2021-11-05T16:01:29-05:00 2020-12-31 350921680 CROWE LLP 401 East Las Olas Blvd Suite 1100 Fort Lauderdale FL 333014230 990 2020-01-01 592264957 Chapters Health System Inc CHAP 8138718111 12470 Telecom Drive Suite 300 Temple Terrace FL 33637 David J ONeil chief financial officer 2021-11-05 true David J ONeil 999009999 BRITTNEY KOCAJ P01320603 9542028600 2020 2022-09-23 18:48:47Z ANDREW MOLOSKY President & CEO 12470 Telecom Drive ste 300 Temple Terrace FL 33637 134247632 false X chaptershealth.org X 1982 FL Through its subsidiaries, the organization provides services that relieve the suffering of those affected by life-limiting illnesses & end-of-life issues so all may live as fully & comfortably as possible. 14 13 569 13 0 0 10284 69969 57185508 71229666 3884463 5004379 158970 0 61239225 76304014 0 0 0 28172437 40656853 0 0 43811 30030504 35693322 58202941 76350175 3036284 -46161 198991516 208580355 41424644 40910583 157566872 167669772 Chapters Health System, Inc. (CHS), through its subsidiary organizations, provides services to relieve the suffering of persons residing in its communities affected by life-limiting illnesses and end-of-life issues so all may live as fully and comfortably as possible. (continued on Schedule O) false false 59418093 0 71229666 A. Chapters Health System, Inc. provides hospice care and services to patients and families through its four hospice affiliates - LifePath Hospice, Inc., Good Shepherd Hospice, Inc., Hernando-Pasco Hospice, Inc. and Hospice of Okeechobee, Inc. All four are not-for-profit hospice programs certified by the Federal Medicare Program and provide a wide range of palliative and supportive care services to help terminally ill patients, their families, and their loved ones. In addition, Chapters Health System is the sole member and operates four additional LLC's - Chapters Health Palliative Care, LLC; Chapters Health Pharmacy, LLC, Chapters Health Staffing, LLC., and Chapters CareNu LLC. (continued in Sch O). 59418093 true true false true false false false false true true false false false true true false true false false false false false false false false false false false true true false false false false false false false false true false false false false false true true true true false false true 814 0 true 569 true false false false false false true true false false false false false false X 14 13 false false false false false false false true true false false true true true true true true true false true true FL X David J ONeil 8138718111 12470 Telecom Drive Suite 300 Temple Terrace FL 33637 Andrew Molosky PRESIDENT/CEO 38.0 12.0 X X 661676 0 214534 Graham Smith III Treasurer 2.0 2.0 X X 0 0 0 Lilly Ho-Pehling SECRETARY 2.0 2.0 X X 0 0 0 Randall Woodruff VICE CHAIR 2.0 3.5 X X 0 0 0 William Becker Jr CHAIR 2.0 0 X X 0 0 0 Brian Hinton BOARD MEMBER 2.0 0 X 0 0 0 CLIFFORD RHOADES BOARD MEMBER 2.0 2.0 X 0 0 0 Frank Irby BOARD MEMBER 2.0 2.0 X 0 0 0 James Joiner BOARD MEMBER 2.0 2.0 X 0 0 0 Janet Davis Board Member (Through 1/2020) 2.0 0 X 0 0 0 Jerry Eugene Fogarty Immediate Past Chair 2.0 2.0 X 0 0 0 Mary Reardon BOARD MEMBER 2.0 2.0 X 0 0 0 Philip D Wegman BOARD MEMBER 2.0 2.0 X 0 0 0 Phillip Walker BOARD MEMBER 2.0 0 X 0 0 0 Robert Giles Jr Board Member (Through 9/2020) 2.0 0 X 0 0 0 Valerie Goddard BOARD MEMBER (Starting 9/2020) 2.0 2.0 X 0 0 0 David J O'Neil Chief Financial Officer 38.0 12.0 X 605296 0 142604 DEAN FORMAN Chief Operating Officer 38.0 10.0 X 422840 0 98149 Paola Delp Chief Business Development Officer 38.0 10.0 X 303427 0 50027 Ronald S Schonwetter MD Chief Medical Officer 38.0 10.0 X 814280 0 132260 Sharon P Saucier Chief Clinical & Compliance Officer 38.0 10.0 X 403805 0 84925 Sheryl J Sypek Chief Information Officer 38.0 10.0 X 371578 0 98974 Andrea Miller Regional Medical Director - Palliative Care 40.0 0 X 313781 0 2716 John Francis Szafranski Staff Physician 40.0 0 X 252977 0 35570 MARY A ALFANO-TORRES MEDICAL DIRECTOR 40.0 0 X 299298 0 12066 STEWART STEIN MD Associate Vice President - Medical Svcs 40.0 0 X 336413 0 54667 SUZANNE WALL VP, Human Resources 40.0 0 X 234558 0 46886 5019929 0 973378 75 false true false ST JOSEPHS HOSPITAL INC 3001 W Martin Luther King Blvd Tampa FL 33607 PATIENT SERVICES 1350704 LAKELAND REGIONAL MEDICAL CENTER INC 1324 Lakeland Hills Blvd Lakeland FL 338050448 PATIENT SERVICES 