2015-03-16T20:08:11-05:00 2014-04-30 330700332 VASQUEZ & COMPANY LLP 801 S GRAND AVE SUITE 400 LOS ANGELES CA 90017 990 2013-05-01 952810095 ALTAMED HEALTH SERVICES CORPORATION ALTA 3237258751 2040 CAMFIELD AVENUE LOS ANGELES CA 90040 JOSE ESPARZA SR VP OF FINANCE AND CFO 3237258751 2015-03-12 1 GILBERT R VASQUEZ P00743144 2138731700 2013 2016-03-07 17:11:31Z JOSE ESPARZA 2040 CAMFIELD AVENUE LOS ANGELES CA 90040 379972480 0 X HTTP://WWW.ALTAMED.ORG X 1970 CA SEE SCHEDULE O : TO ELIMINATE DISPARITIES IN HEALTH CARE ACCESS AND OUTCOMES BY PROVIDING SUPERIOR QUALITY HEALTH AND HUMAN SERVICES THROUGH AN INTEGRATED WORLD-CLASS DELIVERY SYSTEM FOR LATINO , MULTI-ETHNIC AND UNDERSERVED COMUNITIES IN SOUTHERN CALIFORNIA.VISION: TO BE THE LEADING COMMUNITY-BASED PROVIDER OF QUALITY HEALTH CARE AND HUMAN SERVICES 11 11 2195 0 0 0 1822468 2932991 265546200 355466604 1488952 1833561 -2507260 130470 266350360 360363626 0 0 0 0 114029471 132448519 0 0 1136702 138666131 162254704 252695602 294703223 13654758 65660403 163689226 248721208 61337222 78552679 102352004 170168529 X TO ELIMINATE DISPARITIES IN HEALTH CARE ACCESS AND OUTCOMES BY PROVIDING SUPERIOR QUALITY HEALTH AND HUMAN SERVICES THROUGH AN INTEGRATED WORLD-CLASS DELIVERY SYSTEM FOR LATINO, MULTI-ETHNIC AND UNDERSERVED COMMUNITIES IN SOUTHERN CALIFORNIA. 0 0 188983561 202781153 PRIMARY HEALTHCARE AND DENTAL CARE. ALTAMED OPERATES A TOTAL OF 25 PRIMARY CARE CLINICS IN THE GREATER LOS ANGELES AREA WITH 16 CLINICS IN LOS ANGELES COUNTY AND 9 CLINICS IN ORANGE COUNTY SERVING OVER 150,000 PATIENTS PER YEAR. ALTAMED ALSO OPERATES 7 DENTAL CLINICS AND 4 PORTABLE DENTAL UNITS SERVING OVER 55,000 ADULTS AND CHILDREN ANNUALLY. PROVIDING INTEGRATED SERVICES ALONG A CONTINUUM OF CARE FROM PERINATAL SERVICES ANNUALLY, PEDIATRIC AND ADOLESCENT CARE AND SPECIALTY CARE INCLUDING WOMEN'S HEALTH AND GERIATRIC MEDICINE AND HEALTH FOR THE FRAIL AND NON-FRAIL ELDERLY, ALTAMED DELIVERS COMPREHENSIVE CARE TO THE WHOLE FAMILY. ALONG WITH ITS PREVENTIVE AND PRIMARY CARE SERVICES, ALTAMED SPECIALIZES IN SERVICES THAT INCLUDE A PEDIATRIC AND ADOLESCENT OBESITY PROGRAM AND A CHRONIC DISEASE MANAGEMENT PROGRAM. OTHER SERVICES INCLUDE LABORATORY TESTING, RADIOLOGIC SCREENING AND PHARMACY SERVICES, INCLUDING MEDICATION MANAGEMENT AND RECONCILIATION. HEALTH SERVICES ARE ALSO SUPPORTED BY A COMMUNITY OUTREACH AND HEALTH EDUCATION TEAM PROMOTING HEALTHY BEHAVIORS AND ADVANCING THE OVERALL HEALTH AND WELL-BEING AMONG THOSE LIVING IN MEDICALLY-UNDERSERVED COMMUNITIES. 