Caregroup Inc

“Officer, director/trustee and key employee business and family relationships as noted in various narrative disclosures which support this form 990 and related schedules, for the period covered by this filing, caregroup served as the sole member of bidmc and served as the sole member of beth israel deaconess hospital needham, inc. (bidn), medical care of boston management corporation, d/b/a beth israel deaconess healthcare a/k/a affiliated physicians group (apg), beth israel deaconess hospital milton, inc. (bid-milton), milton hospital foundation, beth israel deaconess hospital plymouth (bid-plymouth) and jordan health systems, inc. (jhsi). In addition, harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp) is the dedicated physician practice of the medical center and an entity integrally related to helping the medical center accomplish its charitable purposes. For this same period, caregroup also served as the sole member and a support organization of new england baptist hospital (nebh) which in turn served as the sole member of new england baptist medical associates (nebma), and mount auburn hospital(mah) which in turn served as the sole member of mount auburn professional services (maps) and caregroup parmenter home care and hospice (cphch). Each of the entities listed in this paragraph may have, in turn, served as member of additional entities within the caregroup network of affiliates. 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 an employment relationship with one or more entities within the network of affiliated organizations. Additional detail is provided in the explanatory notes to this form 990 schedule j.”

“Form 990 review process as previously noted, effective march 1, 2019, and as part of the creation of the beth israel lahey health (bilh) network, caregroup merged into beth israel deaconess medical center (bidmc) pursuant to a plan of statutory merger. Prior to that date, caregroup served as the sole member and a support organization of bidmc. This form 990 has been reviewed by the tax director of bilh, who, for the period covered by this filing, also served as the caregroup tax director. The return was reviewed and signed by deloitte tax, llp.”

“Explanation of monitoring and enforcement of conflicts as previously noted, effective march 1, 2019, and as part of the creation of the beth israel lahey health (bilh) network, caregroup, merged into bidmc pursuant to a plan of statutory merger. Prior to that date and for the short final period covered by this filing, lhsi served as the sole member, a support organization of, and parent to, bidmc as noted above. Prior to the merger and creation of bilh and as part of its on-going governance responsibilities, caregroup, inc. Had a comprehensive conflict of interest policy. Pursuant to that policy, all officers, directors and key employees were asked to complete an annual conflict disclosure designed to require disclosure of any business relationships maintained by officers, directors or key employees and their family members which may have resulted in a conflict of interest. Pursuant to that policy, the caregroup chief of staff collected the responses and provided them to the caregroup executive committee which reviewed positive responses for ultimate determination of any potential or actual conflict. Any activity that required action under the conflict of interest policy was subject to ongoing review and action through the executive committee working with the executive vice president / chief financial officer. Pursuant to the conflict of interest policy, certain activities which could create conflicts of interest would have been prohibited while other types of relationships may have been permitted, subject to compliance with a plan to require disclosure and recusal, including appropriate documentation in the minutes. A summary of the annual conflict of interest process was provided to the caregroup audit committee. In addition to the conflict of interest process outlined above, the caregroup tax department issued an annual tax questionnaire to all current and former members of the caregroup board of directors as well as current and former officers and key employees. The tax questionnaire was designed to gather the information necessary for caregroup to completely and accurately complete form 990 schedule l, transactions with interested persons and form 990, part vi, question 2, family and business relationships between officers, directors/trustees and key employees.”

“Description of process to determine compensation of the organizations ceo and other officers and key employees for the short period covered by this filing, caregroup had an executive committee, a subcommittee of the caregroup board of directors. All members were independent. The committee established the policies and the compensation structure of the caregroup executive vice president / chief financial officer and chief investment officer. In setting compensation, the committee relied upon written compensation surveys/studies produced by an independent compensation consulting firm that regularly assesses executive compensation and benefits of similar organizations. The committee met to review the compensation structure of the individuals described above and at that time reviewed the compensation survey data prepared by the independent compensation consulting firm. The committee recommended the compensation packages to the full board of directors for approval. All deliberations were contemporaneously documented in minutes. The committee was responsible for assuring that the total compensation provided was fair and reasonable using current and credible market practice information and that it complied with applicable legal and regulatory guidelines.”

“Other organization documents publicly available as previously noted, effective march 1, 2019, pursuant to a plan of statutory merger and as part of the creation of the beth israel lahey health (bilh) network, caregroup merged into beth israel deaconess medical center (medical center). Prior to that date caregroup had served as the sole member of the medical center. The caregroup governing documents, conflict of interest policy and financial statements which cover the reporting period are available to the general public upon request at the following location: beth israel lahey health, inc. Attn: tax department 109 brookline avenue, suite 300 boston, ma 02215”

