2011-08-09T11:22:06-05:00 2010-09-30 DELOITTE TAX LLP 655 WEST BROADWAY SUITE 700 SAN DIEGO CA 921018590 990 2009-10-01 954016278 IHC MANAGEMENT CORP IHCM 5626980811 12401 WASHINGTON BOULEVARD WHITTIER CA 90602 MITCHELL THOMAS 5626980811 2011-08-09 1 6192326500 2009 2016-02-24 21:20:13Z MITCHELL THOMAS 12401 WASHINGTON BOULEVARD WHITTIER CA 90602 12165473 0 X N/A X 1985 CA IHMC PROVIDES MANAGEMENT AND FINANCIAL SERVICES TO OTHER RELATED TAX-EXEMPT ENTITIES. 3 0 0 3 0 0 0 1066240 230768 613359 472225 0 1679599 702993 0 0 0 0 0 1057236 230768 1057236 230768 622363 472225 48537339 15519748 47734000 44620676 803339 -29100928 IHMC PROVIDES MANAGEMENT AND FINANCIAL SERVICES TO OTHER RELATED TAX-EXEMPT ENTITIES. 0 0 230768 Financial management and accounting services provided to InterHealth Corp., a related tax-exempt organization, and its affiliates. 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 1 3 0 0 0 0 0 0 0 0 0 0 0 0 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X Ronald Yoshihara 5626980811 12102 Washington Blvd Whittier CA 90606 X James West 1.50 X X 0 814564 174331 Mitchell Thomas 1.50 X X 0 442205 159079 Peggy Chulack 1.50 X X 0 359383 62700 0 1616152 396110 0 0 1 0 DELOITTE & TOUCHE LLP 350 SOUTH GRAND AVE STE 200 LOS ANGELES CA 900742578 ACCOUNTING SERVICES 436270 1 MANAGEMENT FEES 900099 230768 230768 230768 508763 508763 11425942 11462480 -36538 -36538 -36538 702993 230768 0 472225 BANK SERVICE CHARGES 230581 0 230581 0 LICENSES & FEES 187 0 187 0 0 0 0 0 0 0 0 0 0 0 0 0 230768 0 230768 0 31792531 6511626 16744808 9008122 48537339 15519748 225433 46829 47508567 44573847 47734000 44620676 X 803339 -29100928 803339 -29100928 48537339 15519748 X 0 1 1 X 0 X X X 0 0 0 Presbyterian Intercommunity Hospital 951934652 3 1 1 1 0 Bright Health Physicians of PIH 953942828 9 1 1 1 30246705 InterHealth Home Health Care 953036281 9 1 1 1 0 PIH Foundation 953761274 7 1 1 1 0 4 30246705 0 INTERCOMPANY PAYABLES 44573847 44573847 702993 230768 472225 -129787 -30246705 -30376492 -29904267 Part X: Description of Uncertain Tax Positions Under FIN 48: Income Taxes - The Company measures liabilities for unrecognized tax uncertainties in accordance with ASC 740, Income Taxes (formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement No. 109) which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that a Company has taken or expects to take on a tax return. The Company has not recorded a liability for unrecognized tax uncertainties in 2010 or 2009. Part XI, Line 8 - Other Adjustments: FUND BALANCE TRANSFER (FORGIVENESS OF INTERCOMPANY BALANCE) TO BHP: -30246705. X 1 1 0 1 0 0 0 0 0 0 0 James West 0 679194 0 63000 0 72370 0 8012 0 166319 0 988895 0 0 Mitchell Thomas 0 403236 0 32753 0 6216 0 8012 0 151067 0 601284 0 0 Peggy Chulack 0 264671 0 68310 0 26402 0 8012 0 54688 0 422083 0 0 Part I, Line 1a All employees are eligible for health club reimbursement and any such reimbursements were included in taxable compensation, per 2010 plan year benefits summary. Part I, Line 4b: IHC and its affiliates Sponsor a 457 (F) Plan. The following individuals participated in the plan: Peggy Chulack, Mitchell Thomas and James West. Supplemental Information Part III Part I, Line 3: Compensation for the CEO was established and paid by Presbyterian Intercommunity Hospital, ("PIH"), a related organization. PIH used the following to establish the CEO's compensation: (1) Compensation Committee; (2) Independent Compensation Consultant; (3) Form 990 of other organizations (4) Written Employment Contracts; (5) Compensation Survey or Study; (6) Approval by the Board or Compensation Committee. FORGIVENESS OF INTERCOMPANY BALANCES TO A RELATED TAX-EXEMPT ORGANIZATION 2010-09-30 30246705 BOOK VALUE 953942828 Bright Health Physicians 12401 Whittier Blvd Whittier CA 90602 501(c)(3) 0 0 0 0 Per an agreement with InterHealth Corp., (the tax-exempt parent) the intercompany liability balance of Bright Health Physicians of PIH (a related tax-exempt organization) was forgiven and a transfer of $30,246,705 from IHC Management Corp. was made on 9/30/2010. Steps are being taken to restore the negative fund balance by the year ending 9/30/2011. Form 990, Part X, Line 27: A fund balance transfer was accomplished by forgiving certain intercompany balances between IHMC and BHP during the year, resulting in a negative fund balance for IHMC. Steps are being taken to restore the negative fund balance by the year ended 9/30/11. Form 990, Part VI, Section A, line 6 Interhealth Corp. ("IHC") is the sole member of IHC management corp. ("IHMC"). Form 990, Part VI, Section A, line 7a IHC may elect members of the Board of Directors as vacancies occur. Form 990, Part VI, Section A, line 7b Decisions of the governing body may be subject to approval by the statuory member (IHC). Form 990, Part VI, Section B, line 11 Form 990 is reviewed by the Audit Committee of the parent organization, which is made up of independent directors. The Form 990s are then provided to the Board for its information. Form 990, Part VI, Section B, line 12c Each year, all management and Board of Directors members are required to complete a conflict of interest disclosure form. All positive responses are reviewed by the compliance officer. Each positive response is considered in light of magnitude of ownership interest, financial transaction(s), etc. if deemed necessary, conflicts of interest could be resolved by insisting that the incumbent either divest their ownership interest, that the organization terminate the business relationship, or even that the