SCAN HEALTH PLAN ARIZONA: Form 990, tax year 2011

View the entire original 990 at ProPublica ↗

Organization: SCAN HEALTH PLAN ARIZONA (EIN 73-1729007)
Tax period: 2011-01-01 to 2011-12-31
Filed: 2012-11-15
IRS object ID: 201213209349302936
Schema version: 2011v1.2
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule D
Schedule J
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Timestamp	2012-11-15T10:59:37-06:00	Timestamp
Tax Period End Date	2011-12-31	TaxPeriodEndDate

Preparer Firm PreparerFirm

Field	Value	IRS element (for citing)
EIN	861065772	EIN

Preparer Firm Business Name PreparerFirmBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	DELOITTE TAX LLP	BusinessNameLine1

Preparer Firm US Address PreparerFirmUSAddress

Field	Value	IRS element (for citing)
Address Line1	655 WEST BROADWAY SUITE 700	AddressLine1
City	SAN DIEGO	City
State	CA	State
ZIP Code	921018590	ZIPCode

Field	Value	IRS element (for citing)
Return Type	990	ReturnType
Tax Period Begin Date	2011-01-01	TaxPeriodBeginDate

Filer Filer

Field	Value	IRS element (for citing)
EIN	731729007	EIN

Name Name

Field	Value	IRS element (for citing)
Business Name Line1	SCAN HEALTH PLAN ARIZONA	BusinessNameLine1

Field	Value	IRS element (for citing)
Name Control	SCAN	NameControl
Phone	5629895100	Phone

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	3800 KILROY AIRPORT WAY NO 100	AddressLine1
City	LONG BEACH	City
State	CA	State
ZIP Code	908065616	ZIPCode

Officer Officer

Field	Value	IRS element (for citing)
Name	ELIZABETH RUSSELL	Name
Title	CEO	Title
Phone	5629895100	Phone
Date Signed	2012-11-15	DateSigned
Authorize Third Party	1	AuthorizeThirdParty

Preparer Preparer

Field	Value	IRS element (for citing)
Name	DIANA J MCCUTCHEN	Name
PTIN	P00545657	PTIN
Phone	6192326500	Phone

Field	Value	IRS element (for citing)
Tax Year	2011	TaxYear
Build TS	2016-02-24 21:20:13Z	BuildTS

Form 990 IRS990

Field	Value	IRS element (for citing)
Name Of Principal Officer Person	ELIZABETH RUSSELL	NameOfPrincipalOfficerPerson

Address Principal Officer US AddressPrincipalOfficerUS

Field	Value	IRS element (for citing)
Address Line1	3800 KILROY AIRPORT WAY NO 100	AddressLine1
City	LONG BEACH	City
State	CA	State
ZIP Code	908065616	ZIPCode

