2015-05-15T09:24:18-05:00 2014-06-30 420714325 MCGLADREY LLP 100 INTERNATIONAL DRIVE SUITE 1400 BALTIMORE MD 21202 990 2013-07-01 263670453 QUALITY HEALTH STRATEGIES INC QUAL 8668862658 28464 MARLBORO AVENUE EASTON MD 21601 REBECCA COMBS CHIEF FINANCIAL OFFICER 8668862658 2015-05-12 1 JULIA FLANNERY CPA P00928918 4102469300 2013 2016-03-07 17:11:31Z X FREDIA WADLEY 28464 MARLBORO AVENUE EASTON MD 21601 135 0 X WWW.QUALITYHEALTHSTRATEGIES.ORG X 2007 MD PROVIDES GOVERNMENT CONTRACTING, AUDITING, MONITORING & CONSULTING FOR THE HEALTH CARE INDUSTRY. 9 9 75 0 0 0 26299867 0 0 0 0 135 0 0 26299867 135 18875 0 0 0 16275017 6147947 0 0 0 9584706 -5552418 25878598 595529 421269 -595394 2426300 4292393 6588869 9050356 -4162569 -4757963 QUALITY HEALTH STRATEGIES' MISSION IS TO IMPROVE HEALTH IN THE COMMUNITIES WE SERVE. 0 0 12748 MONITORING AND IMPROVING THE DELIVERY OF HEALTH CARE SERVICES AND INVESTIGATING HEALTH CARE FRAUD, WASTE AND ABUSE. 12748 1 0 0 1 0 0 0 0 0 0 1 0 0 0 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 1 0 0 0 1 77 0 1 75 1 0 0 0 0 0 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 MD X REBECCA COMBS CFO 8668862658 28464 MARLBORO AVENUE EASTON MD 21601 CATHERINE N SMOOT-HASELNUS MD CHAIRMAN 4.00 X X 6900 0 0 JEFFREY F TURNER VICE CHAIRPERSON 1.00 0.40 X X 8100 4200 0 MARGARET SCOTT SCHIFF SECRETARY/TREASURER 0.20 0.20 X X 6975 1125 0 MARY L FLEURY MD DIRECTOR 0.20 X 7275 0 0 MELVIN D GERALD MD DIRECTOR 0.20 X 6225 0 0 ELIZABETH ST J LOKER DIRECTOR 0.20 X 6900 0 0 JOHN MURRAY DIRECTOR 0.20 X 2100 0 0 J BRUCE WILLIAMS DIRECTOR 0.20 0.20 X 7725 1800 0 ROGER C MERRILL MD IMMEDIATE PAST CHAIR 0.20 0.20 X 25725 750 0 FREDIA WADLEY CEO 0.00 51.00 X 0 358419 41630 REBECCA COMBS CFO 0.00 51.00 X 0 191709 1196 RON FORSYTHE JR COO 0.00 50.00 X 0 216345 15259 DEBORAH KELLER VP HUMAN RESOURCES 0.00 50.00 X 0 174679 21261 DEBORAH ANN BAILEY FINANCIAL ANALYST 0.00 50.00 X 0 100314 8977 NANCY BETTINI DIRECTOR OF FACILITIES 0.00 50.00 X 0 101603 18117 CAROL D COOK DIRECTOR OF CONTRACTS 0.00 50.00 X 0 104003 26462 SUSAN JEAN MIDDLETON ASST. TO CEO 0.00 50.00 X 0 105928 9593 JEFFREY SCOTT PRITCHETT DIRECTOR OF ACCOUNTING 0.00 50.00 X 0 110879 26539 77925 1471754 169034 9 0 1 0 DELTEK SYSTEMS INC PO BOX 79581 BALTIMORE MD 21279 IT SOFTWARE & SUPPORT 495204 DELL MARKETING LP PO BOX 802816 CHICAGO IL 60680 IT HARDWARE 439512 FLUHARTY'S ELECTRIC INC PO BOX 389 5996 TILGHMAN ISLAND RO TILGHMAN MD 21671 ELECTRICAL SUBCONTRACTOR 206220 WHITLOCK INFRASTRUCTURE THE 400 LLC PO BOX 25027 GREENVILLE SC 29616 IT HARDWARE & SOFTWARE 203320 MCGLADREY LLP 5155 PAYSPHERE CIRCLE CHICAGO IL 60674 A&A, TAX SERVICES 200075 7 135 135 135 0 0 135 X 1108931 1108931 3908764 3908764 429562 429562 253546 253546 