1208168 BUCHANAN INGERSOLL & ROONEY PC 501 Grant Street Suite 200 Pittsburgh PA 152194413 LEGAL SERVICES 1064052 CROSSTOWN COURIERS (ELM BUSINESS DEV INC) PO Box 10871 Tampa FL 33679 PATIENT SERVICES 973820 UNIVERSITY COMMUNITY HOSPITAL PO Box 864447 Orlando FL 328864447 PATIENT SERVICES 916416 109 21219 48750 69969 SHARED SERVICES AGREEMENT 561000 43745783 43745783 PHARMACY 446110 7809208 7809208 RENTAL INCOME FROM AFFILIATES 532000 3867641 3867641 MEDICAL STAFFING SERVICES 900099 9572143 9572143 PALLIATIVE CARE 624100 1515953 1515953 4718938 4718938 0 0 71229666 2665963 2665963 0 0 60282033 57837336 106282 2444697 -106282 2338416 2338416 0 0 0 0 0 76304014 71229666 0 5004379 4404376 566494 3794072 43811 72904 72904 28524745 28524745 1321157 1321157 4085250 4085250 2248421 2248421 1695573 1695573 304841 304841 129652 129652 291355 291355 3538164 3538164 0 0 692964 692964 4486384 4486384 4022139 4022139 1949405 1949405 509491 509491 65652 65652 1033535 1033535 7932490 7932490 1706754 1706754 Drugs 3559937 3559937 RECRUITMENT 760262 760262 REPAIRS & MAINTENANCE 1718000 1718000 MED, OXYGEN, IV & DME 801421 801421 495303 495303 0 0 76350175 59418093 16888272 43811 15600 575517 16763542 13548147 367789 1304998 0 0 0 0 259699 248781 4099381 4813838 119995730 60424042 62433497 59571688 91414128 105415615 2186399 0 18511520 19762020 2939961 3339751 198991516 208580355 9538002 8463432 185000 13379676 12444220 0 0 15000000 14556000 3506966 5261931 41424644 40910583 X 157566872 167669772 157566872 167669772 198991516 208580355 X -46161 8427239 1721822 X false true X true false X X 5 LIFEPATH HOSPICE INC 205276870 9 true 0 24099293 GOOD SHEPHERD HOSPICE INC 205276923 9 true 0 9802393 CHAPTERS HEALTH HOME CONNECT INC 275158323 9 true 0 137095 HERNANDO PASCO HOSPICE INC 592217929 9 true 0 12904838 HOSPICE OF OKEECHOBEE 592831397 7 false 0 84271 5 0 47027890 false false false false true false false false false false false false false false false false false Schedule A, Part I, Line 12g AMOUNT OF SUPPORT CHAPTERS HEALTH SYSTEM, INC. PROVIDES SUPPORT SERVICES TO ITS SUBSIDIARIES AND ITS SUPPORTED ORGANIZATIONS (LIFEPATH HOSPICE, INC., GOOD SHEPHERD HOSPICE, INC., CHAPTERS HEALTH HOME CONNECT, INC., HERNANDO PASCO HOSPICE, INC., AND HOSPICE OF OKEECHOBEE INC.) IN THE FORM OF INFORMATION TECHNOLOGY, HUMAN RESOURCES, LEGAL, FUND RAISING, COMPLIANCE, FINANCE, MANAGEMENT OVERSIGHT AND HEALTHCARE PERSONNEL. Schedule A, Part IV, Section A, Line 1 Supported Orgs Listed By Name The supporting organization, Chapters Health System, Inc. (CHS), is organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the tax-exempt purposes and missions of the supported organizations. Of the five supported organizations, LifePath Hospice, Inc. (LPH), Good Shepherd Hospice, Inc. (GSH), Hernando Pasco Hospice, Inc. (HPH), and Chapters Health Home Connect, Inc. (CHHC) are mentioned explicitly in the Articles of Incorporation of CHS, while Hospice of Okeechobee, Inc. (HOK) is included by class or purpose, as an organization within the health system that is described in section 501(c)(3) and classified as a public charity under 509(a)(2) of the Internal Revenue Code of 1986, as amended, with director representation on the board of CHS. Schedule A, Part IV, Section A, Line 5a Added, Substituted, or Removed Sup. Org. Hospice of Okeechobee, Inc. (HOK), EIN 59-2831397, was added as a supported organization in 2020 in order to help CHS achieve its mission to provide services to relieve the suffering of persons residing in its communities affected by life-limiting illnesses and end-of-life issues so all may live as fully and comfortably as possible. Hospice of Okeechobee, Inc. (HOK), is included by class or purpose, as an organization within the health system that is described in section 501(c)(3) and classified as a public charity under 509(a)(2) of the Internal Revenue Code of 1986, as amended. The CHS Articles of Incorporation require that no less than a majority of the directors of CHS must also be persons who are directors of the supported organizations; thus, HOK has director representation on the board of CHS. Schedule A, Part IV, Section C, Line 1 Majority director detail The articles of incorporation of Chapters Health System, Inc. ("Chapters") identify that the organization is organized and operated exclusively for