Field	Value	IRS element (for citing)
Gross Receipts	164282258	GrossReceipts
Group Return For Affiliates	0	GroupReturnForAffiliates
Organization501c	X	Organization501c
Web Site	WWW.SCANHEALTHPLAN.COM/ARIZONA/MEDICARE/	WebSite
Type Of Organization Corporation	X	TypeOfOrganizationCorporation
Year Formation	2006	YearFormation
State Legal Domicile	AZ	StateLegalDomicile
Activity Or Mission Description	TO SERVE AND TO IMPROVE THE LIVES OF THE FRAIL, ELDERLY AND DISABLED RESIDENTS OF ARIZONA.	ActivityOrMissionDescription
Nbr Voting Members Governing Body	3	NbrVotingMembersGoverningBody
Nbr Independent Voting Members	0	NbrIndependentVotingMembers
Total Nbr Employees	217	TotalNbrEmployees
Total Nbr Volunteers	0	TotalNbrVolunteers
Total Gross UBI	0	TotalGrossUBI
Net Unrelated Business Txbl Income	0	NetUnrelatedBusinessTxblIncome
Contributions Grants Prior Year	0	ContributionsGrantsPriorYear
Contributions Grants Current Year	0	ContributionsGrantsCurrentYear
Program Service Revenue Prior Year	57916933	ProgramServiceRevenuePriorYear
Program Service Revenue CY	164040421	ProgramServiceRevenueCY
Investment Income Prior Year	168653	InvestmentIncomePriorYear
Investment Income Current Year	241837	InvestmentIncomeCurrentYear
Other Revenue Prior Year	0	OtherRevenuePriorYear
Other Revenue Current Year	0	OtherRevenueCurrentYear
Total Revenue Prior Year	58085586	TotalRevenuePriorYear
Total Revenue Current Year	164282258	TotalRevenueCurrentYear
Grants And Similar Amnts Prior Year	0	GrantsAndSimilarAmntsPriorYear
Grants And Similar Amnts CY	0	GrantsAndSimilarAmntsCY
Benefits Paid To Members Prior Year	0	BenefitsPaidToMembersPriorYear
Benefits Paid To Members CY	0	BenefitsPaidToMembersCY
Salaries Etc Prior Year	2026901	SalariesEtcPriorYear
Salaries Etc Current Year	2851978	SalariesEtcCurrentYear
Total Prof Fundrsng Exp Prior Year	0	TotalProfFundrsngExpPriorYear
Total Prof Fundrsng Exp CY	0	TotalProfFundrsngExpCY
Total Fundrsng Exp Current Year	0	TotalFundrsngExpCurrentYear
Other Expense Prior Year	112927247	OtherExpensePriorYear
Other Expenses Current Year	158698955	OtherExpensesCurrentYear
Total Expenses Prior Year	114954148	TotalExpensesPriorYear
Total Expenses Current Year	161550933	TotalExpensesCurrentYear
Revenues Less Expenses Prior Year	-56868562	RevenuesLessExpensesPriorYear
Revenues Less Expenses CY	2731325	RevenuesLessExpensesCY
Total Assets BOY	33787805	TotalAssetsBOY
Total Assets EOY	68565984	TotalAssetsEOY
Total Liabilities BOY	59440555	TotalLiabilitiesBOY
Total Liabilities EOY	91156327	TotalLiabilitiesEOY
Net Assets Or Fund Balances BOY	-25652750	NetAssetsOrFundBalancesBOY
Net Assets Or Fund Balances EOY	-22590343	NetAssetsOrFundBalancesEOY
Info In Schedule O Part III	X	InfoInScheduleOPartIII
Mission Description	TO SERVE AND IMPROVE THE LIVES OF THE FRAIL, ELDERLY AND DISABLED RESIDENTS OF ARIZONA BY PROVIDING MEDICAL AND PHARMACY SERVICES, COORDINATED CARE, SOCIAL SERVICES AND OTHER SERVICES TO A GERIATRIC AND DISABLED POPULATION THAT IS UNDERSERVED AND AT RISK.	MissionDescription
Significant New Program Services	0	SignificantNewProgramServices
Significant Change	0	SignificantChange
Expense	148876920	Expense
Revenue	164040421	Revenue
Description	THE ARIZONA COMPANIES, SCAN HEALTH PLAN ARIZONA, A MEDICARE ADVANTAGE CONTRACTOR, AND SCAN LONG TERM CARE, A PROGRAM CONTRACTOR TO THE ARIZONA LONG TERM CARE SYSTEM (ALTCS) COMPONENT OF THE ARIZONA HEALTH CARE COST CONTAINMENT SYSTEM (AHCCCS), THE STATE MEDICAID PROGRAM, ARE NON-PROFIT MANAGED CARE ORGANIZATIONS THAT WERE CREATED TO SERVE THE HEALTH CARE AND INDEPENDENCE NEEDS OF THE SENIOR AND PHYSICALLY DISABLED CITIZENS OF MARICOPA COUNTY, ARIZONA. THE SHARED MISSION OF THE ARIZONA COMPANIES IS TO FIND INNOVATIVE WAYS TO ENHANCE THE BENEFICIARIES' ABILITY TO MANAGE THEIR HEALTH AND EXERT CONTROL OVER WHERE AND HOW THEY LIVE. WE WILL ACHIEVE THAT MISSION BY DEVELOPING PARTNERSHIPS THAT ALLOW US TO DELIVER THE RIGHT HEALTH CARE, IN THE RIGHT SETTING, AND AT THE RIGHT COST WHILE MAXIMIZING THE MEMBERS' ABILITY TO REMAIN AS INDEPENDENT AS POSSIBLE. OUR GOAL IS TO BECOME THE LEADING GERIATRIC AND PHYSICALLY DISABLED HEALTH MANAGEMENT ENTERPRISE IN MARICOPA COUNTY.SCAN LONG TERM CARE WAS SELECTED AS AN ALTCS PROGRAM CONTRACTOR IN MAY, 2006 AND BEGAN PROGRAM OPERATIONS ON OCTOBER 1, 2006. THE PLAN IS RESPONSIBLE FOR ARRANGING, MANAGING AND MONITORING THE FULL RANGE OF HEALTH CARE SERVICES (PHYSICIAN, HOSPITAL, LAB, RADIOLOGY, DURABLE MEDICAL EQUIPMENT, ETC.), NOT OTHERWISE COVERED BY MEDICARE, HOME CARE SERVICES AND RESIDENTIAL CARE SERVICES REQUIRED BY THE ALTCS BENEFICIARIES ENROLLED IN SCAN. THE ALTCS PROGRAM IS DESIGNED TO SERVE THE NEEDS OF LOW INCOME ARIZONA CITIZENS AGE 65 OR OLDER, BLIND OR DISABLED AND IN NEED OF LONG TERM CARE SERVICES. THE ENROLLMENT OF PARTICIPANTS IN THE COMPANY'S MANAGED CARE PLAN INITIALLY BEGAN ON OCTOBER 1, 2006; THE CONTRACT WAS NOT RENEWED FOR THE NEW CONTRACT YEAR, WHICH BEGAN OCTOBER 1, 2011. THE COMPANY CONTINUED TO PARTICIPATE IN THE ALTCS PROGRAM ON A CAPPED CONTRACT BASIS. ON DECEMBER 22, 2011, THE COMPANY PROVIDED WRITTEN NOTICE TO AHCCCS TERMINATING THE ALTCS PROGRAM CONTRACT. ON JANUARY 23, 2012, AHCCCS NOTIFIED THE COMPANY THAT THE TERMINATION WOULD BE EFFECTIVE MAY 1, 2012. IT IS THE COMPANY'S INTENT TO SUSTAIN POSITIVE WORKING CAPITAL AND LIQUIDITY TO MEET ALL FINANCIAL OBLIGATIONS THROUGHOUT THE TRANSITION PERIOD TO CONCLUDE THE PROGRAM.SCAN HEALTH PLAN ARIZONA BEGAN PROGRAM OPERATIONS AS A MEDICARE ADVANTAGE CONTRACTOR EFFECTIVE JANUARY 1, 2007. IT IS RESPONSIBLE FOR ARRANGING AND MONITORING THE FULL RANGE OF MEDICARE HEALTH SERVICES FOR PLAN ENROLLEES. THE PLAN BEGAN OFFERING A MEDICARE ADVANTAGE SPECIAL NEEDS PLAN (SNP) FOR BENEFICIARIES WHO ARE DUALLY ELIGIBLE AND ENROLLED IN BOTH THE MEDICARE AND ALTCS PROGRAMS. BEGINNING JANUARY 1, 2009, THE PLAN EXPANDED ITS MEDICARE ADVANTAGE PARTICIPATION TO OTHER MEDICARE BENEFICIARY POPULATIONS, THROUGH A MEDICARE ADVANTAGE PRESCRIPTION DRUG (MAPD) PLAN.IN JANUARY 2008 THE ARIZONA COMPANIES