2015-08-12T15:37:19-05:00 2014-09-30 010494526 BAKER NEWMAN & NOYES LLC 650 ELM STREET SUITE 302 MANCHESTER NH 03101 990 2013-10-01 870807914 CORE PHYSICIANS LLC CORE 6035806695 5 ALUMNI DRIVE EXETER NH 03833 KEVIN J O'LEARY TREASURER 6035806695 2015-08-05 1 TIMOTHY R HEPBURN CPA P00182393 8002447444 2015-08-05 2013 2016-02-25 16:41:14Z DEBRA CRESTA 5 ALUMNI DRIVE EXETER NH 03833 70721186 0 X WWW.COREPHYSICIANS.ORG X LIMITED LIABILITY CORPORATION 2007 NH THE MISSION OF CORE PHYSICIANS IS TO IMPROVE THE HEALTH OF THE COMMUNITY. THIS MISSION IS PRINCIPALLY ACCOMPLISHED THROUGH THE PROVISION OF HEALTH SERVICES AND INFORMATION TO THE COMMUNITY WITHIN THE RESOURCES AVAILABLE. AS A MULTI-SPECIALTY GROUP PRACTICE CORE PHYSICIANS PROVIDES COMMUNITY ACCESS TO PRIMARY CARE PHYSICIANS, SPECIALTY PHYSICIAN SERVICES, PEDIATRIC DENTAL SERVICES, OFFICE BASED LABORATORY SERVICE, AS WELL AS CONTRACTED PHYSICIANS TO SUPPORT EXETER HOSPITAL'S 24/7 INTENSIVEST COVERAGE PROGRAM IN ITS ICU, AND INPATIENT HOSPITALIST PROGRAM. CORE PHYSICIANS SUPPORTS ACCESS TO ITS PHYSICIANS AND MEDICAL SERVICES THROUGH A ROBUST FINANCIAL ASSISTANCE PROGRAM THAT UNDERWRITES UP TO 100% OF THE COST OF MEDICAL CARE PROVIDED BY ITS PHYSICIANS BASED ON FAMILY SIZE AND INCOME FOR RESIDENTS OF OUR SERVICE AREA. 12 0 606 0 40500 1265 0 22938 61129762 63600128 4326 3918 7649176 7091876 68783264 70718860 0 0 0 0 63778699 63570172 0 0 0 19273828 21199521 83052527 84769693 -14269263 -14050833 12036172 11783946 10352722 10648475 1683450 1135471 X THE MISSION OF CORE PHYSICIANS IS TO IMPROVE THE HEALTH OF THE COMMUNITY. THIS MISSION IS PRINCIPALLY ACCOMPLISHED THROUGH THE PROVISION OF HEALTH SERVICES AND INFORMATION TO THE COMMUNITY WITHIN THE RESOURCES AVAILABLE. AS A MULTI-SPECIALTY GROUP PRACTICE, CORE PHYSICIANS PROVIDES COMMUNITY ACCESS TO PRIMARY CARE PHYSICIANS, SPECIALTY PHYSICIAN SERVICES, PEDIATRIC DENTAL SERVICES, OFFICE BASED LABORATORY SERVICE, AS WELL AS CONTRACTED PHYSICIANS TO SUPPORT EXETER HOSPITAL'S 24/7 INTENSIVEST COVERAGE PROGRAM IN ITS ICU, AND INPATIENT HOSPITALIST PROGRAM. CORE PHYSICIANS SUPPORTS ACCESS TO ITS PHYSICIANS AND MEDICAL SERVICES THROUGH A ROBUST FINANCIAL ASSISTANCE PROGRAM THAT UNDERWRITES UP TO 100% OF THE COST OF MEDICAL CARE PROVIDED BY ITS PHYSICIANS BASED ON FAMILY SIZE AND INCOME FOR RESIDENTS OF OUR SERVICE AREA. 0 0 71576374 70651504 CORE PHYSICIANS PROVIDES ACCESS TO PRIMARY CARE SERVICES TO MORE THAN 50,000 SEACOAST AREA RESIDENTS OF ALL AGES AND ALL DEMOGRAPHIC AND SOCIO-ECONOMIC BACKGROUNDS REGARDLESS OF THEIR ABILITY TO PAY. CORE PHYSICIANS HAS OVER 160 PROVIDERS LOCATED IN 32 LOCATIONS ACROSS THE SEACOAST. IN 2014 CORE PHYSICIANS SUPPORTED ITS MISSION BY SUPPORTING $7,342,437 IN COMMUNITY OUTREACH, BENEFITS AND FINANCIAL SUPPORT TO THE COMMUNITY EXCLUDING $14,040,918 IN UNCOVERED MEDICARE EXPENSES. PHYSICIAN'S PRIMARY CARE SERVICES ARE BROKEN DOWN INTO THREE SPECIALTIES INCLUDING PEDIATRICS, FAMILY PRACTICE AND INTERNAL MEDICINE. ALL CORE PHYSICIANS PRIMARY CARE PRACTICES, WITH THE EXCEPTION OF EPPING PEDIATRICS, HAVE RECEIVED NATIONAL RECOGNITION FOR ITS PIONEERING WORK IN THE DEVELOPMENT OF THE PATIENT CENTERED MEDICAL HOME MODEL. CORE PHYSICIANS PEDIATRICIANS ALSO SUPPORT THE REGION'S ONLY FORMALIZED MEDICAL EVALUATION SERVICE FOR VICTIMS OF CHILD ABUSE. CORE PHYSICIANS FINANCIAL ASSISTANCE PROGRAM IS AVAILABLE TO ALL INDIVIDUALS WHO MEET THE FINANCIAL