the benefit of, to perform the functions of, or to carry out the tax-exempt purposes and missions of the supported organizations (LifePath Hospice, Good Shepherd Hospice, Chapters Home Health Connect, Hernando Pasco Hospice, and Hospice of Okeechobee). As a supporting organization, Chapters is supervised and controlled in connection with the supported organizations, and therefore is designated a Type II supporting organization. Chapters meets this classification because the management of Chapters is vested in the same persons that control and manage the supported organizations. The bylaws of each of the supported organizations require that the board of directors of each supported organization shall include Chapters' Chief Executive Officer, Chief Operating Officer, Chief Financial Officer, and Chief Medical Officer. The bylaws further require that the management of each supported organization shall include Chapters' Chief Clinical Officer and Chief Compliance Officer, who will serve as ex-officio nonvoting members of the governing bodies. In addition, there are other members of the supported organization governing boards who also serve as directors on the Chapters board. The fact that the management of Chapters is vested in the same persons that control and manage the supported organizations allows Chapters and its five supported organizations to function collectively as a health system. Chapters provides management and administrative support to the supported organizations and various clinical services that further the supported organizations' tax-exempt purpose of providing hospice and home health services to the community. The fact that the core leadership team of each of the supported organizations is also Chapters core leadership team assures that Chapters is responsive to the needs and demands of the supported organizations and that Chapters constitutes an integral part of and maintains a significant involvement in the operations of the supported organizations. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true 129652 false false 129652 false Schedule C, Part II-B, Line 1 DETAILED DESCRIPTION OF THE LOBBYING ACTIVITY A lobbyist was hired to represent the organization before the Florida Legislature and the Executive Branch of Florida Government, including the Department of Elder Affairs and the Agency of Health Care Administration, and to provide guidance regarding interaction with legislation and agency staff on matters pertaining to specific issue advocacy, legislative and regulatory developments of concern. 1017221 23350 1040571 987153 30068 1017221 966052 21101 987153 952006 14046 966052 938429 13577 952006 0.0611 0.9389 0.0 false true true 6358443 6358443 64485508 26175233 38310275 6205235 3704413 2500822 36753845 28304591 8449254 6192699 2239805 3952894 59571688 DEFERRED SERP LIABILITIES 1609052 LEASE INCENTIVE OBLIGATION 492188 CAPITAL LEASE OBLIGATION 1747932 UNCLAIMED PROPERTY 3187 SWAP LIABILITY 1409572 5261931 X 66235094 8427239 -615494 7811745 58423349 291355 17589310 17880665 76304014 58469510 0 0 58469510 291355 17589310 17880665 76350175 Schedule D, Part V, Line 4 Intended uses of endowment funds The Building Endowment fund provides funds for the necessary maintenance and facility up-keep of all Chapters Health Systems, Inc. (CHS) facilities; the Children's Endowment fund provides funds for specific equipment and staffing to meet the needs of pediatric patients, grieving children and families; The Medical Student endowment provides funds to the Medical Student Program that educates future physicians on the importance of end-of-life care. THESE ENDOWMENTS ARE HELD BY CHAPTERS HEALTH FOUNDATION, INC. (CHF), a related organization, AND THE PROGRAMS AND FACILITIES OF CHF SUPPORT CHS AND ITS AFFILIATES. Schedule D, Part X, Line 2 FIN 48 (ASC 740) footnote Chapters and the affiliate organizations are exempt from income taxes on income from related activities under Section 501(c)(3) of the U.S. Internal Revenue Code and corresponding state tax law. Accordingly, no provision has been made for federal or state income taxes. U.S. GAAP requires that a tax position is recognized as a benefit only if it is "more likely than not" that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the "more likely than not" test, no tax benefit is recorded. The applicable Forms 