2023-09-25T09:32:59-05:00 2022-12-31 111986323 MARCUM LLP 1899 L STREET NW 850 WASHINGTON DC 20036 990 2022-01-01 131088150 HEALTHCARE DISTRIBUTION ALLIANCE HEAL 7038850268 901 NORTH GLEBE ROAD 1000 ARLINGTON VA 22203 ANN BITTMAN EVP AND COO 7038850268 2023-09-21 1 ANN BITTMAN 999009999 1 FRANK SMITH P00639053 2028225000 2023-09-21 2 AAL1 IAL1 2022 2023-04-26 12:10:37Z CHIP DAVIS 901 NORTH GLEBE ROAD 1000 ARLINGTON VA 22203 32020329 0 X WWW.HDA.ORG X 1944 VA ADVOCATE FOR SOUND PUBLIC POLICY THAT SUPPORTS PATIENT ACCESS TO MEDICINES AND MEDICAL PRODUCTS THROUGH SAFE, EFFICIENT, AND EFFECTIVE DISTRIBUTION.LEAD THE HEALTHCARE SUPPLY CHAIN ON POLICY ISSUES, BUSINESS PRACTICES, AND INDUSTRY GUIDELINES TO INFORM AND SUPPORT MEMBER DEVELOPMENT OF INNOVATIVE SOLUTIONS.CONVENE AND PARTNER WITH PUBLIC AND PRIVATE STAKEHOLDERS TO FACILITATE DISCUSSIONS ON INDUSTRY ISSUES, PROVIDE EDUCATION, AND SUPPORT THE SHARING OF LEADING PRACTICES. 32 32 47 75 0 0 515140 0 23234953 25198603 -96151 -25955 19146 120766 23673088 25293414 0 84880 0 0 10423706 11590877 0 0 0 9594195 11507551 20017901 23183308 3655187 2110106 15589595 18391555 6831428 8344123 8758167 10047432 X SEE SCHEDULE O: 0 0 GOVERNMENT AFFAIRS: THROUGH ITS GOVERNMENT AFFAIRS INITIATIVES, HDA ADDRESSES LEGISLATIVE AND REGULATORY ISSUES AT THE FEDERAL AND STATE LEVELS. IT ADVOCATES FOR THE HEALTHCARE DISTRIBUTION INDUSTRY AS WELL AS FOR THE LARGER INTEREST OF NATIONAL HEALTHCARE. COMMUNICATIONS: SUPPORTS HDA ADVOCACY AND ORGANIZATIONAL PRIORITIES VIA WORK WITH THE MEDIA, PUBLIC RELATIONS, EXECUTIVE COMMUNICATIONS, DIGITAL AND HARD-COPY PUBLICATIONS. IMPROVES THE PROFILE OF THE HEALTHCARE DISTRIBUTION INDUSTRY AND EDUCATES THE PUBLIC ON RELEVANT ISSUES AND TOPICS. INDUSTRY RELATIONS & EDUCATION: THESE ACTIVITIES FOCUS ON INFORMATION SYSTEMS, OPERATIONAL INTEGRATION, AND THE EFFICIENT DISTRIBUTION OF HEALTHCARE AND THE IMPROVEMENT OF BUSINESS PROCESSES. IN ADDITION, THROUGHOUT THE YEAR PROGRAMS ARE CONDUCTED TO EDUCATE MEMBERS AND OTHER INDUSTRY PARTNERS IN CRITICAL INDUSTRY ISSUES, EMERGING TRENDS, LEGISLATION, AND OTHER TOPICS OF INTEREST. THESE PROGRAMS INCLUDE LIVE IN-PERSON SEMINARS AND REMOTELY BROADCAST SEMINARS (WEBINARS). 