92885806 144536017 LONG TERM CARE. EACH YEAR , OVER 3,500 FRAIL AND ELDERLY SENIORS AND DISABLED ADULTS ARE SUPPORTED BY A MENU OF SERVICES THROUGH ALTAMED'S 6 PROGRAM OF ALL-INCLUSIVE CARE FOR THE ELDERLY (PACE) SITES. SERVICES INCLUDE PRIMARY CARE/GERIATRIC MEDICINE NURSING CARE, REHABILITATION THERAPY, FAMILY SUPPORT INTERVENTIONS, COUNSELING, MEDICATION MANAGEMENT , NUTRITION EDUCATION AND SOCIAL ACTIVITIES. ALTAMED ALSO PROVIDES SPECIALIZED IN-HOME SUPPORTIVE PROGRAMS AND SERVICES THAT ENHANCE THE LIVES OF NEARLY 4,500 SENIORS LIVING INDEPENDENTLY IN THE COMMUNITY OR WHO ARE AT-RISK OF INSTITUTIONALIZED CARE. 7416583 6094913 HIV SERVICES. ALTAMED OPERATES 4 HIV PRIMARY CARE CLINICS IN LOS ANGELES COUNTY AND 1 IN ORANGE COUNTY. PROVIDING HIV PREVENTION AND CARE SERVICES IN URBAN LATINO COMMUNITIES, ALTAMED MAINTAINS A DIVERSE MENU OF HIV/AIDS SERVICES THAT SERVE MORE THAN 1,300 HIV-POSITIVE PATIENTS EACH YEAR AND INCLUDES: MEDICAL OUTPATIENT SERVICES , CASE MANAGEMENT , PREVENTION CASE MANAGEMENT , FAMILY CASE MANAGEMENT , COUNSELING AND TESTING , AIDS DRUG ASSISTANCE PROGRAM ENROLLMENT, HIV TREATMENT , EDUCATION AND ADVOCACY , MENTAL HEALTH SUPPORT AND HEALTH EDUCATION/RISK REDUCTION SERVICES. 4217611 2875940 (I) YOUTH SERVICES. ALTAMED PROVIDES AN ARRAY OF YOUTH SERVICES TO OVER 1,500 AT-RISK TEENS AND YOUNG ADULTS IN MEDICALLY-UNDERSERVED COMMUNITIES EACH YEAR. SERVICES INCLUDE: PREGNANCY AND STD PREVENTION PROGRAMS, LEADERSHIP DEVELOPMENT , HEALTH EDUCATION AND INFORMATION WORKSHOPS , LINKAGES TO CLINICAL SERVICES, CASE MANAGEMENT FOR PREGNANT/PARENTING TEENS ; PARENTING EDUCATION; FAMILY PLANNING ; SUPPORT FOR PARENTING TEENS TO HELP THEM STAY IN SCHOOL ; AND LIFE-SKILLS DEVELOPMENT; (II)DRUG TREATMENT. OVER 300 PATIENTS EACH YEAR ARE TREATED THROUGH ALTAMED'S OUTPATIENT METHADONE CLINIC AND RECEIVE DETOXIFICATION, COUNSELING, AND CASE MANAGEMENT TO TREAT HEROIN ADDICTION. 4217611 2875940 293503561 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 0 0 0 0 1 0 0 0 0 1 1 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 1 0 0 0 1 1944 0 1 2195 1 0 0 0 0 0 1 1 0 0 0 0 X 11 11 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X X JOSE ESPARZA SR VP OF FINANCE AND CFO 3237258751 2040 CAMFIELD AVENUE LOS ANGELES CA 90040 FERNANDO DE NECOCHEA BOARD MEMBER 1.20 X 0 0 0 MARTIN GALLEGOS CHAIRPERSON ELECT 1.60 X X 0 0 0 MARIA GRIMALDO CONSUMER BOARD MEMBER 1.20 X 0 0 0 AYALA ALICIA CONSUMER BOARD MEMBER, LONG-TERM CARE 1.60 X 0 0 0 DON NAKANISHI PHD SECRETARY 1.60 X X 0 0 0 GLORIA CARRILLO ZAMORA CONSUMER BOARD MEMBER 1.20 X 0 0 0 SHIRLEY DETTLOFF VICE CHAIRPERSON 1.60 X 0 0 0 JANICE FAUCHIER TREASURER 1.60 X X 0 0 0 LILIANA RAMIREZ CONSUMER BOARD MEMBER 1.20 X 0 0 0 FRANK MEZA MD BOARD CHAIRMAN 1.60 X X 0 0 0 GREGORY VALENZUELA DISABLED CONSUMER BOARD MEMBER 1.20 X 0 0 