990 have not been subject to examination by the Internal Revenue Service or the state of Florida for the last three years. CHS does not expect the total amount of unrecognized tax benefits to significantly change in the next 12 months. CHS recognizes interest and/or penalties related to income tax matters in income tax expense. CHS did not have any amounts accrued for interest and penalties at December 31, 2020 and 2019. Schedule D, Part XI, Line 2(d) Other revenues in audited financial statements not in form 990 ALLCARE NON-CONTROLLING INTEREST - 242759 CHANGE IN VALUE OF SPLIT INTEREST AGREEMENT - -858253 Schedule D, Part XI, Line 4(b) Other revenues in form 990 not in audited financial statements Support Services Allocation - 17589310 Schedule D, Part XII, Line 4(b) Other expenses in form 990 not in audited financial statements Support Services Allocation - 17589310 X true true X X X X X false true false false false false false false false Andrew Molosky PRESIDENT/CEO 596550 0 51026 0 14100 0 174406 0 40129 0 876210 0 51026 0 Paola Delp Chief Business Development Officer 294515 0 0 0 8912 0 45167 0 4860 0 353454 0 0 0 DEAN FORMAN Chief Operating Officer 378934 0 33075 0 10831 0 70863 0 27286 0 520989 0 33075 0 David J O'Neil Chief Financial Officer 463862 0 41386 0 100048 0 86444 0 56161 0 747900 0 41386 0 Sharon P Saucier Chief Clinical & Compliance Officer 354927 0 0 0 48878 0 62692 0 22233 0 488730 0 0 0 Ronald S Schonwetter MD Chief Medical Officer 502721 0 44325 0 267234 0 92078 0 40181 0 946540 0 44325 0 Sheryl J Sypek Chief Information Officer 292542 0 26578 0 52458 0 58537 0 40437 0 470552 0 26578 0 MARY A ALFANO-TORRES MEDICAL DIRECTOR 273838 0 20634 0 4826 0 8215 0 3850 0 311363 0 20634 0 Andrea Miller Regional Medical Director - Palliative Care 294275 0 16787 0 2719 0 0 0 2716 0 316497 0 16787 0 STEWART STEIN MD Associate Vice President - Medical Svcs 315855 0 14183 0 6375 0 32066 0 22601 0 391081 0 14183 0 John Francis Szafranski Staff Physician 246271 0 5000 0 1706 0 0 0 35570 0 288547 0 5000 0 SUZANNE WALL VP, Human Resources 220275 0 10920 0 3363 0 23210 0 23676 0 281445 0 10920 0 Schedule J, Part I, Line 1a Health or social club dues or initiation fees The organization pays for the president/ceo to be a member of the centre club to cultivate prospective donors and for other business purposes. The use of this membership is business related and therefore the related benefit has not been included in the recipient's taxable compensation. Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan CHS HAS A SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) IN WHICH SOME OF THE INTERESTED PERSONS PARTICIPATE. DURING THE YEAR, THE FOLLOWING PAYMENTS WERE MADE BY CHS INTO THE SERP PLANS OF THE PARTICIPANTS: A.Molosky $164,655 R.Schonwetter $83,578 D.O'Neil $77,943 S.Saucier $54,141 S.Sypek $49,986 D.Forman $62,312 P.Delp $44,476 S.Stein $23,516 S.Wall $16,658 A City of Temple Terrace Florida 596000439 2017-03-23 19365900 TO REFUND THE OUTSTANDING BALANCES OF THE SERIES 2003, SERIES 2004, AND SERIES 2010 BONDS. false false false A 6519500 0 19365900 0 0 0 0 0 0 0 19365900 0 2017 true false true true A false false false false 0.0 0.0 0.0 false false true A false true false false true false false false true A true JOHN C O'NEIL FAMILY MEMBER OF DAVID O'NEIL, CFO 72904 Salary and Benefits false Form 990, Part III, Line 4a PROGRAM SERVICE ACCOMPLISHMENTS (continued from part iii) Chapters Health System provides significant management duties, including without limitation, financial and accounting services, human resources, legal and marketing services, information technology services, to its subsidiaries and wholly owned LLC's via a written Management Agreement. The amount of these services is reflected in the statement of revenue as Shared Services Revenue" and Management Fee Income. B. LifePath Hospice, Inc. LifePath Hospice is a Medicare-certified agency that provides end-of-life care in Hillsborough County, Florida. In 2020, LifePath Hospice served 7,136 patients in its community. Lifepath Hospice maintains 80% market share in Hillsborough County in 2020 as they are one of two hospice providers. The company has 515 trained volunteers whose donated time is valued at $346,573. LifePath Hospice provided $2,486,000 in charity care in 2020. C. Good Shepherd Hospice, Inc. Good