ELIGIBILITY REQUIREMENTS AND WHO LIVE WITHIN CORE PHYSICIANS' SPECIFIED SERVICE AREA FOR MEDICALLY NECESSARY SERVICES IN ORDER TO SUPPORT THE MORE COMPLEX MEDICAL NEEDS OF OUR PRIMARY CARE PATIENTS AND THOSE OF UNAFFILIATED PATIENTS FROM ACROSS OUR SERVICE AREA, CORE PHYSICIANS PROVIDES A FULL RANGE OF MEDICAL AND SURGICAL SPECIALTIES. OUR AREAS OF SPECIALIZATION INCLUDE DIABETES, ORTHOPEDIC SURGERY, PHYSIATRY, RHEUMATOLOGY, MEDICAL AND INVASIVE CARDIOLOGY, SLEEP MEDICINE, COMPREHENSIVE OTOLARYNGOLOGY & AUDIOLOGY, PLASTIC SURGERY, VASCULAR SURGERY, PODIATRY, UROLOGY, PULMONOLOGY, ACUPUNTURE, ENDOCRINOLOGY, GENERAL SURGERY, NEUROLOGY, GASTRONENTEROLOGY, WOMEN'S HEALTH, ALLERGY AND INFECTIOUS DISEASE. OUR SPECIALTY SERVICES CONTINUE TO EXPAND IN ORDER TO REFLECT THE CHANGING AND GROWING HEALTHCARE NEEDS OF OUR COMMUNITY. CORE PHYSICIAN SPECIALISTS ARE BOARD CERTIFIED. CORE PHYSICIANS FINANCIAL ASSISTANCE PROGRAM ALSO EXTENDS TO COVER MEDICALLY NECESSARY SPECIALIST PROFESSIONAL SERVICES FOR INDIVIDUALS WHO MEET OUR ELIGIBILITY REQUIREMENTS. THE DENTAL PROGRAM WHICH IS CURRENTLY PART OF CORE PHYSICIANS WAS ORIGINALLY INITIATED AS A SEPARATE AFFILIATED ENTITY IN RESPONSE TO A DOCUMENTED GAP IN THE COMMUNITY RELATED TO THE AVAILABILITY OF DENTAL SERVICES FOR CHILDREN EITHER WITHOUT INSURANCE OR ON MEDICAID. THE DENTAL PROGRAM IS ONE OF SEVERAL "MISSION BASED" SPECIALTY MEDICAL SERVICES CORE PHYSICIANS PROVIDES IN THE GREATER SEACOAST COMMUNITY. CURRENTLY CORE PHYSICIANS HAS THREE DENTISTS AND SEVEN DENTAL HYGIENISTS WHO PROVIDE DENTAL CARE. 71576374 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 1 65 0 1 606 1 1 1 0 0 0 0 0 0 0 0 0 X 12 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 NH X KEVIN J O'LEARY 6035806695 5 ALUMNI DRIVE EXETER NH 03833 DEBRA CRESTA CEO/PRESIDENT, SYSTEM MGR 0.00 40.30 X X 0 360987 47469 NICK GARCIA MD CHAIRMAN, CLINICAL MGR 40.00 0.00 X X 471387 0 35631 KEVIN J O'LEARY TREASURER, SYSTEM MGR 1.00 44.00 X X 0 422773 96596 KEVIN J CALLAHAN SYSTEM MANAGER 1.00 44.00 X 0 739793 198420 RICHARD HOLLISTER MD CLINICAL MANAGER 40.00 2.00 X 439182 0 36321 MARTIN PRUSS MD CLINICAL MANAGER THRU 9/2014 40.00 0.00 X 188461 0 34628 ALEXANDRA BONESHO MD CLINICAL MANAGER THRU 3/2014 40.00 0.00 X 234673 0 35666 PETER IHM MD CLINICAL MGR 40.00 0.00 X 451838 0 38128 STEVE KAHAN MD CLINICAL MANAGER THRU 3/2014 40.00 0.00 X 491749 0 35705 REBECCA SNIDER MD CLINICAL MANAGER 40.00 0.00 X 199362 0 34854 MICHAEL PANGAN MD CLINICAL MANAGER 40.00 0.00 X 232665 0 37236 JAY SWETT MD CLINICAL MANAGER 40.00 0.00 X 414710 0 36068 MELANIE LANIER DO CLINICAL MANAGER 40.00 0.00 X 132888 0 2746 JESSICA SUTHERLAND MD CLINICAL MANAGER 40.00 0.00 X 366911 0 25339 JENNIFER JONES MD CLINICAL MANAGER 40.00 0.00 X 172427 0 40599 ELIZABETH SMITH MD CLINICAL MANAGER THRU NOVEMBER 2013 40.00 1.00 X 344171 0 29408 ALLISON CASASSA ASSISTANT TREASURER 1.00 30.00 X 0 149426 9294 CONSTANCE SPRAUER SECRETARY 1.00 42.00 X 0 347977 36490 THOMAS MCGOVERN MD PHYSICIAN 40.00 X 687640 0 36447 ROGER NOWAK MD PHYSICIAN 40.00 X 617330 0 27142 KIMBERLY MARBLE MD PHYSICIAN 40.00 X 673933 0 38856 E WILLIAM JOHNSON MD PHYSICIAN 40.00 0.00 X 664236 0 40631 AARON COLEMAN MD PHYSICIAN 40.00 0.00 X 618327 0 35631 7401890 2020956 989305 132 0 1 0 EXETER HOSPITAL INC 5 ALUMNI DRIVE EXETER NH 03833 SUPPORT SERVICES 1443301 EXETER HEALTH RESOURCES INC 5 ALUMNI DRIVE EXETER NH 03833 ADMINISTRATIVE