Scan Long Term Care

“The sole member of the organization is SCAN Health Plan Arizona, an Arizona nonprofit corporation.”

“The sole member has the power to appoint the members of the Board of Directors.”

“The Form 990 is prepared by BDO USA, LLP, working in conjunction with SCAN's Finance department. SCAN Health Plan's Director of accounting has direct responsibility for this effort, subject to supervision by the SCAN Health Plan Controller. After an initial draft of the Form 990 is prepared, it is circulated for review and comment by relevant members of the executive team who have responsibility and/or knowledge about the various matters disclosed and/or described in the Form. The General Counsel, in particular, reviews the Form 990 and ensures accuracy of descriptions and that disclosure is complete. The draft Form 990 is reviewed by the Audit and Compliance Committee in addititon to the compensation committee of the Board of Directors of SCAN Group, and is shared with all members of the Board of Directors after it is ready for filing but before it is filed.”

“SCAN Long Term Care regularly and consistently monitors and enforces compliance with its conflict of interest policy through annual circulation of a conflict of interest questionnaire which is required to be answered by all members of the Board of Directors, officers and members of executive management. In addition, there is regular education and enforcement through oversight of such policy and the SCAN Long Term Care Gift and Business Courtesies Policy with respect to each department by members of the senior executive team with responsibility for such department. The Legal Department of SCAN Group reviews all contractual relationships entered into by the organization and the General Counsel of SCAN Group is responsible for monitoring conflicts of interest through the annual circulation and review of the conflict of interest questionnaire. Accordingly, the Legal Department of SCAN Group through the General Counsel is in a position to monitor and enforce compliance with the policy on an ongoing basis.”

“SCAN Long Term Care's governing documents and conflict of interest policy are not made available to the public. SCAN Long Term Care's December 31, 2013 financial statements are not required by Arizona Health Care Cost Containment System (AHCCCS), and are they are not made available to the public.”

“The organization's negative revenue figures are related to required refunds of Medicare premiums <$93,427>, and Medicaid reinsurance recoveries <63,231>. These amounts were included as program service revenue in a prior period.”

“On December 22, 2011, the Company provided written notice to AHCCCS terminating the ALTCS program contract. On January 23, 2012, AHCCCS notified the Company that the termination would be effective May 1, 2012. On November 4, 2013, AHCCCS released SCAN Long Term Cares financial obligations with respect to the program.”

“The organization's negative expenses are related to the following adjustments and reversals: 1)IBNR adjustment of <$827,820> 2)Reversal of a prior year administrative reserve <$61,309> 3)Adjustments related to prior year accruals for audit expenses <$1,998> and <$13.265> consultants”

“The $2,997,186 decrease in fund balance is a return of capital to scan long term care's parent organization, scan health plan arizona.”