Health Choice Network Inc.

“The network has two classes of membership, class a members, and class b members. Class a members are internal revenue code section 501(c)(3) organizations that provide comprehensive family and primary healthcare services/behavioral healthcare services with a focus on low-income, medically underserved and other vulnerable populations. Class b members are networks or affiliations of organizations of the type that would qualify as class a members. The by-laws indicate that the board of directors shall consist of 9 to 13 directors chosen as follows: two directors appointed by health choice network of florida, inc.; one director appointed by utah health choice network; one director appointed by new mexico health choice network; at least five at large members elected by the class a members; no more than three at large members elected by the class b members; one director appointed by the board of directors who shall be a clinician employed by, or otherwise closely affiliated with a member; and the network's ceo shall be an ex-officio, non-voting member of the board. All the powers of the network shall be exercised by or under the control of the board of directors.”

“The organization's federal form 990 was provided to and made available to each voting member of the organization's governing body prior to filing of the form 990 with the internal service revenue ("irs"). In addition, the finance committee reviewed the form 990 in detail prior to the form 990 being made available to the governing body. The board of directors has delegated to its finance committee the responsibility to oversee, review and approve the federal form 990, including the preparation, review and filing process. As part of the tax return preparation process the organization hired a professional cpa firm with experience and expertise in not-for-profit tax return preparation to prepare the federal form 990. The cpa firm's tax professionals worked closely with the organization's finance personnel and various other individuals of the organization to obtain 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 organization's finance personnel and other individuals for their review. The organization's finance personnel and other individuals 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 organization's finance personnel and various other individuals for final review and approval prior to presentation of the federal form 990 to the members of the finance committee and thereafter to this organization's board of directors.”

“The organization regularly monitors and enforces compliance with its conflict of interest policy. Annually all members of the board of directors, officers and management personnel are required to review the existing conflict of interest policy and complete a questionnaire.”

“The organization's finance committee reviews and approves all compensation arrangements ("committee"). The committee has adopted a written executive compensation philosophy which it follows when it reviews and approves of the compensation and benefits of the organization's senior management, including the president/chief executive officer and chief financial officer. The committee is provided and utilizes a compensation study from a nationally recognized organization. The committee reviews the "total compensation" of the individuals which is intended to include both current and deferred compensation and all employee benefits, both qualified and non-qualified. The committee's review is done on at least an annual basis and ensures that the "total compensation" of senior management of the organization is reasonable. The actions taken by the committee in conjunction with the board of governors enable the organization to receive the rebuttable presumption of reasonableness for purposes of internal revenue code section 4958 with respect to the total compensation of certain members of the senior management team, including the president/chief executive officer and chief financial officer. The three factors which must be satisfied in order to receive the rebuttable presumption of reasonableness are the following: 1. The compensation arrangement is approved in advance by an "authorized body" of the applicable tax-exempt organization which is composed entirely of individuals who do not have a "conflict of interest" with respect to the compensation arrangement; 2. The authorized body obtained and relied upon "appropriate data as to comparability" prior to making its determination; and 3. The authorized body "adequately documented the basis for its determination" concurrently with making that determination. The committee is comprised entirely of members of the board of directors each of whom are independent and are free from any conflicts of interest.”

“Part vii and schedule j reflect certain board members and officers receiving compensation and benefits from this organization. Please note this remuneration was for services rendered as full-time employees of health choice network, inc.; and not for services rendered as a voting member of the board of directors of this organization.”

“Kevin s. Kearns, was previously employed as the chief executive officer, effective as of 2/15/16 he became a senior advisor of health choice network of florida, inc.”

“Certain board of directors, officers and key employees listed on core form, part vii and schedule j of this form 990 may hold similar positions with both this organization and another related entity. The hours shown on this form 990 for board members who recieve no compensation for services rendered in a non-board capacity, represent the estimated hours devoted per week for this organization. To the extent these individuals serve as a member of the board of directors of another related organization, their respective hours per week per organization are approximately the same as reflected in core form, part vii of this form 990. The hours reflected on 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 this organization and another related entity and not total hours worked per week on behalf of only health choice network, inc.”

“An independent cpa firm audited the financial statements of health choice network, inc. For the fiscal years ended september 30, 2017 and september 30, 2016; respectively. The independent cpa firm issued an unmodified opinion with respect to the audited financial statements. The health choice network, inc. Finance committee has assumed responsibility for the oversight of the audit of the financial statements and the selection of an independent auditor.”

“To assist member centers in providing quality fiscal and management information system services. The network's main mission is to provide high quality service, support, and expertise to member organizations and to act as a vehicle for strategic efforts that strengthen our community health partners. By sharing common technology and management information services, member centers can provide better and more accessible care by using the very latest in electronic health records, informatics research and financial and clinical services. The network is dedicated to providing the finest in these services to its member centers so they can improve the quality and accessibility of medical and dental healthcare they provide to their patients.”

“Description:contracted services total fees:3230000”

“Description:payroll processing fees total fees:20456”