LAUNCHED THE SCAN CONNECTIONS COMMUNITY RESOURCE CENTER DESIGNED TO LINK SCAN MEMBERS, THEIR CAREGIVERS AND OTHERS IN THE MARICOPA COUNTY COMMUNITIES WITH KNOWLEDGEABLE STAFF WHO CAN ASSIST IN NAVIGATING A COMPLEX HEALTH CARE SYSTEM. THE RESOURCE CENTER STAFF BUILD BRIDGES INTO OTHER COMMUNITY ORGANIZATIONS, GOVERNMENTAL AGENCIES AND HEALTH ADVOCACY GROUPS TO PROVIDE TO THE COMMUNITY HEALTH EDUCATION AND SUPPORT SERVICES FOCUSED ON GERIATRIC, CHRONIC ILLNESS AND PHYSICALLY DISABLED CHALLENGES. SERVICES AND RESOURCES ARE PROVIDED AT THE SCAN CONNECTIONS RESOURCE CENTER IN SCAN'S OFFICE AND AT REMOTE COMMUNITY SITES.SCAN HEALTH PLAN ARIZONA HAS GROWN FROM NO MEMBERSHIP AT DECEMBER 31, 2006 AND CURRENTLY SERVES MORE THAN 13,936 ENROLLEES. THE ADDITION OF THE SCAN CLASSIC AND SCAN CONNECTIONS PROGRAMS ALLOW SCAN PERSONNEL, ESPECIALLY THE CASE MANAGEMENT TEAM, TO MORE EFFECTIVELY COORDINATE THE NEEDED HEALTH CARE SERVICES REQUIRED BY SCAN MEMBERS. FROM THE START OF OPERATIONS, THE ARIZONA COMPANIES HAVE DEVOTED NEARLY 98% OF ITS REVENUE TO THE DIRECT PROVISION OF HEALTH CARE, HOME AND COMMUNITY BASED SERVICES AND LONG TERM CARE RESIDENTIAL SERVICES. THIS REPRESENTS MORE THAN $769 MILLION OF DIRECT CARE SERVICES FOR THESE MEDICARE AND MEDICAID ENROLLEES. OF THE TOTAL AMOUNT PAID FOR MEDICAL AND RESIDENTIAL SERVICES, APPROXIMATELY 33.9% WAS DIRECTED TO LONG TERM CARE RESIDENTIAL SERVICE PROVIDERS, 21.3% WAS DIRECTED TO HOME AND COMMUNITY BASED SERVICE PROVIDERS, AND 42.1% WAS DIRECTED TO OTHER MEDICAL SERVICE PROVIDERS AND THE REMAINING 2.6% WAS DIRECTED TO CASE MANAGEMENT COORDINATION SERVICES.	Description
Total Program Service Expense	148876920	TotalProgramServiceExpense
Described In501 C3	0	DescribedIn501C3
Schedule B Required	0	ScheduleBRequired
Political Activities	0	PoliticalActivities
Subject To Proxy Tax	0	SubjectToProxyTax
Donor Advised Funds	0	DonorAdvisedFunds
Conservation Easements	0	ConservationEasements
Collections Of Art	0	CollectionsOfArt
Credit Counseling	0	CreditCounseling
Term Or Permanent Endowments	0	TermOrPermanentEndowments
Report Land Bldg Equip	1	ReportLandBldgEquip
Report Invest Oth Securities	1	ReportInvestOthSecurities
Report Prog Rel Invest	0	ReportProgRelInvest
Report Other Assets	0	ReportOtherAssets
Report Other Liabilities	1	ReportOtherLiabilities
Report Fin48 Footnote	0	ReportFin48Footnote
Independent Audit Financial Stmt	0	IndependentAuditFinancialStmt
Consolidated Audit Financial Stmt	1	ConsolidatedAuditFinancialStmt
School	0	School
Foreign Office	0	ForeignOffice
Foreign Activities	0	ForeignActivities
More Than5000 K To Organizations	0	MoreThan5000KToOrganizations
More Than5000 K To Individuals	0	MoreThan5000KToIndividuals
Professional Fundraising	0	ProfessionalFundraising
Fundraising Activities	0	FundraisingActivities
Gaming	0	Gaming
Hospital	0	Hospital
Grants To Organizations	0	GrantsToOrganizations
Grants To Individuals	0	GrantsToIndividuals
Schedule J Required	1	ScheduleJRequired
Tax Exempt Bonds	0	TaxExemptBonds
Excess Benefit Transaction	0	ExcessBenefitTransaction
Prior Excess Benefit Transaction	0	PriorExcessBenefitTransaction
Loan To Officer Or DQP	0	LoanToOfficerOrDQP
Grant To Related Person	0	GrantToRelatedPerson
Bsnss Rltnshp With Organization	0	BsnssRltnshpWithOrganization
Bsnss Rltnshp Thru Family Member	0	BsnssRltnshpThruFamilyMember
Officer Entity With Bsnss Rltnshp	0	OfficerEntityWithBsnssRltnshp
Deductible Non Cash Contributions	0	DeductibleNonCashContributions
Deductible Contributions Of Art	0	DeductibleContributionsOfArt
Terminated	0	Terminated
Partial Liquidation	0	PartialLiquidation
Disregarded Entity	0	DisregardedEntity
Related Entity	1	RelatedEntity
Related Org Controlled Entity	1	RelatedOrgControlledEntity
Transaction Related Entity	1	TransactionRelatedEntity
Activities Conducted Partnership	0	ActivitiesConductedPartnership
Schedule O Required	1	ScheduleORequired
Number Forms Transmitted With1096	2457	NumberFormsTransmittedWith1096
Number W2 G Included	0	NumberW2GIncluded
Compliance With Backup Witholding	1	ComplianceWithBackupWitholding
Number Of Employees	217	NumberOfEmployees
Employment Tax Returns Filed	1	EmploymentTaxReturnsFiled
Unrelated Business Income	0	UnrelatedBusinessIncome
Foreign Financial Account	0	ForeignFinancialAccount
Prohibited Tax Shelter Trans	0	ProhibitedTaxShelterTrans
Taxable Party Notification	0	TaxablePartyNotification
Non Deductible Contributions	0	NonDeductibleContributions
Quid Pro Quo Contributions	0	QuidProQuoContributions
Form8282 Property Disposed Of	0	Form8282PropertyDisposedOf
Funds To Pay Premiums	0	FundsToPayPremiums
Premiums Paid	0	PremiumsPaid
Indoor Tanning Services	0	IndoorTanningServices
Info In Schedule O Part VI	X	InfoInScheduleOPartVI
Nbr Voting Governing Body Members	3	NbrVotingGoverningBodyMembers
Number Independent Voting Members	0	NumberIndependentVotingMembers
Family Or Business Relationship	0	FamilyOrBusinessRelationship
Delegation Of Management Duties	0	DelegationOfManagementDuties
Changes To Organizing Docs	0	ChangesToOrganizingDocs
Material Diversion Or Misuse	0	MaterialDiversionOrMisuse
Members Or Stockholders	1	MembersOrStockholders
Election Of Board Members	1	ElectionOfBoardMembers
Decisions Subject To Approval	0	DecisionsSubjectToApproval
Minutes Of Governing Body	1	MinutesOfGoverningBody
Minutes Of Committees	1	MinutesOfCommittees
Officer Mailing Address	0	OfficerMailingAddress
Local Chapters	0	LocalChapters
Form990 Provided To Governing Body	1	Form990ProvidedToGoverningBody
Conflict Of Interest Policy	1	ConflictOfInterestPolicy
Annual Disclosure Covered Persons	1	AnnualDisclosureCoveredPersons
Regular Monitoring Enforcement	1	RegularMonitoringEnforcement
Whistleblower Policy	1	WhistleblowerPolicy
Document Retention Policy	1	DocumentRetentionPolicy
Compensation Process CEO	1	CompensationProcessCEO
Compensation Process Other	1	CompensationProcessOther
Investment In Joint Venture	0	InvestmentInJointVenture
States Where Copy Of Return Is Filed	AZ	StatesWhereCopyOfReturnIsFiled
Upon Request	X	UponRequest