MANAGEMENT FEES 1229537 NEXTGEN PO BOX 809390 CHICAGO IL 60680 BILLING SOFTWARE & SUPPORT 915931 WEATHERBY LOCUMS INC PO BOX 972633 DALLAS TX 75397 LOCUMS PHYSICIAN SERVICES 699045 ALL STAR RECRUITING LOCUMS LLC PO BOX 823424 PHILADELPHIA PA 19182 LOCUMS PHYSICIAN SERVICES 392059 8 22938 22938 NET PATIENT SERVICE REVENUE 621110 63600128 63600128 63600128 6244 6244 2326 -2326 -2326 -2326 OTHER OPERATING INCOME 621110 6259042 6259042 MEDICAL DIRECTOR FEES 621110 792334 792334 PHYSICIAN PRACTICE MGMT INCOME 621110 40500 40500 7091876 70718860 70651504 40500 3918 2881371 2399894 481477 50312931 41905640 8407291 614614 511912 102702 7046611 5869122 1177489 2714645 2261028 453617 449878 445379 4499 367079 305740 61339 465451 387674 77777 4437454 3695955 741499 347273 289244 58029 2996473 2996473 969227 807269 161958 982198 818073 164125 UNRELATED BUSINESS TAX 2193 2193 SUPPLIES 2651651 2208560 443091 SERVICE CONTRACTS 2603757 2168669 435088 BAD DEBT 2245649 2245649 2681238 2260093 421145 84769693 71576374 13193319 0 787061 883457 4924797 5108595 1213371 833744 15989517 13116321 3268512 2873196 358066 358066 1484365 1726888 12036172 11783946 7141926 7936627 3210796 2711848 10352722 10648475 X 1683450 1135471 1683450 1135471 12036172 11783946 X -14050833 13502854 X 0 1 X 1 0 X 22938 22938 58705564 65020302 67286717 68732362 70651504 330396449 58705564 65020302 67286717 68732362 70674442 330419387 0 0 0 330419387 2966 1626 1913 4326 3918 14749 2966 1626 1913 4326 3918 14749 37021 46764 46816 46576 40500 217677 58745551 65068692 67335446 68783264 70718860 330651813 0.99930 0.99910 0.00000 0.00010 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 380228 284592 95636 2562738 2259919 302819 13046551 10571810 2474741 2873196 INVESTMENT - DEFERRED COMP 1726888 1726888 DUE TO RELATED ENTITIES 840115 DEFERRED COMPENSATION 1726888 DUE TO THIRD PARTIES 144845 2711848 X PART X, LINE 2: RESOURCES, THE HOSPITAL, RVNA&H, CORE AND MATRIX ARE NOT-FOR-PROFIT ORGANIZATIONS AS DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (THE CODE), AND ARE EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. MED REAL IS A NOT-FOR-PROFIT ORGANIZATION AS DESCRIBED IN SECTION 501(C)(25) OF THE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES ON RELATED INCOME PURSUANT TO SECTION 501(A) OF THE CODE. MANAGEMENT EVALUATED THE TAX POSITIONS OF THESE ENTITIES AND HAS CONCLUDED THAT THEY HAVE MAINTAINED THEIR TAX-EXEMPT STATUS, DO NOT HAVE ANY SIGNIFICANT UNRELATED BUSINESS INCOME, AND HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS. CONVERGENT, VX AND SERVICES ARE FOR-PROFIT ORGANIZATIONS AND, IN ACCORDANCE WITH FEDERAL AND STATE TAX LAWS, FILE RETURNS SEPARATE FROM THAT OF RESOURCES. IN 2014 AND 2013, NO FEDERAL INCOME TAXES WERE CHARGED TO OPERATIONS DUE TO CONVERGENT, VX AND SERVICES EITHER INCURRING AN OPERATING LOSS OR UTILIZING NET OPERATING LOSS CARRYFORWARDS FROM PRIOR YEARS. MANAGEMENT BELIEVES THAT IT HAS APPROPRIATE SUPPORT FOR THE INCOME TAX POSITIONS TAKEN AND TO BE TAKEN ON TAX RETURNS, AND THAT THEIR ACCRUALS FOR TAX LIABILITIES ARE ADEQUATE FOR ALL OPEN TAX YEARS BASED ON AN ASSESSMENT OF MANY FACTORS INCLUDING EXPERIENCE AND INTERPRETATIONS OF TAX LAWS APPLIED TO THE FACTS OF EACH MATTER. THESE ENTITIES HAVE CONCLUDED THERE ARE NO SIGNIFICANT UNCERTAIN TAX POSITIONS REQUIRING DISCLOSURE AND THERE IS NO MATERIAL LIABILITY FOR UNRECOGNIZED TAX BENEFITS. IT IS THE POLICY OF THESE ENTITIES TO RECOGNIZE INTEREST OR ANY PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN INCOME TAX EXPENSE. WITH FEW EXCEPTIONS, THE CORPORATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATION BY THE U.S. FEDERAL OR STATE TAX AUTHORITIES FOR YEARS BEFORE 2011. 