0 CASTULO DELA ROCHA JD PRESIDENT/CEO 40.00 X 844541 0 238025 JOSE U ESPARZA SR. VP OF FINANCE & CFO 40.00 X 359436 0 11799 MARIE TORRES SR. VP OF GOVERNMENT RELAT 40.00 X 319958 0 10251 ZOILA ESCOBAR VP STRATEGIC DEVELOPMENT & 40.00 X 264327 0 10093 ROBERT TURNER VP HUMAN RESOURCES 40.00 X 294436 0 9230 MARTIN SEROTA MD CHIEF MEDICAL OFFICER 40.00 X 484290 0 15289 JACOB FURGATCH SVP MANAGED CARE & PRES. ALTAMED HEALTH 40.00 X 429275 0 1647 ANGELA ROBERTS VP OF FACILITY DEVELOPMENT 40.00 X 296256 0 11810 JENNIFER SPALDING VP OF SENIOR CARE OPERATION 40.00 X 246874 0 8947 MARTHA SANTANA CHIN V.P. PROVIDER NETWORK OPER 40.00 X 226333 0 10241 ERIKA SOCKACI V.P. OF HEALTH SERVICES AD 40.00 X 226517 0 9031 EILEEN MOSCARITOLO VP ENTERPRISE SERVICES 40.00 X 286175 0 0 DESMOND K LEW MEDICAL DIRECTOR 40.00 X 291047 0 7804 FELIX CARPIO MD MEDICAL DIRECTOR INFORMATI 40.00 X 296345 0 11854 RICO CRISTIAN REGIONAL MEDICAL DIRECTOR 40.00 X 294966 0 11779 ESIQUIO CASILLAS REGIONAL MEDICAL DIR SENIOR CARE SERVICES 40.00 X 277149 0 9123 5437925 0 376923 198 0 1 0 CHILDRENS HOSPITAL LA MEDICAL GROUP 640 SUNSET BLVD STE 600 LOS ANGELES CA 90028 MEDICAL GROUP 8228217 WHITE MEMORIAL MEDICAL CENTER PO BOX 842176 LOS ANGELES CA 90084 MEDICAL GROUP 7532265 TOTAL CORPORATE SOLUTIONS 20335 SOUTH WESTERN AVE TORRANCE CA 90501 OFFICE/FACILITY SUPPLIER 3441049 MARQUIS CONSTRUCTION INC 601 S FIGUEROA ST STE 1600 LOS ANGELES CA 90017 CONSTRUCTION SERVICES 2472451 QUEST DIAGNOSTICS FILE NO 50368 LOS ANGELES CA 90074 LABORATORY SERVICES 1711534 47 938414 1994577 113380 2932991 MANAGED CARE SERVICES 624100 179661968 179661968 PATIENT FEES 624100 153497033 153497033 CONTRACTUAL SERVICES 624100 22307603 22307603 355466604 1833561 1833561 264580 938414 945746 -681166 -681166 17210527 18663108 -1452581 -1452581 OTHER CONTRACT SERVICES 624100 1297714 1297714 REFUND/REIMBURSEMENT/DEPOSIT 900099 589628 589628 REALIZED GAIN ON INVESTMENT 900099 493800 493800 -116925 -116925 2264217 360363626 356278240 0 1152395 5437925 5437925 102784056 102681447 102609 16621935 16606175 15760 7604603 7597393 7210 2226985 2226339 646 8251424 8251424 698457 698457 7640272 7640272 2354583 2354416 167 SPECIALTY SERVICES 66394936 66394936 MEDICAL SERVICES 32385667 32380084 5583 ADMINISTRATIVE SERVICES 10699620 10601150 98470 MEDICAL SUPPLIES 6755257 6755040 217 24847503 23878503 62960 906040 294703223 293503561 62960 1136702 33907067 46151591 4205738 4325086 24989413 39112477 7451738 11726782 8074943 8191747 254270 537703 1479781 2103620 108967906 39423557 54606141 69544349 22787835 59650848 2420998 3215390 3511302 4161615 163689226 248721208 16961531 27032327 8992149 8557059 3109719 3744823 32273823 39218470 61337222 78552679 X 99928494 167592063 2423510 2576466 102352004 170168529 163689226 248721208 X 65660403 1700017 456105 X 0 1 X 1 1 1 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1 1 0 1 1141 0 0 1 36862 1 34598 1 385834 458435 0 PART II-B, LINE 1: AMOUNTS WERE PAID TO LEGISLATIVE CONSULTANTS FOR LOBBYING ACTIVITIES. 