The Books Are In Care Of TheBooksAreInCareOf

Name Business NameBusiness

Field	Value	IRS element (for citing)
Business Name Line1	VIRGINIA HAVAI	BusinessNameLine1

Field	Value	IRS element (for citing)
Telephone Number	5629895100	TelephoneNumber

Address US AddressUS

Field	Value	IRS element (for citing)
Address Line1	3800 KILROY AIRPORT WAY	AddressLine1
City	LONG BEACH	City
State	CA	State
ZIP Code	90806	ZIPCode

Field	Value	IRS element (for citing)
Info In Schedule O Part VII	X	InfoInScheduleOPartVII

Form990 Part VII Section A Form990PartVIISectionA (16 entries)

TitleTitle	Average Hours Per WeekAverageHoursPerWeek	Individual Trustee Or DirectorIndividualTrusteeOrDirector	OfficerOfficer	Reportable Comp From OrganizationReportableCompFromOrganization	Reportable Comp From Related OrgsReportableCompFromRelatedOrgs	Other CompensationOtherCompensation	Key EmployeeKeyEmployee	Highest Compensated EmployeeHighestCompensatedEmployee	FormerFormer
ELIZABETH RUSSELL
CHIEF EXECUTIVE OFFICER	5.00	X	X	0	487331	81495
DENNIS EDER
OUTGOING DIRECTOR	0.40	X		0	1322329	31361
RYAN TRIMBLE
DIRECTOR	0.40	X		0	921522	10976
DOUGLAS JAQUES
DIRECTOR,SECRETARY	5.00	X	X	0	416260	79903
RANDY STONE
CHIEF FINANCIAL OFFICER	5.00		X	0	226899	15107
DAVE FIRDAUS
CHIEF OPERATING OFFICER	5.00		X	144474	0	7647
RAJEEV NARULA
OUTGOING CHIEF FINANCIAL OFFICER	5.00		X	0	301809	41528
REBECCA LEARNER
SR. VP COMPLIANCE	5.00			0	299150	40739	X
MAUREEN MCGUIRRIN
OUTGOING VP OPERATIONS	40.00			395905	0	24174	X
GILBERT MILLER
SR. VP NATIONAL SALES	40.00			0	257055	486	X
THOMAS HOEHNER
VICE PRESIDENT, NETWORK MANAGEMENT	40.00			275777	0	11356		X
MARTIN GIBSON
CHIEF ACTUARY	40.00			0	211517	26058		X
JOEY ZEPEDA
VP CASE MANAGEMENT	40.00			185256	0	35729		X
RICHARD PEITZMEIER
VP MEMBERSHIP SALES	40.00			152900	0	19643		X
TINA GRAHAM
VP COMPLIANCE	40.00			182913	0	13324		X
THOMAS LESCAULT
FORMER PRESIDENT	0.00			252671	0	11809			X

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	1589896	TotalReportableCompFromOrg
Total Reportable Comp Frm Rltd Orgs	4443872	TotalReportableCompFrmRltdOrgs
Total Other Compensation	451335	TotalOtherCompensation
Number Individuals GT100 K	10	NumberIndividualsGT100K
Formers Listed	1	FormersListed
Total Comp GT150 K	1	TotalCompGT150K
Compensation From Other Sources	0	CompensationFromOtherSources

Contractor Compensation ContractorCompensation (5 entries)

Address Line1AddressOfContractor/AddressUS/AddressLine1	CityAddressOfContractor/AddressUS/City	StateAddressOfContractor/AddressUS/State	ZIP CodeAddressOfContractor/AddressUS/ZIPCode	Description Of ServicesDescriptionOfServices	CompensationCompensation
EXPRESS SCRIPTS INC
21653 NETWORK PLACE	CHICAGO	IL	606731216	MEDICAL SERVICES	24249466
JOHN C LINCOLN NORTH MOUNTAIN HOSPITAL
250 E DUNLAP AVENUE	PHOENIX	AZ	85020	MEDICAL SERVICES	6123207
BANNER BOSWELL MEDICAL CENTER
PO BOX 29693	PHOENIX	AZ	850389693	MEDICAL SERVICES	4706535
SCOTTSDALE HEALTHCARE HOSPITAL
PO BOX 29682	PHOENIX	AZ	850389682	MEDICAL SERVICES	4433522
BANNER BAYWOOD MEDICAL CENTER
POBOX 2978	PHOENIX	AZ	85062	MEDICAL SERVICES	4359394