1 INTERNATIONAL MEDICAL EQUIPMENT COLLABORATIVE 1620 OSGOOD STREET N ANDOVER MA 08145 020489746 501(C)(3) 9684 BOOK VALUE MEDICAL EQT/SUPPLIES CONTRIBUTION OF MEDICAL EQUIPMENT AND SUPPLIES TO HOSPITALS AND CLINICS WHO SERVE THE NEEDY IN COUNTRIES OUTSIDE THE UNITED STATES. SOCIETY OF ST VINCENT DE PAUL EXETER INC PO BOX 176 EXETER NH 03833 203945985 501(C)(3) 39984 FAIR MARKET VALUE MOBILE DENTAL VAN DONATION OF MOBILE DENTAL VAN FOUNDATION FOR HEALTHY COMMUNITIES 125 AIRPORT ROAD CONCORD NH 03301 020275078 501(C)(3) 22938 BOOK VALUE COST OF SALARIES COST OF SALARIES TO ADMINISTER "PATIENT ASSISTANCE PROGRAM RX"(MEDICATION BRIDGE) 3 0 PART I, LINE 2: ALL REQUESTS FOR GRANTS/CONTRIBUTIONS/SPONSORSHIPS OVER $5,000 REQUIRE THE APPROVAL OF AT LEAST THE VICE PRESIDENT OF STRATEGY, COMMUNITY RELATIONS AND DEVELOPMENT TO ENSURE THAT THEY ARE CONSISTENT WITH OUR MISSION, VALUES AND STRATEGIC PLAN. LARGE GRANTS LIKE THOSE GIVEN TO SOCIETY OF ST. VINCENT DE PAUL AND FOUNDATION FOR HEALTHY COMMUNITIES ARE ALSO REVIEWED BY THE CHIEF FINANCIAL OFFICER AND CHIEF EXECUTIVE OFFICER PRIOR TO APPROVAL. EACH OF THOSE REQUESTING ORGANIZATIONS EITHER PROVIDES A WRITTEN SUMMARY OF HOW THEY HAVE USED OUR PREVIOUS SUPPORT AS WELL AS THEIR SPECIFIC PLANS FOR ANY NEW REQUESTED FUNDING OR THEY MAKE A PRESENTATION IN PERSON USUALLY TO THE CHIEF FINANCIAL OFFICER, THE CHIEF EXECUTIVE OFFICER AND THE VICE PRESIDENT OF STRATEGY, COMMUNITY RELATIONS AND DEVELOPMENT. EACH YEAR A SUB COMMITTEE OF EXETER HEALTH RESOURCES' (PARENT COMPANY) BOARD OF TRUSTEES IS CHARGED WITH OVERSEEING OUR COMMUNITY BENEFITS PROGRAM AND OUR COMMUNITY NEEDS ASSESSMENT AND REVIEWS A DETAILED REPORT ON THE PREVIOUS YEAR'S GRANTS/ CONTRIBUTIONS/SPONSORSHIPS AND APPROVES THE CURRENT YEAR'S PLAN FOR COMMUNITY SUPPORT. THAT SUB COMMITTEE AND THE LARGER EXETER HEALTH RESOURCES' (PARENT COMPANY) BOARD OF TRUSTEES ARE REGULARLY UPDATED ON OUR COMMUNITY SUPPORT INITIATIVES. X 0 1 X X X X 0 1 0 0 0 0 0 1 0 DEBRA CRESTA CEO/PRESIDENT, SYSTEM MGR 0 255295 0 71122 0 34570 0 15300 0 32169 0 408456 0 0 NICK GARCIA MD CHAIRMAN, CLINICAL MGR 437959 0 15508 0 17920 0 5100 0 30531 0 507018 0 0 0 KEVIN J O'LEARY TREASURER, SYSTEM MGR 0 297107 0 70620 0 55046 0 75650 0 20946 0 519369 0 0 KEVIN J CALLAHAN SYSTEM MANAGER 0 543852 0 121000 0 74941 0 167650 0 30770 0 938213 0 0 RICHARD HOLLISTER MD CLINICAL MANAGER 332904 0 88508 0 17770 0 5100 0 31221 0 475503 0 0 0 MARTIN PRUSS MD CLINICAL MANAGER THRU 9/2014 160854 0 22379 0 5228 0 3872 0 30756 0 223089 0 0 0 ALEXANDRA BONESHO MD CLINICAL MANAGER THRU 3/2014 188325 0 28652 0 17696 0 4845 0 30821 0 270339 0 0 0 PETER IHM MD CLINICAL MGR 369835 0 63880 0 18123 0 5100 0 33028 0 489966 0 0 0 STEVE KAHAN MD CLINICAL MANAGER THRU 3/2014 395334 0 71609 0 24806 0 5100 0 30605 0 527454 0 0 0 REBECCA SNIDER MD CLINICAL MANAGER 160999 0 14209 0 24154 0 4168 0 30686 0 234216 0 0 0 MICHAEL PANGAN MD CLINICAL MANAGER 195022 0 19837 0 17806 0 4810 0 32426 0 269901 0 0 0 JAY SWETT MD CLINICAL MANAGER 377259 0 19980 0 17471 0 5100 0 30968 0 450778 0 0 0 JESSICA SUTHERLAND MD CLINICAL MANAGER 348667 0 400 0 17844 