2011-08-09T13:58:37-05:00 2010-12-31 Berry Dunn McNeil & Parker LLC PO Box 1100 Portland ME 041041100 990 2010-01-01 223195337 New England Life Care Inc NEWE 8002906558 600 Southborough Drive South Portland ME 04106 Thomas R Sahrmann 8002906558 2011-08-08 1 Barbara J McGuan CPA 2077752387 2011-08-08 2010 2016-02-24 21:20:13Z Charles R Gigante 600 Southborough Drive South Portland ME 04106 24145757 0 X www.nelifecare.org X 1992 ME Delivery of home health care services. 10 10 167 0 0 0 0 0 20942656 24118173 27002 27584 0 0 20969658 24145757 0 0 0 0 9959475 11224296 0 0 0 10749281 13143906 20708756 24368202 260902 -222445 8216569 9178191 2685874 3869641 5530695 5308550 Delivery of home health care services to patients discharged from member hospitals as well as homebound and ambulatory patients living in areas served by the cooperative member hospitals. 0 0 20103362 24118173 New England Life Care (NELC) provided home health services and products to ambulatory and homebound patients in Maine, Massachusetts, Vermont, and New Hampshire. NELC has provided 5,021,900 patient days of service since inception to date and 449,250 patient days of service in 2010 for an average length of treatment of 112 days in 2010. NELC participates in a national benchmarking project where NELC is benchmarked against 200 other home-infusion companies to measure levels of patient satisfaction as well as patient outcomes. 98% of patients rated extremely or mostly satisfied. NELC received the certificate from the Joint Commission, dated March 17, 2011, that provides accreditation for the next three years. 20103362 1 0 0 0 0 0 0 0 0 0 1 0 0 1 0 0 1 0 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 0 0 0 0 0 1 30 0 167 1 0 0 0 0 0 0 0 0 0 0 X 10 10 0 1 0 0 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 1 0 ME MA NH X Thomas R Sahrmann 8002906558 600 Southborough Drive South Portland ME 04106 Peter Chalke 1.00 X X 0 0 0 Jeffery P Doran 1.00 X X 0 0 0 Mary Deveau 1.00 X X 0 0 0 Bruce P King 1.00 X 0 0 0 Greg Walker 1.00 X 0 0 0 David Cawley 1.00 X 0 0 0 Jeff Sanders 1.00 X 0 0 0 Lisa Harvey-McPherson 1.00 X 0 0 0 Norm Deschene 1.00 X 0 0 0 Gerry Roche 1.00 X 0 0 0 Charles R Gigante 40.00 X 280700 0 27040 Thomas R Sahrmann 40.00 X 183090 0 25138 William Noyes 40.00 X 144273 0 31150 Andrew Heindl 40.00 X 157326 0 15939 John Mountzuris 40.00 X 142699 0 5131 Sharon Milinazzo 40.00 X 140023 0 10394 Mary Pierskalla 40.00 X 136018 0 9518 1184129 0 124310 18 0 1 1 VHA of New England 100 Commercial Street Suite 406 Portland ME 04101 Management Services 347787 1 Patient Service Revenu 621610 24093390 24093390 Miscellaneous Revenue 900099 24783 24783 24118173 6499 6499 21085 21085 21085 21085 24145757 24118173 0 27584 515968 515968 8869011 7514192 1354819 237312 196405 40907 1602005 1096326 505679 55950 7926 48024 179366 179366 54742 54742 139250 55733 83517 44239 13034 31205 9703471 9154840 548631 54065 54065 973048 697886 275162 325142 274839 50303 97990 13319 84671 22643 16177 6466 463049 332783 130266 254951 254951 Provision for Bad Debts 705963 705963 Miscellaneous 70037 23939 46098 24368202 20103362 4264840 0 8955 26066 1776448 1694974 3516815 4248831 548864 745802 201218 308649 1645338 820230 916047 825108 1248222 1328761 8216569 9178191 1985601 2995834 700273 873807 2685874 3869641 X 5530695 5308550 5530695 5308550 8216569 9178191 X -222445 300 X X 0 1 1 X 0 X 246379 112261 134118 1398959 707969 690990 825108 Due From VHA 16929 Split Dollar Life Insurance 1311832 1328761 24145757 24368202 -222445 300 300 -222145 24145757 0 24145757 0 24145757 24368202 0 24368202 0 24368202 Part XI, Line 8 - Other Adjustments: Member Equity Contributions 300. X X X X 0 0 0 0 0 1 0 0 0 Charles R Gigante 193558 0 41117 0 46025 0 12946 0 14094 0 307740 0 0 0 Thomas R Sahrmann 134896 0 40989 0 7205 0 7334 0 17804 0 208228 0 0 0 William Noyes 108632 0 34864 0 777 0 4617 0 26533 0 175423 0 0 0 Andrew Heindl 116569 0 34126 0 6631 0 6136 0 9803 0 173265 0 0 0 Sharon Milinazzo 130953 0 9070 0 0 0 4815 0 5579 0 150417 0 0 0 Part I, Line 6 A portion of the bonuses paid to the following highly paid individuals was contingent, in part, upon the net earnings of various branches of the organization overseen by the respective individuals: Thomas Sahrmann, William Noyes, Andrew Heindl, and Sharon Milinazzo. The bonuses paid to these individuals are based upon a fixed percentage of the individual's base salary. A 30% bonus is paid to Thomas Sahrmann, William Noyes, and