Field	Value	IRS element (for citing)
Number Of Contractors GT100 K	182	NumberOfContractorsGT100K

Program Service Revenue ProgramServiceRevenue (2 entries)

DescriptionDescription	Business CodeBusinessCode	Total Revenue ColumnTotalRevenueColumn	Related Or Exempt Function IncomeRelatedOrExemptFunctionIncome
MEDICARE PREMIUM	900099	137285759	137285759
PREMIUM RESERVE	900099	26754662	26754662

Field	Value	IRS element (for citing)
Total Program Service Revenue	164040421	TotalProgramServiceRevenue

Investment Income InvestmentIncome

Field	Value	IRS element (for citing)
Total Revenue Column	241837	TotalRevenueColumn
Exclusion	$241,837	ExclusionAmount

Total Revenue TotalRevenue

Field	Value	IRS element (for citing)
Total Revenue Column	164282258	TotalRevenueColumn
Related Or Exempt Function Income	164040421	RelatedOrExemptFunctionIncome
Unrelated Business Revenue	0	UnrelatedBusinessRevenue
Exclusion	$241,837	ExclusionAmount

Comp Current Officers Directors CompCurrentOfficersDirectors

Field	Value	IRS element (for citing)
Total	161164	Total
Management And General	161164	ManagementAndGeneral

Other Salaries And Wages OtherSalariesAndWages

Field	Value	IRS element (for citing)
Total	2169558	Total
Program Services	1058343	ProgramServices
Management And General	1111215	ManagementAndGeneral

Pension Plan Contributions PensionPlanContributions

Field	Value	IRS element (for citing)
Total	98606	Total
Program Services	41038	ProgramServices
Management And General	57568	ManagementAndGeneral

Other Employee Benefits OtherEmployeeBenefits

Field	Value	IRS element (for citing)
Total	241299	Total
Program Services	92816	ProgramServices
Management And General	148483	ManagementAndGeneral

Payroll Taxes PayrollTaxes

Field	Value	IRS element (for citing)
Total	181351	Total
Program Services	80847	ProgramServices
Management And General	100504	ManagementAndGeneral

Fees For Services Management FeesForServicesManagement

Field	Value	IRS element (for citing)
Total	4808208	Total
Program Services	776059	ProgramServices
Management And General	4032149	ManagementAndGeneral

Fees For Services Legal FeesForServicesLegal

Field	Value	IRS element (for citing)
Total	29186	Total
Management And General	29186	ManagementAndGeneral

Fees For Services Accounting FeesForServicesAccounting

Field	Value	IRS element (for citing)
Total	102488	Total
Management And General	102488	ManagementAndGeneral

Fees For Services Other FeesForServicesOther

Field	Value	IRS element (for citing)
Total	6852816	Total
Program Services	1357102	ProgramServices
Management And General	5495714	ManagementAndGeneral

Advertising Advertising

Field	Value	IRS element (for citing)
Total	831637	Total
Program Services	1471	ProgramServices
Management And General	830166	ManagementAndGeneral

Office Expenses OfficeExpenses

Field	Value	IRS element (for citing)
Total	97062	Total
Program Services	7808	ProgramServices
Management And General	89254	ManagementAndGeneral

Information Technology InformationTechnology

Field	Value	IRS element (for citing)
Total	14966	Total
Program Services	5673	ProgramServices
Management And General	9293	ManagementAndGeneral

Occupancy Occupancy

Field	Value	IRS element (for citing)
Total	107806	Total
Management And General	107806	ManagementAndGeneral

Travel Travel

Field	Value	IRS element (for citing)
Total	113378	Total
Program Services	9576	ProgramServices
Management And General	103802	ManagementAndGeneral

Conferences Meetings ConferencesMeetings

Field	Value	IRS element (for citing)
Total	13987	Total
Program Services	1460	ProgramServices
Management And General	12527	ManagementAndGeneral

Depreciation Depletion DepreciationDepletion

Field	Value	IRS element (for citing)
Total	70031	Total
Program Services	35793	ProgramServices
Management And General	34238	ManagementAndGeneral

Other Expenses OtherExpenses (4 entries)

DescriptionDescription	TotalTotal	Program ServicesProgramServices	Management And GeneralManagementAndGeneral
MEDICAL SERVICES FOR EL	145392371	145392371	0
MANAGEMENT RECRUITMENT	142608	0	142608
OFFICE EQUIPMENTS	45585	5502	40083
TELECOMMUNICATIONS	33370	7441	25929

All Other Expenses AllOtherExpenses

Field	Value	IRS element (for citing)
Total	43456	Total
Program Services	3620	ProgramServices
Management And General	39836	ManagementAndGeneral

Total Functional Expenses TotalFunctionalExpenses

Field	Value	IRS element (for citing)
Total	161550933	Total
Program Services	148876920	ProgramServices
Management And General	12674013	ManagementAndGeneral
Fundraising	0	Fundraising

Cash Non Interest Bearing CashNonInterestBearing

Field	Value	IRS element (for citing)
BOY	24996948	BOY
EOY	57821209	EOY

Savings And Temp Cash Investments SavingsAndTempCashInvestments

Field	Value	IRS element (for citing)
BOY	14253	BOY
EOY	0	EOY

Accounts Receivable AccountsReceivable

Field	Value	IRS element (for citing)
BOY	1307583	BOY
EOY	3990162	EOY

Prepaid Expenses Deferred Charges PrepaidExpensesDeferredCharges

Field	Value	IRS element (for citing)
BOY	62594	BOY
EOY	38920	EOY

Field	Value	IRS element (for citing)
Land Buildings Equipment Basis	1951596	LandBuildingsEquipmentBasis
Land Bldg Equipment Accum Deprec	1613388	LandBldgEquipmentAccumDeprec