Shepherd Hospice is a Medicare-certified agency that provides end-of-life care in Polk, Highlands, Monroe, and Hardee counties in Florida. In 2020, Good Shepherd Hospice served 4,258 patients in its communities. Good Shepherd Hospice maintains 54% market share in Polk and Hardee counties in 2020. The company has 200 trained volunteers whose donated time is valued at $289,416. Good Shepherd Hospice provided $1,534,000 in charity care in 2020. D. Hernando-Pasco Hospice, Inc. Hernando-Pasco Hospice is a Medicare-certified agency that provides end-of-life care in Hernando, Pasco and Citrus counties in Florida. Hernando-Pasco Hospice also provides home health services in Pasco and Pinellas counties. Hernando-Pasco Hospice affiliated with Chapters Health System, Inc. on February 1, 2015. In 2020, Hernando-Pasco Hospice served 4,691 patients in its communities. Hernando-Pasco Hospice maintains 48% market share in Hernando, Pasco, and Citrus counties in 2020. The company has 215 trained volunteers whose donated time is valued at $446,717. Hernando-Pasco Hospice provided $1,265,000 in charity care in 2020. E. Hospice of Okeechobee, Inc. Hospice of Okeechobee, Inc. provides hospice services that relieve the suffering of persons residing in its communities affected by life-limiting illnesses and end-of-life issues so all may live as fully and comfortably as possible. Hospice of Okeechobee, Inc. affiliated with Chapters Health System, Inc. on August 1, 2019. In 2020, Hospice of Okeechobee, Inc. served 232 patients in its communities. The company has 52 trained volunteers. Hospice of Okeechobee, Inc. provided $2,000 in charity care in 2020. F. Chapters Health Palliative Care, LLC. Chapters Health Palliative Care provides pain and palliative care consults in hospitals and other facilities in Hillsborough and Polk counties. In 2020, Chapters Health Palliative Care provided 12,474 patient visits, which included 4,010 new palliative care consults at three hospitals and three nursing home/rehabilitation centers. G. Chapters Health Pharmacy, LLC Chapters Health Pharmacy is a not-for-profit subsidiary that provides medications for the patients of LifePath Hospice and Good Shepherd Hospice. Chapters Health Pharmacy improved staff efficiency with electronic medication orders, filling 157,382 prescriptions in 2020. Chapters Health Pharmacy provides free delivery of medications for hospice patients, at a cost of more than $1,112,801. H. Chapters Health Staffing, LLC. Chapters Health System established a not-for-profit subsidiary, Chapters Health Staffing, LLC, in 2009. Chapters Health Staffing operates a licensed health care services pool. This company provides temporary staffing of healthcare personnel to other Chapters Health System subsidiaries and enables Chapters Health System to centralize the management of clinical staff whose duties cross between multiple subsidiaries. Chapters Health Staffing staff includes physicians, nurses, respiratory therapists and managers for the oncology program, medical staff and infusion services. I. Chapters Health Foundation The Chapters Health Foundation is the fundraising entity of Chapters Health System. Through community events and fundraising activities, the Foundation raises funds to support the unfunded programs of LifePath Hospice, Good Shepherd Hospice, Hernando Pasco Hospice, Hospice of Okeechobee, Chapters Palliative Care, and Home Care services which include charity care, community grief support and medical student education. In 2020, a total of 13,015 donors contributed $4,542,312 to the Chapters Heath Foundation through capital campaigns, memorials, realized planned gifts, special events and other gifts. J. Chapters Health Home Connect is a not for profit corporation whose mission is to provide services for the support and care of frail elderly persons. Form 990, Part III, Line 1 ORGANIZATION'S MISSION (CONTINUED FROM PART III) CHS ALSO WORKS TO PROMOTE AN UNDERSTANDING OF THE NEEDS OF PERSONS WITH SERIOUS OR LIFE-LIMITING ILLNESSES AS WELL AS THE NEEDS OF ITS FAMILIES AND CAREGIVERS. CHS PROVIDES SIGNIFICANT MANAGEMENT DUTIES, INCLUDING WITHOUT LIMITATION, FINANCIAL AND ACCOUNTING SERVICES, HUMAN RESOURCES, LEGAL SERVICES, MARKETING SERVICES AND INFORMATION TECHNOLOGY SERVICES, TO ITS SUBSIDIARIES AND WHOLLY OWNED LLC'S VIA A WRITTEN MANAGEMENT