2020-10-07T08:54:29-05:00 2019-12-31 271728945 PKF O'CONNOR DAVIES LLP 500 MAMARONECK AVENUE HARRISON NY 105281633 990 2019-01-01 450553664 HEALTHIX INC HEAL 8776954749 551 NORTH COUNTRY ROAD STE 201206 ST JAMES NY 11780 JOHN GUASTELLA SVP & CFO 8776954749 2020-10-06 1 GARRETT M HIGGINS P00543209 9143818900 2020-10-06 108.35.147.74 2020-10-06 23:49:13 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 C5C0E2060BEB3F24671B5CC0358F632D6B4109AD 2019 2021-01-29 14:40:06Z TODD M ROGOW 551 NORTH COUNTRY ROAD STE 201/206 ST JAMES NY 11780 18624204 0 X WWW.HEALTHIX.ORG X 2007 NY THE MISSION OF THE COMPANY IS TO CREATE AN ACHIEVABLE, SUSTAINABLE AND REPLICABLE MODEL FOR INTEGRATING CLINICAL INFORMATION ACROSS MULTIPLE HEALTH CARE ORGANIZATIONS WHICH SUPPORTS NEW YORK STATE AND FEDERAL STRATEGIC HEALTH INFORMATION TECHNOLOGY (HIT) PLANS TO (A) IMPROVE ACCESS TO PATIENT DATA AT THE POINT OF CARE; (B) IMPROVE HEALTH CARE QUALITY; AND (C) REDUCE INAPPROPRIATE UTILIZATION AND COST. 14 14 76 16 0 0 17418939 17909110 1485340 681274 3126 33820 0 0 18907405 18624204 0 0 0 0 10002639 10812356 0 0 0 8834184 8222385 18836823 19034741 70582 -410537 11537571 11438478 3790942 4102386 7746629 7336092 X THE MISSION OF HEALTHIX INC. IS TO CREATE AN ACHIEVABLE, SUSTAINABLE AND REPLICABLE MODEL FOR INTEGRATING CLINICAL INFORMATION ACROSS MULTIPLE HEALTH CARE ORGANIZATIONS WHICH SUPPORTS NEW YORK STATE AND FEDERAL STRATEGIC HEALTH INFORMATION TECHNOLOGY (HIT) PLANS TO (A) IMPROVE ACCESS TO PATIENT DATA AT THE POINT OF CARE; (B) IMPROVE HEALTH CARE QUALITY; AND (C) REDUCE INAPPROPRIATE UTILIZATION AND COST. 0 0 16028740 681274 SHIN-NY GRANT/HCRA/MEDICAID PROGRAMHEALTHIX WORKS WITH OUR PARTICIPANTS TO INTEGRATE THEM INTO THE HIE AND TO WORK WITH THEM TO DESIGN AND DEVELOP PRODUCTS AND SERVICES THAT HELP THEM TO IMPROVE CARE THROUGH BETTER CARE COORDINATION. IN 2019 WE USED THE FUNDING FROM SHIN-NY/HCRA/MEDICAID TO SUPPORT STAFF AND TECHNOLOGY FOR THIS WORK. OUR SOLUTIONS & MEMBER ENGAGEMENT TEAM RECRUITS NEW PARTICIPANTS, ENSURES COMPLIANCE WITH STATE PRIVACY & SECURITY POLICIES AND PROVIDES ACCOUNT MANAGEMENT SERVICES. THE INNOVATION TEAM AND IT GROUP COVERED FOUR AREAS: PROJECT MANAGEMENT OFFICE, DEVELOPMENT, ENGINEERING AND SECURITY. [SEE CONTINUATION ON SCHEDULE O]THE INNOVATION TEAM INCLUDED TEN PROJECT MANAGERS, A BUSINESS ANALYST, A SOFTWARE QUALITY ASSURANCE ENGINEER A PMO DIRECTOR AND A SENIOR VICE PRESIDENT OF INNOVATION. THE DEVELOPMENT TEAM INCLUDED SIX DEVELOPERS AND A SENIOR DIRECTOR AND THE ENGINEERING TEAM INCLUDED FIVE ENGINEERS AND A MANAGER. THE DEVELOPMENT TEAM WAS AUGMENTED BY UP TO SIX ADDITIONAL CONTRACT DEVELOPERS. SECURITY WAS LED BY A CHIEF INFORMATION SECURITY OFFICER ASSISTED BY A SENIOR ANALYST. IN ADDITION, THE FUNDING SUPPORTED OFFICE SPACE AND DATA CENTER OPERATIONS.ACCOMPLISHMENTSIN 2019 HEALTHIX COMPLETED 664 PROJECTS INCLUDING 542 CUSTOMER PROJECTS, 70 INTERNAL PROJECTS, 34 VENDOR DEVELOPMENT PROJECTS, 12 PRODUCT DEVELOPMENT PROJECTS, 5 GRANTS AND 1 PUBLIC HEALTH PROJECT. THE 542 CUSTOMER PROJECTS INCLUDED CONNECTING NEW PARTICIPANTS TO HEALTHIX AND PROVIDING THEM WITH STANDARD AND CUSTOM SERVICES. HEALTHIX CUSTOMER PROJECTS IN 2019 WERE WITH THE FOLLOWING TYPES OF FACILITIES:- AMBULATORY 388 PROJECTS- HOME CARE 32 PROJECTS- BEHAVIORAL HEALTH ORGANIZATIONS 29 PROJECTS- HEALTH SYSTEMS AND HOSPITALS 27 PROJECTS- LONG TERM CARE/SKILLED NURSING FACILITY 26 PROJECTS- COMMUNITY BASED ORGANIZATIONS 20 PROJECTS- FEDERALLY QUALIFIED HEALTH CENTERS 16 PROJECTS- HEALTH PLANS 16 PROJECTS- ACOS/IPAS 6 PROJECTS- NYC AND NYS PUBLIC HEALTH ORGANIZATIONS 4 PROJECTS- NYS MEDICAID HEALTH HOMES 2 PROJECTS- OTHER NON-CLINICAL 1 PROJECTPCORI CDRN PROGRAMTHE PATIENT-CENTERED OUTCOMES RESEARCH INSTITUTE (PCORI) AWARDED A CONTRACT TO WEILL CORNELL MEDICAL COLLEGE FOR THE NEW YORK CITY CLINICAL DATA RESEARCH NETWORK (CDRN) TO:- BUILD INFRASTRUCTURE TO PERFORM COMPARATIVE EFFECTIVENESS RESEARCH- PERFORM TWO OBSERVATIONAL STUDIES ON DIABETES AND CYSTIC FIBROSIS- FACILITATE PATIENT-CENTERED RESEARCH THAT CAN BE LINKED TO A NATIONAL NETWORK- COLLABORATE NATIONALLY WITH 10 OTHER CDRNS TO DEVELOP BEST PRACTICES AND SUPPORT JOIN STUDIESHEALTHIX CONTRIBUTIONTHE NEW YORK GENOME CENTER FUNCTIONS AS A TRUSTED BROKER COMBINING THE CLINICAL DATA FROM MAJOR HEALTH SYSTEMS IN NYC, SEVERAL FEDERALLY QUALIFIED HEALTH CENTERS, AS WELL AS HEALTH PLANS. THE HEALTHIX MASTER PATIENT INDEX (MPI) IS USED TO LINK PATIENT RECORDS FROM ACROSS THESE FACILITIES INTO A COMMON DATA SET FOR RESEARCH. THE HOMELESS AND UNSTABLY HOUSED GRANTONE OF THE I&I AWARDS THAT HEALTHIX RECEIVED IN 2019 FROM THE NEW YORK STATE DEPARTMENT OF HEALTH, WAS THE HOMELESS AND UNSTABLY HOUSED GRANT. THE FOCUS OF THE PROJECT WAS TO IMPROVE THE HEALTH OUTCOMES OF HOMELESS AND UNSTABLY HOUSED PERSONS BY DEVELOPING SERVICES AND PRODUCTS FOR BETTER CARE