447144 447144 10634 10634 168207 168207 431019 12748 418271 215411 215411 511970 511970 305041 305041 58241 58241 76229 76229 6424 6424 517420 517420 299419 299419 LICENSES, FEES & DUES 314044 314044 SUBSCRIPTIONS 58730 58730 RECRUITMENT 27089 27089 ALLOCATION TO SUBSIDIAR -8552296 -8552296 595529 12748 582781 0 1202315 1341368 200126 504256 576238 3678148 1592346 630870 2085802 88859 88859 2426300 4292393 1017455 1499001 5571414 7551355 6588869 9050356 X -4162569 -4757963 -4162569 -4757963 2426300 4292393 -595394 0 X 0 1 X 1 0 X X X X 0 0 0 DELMARVA FOUNDATION FOR MEDICAL CARE INC 521000082 7 1 0 DELMARVA FOUNDATION OF THE DISTRICT OF COLUMBIA INC 522334320 7 1 0 QUALITY HEALTH FOUNDATION INC 200065799 7 1 0 HEALTH INTEGRITY LLC 203796994 9 1 0 4 0 X 0 18356 0 18356 0 36712 595529 79287212 595529 79323924 114329 1000000 28582 250000 0 0 0 0 1000000 1000000 1000000 1000000 4000000 6000000 4971 36712 36712 36712 115107 250000 250000 250000 250000 1000000 1500000 2486 18356 18356 18356 57554 2000 2000 0 2240639 1590346 650293 1435509 1435509 2085802 DUE TO AFFILIATE 7475866 PROVISION FOR INSURANCE CLAIMS 75489 7551355 X 81351490 82851355 82851355 -1499865 1500000 1500000 135 77823924 78728395 78728395 -904471 1500000 1500000 595529 PART X, LINE 2: THE COMPANY FOLLOWS THE ACCOUNTING STANDARD ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, THE COMPANY MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE THAN LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE CONSOLIDATED FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION CLASSIFICATION, INTEREST, AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT HAS EVALUATED THE COMPANY'S TAX POSITIONS AND HAS CONCLUDED THAT THE COMPANY HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISION OF THIS GUIDANCE. THE COMPANY IS NO LONGER SUBJECT TO U.S. FEDERAL, STATE, AND LOCAL INCOME TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS PRIOR TO JUNE 30, 2011. PART XI, LINE 2D - OTHER ADJUSTMENTS: REVENUE FROM AFFILIATES INCLUDED ON CONSOLIDATED FINANCIAL STATEMENTS 82,851,355. PART XI, LINE 4B - OTHER ADJUSTMENTS: REVENUE ELIMINATED ON CONSOLIDATED FINANCIAL STATEMENTS 1,500,000. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES FROM AFFILIATES INCLUDED ON CONSOLIDATED FINANCIAL STATEMENTS 78,728,395. PART XII, LINE 4B - OTHER ADJUSTMENTS: EXPENSES ELIMINATED ON CONSOLIDATED FINANCIAL STATEMENTS 1,500,000. X X X X X 0 0 0 0 0 0 0 0 0 FREDIA WADLEY CEO 0 358419 0 0 0 0 0 25933 0 15697 0 400049 0 0 REBECCA COMBS CFO 0 191709 0 0 0 0 0 0 0 1196 0 192905 0 0 RON FORSYTHE JR COO 0 216345 0 0 0 0 0 4249 0 11010 0 231604 0 0 DEBORAH KELLER VP HUMAN RESOURCES 0 174679 0 0 0 0 0 16903 0 4358 0 195940 0 0 FORM 990, PART VI, SECTION