0 0 1 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 54 0 1 47 1 0 0 0 0 1 1 0 1 0 X 32 32 0 0 0 0 1 1 0 1 1 0 0 0 1 1 1 1 1 1 1 0 X ANN BITTMAN 7038850268 901 NORTH GLEBE ROAD 1000 ARLINGTON VA 22203 ROBERT MAUCH CHAIR 1.00 0.00 X X 0 0 0 CHAD GIELEN VICE CHAIR 0.50 0.00 X X 0 0 0 CLINT SYVINKSI DIRECTOR 0.50 0.00 X 0 0 0 GREG DREW DIRECTOR 1.00 1.00 X 0 0 0 FRED BATTAH DIRECTOR 0.50 0.00 X 0 0 0 DAWN BOYTER DIRECTOR 0.50 0.00 X 0 0 0 JODY HATCHER DIRECTOR 0.50 0.00 X 0 0 0 WALTER SHIKANY DIRECTOR 0.50 0.00 X 0 0 0 LOUIS FERRARO DIRECTOR 0.50 0.00 X 0 0 0 SCOTT FRANKLIN DIRECTOR 0.50 0.00 X 0 0 0 BRAIN HARDY DIRECTOR 0.50 0.00 X 0 0 0 JUAN HERNANDEZ DIRECTOR 0.50 0.00 X 0 0 0 MICHAEL HOLMES DIRECTOR 0.50 0.00 X 0 0 0 KIRK KAMINSKY DIRECTOR 0.50 0.00 X 0 0 0 SAM LAZICH DIRECTOR 0.50 0.00 X 0 0 0 WADE LEWIS DIRECTOR 0.50 0.00 X 0 0 0 NISHIT MEHTA DIRECTOR 0.50 0.00 X 0 0 0 JACOB PASKES DIRECTOR 0.50 0.00 X 0 0 0 KEITH PATEK DIRECTOR 0.50 0.00 X 0 0 0 CLINTON KING DIRECTOR 0.50 0.00 X 0 0 0 GK RICHARDS DIRECTOR 0.50 0.00 X 0 0 0 LENNY RODRIGUEZ DIRECTOR 0.50 0.00 X 0 0 0 TED SCHERR DIRECTOR 0.50 0.00 X 0 0 0 CHRISTOPHER SCHOEN DIRECTOR 0.50 0.00 X 0 0 0 JOEL SILBERSTEIN DIRECTOR 0.50 0.00 X 0 0 0 NICHOLAS SMOCK DIRECTOR 0.50 0.00 X 0 0 0 ERNIE RICHARDSON DIRECTOR 0.50 0.00 X 0 0 0 AL PAONESSA DIRECTOR 0.50 1.00 X 0 0 0 KYLE PARKER DIRECTOR 0.50 0.00 X 0 0 0 STEVE WILHELM DIRECTOR 0.50 0.00 X 0 0 0 DEBBIE WEITZMAN DIRECTOR - AS OF 11/2022 0.50 0.00 X 0 0 0 STACY KEARNY BUCHA DIRECTOR - AS OF 9/2022 0.50 0.00 X 0 0 0 VICTOR CRAWFORD DIRECTOR - TO 9/2022 0.50 0.00 X 0 0 0 KEN PAULINO DIRECTOR - TO 6/2022 0.50 0.00 X 0 0 0 CHIP DAVIS PRESIDENT & CEO 39.50 1.00 X 1828643 37319 357139 ANN W BITTMAN EVP & COO 38.00 2.00 X 534535 28133 85381 PATRICK M KELLY EVP, GOVT AFFAIRS 40.00 0.00 X 608060 0 87104 PERRY L FRI EVP, IR & MBRSHP 28.00 12.00 X 383728 164456 82426 JOHN PARKER SVP, COMMS 40.00 0.80 X 369082 19425 58687 ELIZABETH A GALLENAGH SVP, GENERAL COUNSEL 40.00 0.00 X 453219 0 46064 NICOLETTE LOUISSAINT SVP, POLICY 40.00 0.00 X 377583 0 21662 KRISTEN L FREITAS VP, FED AFFAIRS 40.00 0.00 X 284299 0 53647 MATTHEW J DILORETO VP, STATE AFFAIRS 40.00 0.00 X 291960 0 44645 TED PEZZULLO VP, IT & FACILITIES 40.00 0.00 X 279089 0 59445 5410198 249333 896200 8 0 1 0 RESERVOIR COMMUNICATIONS GROUP LLC 607 14TH STREET NW SUITE 675 WASHINGTON DC 20005 PUBLIC RELATIONS & COMMUNICATIONS 2048140 LOCUST STREET SOLUTIONS LLC 2008 HILLYER PLACE NW WASHINGTON DC 20009 STATE LOBBYING/COMMUNICATIONS 1167421 ARENT FOX SCHIFF LLP 1717 K STREET NW WASHINGTON DC 20006 LEGAL SERVICES 410186 TARPLIN DOWNS & YOUNG LLC 1212 NEW YORK AVENUE