Lrghealthcare

“William Bald is a shareholder and president of Melcher & Prescott Insurance, an insurance brokerage firm based out of Laconia, NH. While no business transactions existed in the fiscal year covered by this return, it is possible that other trustees of HGRL, its employees, or the Organization itself may conduct business with Melcher & Prescott Insurance from time to time.”

“Steve Miller, who served as the Organization's Interim CFO and Chief Restructuring Officer during the tax year, was a contract employee through QHR from October 1, 2019, through May 31, 2020; On June 1, 2020, Steve Miller became a temporary employee of the Hospital. In accordance with IRS Instructions, Steve Miller's 2020 calendar year compensation, as paid by HGRL as an employee of the Organization, has been disclosed in detail on Part VII and accompanying Schedule J.”

“HGRL has 850 members who are also considered stakeholders who are eligible to vote.”

“The members, also known as stakeholders, may elect one or more board members of the governing body at the annual meeting.”

“The members, also known as stakeholders, approve bylaws and articles of incorporation changes. The Members shall support the mission of HGRL, provide information to the Board of Trustees to enable it to better fulfill the vision, serve as ambassadors in the community, and perform such other functions and activities as requested by the Chair. Members may participate in the consideration of any matter that properly comes before a meeting of the Members and shall be eligible to hold any position with HGRL to which he or she may be elected, appointed or hired. Members shall elect new Members of HGRL, ratify the election and re-election of Trustees, and vote to dissolve the Corporation.”

“A draft of the Form 990 is prepared with the assistance of an independent public accounting firm. The Wind Down Board, with the assistance of Craig Jalbert, a consultant, will oversee the process for reviewing and eventually filing the Form 990 once its preparation is complete.”

“A copy of HGRL's conflict of interest policy is distributed annually to all officers, trustees, medical staff officers and committee members, and the senior team. All are required to report any conflicts and sign, date, and return the policy, whether or not a conflict exists, to confirm compliance. Conflicts are disclosed in accordance with State of New Hampshire RSA 7 19-A in the local newspaper and submitted to the New Hampshire Attorney General.”

“The CEO's compensation and benefits are reviewed, adjusted, and voted upon by the full board annually. The board of trustees uses comparative data provided by a consultant who surveys compensation for healthcare executives in the New Hampshire and broader New England area. Survey data from the New Hampshire Hospital Association (NHHA) and the American Society for Healthcare Human Resources (ASHHRA) is also used to validate that the salary, benefits, and pay range for the CEO is fair, reasonable, and competitive. The CEO is excused from discussions surrounding CEO compensation during any meeting. The CEO uses data provided from human resource consultants, NHHA and ASHHRA surveys to evaluate salaries and approve market adjustments for employees at the Vice President level and below. Physician salary ranges are established annually using the Medical Group Management Association (MGMA) salary survey data. These reviews are also conducted annually. As of May 2021, HGRL ceased all hospital and healthcare services, including the maintenance of any employees or compensation arrangements. All activity after the May 2021 transaction consisted of wind-down transactions and bankruptcy proceedings.”

“HGRL (f/k/a LRGHealthcare) files audited financial statements annually with the New Hampshire Attorney General's Charitable Trust Unit. Current copies of the bylaws, conflict of interest policy, and Form 990 are on file with the Charitable Trust Unit. Copies of the Organization's governing documents, conflict of interest policy, and financial statements are also available to the public upon request.”

“The 2020 compensation reported for Dr. Ephrem and Dr. Racicot is for their full-time services as physicians on the medical staff and does not reflect remuneration for services as board of trustees members of the Hospital.”

“On October 19, 2020, the Hospitals entered into an asset purchase agreement with Concord Hospital, Inc. to acquire certain assets of Lakes Region General Hospital and Franklin Regional Hospital. Upon execution of the Agreement, the Hospitals filed a voluntary case under Chapter 11 of the United States bankruptcy code. The Hospitals continued to operate their business as a "debtor in possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and the orders of the Bankruptcy Court. On December 24, 2020, the court entered the Order (I) Approving the Sale of Substantially All of The Debtor's Estate Free and Clear of All Interests, (II) Approving the Assumption and Assignment of Certain Executory Contracts and Unexpired Leases, and (III) Granting Related Relief. Accordingly, HGRL ceased all hospital and healthcare services as of May, 2021. All activity after the May 2021 transaction consisted of wind-down transactions and bankruptcy proceedings.”

“Investment in affiliate 10,192,483. Adjustment to pension liability 945,189. Net transfers out to Concord Hospital System -3,262,485.”

“HGRL (f/k/a LRGHealthcare) filed a petition for reorganization under Chapter 11 of the Bankruptcy Code on October 19, 2020. Additionally, on October 19, 2020, HGRL entered into an asset purchase agreement with Concord Hospital, Inc. to acquire certain assets of Lakes Region General Hospital and Franklin Regional Hospital. As a result of these transactions, HGRL implemented a new Wind-Down Board of Trustees, to faciliate HGRL's transition into the Concord Hospital System. The Wind-Down Board, with the assistance of Craig Jalbert, a consultant with the firm Verdolina & Lowey, P.C., will exercise oversight, selection, and review of HGRL's audit process. This audit review and oversight process began during the fiscal year ending September 30, 2020, and was materially the same for the year ending September 30, 2021. However, due to complications surrounding the wind-down procedures, the audit of the Organization's September 30, 2021 financial statements could not be completed by the extended due date for tax return. Accordingly, the 2020 Form 990 was not able to be filed until the audit was completed, which was after the August 15, 2022 extended filing date.”

“This document is signed by Cynthia Baron in her capacity as the Chair of Wind Down Committee and as a Liquidating Trustee of the HGRL Liquidating Trust. The Liquidating Trustee's appointment became effective on December 27, 2021, prior to which she was not employed by or responsible for the Debtor and was in no way involved with the maintenance of the Debtor's books and records. This return and/or form, and the information contained herein, is based entirely upon information contained in the Debtor's books and records, which have been provided to the Liquidating Trustee and her professionals. All efforts have been made to comply with relevant reporting requirements, based upon the information that has been made available.”