Health Access Network

“Health access network is an affiliate within crozer keystone health system ("ckhs"); a tax-exempt integrated healthcare delivery system, ckhs is the tax-exempt parent of the system. This organization is a supporting organization of ckhs and its affiliate hospitals; all related internal revenue code section 501(c)(3) tax-exempt organizations. Although this federal form 990 shows no independent board of directors under the new internal revenue service definitions; this organization acts in a charitable tax-exempt manner for purposes of internal revenue code section 501(c)(3) and is controlled by ckhs; which is governed by a board whose majority is comprised of independent voting members.”

“Effective July 1, 2016, the organization amended its certificate of incorporation legally changing its name to HAN, Inc.”

“Crozer-keystone health system ("ckhs") is the sole member of this organization. Ckhs has the right to elect the members of this organization's board of directors and has certain reserved powers as defined in this organization's bylaws.”

“The organization is an affiliate within crozer-keystone health system and controlled affiliates ("system"); a tax-exempt integrated healthcare delivery system. Crozer-keystone health system is the tax-exempt parent organization of the system. The organization's federal form 990 was provided to the system legacy board of director members for review prior to filing with the internal revenue service ("irs"). As part of the tax return preparation process the organization hired a professional cpa firm with experience and expertise in both healthcare and not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the organization's finance personnel and various other individuals of the organization and the system to obtain the information needed in order to prepare a complete and accurate tax return. The cpa firm prepared a draft federal form 990 and furnished it to the organization's finance personnel and other individuals for their review. The organization's finance personnel and other individuals reviewed the draft federal form 990 and discussed questions and comments with the cpa firm. Revisions were made to the draft federal form 990 where necessary and a final draft was furnished by the cpa firm to the organization's finance personnel and various other individuals for final review and approval. Thereafter, the form 990 was provided to the system legacy board of directors prior to filing with the irs.”

“The organization regularly monitors and enforces compliance with its conflict of interest policy. Annually all members of the board of directors, officers and senior management personnel are required to review the existing conflict of interest policy and complete a questionnaire. The completed questionnaires are returned to the organization's legal department and vp/general counsel for review. Thereafter the legal department and vp/general counsel prepare a summary of the completed questionnaires which contains information disclosed on an individual by individual basis. Thereafter, the vp/general counsel of the organization presents this summary to the organization's board of directors for its review and discussion.”

“The organization is an affiliate within crozer-keystone health system, a tax-exempt integrated healthcare delivery system whose parent organization is crozer-keystone health system ("ckhs"). Ckhs' board of directors maintains a compensation committee ("committee"). The committee is comprised of members of the board of directors each of whom is independent and free from any conflicts of interest. The committee has adopted a written compensation philosophy which it follows when it reviews and approves or concurs with the compensation and benefits of ckhs' senior management, including: the president/chief executive officer, executive vice president/chief operating officer and senior vice president/chief financial officer. The compensation committee bylaws outline the powers and functions of the compensation committee. The committee relies upon appropriate comparable data from an independent consulting firm which specializes in reviewing hospital and healthcare system executive compensation and benefits throughout the united states. This study uses comparable geographical and demographic market data including, but not limited to, similarly sized healthcare systems and hospitals, number of licensed beds, and net patient revenue on both a regional and national basis. The committee documents its basis for its determination through the timely preparation of written minutes of compensation committee meetings during which the executive compensation and benefits are reviewed and subsequently approved. The compensation and benefits of the ckhs president/chief executive officer are reviewed by the committee on an annual basis in conjunction with the individual's job performance. The compensation committee then recommends to ckhs' board of directors appropriate compensation for the ckhs president/chief executive officer. The board of director's then reviews the committee's recommendation and approves the compensation of the ckhs president/chief executive officer based on the committee's recommendation. The ckhs president/chief executive officer establishes, after discussion with and concurrence by the committee, the compensation levels of the executive vice president/chief operating officer; senior vice president/chief financial officer; and certain other individuals deemed to be disqualified persons pursuant to the internal revenue service definition. This is done with comparable market data provided by an independent consultant. The ckhs president/chief executive officer also receives assistance from ckhs' human resources department in conjunction with each individual's job performance during the year. Compensation review and approval is also based upon other objective factors designed to ensure that reasonable and fair market value compensation is paid by ckhs. Other objective factors include market survey data for comparable positions, individual goals and objectives, personnel reviews, and evaluations. The activities and procedures followed by the committee enable ckhs to qualify for the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of all individuals disclosed on this form 990, including executive vice president/coo and senior vice president/cfo.”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the commonwealth of pennsylvania.”

