Atlantic Health System Inc Group Return

“The Organization's Group 990 tax return consists of the following exempt organizations comprising of a total of 39 voting trustees: 1. AHS Hospital Corp. This organization primarily consists of major health care programs for five hospitals and its supporting administrative functions. It comprises the majority of Atlantic Health Care System's resources in terms of operational, financial and management decision making. Eleven (11) of the seventeen (17) voting trustees are deemed to be independent in conjunction with IRS guidance. 2. Atlantic Ambulance This organization is comprised primarily of ambulance transportation for emergency medical services. Due to the rather small operations, five (5) of its (6) voting trustees represent management employees from an affiliated organization (AHS Hospital Corp). As a result, one (1) of the six (6) trustees are deemed to be independent. 3. Practice Associates Medical Group This organization consists of a physician group providing physician programs. Fifteen (15) out of the sixteen (16) voting trustees are physicians and are generally affiliated with Atlantic Health System, Inc. either through employment or by practice leasing agreements. As a result, three (3) of the sixteen (16) voting trustees are deemed to be independent. 4. Hackettstown Community Hospital - Due to 4/1/16 merger with Atlantic Health System, trustees consist of those from Atlantic Health System at 12/31/16. 5. Hackettstown Regional Medical Center Emergency Medical Services, Inc - Due to 4/1/16 merger with Atlantic Health System, trustees consiste of those from Atlantic Health System at 12/31/16. 6. Medical Center Partners, Inc. - Due to 4/1/16 merger with Atlantic Health System, trustees consist of those from Atlantic Health System at 12/31/16.”

“Effective April 1, 2016, the Hackettstown Division was acquired from Adventist Healthcare, Inc. ("Adventist") with the AHS Hospital Corp being substituted as the sole corporate member of Hackettstown Community Hospital. AHS Hospital Corp paid $47,000,000 to purchase property, plant and equipment, along with minimal amounts of long-term investments, inventories, and assumed liabilities of the Hackettstown Division from Adventist. The change in control of the Hackettstown Division was accounted for by the Hospital as an acquisition under the Merger and Acquisition guidance for Not-for-Profit entities. Refer to Footnote #16 in the December 31, 2016 and 2015 AHS Hospital Corp. consolidated financial statements for the detailed vaulation breakout of the assets acquired, liabilites assumed and the net assets of the Hackettstown Division at April 1, 2016.”

“As per the by-laws, each of the entities has one "member", that being Atlantic Health System, Inc. There are no other members or classes of membership whatsoever as indicated in the by-laws.”

“Atlantic Health System, Inc. is the only "member" which wholly owns each of the entities. As a result, Atlantic Health System, Inc. may elect the members of the governing bodies for each of the entities.”

“Atlantic Health System, Inc. is the only "member" which wholly owns each of the entities. As a result, Atlantic Health System, Inc. approves the decisions of the governing bodies.”

“The 2016 IRS 990 was distributed to Senior Management and the Board of Trustees for their review. Any comments were addressed accordingly.”

“We require disclosure of potential conflicts. This policy governs all personnel at Atlantic, including Board Members. Additionally, the Board Committee members must fill out annual disclosures with specific questions regarding potential conflicts. For potential conflicts involving employees, conflicts involving business relationships require prior disclosure and approval by the Compliance Officer (General Counsel). Conflicts involving Board members require approval from the Compliance Officer and the head of the Audit Committee, who may refer those conflicts to the Compliance Committee of the Board. Restrictions are fact-dependent, but may include recusal from deliberations regarding subject matter affected by the conflict.”

“A review of officer compensation by an independent 3rd party (Mercer)is completed every year. The most recent survey was conducted in 2016. Officers reviewed include President and CEO AHS; SVP Chief Financial & Administrative Officer; SVP, Care Innovation & Technology; SVP, Chief Nursing & Patient Experience Officer; SVP, Chief Human Resource Officer; SVP, Integrated Care Delivery & CEO Hospital Division; SVP, System & Network Planning & Business Development; SVP, Physician Enterprise & President, AMG;SVP Quality & Chief Medical & Academic Officer, AHS; VP Government & Public Affairs; VP AHS & President OMC; VP AHS & President MMC; VP AHS & President CMC; VP AHS & President NMC; VP, President ACO; VP, Clinical Intelligence; VP Legal Affairs & General Counsel; VP, Marketing & Communications; VP, Compliance & Audit; VP Ambulatory Services; VP, Finance; VP, Revenue Cycle; VP, Strategic Development & network Affairs; VP, Chief Information Officer; VP, Insurance Networks. On behalf of Atlantic Health, Mercer conducts an annual total compensation survey based on appropriate comparability data for like positions in like organizations. The results of the survey are presented to the Executive Committee of the board which documents the findings and recommendations in committee minutes. Compensation for key physicians is determined by soliciting salary data from published sources. These salary recommendations are then approved by the Executive Committee of the board.”

“Currently each site of the organization retains copies of the filed IRS 990 for the last three years and IRS Form 1023 with the most senior management's assistant. Public disclosure of these IRS 990's can be made at any time at each of the organization's sites. In addition, the 990 is posted on the website "www.foundationcenter.org and "guidestar.org".”

“The organization does not currently make it's financial statements open to public disclosure but the statement of financial position is available by accessing the Form 990. The governing documents and conflict of interest polices are not currently made available to the public.”

“Government grants used for capital purchases 282,775. Change in funded status of benefit plans -35,603,127. Contributions - Temp Restricted Net Assets 31,331,421. Donations - Perm Restricted Net Assets 810,459. Hackettstown Community Hospital - 1/1/16 - 3/31/16 -129,936. Hackettstown Regional Med Center Emergency Medical Serv - 1/1/16 - 3/31/16 464,146. Medical Center Partners, Inc - 1/1/16 - 3/31/16 169,382.”

“The following entities comprise of this Group IRS 990: AHS Hosptial Corp. EIN #52-1958352 Practice Associtates Medical Group EIN #20-2088165 Atlantic Ambulance Corp. EIN #22-3820288 Hackettstown Community Hospital EIN #22-6106281 Hackettstown Regional Medical Center Emerg Med Serv Inc EIN #27-0820164 Medical Center Partners, Inc. EIN #45-4789273”