“For the short final period covered by this filing, the purpose of caregroup, inc. (caregroup) was to oversee the financial well-being of the affiliated entities which made up the caregroup system. For the period covered by this filing, caregroup served as the sole member and as a support organization of beth israel deaconess medical center (bidmc or medical center). For the same period bidmc served as the sole member of beth israel deaconess hospital needham, inc. (bidn), medical care of boston management corporation, d/b/a beth israel deaconess healthcare a/k/a affiliated physicians group (apg), beth israel deaconess hospital milton, inc. (bid-milton), beth israel deaconess hospital plymouth (bid-plymouth) and jordan health systems, inc. (jhsi). In addition, harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp) is the dedicated physician practice of the medical center and an entity integrally related to helping the medical center accomplish its charitable purposes. During this same period caregroup also served as the sole member and a support organization of new england baptist hospital (nebh) which in turn served as the sole member of new england baptist medical associates (nebma), and mount auburn hospital (mah), which in turn served as the sole member of mount auburn professional services (maps) and caregroup parmenter home care and hospice (cphch). Each of the entities listed in this paragraph may, in turn, have served as member of additional entities within the caregroup network of affiliates. Effective march 1, 2019, and as part of the creation of the beth israel lahey health (bilh) network, caregroup, merged into bidmc pursuant to a plan of statutory merger. Prior to that date and for the short final period covered by this filing, lhsi served as the sole member, a support organization of, and parent to, bidmc as noted above.”

“Exempt purpose achievements as a support organization overseeing the financial well-being of its affiliated entities, for the short period covered by this filing, caregroup provided, among other things, management leadership, debt structuring support, investment management for the endowment assets, financing of capital projects through its obligated group debt, and financial support services, including insurance and tax services for the consolidated network of entities. In addition, caregroup participated in the development of health related ventures and partnerships and generally supported the delivery of healthcare services, research and teaching services throughout the network. All of these activities furthered both the exempt purposes of caregroup and the entities which it supported.”

“Statement regarding tax exempt bond issue as described in this form 990, for the period covered by this filing, caregroup, inc., was an entity exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended and a member of the caregroup obligated group. The schedule k as included in this form 990 includes all of the caregroup obligated group outstanding debt as of september 30, 2018 for bonds issued after december 31, 2002, none of which is allocable to and reported on caregroup's balance sheet.”

“Investment of tax-exempt bond proceeds beyond the temporary period exception proceeds in the project fund were unexpectedly held beyond the three-year temporary period, but were yield restricted in compliance with federal tax requirements.”

“Statement re audited financial statements the boston, ma office of kpmg issued an unqualified opinion on the caregroup and affiliates consolidated audited financial statements for fiscal year ended september 30, 2018. These statements were prepared in accordance with generally accepted accounting principles (gaap) and included the accounts of caregroup, beth israel deaconess medical center, inc. (bidmc) and its affiliates, mount auburn hospital and its affiliates, and new england baptist hospital and its affiliate. In addition, as previously noted, effective march 1, 2019, and as part of the creation of the beth israel lahey health (bilh) network, caregroup merged into bidmc pursuant to a plan of statutory merger. Assets and liabilities of caregroup were assumed by bidmc on march 1, 2019 and were therefore included in the audit of beth israel lahey health, inc. And affiliates for the fiscal year ended september 30, 2019.”

“Statement re payroll for the period covered by this filing, beth israel deaconess medical center, inc. Served as the common pay agent for caregroup, inc. In accordance with instructions to the 2018 form 990, caregroup is reporting the number of forms w-2 issued as if they had been issued directly by caregroup.”

“Transfer of assets to affiliate -10,094,450.”

“Financial statements and committee oversight as previously noted, for the period covered by this filing, caregroup, inc. Was a public charity exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended. The financial records of caregroup, inc. Were audited each year as part of the caregroup, inc. And affiliates consolidated audited financial statement process, and for the period covered by this filing the boston, ma office of kpmg issued an unqualified opinion on these financial statements. This process was monitored and reviewed internally by the caregroup, inc. Audit committee. In addition as noted previously in this filing, effective march 1, 2019 and as part of the creation of the beth israel lahey health (bilh) network, caregroup merged into beth israel deaconess medical center (bidmc) pursuant to a plan of statutory merger. The assets and liabilities of caregroup became assets and liabilities and activities of bidmc or bilh on or before that date and were therefore included in the audit of beth israel lahey health, inc. And affiliates for the fiscal year ended september 30, 2019. Those statements were prepared in accordance with gaap and included the accounts of the entities which comprise the larger bilh network. Kpmg has conducted this audit and the process was monitored and reviewed internally by the beth israel lahey health compliance and audit committee, a standing subcommittee of the bilh board of trustees.”

“Description of lobbying activities as previously noted and for the period covered by this filing, caregroup served as the sole member of beth israel deaconess medical center (bidmc), mount auburn hospital (mah) and new england baptist hospital (nebh). Occasionally, these entities engage in some lobbying efforts on behalf of themselves, caregroup, inc. And other affiliated network entities. Additionally, from time to time caregroup, inc. Paid dues to certain membership organizations, a piece of which may have been used by such organizations for lobbying activities on behalf of caregroup and other similarly situated organizations. Total lobbying expenditures on behalf of caregroup, inc. Were minimal and not substantial based on revenues.”

“Business transactions involving interested persons for the period covered by this filing caregroup and each of its affiliates maintained accountable business expense reimbursement plans. From time to time, these entities may have reimbursed its officers, directors/trustees and/or key employees for expenses they incurred and which were properly ordinary and necessary business expenses of the reporting entity. The policies and procedures required by the accountable business plan must be followed in order to receive reimbursement for such expenses and it is possible that one or more individuals received non-taxable reimbursements which totaled $10,000 or more during the fiscal period covered by this filing. All of the above transactions were negotiated at arms-length and in accordance with the caregroup conflict of interest policy.”