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        <ReturnReference>Part I, Line 4b:</ReturnReference>
        <Explanation>Part I, Line 4b: Employer Contribution to 457(f) executive retirement benefit plan James Gardner $467,821 Anthony Herdener $108,261 Carol Burrell $182,225 Dane Henry $ 22,557 Joseph Fulbright $ 21,950 Tracy Vardeman $ 21,164 Paul VerValin $ 32,502 Payout from 457(f) Plan (including vested earnings on previously reported compensation) Joseph Fulbright $85,251</Explanation>
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    <IRS990ScheduleL documentId="RetDoc1042800001">
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        <NameOfInterestedPerson>
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            <BusinessNameLine1>Chestnut Mountain Family Medicine LLC</BusinessNameLine1>
          </NameBusiness>
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        <Relationship>Eric Bohn, Board Member owns 33% of LLC</Relationship>
        <AmountOfTransaction>275283</AmountOfTransaction>
        <DescriptionOfTransaction>Northeast Georgia Physicians Group, Inc. pays fair market rent to Chesnut Mountain Family Medicine, LLC. Eric Bohn, Board Member of the organization owns 33% of Chesnut Mountain Family Medicine.</DescriptionOfTransaction>
        <SharingOfRevenues>0</SharingOfRevenues>
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    <IRS990ScheduleO documentId="RetDoc1044400001">
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 6</Identifier>
        <Explanation>Northeast Georgia Health System, Inc. is the sole member of Northeast Georgia Physicians Group, Inc.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 7a</Identifier>
        <Explanation>Six members of the Board of Directors of Northeast Georgia Physicians Group, Inc. are appointed by the Board of Northeast Georgia Health System, Inc. - a related 501(c)(3) organization. Four other members serve on the board by virtue of their office at Northeast Georgia Health System, Inc. The remaining board members are elected by physicians employed by the organization.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section A, line 7b</Identifier>
        <Explanation>Six members of the Board of Directors of Northeast Georgia Physicians Group, Inc. are appointed by the Board of Northeast Georgia Health System, Inc. - a related 501(c)(3) organization. Four other members serve on the board by virtue of their office at Northeast Georgia Health System, Inc. The remaining board members are elected by physicians employed by the organization.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 11</Identifier>
        <Explanation>Information for the Form 990 was provided to an independent certified public accountant for preparation of return. After the return was prepared, it was reviewed by senior financial management. The 990 is made available to members of the board prior to filing.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 12c</Identifier>
        <Explanation>Board members are required to complete a conflict of interest questionnaire annually. Employees attest to their understanding and reporting/disclosure requirements at hire and annually. Compliance is monitored continuously throughout the year by the board.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section B, line 15</Identifier>
        <Explanation>The compensation committee of the Northeast Georgia Health System Board (NGHS Board) has developed and installed compensation policies and procedures that seek to further the purpose of NGHS and affiliates and the importance of these policies to attract and retain key employees. The compensation committee is composed entirely of directors who are not employees of NGHS. All decisions of the compensation committee are reviewed and ratified by the NGHS Board. The committee's methodology and approach incorporates both qualitative and quantitative considerations, which are reflected in the committee's determinations concerning key employee compensation and the specific components thereof. The compensation decisions of the committee are described below as to each of the three categories. Base Salary Annual base salaries are set at competitive levels with healthcare institutions of a similar size and complexity from throughout the country. Specifically the committee considers peer group comparisons from survey data for other health systems, recommendations from an independent compensation consultant, and individual performance assessments for each position. In each instance the committee members reach a consensus based on the combination of available information, and the committee sets a base salary level for each key employee. Performance Based Variable Compensation Numerous performance goals are quantitative in nature, resulting in a performance based variable compensation component that is weighted toward attaining NGHS Board-approved goals and objectives. Annual goals and objective are established through a formal planning process involving board and community members. The board approves theses goals and objectives at the beginning of each year. Officers and key employees receive cash awards as a formula driven percentage of base salary levels based on achievement and predetermined individual objectives. Benefits and Retention Programs Benefit categories and amounts are determined by a comparison process similar to determining base salaries with positions and organizations similar to NGHS. Included in benefits are retirement programs to enhance retention and progress toward long-term goals within NGHS' mission.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part VI, Section C, line 19</Identifier>
