Lahey Clinic Inc.

“Lahey hospital & medical center ("lhmc") consists of three non-profit corporations, lahey clinic foundation, inc. (ein# 04-2323457), lahey clinic hospital, inc. (ein# 04-2704686), and lahey clinic, inc. (ein# 2704683). All three corporations are tax exempt under internal revenue code section 501(c)(3). Lahey clinic foundation, inc. Is the sole corporate member of lahey clinic hospital, inc. And lahey clinic, inc. Lahey clinic, inc. Is the sole corporate member of concord specialists, llc. The board of trustees (governing body) and corporate officers for lahey clinic foundation, inc., lahey clinic hospital, inc. And lahey clinic, inc. Consists of the exact same members. The manager of concord specialists is lahey health shared services, inc. And the officers and authorized signatories are the president, treasurer and clerk of lahey health system, inc. The sole corporate member of the reporting organization is lahey health system, inc. The reporting organizations member has, with respect to the reporting organization, the right to exercise all powers conferred on members of the non-profit corporations under massachusetts general laws chapter 180, including, without limitation, powers with respect to the following: (a) appointment and removal of members of board of trustees; (b) amendment of the articles of organization; (c) amendent of the by-laws; (d) the sale, lease, exchange or other disposition of all or substqantially all of the corporations assets; and (e) the merger or consolidation with another corporation. The articles of incorporation of the reporting organization were amended july 1, 2014 and the by-laws were amended on july 1, 2014 to reflect the aforementioned changes.”

“Management prepared the irs form 990 along with independent tax consultants who sign the return as a paid preparer. Prior to the filing date, a draft of the irs form 990 was provided to the entire board of trustees via a secured website. In addition, the final form 990 was provided to the entire board of trustees via the same secured website.”

“All officers, trustees, key employees, physicians and management employees at all levels are required to complete an annual conflict of interest disclosure form. The lhs corporate complaice department monitors and reviews each disclosure for compliance with the conflict of interest policy. The corporate compliance department monitors conflicts of interest through disclosure software, training, and individual reviews with physicians, key employees, and managers. Depending on the conflict of interest: a person could be asked to not participate in decisions made on behalf of the lahey health system, inc. And affiliates; a person made be told that they cannot be a principal investigator on a research study; a person may be told that they cannot perform the task that creates the conflict; a person could be asked to remove themselves from a committee.”

“Lahey health system, inc. And affiliates have a written document retention and destruction policy known as the "retention of administrative and clinical documents". The revised "retention of administrative and clinical documents" policy was approved by the medical practice and utilization committee on july 26, 2012.”

“Independent members of the board of trustees comprise the compensation committee. The committee sets the compensation and benefits for the ceo and also reviews and approves recommendations for the compensation and benefits for the disqualified individuals and others. The committee seeks the advice of the external compensation consultants. Comparability data is provided, analyzed, and documentated by the external consultants. The lhs senior vp and chief human resources officer provides the committee with any requested information. The committee met several times this year.”

“The organization negotiates arrangements to include terms and safeguards to ensure that the organization's exempt status is protected. From a legal perspective, in-house legal counsel, with the input of external legal counsel, reviews all proposed joint venture and partnership agreements. From a financial perspective, lhs's finance manmagement team reviews all proposed joint venture and partnership agreements. Both reviews take place before lahey health system, inc. And affiliates enters into any such agreement.”

“The organization's governing documents and audited financial statements are available to the public upon request. The organization's conflict of interest policy and other compliance policies are made available to the public via the organization's website. In addition, the organization presents financial information to the public as an attachment to its massachusetts office of the attorney geneeral form pc.”

“Lahey health system, inc. And its related organizations do not compensate any trustee or officer in their capacity as a trustee and/or officer. All compensation paid is for work performed in the employee's job title, which is listed on form 990, part vii directly following the title of "trusteeor "officer".”

“Lahey health shared services, inc. ("lhss") compensates (processes payment) all independent contractors (vendors) on behalf of the lahey health system, inc. And its family of organizations. Under its tax id number, lhss issues form 1099 to the independent contractors. In addition, it submits the same information to the internal revenue service. The lahey health system inc. Family of organizations reimbuses lhss for all vendor payments made either directly or indirectly on their behalf.”

“Benefit, and pension expenses for trustees, officers, and key employees of lahey clinic, inc. Are paid by lahey clinic foundation, inc. As the parent company of lahey clinic hospital, inc., and lahey clinic, inc., lahey clinic foundation, inc. Allocates all of the aforementioned expenses to its related organizations. The related organizations then reimburse lahey clinic foundation, inc.”

“LAHEY CLINIC, INC., in association with TUFTS UNIVERSITY school of medicine, PROVIDES SUPERIOR HEALTH CARE LEADING TO THE BEST POSSIBLE OUTCOMES FOR EVERY PATIENT. AS ONE OF THE WORLD'S PREMIER HEALTH CARE ORGANIZATIONS, LAHEY CLINIC, INC. AIMS TO EXCEED EACH DAY ITS PATIENT'S HIGH EXPECTATIONS FOR SERVICE AND ADVANCE MEDICINE THROUGH RESEARCH. LAHEY CLINIC, INC. IS COMMITTED TO IMPROVING THE HEALTH AND QUALITY OF LIFE OF COMMUNITY RESIDENTS BY SUPPORTING LOCAL ORGANIZATIONS ALIGNED WITH THIS MISSION.”

“Lahey health system, inc. Is in contact with federal and state legislators regarding health care reform issues that would potentially have an impact on the organization and its related organizations.”

“Pension plan changes 21,752,925 net assets released from restrictions (11,314,262) net assets released from restrictions for pp&e (3,458,141) transfer of donor funds from lahey clinic canadian foundation 1,603,670 change in value of split interest agreements 4,203,932 ------------ total to form 990, part xi, line 9 12,788,124”

“The organization's financial statements did not report a liability for uncertain tax positions under fin 48.”

“During 2017, management became aware of a misstatement that relates to prior years and as a result, certain prior year amounts have been revised. The misstatement relates to certain intercompany activities due to and from related organizations. Management does not believe the misstatements are material, either individually or in the aggregate, to the prior period financial statements.”