8631587 8631587 38857200 8570166 30287034 28307443 6870173 21437270 33171676 23983218 9188458 0 69544349 ACCRUED VACATION 6125981 CLAIMS PAYABLE 18115034 ACCRUED SALARIES AND EMPLOYEE BENEFITS 6548270 GRANT AND CONTRACT ADVANCES 2059670 CURRENT PORTION OF LONG TERM DEBT 1117918 CURRENT PORTION OF FACILITY LEASE PAYABLE 251597 BANK REVOLVING LINE OF CREDIT 5000000 39218470 X 381182856 1700017 19119213 20819230 360363626 0 360363626 313366331 18663108 18663108 294703223 0 294703223 PART X, LINE 2: THE CORPORATION QUALIFIES AS A TAX EXEMPT ORGANIZATION UNDER THE INTERNAL REVENUE CODE SECTION 501(C)(3) AND CALIFORNIA REVENUE AND TAXATION CODE 23701D. THE CORPORATION HAS EVALUATED ITS TAX POSITIONS AND THE CERTAINTY AS TO WHETHER THOSE POSITIONS WILL BE SUSTAINED IN THE EVENT OF AN AUDIT BY TAXING AUTHORITIES AT THE FEDERAL AND STATE LEVELS. THE PRIMARY TAX POSITIONS EVALUATED RELATE TO THE CORPORATION CONTINUED QUALIFICATION AS A TAX-EXEMPT ORGANIZATION AND WHETHER THERE ARE UNRELATED BUSINESS INCOME ACTIVITIES THAT WOULD BE TAXABLE. MANAGEMENT HAS DETERMINED THAT ALL INCOME TAX POSITIONS WILL MORE LIKELY THAN NOT (>50%) BE SUSTAINED UPON POTENTIAL AUDIT OR EXAMINATION; THEREFORE, NO DISCLOSURE OF UNCERTAIN INCOME TAX POSITIONS ARE REQUIRED. THE CORPORATION FILES INFORMATION RETURNS IN THE US FEDERAL JURISDICTION AND THE STATE OF CALIFORNIA. WITH FEW EXCEPTIONS, THE CORPORATION IS NO LONGER SUBJECT TO U.S. FEDERAL AND STATE EXAMINATIONS BY TAX AUTHORITIES FOR YEARS BEFORE 2009. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP 456,105. COST OF GOOD SOLD-PHARMACY 18,663,108. PART XII, LINE 2D - OTHER ADJUSTMENTS: PHARMACY COST 18,663,108. X X X X X X ANNUAL GALA 520981 452781 68200 14772 7502 249725 44918 EAST LA MEETS NAPA 294579 137079 157500 112890 2313 87562 61528 4 387434 348554 38880 38691 2124 209534 114187 1202994 938414 264580 166353 11939 546821 220633 945746 -681166 X X 1 1 X X X X X X 0 1 0 0 0 0 0 1 0 CASTULO DELA ROCHA JD PRESIDENT/CEO 599276 0 183344 0 61921 0 238025 0 0 0 1082566 0 0 0 JOSE U ESPARZA SR. VP OF FINANCE & CFO 298712 0 48634 0 12090 0 11799 0 0 0 371235 0 0 0 MARIE TORRES SR. VP OF GOVERNMENT RELAT 268653 0 39125 0 12180 0 10251 0 0 0 330209 0 0 0 ZOILA ESCOBAR VP STRATEGIC DEVELOPMENT & 219992 0 32335 0 12000 0 10093 0 0 0 274420 0 0 0 ROBERT TURNER VP HUMAN