Mainhealth Services

“The Bylaws were amended for two purposes: 1) to increase the maximum number of Trustees serving on the Executive Committee from five to six, and 2) to allow Trustees who would otherwise reach the limit of permitted consecutive terms in 2018 to continue to serve as Trustees through the completion of the contemplated unification of MaineHealth members on January 1, 2019.”

“The organization has members who serve on a Board of Corporators.”

“The organization's Board of Corporators has the ability to elect trustees, except for "transitional trustees", at an annual or a special meeting.”

“As stated in the organization's Bylaws, the Board of Corporators shall act on any matters brought to it by the Board of Trustees.”

“The 990 was reviewed in detail by the Executive Committee of the Board of Trustees. The Chief Financial Officer also reviewed the 990 in detail prior to signing the return. The Form 990 was provided to the full Board of Trustees prior to filing the return.”

“Conflict of Interest statments are obtained annually. The organization reviews the responses to these documents and addresses any issues immediately.”

“Compensation Process for Top Official: The process followed for determining compensation of the CEO and other key administrative employees compensated by this or other related organizations is a formal process performed annually by the Executive Committee of the Board of Directors. A related organization uses an outside firm, Sullivan Cotter, to perform an independent benchmark analysis for the CEO of MaineHealth, along with other executives in the MaineHealth system. The firm meets with the Executive Committee to review each executive's benchmark report. The Committee then deliberates on MaineHealth's written salary and incentive plan philosophy before making a final decision. All decisions and meetings are captured in minutes and there are appropriate approvals at all levels. Compensation Process for Officers: See explanation above under Form 990, Part VI, Line 15 - Compensation for Top Official.”

“Documents that are required to be open for public inspection are made available upon request.”

“Amounts included in Part VII, Section B. Independent Contractors may include payments that are made by Mainehealth on behalf if its member organizations. Refer to Part V, Line 1a - Additional Information Response”

“Line 1a - Maine Medical Center (EIN 01-0238552), acting on behalf of MaineHealth (EIN 01-0431680), filed 1,030 Form 1099s for the calendar year 2017 on behalf of the following organizations: MaineHealth, Maine Medical Center, Southern Maine Health Care, Pen Bay Medical Center, Waldo County General Hospital, Franklin Memorial Hospital, LincolnHealth Group, Memorial Hospital, Western Maine Health Care, Maine Behavioral Healthcare, NorDx and MaineHealth Care at Home. Line 2a - Maine Medical Center (EIN 01-0238552) filed Form W-3, reporting 15,710 employees, for the calendar year 2017 on behalf of the following organizations: MaineHealth, Maine Medical Center, MMC Realty, Maine Medical Partners, NorDx, MaineHealth Care at Home and MaineHealth Cardiology, Southern Maine Health Care and Maine Behavioral Healthcare.”

“Equity transfer from affiliates 2,500,000. Contributions 27,371. Investment income 26,296. Income on perm restricted gifts 20,712. Released for operations -205,103.”

“MaineHealth has established an information systems project, known as the Shared electronic Health Record (SeHR), to implement a system-wide integrated electronic health record system and financial system. In 2014 and 2017, funding for a portion of the SeHR project was acquired by MaineHealth through the issuance of tax exempt revenue bonds through the Finance Authority of Maine in the amount of $94,800,000 and $55,500,000, respectively. Section 168 of the Internal Revenue Code requires that projects funded by tax-exempt sources of financing be depreciated using the alternative depreciation system (ADS). The ADS system requires that computer technology systems be depreciated over a period of 60 months. For Generally Accepted Accounting Principles (GAAP), MaineHealth is using between 60 and 144 month useful lives for the SeHR system, as management believes that these periods better reflect the useful life given the amount invested and the complexity of implementation. The fiscal year 2018 book to tax depreciation adjustment of $8,009,187 was recorded as an increase to current year depreciation expense. Had the current year book to tax difference not been recorded, MaineHealth would have reported a net loss for FY 2018 of $2,755,572.”