director resign. Directors with potential conflicts of interest may recuse themselves from voting on certain matters and/or may excuse themselves from meetings during the discussion, deliberation, and voting on of matters. Form 990, Part VI, Section B, line 15 The organization's Executive Compensation Committee engages an independent, third-party, expert compensation consultant to review its executive salaries. The consultant obtains specific organizational data from which to base its analysis (revenues, expenses, employees, service area, job descriptions, etc.). The consultant analysis includes a review of compensation trends, regulatory issues, the organization executive compensation philosophy, the methodology used for the assessment, the base salary analysis, the incentive compensation analysis, the total cash compensation analysis, and the total compensation analysis. Salary movement, incentive compensation, market benefit, and recruitment and retention trends are reviewed. This analysis is provided to the organization's Executive Compensation Committee, which is comprised of independent directors. The Executive Compensation Committee has approved a regional peer group that includes high-performing, comparably-sized California hospitals and health systems. The consultant compiles comparability data from national and regional peers, compares the organizations executive compensation with peer group compensation levels, and prepares a report that includes all of the back-up data on comparability, peer groups, and job matches. The methodology used by the consultant was two peer groups-a national peer group of comparably-sized hospitals and single hospital systems and a regional peer group of hospitals and systems in southern California, the data of which is provided to the committee in its report. The national data is used as the primary comparator for the analysis. The committee is presented with charts that compare organization salaries to the level targeted in the compensation philosophy. Neither performance nor qualifications of the incumbent is considered when providing the market data. The committee is provided with a review of the base salary analysis, a review of the incentive compensation analysis, a review of the total cash compensation analysis (base salary plus incentive), and a review of the total compensation analysis (base salary plus incentive plus benefits/perquisites). Based upon all of the above information, the consultant provides the committee with recommended salary ranges for the period assessed. The Executive Compensation Committee deliberates on the comparability data to ensure that it is appropriate in representing like organizations, like positions, and like circumstances, and that it could realistically rely on the comparability data in reaching its decision that the compensation is reasonable and represents fair market value for services rendered. The Executive Compensation Committee affirms this process to the Board of Directors. In addition, the Executive Compensation Committee reviews the specific salary of the President and Chief Executive Officer and, the Senior Vice President of Finance and Chief Financial Officer. Form 990, Part VI, Section C, line 19 The organization does not make its governing documents, conflict of interest policy, and financial statements available to the public. Form 990 and form 990-T are available upon request. The organization is not required to make form 1023 available for public inspection as it received its tax exemption prior to July 15, 1987. Form 990, Part VII: Avg hours devoted to related org(s) when related comp is reported: James West, Mitchell Thomas and Peggy Chulack work on average 40+ hours per week for their services as PIH employees, and 1.5+ hours per week for their services to related Organizations as Board members & officers. Schedule R, Part IV, Column(E): PIH Insurance Company is an unincorporated risk retention group. Schedule R, Part V, Line 2: Description of method used to determine the value of the services, cash, and other assets reported: The fair value of the working capital transfer to Bright Health Physicians was determined based on the book value of intercompany account balances. The fair value of the management fees received was based on the book value of the company's net loss. PIH COMMUNITY PHARMACY LLC 12401 WASHINGTON BLVD WHITTER CA 90602 264390142 PHARMACY CA 1406473 545465 PRESBYTERIAN INTERCOMMUNITY HOSPITAL PIH Foundation 12401 Washington Blvd Whittier CA 90602 953761274 Fundraising CA section 501(c)(3) 7 InterHealth Corp Presbyterian Intercommunity Hospital Inc 12401 Washington Blvd Whittier CA 90602 951934652 Healthcare CA section 501(c)(3) 3 InterHealth Corp Interhealth Home Health Care 12401 Washington Blvd Whittier CA 90602 953036281 Healthcare CA section 501(c)(3) 9 InterHealth Corp InterHealth Corp 12401 Washington Blvd Whittier CA 90602 953619388 support of tax-exempt affiliates CA section 501(c)(3) 11, type 1 InterHealth Corp Med Site - Hacienda Heights 12401 Washington Blvd Whittier CA 90602 953643829 Healthcare CA section 501(c)(3) 9 InterHealth Corp Bright Health Physicians of PIH 12401 Washington Blvd Whittier CA 90602 953942828 Healthcare CA section 501(c)(3) 9 InterHealth Corp PIH Insurance Company a reciprocal risk retention group 1003 Bishop Street Honolulu HI 96813 263760243 Captive Insurance HI Interhealth corp T 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 Bright Health Physicians of PIH B 30246705 Presbyterian Intercommunity Hospital Inc K 230767