RESOURCES 241717 0 27958 0 24761 0 9230 0 0 0 303666 0 0 0 MARTIN SEROTA MD CHIEF MEDICAL OFFICER 409001 0 50019 0 25270 0 15289 0 0 0 499579 0 0 0 JACOB FURGATCH SVP MANAGED CARE & PRES. ALTAMED HEA 343075 0 73660 0 12540 0 1647 0 0 0 430922 0 0 0 ANGELA ROBERTS VP OF FACILITY DEVELOPMENT 247999 0 36077 0 12180 0 11810 0 0 0 308066 0 0 0 JENNIFER SPALDING VP OF SENIOR CARE OPERATION 217362 0 17107 0 12405 0 8947 0 0 0 255821 0 0 0 MARTHA SANTANA CHIN V.P. PROVIDER NETWORK OPER 204874 0 15200 0 6259 0 10241 0 0 0 236574 0 0 0 ERIKA SOCKACI V.P. OF HEALTH SERVICES AD 192635 0 24612 0 9270 0 9031 0 0 0 235548 0 0 0 EILEEN MOSCARITOLO VP ENTERPRISE SERVICES 237447 0 37000 0 11728 0 0 0 0 0 286175 0 0 0 DESMOND K LEW MEDICAL DIRECTOR 194953 0 95734 0 360 0 7804 0 0 0 298851 0 0 0 FELIX CARPIO MD MEDICAL DIRECTOR INFORMATI 268153 0 23452 0 4740 0 11854 0 0 0 308199 0 0 0 RICO CRISTIAN REGIONAL MEDICAL DIRECTOR 263673 0 25203 0 6090 0 11779 0 0 0 306745 0 0 0 ESIQUIO CASILLAS REGIONAL MEDICAL DIR SENIOR CARE SER 254643 0 22101 0 405 0 9123 0 0 0 286272 0 0 0 PART I, LINE 1A ALTAMED MAINTAINS A DISCRETIONARY SPENDING ACCOUNT FOR OFFICERS, KEY EMPLOYEES AND OTHERS WHERE THE COMPANY ALLOWS A CERTAIN AMOUNT TO BE USED AT THE DISCRETION OF THE PAYEE FOR BUSINESS EXPENSES SUCH AS AUTOMOBILE EXPENSES . ANY AMOUNTS USED FROM THE DISCRETIONARY ACCOUNT ARE TAXED TO THE RECIPIENT AS PART OF THEIR COMPENSATION. IN ADDITION, ALTAMED PROVIDES A HOUSING SUBSIDY OF $13,000 FOR THE CHIEF MEDICAL OFFICER. PART I, LINE 4B SCHEDULE J :AT THE PRESENT TIME THE PRESIDENT AND CEO IS ELIGIBLE FOR THE ORGANIZATION'S SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN ( SERP) ; FUNDING OF THIS PLAN IS DISCRETIONARY AND ASSETS OF THE PLAN ARE SUBJECT TO THE CLAIMS OF CREDITORS . RETIREMENT AND OTHER DEFERRED COMPENSATION INCLUDES $223,191 PAID TO THE SERP IN CALENDAR YEAR 2013. PART I, LINE 7 SCHEDULE J :ALTAMED MAINTAINS A DISCRETIONARY EXECUTIVE AND DIRECTOR LEVEL BONUS PROGRAM THAT AWARDS INCENTIVE COMPENSATION BASED ON ACHIEVEMENT OF CERTAIN ORGANIZATIONAL OBJECTIVES INCLUDING FINANCIAL, OPERATIONAL, QUALITY AND MISSION OBJECTIVES DURING THE FISCAL YEAR. MEMBERS OF THE EXECUTIVE AND DIRECTOR LEADERSHIP TEAM ARE EVALUATED ANNUALLY FOR THEIR ABILITY TO MEET THOSE ORGANIZATIONAL OBJECTIVES TO ARRIVE AT THE INCENTIVE AMOUNT, IF ANY, FOR THE FISCAL YEAR. OVERALL ALTAMED MUST ACHIEVE SPECIFIC FINANCIAL GOALS BEFORE ANY INCENTIVES CAN BE EARNED AND PAID. A CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 2007-12-01 9012000 FINANCE THE COST OF ACQ,CONSTRUCTION,IMPROVEMENT & EQUIPPING OF FACILITIES 0 0 0 A 0 0 0 0 A 0 0 0 0 0 0 0 A 0 0 0 0 1 1 BANK OF THE WEST 