Beth Israel Lahey Health Pharmacy Inc.

“For the period covered by this filing, beth israel lahey health, inc. Served as the sole member of beth israel deaconess medical center, inc. (bidmc), mount auburn hospital (mah), new england baptist hospital (nebh), beth israel deaconess hospital milton, inc. (milton), beth israel deaconess hospital needham, inc. (needham), beth israel deaconess hospital plymouth, inc. (plymouth), lahey health shared services, lahey clinic foundation, winchester hospital (winchester), northeast hospital corporation (nhc), northeast behavioral corporation (nbc), and anna jaques hospital. The lahey clinic foundation in turn serves as sole member to lahey clinic inc, and lahey clinic hospital dba lahey hospital and medical center (lhmc). Additional entities listed here may also in turn serve as member to other network affiliates. 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.”

“Bidmc pharmacy, inc. Made changes to its bylaws during the fiscal period ended september 30, 2019 as part of the creation of the beth israel lahey health (bilh), an integrated health care system providing patient care informed by world-class research and education. Beth israel lahey health, inc. Became the sole member of bidmc pharmacy, inc.'s member. Changes to the bylaws affect: - frequency of meetings - minimum & maximum number of trustees - ex-officio trustees - appointment, reappointment and removal of trustees - committees - officers - terms and term limits”

“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.”

“The member has the authority to elect the governing body.”

“The member of bidmc pharmacy, inc. Has the following rights, as designated in bidmc pharmacy, inc.'s bylaws: the member 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.”

“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, 2018 to september 30, 2019 (fiscal year ended september 30, 2019). 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.”

“For the period covered by this filing, beth israel deaconess medical center (bidmc) served as the sole member of the bidmc pharmacy. The bidmc office of compliance and business conduct includes the bidmc pharmacy in its conflict of interest process. A description of the bidmc conflict of interest process is below. 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 must disclose conflicts of interest at the time of institutional transactions and must recuse themselves from the decision-making regarding the transaction between the medical center and the outside business in which they or a family member have 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 medical center board of directors who is in a position to vote on or influence a particular transaction or decision of the medical center must notify the board or the committee if they or a family member might materially benefit and they must recuse themselves from participation and voting on the decision. In addition, all officers, directors and key employees of both 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 president, 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 conduct (ocbc) collects, reviews, and determines appropriate action for the annual conflict of interest disclosures on behalf of the medical center. The disclosure may be referred to management and to the conflict of interest committee for review. The hmfp compliance oversight committee reviews annual conflict of interest disclosures on behalf of hmfp. Because of the integral relationship between the medical center and hmfp, many individuals are covered by both entities' conflict of interest policies and annual disclosure requirements. In cases of dual responsibilities, the res”

“As noted throughout this filing, beth israel deaconess medical center (bidmc) along with its affiliates became a member of the beth israel lahey health network of affiliates with bilh serving as bidmc's sole member effective march 1, 2019. For the period covered by this filing, the bidmc pharmacy president also served as the chief executive officer of the medical center. Prior to march 1, 2019 bidmc maintained a compensation committee that was composed of members of the board of directors. All members were independent. As required by this form 990 for the fiscal year ended september 30, 2019, compensation reported herein is calendar year 2018 compensation. As such, compensation reported in this form 990 for bidmc officers, directors and key employees was set by the bidmc compensation committee and guided by the committee's obligations as outlined below. 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, 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.”

“Bidmc pharmacy, inc.'s governing documents, conflict of interest policy and financial statements are available to the general public upon request at the following location: beth israel lahey health tax department 109 brookline avenue, suite 300 boston, ma 02215”

“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. In addition, all officers, directors an”

“The bidmc pharmacy's (pharmacy) purpose is to support 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 and is a hospital exempt from income tax under section 501(c)(3) of the internal revenue code of 1986, as amended. The pharmacy accomplishes its purpose by providing patients of bidmc with access to medication regardless of their ability to pay. On march 1, 2019, the beth israel deaconess system including beth israel deaconess medical center, beth israel deaconess milton, beth israel deaconess needham and beth israel deaconess plymouth, mount auburn hospital, new england baptist hospital, lahey health system including the lahey clinic and lahey clinic hospital d/b/a lahey hospital and medical center, winchester hospital, northeast hospital corporation d/b/a beverly hospital, addison gilbert hospital and bayridge hospital, anna jaques hospital as well as entities for which these listed organizations serve as sole member and additional affiliates came together to form beth israel lahey health (bilh). Bilh is an integrated health care system committed to expanding access to extraordinary patient care across eastern massachusetts and advancing the science and practice of medicine through groundbreaking research and education. The bilh system is comprised of academic and teaching hospitals, a premier orthopedics hospital, primary care and specialty care providers, ambulatory surgery centers, urgent care centers, community hospitals, homecare services, outpatient behavioral health centers and addiction treatment programs. Bilh's community of clinicians, caregivers and staff includes approximately 4,000 physicians and 35,000 employees.”

“The boston, ma office of kpmg issued an unqualified opinion on the consolidated audited financial statements of the beth israel lahey health, inc. And affiliates for fiscal period ended september 30, 2019. These statements were prepared in accordance with generally accepted accounting principles (gaap) and included the accounts of the beth israel lahey health, inc. (bilh), and the entities for which beth israel lahey health, inc. (bilh) served as sole member during the fiscal period covered by this filing, (beth israel deaconess medical center (bidmc), mount auburn hospital (mah), new england baptist hospital (nebh), beth israel deaconess hospital milton, inc. (milton), beth israel deaconess hospital needham, inc. (needham), beth israel deaconess hospital plymouth, inc. (plymouth), lahey clinic foundation, lahey health shared services, winchester hospital (winchester), northeast hospital corporation (nhc), northeast behavioral health corporation (nbhc) and anna jaques hospital). Each of these affiliates may in turn serve as member of additional entities within the network of affiliates, and whose accounts are included in the bilh audited financial statements. The financial statements also include the accounts of harvard medical faculty physicians at beth israel deaconess medical center, inc. (hmfp), the dedicated physician practice of beth israel deaconess medical center and an entity integrally related to helping bidmc accomplish its charitable purposes, as well as all entities for which these entities serve as member.”

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

“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.”