2018-08-16T10:53:01-05:00 2017-09-30 990 2016-10-01 042995053 BERKSHIRE FACULTY SERVICES INC BERK 4134472508 725 NORTH STREET PITTSFIELD MA 012014109 DARLENE RODOWICZ CFO & TREASURER 4134472508 2018-08-16 2016 2022-09-23 18:48:47Z DARLENE RODOWICZ 725 NORTH STREET PITTSFIELD MA 012014109 41457895 0 X WWW.BERKSHIREHEALTHSYSTEMS.ORG X 1988 MA TO IMPROVE THE HEALTH OF ALL PEOPLE IN OUR COMMUNITY REGARDLESS OF THEIR ABILITY TO PAY. 2 0 271 0 0 -4119 0 0 34655398 41457022 10477 873 0 0 34665875 41457895 0 0 0 0 40115158 47906603 0 0 0 11971865 12412803 52087023 60319406 -17421148 -18861511 6297138 7378282 6297138 7378282 0 0 X THE MISSION OF BERKSHIRE FACULTY SERVICES IS TO IMPROVE THE HEALTH OF THE PEOPLE OF THE BERKSHIRES AND SURROUNDING COMMUNITIES BY PROVIDING MEDICAL EDUCATION AND MEDICAL SERVICES IN SUPPORT OF BERKSHIRE MEDICAL CENTER AND FAIRVIEW HOSPITAL. 0 0 54573852 41457022 PROVIDING MEDICAL EDUCATION AND MEDICAL SERVICES THROUGH DULYQUALIFIED AND LICENSED PHYSICIANS, NURSES, AND SUPPORT PERSONNELFOR THE BENEFIT OF BERKSHIRE MEDICAL CENTER, INC. AND AFFILIATEDORGANIZATIONS. BERKSHIRE FACULTY SERVICES EMPLOYS FACULTYMEMBERS OF THE UNIVERSITY OF MASSACHUSETTS MEDICAL SCHOOL ANDBERKSHIRE MEDICAL CENTER TO PROVIDE MEDICAL CARE TO PATIENTS ATBERKSHIRE MEDICAL CENTER; SUCH PATIENT CARE IS AN INTEGRAL PART OFTHE CLINICAL INSTRUCTION PROVIDED FOR MEDICAL STUDENTS ANDRESIDENTS. BMC PROVIDES SUCH CLINICAL INSTRUCTION AS A NECESSARYPART OF THE EDUCATIONAL PROCESS FOR UNIVERSITY OF MASSACHUSETTSMEDICAL SCHOOL MEDICAL STUDENTS AND ACCEPTED PARTICIPANTS INBERKSHIRE MEDICAL CENTER'S RESIDENCY PROGRAM. IN CONNECTION WITHTHE PATIENT CARE IT PROVIDES, BERKSHIRE FACULTY SERVICES BILLS THEPATIENTS OR THIRD-PARTY PAYORS, PAYS ITS EMPLOYEES SALARIES ANDOTHER OPERATING EXPENSES, AND TO THE EXTENT POSSIBLE, PROVIDESCONTRIBUTIONS TO BERKSHIRE MEDICAL CENTER IN SUPPORT OF ITSEDUCATIONAL AND RESEARCH MISSIONS. 54573852 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 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 1 0 0 0 1 44 0 271 0 1 1 0 0 0 0 0 0 0 X 2 0 0 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MA X X DARLENE RODOWICZ 4134472809 725 NORTH STREET PITTSFIELD MA 01201 DAVID E PHELPS PRESIDENT 7.60 41.40 X X 0 752393 45766 DAVID E PHELPS ANNUAL LIFE INSURANCE 1.00 X X 0 107692 0 DARLENE RODOWICZ TREASURER 7.00 43.00 X X 0 533290 43964 CHERYL M BOUDREAU CLERK 8.00 32.00 X 0 105754 