Jordan Health Systems Inc.

“The following jordan health systems inc. Officers, directors/trustees, and key employees have business or family relationships: -clark hinkley and shawn dahlen -- business relationship -cynthia stigletz and david delaney -- business relationship -shawn dahlen and john carnuccio - business relationship as noted in various narrative disclosures which support this form 990 and related schedules, caregroup, inc. (caregroup) is a massachusetts non-profit corporation exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended. Caregroup's purpose is to oversee the financial well-being of the affiliated entities which make up the caregroup system. Caregroup serves as the sole member and a support organization of beth israel deaconess medical center (bidmc or medical center). Bidmc is the sole member of beth israel deaconess hospital - plymouth, inc. (bid-plymouth) and jordan health systems, inc. (jhsi), beth israel deaconess hospital - needham, inc. (bidn), medical care of boston management corporation, d/b/a beth israel deaconess healthcare a/k/a affiliated physicians group (apg) and beth israel deaconess hospital - milton, inc. (bid-milton). In addition, harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp) is the dedicated physician practice of the medical center and an entity integrally related to helping the medical center and its affiliates accomplish their charitable purposes. Caregroup also serves as the sole member and a support organization of new england baptist hospital (nebh) and mount auburn hospital (mah), which in turn serve as the sole member of new england baptist medical associates (nebma) and mount auburn professional services (maps), respectively. Each of the entities listed in this paragraph may, in turn, serve as member of additional entities within the caregroup network of affiliates. Two or more of the persons listed in this form 990 part vii have a business relationship with each other by virtue of sitting on one or more boards of directors/trustees or by serving in an employment relationship with one or more entities within the caregroup network of affiliated organizations. Additional detail is provided in the explanatory notes to this form 990 schedule j.”

“Beth israel deaconess medical center (bidmc or medical center) is a tertiary care academic medical center. Bidmc, a flagship teaching hospital of harvard medical school, is known for its exemplary patient care, conducting "leading edge" clinical and basic science research and supporting outstanding educational programs. Bidmc is a hospital exempt from income tax under section 501(c)(3) of the internal revenue code (irc) of 1986 as amended, and acting through its board of directors, is the sole member of the jordan health systems, inc. (jhsi). Bidmc also serves as the sole member of beth israel deaconess hospital - plymouth which, as noted throughout this narrative, is an affiliate of jhsi.”

“Statement re election of members of governing body form 990, part vi, section a, line 7b: statement re decision of governing body subject to approval beth israel deaconess medical center (bidmc or medical center) is a tertiary care academic medical center. Bidmc, a flagship teaching hospital of harvard medical school, is known for its exemplary patient care, conducting "leading edge" clinical and basic science research and supporting outstanding educational programs. Bidmc is a hospital exempt from income tax under section 501(c)(3) of the internal revenue code (irc) of 1986 as amended, and acting through its board of directors, is the sole member of beth israel deaconess hospital - plymouth, inc. (bid-plymouth or hospital) and jordan health systems, inc. (jhsi). Pursuant to the amended and restated jhsi bylaws, the bid-plymouth board will also be the jhsi board. The medical center as sole corporate member of the hospital and jhsi (the member) has the right to appoint three of the hospital's maximum of seventeen elected voting directors. The remaining directors are nominated by the board of directors and submitted to the member for approval. A director may be removed from office by the member, either with or without cause. The member shall fill any board vacancies with persons nominated by the board, unless the vacancy is created by the departure of a member-appointed director, in which case the member may elect a person not nominated by the board. Additionally, the medical center as sole member has the following rights: 1.the member shall have the following reserved powers which it may exercise on its own initiative upon a two-thirds (2/3) vote of its directors eligible to vote on its board of directors, with or without the approval of the board of directors of the hospital/jhsi, or upon a majority vote of its directors eligible to vote in the event the board of directors of the hospital/jhsi has recommended any of the listed actions: a.remove a member of the hospital's/jhsi's board of directors; b.upon prior discussion with the board, establish or modify the compensation of, and/or appoint or remove the president and chief executive officer of the hospital upon prior consultation with the hospital's/jhsi's board of directors; c.amend the hospital's/jhsi's bylaws or articles of organization; d.cause the hospital/jhsi to enter into: (i)managed care contracts, other payer agreements, exclusive contracts, agreements-not-to-compete, or similar arrangements (ii)contracts for management services with potentially significant multi-year budgetary impact; or (iii)other multi-year service contracts with potentially significant multi-year budgetary impact; e.merge or otherwise consolidate jhsi with another entity; f.dispose of all or substantially all of the jhsi's property and assets or dispose of any jhsi subsidiary or affiliated corporations; g.create or acquire a subsidiary or affiliated corporation; h.discontinue or institute a clinical department or departments or programs, which could reasonably be anticipated to materially and adversely affect the jhsi's financial status or its ability to continue to conduct its business; i.to the extent legally permissible, take such actions to cause assets of the jhsi to be transferred, other than in the ordinary course of conduct of jhsi business, to the member to advance the charitable purposes of the member or the jhsi; and j.to dissolve the jhsi to the extent permitted by law. 2.in addition, the following actions of the jhsi/hospital's board of directors require the prior approval of the member: a.removal of a member of the board; b.any action listed as a member reserved power in the bylaws; c.approval of the jhsi's strategic, financial and operational plans; d.approval of the jhsi's annual operating and capital budgets; e.the appointment of the independent auditor and approval of the independent financial audits; f.entry into managed care contracts, exclusive contracts and other multi-yea”

