Beth Israel Lahey Health Pharmacy Inc.

“As noted in various narrative disclosures which support this form 990 and related schedules, bidmc is the sole member of the bidmc pharmacy. Both entities are massachusetts non-profit corporations exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended. 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.”

“Statement re members or stockholders form 990, part vi section a line 7a statement re election of members of governing body form 990, part vi section a line 7b statement re decision of governing body subject to approval for the period covered by this filing, beth israel deaconess medical center, inc. (bidmc or medical center) served as the sole member of bidmc pharmacy (pharmacy). According to the pharmacy's bylaws in effect for this period, bidmc had the following rights: - to determine the number of members of the corporation's board of directors; - to appoint all members of the board of directors at the member's sole discretion and to be elected at the annual meeting of the member; in addition, any vacancy in the board may be filled by the president, subject to prior consultation with and the approval of the member. The member also has such powers and authority as are conferred by law, or the articles of organization of the corporation (as amended from time to time), or these bylaws.”

“SEE NARRATIVE ABOVE”

“SEE NARRATIVE ABOVE”

“As noted in various disclosures throughout this filing, caregroup served as the sole member of the medical center for the period covered by this filing, october 1, 2017 to september 30, 2018 (fiscal year ended september 30, 2018). Effective march 1, 2019, pursuant to a plan of statutory merger, caregroup merged into the medical center and beth israel lahey health, inc. (bilh) became the sole member of the medical center. This form 990 is reviewed by the chief financial officer of the bilh, the tax director of bilh and deloitte tax, llp. A copy of the complete return is provided to each member of the pharmacy board of directors prior to submission to the internal revenue service.”

“Conflict of interest policy and explanation of monitoring and enforcement of conflicts as previously noted, bidmc is the sole member of the bidmc pharmacy. The pharmacy's operations are integrally related to bidmc. As noted here and in this form 990 schedule j, for the period covered by this filing, the pharmacy's president also served as the bidmc chief executive officer, the pharmacy's treasurer also served as the assistant treasurer of bidmc and the pharmacy's secretary served as bidmc's general counsel. Although the pharmacy had not formally adopted a conflict of interest policy, based on the pharmacy's close and integral connection to bidmc, the pharmacy followed the medical center's conflict of interest policy and the medical center's procedures for monitoring conflicts. For the period covered by this filing, the medical center maintained a written, comprehensive conflict of interest policy that applied to all members of its workforce, including employees, professional staff, trainees, consultants, contractors, agents, and vendors, and to the members of the board of directors. In addition, harvard medical faculty physicians at beth israel deaconess medical center (hmfp) is an integrally related entity to the medical center and employs the majority of physicians providing patient care at the medical center. Hmfp also has a comprehensive conflict of interest policy. Pursuant to these policies, all members of the medical center's workforce, including the workforce of the pharmacy and employees who serve on the pharmacy board, must disclose conflicts of interest at the time of institutional transactions and must recuse himself/herself from the decision-making regarding the transaction between the medical center, the pharmacy and the outside business in which s/he or a family member has a position or a financial interest. Limited participation in the discussion and/or recommendations about a transaction may be allowed, provided that the person with authority of the final decision-making determines that the involvement is appropriate, and the others involved in the discussion are aware of the financial interest of the conflicted party. The medical center monitors compliance with this policy by requiring all members of the workforce participating in the process to complete a written disclosure form at the time of discussions and negotiations with a supplier and by requiring the supplier to identify in writing those participants who have an outside relationship with the supplier. A supplier's failure to make a required disclosure may result in disqualification from being a supplier and can be grounds for termination of the contract. Similarly, any member of the board of directors of the pharmacy who is in a position to vote on or influence a particular transaction or decision of the pharmacy must notify the pharmacy board if s/he or a family member might materially benefit and recuse himself/herself from participation and voting on the decision. In addition, all officers, directors and key employees of the pharmacy, the medical center and hmfp are required to complete an annual conflict disclosure which is designed to require disclosure of any business relationships maintained by officers, directors or key employees and their immediate family members which may result in a conflict of interest. Pursuant to the medical center's conflict of interest policy, many individuals in addition to those reported on the tax returns are required to complete an annual conflict disclosure. These additional categories include officers, senior management, chiefs of service, division chiefs, and other workforce and professional staff categories as identified from time to time by the chief executive officer, the senior vice president for compliance, audit, and risk or the conflicts of interest committee. For these employees, providing a disclosure is a condition of employment and/or medical staff appointment. The office of compliance and business c”