MANAGEMENT AND COORDINATION.HEALTHIX COLLABORATED WITH PARTICIPANTS TO IDENTIFY INTERVENTION OPPORTUNITIES TO CONNECT WITH DIFFICULT-TO-LOCATE PATIENTS WHEN THEY PRESENT AT HOSPITAL EMERGENCY DEPARTMENTS, JAILS, SOCIAL SERVICE AGENCIES, BEHAVIORAL HEALTH ORGANIZATIONS OR OTHER PARTICIPANT FACILITIES. THE END GOAL WAS TO COORDINATE CARE TEAMS ACROSS DIVERSE CARE SETTINGS WHO MAY BE WORKING INDEPENDENTLY, IN A FRAGMENTED AND UNCOORDINATED MANNER TO TREAT THE SAME PATIENT, WITH THE AIM OF IMPROVING CARE AND COORDINATION OF SERVICES FOR THE HOMELESS AND UNSTABLY HOUSED. PILOT HIGHLIGHTS AS PART OF MILESTONE #1 AND #2 OF THE PROJECT, HEALTHIX CONDUCTED AN ANALYSIS AGAINST ITS MPI AND USED EXTERNAL SOURCES TO IDENTIFY ALL POTENTIAL PROXIES FOR HOMELESSNESS IN ITS SYSTEM AND HAS CREATED A REGISTRY OF HOMELESS ADDRESSES. USING THE ABOVE-MENTIONED REGISTRY, HEALTHIX TAGGED ALL POTENTIALLY HOMELESS PERSONS IN ITS SYSTEM AND VALIDATED THE RESULTS OF TAGGING THROUGH THE ADVISORY COUNCIL MEMBERS. FOR MILESTONE #3, HEALTHIX COLLABORATED WITH ORGANIZATIONS THAT PROVIDE CARE TO THE HOMELESS TO PILOT ALERTING AND REPORTING THAT FACILITATE BETTER CARE MANAGEMENT AND COORDINATION FOR THE HOMELESS. THIS SERVICE INCLUDES:- ALERTS TO TRACK AND CONNECT WITH DIFFICULT-TO-LOCATE PATIENTS WHEN THEY PRESENT AT AN EMERGENCY DEPARTMENT, JAILS, SOCIAL SERVICE AGENCIES, BEHAVIORAL HEALTH ORGANIZATIONS OR OTHER HEALTHIX PARTICIPANT FACILITIES.- ALERTS TO CONNECT CARE TEAMS ACROSS DIVERSE CARE SETTINGS WHO MAY BE WORKING INDEPENDENTLY, IN A FRAGMENTED AND UNCOORDINATED MANNER TO TREAT THE SAME PATIENT, WITH THE GOAL OF IMPROVING CARE AND COORDINATION OF SERVICES.THE ILUM PROJECTOBJECTIVES OF THE NYSDOH LEADS SYSTEMTHE THREAT OF ANTIMICROBIAL RESISTANCE (AR) CONTINUES TO GROW. THE CDC ESTIMATES THAT AT LEAST TWO MILLION PEOPLE BECOME INFECTED WITH ANTIBIOTIC RESISTANT BACTERIA AND AT LEAST 23,000 PEOPLE DIE EACH YEAR AS A DIRECT RESULT OF THESE INFECTIONS WITHIN THE UNITED STATES. IN AN EFFORT TO ADDRESS THIS EMERGING PUBLIC HEALTH NEED, NEW YORK STATE DEPARTMENT OF HEALTH LABORATORY, EPIDEMIOLOGY, DIGITAL TEAM ("NYS-DOH") AND ILM HEALTH SOLUTIONS, LLC ("ILM") WORKED COLLABORATIVELY TO BUILD A SUSTAINABLE, FLEXIBLE INFECTIOUS DISEASES REPORTING, TRACKING AND SURVEILLANCE TOOL FOR AR THAT CAN BE APPLIED ACROSS NEW YORK STATE. THE GOAL OF THIS PROJECT WAS TO IMPROVE PATIENT OUTCOMES AND SAVE HEALTH CARE DOLLARS BY INTEGRATING REAL TIME EPIDEMIOLOGIC SURVEILLANCE WITH RAPID DELIVERY OF RESULTS TO CARE GIVERS VIA WEB-BASED AND MOBILE PLATFORMS. GOALTHE GOAL OF THIS PROJECT WAS TO ASSESS WHETHER TO DEPLOY A RAPID STATE-WIDE ALERT SYSTEM TO NOTIFY HEALTH CARE FACILITIES OF PATIENTS WITH ANTIMICROBIAL RESISTANT INFECTIONS AS THEY MOVE FROM FACILITY TO FACILITY AND TO ASSESS A RAPID DIAGNOSTIC PLATFORM TO DETERMINE A PATIENT'S GENOMIC PROFILE AND ANTIBIOGRAM TO ALLOW TARGETED INFECTION CONTROL AND TREATMENT. THE PROJECT COMMENCED IN 2019 AS A SMALL-SCALE DEMONSTRATION PROJECT THAT INCLUDED PILOTS WITH NYU LANGONE MEDICAL CENTER AND NORTHWELL HEALTH. DESCRIPTIONFOR THE DEMONSTRATION PROJECT, ILUM AND HEALTHIX ESTABLISHED INTEROPERABILITY OF PATIENT CLINICAL RECORDS. ADT AND ORU MESSAGES WERE ROUTED TO ILUM AS THEY ARE RECEIVED BY HEALTHIX IN THE PARTICIPANT FEEDS. HEALTHIX HAS ALSO ESTABLISHED AN API INTERFACE TO SUPPORT THE QUERY BY IDC FOR HEALTHIX PATIENT ENTERPRISE ID (EID) FROM THE HEALTHIX MPI FOR RECORD LINKING.QM GRANTTHE OBJECTIVE OF THE GRANT WAS TO DEVELOP AND EXPAND SERVICE OFFERINGS TO PCMH PRACTICES AND HEALTH PLANS THAT ESTABLISHES DATA STANDARDS, CALCULATES PATIENT-LEVEL AND POPULATION-LEVEL PCMH SCORES, AND PROVIDES GAPS IN CARE REPORTING TO SUCCESSFULLY FULFILL QUALITY MEASURES REQUIRED TO MEET THE PCMH DESIGNATION.BENEFITS TO PRACTICES:- PROVIDES TIMELY IDENTIFICATION OF GAPS IN DATA- INDICATES DATA GAPS FILLED OUTSIDE THE PRACTICE BENEFITS TO HEALTH PLANS:- CALCULATES QUALITY MEASUREMENTS OF SERVICES PROVIDED BUT NOT CLAIMED IN HEALTH PLAN- CLINICAL DATA ELIMINATES THE NEED FOR MANUAL EMR REVIEW AND EXTRACTION OF DATA- REGISTRATION ALERTS CAN BE RECEIVED FOR PLAN MEMBERS REGARDLESS OF CONSENT, IF MEMBER ROSTERS ARE PROVIDED- CLINICAL DATA ASSISTS CARE COORDINATION AND MANAGEMENTHEALTHIX CONTINUES TO WORK WITH PARTICIPANTS AND HEALTH PLANS IN ACHIEVING THE GOALS QUALITY MEASURE CALCULATION. 