NW SUITE 750 WASHINGTON DC 20005 CONSULTING SERVICES 300000 GOVERNMENT COUNSEL LLC 24 DOCKSIDE LANE 500 KEY LARGO FL 33037 CONSULTING SERVICES 222000 5 MEMBERSHIP DUES & ASSESSMENTS 900099 21843309 21843309 MEETINGS & ACTIVITIES 900099 3353164 2418904 934260 PUBLICATIONS 541800 2130 2130 25198603 166879 166879 6534081 6726915 -192834 -192834 -192834 MISCELLANEOUS 900099 120766 120766 120766 25293414 24264343 0 1029071 X 84880 4355711 6186716 328536 245771 474143 767657 39056 1984152 15803 3031609 1129284 332627 243090 662568 347821 1619749 106 236392 65991 GOVT & PROF. 708818 TAXES 194601 DUES & MBRSHIPS 145717 PROMOS & GIFTS 42471 -59961 23183308 1894697 2346608 548300 995075 647936 500510 3510078 1381876 446376 2128202 8698024 9488255 3354262 2932905 15589595 18391555 1038731 1638966 2056009 1513769 3736688 5191388 6831428 8344123 X 8758167 10047432 8758167 10047432 15589595 18391555 2110106 -820841 0 X X 0 1 X 1 0 HEALTHCARE DISTRIBUTION ALLIANCE PAC 901 NORTH GLEBE RD ARLINGTON VA 22203 541559237 32369 0 0 1 21843309 5267776 -750776 4517000 4368662 148338 PART I-A, LINE 1: INDIRECT POLITICAL CAMPAIGN ACTIVITIES ARE MADE THROUGH THE HEALTHCARE DISTRIBUTION ALLIANCE POLITICAL ACTION COMMITTEE (HDA PAC) WHICH WAS ORGANIZED AS A VOLUNTARY, NON-PROFIT, UNINCORPORATED ASSOCIATION TO FURTHER THE INTERESTS OF HDA AND THE PHARMACEUTICAL DISTRIBUTION INDUSTRY AND TO PROMOTE GOOD CITIZENSHIP THROUGH PERSONAL AND FINANCIAL PARTICIPATION IN THE ELECTIVE PROCESS. 480773 480773 0 1332724 901103 431621 1696581 1696581 2128202 DEF COMP ASSETS 2736888 DUE FROM RELATED 154249 ROU LEASE ASSET 41768 2932905 DEF COMP LIABILITIES 2729469 ROU LEASE LIABILITY 41819 DEF RENTAL INCENTIVE 2420100 5191388 X 24472573 -820841 -820841 25293414 0 25293414 23183308 0 23183308 0 23183308 PART X, LINE 2: AS OF DECEMBER 31, 2022, THERE WERE TAX YEARS OPEN THAT COULD BE SUBJECTED TO REVIEW BY FEDERAL AND STATE TAXING AUTHORITIES. HOWEVER, THERE ARE CURRENTLY NO EXAMINATIONS PENDING OR IN PROGRESS. IT IS THE ORGANIZATION'S POLICY TO RECOGNIZE INTEREST AND/OR PENALTIES RELATED TO UNCERTAINTY IN INCOME TAXES, IF ANY, IN INCOME TAX OR INTEREST EXPENSE. AS OF DECEMBER 31, 2022 AND 2021, THE ORGANIZATION HAD NO ACCRUALS FOR INTEREST AND/OR PENALTIES. 