AGREEMENT. Form 990, Part VI, Line 15b process to establish compensation of other employees the compensation of all other officers and key employees is determined by the president/ceo. the president/ceo uses COMPARABILITY DATA AND AN INDEPENDENT COMPENSATION CONSULTANT TO DETERMINE THE COMPENSATION. THE DECISIONS ARE DOCUMENTED IN EACH EMPLOYEE'S file. THIS PROCESS TOOK PLACE DURING THE YEAR. Form 990, Part VI, Line 1a Delegate broad authority to a committee THE EXECUTIVE COMMITTEE, MADE UP OF THE PRESIDENT AND CEO, CHAIRPERSON OF THE BOARD, VICE CHAIRPERSON OF THE BOARD, TREASURER OF THE BOARD, SECRETARY OF THE BOARD, IMMEDIATE PAST CHAIRPERSON OF THE BOARD AND NO FEWER THAN TWO ADDITIONAL ELECTED DIRECTORS AND/OR ELECTED DIRECTORS OF AFFILIATE BOARDS AS APPOINTED BY THE BOARD CHAIRPERSON, SHALL CARRY OUT THE WORK OF THE BOARD OF DIRECTORS BETWEEN MEETINGS AND MAKE RECOMMENDATIONS TO THE BOARD OF DIRECTORS FOR ITS ACTION. THE EXECUTIVE COMMITTEE SHALL HAVE ALL THE AUTHORITY OF THE BOARD OF DIRECTORS except that the Executive Committee is not authorized to: (1) recommend actions or proposals required to be approved by Board members; (2) fill vacancies on the Board or any committee thereof; or (3) adopt, amend, supplement, restate, repeal, or rescind these Bylaws. Form 990, Part VI, Line 11b Review of form 990 by governing body Chapters Health System, Inc. retains an independent tax advisor to assist management in the preparation and review of its IRS Form 990. Prior to filing the return, management and the independent tax advisor review the return and all required schedules with the Compensation Committee of the Board of Directors. The Compensation Committee is composed of independent directors of the Company. Upon completion of its review, the Compensation Committee recommends to the Executive Committee of the Board of Directors that management be authorized to sign and file the return. Under the Company's bylaws the Executive Committee has the authority to take this action on behalf of the Board of Directors. A COMPLETE copy of the Form 990 is provided to the full board prior to filing with the IRS and the Executive Committee reports its activities to the Board of Directors on a quarterly basis. Form 990, Part VI, Line 12c Conflict of interest policy Annually, each officer, director and key employee signs an acknowledgement and disclosure form attesting that they have read the Conflict of Interest Policy and agreeing to comply fully with its terms and conditions during their services with Chapters Health System, Inc. They further agree that if, at any time subsequent to the submission of the disclosure form, they become aware of any actual or potential conflict of interest or the information previously submitted becomes inaccurate or incomplete, they will promptly notify the CHS Board of Directors or the President and CEO of Chapters Health System, Inc. DETERMINATION OF AND REMEDIES FOR CONFLICTS OF INTEREST 1. Disclosure. In connection with any actual or possible conflict of interest, an interested person must disclose the existence of his or her financial interest and must be given the opportunity to disclose all material facts to the Directors (and members of committees) considering the proposed transaction or arrangement. The disclosure shall be made as soon as practicable following the realization by the interested person that an actual or possible conflict of interest exists. Ordinarily, disclosures by interested persons should be to the Chairperson of the Board. When an actual or possible conflict of interest becomes apparent in the course of a Board meeting (or committee meeting), the interested person shall immediately disclose his or her financial interest and related material facts to the presiding Director or officer at such meeting. 2. Determining Whether a Conflict of Interest Exists. After disclosure of the financial interest and all material facts, and after any discussion with the interested person, the interested person shall leave the Board (or committee) meeting while the determination of a conflict of interest is discussed and voted upon. The remaining Board (or committee) members shall decide if a conflict of interest exists. 