16028740 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 9 0 76 1 0 0 0 0 0 0 0 0 0 0 0 0 X 14 14 0 1 0 0 1 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NY X X JOHN GUASTELLA 8776954749 551 NORTH COUNTRY ROAD STE 201/206 ST JAMES NY 11780 TODD M ROGOW PRESIDENT & CEO 40.00 X 413910 0 98701 JOAN CARNEY-CLARK SVP SOLUTIONS & MEMBER ENGAGEMENT 40.00 X 356418 0 63533 THOMAS MOORE SVP-INNOVATION 40.00 X 283044 0 75524 JOHN GUASTELLA SVP & CFO 40.00 X 266410 0 65740 VIVIENNE DESTEFANO SVP CORPORATE AFFAIRS 40.00 X 234383 0 50562 THOMAS F CHECK PRESIDENT & CEO THRU MAY 1, 2019 40.00 X 225235 0 22079 MAGDALENA MANDZIELEWSKA SENIOR DIRECTOR COMPLIANCE 40.00 X 176307 0 40728 JASON THAW VP MEMBER STRATEGY & ENGAGEMENT 40.00 X 175105 0 41311 KATHLEEN KAHN SR. DIRECTOR OF BUSINESS DEVELOPMENT 40.00 X 173724 0 38964 GERI ALMER CONTROLLER 40.00 X 172988 0 27134 JOHN CHOW CISO 40.00 X 169072 0 69224 TINA YVETTE LOWRY DIRECTOR, DATA STRATEGY & REPORTING 40.00 X 166337 0 37132 DAVID COHEN MD CHAIR 4.00 X X 0 0 0 MICHAEL ROSENBLUT TREASURER THRU MARCH 8, 2019 1.00 X X 0 0 0 THOMAS EARLY TREASURER 1.00 X X 0 0 0 MITRA BEHROOZI DIRECTOR 1.00 X 0 0 0 PAUL CASALE MD DIRECTOR 1.00 X 0 0 0 LOUISE COHEN DIRECTOR 1.00 X 0 0 0 RICHARD DONOGHUE DIRECTOR 1.00 X 0 0 0 MAUREEN GAFFNEY DIRECTOR THRU MARCH 29, 2019 1.00 X 0 0 0 ARTHUR GIANELLI DIRECTOR 1.00 X 0 0 0 CHARLES KING DIRECTOR 1.00 X 0 0 0 JOSEPH LAMANTIA DIRECTOR 1.00 X 0 0 0 DAVID LEVENTHAL DIRECTOR 1.00 X 0 0 0 LARRY MCREYNOLDS DIRECTOR 1.00 X 0 0 0 PATRICK O'SHAUGHNESSY DO DIRECTOR 1.00 X 0 0 0 DAVID SCHIMEL DIRECTOR 1.00 X 0 0 0 ANUP VIDYARTHY DIRECTOR 1.00 X 0 0 0 2812933 0 630632 42 0 1 0 J2 INTERACTIVE LLC 2 THIRTEENTH STREET CHARLESTOWN MA 02129 IT CONSULTING/ STAFF AUGMENTATION 926851 CHENOA INFORMATION SERVICES INC 300 CONNELL DRIVE SUITE 1000 BERKLEY HEIGHTS NJ 07922 IT CONSULTING 399500 MEDITOLOGY SERVICES 5256 PEACHTREE ROAD SUITE 190 ATLANTA GA 30341 CONSULTING SERVICES/STAFF AUGMENTATION 208565 GARFUNKEL WILD PC 111 GREAT NECK RD GREAT NECK NY 11021 LEGAL SERVICE 165634 EPLUS TECHNOLOGY INC PO BOX 404398 ATLANTA GA 30188 IT CONSULTING/ RECRUITER/TEMPORARY HELP 151996 6 3419816 14489294 17909110 CONTRACT REVENUE 518210 681274 681274 681274 33820 33820 18624204 681274 0 33820 2195880 1225598 970282 7166571 6389079 777492 282983 271578 11405 329803 321334 8469 837119 722692 114427 115512 99723 15789 206921 178637 28284 49195 42470 6725 314317 271352 42965 113734 98188 15546 189367 163483 25884 4878557 4211702 666855 1150756 993458 157298 117622 101544 16078 44373 38308 6065 816674 705042 111632 183565 158473 25092 BAD DEBT 20474 17675 2799 REPAIRS AND MAINTENANCE 18230 15738 2492 STORAGE FEES 3088 2666 422 19034741 16028740 3006001 0 933431 42615 3002886 3890155 5013364 3968200 744230 1595614 393935 453592 5433699 4004109 1395928 1429590 53797 58712 11537571 11438478 3399442 3970886 391500 131500 3790942 4102386 X 7746629 7336092 7746629 7336092 11537571 11438478 -410537 0 X X 0 1 X 1 1 1 X 14689562 16033831 15975015 17418939 17909110 82026457 562140 523020 699890 1485340 681274 3951664 15251702 16556851 16674905 18904279 18590384 85978121 0 1231 369536 370767 1231 369536 370767 85607354 36238 6251 2432 3126 33820 81867 36238 6251 2432 3126 33820 81867 5252 5252 15293192 16563102 16677337 18907405 18624204 86065240 0.99470 0.98860 0.00100 0.00070 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: OTHER REVENUE - 2015 AMOUNT: $ 5,252. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2814212 1590288 1223924 2619487 2413821 205666 1429590 X 18624204 0 18624204 0 18624204 19034741 0 19034741 0 19034741 PART X, LINE 2: THE COMPANY RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS THAT ARE MORE LIKELY THAN NOT TO BE SUSTAINED. MANAGEMENT HAS DETERMINED THAT THE COMPANY HAS NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION OR DISCLOSURE. THE COMPANY IS NO LONGER SUBJECT TO EXAMINATIONS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO DECEMBER 31, 2016. X 1 1 X X X 0 0 0 0 0 0 0 1 0 TODD M ROGOW PRESIDENT & CEO 360644 0 35015 0 18251 0 64000 0 34701 0 512611 0 35015 0 JOAN CARNEY-CLARK SVP SOLUTIONS & MEMBER ENGAGEMENT 319776 0 34485 0 2157 0 36790 0 26743 0 419951 0 34485 0 THOMAS MOORE SVP-INNOVATION 253569 0 27812 0 1663 0 42227 0 33297 0 358568 0 27812 0 JOHN GUASTELLA SVP & CFO 242084 0 22835 0 1491 0 36339 0 29401 0 332150 0 22835 0 VIVIENNE DESTEFANO SVP CORPORATE AFFAIRS 212023 0 21069 0 1291 0 37528 0 13034 0 284945 0 21069 0 THOMAS F CHECK PRESIDENT & CEO THRU MAY 1, 2019 174062 0 50000 0 1173 0 11309 0 10770 0 247314 0 50000 0 MAGDALENA MANDZIELEWSKA SENIOR DIRECTOR COMPLIANCE 163785 0 12204 0 318 0 27694 0 13034 0 217035 0 0 0 JASON THAW VP MEMBER STRATEGY & ENGAGEMENT 157463 0 17522 0 120 0 8488 0 32823 0 216416 0 17522 0 KATHLEEN KAHN SR. DIRECTOR OF BUSINESS DEVELOPMENT 158089 0 15068 0 567 0 25930 0 13034 0 212688 0 15068 0 GERI ALMER CONTROLLER 155448 0 16998 0 542 0 26862 0 272 0 200122 0 16998 0 JOHN CHOW CISO 168757 0 0 0 315 0 28319 0 40905 0 238296 0 0 0 TINA YVETTE LOWRY DIRECTOR, DATA STRATEGY & REPORTING 152324 0 13726 0 287 0 23968 0 13164 0 203469 0 0 0 PART I, LINE 1A DURING 2019, HEALTHIX INCURRED RELOCATION EXPENSES FOR TODD ROGOW, PRESIDENT AND CEO. THE TAXABLE PORTION OF THESE EXPENSES WAS $17,669. PART I, LINE 7 AN EMPLOYEE MAY RECEIVE AN ANNUAL BONUS EQUAL TO AS MUCH AS 12% OF