2011-11-11T08:16:17-06:00 2010-12-31 BST ADVISORS LLC 26 COMPUTER DRIVE WEST ALBANY NY 12205 990 2010-01-01 141641028 CAPITAL DISTRICT PHYSICIANS' HEALTH PLAN INC CAPI 5186413000 500 PATROON CREEK BLVD ALBANY NY 122061057 JOHN D BENNETT MD 5186413000 2011-11-11 1 KEVIN T MCGRATH 5184596700 2010 2016-02-24 21:20:13Z JOHN D BENNETT MD 500 PATROON CREEK BLVD ALBANY NY 122061057 1069734954 0 X WWW.CDPHP.COM X 1984 NY CDPHP PROVIDES QUALITY HEALTH CARE AT A REASONABLE COST FOR CDPHP SUBSCRIBERS AND OPERATES AS A MODEL FOR THE DELIVERY, FINANCING, AND ADMINISTRATION OF HEALTH CARE SERVICES. 15 7 971 0 0 0 0 0 1028655245 1023699446 8745573 9667120 0 0 1037400818 1033366566 0 0 892621099 872495089 51761881 57311565 0 0 0 59525569 60576259 1003908549 990382913 33492269 42983653 457768479 500325970 188087386 184638449 269681093 315687521 CDPHP PROVIDES QUALITY HEALTH CARE AT A REASONABLE COST FOR CDPHP SUBSCRIBERS AND OPERATES AS A MODEL FOR THE DELIVERY, FINANCING, AND ADMINISTRATION OF HEALTH CARE SERVICES. 0 0 502281861 544542225 CDPHP PROVIDES HEALTH CARE BENEFITS TO GROUPS AND INDIVIDUALS IN OUR COMMUNITY. AS OF DECEMBER 31, 2010, 133,847 SUBSCRIBERS WERE ENROLLED. 217149224 226517945 CDPHP'S MEDICARE PROGRAM PROVIDES HEALTH CARE COVERAGE TO 21,304 MEMBERS IN NEW YORK STATE. 158957122 169130306 CDPHP'S MEDICAID PROGRAM PROVIDES HEALTH CARE COVERAGE TO 57,244 MEMBERS IN NEW YORK STATE. 78242086 83508970 78242086 83508970 956630293 0 0 1 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 0 0 0 0 1 1 1 0 1 5704 0 1 971 1 0 1 BD 0 0 0 0 X 15 7 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X BETHANY SMITH CORP CONTROLLER 5186413000 500 PATROON CREEK BLVD ALBANY NY 12206 PETER T BURKART MD 11.00 X 72470 0 0 RICHARD E LAVIGNE MD 8.00 X 42340 0 0 KELLY A WATERS 7.00 X 31857 0 0 JAMES MICHAEL BRENNAN 9.00 X 57024 0 0 JAMES C LEYHANE MD 8.00 X 34645 0 0 STUART A ROSENBERG MD 9.00 X 47740 0 0 GENNARO A DANIELS MD 9.00 X 48615 0 0 ROBERT C GRIFFIN 10.00 X 72587 0 0 MARTHA H POFIT 9.00 X 40627 0 0 M BRUCE COHEN 10.00 X 75820 0 0 DANIEL FRASCA 10.00 X 61492 0 0 DOUGLAS P LARSEN 8.00 X 33750 0 0 ANTHONY J MARINELLO MD 7.00 X 31850 0 0 BRUCE E COPLIN MD 8.00 X 32857 0 0 WILLIAM P PHELAN 8.00 X 43995 0 0 JOHN D BENNETT MD 40.00 X 847456 0 16065 BARBARA DOWNS 40.00 X 491423 0 22298 BRUCE NASH MD 40.00 X 552209 0 16065 CAROLE MONTEPARE 40.00 X 262228 0 24098 FREDERICK GALT ESQ 40.00 X 362548 0 27465 ROBERT HINCKLEY 40.00 X 367238 0 25657 LINDA NAVARRA 40.00 X 354603 0 11886 ROLANDO J PORTOCARRERO CMA 40.00 X 409070 0 26035 SCOTT KLENK 40.00 X 319776 0 28976 BRIAN MORRISSEY 40.00 X 298657 0 23808 CLIFFORD WALDMAN MD 40.00 X 339127 0 21365 CYNTHIA WICKS 40.00 X 263203 0 24084 MARTIN SYMANSKY MD 40.00 X 276773 0 25658 KATHLEEN CONLEY 40.00 X 259120 0 6338 KIRK PANNETON 40.00 X 263775 0 22269 6394875 0 322067 100 0 1 0 TRIZETTO PO BOX 973341 DALLAS TX 75397 CONSULTING 3711644 HEALTH DIALOG SERVICES CORP PO BOX 845457 BOSTON MA 02284 CONSULTING 3445621 INGENIX PO BOX 27116 SALT LAKE CITY UT 84127 CONSULTING 1398807 LEPRECHAUN LLC 6000 WESTERN