0 HDA RESEARCH FOUNDATION 901 NORTH GLEBE ROAD ARLINGTON VA 22203 521225130 501(C)(3) 70000 0 GENERAL SUPPORT 1 0 X 1 1 X X X X X 0 1 0 CHIP DAVIS PRESIDENT & CEO 1360013 27755 463565 9461 5065 103 287434 5866 62562 1277 2178639 44462 0 0 PATRICK M KELLY EVP, GOVT AFFAIRS 533538 0 65000 0 9522 0 38800 0 48304 0 695164 0 0 0 ANN W BITTMAN EVP & COO 439419 23127 86070 4530 9046 476 36860 1940 44252 2329 615647 32402 0 0 PERRY L FRI EVP, IR & MBRSHP 336183 144079 40880 17520 6665 2857 27160 11640 30538 13088 441426 189184 0 0 ELIZABETH A GALLENAGH SVP, GENERAL COUNSEL 403177 0 48800 0 1242 0 18300 0 27764 0 499283 0 0 0 JOHN PARKER SVP, COMMS 326501 17184 40375 2125 2206 116 17385 915 38368 2019 424835 22359 0 0 NICOLETTE LOUISSAINT SVP, POLICY 331912 0 45225 0 446 0 12579 0 9083 0 399245 0 0 0 TED PEZZULLO VP, IT & FACILITIES 239627 0 36000 0 3462 0 16789 0 42656 0 338534 0 0 0 KRISTEN L FREITAS VP, FED AFFAIRS 252289 0 31200 0 810 0 17666 0 35981 0 337946 0 0 0 MATTHEW J DILORETO VP, STATE AFFAIRS 266720 0 24700 0 540 0 17966 0 26679 0 336605 0 0 0 PART I, LINE 1A CLUB MEMBERSHIP (INCLUDED IN TAXABLE COMPENSATION): CHIP DAVIS, $2,000 CLUB MEMBERSHIP (NOT INCLUDED IN TAXABLE COMPENSATION): CHIP DAVIS, $8,000 PART I, LINE 4B CHIP DAVIS HAD 2022 CONTRIBUTIONS TO A 457(F) PLAN OF $254,500. FORM 990, PART III, LINE 1 PROTECT PATIENT SAFETY AND ACCESS TO MEDICINES THROUGH THE SAFE AND EFFICIENT DISTRIBUTION OF HEALTHCARE PRODUCTS AND SERVICES. CREATE AND EXCHANGE INDUSTRY KNOWLEDGE AND BEST PRACTICES TO ENHANCE THE VALUE OF THE HEALTHCARE SUPPLY CHAIN. ADVOCATE FOR STANDARDS, PUBLIC POLICIES, AND BUSINESS PROCESSES THAT PRODUCE SAFE, INNOVATIVE, AND COST-EFFECTIVE HEALTHCARE SOLUTIONS. FORM 990, PART VI, SECTION A, LINE 6 THE ALLIANCE WILL HAVE FOUR CLASSES OF MEMBERSHIP: ACTIVE, INTERNATIONAL, ASSOCIATE, AND ALLIED. (A) ACTIVE MEMBERS: THE ACTIVE MEMBERSHIP OF THE ALLIANCE CONSISTS OF FULL-SERVICE HEALTHCARE DISTRIBUTORS. TO BE ELIGIBLE FOR ACTIVE MEMBERSHIP, AN INDIVIDUAL OR BUSINESS ENTITY SHALL MEET ALL OF THE FOLLOWING CRITERIA: 1. IT MUST (I) SELL PREDOMINANTLY TO INDIVIDUALS AND BUSINESS ENTITIES THAT ARE PHARMACIES OR HEALTHCARE PROVIDERS NOT UNDER COMMON DIRECT OR INDIRECT OWNERSHIP WITH THE DISTRIBUTOR; AND (II) MAINTAIN AND OWN ADEQUATE LOCAL INVENTORIES CONSISTING PRIMARILY OF DRUG AND HEALTH-RELATED ITEMS PREDOMINANTLY PURCHASED DIRECTLY FROM MANUFACTURERS. 2. IT MUST OFFER CREDIT TO CUSTOMERS WHOSE FINANCIAL CONDITIONS WARRANT THE EXTENSION OF CREDIT. 3. IT MUST OFFER ON-GOING REGULAR SALES, CUSTOMER SERVICE, AND OTHER VALUE-ADDED SERVICES CUSTOMARILY OFFERED BY FULL-SERVICE HEALTHCARE DISTRIBUTORS. 