Land Buildings Equipment Basis Net LandBuildingsEquipmentBasisNet

Field	Value	IRS element (for citing)
BOY	700165	BOY
EOY	338208	EOY

Investments Other Securities InvestmentsOtherSecurities

Field	Value	IRS element (for citing)
BOY	5113886	BOY
EOY	5125006	EOY

Other Assets Total OtherAssetsTotal

Field	Value	IRS element (for citing)
BOY	1592376	BOY
EOY	1252479	EOY

Total Assets TotalAssets

Field	Value	IRS element (for citing)
BOY	33787805	BOY
EOY	68565984	EOY

Accounts Payable Accrued Expenses AccountsPayableAccruedExpenses

Field	Value	IRS element (for citing)
BOY	59042786	BOY
EOY	40320084	EOY

Deferred Revenue DeferredRevenue

Field	Value	IRS element (for citing)
BOY	105152	BOY
EOY	509309	EOY

Other Liabilities OtherLiabilities

Field	Value	IRS element (for citing)
BOY	292617	BOY
EOY	50326934	EOY

Total Liabilities TotalLiabilities

Field	Value	IRS element (for citing)
BOY	59440555	BOY
EOY	91156327	EOY

Field	Value	IRS element (for citing)
Follow SFAS117	X	FollowSFAS117

Unrestricted Net Assets UnrestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	-25652750	BOY
EOY	-22590343	EOY

Temporarily Restricted Net Assets TemporarilyRestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	0	BOY
EOY	0	EOY

Permanently Restricted Net Assets PermanentlyRestrictedNetAssets

Field	Value	IRS element (for citing)
BOY	0	BOY
EOY	0	EOY

Total Net Assets Fund Balances TotalNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	-25652750	BOY
EOY	-22590343	EOY

Total Liab Net Assets Fund Balances TotalLiabNetAssetsFundBalances

Field	Value	IRS element (for citing)
BOY	33787805	BOY
EOY	68565984	EOY

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	X	InfoInScheduleOPartXI
Reconcilation Revenue Expenses	2731325	ReconcilationRevenueExpenses
Reconcilation Other Changes	331082	ReconcilationOtherChanges
Method Of Accounting Accrual	X	MethodOfAccountingAccrual
Accountant Compile Or Review	0	AccountantCompileOrReview
FS Audited	1	FSAudited
Audit Committee	1	AuditCommittee
Financial Statement Both	X	FinancialStatementBoth
Federal Grant Audit Required	0	FederalGrantAuditRequired

Schedule D IRS990ScheduleD

Leasehold Improvements LeaseholdImprovements

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	883637	OtherCostOrOtherBasis
Depreciation	785856	Depreciation
Book Value	97781	BookValue

Equipment Equipment

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	1067959	OtherCostOrOtherBasis
Depreciation	827532	Depreciation
Book Value	240427	BookValue

Field	Value	IRS element (for citing)
Total Of Book Value Land Buildings	338208	TotalOfBookValueLandBuildings

Other Securities OtherSecurities (2 entries)

DescriptionDescription	Book ValueBookValue	Method Of ValuationMethodOfValuation
INVESTMENT IN SCAN LONG TERM CARE	3500000	C
OTHER RESTRICTED INVESTEMENTS	1625006	F

Field	Value	IRS element (for citing)
Total Of Book Value Securities	5125006	TotalOfBookValueSecurities

Other Liabilities OtherLiabilities (2 entries)

DescriptionDescription	AmountAmount
DEFERRED COMPENSATION	$326,934
SURPLUS NOTE PAYABLE	$50,000,000

Field	Value	IRS element (for citing)
Total Of Amounts	50326934	TotalOfAmounts
Total Revenue	164282258	TotalRevenue
Total Expenses	161550933	TotalExpenses
Excess Or Deficit For Year	2731325	ExcessOrDeficitForYear
Net Unrealized GL On Investments	-25918	NetUnrealizedGLOnInvestments
Other	$357,000	OtherAmount
Total Adjustments	331082	TotalAdjustments
Excess Or Deficit Per FS	3062407	ExcessOrDeficitPerFS
Tot Revenue Etc Audited Fincl Stmt	137501679	TotRevenueEtcAuditedFinclStmt
Net Unrealized Gains Investments	-25917	NetUnrealizedGainsInvestments
Revenue Not Rptd F990	-25917	RevenueNotRptdF990
Revenue Subtotal	137527596	RevenueSubtotal
Other Revenues Not Included	26754662	OtherRevenuesNotIncluded
Revenue Not Rptd On Fin Stmt	26754662	RevenueNotRptdOnFinStmt
Total Revenue Per Form990	164282258	TotalRevenuePerForm990
Tot Expenses Etc Audited Fincl Stmt	134797160	TotExpensesEtcAuditedFinclStmt
Other Expenses Included	889	OtherExpensesIncluded
Expenses Not Rptd F990	889	ExpensesNotRptdF990
Expenses Subtotal	134796271	ExpensesSubtotal
Other Expenses Not Included	26754662	OtherExpensesNotIncluded
Expenses Not Rptd On Fin Stmt	26754662	ExpensesNotRptdOnFinStmt
Total Expenses Per Form990	161550933	TotalExpensesPerForm990

Form990 Schedule D Part XIV Form990ScheduleDPartXIV (5 entries)

IdentifierIdentifier	Return ReferenceReturnReference	ExplanationExplanation
DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48:	PART X:	FIN 48 (ASC 740) WAS ADOPTED BY THE ORGANIZATION DURING THE YEAR ENDED DECEMBER 31, 2009. THERE HAS BEEN NO LIABILITY FOR UNCERTAIN TAX POSITIONS RECORDED ON THE FINANCIAL STATEMENTS FOR THE CURRENT YEAR.
PART XI, LINE 8 - OTHER ADJUSTMENTS:		2010 AUDIT ADJUSTMENT 357,000.
PART XII, LINE 4B - OTHER ADJUSTMENTS:		PREMIUM RESERVE 26,754,662.
PART XIII, LINE 2D - OTHER ADJUSTMENTS:		DIFFERENCE IN ADMINISTRATIVE EXPENSES 889.
PART XIII, LINE 4B - OTHER ADJUSTMENTS:		PREMIUM RESERVE 26,754,662.

