Health Quest Systems Inc.

“Line 4 - governing documents - by-laws for health quest systems, inc were re-written and approved by the board on 12/19/2013. The by-laws continue to support the tax exempt status of health quest.”

“Line 11a - the 990 was e-mailed to each board member to review and contact information was provided should any questions arise. The chair of the hq executive compensation committee reviewed all sections related to exceutive compensation. Line 12c - all potential conflicts of interest are reviewed by the health quest business ethics committee on behalf of the affiliate. In addition, conflict of interest statements are completed by board members and key employees on an annual basis and reviewed by the health quest corporate compliance department. Line 15 - compensation for the ceo, top management and other key employees is established by the health quest executive compensation committee based on information and recommendations of an independent third party.”

“Line 19 - policies and financial statements for the affiliates are available to the public upon request. The documents are provided either electronically or as paper copies. In addition, certain financial information is available on various websites due to regulatory filings such as the 990 and bond holder agreements.”

“Entity Tax ID# Primary Activity Legal Domicile Exempt Code Status Public Charity Status Directo controlling Entity Vassar Brothers Medical Center 14-1338586 Hospital NY 501c3 Box 3 HQ The Foundation for Vassar Brothers Medical Center 14-1736429 Fundraising NY 501c3 Box 9 HQ Riverside Diversified Services, Inc (Parent) 14-1675545 Education NY 501c3 Box 9 HQ Alamo Ambulance Service, Inc 14-1745417 Transport NY 501c3 Box 9 HQ Hudson Valley Home Care, Inc (Certified) 14-1788412 Home Health NY 501c3 Box 9 HQ Hudson Valley Home Care, Inc (Licensed) 14-1788410 Home Health NY 501c3 Box 9 HQ Northern Duchess Hospital 14-1338467 Hospital NY 501c3 Box 3 HQ Northern Dutchess Residential Health Care Facility 22-3129608 Nursing Home NY 501c3 Box 9 HQ NDH Foundation 14-1776208 Fundraising NY 501c3 Box 9 HQ Putnam Hospital Center 14-6019179 Hospital NY 501c3 Box 3 HQ Putnam Hospital Center Foundation 06-1399319 Fundraising NY 501c3 Box 9 HQ Health Quest Medical Practice, PC 56-2669185 Medical Care NY 501c3 Box 3 HQ Health Quest Urgent Medical Practice, PC 80-0152047 Medical Care NY 501c3 Box 3 HQ Health Serve Information Technologies, LLC 14-1797086 IT Support NY 501c3 Box 3 HQ Health Quest Laboratory Support Services, LLC 45-4370644 Medical Laboratory NY 501c3 Box 3 HQ One Columbia Street, LLC 46-1626016 Real Estate Mgmt NY 501c3 Box 3 HQ Hudson Valley Cardiovasular Practice, PC 46-3756713 Medical Care NY 501c3 Box 3 HQ Health Quest VEBA Health Savings Trust 27-4847462 VEBA NY 501c9 Box HQ”

“Allocation of Support Services Shared Expenses Cash Funding General: The following services are considered shared services for Health Quest affiliates and the cost to provide these services are allocated to each entity which benefits from the service based on a pre defined allocation methodology: 1. Specialty Staffing a. VBMC Surgical b. Radiology c. Oncology d. VBMC Sleep Lab e. PT/OT/ST f. Cardiac Rehab 2. Clinical Management a. Emergency Room b. Pharmacy c. Cardiac d. Oncology 3. Revenue Cycle including health information management, budgets and reimbursement, revenue cycle, system business office, patient access oversight, financial clearance center, managed care and decision support 4. Facilities including courier service, construction, property management, facility operations, food service management and security 5. Business Development including strategic planning, marketing and public relations, answering service and community education 6. Corporate Finance including accounts payable, payroll, general accounting, purchasing, supply chain and mailroom, practice management billing and management engineering 7. Internal Audit and Compliance 8. Practice management operations including physician recruitment, physician management and centralized scheduling 9. Human Resources and learning and development 10. Administrative including Executive office, Hospital Support and risk management 11. Legal Counsel 12. Information Technology and Medical Technology Services (MTS) Description of Services: 1. Specialty staffing a. Provides non union staffing services for various specialties to the hospitals, offsite ancillary locations and the Fishkill Medical Mall 2. Clinical management includes management oversight to system consolidated clinical services 3. Revenue Cycle - a. Health Information Management functions includes coding and transcription of medical records for all 3 hospitals b. Budget functions include preparation of annual budgets, variance reporting and maintenance of the budget module Reimbursement functions include preparation of annual cost reports, analysis of third party rate accounts and third party audits c. Revenue cycle functions include charge master analysis and development of revenue producing charges, compliance with CPT coding and establishment of appropriate charges d. System business office services includes producing claims for third party payers and private pay patients, payment processing, periodic reporting, accounts receivable analysis, charity care application process, denial management, collection and follow up for the hospitals. Patient access and financial clearance center includes oversight of all centralized registration areas at the hospitals and pre-authorization for numerous hospital services to insure compliance with third party regulations e. Managed Care functions include contract negotiations and analysis of contract terms f. Decision Support functions include cost accounting reporting, maintenance of HBI (Horizon Business Insight) reporting and the contract management system 4. Facilities - a. Courier service provides delivery services internally throughout the HQ system and bank deposit drop offs b. Construction and property management functions include contracting services for Health Quest projects and property management of all HQ facilities c. Facility operations include management oversight of the engineering departments for the hospitals d. Food Service management includes management oversight of food and nutrition departments for the hospitals e. Security functions include management oversight of all facilities to ensure the safest environment 5. Business Development - a. Strategic Planning functions include CON submissions, market data analysis and assistance with business plans b. Marketing includes advertising services, coordination of joint Health Quest advertisements and reduction of expenses associated with larger campaigns c. Public relations functions include coordination o”

“Health quest systems, inc did not receive more than $500,000 in federal awards in 2013, and did not qualify for an a-133 audit.”

“Entity Tax ID # Amount of Transfer VASSAR BROTHERS MEDICAL CENTER 14-1338586 $86,143,348 NORTHERN DUTCHESS HOSPITAL 14-1338467 $13,996,355 PUTNAM HOSPITAL CENTER 14-6019179 $29,321,585 PHC FOUNDATION 06-1399319 $90,006 VBMC FOUNDATION 14-1736429 $493,652 RIVERSIDE MANAGEMENT SERVICES, INC 14-1675544 $45 RIVERSIDE DIVERSIFIED SERVICES, INC 14-1675545 $11,336 HUDSON VALLEY NEWBORN PHYSICIANS, PLLC 14-1811781 $704,896 HUDSON VALLEY EMERGENCY MEDICINE, PLLC 14-1810891 $96,799 ALAMO AMBULANCE SERVICES, INC 14-1745417 $492 HUDSON VALLEY HOME CARE, INC 14-1788412 $425,397 HEALTHSERVE, LLC 14-1797086 $6,321 HEALTH QUEST MEDICAL PRACTICE, PC 56-2669185 $9,931,750 HQ URGENT MEDICAL PRACTICE, PC 80-0152047 $1,429,603 NORTHERN DUTCHESS RESID HEALTH CARE FAC22-3129608 $998,461 NDH FOUNDATION 14-1776208 $132,697 ONE COLUMBIA STREET 46-1626016 $302,065 Total Administrative Fee $144,084,808”