“Part vii and schedule j reflect certain board members and officers including the president/chief executive officer, executive vice president/chief operating officer and senior vice president/chief financial officer receiving compensation and benefits from the organization or a related organization. Please note this remuneration was for services rendered as full-time employees or independent contractors of the organization or a related organization and not for services rendered as a voting member or officer of this organization's board of directors.”

“The organization is an affiliate within crozer-keystone health system and controlled affiliates ("system"). The system includes both for-profit and not for-profit organizations. Certain board of director members, officers and/or directors listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and other affiliates within the system. The hours shown on this form 990, for board members who receive no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of directors of other related organizations in the system, their respective hours per week per organization are approximately one hour. The hours reflected on part vii of this form 990, for board members who receive compensation for services rendered in a non-board capacity, paid officers and key employees, reflect total hours worked per week on behalf of crozer-keystone health system and controlled affiliates; not solely this organization.”

“Mission ======= Health access network is an affiliate of crozer-keystone health system, a tax-exempt integrated healthcare delivery system. Crozer-keystone health system is committed to the improved health status of those we serve. We are focused on providing the highest quality of medical care and acting decisively to prevent disease while partnering with the community to educate and encourage healthy life choices. Background ========== Crozer-keystone health system ("ckhs") is a not for-profit tax-exempt organization with its central office in springfield, pennsylvania. Ckhs is the sole corporate member of various healthcare related organizations, including crozer-chester medical center, the majority of which are tax-exempt entities. The internal revenue service has recognized ckhs as being a tax-exempt organization under internal revenue code ("irc") section 501(c)(3). As the parent organization of a tax-exempt integrated healthcare delivery system in pennsylvania, ckhs and its affiliates strive to continually develop and operate a multi-hospital healthcare system which provides substantial community benefit through the provision of a comprehensive spectrum of medically necessary healthcare services to the residents of pennsylvania counties including delaware, chester, montgomery and philadelphia, pennsylvania, southern new jersey and northern delaware. Ckhs ensures that its system provides medically necessary healthcare services to all individuals regardless of race, color, creed, sex, national origin, religion or ability to pay. No individuals are denied necessary medical care, treatment or service. Ckhs admissions and observations totaled 33,829, ckhs provides treatment and services to approximately 505,268 outpatients, 29,813 same day surgery patients, 126,892 emergency department patients and delivers more than 2,500 babies annually. Ckhs includes approximately 6,000 employees and 218 volunteers. As outlined herein, ckhs provides medically necessary healthcare services to all individuals regardless of race, color, creed, sex, national origin or ability to pay. Ckhs provides medically necessary care to patients who meet certain criteria under its charity care policy without charge or at amounts less than the established rates. Because ckhs does not pursue collection of amounts determined to qualify as charity care, they are not reported as revenue. Additionally, ckhs sponsors certain other programs which provide substantial benefit to the broader community. Such programs include services to needy populations including community service programs and services for school-aged children and the elderly. Ckhs also actively sponsors programs on health education and wellness. Ckhs maintains records to identify and monitor the level of charity care and community service it provides. These records include the amount of charges forgone based on established rates for services and supplies furnished under its charity and community service policies. Charity care includes services to uninsured patients who ckhs has determined qualify for charity care under ckhs policies. Services to uninsured patients who are not eligible for charity care or who ckhs was not able to determine their eligibility are not reported as charity care but reported in the provision for bad debts. Additionally, ckhs sponsors many programs and provides other patient services which directly benefit the surrounding community. Ckhs hospitals and medical centers ================================== Ckhs provides substantial community benefit. Ckhs includes the following hospitals and medical centers: 1. Crozer-chester medical center including taylor hospital, springfield hospital and community hospital; and 2. Delaware county memorial hospital. Pursuant to its charitable purposes, each ckhs hospital provides medically necessary healthcare services to all individuals in a non-discriminatory manner regardless of race, color, creed, sex, national origin or ability to pay.”

“Please refer to the organization's response to schedule n; part ii.”

“Other changes in net assets or fund balances include: - sale of substanially all assets to prospect health access network, inc. An affiliate of prospect medical holdings, inc.; $5,251,316.”

“The organization is an affiliate within crozer-keystone health system and controlled affiliates ("system"). An independent cpa firm audited the consolidated financial statements of the taxpayer and all affiliates for the fiscal years ended june 30, 2016 and june 30, 2015; respectively and issued a consolidated financial statement with consolidating schedules by entity. An unqualified opinion was issued each year by the independent cpa firm. The taxpayer's audit committee assumes responsibility for oversight of the audit of its financial statements and the selection of an independent auditor.”

“The organization is an affiliate in the crozer-keystone health system ("system"); a tax-exempt integrated healthcare delivery system. The system engaged an independent accounting firm to prepare and issue a system wide consolidated a-133 audit. This organization was included in the system wide a-133 audit.”