0 5100 0 20239 0 392250 0 0 0 JENNIFER JONES MD CLINICAL MANAGER 122844 0 31971 0 17612 0 3711 0 36888 0 213026 0 0 0 ELIZABETH SMITH MD CLINICAL MANAGER THRU NOVEMBER 2013 225253 0 73360 0 45558 0 0 0 29408 0 373579 0 0 0 ALLISON CASASSA ASSISTANT TREASURER 0 124119 0 25185 0 122 0 8966 0 328 0 158720 0 0 CONSTANCE SPRAUER SECRETARY 0 250354 0 51500 0 46123 0 15300 0 21190 0 384467 0 0 THOMAS MCGOVERN MD PHYSICIAN 618010 0 33304 0 36326 0 5100 0 31347 0 724087 0 0 0 ROGER NOWAK MD PHYSICIAN 594920 0 4400 0 18010 0 5100 0 22042 0 644472 0 0 0 KIMBERLY MARBLE MD PHYSICIAN 412806 0 237161 0 23966 0 5100 0 33756 0 712789 0 0 0 E WILLIAM JOHNSON MD PHYSICIAN 396005 0 250311 0 17920 0 5100 0 35531 0 704867 0 0 0 AARON COLEMAN MD PHYSICIAN 592007 0 8400 0 17920 0 5100 0 30531 0 653958 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS UP PAYMENTS WERE PROVIDED TO DEBRA CRESTA, KEVIN CALLAHAN, KEVIN O'LEARY, CONSTANCE SPRAUER, REBECCA SNIDER MD, AND ELIZABETH SMITH MD (FOR ACQUISITION OF SUPPLEMENTAL LONG TERM DISABILITY INSURANCE). THE BENEFIT WAS TREATED AS TAXABLE INCOME. PART I, LINE 1B THERE WAS NO EXISTING POLICY CONCERNING TAX INDEMNIFICATION AND GROSS UP PAYMENTS. HOWEVER, IN THE INSTANCE OF SUCH ACTION RELATED TO THE ACQUISITION OF LONG TERM DISABILITY INSURANCE DESCRIBED ABOVE, THE TAX INDEMNIFICATION AND GROSS UP PAYMENTS WERE APPROVED BY THE EXETER HEALTH RESOURCES BOARD OF TRUSTEES EXECUTIVE COMMITTEE COMPRISED OF DISINTERESTED PERSONS. PART I, LINE 3 THE CEO OF CORE PHYSICIANS, LLC IS COMPENSATED BY A RELATED ORGANIZATION, EXETER HEALTH RESOURCES, INC. EXETER HEALTH RESOURCES, INC. USES A COMPENSATION COMMITTEE, AN INDEPENDENT COMPENSATION CONSULTANT, A COMPENSATION SURVEY AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PART I, LINE 4B THE ORGANIZATION'S PARENT (EXETER HEALTH RESOURCES, INC.) MAINTAINS A SPLIT DOLLAR SUPPLEMENTAL RETIREMENT PLAN FOR TWO EXECUTIVES (LISTED BELOW WITH AMOUNTS) SELECTED BY THE EXETER HEALTH RESOURCES BOARD OF TRUSTEES. THE PLAN IS CLOSED TO FUTURE PARTICIPANTS. THE PLAN PROVIDES FOR ANNUAL PAYMENTS OF PREMIUMS FOR LIFE INSURANCE POLICIES INSURING THE LISTED INDIVIDUALS. THOSE LIFE INSURANCE PREMIUMS ARE COLLATERALLY ASSIGNED TO THE CORPORATION AND ANY EXCESS ACCUMULATED VALUE IN THE POLICIES (NET OF ACCUMULATED PREMIUM PAYMENTS WHICH ARE RETURNED TO THE ORGANIZATION UPON THE EXECUTIVE ATTAINING THE AGE OF 70) IS AVAILABLE TO BE PAID TO THE PARTICIPANT ONCE VESTED AT AGE 62 AND UPON RETIREMENT FROM THE ORGANIZATION. LIFE INSURANCE PREMIUM PAYMENTS DURING THE TAX YEAR: KEVIN CALLAHAN-$312,478 KEVIN O'LEARY-$146,277 KEVIN CALLAHAN - EXCESS ACCUMULATED VALUE - $1,618,484 KEVIN O'LEARY - EXCESS ACCUMULATED VALUE - $674,148 CERTAIN OF THE LISTED EMPLOYEES PARTICIPATE IN A NONQUALIFIED DEFERRED COMPENSATION PLAN AS DESCRIBED IN INTERNAL REVENUE CODE SECTION 457 (F) SPONSORED BY EXETER HEALTH RESOURCES. IN THE CALENDAR YEAR ENDED DECEMBER 31, 2013, THE CONTRIBUTION TO THE PLAN FOR THE NON-VESTED BENEFIT OF KEVIN CALLAHAN WAS $160,000 AND THE CONTRIBUTION TO THE PLAN FOR THE NON-VESTED BENEFIT OF KEVIN O'LEARY WAS $68,000. PARTICIPANTS IN THE 457 (F) PLAN DO NOT VEST UNTIL AGE 62 WHEN IT IS PAYABLE TO THE PARTICIPANT. PART I, LINE 7 THE ORGANIZATION'S PARENT (EXETER HEALTH RESOURCES, INC) PROVIDES AN ANNUAL INCENTIVE COMPENSATION PLAN FOR EXECUTIVES SELECTED BY THE EXETER HEALTH RESOURCES BOARD OF TRUSTEES. THESE