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Severance Payment	1	SeverancePayment
Supplemental Nonqual Retire Plan	1	SupplementalNonqualRetirePlan
Equity Based Comp Arrangement	1	EquityBasedCompArrangement
Comp Based On Revenue Of Filing Org	0	CompBasedOnRevenueOfFilingOrg
Comp Based On Revenue Related Orgs	0	CompBasedOnRevenueRelatedOrgs
Comp Based Net Earnings Filing Org	0	CompBasedNetEarningsFilingOrg
Comp Based Net Earnings Relate Orgs	0	CompBasedNetEarningsRelateOrgs
Any Non Fixed Payments	0	AnyNonFixedPayments
Initial Contract Exception	0	InitialContractException

Form990 Schedule J Part II Form990ScheduleJPartII (16 entries)

Base Compensation Filing OrgBaseCompensationFilingOrg	Comp Based On Related OrgsCompBasedOnRelatedOrgs	Bonus Filing OrgBonusFilingOrg	Bonus Related OrgsBonusRelatedOrgs	Other Compensation Filing OrgOtherCompensationFilingOrg	Other Compensation Related OrgsOtherCompensationRelatedOrgs	Deferred Comp Filing OrgDeferredCompFilingOrg	Deferred Comp Related OrgsDeferredCompRelatedOrgs	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrg	Nontaxable Benefits Related OrgsNontaxableBenefitsRelatedOrgs	Total Compensation Filing OrgTotalCompensationFilingOrg	Total Compensation Related OrgsTotalCompensationRelatedOrgs	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrg	Comp Report Prior990 Related OrgsCompReportPrior990RelatedOrgs
ELIZABETH RUSSELL
0	315649	0	150000	0	21682	0	52323	0	29172	0	568826	0	0
DENNIS EDER
0	141030	0	102983	0	1078316	0	19682	0	11679	0	1353690	0	228326
RYAN TRIMBLE
0	566191	0	350000	0	5331	0	0	0	10976	0	932498	0	0
DOUGLAS JAQUES
0	292404	0	105783	0	18073	0	42184	0	37719	0	496163	0	0
RANDY STONE
0	207618	0	0	0	19281	0	2334	0	12773	0	242006	0	0
DAVE FIRDAUS
91182	0	46048	0	7244	0	0	0	7647	0	152121	0	0	0
RAJEEV NARULA
0	232725	0	53007	0	16077	0	17150	0	24378	0	343337	0	0
REBECCA LEARNER
0	222074	0	59855	0	17221	0	24672	0	16067	0	339889	0	0
MAUREEN MCGUIRRIN
162722	0	39558	0	193625	0	17150	0	7024	0	420079	0	0	0
GILBERT MILLER
0	80739	0	0	0	176316	0	0	0	486	0	257541	0	0
THOMAS HOEHNER
136134	0	15291	0	124352	0	7314	0	4042	0	287133	0	0	0
MARTIN GIBSON
0	153230	0	33494	0	24793	0	14244	0	11814	0	237575	0	0
JOEY ZEPEDA
148757	0	26826	0	9673	0	12990	0	22739	0	220985	0	0	0
RICHARD PEITZMEIER
137169	0	12446	0	3285	0	10692	0	8951	0	172543	0	0	0
TINA GRAHAM
140944	0	32790	0	9179	0	12167	0	1157	0	196237	0	0	0
THOMAS LESCAULT
0	0	0	0	252671	0	11809	0	0	0	264480	0	0	0

Form990 Schedule J Part III Form990ScheduleJPartIII (2 entries)

Return ReferenceReturnReference

ExplanationExplanation

PART I, LINE 3

COMPENSATION FOR THE CEO WAS ESTABLISHED AND PAID BY A RELATED ORGANIZATION. THE RELATED ORGANIZATION USED THE FOLLOWING TO ESTABLISH THE CEO'S COMPENSATION: (1) COMPENSATION COMMITTEE; (2) INDEPENDENT COMPENSATION CONSULTANT; (3) FORM 990 OF OTHER ORGANIZATIONS; (4) WRITTEN EMPLOYMENT CONTRACTS; (5) COMPENSATION SURVEY OR STUDY; (6) APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINES 4A-C