PLACE FT WORTH TX 76107 CONSULTING 1224217 PARTNERS & SIMON 25 DRY DOCK AVE BOSTON MA 02210 MARKETING 960205 17 COMMERICAL PREMIUMS 524114 544542225 544542225 MEDICARE PREMIUMS 524114 226517945 226517945 MEDICAID PREMIUMS 524114 169130306 169130306 CHILD HEALTH PLUS PREM 524114 42249901 42249901 HEALTHY NY PREMIUMS 524114 25562874 25562874 15696195 15696195 1023699446 9423957 9423957 36599551 12000 36253815 114573 345736 -102573 243163 243163 1033366566 1023699446 0 9667120 872495089 872495089 3756268 1590434 2165834 56150 56150 40594228 25577690 15016538 2635119 1674241 960878 6862720 4286490 2576230 3407080 2147682 1259398 367469 367469 408565 326852 81713 176605 176605 552149 552149 6306269 5750629 555640 3690088 3690088 4477196 2333505 2143691 4066285 3944297 121988 3803150 1901575 1901575 462432 323702 138730 372649 210324 162325 698116 558492 139624 8009783 5606848 2402935 470074 470074 BROKER COMMISSIONS 10941494 10941494 CONSULTING & OUTSOURCED 8685438 6727988 1957450 NYS INSURANCE ASSESSMEN 5143646 5143646 OTHER EXPENSES 1506626 1003509 503117 RECRUITMENT 438225 219113 219112 990382913 956630293 33752620 0 800 800 72195411 86983500 73107235 81016779 3129873 5389632 69297790 29675642 47155832 39622148 210968978 236220135 51210350 51092976 457768479 500325970 155256729 163569918 14660590 13118042 18170067 7950489 188087386 184638449 X 269681093 315687521 269681093 315687521 457768479 500325970 X 42983653 3022775 X X 0 1 1 X 1 1 2146 0 2146 2146 1 FRIENDS OF NEIL BRESLIN PO BOX 2171 ALBANY NY 12210 161518968 500 0 CITIZENS FOR HANNON PO BOX 398 GARDEN CITY NJ 11530 112416066 500 0 FRIENDS OF BETTY LITTLE PO BOX 4730 QUEENSBURY NY 12804 141785746 120 0 FRIENDS OF BOB REILLY 475 ALBANY SHAKER ROAD LOUDONVILLE NY 12211 201406709 250 0 FRIENDS OF SENATOR SEWARD PO BOX 20 ONEONTA NY 13820 161403268 500 0 REPUBLICAN STATE COMMITTEE 315 STATE STREET ALBANY NY 12210 131214350 126 0 0 0 0 176605 176605 176605 ORGANIZATIONS DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES: PART I-A, LINE 1: CDPHP PROVIDES FINANCIAL CONTRIBUTIONS WITHIN THE IRS REGULATIONS TO SUPPORT VARIOUS POLITICAL PERSONS DURING THE YEAR. PART IV, SUPPLEMENTAL INFORMATION: PART I-C CONTINUATION: CMTE TO REELECT CO.EXEC JIMINO PO BOX 144, TROY NY 12181 EIN: C21234 COL(D) AMOUNT: 150. COL (E) AMOUNT: 0. 3496590 1449927 2046663 63571185 28225715 35345470 2230015 2230015 39622148 INVESTMENTS IN SUBSIDIARIES 2592976 RECEIVABLE - CDPHP UNIVERSAL BENEFITS, INC. 48500000 51092976 CLAIMS ADJUSTMENT EXPENSE 2453940 DUE TO INTERCOMPANIES 5496549 7950489 1033366566 990382913 42983653 4340150 501375 4841525 47825178 1035349636 3022775 1818750 4841525 1030508111 552149 2306306 2858455 1033366566 987524458 102573 102573 987421885 2961028 2961028 990382913 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: UNDER ASC 740 CDPHP ADOPTED THE AUTHORITATIVE GUIDANCE ON ACCOUNTING FOR AND DISCLOSURE OF UNCERTAINTY IN TAX POSITIONS ON JANUARY 1, 2009, WHICH REQUIRE CDPHP TO DETERMINE WHETHER A TAX POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED UPON