        <Explanation>Financial statements and statistics are filed quarterly with Digital Assurance Certification, LLC (DAC Bond). DAC Bond serves as a disclosure dissemination agent for issuers of municipal bonds electronically posting and transmitting information to repositories and investors. All other items are available upon request.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>Form 990, Part III. Line 4A, Program Service Accomplishments:</Identifier>
        <Explanation>Located in the northeastern section of the state in Hall County, Northeast Georgia Medical Center (NGMC) is a 557-bed not-for-profit regional referral facility that provides a comprehensive range of acute care and specialty services. Through its role as a regional safety net hospital, NGMC serves the area's low-income, uninsured, underinsured and other vulnerable populations. Approximately half of NGMC's patients come from outside of Hall County. As a not-for-profit hospital, NGMC reinvests all funds in excess of operating expenses into healthcare services for the community. The Medical Center receives no operating funds from Hall or other counties served, and services are funded by revenue generated from operations. NGMC provided indigent care to Hall County residents at a cost of $16 million in 2010, with another $9 million provided to regional residents outside Hall County. The Medical Center's charity care policy provides financial assistance up to 400 percent of the poverty level - double the amount generally provided by other hospitals across the State. The hospital is a key participant and fiscal sponsor in programs aimed at treating low-income and uninsured patients, including the Good News Clinics, the largest free health care clinic in Georgia, and Health Access Initiative (HAI), a local service that matches financially eligible patients to specialty physicians and provides access to care, among other services. Additionally: - Located in Georgia's fastest growing region , the 59-year-old hospital has expanded considerably in recent years to meet demand and update its aging plant, investing a quarter of a billion dollars in its facilities; - NGMC's quality of care is often awarded, and the hospital ranks among the top in the state for cardiac services; - Since 2000, NGMC has provided nearly three times the amount of indigent and charity care set forth in requirements by the Georgia Department of Community Health for successful passage of a certificate of need for new services, and, unlike many Georgia not-for-for profit hospitals held to the same requirements, NGMC does not receive tax funding from its local county to help fund indigent care to area residents; - NGMC is the primary hospital for low-income patients in Gainesville-Hall County and throughout the region in counties such as Banks, Lumpkin, and White, where many key medical specialties are not available. NORTHEAST GEORGIA MEDICAL CENTER NGMC provided the sixth highest dollar amount of indigent/charity care in the state in 2009. NGMC serves as a financial engine for its local economy. In 2009 (latest numbers available), the hospital generated nearly a billion dollars in revenue for the local economy, according to a report by the Georgia Hospital Association, which applied an economic multiplier to the hospital's direct expenditures to account for the "ripple" effect the hospital's spending has on other sectors of the local economy. Applying an employment multiplier, the report found that the hospital sustained more than 8,000 jobs in 2009 in addition to the more than 4,000 employed directly by Northeast Georgia Health System. Under the Internal Revenue Code, a tax-exempt organization, classified as a 501(c)(3) charity, is required to: have a mission that will benefit its community; reinvest all surplus funds in the organization in a way that benefits the community; compensate executives, contractors and other employees in accordance to fair market value; remain accountable to the community; refrain from participating in political campaigns for or against candidates; refrain from lobbying as a substantial part of its activities; and, remain financially accountable to the community by not allowing any portion of its net earnings to benefit any private shareholder or individual. As a not-for-profit hospital, NGMC carries additional responsibilities, as established by the IRS in 1969: - Operate a full-time emergency room that is available to all people, regardless of their ability to pay; - NGMC operates the 6th busiest ER in Georgia. In 2010, approximately 26% of all NGMC's emergency room visits were made by self-pay patients. - Provide non-emergency services to anyone able to pay; - Northeast Georgia Health System provides high quality, advanced specialty and primary healthcare services to the Northeast Georgia community, serving almost 700,000 people in more than 13 counties. In FY2010, NGMC's payor mix was 55% Medicare/Medicaid, 33% commercial insurance and 12% self-pay. - Participate in Medicaid and Medicare; - 55% of patients served by NGMC in FY10 were Medicaid and Medicare