2012-11-14T10:42:02-06:00 2011-12-31 861065772 DELOITTE TAX LLP 201 E KENNEDY BLVD SUITE 1200 TAMPA FL 33602 990 2011-01-01 590903331 EAST RIDGE RETIREMENT VILLAGE INC EAST 3523728400 SANTAFE HEALTHCAREINC PO BOX 749 GAINESVILLE FL 326270749 RANDALL L STUART 3523728400 2012-11-14 1 STEVEN E ROVNER P00648526 8132738300 2011 2016-02-24 21:20:13Z MICHAEL P GALLAGHER SANTAFE HEALTHCAREINC PO BOX 749 GAINESVILLE FL 326270749 18152440 0 X WWW.EASTRIDGERC.COM X 1961 FL TO PROVIDE AFFORDABLE HOUSING, MEALS, HEALTH CARE AND RELATED SERVICES TO SENIOR CITIZENS. 12 11 321 3 0 0 775 116237 15633172 15688217 71266 12869 0 1543 15705213 15818866 0 0 0 0 7582248 8140754 0 0 0 8071540 7534276 15653788 15675030 51425 143836 35103535 34389840 26094288 25195329 9009247 9194511 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 291 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 6150696 7418300 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 2011 WERE 20,428. 3699540 4461983 EAST RIDGE RETIREMENT VILLAGE PROVIDED CLEANING, LAUNDRY, MAINTENANCE, SECURITY AND UTILITIES TO SENIORS IN RESIDENTIAL UNITS. THE AVERAGE NUMBER OF UNITS SERVED IN 2011 PER DAY WERE 291. 2862836 3452841 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 2011 WERE APPROXIMATELY 144,575. 295696 356636 295696 356636 13008768 1 1 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 0 0 0 1 30 0 1 321 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 JOSEPH GIRARDI 3523378740 4300 NW 89TH BLVD GAINESVILLE FL 326065688 X JAY PERKINS 2.00 X X 0 0 0 LESLIE W BUCHANAN 1.00 X X 0 0 0 CAROLYN GARWOOD 2.00 X X 0 0 0 THORNTON HOELLE 1.00 X X 0 0 0 CONNIE BARDEN 1.00 X 0 0 0 HEATHER BELL 1.00 X 0 0 0 HARRY K BENDER 1.00 X 0 0 0 PATRICIA BERMAN 1.00 X 0 0 0 JACK DOWNEY 1.00 X 0 0 0 JAMES W HARRIS 1.00 X 0 0 0 DAVID LOEWENSTEIN PHD 1.00 X 0 0 0 MICHAEL P GALLAGHER 1.00 X X 0 2101549 252885 TROY R HART 10.00 X 0 388703 85387 STEVEN M ZIEGLER 3.00 X 0 261721 76912 0 2751973 415184 0 0 1 0 AVMED INC PO BOX 749 GAINESVILLE FL 326270749 HEALTH INSURANCE 736469 ARELLANO CONSTRUCTION 7051 SW 12TH STREET MIAMI FL 33144 CONSTRUCTION 435692 LIFE CARE SERVICES LLC 400 LOCUST STE 820 DES MOINES IA 50309 MANAGEMENT SERVICES 431030 REHABWORKS LLC PO BOX 503534 ST LOUIS MO 631503534 PHYSICAL THERAPISTS 328624 PRIDE FLOORING 10790 SW 184TH STREET MIAMI FL 33157 CONSTRUCTION 263937 8 116237 116237 HOUSING/MAINT 623000 8780070 8780070 ROOM & BOARD 623000 4221191 4221191 DUES AND ASSESSMENTS 624100 1759413 1759413 COMPANION SERVICES 623000 822123 822123 TRANS. & SOCIAL SVCS 624100 105420 105420 15688217 48855 48855 2297588 2298465 35109 -877 -35109 -35986 -35986 OTHER INCOME 623990 1543 1543 1543 15818866 15689760 0 12869 6708855 5940172 768683 50732 36913 13819 845257 746868 98389 535910 474338 61572 730356 730356 99106 99106 84780 84780 212747 107008 105739 316792 316792 158609 158609 1189512 1119822 69690 79041 51547 27494 2066351 2043414 22937 285879 21907 263972 FOOD & FOOD SVCS 742337 742337 THERAPY SERVICES 467616 467616 SUPPLIES 308161 308161 EQUIP RENTAL AND MAINT 282258 282258 510731 349615 161116 15675030 13008768 2666262 0 70418 75617 3732319 3691556 1443312 1068513 66390 58487 253171 247461 50577182 30003365 20566039 20573817 8971886 8674389 35103535 34389840 1816478 2190811 10796969 9678005 13480841 13326513 26094288 25195329 X 8998522 9180126 10725 14385 9009247 9194511 35103535 34389840 X 143836 41428 X X 0 1 1 X 0 X 261774 1107055 641026 775 116237 2126867 15349030 15065235 15448120 15633172 15688217 77183774 15610804 16172290 16089146 15633947 15804454 79310641 0 0 0 79310641 479097 394223 116742 75736 48855 1114653 479097 394223 116742 75736 48855 1114653 370 3120 1543 5033 16090271 16569633 16205888 15709683 15854852 80430327 0.98610 0.98010 0.01390 0.01960 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 544076 544076 39632222 26245525 13386697 4408150 3757840 650310 5992734 5992734 20573817 REFUNDABLE ENTRANCE FEES 7869641 DUE TO AFFILIATES 5456872 13326513 15818866 15675030 143836 41428 41428 185264 15818866 0 15818866 0 15818866 15675030 0 15675030 0 15675030 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: 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, 2011 OR 2010. TAX YEARS SUBSEQUENT TO 2007 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 2011 OR 2010. 