3.Procedures for Addressing the Conflict of Interest. (a) An interested person who has a conflict of interest may make a presentation at the Board (or committee) meeting, but after such presentation, he or she shall leave the meeting during the discussion of, and the vote on, the transaction or arrangement that result in the conflict of interest. The interested person who has a conflict of interest will not be counted as present for determining a majority with respect to the vote on the transaction or arrangement that results in the conflict of interest. (b) The Chairperson of the Board (or committee) shall, if appropriate, appoint a disinterested person or committee to investigate alternatives to the proposed transaction or arrangement. (c) After exercising due diligence, the Board (or Committee) shall determine whether Chapters Health System can obtain a more advantageous transaction or arrangement with reasonable efforts from a person or business entity that would not give rise to a conflict of interest. (d)If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the Board (or committee) shall determine by a majority vote of the disinterested Directors (or committee members) whether the transaction or arrangement is in CHS's best interest and for its own benefit and whether the transaction is fair and reasonable to CHS and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. Violations of the Conflicts of Interest Policy (a) If the Board (or committee) has reasonable cause to believe that an interested person has failed to disclose actual or possible conflicts of interest, it shall inform the interested person of the basis for such belief and afford the interested person an opportunity to explain the alleged failure to disclose. (b) If, after hearing the response of the interested person and making such further investigation as may be warranted under the circumstances, the Board (or committee) determines that the interested person has in fact failed to disclose an actual or possible conflict of interest, it shall take such action as it determines to be appropriate, including corrective and disciplinary action. RECORD OF PROCEEDINGS The minutes of the Board (and each committee) shall contain: 1. The name of each person who disclosed or otherwise was found to have a financial interest in connection with an actual or possible conflict of interest, the nature of the financial interest, any action taken to determine whether a conflict of interest was present, and the Board's (or committee's) decision as to whether a conflict of interest in fact existed. 2. The names of the persons who were present for discussions and votes relating to the transaction or arrangement, the content of the discussion, including any alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection therewith. PERIODIC REVIEWS To ensure that CHS operates in a manner consistent with its charitable purposes and that it does not engage in activities that could jeopardize its status as an organization exempt from federal income tax, periodic reviews shall be conducted. CHS may, but need not, use an outside advisor to conduct a periodic review. The periodic review shall include, at a minimum, the following subjects: 1. Whether compensation arrangements and benefits are reasonable and are the results of arm's-length bargaining. 2. Whether agreements to provide health care and agreements with other health care providers, employees and third party payers further CHS's charitable purposes and do not result in private inurement or impermissible private benefit. Form 990, Part VI, Line 15a Process to establish compensation of top management official The organization engaged an independent compensation consultant to assist in establishing a Compensation Charter that details the organization's procedures for setting compensation of the President/CEO and all other officers and key employees of the organization. The Compensation Charter established the Compensation Committee, the independent body responsible for establishing the compensation of the President/CEO. The Compensation Committee relies on a recent compensation study performed by an independent compensation consultant, which is done on an annual basis, that provides compensation data for similarly qualified persons in comparable organizations to support its decision-making process and reports its activities to the Board of Directors at the next regularly scheduled meeting. The Compensation