“SEE STATEMENT ABOVE.”

“Form 990 review process prior to filing the form 990, related schedules and required disclosures (return), the return is reviewed by jhsi's and bid-plymouth's chief financial officer, the tax director of caregroup, and the return is reviewed and signed by deloitte tax, llp. As noted in this return, caregroup is the sole member of beth israel deaconess medical center which is, in turn, the sole member of bid-plymouth and jhsi. A copy of the complete return is then provided to each member of the jhsi board of directors prior to submission to the internal revenue service.”

“Explanation of monitoring and enforcement of conflicts jordan health systems, inc. (jhsi) has a written, comprehensive conflict of interest policy. Beth israel deaconess medical center (bidmc) is a tertiary care academic medical center exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended, and is the sole member of jhsi and bid-plymouth. The bidmc office of compliance and business conduct administers a conflict of interest questionnaire process annually in conjunction with the bid-plymouth office of compliance and provides a summary of positive responses to bid-plymouth's compliance officer for review and determination of any potential or actual conflict. Any activity that requires action under the conflict of interest policy is subject to ongoing review. Pursuant to the conflict of interest policy, certain activities which could create conflicts of interest are prohibited while other types of relationships are permitted, subject to compliance with a plan to require disclosure and recusal, including appropriate documentation in the minutes. In addition to the conflict of interest process outlined above, the caregroup tax department issues an annual tax questionnaire to all current and former members of the jhsi board of directors as well as current and former jhsi officers and key employees. The tax questionnaire is designed to gather the information necessary for the hospital to completely and accurately process and complete form 990 schedule l, transactions with interested persons and form 990 part vi question 2, family and business relationships between officers, directors/trustees and key employees.”

“Description of process to determine compensation of the organizations ceo and other officers and key employees as noted throughout this filing, bid-plymouth is an entity exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended, and an affiliate of jordan health systems, inc. (jhsi). Bid-plymouth has an executive compensation committee which is composed of members of the jhsi and bid-plymouth board of directors, the chief financial officer and the vice president of human resources.. All board members are independent. The bid-plymouth compensation committee establishes the compensation structure of the jhsi and bid-plymouth chief executive officer, chief nursing officer, chief financial officer, chief medical officer, chief operating officer, chief information officer sr. Vice presidents and vice presidents. The bid-plymouth executive compensation committee is responsible for assuring that the total compensation provided to these individuals is fair and reasonable using current and credible market practice information and that it complies with applicable legal and regulatory guidelines. The executive compensation committee approves recommendations for incentive compensation to these individuals on an annual basis and as such, reviews total compensation provided to these individuals annually. In setting compensation, the executive compensation committee relied upon written compensation survey studies produced by an independent compensation consulting firm that regularly assesses executive compensation and benefits of similar organizations. The executive compensation committee met to review the compensation structure of the individuals described above and at that time reviewed the compensation survey data prepared by an independent consulting firm. To ensure independence, once the data was presented, no bid-plymouth staff was present for these discussions. The executive compensation committee voted to approve the compensation arrangements of all individuals listed above.”

“Other organization documents publicly available the governing documents, conflict of interest policy and financial statements are available to the general public upon request at the following location: jordan health systems, inc. C/o beth israel deaconess hospital-plymouth, inc. 275 sandwich street plymouth, ma 02360”

