Baystate Health Systems Inc Health & Welfare Benefits Plan

“Two or more of the persons listed in this Form 990, Part VII have a business relationship with each other by virtue of sitting on one or more boards of directors/trustees or by serving in employment relationship one or more entities within the Baystate network of affiliated organizations.”

“Baystate Health Systems, Inc. Health & Welfare Benefits Plan is affiliated with Baystate Administrative Serviecs, Inc. (BAS) which is a 501 (c)(3) organization. Various management and support functions are delegated to BAS.”

“On 12/31/2017, the Baystate Health & Welfare Benefits Trust was dissolved. Form 990, Part VI, Section A, line 8a and 8b: The Trustees of the Baystate Health Systems, Inc Health & Welfare Benefits Plan meet during certain scheduled Baystate Health, Inc. board meetings. The Baystate Health, Inc. Board of Trustees and its committees, including the Audit and Compliance committee contemporaneously document meetings and actions relative to the Trust, including annual acceptance of the audited statements.”

“Prior to the filing of this return appropriate parts of this Form 990 were reviewed by representatives from the Tax, Finance, and Human Resources Departments of Baystate Health, Inc. (the parent organization of the health care system to which the filing organization belongs) and by legal counsel. The entire return was reviewed by a tax expert from an outside accounting firm. Before filing with the IRS, a copy of the complete 990 declaration is provided to all board members.”

“Baystate Health Systems, Inc. Health & Welfare Benefits Plan is an affiliate of Baystate Health, Inc. Baystate Health, Inc. and its affiliated entities have a comprehensive conflict of interest policy applicable to all of the affiliated entities. All directors, trustees, key employees and highest compensated employees are asked to complete an annual "conflict of interest" form. We utilize an electronic database to receive and manage all conflict of interest submissions. This information is reviewed by the BH Chief Compliance Officer, the BH Chief Executive Officer, the Chair of the BH Board of Trustees, and the Chair of the Audit & Compliance Committee of BH. A summary of the conflict of interest disclosures is provided to the Baystate Health Board of Trustees and the Tax Department and reviewed by outside counsel. Potential conflict of interest transactions are reviewed as appropriate under the policy, which provides for recusal from discussion and deliberation by any party with a potential conflict of interest.”

“The Trustees are employees of an affiliate of Baystate Health, Inc., the parent organization of the health care system to which the filing organization belongs. The compensation of the Trustees, who are all Officers of Baystate Health, Inc., is reviewed and determined annually by the compensation committee of Baystate Health, Inc. This committee consists entirely of individuals serving on the Board of Baystate Health, Inc. The individuals responsible for deliberating the compensation arrangement for these individuals would be those individuals who do not have a conflict of interest with respect to the compensation arrangement and would be considered independent for compensation deliberation purposes. The compensation of these individuals is established based on information provided by independent third party consultants for reasonableness and appropriate comparability data. The compensation is then established, reviewed and approved by the duly authorized compensation committee of Baystate Health, Inc. Lines 15a and 15b have been answered No because the individuals are paid by Baystate Administrative Services, Inc. an affiliate and related organization of the filing organization.”

“Baystate Health, Inc., the parent organization of the health care system to which the VEBA belongs, makes its conflict of interest policy and financial statements available to the public at www.baystatehealth.org. The VEBA financial statements are available upon request. Articles of organization and bylaws are generally available at the Commonwealth of Massachusetts website. Form 990, Part XII, Line 2c: Baystate Health Systems, Inc. Health & Benefits Plan is affiliated with Baystate Administrative Services, Inc. (BAS), a 501(c)(3) organization which performs various management and support functions, including the compilation, review and audit oversight of its financial statements. No change was made in the process from the prior year.”

“Net Assets Transferred to Baystate Administrative Services, Inc. -10,134,445.”