HIS/HER BASE SALARY (EXCEPT FOR THE CEO, WHOSE ANNUAL BONUS IS SET BY HIS EMPLOYMENT AGREEMENT). THE BONUS WILL BE DETERMINED BASED UPON PERFORMANCE OBJECTIVES OUTLINED BY THE EMPLOYEE'S SUPERVISOR AND DISCUSSED WITH THE EMPLOYEE, IN MOST CIRCUMSTANCES, EARLY IN THE FIRST QUARTER OF THE COMPENSATION YEAR. FOR NEW EMPLOYEES, WHOSE FIRST ANNUAL BONUS IS PRORATED FROM THEIR DATE OF HIRE TO THE END OF THE YEAR, THEIR PERFORMANCE OBJECTIVES ARE DISCUSSED WITH THEM SHORTLY AFTER THEY ARE HIRED. A DOCUMENT OUTLINES AN EMPLOYEE'S PERFORMANCE OBJECTIVES IS MATCHED TO THE COMPANY'S STRATEGIC GOALS FOR EACH YEAR. ONCE THE COMPANY'S FISCAL YEAR HAS ENDED, THE SUPERVISOR PREPARES AN EVALUATION TO SEE IF THE EMPLOYEE HAS MET THE CRITERIA FOR INCENTIVE PAY FOR THE PERFORMANCE OBJECTIVES OUTLINED, AND DETERMINES HOW THE EMPLOYEE HAS PERFORMED. THE OVERALL PERFORMANCE IS DETERMINED AND AN OVERALL RATING IS ASSIGNED TO THE PERFORMANCE. THIS OVERALL RATING IS THE DETERMINING FACTOR FOR THE PERCENTAGE BONUS WHICH THE EMPLOYEE HAS EARNED FOR THE PREVIOUS FISCAL YEAR. A SCHEDULE IS DISTRIBUTED TO ALL EMPLOYEES WHICH SHOWS THE PERCENTAGE BONUS AN EMPLOYEE CAN EARN BASED UPON HOW THEIR PERFORMANCE IS RATED. THIS SCHEDULE ALSO BRIEFLY SUMMARIZES THE COMPANY'S INCENTIVE COMPENSATION PROGRAM. THIS IS DISTRIBUTED TO EMPLOYEES IN THE COMPENSATION YEAR SO THAT EACH EMPLOYEE AND THEIR SUPERVISOR ARE AWARE OF WHAT CAN BE EARNED. PAYMENT OF ANY INCENTIVE COMPENSATION IS WHOLLY DEPENDENT UPON THE COMPANY MEETING ITS OPERATING INCOME TARGET, AS IS ESTABLISHED AT THE BEGINNING OF EACH FISCAL YEAR AND APPROVED BY THE BOARD OF DIRECTORS. ONCE THE COMPANY'S BOOKS ARE CLOSED IN THE SUBSEQUENT PERIOD, AND THE COMPANY HAS RECEIVED CONFIRMATION FROM ITS INDEPENDENT AUDITORS AS TO ITS RESULTS OF OPERATIONS FOR THE COMPENSATION YEAR, THE COMPANY THEN COMPARES ITS ACTUAL OPERATING INCOME TO ITS TARGETED OPERATING INCOME. ASSUMING THE OPERATING INCOME TARGET IS MET OR EXCEEDED, MANAGEMENT THEN INFORMS THE HEALTHIX FINANCE COMMITTEE OF THIS AND RECOMMENDS THAT BONUSES CAN BE PAID. PROPOSED BONUSES ARE THEN SUBMITTED TO THE CEO (OR PREPARED BY HIM FOR HIS DIRECT REPORTS). SUBSEQUENT TO THIS, THE HEALTHIX EXECUTIVE COMMITTEE (WHICH FUNCTIONS AS ITS COMPENSATION COMMITTEE AND HAS RECEIVED THE FINANCE COMMITTEE'S RECOMMENDATION TO PAY OUT BONUSES) MEETS TO DISCUSS AND APPROVE THE SPECIFIC BONUSES TO BE PAID, WHICH USUALLY OCCURS IN APRIL OF THE YEAR FOLLOWING THE YEAR IN WHICH THEY WERE EARNED (THE COMPENSATION YEAR). INCENTIVE COMPENSATION EARNED IN 2018 AND PAID/TAXABLE IN 2019 IS LISTED BELOW (ONLY FOR THOSE EMPLOYEES WHO EARNED OVER $100,000 IN 2018): - TODD ROGOW $35,015 - JOHN GUASTELLA $22,835 - JOAN CARNEY-CLARK $34,485 - THOMAS MOORE $27,812 - VIVIENNE DESTEFANO $21,069 - MAGDALENA MANDZIELEWSKA $12,204 - JASON THAW $17,522 - KATHLEEN KAHN $15,068 - GERI ALMER $16,998 - TINA YVETTE LOWRY $13,726 HGC #4 HIGH GAP CLOSURE AWARD THE HIGH GAP CLOSURE (HGC) HUB GRANT INITIATIVE ALLOWED HEALTHIX TO BUILD UPON THE SUCCESS OF THE HEALTHIX HUB MODEL PROGRAM BY PARTNERING WITH NEW EHRS AND ESTABLISHING HUB MODEL CONNECTIONS AS ADDITIONAL AVENUES TO FACILITATE PARTICIPATION WITH PROVIDERS NOT CONNECTED TO A QE. ADDING A TOTAL OF 6 ADDITIONAL HUB EHRS ALLOWED HEALTHIX TO REDUCE THE BARRIERS TO ACCESS FOR PROVIDERS WHO OTHERWISE COULD NOT CONNECT TO THE QE IN AN EFFICIENT COST-EFFECTIVE MANNER. HEALTHIX HAS HAD GREAT SUCCESS OVER THE PAST 3 YEARS CONNECTING MORE THAN 500 SITES THROUGH A HUB MODEL EHR, BUT THERE REMAIN MANY AMBULATORY PROVIDERS IN THE HEALTHIX SERVICE AREA OF NEW YORK CITY AND LONG ISLAND, WHO ARE NOT YET PARTICIPATING IN ANY QE IN THE SHIN-NY. THE HGC HUB MODEL GRANT ENABLED HEALTHIX TO CONTINUE UPON THAT SUCCESS AND FURTHER CLOSE THE GAP IN QE PARTICIPATION. IN THE HUB MODEL, THE EHR VENDOR MAINTAINS ONE INTERFACE TO HEALTHIX FROM ITS DATA CENTER OR INTERFACE ENGINE, WHICH SUPPORT MULTIPLE CLIENTS; AND THE VENDOR CAN EASILY ADD THE PARTICIPANT TO THE VENDOR'S EXISTING INTERFACE WITH HEALTHIX. THE GRANT PROJECT HAD THREE PHASES: 1) IDENTIFY CANDIDATE EHRS IN THE MARKET PLACE, BASED ON LISTS PROVIDED BY ACOS AND IPAS WHO WERE IDENTIFIED AS CAPABLE OF BUILDING A HUB MODEL CONNECTION. COMPLETE ANALYSIS, SCOPING AND PLANNING WITH THE IDENTIFIED EHRS; 2) DEVELOP UP TO 6 NEW HUB MODEL INTERFACES WITH AMBULATORY EHRS; 3) GO-LIVE WITH AND PILOT AT LEAST ONE PRACTICE FOR EACH NEW HUB CREATED. AT GRANT COMPLETION, HEALTHIX WAS ABLE TO COMPLETE ALL 6 HUB EHR BUILDS AND GO LIVE WITH AT LEAST ONE PILOT SITE. DESCRIPTION OF OUTCOMES PHASE 1: HUB-MODEL VETTING PROCESS THE GOAL FOR THE FIRST PHASE OF THE GRANT WAS TO IDENTIFY TARGET EHR VENDORS AND DISTINGUISH THE VOLUME OF CLIENTS IN THE HEALTHIX MARKET PLACE. HEALTHIX THEN ASSESSED THEIR READINESS AND WILLINGNESS TO ESTABLISH A HUB CONNECTION WITH THE QE WHICH IS CONFIRMED