“Description of organization's mission jordan health systems inc. (jhsi) supports the mission of beth israel deaconess hospital - plymouth by providing management and philanthropic services to the hospital. The mission of the beth israel deaconess hospital-plymouth, inc. (bid-plymouth or hospital) is to improve the health and well-being of its patients and community by providing a full continuum of healthcare services with excellence and compassion as well as access to tertiary care in close collaboration with its sole member, beth israel deaconess medical center (bidmc or medical center), regardless of the patient's ability to pay, race, color, religion, sex, sexual orientation, national origin, ancestry, age, or disability. Serving the greater plymouth region bid-plymouth and its affiliates collaborate with community leaders, public and private agencies and businesses, to provide health promotion, health protection, and preventive services to meet the broad range of our community's health and wellness needs as identified through community feedback and formal community needs assessments. As part of its mission to support community health, the hospital is committed to assessing root causes of health disparities and to assisting in improving health care for the disadvantaged and underserved. Bid-plymouth is a 155-bed acute care hospital serving more than 250,000 residents in plymouth and barnstable counties, including the communities of bourne, carver, duxbury, halifax, kingston, lakeville, pembroke, plympton, plymouth, marshfield, middleboro, sandwich and wareham. The hospital is the region's leading provider of high-quality healthcare, providing comprehensive healthcare ranging from primary and preventive care to specialty services. Throughout bid-plymouth, quality improvement is paramount and encompasses both clinical outcomes and the service components of all interactions with patients and their families. Beth israel deaconess medical center (bidmc or medical center), is a nationally recognized tertiary care academic medical center, is a teaching hospital of harvard medical school and is the sole member of bid-plymouth. Bidmc is exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended and is recognized nationally for the clinical excellence of its faculty and the patient care provided, as well as for the magnitude and breadth of its research and for its commitment to medical education. Many bid-plymouth physicians also hold appointments at harvard or other major medical schools and are tied closely with their colleagues at other academic medical centers.”

“Management services jhsi employs the senior leadership of beth israel deaconess hospital - plymouth and provides their services to manage the hospital operations. Philanthropy services jhsi provides fundraising services to beth deaconess hospital - plymouth, identifies sources of philanthropic giving to support the hospital's mission, and manages fundraising events for the benefit of the hospital.”

“Statement re audited financial statements the boston, ma office of kpmg issued an unqualified opinion on the consolidated audited financial statements of the medical center and affiliates for fiscal year ended september 30, 2016. These statements were prepared in accordance with generally accepted accounting principles (gaap) and included the accounts of the medical center and its subsidiaries, (medical care of boston management corporation, d/b/a beth israel deaconess healthcare a/k/a affiliated physicians group (apg)), beth israel deaconess hospital - needham, inc. (bid-needham), beth israel deaconess hospital - milton, inc. (bid-milton), beth israel deaconess hospital - plymouth, inc. (bid-plymouth), jordan health systems inc. And harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp), the dedicated physician practice of the medical center and an entity integrally related to helping the medical center accomplish its charitable purposes, as well as all entities for which these entities serve as member.”

“Contributions of intellectual property jordan health systems inc. Did not receive any contributions of intellectual property and as such, was not required to file form 8899.”

“Contributions of cars, boats, airplanes and other vehicles jordan health systems inc. Did not receive any contributions of cars, boats, airplanes or other vehicles and as such, was not required to file form 1098-c.”

“Transfer to/from affiliates -466,467. Unrealized change in equity interest 56,980.”

“Financial statements and committee oversight as previously reported in this filing, jordan health systems inc. (jhsi) is an affiliate of beth israel deaconess hospital - plymouth (bidp), and both are public charities exempt from income taxes under section 501(c)(3) of the internal revenue code of 1986, as amended. Also as previously noted, beth israel deaconess medical center, a tertiary care academic medical center, flagship teaching hospital of harvard medical school, an entity exempt from income taxes under 501(c)(3) of the internal revenue code of 1986, as amended, is the sole member of bid-plymouth and jhsi. Jhsi is the sole member of jpa. The financial records of bid-plymouth, jhsi and jpa are audited each year as part of the bidmc consolidated audited financial statement process, and for the period covered by this filing the boston, ma office of kpmg issued an unqualified opinion on these financial statements. This process is monitored and reviewed internally by both the bidmc and bidp compliance, audit and risk committees.”

“Description of transactions involving interested persons various current and former officers, directors/trustees and key employees of bid- plymouth and jhsi may also hold positions with other entities which make charitable contributions to bid-plymouth and/or jhsi. Such contributions have not been included in the disclosures above. Bid-plymouth and jhsi maintain an accountable business expense reimbursement plans. From time to time, bid-plymouth or jhsi may reimburse its officers, directors/trustees and/or key employees for expenses they incurred and which are properly ordinary and necessary business expenses of the reporting entity. The policies and procedures required by the accountable business plan must be followed in order to receive reimbursement for such expenses and it is possible that one or more individuals received non-taxable reimbursements which totaled $10,000 or more during the fiscal period covered by this filing. All of the above transactions were negotiated at arms-length and in accordance with the bid-plymouth, jhsi and/or bidmc conflict of interest policies.”