patients. - Create a governing board that is representative of the community it serves; - More than 75 community members are actively involved in governance through Northeast Georgia Health System, NGMC and other subsidiary boards and committees. - Allow medical staff privileges to any professional who is qualified and applies; and, - NGMC extends open medical staff privileges to qualified physicians for most services such as pathology, radiology and anesthesiology. - Reinvest surplus funds in operations. - As not-for-profit organizations, NGMC and its parent organization, Northeast Georgia Health System, reinvest all revenue generated above operating expenses into the community through new facilities, such as the North Patient Tower and Women and Children's Pavilion, and in new advanced technology, such as the region's first 3T MRI, the State's first Stereotaxis Odyssey magnetic catheterization system and Region 2's only hyperbaric oxygen therapy chamber. NGMC participates in the Indigent Care Trust Fund (ICTF), a 20-year-old program that expands Medicaid eligibility and services, supports rural health care facilities that serve the medically indigent and funds primary health care programs for medically indigent Georgians. Georgia's Disproportionate Share Hospital (DSH) program is funded through the ICTF, and assists hospitals and other health providers that care for high proportions of Medicaid, uninsured and/or low-income patients. In 2010, NGMC received $8,308,587 in net funds allocated through the ICTF and DSH program to partially offset a financial loss of $41.5 million in cost the Medical Center incurred treating uninsured and Medicaid patients.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>COMMUNITY BENEFITS Situated in a region with an uninsured rate that is higher than the state average, area health consumers can face significant barriers in affording care. NGMC has significantly contributed to local programs that aim to address these issues, primarily through its support of the Good News Clinics and Health Access Initiative (HAI). NGMC provided the sixth highest dollar amount of indigent/charity care in the state in 2009. Good News Clinics Within Hall County, there are several low-cost alternatives to help people avoid choosing the hospital's emergency department for primary care services. Serving as the largest free clinic in Georgia, the Good News Clinics offers primary medical, ophthalmology services and dental care, as well as medications to indigent, homeless and low-income individuals at or below 150 percent of the Federal Poverty Level in Hall County who have no healthcare insurance and cannot afford his or her medical care. All services are provided free of charge, even though the clinic receives no federal, state or local government funding. Patients who need specialty care are referred to Health Access Initiative. Since 1999, NGMC has provided $2,982,307 in support of Good News Clinics I and an average annual support of $307,002 from FY2007-2010. In 2010, NGMC contributed over $350,000 in financial support. Hall County Medical Society's Health Access Initiative Launched in 2003, Hall County's Health Access Initiative (HAI) is a referral service founded by the Hall County Medical Society that matches financially eligible patients to physicians who have volunteered to provide free treatment to patients who qualify for services, provides help with obtaining medications and offers ancillary services such as x-rays and translation services. HAI also provides ancillary services and outreach education for its community, and collaborates with other medical centers, such as NGMC. In 2010, approximately 1,800 people were assisted with needed medical care through HAI. To qualify for its services, a patient's income must be at or below 150 percent Federal Poverty Level and have no medical insurance. The patient must live in Hall County and must be referred by a physician that is in the HAI network. First conceived in 1998, the need for the program was largely determined by a community needs assessment conducted by Healthy Hall, a coalition of community members, including NGMC. Since its launch, the hospital has fiscally contributed to HAI. Specifically, in 2010, over $11 million in donated hospital services was provided to low income, uninsured patients through Health Access. In addition, since 2005, HAI has received more than $988,000 from The Medical Center Foundation. Other HAI partners include the Hall County Health Department and MedLink of Gainesville, a federally qualified health center. In 2006, Healthcare Georgia Foundation named the HAI program "Community Service Collaborative of the Year." NGMC also plays a major role in funding a primary care clinic at the Hall County Health Department to improve access to primary healthcare services for low-income people in our community. In FY10, NGMC contributed over $1.2 million. In 2010, Northeast Georgia Medical Center received a National Charitable Healthcare Award from Jackson Healthcare for collaborative support of Good News Clinics and Health Access Initiative. ADDITIONAL HIGHLIGHTS OF COMMUNITY BENEFIT PROGRAMS NGMC values cooperative efforts with community services and other healthcare providers to improve the health status of area citizens. NGMC demonstrates its value for collaborative efforts within the community through many partnerships ranging from serving as