16899 ANDREW DEMAGGIO PHYSICIAN 50.00 X 721116 0 36035 ANDREW LEDERMAN PHYSICIAN 50.00 X 644649 0 41694 STEVEN WILL PHYSICIAN 50.00 X 631705 0 44647 JOSEPH EMRICH PHYSICIAN 50.00 X 602202 0 2550 RANGAN MURALI PHYSICIAN 50.00 X 547897 0 46473 3147569 1499129 278028 115 0 1 0 MCKESSON SPECIALTY CARE 15212 COLLECTIONS CENTER DRIVE CHICAGO IL 60693 MEDICAL SUPPLIES 689554 HENRY SCHEIN INC PO BOX 371952 PITTSBURGH PA 152507952 MEDICAL SUPPLIES 277983 BERKSHIRE MEDICAL MANAGMENT SERVICES PO BOX 594 PITTSFIELD MA 01202 MGT SERVICES 224120 HTA NORTHERN BERKHSIRE LLC PO BOX 823612 PHILADELPHIA MA 191823612 PROPERTY LEASING 193477 CURASCRIPT DISTRIBUTION PO BOX 978510 DALLAS TX 753978510 MEDICAL SUPPLIES 171566 9 NET PATIENT SVC REV. 621110 38441416 38441416 MEDICAL SVCS REV. 621110 2255377 2255377 TEACHING & ADMIN REV. 611600 760229 760229 41457022 873 873 41457895 41457022 0 873 41479971 41479971 1317303 1317303 2902209 2902209 2207120 2207120 5745554 5745554 916384 916384 3968 3968 1468230 1468230 28304 28304 914823 914823 23952 23952 -56172 -56172 1911016 1911016 CONTINUING MED EDUCATIO 591919 591919 INTERCOMPANY SALARY AND 267379 267379 TRANSCRIPTION 157917 157917 CLEANING 70011 70011 369518 369518 60319406 54573852 5745554 0 10748 9226 2465133 2925152 91556 58391 25601 20235 3704100 4365278 6297138 7378282 3927425 4184676 2369713 3193606 6297138 7378282 X 0 0 6297138 7378282 X -18861511 18861511 X X 0 1 X 1 0 X X 2 BERKSHIRE MEDICAL CENTER INC 042791396 3 1 0 0 FAIRVIEW HOSPITAL 042133860 3 1 0 0 2 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SCHEDULE A, SECTION C, LINE 1 BERKSHIRE FACULTY SERVICES INC. HAS TWO DIRECTORS. DAVE PHELPS IS A DIRECTOR FOR BERKSHIRE FACULTY SERVICES, INC. AS WELL AS BERKSHIRE MEDICAL CENTER, INC. AND FAIRVIEW HOSPITAL. 0 DEFERRED COMPENSATION 457B 3175164 DUE FROM AFFILIATES 1190114 4365278 DEFERRED COMPENSATION 3175164 DEFERRED REVENUE 18442 3193606 X PART X, LINE 2: THE FINANCIAL ACTIVITIES OF BERKSHIRE FACULTY SERVICES, INC. ARE INCLUDED WITHIN THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS OF BERKSHIRE HEALTH SYSTEMS, INC. AND AFFILIATES FOR THE YEARS ENDED SEPTEMBER 30, 2017 AND 2016. THOSE FINANCIALS INCLUDE THE FOLLOWING FIN-48 FOOTNOTE: "THE INCOME TAX CONSEQUENCES, IF ANY, FROM BHS AND ITS AFFILIATES ARE REFLECTED IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE HEALTH SYSTEM IS REQUIRED TO ASSESS UNCERTAIN TAX POSITIONS AND HAS DETERMINED THAT THERE ARE NO SUCH POSITIONS, INDIVIDUALLY OR IN THE AGGREGATE, THAT ARE MATERIAL TO THE FINANCIAL STATEMENTS." 