORM 990, SCHEDULE R, PART IV, LINE 3 LAHEY CLINIC FOUNDATION, INC. HAS SEVENTEEN REMAINDER TRUSTS. THE REMAINDER TRUSTS ARE DOMICILED IN MASSACHUSETTS AND NEW HAMPSHIRE. FORM 990, SCHEDULE R, PART IV, LINE 4 LAHEY CLINIC FOUNDATION, INC. AND NORTHEAST HOSPITAL CORPORATION, RESPECTIVELY, HAVE THREE AND ONE POOLED INCOME FUNDS. FORM 990, SCHEDULE R, PART V, LINE K IN ADDITION TO CONDUCTING FUNDRAISING AND SOLICIATION EFFORTS ON ITS OWN BEHALF, LAHEY CLINIC FOUNDATION, INC. ALSO CONDUCTS FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF LAHEY CLINIC HOSPITAL, INC. AND LAHEY CLINIC, INC. FORM 990, SCHEDULE R, PART V, LINE L IN ADDITION TO CONDUCTING FUNDRAISING AND SOLICITATION EFFORTS ON THEIR OWN BEHALF, LAHEY CLINIC HOSPITAL, INC. AND LAHEY CLINIC, INC. CONDUCT FUNDRAISING AND SOLICITATION EFFORTS ON BEHALF OF LAHEY CLINIC FOUNDATION, INC. FORM 990, SCHEDULE R, PART V, LINE M ALL ENTITIES WITHIN THE LAHEY HEALTH SYSTEM, INC. SHARE FACILITIES, EQUIPMENT, MAILING LISTS, AND OTHER ASSETS. FOR A LIST OF ALL ENTITIES SEE SCHEDULE R. FORM 990, SCHEDULE R, PART V, LINE N-R LAHEY CLINIC HOSPITAL, INC., LAHEY CLINIC, INC. AND LAHEY CLINIC FOUNDATION, INC., PROVIDE VARIOUS CORPORATE AND OTHER SERVICES TO EACH OTHER. THESE CORPORATIONS REIMBURSE ONE ANOTHER FOR EXPENSES INCURRED SUCH AS EMPLOYEE SALARIES, MATERIALS, SUPPLIES, UTILITIES, ETC. CASH IS ALSO TRANSFERRED BETWEEN THE THREE CORPORATIONS.