15.000000000000 0 0 0 0 0 A 0 CASTULO DE LA ROCHA SPLIT DOLLAR LIFE INSURANCE X 5546217 5775057 0 1 1 ZOILA D ESCOBAR SPLIT DOLLAR LIFE INSURANCE X 1335000 1390083 0 1 1 JOSE U ESPARZA SPLIT DOLLAR LIFE INSURANCE X 1335900 1391020 0 1 1 MARIA S TORRES SPLIT DOLLAR LIFE INSURANCE X 1522239 1585048 0 1 1 MARTIN SEROTA SPLIT DOLLAR LIFE INSURANCE X 1540000 1585574 0 1 1 11726782 FORM 990 PART X LINE 5 IN 2011 ALTAMED ADOPTED A SPLIT DOLLAR RETENTION AND LOAN PLAN ( THE PLAN) DESIGNED TO ASSIST ALTAMED IN RECRUITING AND RETAINING KEY EXECUTIVES AND REWARD FUTURE SERVICE. THE PLAN IS DESIGNED TO SATISFY THE FINAL REGULATIONS DEALING WITH LOANS MADE TO EXECUTIVES TO PAY PREMIUMS ON LIFE INSURANCE POLICIES THEY OWN. REPAYMENT OF THE LOANS IS SECURED BY THE CASH VALUES AND DEATH BENEFITS IN ACCORDANCE WITH TAX AND CALIFORNIA LEGAL REQUIREMENTS. IN ADDITION, THE LOANS BEAR INTEREST AND BECAUSE OF THE PLAN'S DESIGN , ALTAMED IS EXPECTED TO BE REPAID FULLY WITH THE APPLICABLE FEDERAL RATE OF INTEREST . THE LOANS ARE REPORTED ON PART X AND SCHEDULE L. X GIFT CERTIFIC 0 28900 FAIR MARKET VALUE X PRINTING 0 22440 FAIR MARKET VALUE X FOR SPECIAL E 0 21844 FAIR MARKET VALUE X GRAPHIC DESIG 0 16237 FAIR MARKET VALUE X BAGS OF GROCE 0 10000 FAIR MARKET VALUE X PARTY RENTALS 0 8584 FAIR MARKET VALUE X ADVERTISEMENT 0 5375 FAIR MARKET VALUE 0 1 0 FORM 990, PART VI, SECTION A, LINE 2 THE PRESIDENT AND CEO IS RELATED BY MARRIAGE TO THE VP OF STRATEGIC DEVELOPMENT AND COMMUNITY SUPPORT. FORM 990, PART VI, SECTION B, LINE 11 ALTA MED HEALTH SERVICES CORPORATION OUTSIDE AUDITORS AND FINANCE STAFF PREPARE FORM 990. THE FORM IS THEN REVIEWED AND APPROVED BY THE ORGANIZATION PRESIDENT AND CEO AND CHIEF FINANCIAL OFFICER. THE FORM IS THEN PRESENTED TO THE FULL BOARD FOR APPROVAL BEFORE FILING. FORM 990, PART VI, SECTION B, LINE 12C ALTAMED HEALTH SERVICES CORP. (ALTAMED) REQUIRES ALL EMPLOYEES TO DISCLOSE, AT LEAST ANNUALLY, ALL SOURCES OF INCOME FROM COMPENSATION OR FROM OWNERSHIP OF EVERY OUTSIDE ENTITY THAT (A) SOLD, SUPPLIED OR PROVIDED SERVICES (B) OPERATED A COMPETING ENTERPRISE OR (C) PROVIDED GOODS OR SERVICES TO ALTAMED IN THE LAST SIX MONTHS. ALTAMED ALSO REQUIRES ALL DIRECTORS TO ANNUALLY SIGN A STATEMENT AFFIRMING (A) RECEIPT OF ALTAMED CONFLICT OF INTEREST POLICY (B) UNDERSTANDING OF THE POLICY AND (C) AGREEMENT WITH THE POLICY. THE CONFLICT OF INTEREST POLICY DESCRIBES HOW ALTAMED WILL RESOLVE POSSIBLE CONFLICTS OF INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS COMPENSATION COMMITTEE HAS ENGAGED A NATIONALLY RECOGNIZED INDEPENDENT COMPENSATION CONSULTANT FIRM TO REVIEW ITS EXECUTIVE AND NON-EXECUTIVE SALARIES. THE FIRM UNDERTAKES