0 0 0 0 0 0 0 0 0 DAVID E PHELPS PRESIDENT 0 712414 0 0 0 39979 0 11925 0 33841 0 798159 0 0 DAVID E PHELPS ANNUAL LIFE INSURANCE 0 0 0 0 0 107692 0 0 0 0 0 107692 0 0 DARLENE RODOWICZ TREASURER 0 466640 0 0 0 66650 0 11925 0 32039 0 577254 0 0 ANDREW DEMAGGIO PHYSICIAN 498541 0 219551 0 3024 0 11925 0 24110 0 757151 0 0 0 ANDREW LEDERMAN PHYSICIAN 385775 0 257023 0 1851 0 11274 0 30420 0 686343 0 0 0 STEVEN WILL PHYSICIAN 618489 0 10459 0 2757 0 11925 0 32722 0 676352 0 0 0 JOSEPH EMRICH PHYSICIAN 595579 0 0 0 6623 0 0 0 2550 0 604752 0 0 0 RANGAN MURALI PHYSICIAN 493580 0 51872 0 2445 0 11925 0 34548 0 594370 0 0 0 SCHEDULE J, PART II IN REFERENCE TO FORM 990, PART VII AND SCHEDULE J PART II, NO COMPENSATION IS PAID BY THE FILING ENTITY TO ANY DIRECTOR (TRUSTEE) FOR HIS OR HER ROLE AS DIRECTOR (TRUSTEE). THE OFFICERS OF THE FILING ENTITY ARE COMPENSATED FOR THEIR ROLES AS OFFICERS. A PORTION OF THE COMPENSATION AMOUNT PAID TO OFFICERS OF THE FILING ENTITY IS ALLOCATED INTERNALLY AMONG THE FILING ENTITY AND ITS 23 ASSOCIATED NON-PROFIT, TAX-EXEMPT ENTITIES IN ORDER TO PROPERLY REFLECT THE DIVISION OF THE OFFICERS' TIME AND EFFORT AMONG THOSE VARIOUS ENTITIES AND EACH ENTITY'S RELATIVE CONTRIBUTION TO THE OFFICERS' TOTAL COMPENSATION (SEE BELOW). COMPENSATION OF THE CHIEF EXECUTIVE OFFICER, DAVID PHELPS, IS REVIEWED AND ESTABLISHED AT LEAST BIANNUALLY BY THE INDEPENDENT VOLUNTEER GOVERNING BODY OF BERKSHIRE HEALTH SYSTEMS, INC. (PARENT ORGANIZATION OF THE FILING ENTITY), BASED ON PERFORMANCE REVIEWS AND COMPARISON TO INDEPENDENTLY ESTABLISHED, REGIONALLY APPROPRIATE BENCHMARKS FOR SIMILAR POSITIONS IN SIMILARLY SIZED HEALTHCARE ORGANIZATIONS, AS VERIFIED BY INDEPENDENT, NATIONALLY RECOGNIZED COMPENSATION CONSULTANTS. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS SET IN ACCORDANCE WITH GOVERNING-BODY ESTABLISHED PRINCIPLES BASED ON COMPARABLE BENCHMARK IDENTIFIED BY SUCH INDEPENDENT CONSULTANTS. IN THE REPORTING YEAR, THE GOVERNING BODY TARGETED TOTAL COMPENSATION FOR MANAGEMENT EMPLOYEES AT THE 60TH PERCENTILE OF APPROPRIATE BENCHMARKS (OTHER THAN THE CHIEF EXECUTIVE OFFICER WHOSE TOTAL COMPENSATION REMAINS TARGETED AT THE 50TH PERCENTILE). FOR MOST OF MR. PHELPS' 20+-YEAR TENURE AS CHIEF EXECUTIVE OFFICER, A WRITTEN AGREEMENT BETWEEN BERKSHIRE