THROUGH A TECHNICAL SCOPE SIGN-OFF. HEALTHIX COMPLETED THIS VETTING PROCESS WITH OVER 21 DIFFERENT EHRS AND IDENTIFIED 6 AMBULATORY EHRS THAT WERE TECHNICALLY CAPABLE OF PARTICIPATING IN THE HEALTHIX HUB-MODEL INITIATIVE AND GOING LIVE BY GRANT DEADLINE. THE EHRS WERE ANTWORKS, AZALEA, CRITERIONS, GREENWAY-INTERGY, MEDI-EHR, AND SUNCOAST FOR TOTALMD. ONCE THE PROJECTS KICKED OFF IN PHASE 2 IT WAS EVIDENT THAT SUNCOAST FOR TOTALMD DID NOT HAVE THE TECHNICAL CAPABILITIES ORIGINALLY AGREED UPON IN THE TECHNICAL SCOPE SIGN-OFF. HEALTHIX WITH THE APPROVAL OF THE NEW YORK EHEALTH COLLABORATIVE (NYEC) WAS ABLE TO IDENTIFY A 7TH EHR CELERITY - THAT WOULD BE ABLE TO MEET THE GRANT DELIVERABLES. CELERITY REPLACED SUNCOAST AS THE 6TH EHR PROJECTED TO GO LIVE. PHASE 2 AND 3: DEVELOP NEW HUB INTERFACES WITH UP TO 6 EHRS AND PILOT WITH AT LEAST ONE PRACTICE FOR EACH NEW HUB CREATED. WITH THE FINAL 6 EHRS IDENTIFIED (ANTWORKS, AZALEA, CRITERIONS, GREENWAY-INTERGY, MEDI-EHR, AND CELERITY) AND TECHNICAL SCOPES SIGNED OFF ON, KICK-OFF WAS SCHEDULED WITH ALL 6 EHRS WITHIN THE 2018 CALENDAR YEAR. EACH INTERFACE WAS COMPRISED OF A PATIENT REGISTRATION FEED (EITHER THROUGH ADT HL7 MESSAGE OR PIX IHE TRANSACTION) AND A CLINICAL DATA FEED (CCDA). CONSENT AS CAPABLE BY THE EHR WAS PROVIDED IN THE ADT FEED OR THROUGH A XACML DOCUMENT. ONE EHR, GREENWAY-INTERGY, DID NOT HAVE THE CAPABILITY OF CREATING A CONSENT USER INTERFACE AND WAS SCOPED TO UTILIZE HEALTHIX HOSTED REGISTRATION FOR THEIR CUSTOMERS CONNECTING TO HEALTHIX. ALL FINAL 6 EHRS IDENTIFIED COMPLETED SUCCESSFUL TESTING AND ONBOARDING FOR AT LEAST ONE PILOT SITE. THIS FINAL PHASE CONSISTED OF DATA VALIDATION FOR PATIENT REGISTRATION AND CLINICAL DATA FLOW OF COMMON CLINICAL DATA AND A DATA MONITORING PROCESS PRIOR TO CONDUCTING PARTICIPANT USER ACCEPTANCE TESTING, WHICH DEMONSTRATES THE EHR FUNCTIONALITY THROUGH THE HUB FOR THE PILOT SITE. CRITERIONS EXCEEDED THIS EXPECTATION AND POST GO LIVE COMPLETED AN ADDITIONAL 12 INTEGRATIONS. DESCRIPTION OF PROCESSES IN COLLABORATION AMONG HEALTHIX BUSINESS AND TECHNICAL PROJECT MANAGEMENT TEAMS, THERE WERE THREE MAIN PROCESSES WHICH DROVE THE WORK FOR THIS GRANT: THE HUB VENDOR VETTING, PARTICIPANT RECRUITMENT AND IMPLEMENTATION PROCESS. THE SUCCESS OF THIS INITIATIVE RELIED ON CROSS-FUNCTIONAL TEAMS IN TECHNOLOGY, PROJECT MANAGEMENT, COMPLIANCE, ACCOUNT MANAGEMENT AND BUSINESS DEVELOPMENT WORKING TOGETHER IN ORDER TO REACH KEY MILESTONES AND ACCOMPLISHMENT OF GOALS. HUB-MODEL EHR VENDOR VETTING PROCESS THE HUB-MODEL EHR VENDOR VETTING PROCESS WAS ESTABLISHED AND REFINED AS A KEY PART OF THE HUB MODEL PROGRAM AT HEALTHIX. IT PLAYS A CRITICAL ROLE IN IDENTIFYING EHR VENDOR READINESS AND WILLINGNESS TO ESTABLISH EFFICIENT INTEROPERABILITY FOR THE BENEFIT OF THEIR CUSTOMERS SEEKING TO CONNECT TO THE QE. ONCE EHR VENDORS ARE IDENTIFIED THROUGH VARIOUS MEANS INCLUDING LISTS PROVIDED BY ACOS AND IPAS, A VENDOR CONTACT IS IDENTIFIED AND A TECHNICAL SCOPING CALL WITH THE VENDOR AND HEALTHIX IS SCHEDULED. THE GOAL FOR THIS CALL IS TO DETERMINE IF THE EHR VENDOR HAS THE TECHNICAL AND BUSINESS ABILITY TO BE A HUB MODEL EHR. IF THEY ARE ABLE TO BE A HUB MODEL EHR A SCOPE DOCUMENT IS CREATED AND SHARED WITH THE VENDOR FOR SIGN-OFF. SIGN-OFF OF THE SCOPE DOCUMENT BY THE VENDOR TRIGGERS A HUB MODEL PROJECT TO KICK-OFF AND FOR RECRUITMENT TO COMPLETE PARTICIPANT AGREEMENTS, INCLUDING SCOPE, FOR THE HEALTHIX BUSINESS DEVELOPMENT TEAM. RECRUITMENT ON OCCASION, THE RECRUITMENT EFFORTS WERE DONE IN COLLABORATION WITH THE EHR VENDORS. OUTREACH: CONTACT A PROSPECT (HEALTHCARE PROVIDER), COLLECT ENROLLMENT INFORMATION. EDUCATION: DESCRIBE OUR CORE SERVICES, DATA (TYPES, SOURCES, USES), CONSENT, AND A DEMO OF THE PORTAL. CONTRACT: SEND HEALTHIX PARTICIPANT AGREEMENT, AND ANY ADDITIONAL PAPERWORK. VENDOR CONTRACT: RECEIVE CONFIRMATION THAT THE PROSPECT'S EHR VENDOR CONTACT HAS BEEN EXECUTED. TRANSITION: HANDOFF TRANSITION TO THE APPROPRIATE HEALTHIX TEAM MEMBER AND START ONBOARDING PROCESS. HUB BUILD & IMPLEMENTATION PROCESS HUB BUILD ONCE A NEW HUB BUILD IS KICKED-OFF THE HEALTHIX PROJECT MANAGER HAS APPROXIMATELY 2 WEEKS TO ESTABLISH CONNECTIVITY WITH THE NEW HUB EHR PRIOR TO STARTING MESSAGE TESTING FOR A PILOT SITE. THIS MEANS THAT HEALTHIX NEEDS TO HAVE A PILOT PARTICIPANT SITE CONTRACTED AND READY TO TEST WITHIN THE FIRST 2 WEEKS OF HUB BUILD KICK-OFF. THEREFORE, RECRUITMENT AND IMPLEMENTATION ARE DEPENDENT ON ONE ANOTHER FOR ULTIMATE SUCCESS AND COMPLETION. IMPLEMENTATION PROCESS IN ORDER FOR A PARTICIPANT TO GO LIVE IN THE IMPLEMENTATION PROCESS WITH HEALTHIX, THEY MUST PARTICIPATE IN A COMPLIANCE REVIEW. ONCE A PARTICIPANT AGREEMENT IS FULLY EXECUTED, THE PARTICIPANT IS TRANSITIONED AND CONNECTED TO THE COMPLIANCE DEPARTMENT TO DEVELOP AND COMPLETE THEIR COMPLIANCE WORK PLAN. THIS INCLUDES CONSENT TRAINING, PRIVACY