Committee adequately documents its compensation determinations in the meeting minutes on a timely basis. This is done annually. Form 990, Part VI, Line 19 Required documents available to the public The organization's articles of incorporation are filed with and viewable by the public at the official website of the Florida Department of State, Division of Corporations. The organization's Bylaws and conflict of interest policy are not made available to the public. Unaudited financial statements of the organization are filed and viewable by the public at the official website of the State of Florida, Division of Consumer Services. The organization is required to file its audited consolidated financial statements and other financial information with its annual Medicare cost report. This information is subject to a public records request. In addition, the organization reports its financial performance each year in its Annual Report, copies of which are available to the public upon request. Form 990, Part VIII, Line 2f Other Program Service Revenue Mgmt fee incom - Total Revenue: 13632, Related or Exempt Function Revenue: 13632, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Allcare Medical of Florida - Total Revenue: 4705306, Related or Exempt Function Revenue: 4705306, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: ; Form 990, Part XI, Line 9 Other changes in net assets or fund balances Allcare Non-Controlling interest - 242649; Change in value of split interest agreement - -858253; Net Asset Transfer - 2337426; Schedule O COVID-19 Pandemic In March 2020, the World Health Organization declared a pandemic related to the rapidly spreading coronavirus ("COVID-19") outbreak, which has led to a global health emergency. The extent to which the COVID-19 pandemic may impact the financial condition or results of CHS' operations is uncertain and cannot be predicted fully at this time. The nature and extent of the final impact may depend on a number of factors, including: the duration and extent of the pandemic; the nature and duration of the pandemic's impact on CHS' healthcare services, and the nature and duration of the pandemic's impact on the CHS' business partners, vendors, and patients, all of which are uncertain and cannot be predicted fully. CHS continues to evaluate the impact of the COVID-19 pandemic on its business and to monitor pandemic related developments. The Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") became law on March 27, 2020. This Federal response to the market volatility and instability resulting from the coronavirus pandemic includes provisions to support individuals and businesses in the form of loans, grants, and tax changes, among other types of relief. The CARES Act authorized $175 billion in payments to be distributed through the Public Health and Social Services Emergency Fund ("Provider Relief Funds" or "PRF"). Payments from the PRF are not loans; however, PRF funds are required to be paid back if not fully utilized by June 30, 2021. During the year ended December 31, 2020, CHS received payments of $9,350,198 from the Provider Relief Fund. CHS has elected to account for the PRF proceeds received as a conditional contribution in accordance with Subtopic 958-605. Under Subtopic 958-605, the PRF proceeds are initially recorded as a deferred grant liability and subsequently recognized as other operating revenue when CHS has substantially met all terms and conditions of the grant. CHS' assessment of whether the terms and conditions for amounts received have been substantially met considers, among other things, the terms of the CARES Act and the Consolidation Appropriation Act of 2021 (CAA), and all other interpretive guidance issued by the U.S. Department of Human and Health Services. Such guidance sets forth the allowable methods for quantifying eligible healthcare related expenses and lost revenues. Only healthcare related expenses attributable to coronavirus that another source has not reimbursed and is not obligated to reimburse are eligible to be claimed. Based on CHS' assessment, the Organization has recognized $9,350,198 which is included in other operating revenue in the consolidated statements of operations and changes in net assets. There are no remaining funds at December 31, 2020. 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