Penobscot Bay Physicians & Associates

“Pbmc (ein 01-0285286) is the sole member of pbpa. Coastal healthcare alliance (cha) (ein 22-2494475), is the sole member of pbmc. Mainehealth (ein 01-0431680) as the sole member of cha, has the right to approve significant decisions of the governing body of cha and its subsidiaries.”

“The board of trustees is elected by pbmc. It consists of three physicians employed by the organization and four others who are not physicians employed by the organziation or any other cha entity.”

“Decisions of the governing body such as budgets, business strategies, significant financial commitments, amendments to the articles of incorporation and the election of the president/ceo among other decisions, are subject to approval by cha & mainehealth.”

“The form 990 is provided to the full board. A final detailed review of the form 990 is performed by the chief financial officer before signing and prior to filing.”

“At the beginning of board service, members are required to document any conflict of interest that may exist. They are required to report any additional conflicts that may arise. The organization reviews the responses to these documents and addresses any issues immediately. Board member conflict of interest forms are updated and reviewed annually.”

“The process followed for determining compensation of the ceo compensated by this or other related organization 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 pen bay physicians & associates, 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.”

“At the time of hire the compensation department utilizes market data to provide an accurate, competitive and appropriate offer. On an annual basis officers receive a merit increase related to the results of their annual performance appraisal performed by the ceo. At this time it is evaluated if an additional bonus will be provided based upon budget and performance, this is at the discretion of the ceo, cfo and hr director.”

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

“(continued from part iii, line 4a) and (3) by providing a mechanism for the pbmc to recruit physicians in underserved medical specialties when needed. It provides medical services without regard to the patient's ability to pay and accepts reimbursement from medicare, medicaid and third party payors.”