A, LINE 6 THERE IS ONE CLASS OF MEMBERSHIP IN QUALITY HEALTH STRATEGIES, INC. MEMBERS SHALL BE ELECTED AND ADMITTED TO THE MEMBERSHIP BY A TWO-THIRDS VOTE OF THE EXISTING MEMBERS. ANY ADDITIONAL MEMBERS SHALL COMPLETE AND SIGN THE MEMBERSHIP AGREEMENT FORM PROVIDED BY THE CORPORATION. SUCH FORM SHALL BE AS PRESCRIBED BY THE BOARD OF DIRECTORS AND SHALL CONTAIN A CLAUSE STATING IN SUBSTANCE THAT THE ADDITIONAL MEMBER AGREES TO BE BOUND BY THE ARTICLES OF INCORPORATION, BYLAWS, AND RULES AND REGULATIONS OF THE CORPORATION. THE MEMBERSHIP AGREEMENT SHALL BE FILED WITH THE SECRETARY AT THE PRINCIPAL OFFICE OF THE CORPORATION. ON APPROVAL OF THE BOARD, SUCH APPLICANT SHALL FORTHWITH BECOME A MEMBER OF THIS CORPORATION. A MEMBER NEED ONLY CONTINUE TO MEET THE CORPORATION'S MEMBERSHIP REQUIREMENTS AS PROVIDED IN THE CHARTER AND THE BYLAWS TO REMAIN A MEMBER OF THE CORPORATION. RENEWALS OF MEMBERSHIP MAY BE REQUIRED. A MEMBER MAY VOLUNTARILY ELECT TO TERMINATE MEMBERSHIP AT ANY TIME BY SERVING WRITTEN NOTICE ON THE SECRETARY OF THE CORPORATION. QUALITY HEALTH STRATEGIES, INC. HAS A SINGLE MEMBER LLC, HEALTH INTEGRIY, LLC. QUALITY HEALTH STRATEGIES IS THE SOLE MEMBER OF HEALTH INTEGRITY. QUALITY HEALTH STRATEGIES HAS ESTABLISHED AN INDEPENDENT VOTING TRUST TO OVERSEE HEALTH INTEGRITY ON OPERATIONAL ISSUES TO MITIGATE ANY POTENTIAL CONFLICT OF INTEREST ISSUES WITH ANY MEMBERS OF THE QUALITY HEALTH STRATEGIES BOARD OF DIRECTORS. QUALITY HEALTH STRATEGIES RETAINS AUTHORITY ON ANY MAJOR DECISIONS REGARDING OWNERSHIP, AND IMPACT TO QUALITY HEALTH STRATEGIES. FORM 990, PART VI, SECTION A, LINE 7A DIRECTORS SHALL BE ELECTED BY A MAJORITY VOTE OF THE MEMBERS OF THE CORPORATION AND SHALL HOLD OFFICE UNTIL THEIR SUCCESSORS ARE ELECTED OR UNTIL THEIR EARLIER DEATH, RESIGNATION OR REMOVAL. DIRECTORS SHALL BE MEMBERS OF THE CORPORATION. THE CANDIDATES WITH THE HIGHEST NUMBER OF VOTES SHALL BE DEEMED TO BE ELECTED TO THE SEATS AVAILABLE, ACCORDING TO THE NUMBER OF VACANCIES. IN CASES OF EQUAL VOTES FOR LIMITED SEATS, A RUNOFF ELECTION SHALL BE HELD IN A MANNER PRESCRIBED BY THE BOARD. QUALITY HEALTH STRATEGIES VIA THE INDEPENDENT VOTING TRUST HAS THE RIGHT TO APPOINT AND ELECT ALL DIRECTORS FOR HEALTH INTEGRITY, LLC. FORM 990, PART VI, SECTION A, LINE 7B MEMBERS OF QUALITY HEALTH STRATEGIES, INC. HAVE THE RIGHT TO VOTE WITH RESPECT TO THE FOLLOWING: 1. ELECTION OF THE BOARD OF DIRECTORS; 2. AMENDEMENTS TO THE BYLAWS OR REMOVAL FROM OFFICE AS DIRECTOR; 3. OTHER MATTER OF CONCERN TO THE MEMBERSHIP AS DETERMINED BY THE BOARD OR BY PETITION VOTE BY 25 PERCENT OF THE MEMBERSHIP; 4. AMENDMENT TO THE CHARTER OF THE CORPORATION. THE BOARD OF DIRECTORS OF QUALITY HEALTH STRATEGIES, INC. VIA THE INDEPENDENT VOTING TRUST APPROVES ALL BOARD MEMBER RECOMMENDATIONS MADE BY THE BOARD OF HEALTH INTEGRIY, LLC. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 DATA IS PREPARED BY THE FINANCE DEPARTMENT OF THE COMPANY AND INPUT INTO OUR INDEPENDENT AUDITOR'S TEMPLATE FOR PREPARATION OF THE 990. THE CHIEF FINANCIAL OFFICER REVIEWS THE DATA INPUT INTO THE TEMPLATE PRIOR TO BEING SENT TO THE INDEPENDENT AUDITORS. THE INDEPENDENT AUDITORS PREPARE THE FORM 990 AND SEND THE FIRST DRAFT TO THE CFO FOR REVIEW, COMMENT OR ANY CHANGES. IF ANY CHANGES, THEY ARE SENT TO THE INDEPENDENT AUDITORS FOR CHANGE. A SECOND DRAFT IS PREPARED AND SENT TO THE CFO, WHO DISSEMINATES THE SECOND DRAFT TO THE CEO AND MEMBERS OF THE FINANCE COMMITTEE OF THE BOARD OF DIRECTORS FOR THEIR REVIEW, COMMENT AND CHANGES. IF NO CHANGES, THEN THE 2ND DRAFT IS CONSIDERED FINAL AND IS THE VERSION FILED WITH THE IRS. IF CHANGES, THEN THE CHANGES ARE COMPLETED, THE REVISED 990 IS DISSEMINATED TO THE CEO AND BOARD OF DIRECTORS ELECTRONICALLY OR IN PAPER FORM PRIOR TO FILING. THE RETURN IS THEN FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS PARTICIPATES IN ANNUAL COMPLIANCE TRAINING AND CONFLICT OF INTEREST TRAINING GIVEN BY THE COMPLIANCE OFFICER. EACH BOARD MEMBER, THE CEO, COO, AND CFO ARE REQUIRED TO COMPLETE AND SIGN A CONFLICT OF INTEREST QUESTIONNAIRE ON AN ANNUAL BASIS. THERE MAY BE A MATTER WHERE A MEMBER, OR A MEMBER OF THE MEMBER'S FAMILY, MAY HAVE A MATERIAL PERSONAL INTEREST IN A TRANSACTION OR COURSE OF ACTION IN WHICH QHS IS, OR MAY BE, INVOLVED. IN SUCH CIRCUMSTANCES, THE MEMBER SHALL NOT PARTICIPATE IN THE VOTING UPON, OR DISCUSSION OF, THE MATTER EXCEPT UNDER THE FOLLOWING CIRCUMSTANCES: 1. A REQUEST TO PARTICIPATE IS MADE TO THE COMPLIANCE COMMITTEE ALONG WITH FULL DISCLOSURE OF THE POTENTIAL CONFLICT AND ALL RELEVANT FACTS; AND 2. THE COMPLIANCE COMMITTEE DETERMINES THAT A MATERIAL PERSONAL INTEREST IS NOT INVOLVED; AND 3. THE BOARD IS FULLY ADVISED OF THE COMPLIANCE COMMITTEE'S DETERMINATION. FORM 990, PART VI, SECTION B, LINE 15 THE VICE PRESIDENT OF HUMAN RESOURCES OBTAINS AND ANALYSES A COMPENSATION SURVEY. THE VICE PRESIDENT REVIEWS AND DISCUSSES THE SURVEY WITH THE CEO AND MAKES THE INFORMATION ON THE CEO AND OTHER C-SUITE OFFICERS AVAILABLE TO THE BOARD. THE COMPENSATION OF THE CEO IS DOCUMENTED AND DETERMINED BY THE QHS BOARD. FORM 990, PART VI, SECTION C, LINE 19 FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY AND GOVERNING DOCUMENTS ARE MADE AVAILABLE UPON REQUEST FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL: PROGRAM SERVICE EXPENSES 12,748. MANAGEMENT AND GENERAL EXPENSES 418,271. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 431,019. 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