POLICY ADHERENCE, PATIENT EDUCATION, AND AUDITS. THIS WORK IS DONE SIMULTANEOUSLY AS A HEALTHIX PROJECT MANAGER ON THE EHR INTEROPERABILITY TEAM WORKS WITH THE EHRS TO ESTABLISH THE HUB CONNECTION TO HEALTHIX. ONCE A PARTICIPANT COMPLETES THEIR PREREQUISITES AND THE HUB IS BUILT, THEN THE PILOT SITE FEED IS ACTIVATED (I.E. GO-LIVE OCCURS). AFTER LIVE FEED IS VALIDATED AND MONITORED, THE PROJECT MANAGER WORKS WITH THE SITE TO COMPLETE THE USER ACCEPTANCE TESTING. UPON COMPLETION OF A SUCCESSFUL TESTING SESSION, THE PROJECT IS CONSIDERED CLOSED AND THE NEWLY CONNECTED PARTICIPANT IS CONNECTED TO THEIR HEALTHIX ACCOUNT MANAGER FOR USER TRAINING OF STAFF. DESCRIPTION OF ACTIVITIES IN ORDER TO ENSURE ALL TEAMS AT HEALTHIX WERE ON TRACK TO ACHIEVE TIMELY COMPLETION OF THE GRANT, AN HGC WORKGROUP WAS ESTABLISHED FOR BOTH HUB AND GATEWAY VENDOR GRANTS. THE WORKGROUP MET ON A WEEKLY BASIS AND INCLUDED REPRESENTATION FROM EACH DIVISION WITHIN HEALTHIX INVOLVED IN THE GRANT AND DELIVERABLE ACTIVITIES. AT EACH WEEKLY MEETING, AN AGENDA WAS PROVIDED TO THE WORKGROUP PRIOR TO THE MEETING ALLOWING EACH DIVISION TO UPDATE THE TEAM ON THEIR PROGRESS TOWARDS THE UPCOMING MILESTONES, AND ANY CHALLENGES OR BARRIERS ENCOUNTERED IN THE PAST WEEK. SENIOR LEADERSHIP REPRESENTATION AT THESE MEETINGS WAS CRITICAL AS IT ENSURED COMMITMENT TO THE GRANT AT ALL HEALTHIX TEAM LEVELS AND SENIOR LEADERSHIP PLAYED A KEY ROLE IN ESCALATIONS WHEN ALL OTHER OPTIONS HAD BEEN EXHAUSTED. IN ADDITION TO THE MEETINGS, A TRACKER WAS MAINTAINED BY THE HEALTHIX PROJECT COORDINATOR FOR ALL SITES AND EHRS THROUGHOUT THE VETTING, RECRUITING AND IMPLEMENTATION PROCESS. THIS DOCUMENT BECAME THE "SOURCE OF TRUTH" FOR THE GRANT DELIVERABLES TRACKING AND MANAGEMENT OF PENDING ACTIVITIES AND MILESTONES. TECHNICAL ARCHITECTURE THE FOLLOWING TWO TECHNICAL COMMUNICATION METHODS WERE USED FOR CLINICAL DATA TRANSFER IN THE HIGH GAP CLOSURE PROJECT: WEBSERVICE OR SECURE FILE TRANSFER PROTOCOL (SFTP) 1) FOR NEW PARTICIPANTS CONNECTING TO HEALTHIX THROUGH THE NEW HUB WITH THEIR EHR VENDOR, THEIR CLINICAL DATA WAS SENT TO HEALTHIX AS A CCD/C-CDA VIA WEB SERVICES TO THE HEALTHIX BUS AND DATA THEN STORED ON THE HUB AND EDGE SERVERS. AN ALTERNATE OPTION USED BY SOME EHRS WAS TO USE SECURE FILE TRANSFER PROTOCOL (SFTP), CLINICAL DATA WAS SENT TO HEALTHIX AS A CCD/C-CDA VIA SFTP AND STORED ON THE HUB AND EDGE SERVERS. 2) UPON QUERY, CLINICAL DATA WAS FETCHED FROM HEALTHIX AND RETURNED TO THE PARTICIPANT ALSO THROUGH WEB SERVICES. CLINICAL DATA CAN BE QUERIED EITHER THROUGH THE PORTAL OR THE PARTICIPANT'S EHR. 3) WHEN A PATIENT RECORD IS QUERIED, HEALTHIX IDENTIFIES THE PATIENT BEING SEARCHED USING THE VERATO MPI, THE HUB THEN DETERMINES ALL THE RECORDS ASSOCIATED WITH THE PATIENT AND PULLS THE RELEVANT RECORDS FROM THE VARIOUS EDGE SERVERS. THE RESULTS ARE RETURNED TO THE ACCESS GATEWAY TO BE DELIVERED TO THE PARTICIPANT. 4) MOST PARTICIPANTS CHOOSE TO SUBSCRIBE TO CLINICAL EVENT NOTIFICATIONS. THE CEN GATEWAY MANAGES THE DETECTION OF EVENTS, COMPOSING THE MESSAGES AND SENDING THEM TO THE SUBSCRIBER THROUGH THE GATEWAY OVER A VPN TUNNEL TO THE SUBSCRIBER AS AN HL7 MDM MESSAGE. CENS DELIVERED TO SUBSCRIBERS VIA THE CLINICAL MESSAGE CENTER ARE SENT THROUGH THE ACCESS GATEWAY TO THE HEALTHIX PORTAL. FUNCTIONAL AND TECHNICAL SPECIFICATIONS THE EHR INTEROPERABILITY TEAM COMPLETED NEW HUB IMPLEMENTATION PROJECTS WITH SIX NEW EHR VENDORS: ANTWORKS, AZALEA, CRITERIONS, GREENWAY-INTERGY, MEDI-EHR, AND CELERITY. ATTACHED ARE THE SCOPE DOCUMENTS FOR EACH OF THESE NEW HUB BUILDS. THESE DOCUMENTS DESCRIBE THE FUNCTIONALITY AND PROJECT TASKS THAT EACH NEW PARTICIPANT CAN EXPECT WHEN INTEGRATING WITH HEALTHIX WITH ONE OF THESE VENDORS. IN ORDER TO INTEGRATE WITH HEALTHIX, WE ASK EACH OF THESE VENDORS TO COMPLY WITH THE FOLLOWING TECHNICAL SPECIFICATIONS: - HEALTHIX HL7 ADT V1.6 OR HEALTHIX_INBOUND_OUTBOUND_CCD_SPECS_V1.6 - HEALTHIX IHE TRANSPORT MECHANISM V1 OR HEALTHIX PROVIDER FLAT FILE_SPECIFICATION_V16 (1) FOR SENDING AND RECEIVING CLINICAL DATA IN THE FORM OF A CCD/C-CDA. FORM 990, PART VI, SECTION A, LINE 3 HEALTHIX, INC. USES ADP TOTALSOURCE, A PROFESSIONAL EMPLOYER ORGANIZATION ("PEO"). AS A PROFESSIONAL EMPLOYER ORGANIZATION, TOTALSOURCE PROVIDES PROFESSIONAL EMPLOYER SERVICES TO HEALTHIX, INC. IN THE PEO RELATIONSHIP TOTALSOURCE AND HEALTHIX, INC. SHARE CERTAIN RESPONSIBILITIES AND ALLOCATE OTHER EMPLOYER RESPONSIBILITIES BETWEEN EACH OTHER. HEALTHIX, INC. REMAINS AN EMPLOYER OF THE WORKSITE EMPLOYEES AND TOTALSOURCE IS A CO-EMPLOYER OF HEALTHIX, INC.'S EMPLOYEES. HEALTHIX, INC. HAS: DIRECTION AND CONTROL OVER EMPLOYEES AS IS NECESSARY TO CONDUCT ITS BUSINESS, DISCHARGE AND FIDUCIARY RESPONSIBILITY IT MAY HAVE, OR COMPLY WITH ANY APPLICABLE LICENSURE, REGULATORY OR STATUTORY REQUIREMENT OF HEALTHIX, INC. CONTROL OVER THE DAY TO DAY JOB DUTIES OF