0 1 0 0 0 0 0 0 0 MICHAEL P GALLAGHER 0 825126 0 795972 0 480451 0 229162 0 23723 0 2354434 0 118520 TROY R HART 0 293836 0 64980 0 29887 0 61873 0 23514 0 474090 0 13143 STEVEN M ZIEGLER 0 252730 0 0 0 8991 0 59043 0 17869 0 338633 0 0 PART I, LINE 3 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): MICHAEL P. GALLAGHER AND TROY R. HART ARE EMPLOYEES OF SANTAFE HEALTHCARE, INC. (SANTAFE), A RELATED SUPPORTING ORGANIZATION. THEY ARE COVERED UNDER A SEVERANCE POLICY AT SANTAFE. THE SEVERANCE POLICY INCLUDES MONTHLY PAYMENTS UP TO A MAXIMUM OF 12 MONTHS UNDER QUALIFYING CIRCUMSTANCES. 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 (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 PLAN PROVIDES ADDITIONAL RETIREMENT INCOME BASED ON A PERCENTAGE OF BASE SALARY AND VESTS AT THREE AND FIVE YEARS OF SERVICE. MR. GALLAGHER RECEIVED PAYMENTS FROM THE NONQUALIFIED DEFINED CONTRIBUTION RESTORATION AND THE SUPPLEMENTAL RETIREMENT PLANS IN 2011. THE TOTAL AMOUNT OF THESE PAYMENTS WAS $373,452. MR. HART VESTED AND RECEIVED $16,645 FROM THE SUPPLEMENTAL RETIREMENT PLAN IN 2011 . 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 (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. SUPPLEMENTAL INFORMATION PART III 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 REVENUE 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 2011, 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 2011 FORM 990 BEGAN WITH PROFESSIONAL DEVELOPMENT OF STAFF (SEVERAL OF WHICH ARE CPAS) WHICH WERE INVOLVED IN THE PREPARATION OF THE 2011 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 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 2011 FORM 990, DELOITTE TAX LLP REVIEWED THE 2011 FORM 990. A COPY OF THE 2011 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 2011 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 IRS 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. AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: FORM 990, PART VII, SECTION A, COLUMN B: MICHAEL P GALLAGHER DEVOTED AN AVERAGE OF 59 HOURS PER WEEK TO RELATED ORGANIZATIONS. TROY R HART DEVOTED AN AVERAGE OF 40 HOURS PER WEEK TO RELATED ORGANIZATIONS. STEVEN M ZIEGLER DEVOTED AN AVERAGE OF 60 HOURS PER WEEK TO RELATED ORGANIZATIONS. COMPENSATION PAID BY RELATED ORGANIZATIONS: FORM 990, PART VII, SECTION A, LINE 1A: 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 REVENUE 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 2011, 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 CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 41,428. 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 N/A 0 NORTH CENTRAL FLORIDA HOSPICE INC PO BOX 749 GAINESVILLE FL 326270749 592490893 HOSPICE CARE FL 501(C)(3) 9 N/A 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 N/A 0 BVG ACQUISITION INC PO BOX 749 GAINESVILLE FL 326270749 203701186 RETIREMENT COMMUNITY FL 501(C)(3) 9 N/A 0 NORTH FLORIDA RETIREMENT VILLAGE INC PO BOX 749 GAINESVILLE FL 326270749 591912330 RETIREMENT COMMUNITY FL 501(C)(3) 9 N/A 0 BONITA SPRINGS RETIREMENT VILLAGE INC PO BOX 749 GAINESVILLE FL 326270749 262386152 RETIREMENT COMMUNITY FL 501(C)(3) 9 N/A 0 SANTAFE SENIOR LIVING FOUNDATION INC PO BOX 749 GAINESVILLE FL 326270749 264464727 CHARITABLE & EDUCATIONAL PURPOSES FL 501(C)(3) 7 N/A 0 SF HOLDING CORPINC & SUBSIDIARY PO BOX 749 GAINESVILLE FL 326270749 592903901 HOLDING COMPANY FL N/A C 0 0 0 0 1 0 0 0 0 0 0 1 0 0 1 0 0 0 AVMED INC L 736469 FAIR MARKET VALUE OF SERVICES