EXAMINATION, INCLUDING RESOLUTION OF ANY RELATED APPEALS OF LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITIONS. FOR TAX POSITIONS MEETING THE MORE LIKELY THAN NOT THRESHOLD, THE TAX AMOUNT RECOGNIZED IN THE FINANCIAL STATEMENTS IS REDUCED BY THE LARGEST BENEFIT THAT HAS A GREATER THAN FIFTY PERCENT LIKELIHOOD OF BEING REALIZED UPON THE ULTIMATE SETTLEMENT WITH THE RELEVANT TAXING AUTHORITY. CDPHP HAS DETERMINED THAT THE ADOPTION OF THIS AUTHORITATIVE GUIDANCE DID NOT RESULT IN AN ADJUSTMENT. PART XI, LINE 8 - OTHER ADJUSTMENTS: LOSS IN EQUITY OF CONSOLIDATED SUBSIDIARIES -1,040,324. LOSS ON CARTER INSURANCE CO LTD. -277,051. INTEREST RECEIVABLE FROM CDPHP UBI, INC. 1,818,750. PART XII, LINE 2D - OTHER ADJUSTMENTS: INTEREST RECEIVABLE DUE FROM AFFILIATE - CDPHP UNIVERSAL BENEFITS, INC. 1,818,750. PART XII, LINE 4B - OTHER ADJUSTMENTS: LOSS ON DISPOSITION OF PROPERTY AND EQUIPMENT -102,573. REINSURANCE INCOME NETTED IN CLAIM EXPENSES 2,408,879. PART XIII, LINE 4B - OTHER ADJUSTMENTS: REINSURANCE INCOME NETTED IN CLAIMS EXPENSE 2,408,879. INVESTMENT FEES RECLASSIFICATION 552,149. X X X X X 0 0 0 0 0 0 0 1 0 JOHN D BENNETT MD 577769 0 220535 0 49152 0 8575 0 7490 0 863521 0 0 0 BARBARA DOWNS 350205 0 102729 0 38489 0 8575 0 13723 0 513721 0 0 0 BRUCE NASH MD 381505 0 116920 0 53784 0 8575 0 7490 0 568274 0 0 0 CAROLE MONTEPARE 216068 0 262 0 45898 0 8575 0 15523 0 286326 0 0 0 FREDERICK GALT ESQ 257322 0 76802 0 28424 0 7456 0 20009 0 390013 0 0 0 ROBERT HINCKLEY 256136 0 76658 0 34444 0 8648 0 17009 0 392895 0 0 0 LINDA NAVARRA 243754 0 76713 0 34136 0 7925 0 3961 0 366489 0 0 0 ROLANDO J PORTOCARRERO CMA 270940 0 85985 0 52145 0 7700 0 18335 0 435105 0 0 0 SCOTT KLENK 217684 0 68192 0 33900 0 8717 0 20259 0 348752 0 0 0 BRIAN MORRISSEY 213596 0 51770 0 33291 0 8169 0 15639 0 322465 0 0 0 CLIFFORD WALDMAN MD 231631 0 64294 0 43202 0 8642 0 12723 0 360492 0 0 0 CYNTHIA WICKS 181837 0 50212 0 31154 0 7075 0 17009 0 287287 0 0 0 MARTIN SYMANSKY MD 209216 0 30161 0 37396 0 8649 0 17009 0 302431 0 0 0 KATHLEEN CONLEY 195871 0 54823 0 8426 0 0 0 6338 0 265458 0 0 0 KIRK PANNETON 225955 0 30161 0 7659 0 5260 0 17009 0 286044 0 0 0 SUPPLEMENTAL INFORMATION PART III COMPENSATION INFORMATION SCHEDULE J - COMPENSATION INFORMATION QUESTION 7 - CDPHP HAS A MANAGEMENT INCENTIVE PROGRAM THAT IS BASED UPON THREE CRITERIA: ATTAINMENT OF PERSONAL AND COMPANY GOALS; ACHIEVEMENT OF QUALITY AND SERVICE TARGETS; AND ACHIEVEMENT OF ENROLLMENT TARGETS. THE BOARD ANNUALLY APPROVES THE METRICS TO BE USED TO ASSESS EACH CRITERION. THE MANAGEMENT INCENTIVE IS PAYABLE ONLY IF DETERMINED TO BE AFFORDABLE BY THE BOARD. IN ADDITION, THE BOARD HAS FINAL DISCRETION AT THE CLOSE OF THE YEAR TO MAKE THE INCENTIVE PAYMENT. SEE PART V 0 SCHEDULE L: PART IV EXPLANATION BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS (A) NAME OF PERSON: CAROLYN NEARY(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DAUGHTER OF JOHN BENNETT(C) AMOUNT OF TRANSACTION: $56,150(D) DESCRIPTION OF TRANSACTION: EMPLOYEE(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: NEW YORK ONCOLOGY HEMATOLOGY(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. PETER T. BURKART MD(C) AMOUNT OF TRANSACTION: $18,228,259(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: ST. PETER'S HEALTHCARE SERVICES(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. BRUCE E COPLIN MD(C) AMOUNT OF TRANSACTION: $63,747,524(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: PRIME CARE PHYSICIANS LLC(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. RICHARD E. LAVIGNE MD(C) AMOUNT OF TRANSACTION: $10,399,484(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: DOUGLAS LARSEN, D.O.(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. DOUGLAS P. LARSEN(C) AMOUNT OF TRANSACTION: $156,243(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: COMMUNITY CARE MEDICAL GROUP(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. JAMES C. LEYHANE MD(C) AMOUNT OF TRANSACTION: $21,526,111(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: CAPITAL CARE MEDICAL GROUP(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. ANTHONY J. MARINELLO(C) AMOUNT OF TRANSACTION: $9,057,953(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: CAP DISTRICT COLON/RECTAL SURG ASSOC.(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DR. GENNARO A DANIELS MD(C) AMOUNT OF TRANSACTION: $497,812(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NO(A) NAME OF PERSON: CAPITAL REGION UROLOGICAL SURG(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: DIR. STUART A. ROSENBERG(C) AMOUNT OF TRANSACTION: $1,931,965(D) DESCRIPTION OF TRANSACTION: SEE EXPLANATION BELOW(E) SHARING OF ORGANIZATION REVENUES? = NOPURSUANT TO ITS CERTIFICATE OF INCORPORATION AND BYLAWS, EIGHT OF THE MEMBERS OF THE CDPHP BOARD OF DIRECTORS MUST BE PRACTICING PHYSICIANS. AS PRACTICING PHYSICIANS, EACH OF THESE PHYSICIAN DIRECTORS HAS A STANDARD PARTICIPATING PROVIDER AGREEMENT WITH CDPHP PURSUANT TO WHICH THEY ARE PAID FEES FOR SERVICES RENDERED TO CDPHP MEMBERS. PURSUANT TO THE PARTICIPATING PROVIDER AGREEMENT, GENERALLY, THE PHYSICIAN DIRECTORS ARE PAID IN ACCORDANCE WITH THE STANDARD FEE SCHEDULE APPLICABLE TO ALL PHYSICIANS.HOWEVER, ALTHOUGH EACH PHYSICIAN HAS AN INDIVIDUAL CONTRACT WITH CDPHP, PAYMENT FOR SERVICES RENDERED BY INDIVIDUAL PHYSICIANS ARE PAYABLE TO THAT PHYSICIAN'S PRACTICE, NOT TO THE PROVIDER INDIVIDUALLY. PAYMENTS MADE BY CDPHP TO THE PROVIDER PRACTICE ARE NOT ALLOCATED OR REPORTED BY CDPHP BY INDIVIDUAL PROVIDER. ACCORDINGLY, PAYMENTS REPORTED HEREIN REFLECT THE AMOUNTS PAID IN FULL TO THE PRACTICE. AMOUNTS REPORTED ABOVE WERE PAID TO THE ORGANIZATIONS WHERE THE PHYSICIAN DIRECTOR IS AN EMPLOYEE, PARTNER, SHAREHOLDER OR BOARD MEMBER OF THE ORGANIZATION. FORM 990, PART III, LINE 4D - OTHER PROGRAM SERVICES DESCRIPTION GRANTS EXPENSES REVENUE ----------- -------- -------- ---------- CHILD HEALTH PLUS - 18,727 MBRS - 0 - 40,969,784 42,249,901 HEALTHY NEW YORK - 9,310 MBRS - 0 - 23,774,818 25,562,874 FAMILY HEALTH PLUS - 5,438 MBRS - 0 - 13,497,484 15,696,195 ---------- ---------- TOTALS 78,242,086 83,508,970 FORM 990, PART