4. IT MUST PROVIDE REASONABLE AND RELIABLE DELIVERY SERVICE. 5. ITS PRIMARY BUSINESS MUST BE LOCATED IN THE UNITED STATES. 6. IT MUST COMPLY WITH FEDERAL, STATE, AND LOCAL LAWS AND REGULATIONS OR, AS APPLICABLE, THE LAWS AND REGULATIONS OF THE UNITED STATES, AND MUST DEMONSTRATE THAT IT HAS RIGOROUS COMPLIANCE PROGRAMS IN PLACE, INCLUDING BEST PRACTICES TO ENSURE THE SAFETY AND SECURITY OF DRUG PRODUCTS. THIS INCLUDES THE REQUIREMENT THAT A DISTRIBUTOR LOCATED IN THE UNITED STATES OR ITS TERRITORIES HOLDS A VALID LICENSE UNDER THE PRESCRIPTION DRUG MARKETING ACT AND, IF APPROPRIATE, REGISTRATION WITH THE DRUG ENFORCEMENT ADMINISTRATION UNDER THE CONTROLLED SUBSTANCES ACT. 7. IT MUST PROMOTE THE OBJECTIVES OF THE ASSOCIATION, AND BE COMMITTED TO PARTICIPATE IN THE ASSOCIATION'S PROGRAMS AND ACTIVITIES. 8. IT MUST HAVE AN ESTABLISHED BUSINESS AS A FULL-SERVICE HEALTHCARE DISTRIBUTOR. (B) INTERNATIONAL MEMBERS: ANY INDIVIDUAL OR BUSINESS ENTITY ENGAGED IN THE DISTRIBUTION OF HEALTHCARE PRODUCTS IN A GEOGRAPHICAL TERRITORY OTHER THAN THAT DESCRIBED IN SECTION 1(A)(5) BUT OTHERWISE ELIGIBLE FOR ACTIVE MEMBERSHIP UNDER SECTION 1(A) MAY APPLY FOR INTERNATIONAL MEMBERSHIP. INTERNATIONAL MEMBERS SHALL ENJOY SUCH PRIVILEGES AND ENTITLEMENTS OF MEMBERSHIP AS THE BOARD OF DIRECTORS DEEMS APPROPRIATE FROM TIME TO TIME, BUT SHALL NOT BE ENTITLED TO VOTE UNDER ARTICLE IV, SECTION 5. (C) ASSOCIATE MEMBERS: ANY INDIVIDUAL OR BUSINESS ENTITY ENGAGED IN DEVELOPING, MANUFACTURING, OR LABELING OF HEALTHCARE, BEAUTY CARE, AND/OR CONSUMER PRODUCTS MAY APPLY FOR ASSOCIATE MEMBERSHIP. AN ASSOCIATE MEMBER SHALL COMPLY WITH FEDERAL, STATE, AND OTHER LAWS AND LOCAL LICENSING REGULATIONS, OR AS APPLICABLE, THE LAWS AND REGULATIONS OF THE COUNTRY IN WHICH THE MEMBER IS LOCATED. IN THE EVENT THAT A SUBSIDIARY, DIVISION, OR BRANCH OF AN ASSOCIATE MEMBER WISHES TO JOIN THE ASSOCIATION, A SEPARATE APPLICATION FOR MEMBERSHIP SHALL BE SUBMITTED FOR EACH SUCH SUBSIDIARY, DIVISION, OR BRANCH. A SEPARATE MEMBERSHIP SHALL BE MAINTAINED FOR EACH SUBSIDIARY, DIVISION, OR BRANCH THAT SEPARATELY MARKETS TO, SEPARATELY SHIPS TO, OR SEPARATELY INVOICES ACTIVE MEMBERS AND OTHER DISTRIBUTORS. AN ASSOCIATE MEMBER'S CORPORATE HEADQUARTERS MAY MAINTAIN AN ADDITIONAL MEMBERSHIP, SEPARATE FROM ITS OPERATING SUBSIDIARIES, DIVISIONS, OR BRANCHES, AT THE MINIMUM DUES LEVEL FOR THE ASSOCIATE MEMBER