“For the period covered by this filing, the bidmc pharmacy president also served as the chief executive officer of the medical center. The medical center has a compensation committee that is composed of members of its board of directors. All members are independent. For the period covered by this filing, the compensation committee established the policies and the compensation structure of the bidmc chief executive officer, president, chief financial officer, clinical chiefs of service, chief academic officer, chief information officer, general counsel, sr. Vice presidents, vice presidents. The compensation committee was responsible for assuring that the total compensation provided to these individuals was fair and reasonable using current and credible market practice information and that it complied with applicable legal and regulatory guidelines. In setting compensation, the compensation committee relied upon written compensation surveys and studies produced by an independent compensation consulting firm that regularly assesses executive compensation and benefits of similar organizations. The compensation committee met to review the compensation structure of the individuals described above and at that time reviewed the compensation survey prepared by the independent compensation consulting firm. To ensure independence, the chief human resources officer recused herself from discussions and voting related to her own compensation packages and from discussions related to the president and ceo's compensation package. The compensation committee then voted to approve the compensation arrangements of all individuals described above except for the ceo. The compensation package for the ceo voted by the compensation committee was submitted to the full board of directors for approval. All deliberations were contemporaneously documented in minutes. Subsequent to the vote of the committee, the outside consulting firm provided a "reasonableness letter" attesting to the independence of the committee and reasonableness of the executive compensation.”

“Other organization documents publicly available the pharmacy's governing documents, and financial statements are available to the general public upon request at the location below. A copy of the medical center's conflict of interest policy is also available at the same location. Bidmc pharmacy c/o beth israel deaconess medical center office of general counsel 330 brookline avenue boston, ma 02215”

“Pharmacy services the bidmc pharmacy (pharmacy) supported patients of its' sole member beth israel deaconess medical center, inc. ("bidmc or "medical center"). The medical center is a world-class tertiary care academic medical center and teaching hospital of harvard medical school located in boston which values and welcomes every member of its diverse community. The medical center believes that everyone has the right to receive the medical and behavioral health care they need and welcomes all patients regardless of race, religion, country of origin, immigration status, disability or handicap, gender identity, sexual orientation, age, military services or source of payment. Bidmc's goal is to provide extraordinary care, where the patient comes first, supported by world-class education and research. The pharmacy supported its sole member by participating in the federal 340b drug program and providing bidmc patients with access to medication regardless of their ability to pay.”

“The boston, ma office of kpmg issued an unqualified opinion on the consolidated audited financial statements of the medical center and affiliates for fiscal year ended september 30, 2018. These statements were prepared in accordance with generally accepted accounting principles (gaap) and included the accounts of the medical center and the entities which were its subsidiaries during the fiscal period covered by this filing, (bidmc pharmacy, medical care of boston management corporation, d/b/a beth israel deaconess healthcare a/k/a affiliated physicians group (apg), beth israel deaconess hospital - needham, inc. (bid-needham), beth israel deaconess hospital - milton, inc. (bid-milton), beth israel deaconess hospital - plymouth, inc. (bid-plymouth), jordan health systems, inc. And harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp), the dedicated physician practice of the medical center and an entity integrally related to helping the medical center accomplish its charitable purposes, as well as all entities for which these entities serve as member).”

“Contributions of intellectual property bidmc pharmacy did not receive any contributions of intellectual property and as such, was not required to file form 8899.”

“Contributions of cars, boats, airplanes and other vehicles bidmc pharmacy did not receive any contributions of cars, boats, airplanes or other vehicles and as such, was not required to file form 1098-c.”

“Consulting: program service expenses 811,200. Management and general expenses 0. Fundraising expenses 0. Total expenses 811,200. Contracted employees: program service expenses 1,503,600. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,503,600. Purchased service: program service expenses 64,673. Management and general expenses 0. Fundraising expenses 0. Total expenses 64,673.”