Salem Physician Practices PC

“The organization is an affiliate within salem medical center, inc. And affiliates; a tax-exempt integrated healthcare delivery system ("system"). Salem county hospital corp. D/b/a salem medical center is the tax-exempt parent entity of the system. As reflected on core form, part i, lines 3 and 4 and also in part vi, lines 1a and 1b, there is one voting member on the board of trustees. This voting member is not independent due to the fact that he is employed by the organization. Although this federal form 990 shows no independent board of trustees under the 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 salem medical center; which is governed by a board whose majority is comprised of independent voting members.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). Salem medical center is the tax-exempt parent entity of the system. Salem medical center entered into a management services agreement with salem hospital management, llc ("manager"), a new jersey limited liability company, with experience in providing management and consulting services. The manager was engaged to perform the following services for salem medical center and its affiliate: management support, managed care contracting, vendor contracting, human resources contracting, group purchasing, facilities and plant management, business office staff orientation/training/support, continuing education for staff, physician relations, corporate compliance and accreditation compliance, regulatory compliance and auditing, risk management, credentialing, utilization review, corporation performance improvement and quality control, cash management, revenue cycle management, preparation of hospital operating reports and financial statements, maintenance of general ledger, information technology services, and coordination of legal matters. In addition, the manager was contracted to provide the system with full-time services of a chief executive officer and chief financial officer. The following individuals were compensated by the manager during 2020. Additionally, in accordance with the form 990 instructions, included below are the individuals' reportable compensation and other compensation (deferred compensation & non-taxable benefits) received from the management company for services provided for the year ended december 31, 2020. Tammy torres (chief executive officer) -------------------------------------- reportable compensation - $321,884 other compensation (non-taxable benefits) - $1,075 total compensation - $322,959 vincent riccitelli (chief financial officer) -------------------------------------- reportable compensation - $86,736 other compensation (non-taxable benefits) - $4,282 total compensation - $91,018 vincent riccitelli became an employee of the management company effective august 2020. Prior to becoming an employee of the management company, healthcare preferred partners was contracted to provide a chief financial officer to the system. The chief financial officer was responsible for the management of the financial functions of the hospital its related organization. In addition, the chief financial officer was responsible for managing the system's outsourced financial functions, payer relations/contracting, physician contracting, preparation of monthly financial statements and managing the performance of the audit of the financial statements. Vincent riccitelli served as the contracted chief financial officer through july 2020. Fees paid to healthcare preferred partners by salem hospital management, llc for the chief financial officer services provided to the system amounted to $119,000. Total fees paid to healthcare preferred partners by salem medical center for all consulting services provided is further disclosed in schedule l of the salem medical center (ein: 84-4971362) federal form 990.”

“Salem medical center is the sole member of this organization which exists through a physician nominee agreement due to state of new jersey corporate practice of medicine prohibition rules and regulations.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). Salem medical center is the tax-exempt parent entity of the system. As part of the organization's federal form 990 tax return preparation process the system hired a professional certified public accounting ("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 system's finance personnel and other system individuals ("internal working group") 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 internal working group for their review. The internal working group 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 internal working group for final review and approval. Following this review, the form 990 was filed with the irs.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). Salem medical center is the tax-exempt parent entity of the system. The organization and system regularly monitor and enforce compliance with its conflict of interest policy. In accordance with the system's conflict of interest policy all directors, officers and key persons will, at least annually, file a written conflict of interest disclosure statement with the finance committee chair, or its designee, who will provide copies of all completed statements to the finance committee. For directors, the conflict of interest disclosure statement will specifically include, among other disclosable interests, a statement identifying, to the best of the director's knowledge, any entity of which he or she is an officer, director, trustee, member, owner (either as a sole proprietor or a partner), or employee and with which the corporation has a relationship, and any transaction in which the corporation is a participant and in which the director might have a disclosable interest. Every director, officer and key person has an affirmative obligation to update his or her annual written conflict of interest disclosure statement whenever there are new or changed facts or circumstances that create a disclosable interest. All such statements are to be filed with the finance committee chair, or its designee, who will provide copies of all completed statements to the finance committee. If during the course of a board meeting, discussion, or deliberation any actual or potential conflict of interest becomes apparent to a board member, the board member must disclose such actual or potential conflict to the board of directors. If another board member becomes aware of any actual or potential conflict of interest, he or she shall disclose such conflict if the conflicted board member is absent or does not disclose it. In both cases, such disclosure shall be made a matter of record. The finance committee chair, on behalf of the secretary of the corporation, will ensure that all personnel file disclosure statements, or follow-up to make sure they do, in accordance with this policy. If personnel fail to comply with the policy's disclosure requirements, the finance committee chair will report such failure to the finance committee, which shall recommend appropriate corrective action.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). Salem medical center is the tax-exempt parent entity of the system. Salem medical center's board of trustees is responsible for hiring, and establishing the compensation (salary and benefits) of the key executives/ceo by identifying compensation that is "reasonable and not excessive," but that also is attractive enough to retain the best possible talent to lead the organization. The process for determining the appropriate compensation involves conducting a review of what similarly-sized peer organizations, in the same geographic location, offer their senior leaders. The "independent body" (the person receiving the compensation is not be part of the review process) conducts a "comparability review." the independent body takes a look at "comparable" salary and benefits data, such as data available from salary and benefit surveys, to learn what nonprofit employers with similar missions, and of a similar budget size, that are located in the same, or a similar geographic region, pay their senior leaders. The board/independent body conducts the review of who should be involved, (and their "independence" i.e., that they do not receive compensation from the nonprofit) and the process used to conduct the review, as well as the disposition of the full board's decision to approve the executive leaderships compensation. The minutes of a meeting are recorded. Compensation includes salary and benefits, such as insurance, a car, housing allowance, or other fringe benefits and non-taxable benefits, that are included in the calculation of total annual compensation. Comparable data is compensation data from "similarly qualified," "functionally comparable,similarly situated nonprofits (in the same or a nearby geographic area, of similar budget size, and in a similar or the same sub-sector).”

“The organization's filed certificate of incorporation and any amendments can be obtained and reviewed through the state of new jersey department of the treasury.”

“Core form, part vii and schedule j reflects certain board members or officers receiving compensation and benefits from the organization. Please note this remuneration was for services rendered as full-time employees of the organization and not for services rendered as a voting member or officer of the organization's board of trustees.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). Certain board of trustee members and officers included 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, represents the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of trustees of other related organizations in the system, their respective hours per week per organization are approximately the same as reflected on core form, part vii of this form 990. The hours reflected on core form, 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 the system; not solely this organization.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). The organization's audited financial statements are in progress by an independent cpa firm and not issued as of the date of filing this form 990. The system's finance committee has assumed responsibility for the oversight of the audit of the consolidated financial statements, which includes this organization and the selection of an independent auditor.”

“Description:physician fees total fees:4757621”

“Description:billing & collection fees total fees:361680”

“Description:purchased services total fees:112913”