lead agency of the Safe Kids Coalition of Gainesville-Hall County, to partnering with community health organizations, to helping reach at-risk populations in need of healthcare. In FY10, over $4.3 million was provided in community benefit programs/outreach. Community education was provided through free community lectures, various support groups, and the semi-annual health magazine, Communicare. Over 20 presentations were made through the Speaker's Bureau, and NGMC also offered smoking cessation classes, as well as Living Lighter, a weight loss program. In FY10, more than 500 NGMC volunteers contributed more than 61,000 volunteer hours, equivalent to 36 full time employees and a value of over $1.2 million. This is a record in the history of The Medical Center Auxiliary. While these figures are not included in the quantitative portion of the community benefit report, they show the depth of support the community gives NGMC. The Medical Center Foundation Raises Funds to Benefit the Community The Medical Center Foundation is the fundraising arm of Northeast Georgia Medical Center and Health System and raises funds to improve the health of the community. The Foundation's operating expenses are supported by NGMC so that donated funds can be used to support NGMC projects and community health improvement initiatives. Following are items of interest to note: - The 2009 Medical Center Open Golf Tournament, held in FY10, raised over $200,000 to benefit the Outdoor Recreation Complex at the Boys and Girls Clubs of Hall County. - Since 1997, nearly $2 million has been raised for community health improvement projects through The Medical Center Open. Safe Kids Coalition Works to Keep Kids Safe The Gainesville-Hall County Safe Kids Coalition, led by NGMC, is part of the National Safe Kids Campaign, the first and only national organization dedicated solely to the prevention of unintentional childhood injury, which is the nation's number one killer of children ages 14 and under. This program provides affordable safety equipment such as car seats and bike helmets to area children in need. Working with a coalition made up of law enforcement, area schools, community volunteers and others, Safe Kids provides educational materials and programs that teach children and their parents how to avoid accidents and injuries. Safe Kids continued the work of injury prevention for families in the Hall County community in 2010 thanks to the support of The Medical Center Foundation and the Healthy Journey II Campaign. In FY10, members of the Gainesville-Hall County Safe Kids Coalition provided over 400 programs and events that reached an estimated 52,000 children and their family members, teachers and caregivers. Through these programs, over 5,900 safety devices were distributed to families who were in need of them. Senior Partners Provides Health Information Approximately 150 people participated in the Getting Older and Better Workshop in May at First United Methodist Church. This event was sponsored by The Medical Center Auxiliary, provided by Northeast Georgia Medical Center, and featured speakers on heart disease treatment and prevention. Sponsorships and Donations In FY10, NGMC sponsored or made a donation to over 20 community agencies serving health and human service needs, ranging from supporting the Alliance for Literacy Spelling Bee, to the North Georgia AIDS Alliance. Sponsorships/donations totaled over $48,000 in FY10.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Explanation>Employees of NGHS and it's Affiliates Lead the Way: United Way Pacesetter &amp; More NGMC served as a pacesetter company for the United Way Campaign. Donations from NGMC and affiliate employees totaled over $120,000. NGMC Chief Operating Officer and Interim CEO Carol Burrell serves as Chairperson of the Board of Directors of United Way. NGMC employees are very active in the community, volunteering at the Good News Clinics, in their churches on mission trips and for community agencies such as the Humane Society and Habitat for Humanity. When it comes to supporting The Medical Center Foundation's employee giving club, W.A.T.C.H. (We Are Targeting Community Healthcare), over 2,200 employees donated over $360,000 in FY10. NGMC employees donated over 190 units of blood in FY10, benefitting over 500 individuals. Employees also turned out in full force for community events such as the American Heart Walk, March of Dimes' WalkAmerica and American Cancer Society's Relay for Life, averaging participation of 200-300 per event. Training and Education for Healthcare Professionals and Other Students Northeast Georgia Medical Center supports the training and education of nurses and other healthcare professionals. - NGMC is a training site for handicapped high school students who work in the areas of materials management, nutritional services, pharmacy and linens. Twenty-one students and 2 instructors participated in FY10; - 64 students from area high schools participated in the Youth Apprenticeship Program in FY10; - NGMC partners with Lanier Tech to house a Radiology Tech Program and helps fund faculty; also provides 2 PC labs and classroom space for Lanier Tech's LPN program; - 145 job shadows were placed at NGMC during FY10, allowing high school and postsecondary students from area schools to shadow professional healthcare staff.</Explanation>
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