SPECIFIC PROTOCOLS AND OBTAIN VAST ORGANIZATIONAL DATA FROM NUMEROUS COMPANIES AND PEER GROUPS AND THEN RENDERS A "REASONABLENESS" OPINION TO THE BOARD OF DIRECTORS. THE FIRM'S PROCESS INCLUDES A REVIEW OF COMPENSATION OF SIMILARLY CONSTITUTED COMPANIES, TRENDS, THE ORGANIZATION'S PRESENT COMPENSATION PACKAGES INCLUDING CASH AND NON-CASH BENEFITS , THE METHODOLOGY AND PHILOSOPHY USED FOR THE ASSESSMENT AND THE TOTAL COMPENSATION ANALYSIS. ADDITIONALLY, MARKET BENEFIT AND RECRUITMENT AND RETENTION TRENDS ARE CONSIDERED AND EVALUATED. THE OPINIONS ARE PROVIDED TO THE BOARD'S COMPENSATION COMMITTEE, WHICH IS COMPRISED OF INDEPENDENT DIRECTORS. THE COMPENSATION COMMITTEE IS PROVIDED WITH A REGIONAL PEER GROUP THAT INCLUDES MOST COMPARABLY SIZED CALIFORNIA NON PROFIT AND SOME FOR PROFIT HEALTHCARE ORGANIZATIONS. THE OPINIONS ARE BASED ON COMPARABILITY DATA FROM NATIONAL AND REGIONAL DATA BASES, FROM WHICH COMPARISONS OF THE ORGANIZATION'S EXECUTIVE COMPENSATION WITH PEER GROUP COMPENSATION LEVELS CAN BE MADE, WHICH IS PROVIDED TO THE COMPENSATION COMMITTEE IN ITS REPORT. THE COMPENSATION COMMITTEE IS PRESENTED WITH DATA THAT COMPARES THE ORGANIZATION'S COMPENSATION PACKAGES TO THE LEVEL TARGETED IN THE COMPENSATION PHILOSOPHY. BASED UPON THE TOTALITY OF THE DATA GARNERED BY THE COMPENSATION CONSULTING FIRM, THE COMPENSATION COMMITTEE IS PROVIDED WITH RECOMMENDED BASE SALARY AND BENEFIT RANGES FOR THE PERIOD ASSESSED. THE COMPENSATION COMMITTEE DELIBERATES ON THE DATA TO ASSESS WHETHER IT IS APPROPRIATE IN REPRESENTING COMPENSATION LEVELS WITH SIMILAR ORGANIZATIONS, POSITIONS AND CIRCUMSTANCES AND THAT IT REPRESENTS FAIR MARKET VALUE FOR SERVICES RENDERED ON A REALISTIC BASIS. THE COMPENSATION COMMITTEE THEN PROVIDES ITS RECOMMENDATIONS TO THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS IS PROVIDED WITH ALL AVAILABLE INFORMATION AND THE OPINIONS OF THE EXPERTS AND DELIBERATES AND DISCUSSES THE RECOMMENDATIONS AS IT DEEMS NECESSARY TO PROPERLY ASSESS THE COMPENSATION LEVELS OF ITS EXECUTIVES AND OTHER EMPLOYEES. FORM 990, PART VI, SECTION C, LINE 19 SOME OR ALL OF THESE ITEMS MAY BE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: CHANGE IN FAIR VALUE OF INTEREST RATE SWAP AND INVESTMENTS 456,105. ALTAMED HEALTH NETWORK INC 2040 CAMFIELD AVE LOS ANGELES CA 90040 460635843 MANAGED CARE CA 501(C)(3) SECTION 509(A)(1) ALTAMED HEALTH SERVICES CORPORATION 1 ALTAMED FOUNDATION 2040 CAMFIELD AVE LOS ANGELES CA 90040 954090420 FUNDRAISING CA 501(C)(3) SECTION 509(A)(1) ALTAMED HEALTH SERVICES CORPORATION 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 ALTAMED HEALTH NETWORK INC N 399786 ACTUAL AMOUNT PAID ALTAMED FOUNDATION B 0