Healthfirst Phsp Inc.

“Healthfirst phsp, inc. (phsp) contracts with hf management services, llc (hfms) to provide all of its management and administrative services. Phsp does not maintain its own staff or office space; these are provided by hfms. Hfms charges a percent of premium on a per member per month basis or a flat fee per member per month. The arrangement is approved by resolution of the board of directors and the ny state department of health. All officers, key employees, and highest compensated employees were paid by, and worked for hfms, a management company which provides management services for multiple entities. None of the individuals listed earned any compensation from phsp.”

“Healthfirst phsp, inc. Is a new york state not-for-profit membership corporation. Healthfirst phsp's sole corporate member is healthfirst, inc.”

“Healthfirst phsp, inc. (phsp) is a new york state not-for-profit membership corporation. Healthfirst phsp's sole corporate member is healthfirst, inc. Healthfirst, inc. Has the right to appoint members to the board of directors of phsp.”

“The amendment of the organization's governing documents is subject to the approval of healthfirst, inc. Some of the decisions of the governing body, should they occur, are subject to approval by state regulators: * distribution of the organization's net assets * certain changes to premium rates * expansion to other managed care businesses * specific types of changes to the organization's benefit plans * management fee rate changes [approval is also required from the management company]”

“The 990 is prepared by the hf management services, llc (hfms) corporate finance department staff and then reviewed by the hfms vice president controller. Secondary reviews are also performed by the hfms general counsel, senior vice president of corporate finance and chief financial officer. The draft 990 is then reviewed by an independent accounting firm. The draft 990 is then presented to the board of directors for review. The final 990 is submitted after the board of directors reviews it.”

“A conflict of interest disclosure statement is completed annually by each board member, officer and key employee. Each board member, officer and key employee is given a copy of the disclosure statement to complete on an annual basis. A member who does not complete the statement is not allowed to attend board meetings and may be removed from the board. An officer or key employee who does not complete the statement will be disciplined, up to termination from the position. Any disclosure of a conflict or potential conflict is reviewed by the chief compliance officer. Conflicts are addressed by examining the relationship of the individual to the organization and the nature of the disclosure. A report of any conflicts is prepared for discussion with audit and compliance committee of the board of directors of healthfirst, inc., the not for profit corporate parent, as well as the full board of directors of healthfirst phsp, inc. As appropriate, action is taken, including but not limited to disclosure and recusal from decision making, modifications to business agreements, changes in vendors or replacement of the director, officer or key employee with a non-conflicted individual.”

“Because the reporting organization did not compensate any officer or employee, the reporting organization has responded "no." however, the compensation of the ceo, other officers and key employees is determined by the compensation committee of hf management services, llc, the management company that provides all services to phsp.(a related organization). The committee consists only of independent directors. The process for determining compensation is described in the committees charter. The process includes engagement of an outside human resources consulting firm to conduct a comparability analysis. The analysis includes comparable ranges of executive compensation using the company's industry classification. The committee meets prior to implementation of any change in compensation. Contemporaneous minutes of each meeting are prepared.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the general public by providing copies on request for inspection at its corporate offices.”

“Retained hospital payments: 33,120,641.”

“The selection of the independent auditor is administered by the audit and compliance committee of the board of directors of healthfirst, inc. (a related organization).”