Abingdon Physician Partners

“The corporation contracted with Blue Ridge Medical Management Corporation, a for-profit corporation, to perform management duties such as accounting, payroll, budgeting, financial operations, and management responsibilities.”

“The corporation is organized as a Virginia non-stock, nonprofit organization with Johnston Memorial Hospital, a Section 501(c)(3) organization, as the sole member.”

“Johnston Memorial Hospital appoints three of the five board members, the remaining two members being appointed by a physician advisory committee.”

“Certain decisions of the governing body, such as entering into a joint venture, dissolve, merge, or relocate the corporation, and amendment of the Bylaws or Articles of Incorporation are subject to approval by the sole member, Johnston Memorial Hospital.”

“The CEO reviewed the Form 990 with the Board of Directors prior to filing with the IRS. The return was made available to each board member in an electronic format prior to the review.”

“Annually, the Corporate Audit and Compliance Department of Ballad Health forwards the Conflict of Interest Policy and Disclosure Form to all Ballad Health management team members and board members (including APP's). Employees and board members must note any conflicts or attest they have "none", and return the form to the Audit and Compliance Department. Any noted disclosures are forwarded to the appropriate management or board personnel to evaluate and utilize when a transaction involving a conflicted person arises. Additionally, personnel who have a conflict arise between the annual distribution of the policy and forms are required to disclose the conflict and would be disciplined in any instance where they have not disclosed and engaged in a conflicted transaction.”

“Governing documents and the Conflict of Interest Policy are made available upon request to appropriate parties requesting them. Financial statements are made available to those parties who own indebtedness of the company on a quarterly basis.”

“On an annual basis, Ballad Health's Human Resources (H/R) Department evaluates compensation for all executives at a position level of Assistant Vice President and above. The review includes APP/JMH's CEO. H/R's evaluation is based on market data obtained from independent third-party consultants for positions with similar responsibilities at similarly situated organizations. Based on this comparable data, Ballad Health's President and CEO evaluates the data and submits his recommendations to Ballad Health's Board of Directors for their final review and approval. In addition, Ballad Health offers an incentive plan to executives based on targeted achievement metrics set in advance of the pay year. Established metrics include: quality and access measures, evidence-based care scores, and value based purchasing, etc.”

“Similar to APP/JMH's CEO, APP/JMH's CFO receives compensation that complies with Ballad Health's salary policy. His pay is set at a market percentile specific to his position as CFO of APP and JMH (APP's sole member). Two APP physicians serve on APP's board. Their compensation relates to medical services they provide to APP; neither receives compensation as a result of their board service. Their compensation and benefits are consistent with all APP physicians, which are based on surveys from external sources, as well as benchmarked against Medical Group Management Association's Compensation Survey. Both Steve Kilgore and Mark Patterson receive compensation for their positions with related organization, Ballad Health; they do not receive compensation for their services as APP board members.”

“Justin Ivory served as JMH/APP CFO until August 31, 2018. John Domansky began serving as JMH/APP CFO in October 2018.”

“Intercompany Debt Forgiveness = -$747524”