HEALTH SYSTEMS AND MR. PHELPS HAS CALLED FOR BERKSHIRE HEALTH SYSTEMS (AND ITS AFFILIATES) TO FUND A RETIREMENT PROGRAM THAT, WHEN ADDED TO HIS BASE COMPENSATION AND OTHER ROUTINE BENEFITS, WAS INTENDED TO BRING MR. PHELPS' TOTAL COMPENSATION CLOSE TO THE 50TH PERCENTILE RANGE OF TOTAL COMPENSATION FOR COMPARABLE EXECUTIVES IN COMPARABLE HEALTHCARE ORGANIZATIONS, AS DETERMINED BY INDEPENDENT, NATIONALLY RECOGNIZED COMPENSATION REVIEWERS. MR. PHELPS' TOTAL COMPENSATION INCLUDES THE COST OF A LIFE INSURANCE POLICY AS WELL AS CERTAIN OTHER TAXABLE BENEFITS THAT ARE GENERALLY AVAILABLE TO EMPLOYEES OF THE REPORTING ENTITY AND ITS RELATED ORGANIZATIONS. MR. PHELPS' BASE COMPENSATION AND LIFE INSURANCE (AND OTHER TAXABLE BENEFITS) ARE REPORTED SEPARATELY ON SCHEDULE J, PART II, COLUMNS (B) (I) AND B (II) RESPECTIVELY AND FORM 990, PART VII COLUMN (E). MR. PHELPS' CASH COMPENSATION AND BENEFITS ARE ALLOCATED AMONG THE 24 RELATED ENTITIES FOR WHICH MR. PHELPS IS RESPONSIBLE. THE FOLLOWING LIST SHOWS THE ENTITIES TO WHICH THE IDENTIFIED OFFICER PROVIDED SERVICES, THE AVERAGE WEEKLY HOURS ALLOCATED TO EACH ENTITY, AND THE RESPECTIVE ALLOCABLE SHARE OF HIS OR HER ANNUAL COMPENSATION (REPORTABLE COMPENSATION AND OTHER COMPENSATION) FOR CALENDAR 2016: DAVID E. PHELPS, PRESIDENT (EXCLUSIVE OF $107,692 LIFE INSURANCE): BERKSHIRE MEDICAL CENTER, INC. 26 HOURS/50 TOTAL HOURS $391,244 BERKSHIRE FACULTY SERVICES, INC. 8.75/50 HOURS $131,669 FAIRVIEW HOSPITAL 3.5/50 HOURS $52,667 BERKSHIRE INDEMNITY COMPANY, SPC, LTD. 1.75/50 HOURS $26,334 BHS MANAGEMENT SERVICES, INC. 10/50 HOURS FOR THE BENEFIT OF: BOURNE MANAGEMENT SYSTEMS, INC. $ 10,684 GREENFIELD MANAGEMENT SYSTEMS, INC. $ 9,932 NEW BEDFORD MANAGEMENT SYSTEMS, INC. $ 11,286 NORTHAMPTON MANAGEMENT SYSTEMS, INC. $ 11,888 EAST LONGMEADOW MANAGEMENT SYSTEMS, INC. $ 5,568 DANVERS MANAGEMENT SYSTEMS, INC. $ 5,267 PEABODY MANAGEMENT SYSTEMS, INC. $ 9,480 SOUTH YARMOUTH MANAGEMENT SYSTEMS, INC. $ 6,019 WILLOWOOD OF GREAT BARRINGTON, INC. $ 8,276 WILLOWOOD OF NORTH ADAMS, INC. $ 9,480 WILLOWOOD OF WILLIAMSTOWN, INC. $ 11,888 HILLCREST EXTENDED CARE SERVICES, INC. $ 21,970 BERKSHIRE RETIREMENT COMMUNITY, INC. $ 3,611 BERKSHIRE EXTENDED CARE SERVICES, INC. $ 1,655 INTEGRINURSE, INC. $ 1,505 INTEGRISCRIPT, INC. $ 3,762 HOSPICECARE IN THE BERKSHIRES, INC. $ 5,718 HOSPICE OF FRANKLIN COUNTY, INC. $ 2,107 PITTSFIELD MANAGEMENT SYSTEMS, INC. $ 10,383 DARLENE RODOWICZ: BERKSHIRE MEDICAL CENTER, INC. 37 HOURS/50 TOTAL HOURS $394,635 BERKSHIRE FACULTY SERVICES, INC. 7/50 HOURS $74,661 FAIRVIEW HOSPITAL 3/50 HOURS $31,997 BERKSHIRE INDEMNITY COMPANY, SPC, LTD. 2.5/50 HOURS $26,664 BHS MANAGEMENT SERVICES, INC. 0.5/50 HOURS FOR THE BENEFIT OF: BERKSHIRE HEALTHCARE SYSTEMS, INC. $5,333 FORM 990, PART VI, SECTION A, LINE 3 BERKSHIRE FACULTY SERVICES RELIES ON BHS MANAGMENT SERVICES, INC. TO PROVIDE MANAGEMENT AND SUPPORT SERVICES FOR THE CHIEF EXECUTIVE OFFICER, CHIEF FINANCIAL OFFICER, VP GENERAL COUNSEL, VP OF HUMAN RESOURCES, AND VP OF PHYSICIAN SERVICES. FORM 990, PART VI, SECTION A, LINE 6 BHS MANAGMENT SERVICES, INC. IS THE SOLE CORPORATE MEMBER OF BERKSHIRE FACULTY SERVICES. FORM 990, PART VI, SECTION A, LINE 7A THE BOARD OF TRUSTEES IS ELECTED BY THE MEMBERS OF THE BOARD OF TRUSTEES OF BERKSHIRE HEALTH SYSTEMS, INC. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS OF THE BFS BOARD ARE SUBJECT TO REVIEW BY THE BOARD OF BHS, INC. FORM 990, PART VI, SECTION B, LINE 11B BERKSHIRE HEALTH SYSTEMS ("BHS") WILL MAKE THE FORMS 990 FOR BHS AND AFFILIATES AVAILABLE TO THE MEMBERS OF THE RESPECTIVE GOVERNING BODIES FOR THEIR REVIEW BY (A) SENDING COPIES TO THEM PHYSICALLY OR ELECTRONICALLY, OR (B) NOTIFYING THE MEMBERS THAT THE FORMS 990 CAN BE ACCESSED BY A SECURE WEB-BASED FOLDER BEFORE THEY ARE FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION ENFORCES AND MONITORS ITS CONFLICT OF INTEREST POLICY BY REQUIRING ALL MEMBERS OF THE GOVERNING BODY AS WELL AS ALL OFFICERS, KEY EMPLOYEES AND HIGHEST COMPENSATED EMPLOYEES TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST (A) ANNUALLY AND (B) AS POTENTIAL CONFLICTS ARISE. THE EXECUTIVE COMMITTEE OF THE GOVERNING BOARD IS NOT PERMITTED TO HAVE MATERIAL CONFLICTS OF INTEREST AND MEMBERS OF THE GOVERNING BODY ARE TO ABSTAIN FROM ACTION THAT MAY BE INFLUENCED BY THEIR CONFLICT OR POTENTIAL CONFLICT BY (A) NOT VOTING, OR (B) NOT VOTING AND LEAVING THE ROOM, OR (C) LEAVING THE GOVERNING BODY, AS DETERMINED BY THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE CHIEF EXECUTIVE OFFICER IS REVIEWED AND ESTABLISHED AT LEAST BIANNUALLY BY THE INDEPENDENT, VOLUNTEER BHS GOVERNING BODY, BASED ON PERFORMANCE REVIEWS AND COMPARISON TO INDEPENDENTLY ESTABLISHED, REGIONALLY APPROPRIATE BENCHMARKS FOR SIMILAR POSITIONS IN SIMILARLY SIZED HEALTHCARE ORGANIZATIONS, AS VERIFIED BY INDEPENDENT, NATIONALLY