Jeffex Inc.

Form 990, Part V, Line 2A & Form 990, Part IX, Line 24

“JEFFEX, INC. HAS ENTERED INTO A COMMON PAYMASTER AND PAYROLL REPORTING AGENT RELATIONSHIP WITH A RELATED ORGANIZATION, THOMAS JEFFERSON UNIVERSITY HOSPITALS, INC. (TJUH). AS SUCH, TJUH ISSUES ALL REQUIRED FORM W-2 RELATED TO THE EMPLOYEES OF JEFFEX, INC. THEREFORE FORM 990, PART V, LINE 2A IS ZERO. MOREOVER, THE PAYROLL AND RELATED BENEFITS EXPENSE RELATED TO SUCH EMPLOYEES ARE REPORTED AS PURCHASED SERVICES ON FORM 990, PART IX, LINE 24A SINCE THESE EXPENSES ARE PAID BY TJUH TO THE EMPLOYEES AND THE TRANSACTIONS ARE ACCOUNTED FOR THROUGH INTERCOMPANY TRANSACTIONS BETWEEN JEFFEX, INC. AND TJUH. FORM 990, PART VI, LINES 6, 7A & 7B TJUH SYSTEM, INC. IS THE SOLE MEMBER OF JEFFEX, INC. As the sole member of JeffeX, INC., it has the ability to exercise certain rights over the appointment and approval of directors and certain transactions. FORM 990, PART VI, LINE 11B THE FORM 990 IS REVIEWED INTERNALLY BY MANAGEMENT OF THOMAS JEFFERSON UNIVERSITY (TJU), AN AFFILIATE OF JEFFEX, INC. IT IS THEN PROVIDED TO THE BOARD OF JEFFEX, INC. BEFORE FILING. FORM 990, PART VI, LINE 12C ANNUAL CONFLICT OF INTEREST STATEMENTS ARE REQUIRED TO BE COMPLETED BY THE BOARD OF TRUSTEES, SENIOR MANAGEMENT, AND KEY REPRESENTATIVES OF JEFFEX, INC. ALL CONFLICTS ARE REFERRED TO THE CORPORATE COMPLIANCE OFFICER OF TJUH. FORM 990, PART VI, LINES 15A & 15B ALL COMPENSATION PAID TO OFFICERS OF JEFFEX, INC. IS PAID BY A RELATED ENTITY, TJUH. AS PART OF THE PROCESS FOR DETERMINING COMPENSATION OF THE OFFICERS AND KEY EMPLOYEES OF JEFFEX, INC., TJUH USES SEVERAL EXTERNAL MARKET SURVEY DATA PROVIDERS SUCH AS MERCER, SULLIVAN COTTER, GALLAGHER SURVEYS, ETC. THE SALARIES IN THE SURVEYS ARE ANONYMOUS AND CONTAIN AT LEAST FIVE OTHER PARTICIPATING ORGANIZATIONS IN HEALTHCARE. THE TJUH BOARD HIRES AND DETERMINES THE BASE AND INCENTIVE COMPENSATION FOR THE CHAIRPERSON OF JEFFEX, INC. (IN HIS ROLE AS CEO FOR TJUH SYSTEM, INC. AND TJUH). WHILE THE CHAIRPERSON IS NOT AN OFFICER OR EMPLOYEE OF THE TJUH LEGAL ENTITY ITSELF, THE CHAIRPERSON DOES REPORT (PER TJUH'S GOVERNANCE DOCUMENTS) TO THE TJUH CEO. TJUH FORMULATES MARKET DATA SHEETS BY SHARING THE 25TH, 50TH, AND 75TH PERCENTILES. FOR COMPENSATION, TJUH TARGETS THE 50TH PERCENTILE OF THE MARKET. HOWEVER LOWER OR HIGHER PERCENTILES MAY BE USED DEPENDING UPON A CANDIDATE'S DEPTH OF EXPERIENCE. TJUH, INC. ALSO TARGETS ORGANIZATIONS SUCH AS TEACHING HOSPITALS, THOSE FROM Northeastern U.S.A., AND THOSE WITH REVENUE GREATER THAN ONE BILLION DOLLARS AS A GAUGE FOR DETERMINING COMPENSATION RANGES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST.”