EMPLOYEES AND OVER THE JOB SITES AT WHICH, OR FROM WHICH EMPLOYEES PERFORM SERVICES RESPONSIBILITY OVER THE PROFESSIONAL AND LICENSED ACTIVITIES OF EMPLOYEES INCLUDING ENSURING THAT EMPLOYEES ARE SUPERVISED BY LICENSED INDIVIDUALS AS REQUIRED BY LAW AND FOR DETERMINING WHETHER AN APPLICANT OR EMPLOYEE MEETS HEALTHIX, INC.'S HIRING CRITERIA AND IS QUALIFIED TO SAFELY AND COMPLETELY PERFORM HIS OR HER JOB TOTALSOURCE RESERVES A RIGHT OF DIRECTION AND CONTROL OVER EMPLOYEES AS IS NECESSARY TO FULFILL ITS OBLIGATIONS AND PROVIDE ITS SERVICES UNDER AN AGREEMENT BETWEEN HEALTHIX, INC. AND TOTALSOURCE. TOTALSOURCE AND HEALTHIX, INC. HAVE A RIGHT TO HIRE, DISCIPLINE, AND TERMINATE EMPLOYEES AS TO EACH ONE'S EMPLOYMENT RELATIONSHIP WITH EMPLOYEES. THE PEO WAS PAID $115,512 DURING 2019 FOR SERVICES PROVIDED. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP: IN ORDER FOR AN ORGANIZATION OR INDIVIDUAL TO QUALIFY TO BE A PARTICIPANT IN THE REGIONAL HEALTH INFORMATION ORGANIZATION ("RHIO") OPERATED BY THE CORPORATION ("PARTICIPANT"), HE/SHE OR IT MUST ENTER INTO A RHIO SERVICES, PARTICIPATION OR SIMILAR AGREEMENT WITH THE CORPORATION (EACH, A "RHIO SERVICES AGREEMENT"), THE FORM OF WHICH HAS BEEN APPROVED BY THE BOARD OF DIRECTORS OF THE CORPORATION ("BOARD"), TO PARTICIPATE IN A CLINICAL INFORMATION DATA EXCHANGE PROGRAM WITH THE CORPORATION AND TO ACT AS A DATA SOURCE AND/OR DATA USER WITH RESPECT TO THE CORPORATION'S DATA EXCHANGE. A PARTICIPANT'S PARTICIPATION IN THE CORPORATION WILL TERMINATE IF THE RHIO SERVICES AGREEMENT IS TERMINATED FOR ANY REASON. FORM 990, PART VI, SECTION B, LINE 11B AFTER THE FORM IS PREPARED BY OUTSIDE ACCOUNTANTS, IT WILL FIRST BE REVIEWED BY THE SVP & CFO. IF THERE ARE ANY SUGGESTED CHANGES OR MODIFICATIONS, HE WILL COMMUNICATE DIRECTLY WITH THE OUTSIDE ACCOUNTANTS. ONCE THE SVP & CFO IS SATISFIED WITH THE 990, HE WILL PASS IT ON TO THE CEO FOR HIS REVIEW. ONCE THE CEO IS SATISFIED WITH THE 990, THE NEXT STEP IS TO PASS IT ON TO THE CHAIRMAN OF THE FINANCE COMMITTEE, WHO IS A MEMBER OF THE EXECUTIVE COMMITTEE AND THE BOARD OF DIRECTORS, FOR HIS REVIEW. ONCE THIS INDIVIDUAL IS SATISFIED WITH THE 990, IT WILL BE PASSED ON TO THE FULL EXECUTIVE COMMITTEE. THIS COMMITTEE IS A SUBSET OF THE FULL HEALTHIX, INC. BOARD AND IS CHARGED WITH MAKING MANY KEY DECISIONS AFFECTING THE COMPANY. IT IS THIS GROUP OF INDIVIDUALS THAT WILL AUTHORIZE THE FILING OF THE 990. ONCE THE EXECUTIVE COMMITTEE IS SATISFIED WITH THE 990 AND HAS AUTHORIZED ITS FILING, THE SVP & CFO WILL PROVIDE AN ELECTRONIC COPY TO THE FULL BOARD OF DIRECTORS PRIOR TO THE EXTENDED DUE DATE OF THE RETURN. THE BOARD WILL BE INFORMED THAT THE EXECUTIVE COMMITTEE HAS REVIEWED AND APPROVED THE 990. IF ANY BOARD MEMBER HAS ANY QUESTIONS OR CONCERNS THEY WILL BE INSTRUCTED TO CONTACT THE SVP & CFO, WHO WILL RESOLVE THEIR INQUIRIES PROMPTLY. FORM 990, PART VI, SECTION B, LINE 12C ALL DIRECTORS, OFFICERS, AND KEY PERSONS WILL, AT LEAST ANNUALLY THEREAFTER, FILE A WRITTEN CONFLICT OF INTEREST DISCLOSURE STATEMENT WITH HEALTHIX SENIOR DIRECTOR OF COMPLIANCE. HEALTHIX SENIOR DIRECTOR OF COMPLIANCE WILL PROVIDE COPIES OF ALL COMPLETED STATEMENTS TO THE CHAIR OF THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD FOR REVIEW. NEW DIRECTOR MUST FILE CONFLICT OF INTEREST PRIOR TO BEING ELECTED TO BECOME A HEALTHIX BOARD MEMBER. FOR DIRECTORS, THE CONFLICT OF INTEREST DISCLOSURE STATEMENT WILL SPECIFICALLY INCLUDE, AMONG OTHER DISCLOSABLE CONFLICTS OF INTEREST, A STATEMENT IDENTIFYING, TO THE BEST OF THE DIRECTOR'S KNOWLEDGE, ANY ENTITY OF WHICH HE OR SHE IS AN OFFICER, DIRECTOR, TRUSTEE, MEMBER, OWNER (EITHER AS A SOLE PROPRIETOR OR A PARTNER), OR EMPLOYEE AND WITH WHICH HEALTHIX HAS A RELATIONSHIP, AND ANY TRANSACTION IN WHICH HEALTHIX IS A PARTICIPANT AND IN WHICH THE DIRECTOR MIGHT HAVE A DISCLOSABLE CONFLICT OF INTEREST. ALL COMPLETED CONFLICT OF INTEREST DISCLOSURE STATEMENTS THAT RAISE AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, OR THAT CREATE THE APPEARANCE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST, WILL BE FORWARDED BY THE CHAIR OF THE AUDIT AND COMPLIANCE COMMITTEE TO THE AUDIT AND COMPLIANCE COMMITTEE FOR THEIR CONSIDERATION. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL CONDUCT A FULL REVIEW OF ALL MATTERS (E.G., CONTRACTS, TRANSACTIONS OR ARRANGEMENTS) FOR WHICH AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST OR THE APPEARANCE OF AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST HAS BEEN IDENTIFIED. IN SO DOING, THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL: A. CONSIDER ALL RELEVANT FACTS AND CIRCUMSTANCES INVOLVED IN THE MATTER, AND IN PARTICULAR, WHAT IS FAIR, REASONABLE AND IN THE BEST INTERESTS OF HEALTHIX; B. EXCLUDE THE AFFECTED INDIVIDUAL(S) FROM BEING PRESENT AT OR PARTICIPATING IN, OR BEING COUNTED IN THE QUORUM FOR, THE DELIBERATIONS OR VOTING ON THE MATTER; C. PROHIBIT THE AFFECTED INDIVIDUAL(S) FROM ANY ATTEMPT TO INFLUENCE IMPROPERLY THE DELIBERATIONS OR VOTING ON THE MATTER; D. PERMIT THE AFFECTED INDIVIDUAL(S), UPON REQUEST OF THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD, TO PRESENT INFORMATION CONCERNING THE MATTER AT A MEETING PRIOR TO COMMENCEMENT OF DELIBERATIONS OR VOTING ON THE MATTER. E. NOT PERMIT ANY DIRECTOR TO VOTE OR BE COUNTED IN DETERMINING THE QUORUM FOR ANY VOTE, ON ANY TRANSACTION BETWEEN HEALTHIX AND ANOTHER CORPORATION, FIRM, ASSOCIATION OR OTHER ENTITY IN WHICH THE DIRECTOR IS AN OFFICER OR DIRECTOR OR HAS A DIRECT OR INDIRECT SUBSTANTIAL FINANCIAL INTEREST. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL MAKE A FINAL AND BINDING DETERMINATION AS TO WHETHER A CONFLICT OF INTEREST EXISTS OR MAY EXIST ON ANY MATTER IN WHICH THERE IS A DISCLOSABLE CONFLICT OF INTEREST, AND WHAT COURSE HEALTHIX WILL TAKE IN CONNECTION WITH THE MATTER. THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD WILL CONTEMPORANEOUSLY DOCUMENT IN WRITING IN APPROPRIATE MINUTES OF ANY MEETING AT WHICH THE MATTER IS DELIBERATED OR VOTED UPON ALL DELIBERATIONS AND DETERMINATIONS RELATING THERETO, INCLUDING, AT A MINIMUM: 1. THE NAMES AND POSITIONS OF PERSONS WHO DISCLOSED THAT THEY WERE RELATED PARTIES OR OTHERWISE WERE FOUND TO BE RELATED PARTIES OR TO HAVE A CONFLICT OF INTEREST, A DESCRIPTION OF THE NATURE OF THE RELATIONSHIP AND/OR SUBSTANTIAL FINANCIAL INTEREST WHICH GAVE RISE TO SUCH DISCLOSURE OR IDENTIFICATION, AND A DESCRIPTION OF THE CONTRACT, TRANSACTION OR ARRANGEMENT AT ISSUE; 2. THE NAMES OF THE AUDIT AND COMPLIANCE COMMITTEE WHO WERE PRESENT DURING THE TAKING OF THE ACTION TO DETERMINE WHETHER A CONFLICT OF INTERESTS WAS PRESENT, AND THE BASIS FOR THERE BEING A QUORUM FOR THE TAKING OF SUCH ACTION WITHOUT INCLUDING ANY RELATED PARTIES OR AFFECTED PARTIES; 3. THE STEPS TAKEN BY THE AUDIT AND COMPLIANCE COMMITTEE MEMBERS OF THE BOARD TO DETERMINE WHETHER A CONFLICT OF INTEREST WAS PRESENT; 4. THE AUDIT AND COMPLIANCE COMMITTEE BOARD MEMBER'S DECISION AS TO WHETHER A CONFLICT OF INTERESTS WAS PRESENT AND THE BASIS FOR SUCH DECISION; 5. THE AUDIT AND COMPLIANCE COMMITTEE BOARD MEMBER'S DECISION AS TO WHETHER TO PROCEED WITH THE MATTERS (INCLUDING, BUT NOT NECESSARILY LIMITED TO, WHETHER THE MATTER IS AS FAIR AND REASONABLE TO HEALTHIX AS WOULD OTHERWISE THEN BE OBTAINABLE BY HEALTHIX) AND THE NAMES OF THE PERSONS WHO VOTED TO APPROVE THE MATTER. FORM 990, PART VI, SECTION B, LINE 15 FOR SALARY ADJUSTMENTS MADE IN 2019, THERE WAS NO CHANGE IN THE PROCESS FROM PREVIOUS YEARS. THE ORGANIZATION LAST USED A COMPENSATION CONSULTANT IN 2015, AND PLANS TO REFRESH THE COMPENSATION STUDY IN 2020. THE SAME PROCESS WAS USED IN 2019 AS IN 2018 FOR DETERMINING BONUSES--NO CHANGES. CEO COMP IS SET BY EMPLOYMENT AGREEMENT/OFFER LETTER TO CURRENT CEO, WHO TOOK OVER ON MAY 1, 2019 DUE TO RETIREMENT OF THE PREVIOUS CEO. GOALS WERE SET FOR ALL EMPLOYEES AT THE BEGINNING OF 2019, AND THEIR PERFORMANCE WAS MEASURED AGAINST GOALS AFTER 2019 CONCLUDED. BONUSES WHICH WERE ACCRUED AT 12/31/18 (BASED ON 2018 PERFORMANCE) WERE PAID IN 2019, AND THOSE WHICH WERE ACCRUED AT 12/31/19 (BASED ON 2019 PERFORMANCE) WERE PAID OUT IN 2020. THE INCENTIVE COMPENSATION (I.E. BONUS) PROGRAMS WERE APPROVED BY THE EXECUTIVE COMMITTEE FOR BOTH 2018 & 2019, AND WERE ALSO DISTRIBUTED TO ALL EMPLOYEES. THE BY-LAWS CREATE A COMMITTEE OF THE BOARD WITH FULL POWERS OF THE BOARD TO REVIEW AND APPROVE THE COMPENSATION OF OFFICERS AND OTHER KEY EMPLOYEES. THE COMMITTEE, WHICH IS HEALTHIX'S EXECUTIVE COMMITTEE, CONSISTS OF TRUSTEES WHO HAVE NO CONNECTION TO HEALTHIX EXCEPT AS TRUSTEES AND THEY HAVE NO CONFLICTS AS TO MATTERS THEY CONSIDER. THE COMMITTEE MEETS SEVERAL TIMES A YEAR AS NEEDED AND ALWAYS REVIEWS AND DETERMINES OFFICER AND KEY EMPLOYEE COMPENSATION. FOR PURPOSES OF THEIR REVIEW THE COMMITTEE CONSIDERS THE RECOMMENDATIONS OF THE CEO FOR ALL PERSONS OTHER THAN THE CEO. THIS PROCESS WAS LAST UNDERTAKEN IN 2019. THE BOARD'S APPROVAL FOR THE COMPENSATION OF OFFICERS AND OTHER KEY EMPLOYEES IS DOCUMENTED VIA EMAIL. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS FORM 990 AND FORM 1023 AVAILABLE FOR PUBLIC INSPECTION AS REQUIRED UNDER SECTION 6104 OF THE INTERNAL REVENUE CODE. IT IS POSTED ON GUIDESTAR.ORG AND OTHER SIMILAR TYPES OF WEBSITES. IN ADDITION, THE FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, ARTICLES OF INCORPORATION AND BY-LAWS ARE ALSO AVAILABLE UPON WRITTEN REQUEST OR BY CALLING THE ORGANIZATION DIRECTLY. FORM 990, PART XII, LINE 2C: THE ORGANIZATION'S AUDIT AND COMPLIANCE COMMITTEE ASSUMES RESPONSIBILITY FOR THE OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF ITS INDEPENDENT AUDITORS. THE POLICY FOR SELECTION AND OVERSIGHT OF THE INDEPENDENT AUDITORS HAS NOT CHANGED SINCE LAST YEAR.