EXECUTIVES INCLUDE: KEVIN CALLAHAN, KEVIN O'LEARY, CONSTANCE SPRAUER, ALLISON CASSASA AND DEBRA CRESTA. THE EXETER HEALTH RESOURCES BOARD AND/OR ITS EXECUTIVE COMMITTEE APPROVES MEASUREABLE ACHIEVEMENT CRITERIA FOR QUALITY, PATIENT SATISFACTION, PROCESS IMPROVEMENT, FINANCIAL PERFORMANCE, SERVICES INNOVATION AND OTHER COMPELLING AREAS OF STRATEGIC AND OPERATIONAL INTEREST. ADDITIONALLY THE EXETER HEALTH RESOURCES BOARD AND/OR ITS EXECUTIVE COMMITTEE ESTABLISHES MINIMUM, TARGETED AND MAXIMUM LEVELS FOR INCENTIVE AWARDS AND APPROVES ALL AWARDS FOR PARTICIPATING EXECUTIVES. CORE PHYSICIANS' HAS A COMPENSATION PLAN THAT IS BASED UPON COMPETITIVE MARKET RATES RELATIVE TO A PHYSICIAN'S SPECIALTY. THE ORGANIZATION UTILIZES THE SERVICES OF AN OUTSIDE COMPENSATION CONSULTANT TO DETERMINE MARKET BENCHMARKS. TOTAL COMPENSATION CONSISTS OF A BASE SALARY, A POTENTIAL FOR A PRODUCTIVITY BONUS, AN ON-CALL STIPEND (IF APPLICABLE), A MEDICAL DIRECTORSHIP STIPEND (IF APPLICABLE), A CITIZENSHIP AND QUALITY PAYMENT THAT IS EARNED BASED UPON THE ACHIEVEMENT OF OBJECTIVES SET IN ADVANCE. THE PRODUCTIVITY BONUS IS BASED ON WORK RELATIVE VALUE UNITS (WRVU) PRODUCTION AND WOULD BE ELIGIBLE TO ANYONE WHO PRODUCES WRVU'S ABOVE HIS OR HER BASE SALARY WRVU LEVEL. BASE COMPENSATION IS ALSO ADJUSTED IF WORK RELATIVE VALUE UNITS FALL BELOW THE BASE SALARY WRVU EQUIVALENCY LEVEL. THE PHYSICIANS' COMPENSATION IS APPROVED BY CORE PHYSICIANS, LLC'S COMPENSATION COMMITTEE WHICH IS COMPRISED OF SYSTEM MANAGERS WHO ARE APPROVED BY THE EXETER HEALTH RESOURCES BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 6 EXETER HEALTH RESOURCES, INC. IS THE SOLE MEMBER OF CORE PHYSICIANS, LLC. FORM 990, PART VI, SECTION A, LINE 7A CORE'S GOVERNING BODY IS MADE UP OF 2 CLASSES OF MANAGERS: SYSTEM MANAGERS AND CLINICIAN MANAGERS. THE 3 SYSTEM MANAGERS ARE THE PRESIDENT (EX-OFFICIO) AND TREASURER (EX-OFFICIO) OF EXETER HEALTH RESOURCES, INC. CORE'S SOLE MEMBER AND CORE'S CEO (EX-OFFICIO), WHO ARE APPOINTED BY THE EXETER HEALTH RESOURCES, INC. BOARD OF TRUSTEES. THE CLINICIAN MANAGERS ARE NOMINATED BY THE CORE CLINICIANS AND APPOINTMENT AS A CLINICIAN MANAGER IS SUBJECT TO THE APPROVAL OF THE EXETER HEALTH RESOURCES, INC. BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 7B THE SOLE MEMBER HAS THE AUTHORITY TO APPROVE BUDGETS, AUTHORIZE MAJOR NON-OPERATIONAL TRANSACTIONS, DISSOLVE THE LLC, DESIGNATE THE FISCAL YEAR AND APPOINT A CPA FOR THE CONDUCT OF AN AUDIT, CHANGE THE LLC'S NAME, AMEND THE OPERATING AGREEMENT AND REQUIRE THE LLC TO COMPLY WITH CERTAIN POLICIES AND PROCEDURES OF THE MEMBER FOR GOVERNANCE OF THE SYSTEM. FORM 990, PART VI, SECTION B, LINE 11 THE 990 IS PREPARED BY AN OUTSIDE TAX ACCOUNTANT WITH INFORMATION PROVIDED BY THE ORGANIZATION. THE 990 IS REVIEWED BY THE ORGANIZATION'S TREASURER AND THEN PRESENTED TO THE SYSTEM MANAGERS AND CLINICAL MANAGERS BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE SYSTEM MANAGERS HAVE ADOPTED A CONFLICT OF INTEREST POLICY THAT REQUIRES THE DISCLOSURE OF CONFLICTS OF INTEREST EITHER WHEN THE INTEREST BECOMES A MATTER OF POSSIBLE ACTION BY THE BOARD OR DURING AN ANNUAL DISCLOSURE PROCESS. DIRECTORS (A/K/A MANAGERS), OFFICERS, AND KEY EMPLOYEES, AS WELL AS ALL MEMBERS OF SENIOR MANAGEMENT, ARE PART OF THE ANNUAL DISCLOSURE PROCESS, WHICH IS INITIATED BY THE ISSUANCE OF A MEMORANDUM AND ACCOMPANYING QUESTIONNAIRE BY THE PRESIDENT. ALL DISCLOSURES