Evercare Choice Inc

“In accordance with fasb asc 740, income taxes, the organization applies the "more likely than not" threshold to the recognition and derecognition of tax positions for its financial statements. Management has evaluated the organization's tax positions and has concluded that there were no uncertain tax positions that qualified for either recognition or disclosure in these financial statements.”

“Adjustment to reclass discontinued operations expenses 17,743,956.”

“Adjustment to reclass discontinued operations expenses 17,743,956.”

“At december 31, 2024, a majority of the maounts due to medicaid relate to prior years's adjustments that the organization was notified of during 2024 and is disputing relating to encounter withholds, enrollment withholds, quality pool awards and retroactive capitation adjustments. The state of new york offset the receivable recorded as of december 31, 2023 against these liabilities in 2024 as a partial payment. The organization believes it is owed approximately $2,400,000 from medicaid for the items noted. These amounts were withheld and subsequently offset by nysdoh against an alleged mlr liability. The organization is contesting the offset as these funds were rightfully due to the organization and should not have been applied to reduce any purported liability. The organization is pursuing any and all available options. The organization is contesting both (a) the asserted mlr liability of approximately $6,700,000 and (b) the nysdoh's clawback of medicaid receivables used to offset that liability. These matters are under further internal review by the organization and it has not yet initiated separate litigation at this time; however has made notice to the appropriate government officials and regulatory bodies of the organization's position and intent. The organization believes, based on meetings with nysdoh, that the matters noted were to be waived as part of the sale of the mltc plan. The nysdoh has partially fulfilled $16,000,000 (provider settlements) from the broader $25,000,000 commitment made to the organization. The organization continues to seek full recognition of the waiver and a release of the offsets applied against its receivables. Nysdoh reviewed and approved the organization's threeyear financial forecasts during the asset purchase agreement review process. The three-year financial forecasts, which excluded any future or contingent liabilities, including mlr, were accepted and approved by the nysdoh, which were utilized and accepted by the office of the attorney general. No additional liabilities have been recognized beyond those already disclosed, pending final resolution of the matter.”