RECOGNIZED COMPENSATION CONSULTANTS. COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS SET IN ACCORDANCE WITH GOVERNING BODY-ESTABLISHED PRINCIPLES BASED ON COMPARABLE BENCHMARK IDENTIFIED BY SUCH INDEPENDENT CONSULTANTS. IN THE REPORTING YEAR, THE GOVERNING BODY TARGETED TOTAL COMPENSATION FOR MANAGEMENT EMPLOYEES AT THE 60TH PERCENTILE OF APPROPRIATE BENCHMARKS. THE ORGANIZATION FOLLOWED THIS PROCESS FOR TAX YEAR BEING REPORTED. FORM 990, PART VI, SECTION C, LINE 19 GOVERNANCE DOCUMENTS, THE CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC AT THE OFFICES OF (A) THE CHIEF FINANCIAL OFFICER, AND (B) THE VICE PRESIDENT AND GENERAL COUNSEL AT 725 NORTH STREET, PITTSFIELD, MA 01201. FORM 990, PART XI, LINE 9: EQUITY TRANSFER 18,861,511. FORM 990, PART XII, LINE 2C THE PROCESS USED BY THE AUDIT COMMITTEE FOR THE OVERSIGHT OF THE AUDIT OF FINANCIAL STATEMENTS HAS NOT CHANGED COMPARED TO THE PRIOR YEAR. FORM 990, PART I, LINE 2 BERKSHIRE FACULTY SERVICES (BFS) IS PART OF AN INTEGRATED DELIVERY SYSTEM INCLUDING NOT FOR PROFIT COMMUNITY HOSPITALS, WHICH HAVE COMMUNITY BOARDS. BFS IS A PHYSICIAN SERVICES SUPPORTING ORGANIZATION, WHICH SUPPORTS BERKSHIRE HEALTH SYSTEMS AND ITS AFFILIATES. THE BFS BOARD IS COMPRISED OF EMPLOYEES OF BERKSHIRE HEALTH SYSTEMS MANAGEMENT SERVICES, INC. (BHSMS) WHO ARE ALSO THE OFFICERS OF BERKSHIRE FACULTY SERVICES, INC. AND WHO HOLD THE SAME OFFICE ON THE BOARD OF BERKSHIRE MEDICAL CENTER INC. THIS BOARD STRUCTURE HAS NOT CHANGED SIGNIFICANTLY SINCE THE ORGANIZATION APPLIED FOR EXEMPT STATUS. BERKSHIRE HEALTH SYSTEMS INC 725 NORTH STREET PITTSFIELD MA 01201 042442944 PARENT CORPORATION MA 501 (C) (3) 11B-II N/A 0 BERKSHIRE MEDICAL CENTER INC 725 NORTH STREET PITTSFIELD MA 01201 042791396 ACUTE CARE HOSPITAL MA 501 (C) (3) 3 N/A 0 FAIRVIEW HOSPITAL 725 NORTH STREET PITTSFIELD MA 01201 042133860 ACUTE CARE HOSPITAL MA 501 (C) (3) 3 N/A 0 BHS MANAGEMENT SERVICES INC 725 NORTH STREET PITTSFIELD MA 01201 222755258 MANAGEMENT SERVICES MA 501 (C) (3) 11B-II N/A 0 TRI-STATE MEDICAL MANAGEMENT CORP 725 NORTH STREET PITTSFIELD MA 01201 040913352 REAL ESTATE MANAGEMENT MA FAIRVIEW HOSPITAL C 0 WILLIAMSTOWN MEDICAL ASSOCIATES PC 197 ADAMS ROAD WILLIAMSTOWN MA 01267 042680535 HEALTHCARE SERVICES MA N/A C 0 BERKSHIRE ORTHOPAEDIC ASSOCIATES PC 24 PARK STREET PITTSFIELD MA 01201 043017240 HEALTHCARE SERVICES MA N/A C 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 0