Salem Physician Practices PC

“The organization is an affiliate within salem county hospital corp. D/b/a 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 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"). This organization's federal form 990 was provided to the voting member of the organization's governing body, its board of trustees, prior to filing with the internal revenue service ("irs"). The organization's governing body has assumed the responsibility to oversee and coordinate the federal form 990 preparation, review and filing process for all tax-exempt affiliates within 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 then provided to the organization's governing body prior to filing with the irs.”

“Salem physician practices, p.c.'s ("spp") conflict of interest policy requires officers and trustees to annually disclose interests that could give rise to conflicts of interest. In 2020, the process was not followed formally due to covid-related disruptions in the normal course of board activities. In 2020, the board did not complete the annual disclosure forms per the conflict of interest policy, but in compliance with the policy discussed potential conflicts as they arose and excluded trustee(s) who had a conflict of interest from discussion and voting on the matters with which such trustee(s) had a conflict. When a trustee recused himself or herself from a vote due to a conflict of interest, the trustee's recusal was noted in the board minutes.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). The officers reported within core form, part vii, of this federal form 990 also serve as officers/senior executive management for salem medical center ("smc"). Smc's senior executive management (i.e., the ceo and cfo) is provided through a management services agreement with salem hospital management, llc (the "manager"). Smc's board of trustees indirectly approves the compensation of the ceo and cfo by approving the fee paid to the manager, which it did, and which approval is documented in the minutes of the respective smc board of trustees meeting.”

“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.”

“This federal form 990 has been amended to reflect the organization's balance sheet, statement of revenue and statement of functional expenses in accordance with its audited financial statements for the year ended december 31, 2020. These changes affected the following parts of this amended form 990: - core form, part i; lines 8 - 22 - core form, part iii, line 4a - core form, part viii - core form, part ix - core form, part x - core form, part xi in addition, the following has been updated within this amended form 990: - core form, part vi; question 11a (and associated schedule o narrative) - core form, part vi; question 12c (and associated schedule o narrative) - schedule o narrative for core form, part vi; question 15”

“The prior year balance sheet has been restated to conform with the organization's audited financial statements.”

“The organization is an affiliate within salem medical center and its affiliate; a tax-exempt integrated healthcare delivery system ("system"). An independent cpa firm audited the consolidated financial statements of the system for the years ended december 31, 2020, and december 31, 2019; respectively. The audited consolidated financial statements contain consolidating schedules on an entity-by-entity basis. The independent cpa firm issued an unmodified opinion with respect to the audited consolidated financial statements. The organization's audited financial statements have been prepared assuming that salem county hospital corp. (d/b/a salem medical center) and affiliate will continue as a going concern. As discussed in note 1 to the audited financial statements, the medical center has a deficiency of revenue over expenses for the year ended december 31, 2020, a working capital deficiency at december 31, 2020, and management has stated that substantial doubt exists about the medical center's ability to continue as a going concern. Additionally, significant uncertainty exists with respect to the ultimate impact of covid-19 on the medical center's financial condition. Management's evaluation of the events and conditions and management's plans regarding these matters are also described in note 1. The audited financial statements do not include any adjustments that might result from the outcome of this uncertainty. The auditor's opinion is not modified with respect to this matter. Salem medical center's board of trustees 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”