VI, SECTION A, LINE 6 THE CORPORATION CURRENTLY HAS 556 CORPORATE MEMBERS, ALL OF WHOM ARE OR WERE PARTICIPATING PHYSICIANS WITH CDPHP. FORM 990, PART VI, SECTION A, LINE 7A THE CORPORATE MEMBERS ELECT THE BOARD OF DIRECTORS OF CDPHP. FORM 990, PART VI, SECTION A, LINE 7B CORPORATE MEMBERS MUST APPROVE ANY CHANGE IN THE CORPORATION'S MISSION STATEMENT; ANY CHANGE IN THE CORPORATION'S BY-LAWS; ANY CHANGE IN THE CLASSES OF CORPORATE MEMBERSHIP; OR CHANGES TO THE BOARD OF DIRECTORS. IN ADDITION, THE CLASS "A" MEMBERS MUST APPROVE ANY CHANGES TO THE BYLAWS OR CERTIFICATE OF INCORPORATION THAT ALTER THE RIGHTS OF CLASS "A" MEMBERS; ANY MERGER CONSOLIDATION, REORGANIZATION OR DISSOLUTION OF THE CORPORATION; OR ANY CONVERSION FROM NOT-FOR-PROFIT STATUS. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS REVIEWED BY THE CORPORATE CONTROLLER AND THE CFO. IT IS THEN PRESENTED TO THE FINANCE COMMITTEE OF THE BOARD FOR REVIEW AND APPROVAL. FINALLY, IT IS PRESENTED TO THE BOARD FOR REVIEW AND APPROVAL. IN-DEPTH DISCUSSIONS ARE HELD AT EACH OF THE BOARD LEVEL REVIEWS. FORM 990, PART VI, SECTION B, LINE 12C CDPHP HAS A CONFLICT OF INTEREST POLICY. CDPHP REGULARLY POLLS EMPLOYEES AND BOARD MEMBERS REGARDING POTENTIAL CONFLICT OF INTEREST SITUATIONS. ANY ACTUAL OR POTENTIAL CONFLICTS DISCLOSED ARE PRESENTED TO THE BOARD, AT LEAST ANNUALLY. FORM 990, PART VI, SECTION B, LINE 15 CDPHP USES OUTSIDE COMPENSATION CONSULTING FIRMS. THESE FIRMS UTILIZE CUSTOM AND PUBLISHED SURVEYS. INFORMATION IS PROVIDED TO CDPHP'S BOARD COMPENSATION COMMITTEE FOR ANNUAL APPROVAL OF EXECUTIVE POSITIONS. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL DOCUMENTS ARE FILED QUARTERLY WITH THE DEPARTMENT OF INSURANCE AND ARE AVAILABLE THROUGH THE FREEDOM OF INFORMATION ACT (FOIA). GOVERNING DOCUMENTS ARE ALSO AVAILABLE THROUGH THE DEPARTMENT OF INSURANCE, ALSO THROUGH THE FOIA. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 4,340,150. LOSS ON CARTER INSURANCE CO., LTD. -277,051. LOSS IN EQUITY OF CONSOLIDATED SUBSIDIARY -1,040,324. TOTAL TO FORM 990, PART XI, LINE 5: 3,022,775. PART XII, LINE 2C EXPLANATION THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. CAPITAL DISTRICT PHYSICIAN'S HEALTHCARE NETWORK INC 500 PATROON CREEK BLVD ALBANY NY 12206 141745298 PREF PROV ORG NY N/A C 966552 2301142 1.00000 CARTER INSURANCE COMPANY LTD 40 CHURCH ST PO BOX HM2062 HAMILTO HMHX BD 141641028 CAPTIVE REINS BD N/A C 1626423 3352182 1.00000 CDPHP UNIVERSAL BENEFITS INC 500 PATROON CREEK BLVD ALBANY NY 12206 161520935 ARTICLE 43 INS NY N/A C -25095342 84310016 1.00000 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 CAPITAL DISTRICT PHYSICIANS' HEALTHCARE NETWORK INC M 961102 ALLOCATION CAPITAL DISTRICT PHYSICIANS' HEALTHCARE NETWORK INC N 4271836 ALLOCATION CAPITAL DISTRICT PHYSICIANS' HEALTHCARE NETWORK INC P 2789889 ALLOCATION CDPHP UNIVERSAL BENEFITS INC M 5590904 ALLOCATION CDPHP UNIVERSAL BENEFITS INC N 14294770 ALLOCATION CDPHP UNIVERSAL BENEFITS INC P 8814667 ALLOCATION CAPITAL DISTRICT PHYSICIANS' HEALTHCARE NETWORK INC B 1200000 CASH PAYMENT