Andrew Heindl, and a 15% bonus is paid to Sharon Milinazzo. Bonuses are paid out if it is determined they have achieved both their personal goal objectives, and the attainment of the overall NELC Company budgeted net income target. Supplemental Information Part III The Organization's CEO, Charles Gigante, is compensated through the Volunteer Hospital Association of New England, an unrelated organization. VHA is then reimbursed by the Organization for his salary and benefits. Mr. Gigante was compensated $280,700 in salary and $27,040 in benefits. Form 990, Part VI, Section A, line 3 Charles Gigante, president and CEO, is employed by VHA of New England, an unrelated management company. Form 990, Part VI, Section A, line 6 Each hospital that the Organization provides services for owns an equity share in New England Life Care, Inc. There is a single class of membership in the Corporation. Any nonprofit hospital located in Maine, New Hampshire, Massachusetts, or Vermont for which a cooperative hospital service organization is authorized to provide services under Internal Revenue Code section 501(e) is qualified for membership and may be elected to membership at any annual or special meeting of the members by a two-thirds majority vote of the entire membership of the Corporation. No member may hold more than one membership in the Corporation. The Corporation shall have no capital stock; however, membership certificates of the Corporation shall be required. No later than the 15th day of the ninth month after the end of each fiscal year, the Corporation shall allocate or pay all of its net earnings to its members on the basis of patronage of the Corporation's services performed for each member. Form 990, Part VI, Section A, line 7a The general NELC membership hospitals each determine if they would want or need representation on the NELC board. Each member organization is allowed one director on the NELC board. Once a slate is selected the full membership votes on the board appointments. Form 990, Part VI, Section A, line 7b All board members are comprised of directors from member organizations. All board decisions require a majority vote of the existing board members. Form 990, Part VI, Section A, line 8b The Organization has no formal board sub-committee to handle this function. Form 990, Part VI, Section B, line 11 The Organization's CEO and CFO formally review the annual Form 990 with the board chairman and respond to questions from the board chairman and other board members once they have reviewed a copy of the draft document. Form 990, Part VI, Section B, line 12c All employees execute a formal disclosure document on an annual basis. Any apparent conflict is reported to the compliance officer, to legal counsel, and, if appropriate, to the full board. In March 2010 and 2009 the full NELC board executed formal conflict of interest disclosure forms for 2010 and 2009 respectively. NELC is set to execute a process to receive formal documents from its board of directors on an annual basis. Form 990, Part VI, Section B, line 15 CEO compensation is reviewed and approved by the officers of the NELC board and VHA of New England. All other NELC officers, and key employee compensation matters are administered internally with board oversight within the budget process and via board review of the employee compensation disclosed on the annual Form 990. Form 990, Part VI, Section C, line 19 The Organization's governing documents, conflict of interest policy, and financial statements are made available to the public upon request. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Member Equity Contributions 300. Total to Form 990, Part XI, Line 5: 300. Oversight of Audit Process Form 990, Part XI, Line 2c: The audit process has not changed from the prior year. Explanation of Public Charity Status Schedule A, Part 1, Line 3: New England Life Care is a cooperative hospital service organization described in IRC section 170(b)(1)(A)(iii), and is comprised of a number of member hospitals. However, the Organization is not licensed in the State of Maine as a hospital. Accordingly, Schedule H is not being attached, as the Organization does not meet the definition of a hospital for purposes of Schedule H. Net Patient Service Revenue Explanation Form 990, Part VIII, Line 2a: Inception to date, NELC has provided $10,964,082 of uncompensated free care (Charity Care) to patients. Charity care services provided in 2010 amounted to $1,092,842.