Banner -University Medical Group

“The university of arizona health network (uahn) and the university of arizona physicians (uap), components of a vertically and horizontally integrated health network, entered into a master intercompany services agreement on march 18, 2013 whereby uahn provides certain corporate services on a coordinated basis. Specifically, uahn provides administration, information systems support, marketing, legal, accounting, finance, human resources, risk management, occupancy and capital planning, credentialing, patient relations, and purchasing and materials management. All employees are employed by uahn, who determines the personnel necessary to provide services to uap and accordingly leases the appropriate personnel to uap. Uahn compensation is included at part vii, section a, column (e) and represents all compensation earned for services rendered to uahn, including those services leased to uap.”

“University of arizona physicians has two classes of members: (i) corporate members and (ii) physician members. The university of arizona health network is university of arizona physician's sole corporate member.”

“Members elect at-large directors from community directors serving on the board of directors for the university of arizona health network.”

“The university of arizona health network, as the sole corporate member, reserves the power to make or approve decisions of the corporation as granted in the bylaws.”

“University physicians healthcare's form 990 is distributed to the executive officers and the board of directors after filing with the irs.”

“The university of arizona physicians' board of directors has adopted written conflict of interest policies which establish procedures for the identification and disclosure of conflicts of interest. Under these policies, conflicted directors, officers and employees are to refrain from participating in any decision or action by uap involving the conflict. Directors and members of senior management of uap are required annually to review uap's conflict of interest policy and complete and sign a conflict of interest questionnaire.”

“The university of arizona physicians hires a third party consultant to review compensation and benefits. In addition, the university of arizona physicians completes a survey comparing the compensation package to similar organizations. The ceo has a written employment contract that is reviewed and approved by the university of arizona health network's compensation committee and board of directors. The last compensation review was performed in may 2013.”

“Policies are posted on the university of arizona physician's intranet. Governing documents and financial statements are available upon request.”

“The university of arizona health plans-university family care, llc (uahp-ufc llc) and the university of arizona health plans-university care advantage, llc (uahp-uca llc) are single member llcs with the university of arizona physicians (uap) as the sole member. Accordingly, all revenue, expenses, assets and liabilities of the llcs is reported on uap's form 990. Effective september 25, 2013, uahp-ufc llc merged into the university of arizona health plans-family care, inc. And uahp-uca llc merged into the university of arizona health plans-university care advantage, inc. Both of these entities were formed as arizona nonprofit corporations and are tax-exempt under section 501(c)(3). The llcs accounted for a significant share of the university of arizona health plans component of uap. Health plans activity conducted by the llcs for the period july 1, 2013 through september 24, 2013 is included in this form 990. Health plans activity for september 25, 2013 through june 30, 2014 is reported on forms 990 filed by the new corporations.”

“Professional medical services: program service expenses 150,220,375. Management and general expenses 6,732,868. Fundraising expenses 0. Total expenses 156,953,243. Uahn leased employees: program service expenses 112,726,858. Management and general expenses 1,925,517. Fundraising expenses 0. Total expenses 114,652,375.”

“Write-off of capitalized bond insurance costs -33,455. Capital contribution to uahp-university care advantage, inc -4,091,408. Capital contribution to uahp-family care plan, inc -28,045,154.”