ARE REVIEWED. ANY MANAGER WITH A CONFLICT OF INTEREST IS REQUIRED TO ABSTAIN FROM VOTING OR A QUORUM DETERMINATION ON THE MATTER AND ANY OFFICER, KEY EMPLOYEE, OR MEMBER OF SENIOR MANAGEMENT WITH A CONFLICT DOES NOT TAKE PART IN MAKING AND IS NOT PRESENT FOR ANY DECISION REGARDING THE MATTER. THE POLICY IS MONITORED AND ENFORCED BY BOTH THE PRESIDENT AND THE FULL BOARD. A SEPARATE ORGANIZATIONAL POLICY REQUIRES ALL EMPLOYEES TO DISCLOSE ANY CONFLICT OF INTEREST IN WRITING UPON HIRE. THEREAFTER, ON AN ANNUAL BASIS STAFF WITHIN HUMAN RESOURCES SURVEY (A) ALL PROVIDERS, (B) ALL EMPLOYEES AND CONTRACTED STAFF SERVING IN A MANAGERIAL ROLE, AND (C) ALL MEMBERS OF ANY COMMITTEES WHICH MAKE RECOMMENDATIONS OR DECISIONS REGARDING THE PURCHASE OF GOODS OR SERVICES AS A MEANS TO ENSURE THAT ANY CONFLICT OF INTEREST IS APPROPRIATELY DISCLOSED AND MANAGED. EMPLOYEES OTHERWISE ARE REQUIRED TO SUPPLEMENT OR MAKE ANY FURTHER WRITTEN DISCLOSURE AT THE TIME A CONFLICT ARISES. THIS POLICY IS MONITORED AND ENFORCED BY THE DEPARTMENT OF HUMAN RESOURCES, AS WELL AS CORE'S PRESIDENT AND COMPLIANCE OFFICER. ANY CONFLICT OF INTEREST IS MANAGED UNDER THIS POLICY BY DISCLOSURE, RECUSAL, OR DIVESTITURE OF THE INTEREST. FORM 990, PART VI, SECTION B, LINE 15 THE ORGANIZATION'S PARENT (EXETER HEALTH RESOURCES) HAS A FORMAL PROCESS FOR DETERMINING TOTAL COMPENSATION FOR THE CORE PRESIDENT AND OTHER SYSTEM MANAGERS THAT IS INTENDED TO PROVIDE REASONABLE COMPENSATION FOR ACHIEVING THE ORGANIZATION'S MISSION, TO RECOGNIZE INDIVIDUAL AND TEAM PERFORMANCE, AND TO COMPLY WITH THE ORGANIZATION'S OBLIGATIONS AS A TAX-EXEMPT CHARITABLE ORGANIZATION. THE EXECUTIVE COMMITTEE OF THE EXETER HEALTH RESOURCES' BOARD OF TRUSTEES CONDUCTS AN ANNUAL REVIEW OF THE COMPENSATION OF THE CORE PRESIDENT AND OTHER LISTED SYSTEM MANAGERS. IN DOING SO, THE COMMITTEE RETAINS A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT TO CONDUCT COMPETITIVE MARKET ANALYSIS OF THE MARKET RANGES OF BASE, INCENTIVE, AND TOTAL CASH COMPENSATION, AND TO PROVIDE ADVICE CONCERNING THE REASONABLENESS OF THE COMPENSATION OF THE CORE PRESIDENT AND OTHER SYSTEM MANAGERS. THE EXETER HEALTH RESOURCES EXECUTIVE COMMITTEE UTILIZES THAT ANALYSIS AND OTHER APPROPRIATE INFORMATION IN CONNECTION WITH ITS ANNUAL REVIEW OF THE COMPENSATION OF THE CORE PRESIDENT AND CORE'S OTHER SYSTEM MANAGERS. INFORMATION WHICH THE COMMITTEE MAY CONSIDER CAN INCLUDE BUT IS NOT LIMITED TO THE PERFORMANCE OF THE CORE PRESIDENT AND OTHER SYSTEM MANAGERS INDIVIDUALLY OR COLLECTIVELY AS EXECUTIVE MANAGEMENT TEAM MEMBERS, THE PERFORMANCE OF THE ORGANIZATION IN WHOLE AND IN PART, THE ELEMENTS OF TOTAL COMPENSATION AND SALARY HISTORY, THE ORGANIZATION'S COMPENSATION TARGETS AND COMPARABILITY DATA, INCLUDING THE DATA PREPARED BY THE INDEPENDENT CONSULTANT AND REVIEWED WITH THE COMMITTEE. THE COMMITTEE INCORPORATES A PERFORMANCE APPRAISAL PROCESS FOR THE CORE PRESIDENT AND OTHER SYSTEM MANAGERS' COMPENSATION REVIEW. CORE'S PRESIDENT AND OTHER SYSTEM MANAGERS ARE NOT PRESENT WHEN THE EXECUTIVE COMMITTEE DISCUSSES THEIR RESPECTIVE COMPENSATION. IN ADDITION, THE EXECUTIVE COMMITTEE DETERMINES IF THE THRESHOLD REQUIREMENTS FOR INCENTIVE AWARDS ARE MET CONSISTING OF THE ORGANIZATION'S PERFORMANCE RESULTS FOR QUALITY, OPERATING SYSTEM EXCELLENCE AND FINANCIAL PERFORMANCE. FOR THE PRESIDENT OF CORE, THE EXECUTIVE COMMITTEE CONSIDERS THE RECOMMENDATIONS OF THE SYSTEM MANAGER