Park Nicollet Group Return

“As of january 1, 2013, park nicollet methodist hospital and park nicollet clinic adopted amended and restated bylaws. This occurred in conjunction with park nicollet health services and its subsidiaries becoming part of the healthpartners organization of related health care delivery and financing entities. The changes to the bylaws aligned the language and provisions with the amended and restated bylaws of park nicollet health services, and are not material changes. Notably, for the significant matters that require supermajority approval of the board, the amended bylaws lower the threshold from 3/4s of all directors to 2/3rds of all directors.”

“Park nicollet health services is the sole member of park nicollet methodist hospital, park nicollet clinic, park nicollet institute and park nicollet health care products. Park nicollet clinic is the sole member of pnmc holdings.”

“The board of directors of park nicollet methodist hospital, park nicollet clinic, park nicollet institute, pnmc holdings and park nicollet health care products are those individuals who are contemporaneously members of the board of directors of park nicollet health services.”

“All decisions, including dissolution of the organization, made by the governing body of park nicollet methodist hospital, park nicollet clinic, park nicollet institute, pnmc holdings and park nicollet health care products are subject to the approval of the board of directors of park nicollet health services.”

“Park nicollet group prepares the form 990 within the finance department with assistance from individuals in human resources, marketing, and operations. Upon completion of gathering the necessary information for the return, the form was reviewed by the park nicollet group's accounting firm. Drafts of the form were also reviewed by the assistant controller - accounting operations, vice president of finance, chief financial officer, and the audit and compliance committee. After all reviews were complete; the form 990 was given to each member of the board of directors for approval prior to filing the return.”

“At park nicollet health services all key employees, directors, and officers are required to fill out a conflict of interest disclosure statement each year; however the obligation to report potential conflicts is ongoing. Park nicollet health services board monitors potential conflicts of interest on the part of board members, officers and key employees pursuant to its conflict of interest policy. Under the policy, all board members and officers annually are provided a copy fo the policy and required to complete a questionnaire indentifying any potential conflicts of interest. The general councel reviews the completed questionnaires and provides a report to the governance committee of the board. The report identifies any significant potential conflicts disclosed in the completed questionnaires. A written report is provided to the chair and chief executive officer (ceo). Board agendas and executive decisions are monitored in relation to this policy.`”

“The park nicollet health services' board of directors is responsible for the implementation and oversight of executive compensation and benefit plans. Park nicollet uses an outside consultant to provide a yearly market based index of salary adjustments for executives in similar leadership positions. The board of directors reviews the salary ranges and recommends salary increases for each executive, including the ceo, based upon the board of directors' evaluation of job performance and experience level of the individual within the organization. The average salary increases for all park nicollet executives cannot exceed the average market salary increase reported for executives by the consultant. The compensation committee then reviews and approves compensation adjustments based on the information provided by the outside consultants and the board of directors' recommendations. For certain physicians, the majority of pay disclosed is for his/her work as a physician for park nicollet institute or park nicollet clinic. A small stipend is added for serving on the board of directors. The following is a description of how pay for physicians' patient care work is determined. The park nicollet health services' board of directors is responsible for the implementation and oversight of the physician compensation and benefit plans. The board of directors delegates the day-to-day administration of the physician compensation plan to the ceo. The chief medical officer, who reports directly to the ceo, administers the compensation program. A compensation and benefits committee serves in an advisory capacity to the cmo in order to administer physician compensation within the budget to ensure fairness and alignment with park nicollet health services' goals. The responsibilities of the cmo: recommending compensation policies and plan designs for physicians to the ceo and board of directors; overseeing compensation plan operation and payments to clinical departments; evaluating compensation plan for performance on a periodic basis; serving as final appeal process for issues unresolved by individuals, department chairs and chiefs of services. Annually, information on each physician's pay and productivity is graphed against the survey results for the same year. This information is presented to the compensation committee of the park nicollet health services board of directors for review. Park nicollet health services' physician pay program is designed to ensure market based pay for market based productivity standards. The market is determined by the american medical group association (amga) national physician compensation survey data, which provides market data for both compensation and productivity. When appropriate, the cmo may recommend adjustments to these guidelines with evidence of local market data.”

“: park nicollet group members' governing documents, conflict of interest policy and financial statements are available to the public upon request. Park nicollet health services, as the parent organization of the park nicollet group, mails its consolidated audited financial statements to financial institutions, governmental institutions, board members, media representatives, vendors, and the minnesota hospital association (mha). Park nicollet health services discloses quarterly financial statements to bondholders and mha. The annual audited and quarterly financial statements are also posted at emma.msrb.org. The forms 990 are available upon request or from the state of minnesota or at guidestar.org.”

“Net assets released from restrictions 279,748. Grants run through the foundation -1,090,351.”

“List of subordinate organizations: name, address and eins park nicollet methodist hospital 41-0132080 6500 excelsior blvd, st. Louis park mn 55426 park nicollet institute 41-0961862 3800 park nicollet blvd st. Louis park mn 55416 park nicollet health care products 01-0638901 3800 park nicollet blvd st. Louis park mn 55416 park nicollet clinic 41-0834920 3800 park nicollet blvd st. Louis park mn 55416 pnmc holdings 41-1741792 3800 park nicollet blvd st. Louis park mn 55416”

“Park nicollet health services, along with related organizations, is jointly liable for the tax exempt bonds held by park nicollet health services under a master trust agreement. The members of the jointly liable group, which is collectively referred to as the "obligated group", include park nicollet clinic, park nicollet methodist hospital, pnmc holdings, park nicollet institute, and park nicollet health care products. In accordance with reporting requirements for schedule k, all outstanding tax exempt bonds are reported solely on the schedule k of park nicollet health services.”

“Park nicollet health care products has unrelated business gross income over $1,000.”