CATEGORY. ASSOCIATE MEMBERS SHALL ENJOY SUCH PRIVILEGES AND ENTITLEMENTS OF MEMBERSHIP AS THE BOARD OF DIRECTORS DEEMS APPROPRIATE FROM TIME TO TIME, BUT SHALL NOT BE ENTITLED TO VOTE UNDER ARTICLE IV, SECTION 5. (D) ALLIED MEMBERS: THERE ARE TWO CATEGORIES OF ALLIED MEMBERSHIP: - SERVICE PROVIDER ALLIED MEMBERS: ANY INDIVIDUAL OR BUSINESS ENTITY, OTHER THAN DISTRIBUTORS NOT ELIGIBLE FOR ACTIVE MEMBERSHIP IN THE ASSOCIATION UNDER SECTION 1(A), ENGAGED IN PROVIDING SERVICES TO DISTRIBUTORS AND/OR MANUFACTURERS RELATED TO THE BUSINESS OF HEALTHCARE, BEAUTY CARE, OR CONSUMER PRODUCTS THAT IS OTHERWISE INELIGIBLE FOR ACTIVE, INTERNATIONAL, OR ASSOCIATE MEMBERSHIP MAY APPLY FOR MEMBERSHIP AS A SERVICE PROVIDER ALLIED MEMBER. -PHARMACEUTICAL CARGO SECURITY ALLIED MEMBERS; ANY INDIVIDUAL, BUSINESS ENTITY, OR GOVERNMENTAL AGENCY ENGAGED IN ESTABLISHING, PROTECTING, AND MAINTAINING THE SECURITY OF PHARMACEUTICAL CARGO WITHIN THE PHARMACEUTICAL DISTRIBUTION SUPPLY CHAIN MAY APPLY FOR MEMBERSHIP AS A PHARMACEUTICAL CARGO SECURITY ALLIED MEMBER. SUCH MEMBERS MAY INCLUDE, BUT ARE NOT LIMITED TO, PHARMACEUTICAL MANUFACTURERS, DISTRIBUTORS, SHIPPERS AND CARRIERS, THIRD PARTY LOGISTICS PROVIDERS, SUPPLY CHAIN PROVIDERS, TECHNOLOGY VENDORS, PHARMACIES AND OTHER DISPENSERS, REGULATORS, LAW ENFORCEMENT AGENCIES, SECURITY PROFESSIONALS, AND CONSULTANTS. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF DIRECTORS SHALL BE COMPRISED OF A CORPORATE OFFICER OF EACH ACTIVE MEMBER THAT CHOOSES TO BE REPRESENTED ON THE BOARD OF DIRECTORS. EACH ACTIVE MEMBER CHOOSING TO BE REPRESENTED ON THE BOARD OF DIRECTORS SHALL DESIGNATE ITS QUALIFIED REPRESENTATIVE IN WRITING TO THE SECRETARY, TO SERVE UNTIL A QUALIFIED REPLACEMENT IS DESIGNATED. FORM 990, PART VI, SECTION B, LINE 11B INFORMATION NEEDED TO COMPLETE FORM 990 IS PULLED TOGETHER AND COMPILED BY THE EXECUTIVE VICE PRESIDENT & COO AND REVIEWED WITH HDA'S AUDITING AND TAX FIRM. HDA'S CEO AND EVP/COO REVIEW THE SIGNIFICANT FORM 990 INFORMATION AND DISCUSS WITH THE TAX MANAGER FROM OUR AUDITING AND TAX FIRM TO AGREE ON HOW TO ADDRESS ANY QUESTIONS OR CHANGES IN REQUIREMENTS. FORM 990, PART VI, SECTION B, LINE 12C HDA HAS A WRITTEN CONFLICT OF INTEREST POLICY. ALL EMPLOYEES AND BOARD MEMBERS ARE COVERED BY THE POLICY. A CONFLICT OF INTEREST COMPLIANCE CERTIFICATION IS REQUIRED TO BE SIGNED BY BOTH BOARD MEMBERS AND STAFF ANNUALLY. IF A CONFLICT OR POTENTIAL CONFLICT IS IDENTIFIED, HDA'S SVP AND GENERAL COUNSEL AND COO WILL DETERMINE WHAT RESTRICTIONS WILL BE IMPOSED ON THE PERSONS INVOLVED. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION SETTING PROCESS FOR HDA CEO HDA'S CEO HAS A MULTI-YEAR EMPLOYMENT CONTRACT. THIS AGREEMENT IS REVIEWED AND AGREED TO BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS AND SIGNED BY THE CHAIRMAN OF THE BOARD. EACH YEAR, THE CHAIR AND VICE CHAIR OF THE BOARD REVIEW THE CEO'S PERFORMANCE, PREPARE A WRITTEN PERFORMANCE REVIEW AND DETERMINE THE AMOUNT OF ANY BONUS AND ANNUAL SALARY INCREASE. ANY COMPENSATION CHANGES ARE COMMUNICATED IN WRITING TO THE EXECUTIVE VICE PRESIDENT & COO FOR IMPLEMENTATION. IN SETTING THE CEO'S COMPENSATION, THE EXECUTIVE COMMITTEE UTILIZES AN INDEPENDENT COMPENSATION CONSULTANT AND THE FORM 990 OF OTHER ORGANIZATIONS COMPENSATION SETTING PROCESS FOR OTHER HDA KEY EMPLOYEES THE CEO, EVP & COO, AND THE VP OF HUMAN RESOURCES REVIEW ALL OTHER STAFF COMPENSATION AT THE END OF EACH CALENDAR YEAR. A WRITTEN PERFORMANCE APPRAISAL IS REQUIRED FOR EACH EMPLOYEE. EACH POSITION HAS A SALARY RANGE, WHICH IS UPDATED BY AN INDEPENDENT OUTSIDE CONSULTANT APPROXIMATELY EVERY THREE YEARS. THE CEO, EVP & COO, AND THE VP OF HUMAN RESOURCES ALSO LOOKS AT WHERE EMPLOYEES' COMPENSATION FALLS WITHIN THEIR SALARY RANGES (BASED UPON THE MOST RECENT JOB DESCRIPTIONS) AND MAKE "PARITY" ADJUSTMENTS, ON A CASE-BY-CASE BASIS. IN ADDITION, ALL SUPERVISORS WHO REQUEST ANNUAL BONUSES FOR ANY OF THEIR EMPLOYEES MUST SUBMIT A WRITTEN PROPOSAL. THESE PROPOSALS ARE REVIEWED BY THE CEO, EVP & COO, AND THE VP OF HUMAN RESOURCES AND APPROVED BY THE CEO FORM 990, PART VI, SECTION C, LINE 19 THEY ARE NOT MADE AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G CONSULTANT FEES 2,922,072. BENEFIT/PAYROLL PLAN FEES 15,191. EMPLOYMENT FEES 67,774. SYSTEM SUPPORT 23,118. DESIGN 3,454. FORM 990, PART XII, LINE 2C: THE AUDIT OVERSIGHT PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. HDA RESEARCH FOUNDATION 901 NORTH GLEBE ROAD ARLINGTON VA 22203 521225130 RESEARCH & EDUCATION VA 501(C)(3) LINE 12A, I HEALTHCARE DISTRIBUTION ALLIANCE 1 HEALTHCARE DISTRIBUTION ALLIANCE PAC 901 NORTH GLEBE ROAD ARLINGTON VA 22203 541559237 POLITICAL VA 527 HEALTHCARE DISTRIBUTION ALLIANCE 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 HDA RESEARCH FOUNDATION B 70000 FMV HDA RESEARCH FOUNDATION O 322140 FMV HDA RESEARCH FOUNDATION Q 100000 FMV