WHO IS THE PRESIDENT OF THE MEMBER (EXETER HEALTH RESOURCES, INC.) CONCERNING COMPENSATION ADJUSTMENTS AND INCENTIVE AWARDS; THE EXECUTIVE COMMITTEE THEN DETERMINES CORE'S PRESIDENT'S COMPENSATION. FOR THE SYSTEM MANAGER WHO IS THE TREASURER OF THE MEMBER (EXETER HEALTH RESOURCES, INC.), THAT SYSTEM MANAGER'S COMPENSATION IS CONSIDERED BY THE EXECUTIVE COMMITTEE UPON RECOMMENDATION OF THE MEMBER'S (EXETER HEALTH RESOURCES, INC.) PRESIDENT. THE EXECUTIVE COMMITTEE THEN DETERMINES THAT SYSTEM MANAGER'S COMPENSATION WHICH IS SUBSEQUENTLY RATIFIED BY THE BOARD OF TRUSTEES OF THE MEMBER (EXETER HEALTH RESOURCES, INC.). FOR THE SYSTEM MANAGER WHO IS THE PRESIDENT OF THE MEMBER (EXETER HEALTH RESOURCES, INC.), THAT SYSTEM MANAGER'S COMPENSATION IS CONSIDERED BY THE EXECUTIVE COMMITTEE AND THE COMMITTEE MAKES RECOMMENDATIONS CONCERNING THAT SYSTEM MANAGER'S COMPENSATION TO THE BOARD OF TRUSTEES OF THE MEMBER (EXETER HEALTH RESOURCES, INC.) FOR ITS APPROVAL. THE EXECUTIVE COMMITTEE OF THE MEMBER'S BOARD OF TRUSTEES AND THE BOARD OF TRUSTEES OF THE MEMBER CONSIDER WHETHER THE COMPENSATION ADJUSTMENTS AND PERFORMANCE AWARDS ARE IN THE ORGANIZATION'S BEST INTEREST AND BENEFIT AND COMPLY WITH BOARD OF TRUSTEES APPROVED PARAMETERS. THE COMPENSATION OF THE CORE PHYSICIANS' CHAIRMAN AND OTHER CLINICIAN MANAGERS IS GOVERNED BY THE CORE PHYSICIANS' COMPENSATION PLAN WHICH IS APPROVED SOLELY BY THE SYSTEM MANAGERS (CORE'S PRESIDENT, PRESIDENT OF THE MEMBER AND TREASURER OF THE MEMBER). THE SYSTEM MANAGERS REVIEW COMPARABILITY DATA PREPARED BY A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT WHEN APPROVING COMPENSATION OF THE CLINICIAN MANAGERS INCLUDING THE CHAIRMAN OF CORE. THE SYSTEM MANAGERS CONSIDER WHETHER THE COMPENSATION OF THE CLINICIAN MANAGERS (INCLUDING THE CHAIRMAN OF CORE) AND ANY ADJUSTMENTS TO COMPENSATION ARE IN THE ORGANIZATION'S BEST INTEREST AND BENEFIT AND IN COMPLIANCE WITH CORE PHYSICIAN'S COMPENSATION PLAN. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: TRANSFERS FROM AFFILIATES 13,502,854. EXETER HEALTH RESOURCES INC 5 ALUMNI DRIVE EXETER NH 03833 020222126 MANAGEMENT AND SUPPORTING ORGANIZATION, HOLDING COMPANY NH 501(C)(3) 11 0 EXETER HOSPITAL 5 ALUMNI DRIVE EXETER NH 03833 222674014 HOSPITAL NH 501(C)(3) 3 EXETER HEALTH RESOURCES INC 0 ROCKINGHAM VISITING NURSE ASSOC 5 ALUMNI DRIVE EXETER NH 03833 020274905 HOME CARE, HOSPICE NH 501(C)(3) 9 EXETER HEALTH RESOURCES INC 0 MATRIX HEALTH 5 ALUMNI DRIVE EXETER NH 03833 020473737 MANAGE RESOURCES NH 501(C)(3) 11 EXETER HEALTH RESOURCES INC 0 EXETER MED REAL 5 ALUMNI DRIVE EXETER NH 03833 020418718 REAL ESTATE HOLDING NH 501(C)(25) EXETER HEALTH RESOURCES INC 0 EXETER HEALTH RESOURCES SELF INS TRUST 5 ALUMNI DRIVE EXETER NH 03833 200753662 SELF INSURANCE TRUST NH 501(C)(3) 11 EXETER HEALTH RESOURCES INC 0 CONVERGENT HEALTH SYSTEMS INC 5 ALUMNI DRIVE EXETER NH 03833 020469711 WELLNESS CENTER NH EXETER HEALTH RESOURCES INC C 0 VX HEALTH SERVICES 5 ALUMNI DRIVE EXETER NH 03833 020469712 INACTIVE FITNESS CENTER NH CONVERGENT HEALTH SYSTEMS INC C 0 EXETER MEDICAL SERVICES 5 ALUMNI DRIVE EXETER NH 03833 020419850 INACTIVE PHYSICIAN PRACTICE NH CONVERGENT HEALTH SYSTEMS INC C 0 CORE HEALTH SERVICES OF MA 5 ALUMNI DRIVE EXETER NH 03833 201598042 INACTIVE PHYSICIAN PRACTICE MA EXETER HEALTH RESOURCES INC C 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 0 1 0 1 EXETER MED REAL K 2375906 CASH