PART I, LINES 4A-C: 4A: DURING 2011, THE EMPLOYMENT RELATIONSHIPS OF THE FOLLOWING HIGHEST COMPENSATED EMPLOYEE'S, KEY EMPLOYEE'S AND OFFICER'S, WITH SCAN HEALTH PLAN, SCAN GROUP AND SCAN HEALTH PLAN ARIZONA WERE ENDED. IN CONNECTION WITH THE TERMINATION OF THEIR EMPLOYMENTS, SCAN HEALTH PLAN NEGOTIATED AND PAID SEVERANCE TO EACH OF THEM. THE SEVERANCE PAYMENT WAS IN ACCORDANCE WITH THE TERMS OF EACH HIGHEST COMPENSATED EMPLOYEE'S, KEY EMPLOYEE'S AND THE OFFICER'S THEN EXISTING EMPLOYMENT AGREEMENT. DENNIS EDER, CHIEF FINANCIAL OFFICER, OFFICER - SCAN HEALTH PLAN, $773,525 THOMAS LESCAULT, FORMER PRESIDENT - SCAN HEALTH PLAN ARIZONA, $236,171 THOMAS HOEHNER, HIGHLY COMPENSATED EMPLOYEE - SCAN HEALTH PLAN ARIZONA, $100,385 MAUREEN MCGUIRRIN, VP OF OPERATIONS, KEY EMPLOYEE - SCAN HEALTH PLAN ARIZONA, $146,596 4B: THE COMPANY PROVIDES A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN TO ONLY SENIOR EXECUTIVES OF THE COMPANY. SENIOR V.P. AND OFFICERS ARE ELIGIBLE TO PARTICIPATE IN THE SECTION 457(F) PLAN. THE FOLLOWING INDIVIDUALS PARTICIPATED IN THE COMPANY'S SECTION 457(F) DURING THE YEAR 2011: RANDY STONE, DENNIS EDER, DOUGLAS JAQUES, REBECCA LEARNER AND ELIZABETH RUSSELL. COMPENSATION PURSUANT TO THE TERMS AND CONDITIONS OF THE SECTION 457(F) PLAN, A PARTICIPANT BECOMES 100% VESTED IN THE EMPLOYER CONTRIBUTION UPON THE OCCURRENCE OF ANY OF THE FOLLOWING WHILE THE PARTICIPANT IS AN EMPLOYEE: (I) THE PARTICIPANT HAS TEN YEARS OF CONTINUOUS EMPLOYMENT, COUNTING ONLY SERVICE AFTER DECEMBER 31, 2005; (II) THE PARTICIPANT REACHES THE AGE OF 62 AND HAS FIVE YEARS OF CONTINUOUS EMPLOYMENT; (III) THE PARTICIPANT'S INVOLUNTARY TERMINATION; (IV) THE PARTICIPANT'S DISABILITY; OR (V) THE PARTICIPANT'S DEATH. THERE WAS 1 INDIVIDUAL WHO RECEIVED PAYMENTS OUT OF THE SECTION 457(F) PLAN DURING THE YEAR: DENIS EDER, $228,326. 4C: THE FOLLOWING INDIVIDUAL PARTICIPATED IN SCAN HEALTH PLAN'S KEYSOP PLAN DURING THE TAXABLE YEAR: REBECCA LEARNER. THE PLAN IS NOW FROZEN AND NO EMPLOYEES ARE BEING NEWLY ADDED AS PARTICIPANTS.

Schedule O IRS990ScheduleO

General Explanation GeneralExplanation (8 entries)

Return ReferenceReturnReference	ExplanationExplanation	IdentifierIdentifier
FORM 990, PART VI, SECTION A, LINE 6	THE SOLE MEMBER OF THE ORGANIZATION IS SCAN GROUP, A CALIFORNIA NONPROFIT CORPORATION.
FORM 990, PART VI, SECTION A, LINE 7A	THE SOLE MEMBER HAS THE POWER TO APPOINT THE MEMBERS OF THE BOARD OF DIRECTORS.
FORM 990, PART VI, SECTION B, LINE 11	THE FORM 990 IS PREPARED BY DELOITTE TAX LLP, WORKING IN CONJUNCTION WITH SCAN'S FINANCE DEPARTMENT. SCAN HEALTH PLAN'S ACCOUNTING MANAGER HAS DIRECT RESPONSIBILITY FOR THIS EFFORT, SUBJECT TO SUPERVISION BY THE SCAN HEALTH PLAN ARIZONA'S CHIEF FINANCIAL OFFICER. AFTER AN INITIAL DRAFT OF THE FORM 990 IS PREPARED, IT IS CIRCULATED FOR REVIEW AND COMMENT BY RELEVANT MEMBERS OF THE EXECUTIVE TEAM WHO HAVE RESPONSIBILITY AND/OR KNOWLEDGE ABOUT THE VARIOUS MATTERS DISCLOSED AND/OR DESCRIBED IN THE FORM. THE GENERAL COUNSEL, IN PARTICULAR, REVIEWS THE FORM 990 AND ENSURES ACCURACY OF DESCRIPTIONS AND THAT DISCLOSURE IS COMPLETE. THE DRAFT FORM 990 IS REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF DIRECTORS OF SCAN GROUP, AND IS SHARED WITH ALL MEMBERS OF THE BOARD OF DIRECTORS AFTER IT IS READY FOR FILING BUT BEFORE IT IS FILED.
FORM 990, PART VI, SECTION B, LINE 12C	SCAN HEALTH PLAN ARIZONA REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST POLICY THROUGH ANNUAL CIRCULATION OF A CONFLICT OF INTEREST QUESTIONNAIRE WHICH IS REQUIRED TO BE ANSWERED BY ALL MEMBERS OF THE BOARD OF DIRECTORS, OFFICERS AND MEMBERS OF EXECUTIVE MANAGEMENT. IN ADDITION, THERE IS REGULAR EDUCATION AND ENFORCEMENT THROUGH OVERSIGHT OF SUCH POLICY AND THE SCAN HEALTH PLAN ARIZONA GIFT AND BUSINESS COURTESIES POLICY WITH RESPECT TO EACH DEPARTMENT BY MEMBERS OF THE SENIOR EXECUTIVE TEAM WITH RESPONSIBILITY FOR SUCH DEPARTMENT. THE LEGAL DEPARTMENT OF SCAN GROUP REVIEWS ALL CONTRACTUAL RELATIONSHIPS ENTERED INTO BY THE ORGANIZATION AND THE GENERAL COUNSEL OF SCAN GROUP IS RESPONSIBLE FOR MONITORING CONFLICTS OF INTEREST THROUGH THE ANNUAL CIRCULATION AND REVIEW OF THE CONFLICT OF INTEREST QUESTIONNAIRE. ACCORDINGLY, THE LEGAL DEPARTMENT OF SCAN GROUP THROUGH THE GENERAL COUNSEL IS IN A POSITION TO MONITOR AND ENFORCE COMPLIANCE WITH THE POLICY ON AN ONGOING BASIS.
FORM 990, PART VI, SECTION B, LINE 15	15A: THE PROCESS FOR DETERMINING THE COMPENSATION OF THE CHIEF EXECUTIVE OFFICER OF SCAN HEALTH PLAN ARIZONA IS CONDUCTED BY THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS OF SCAN GROUP, ALL OF THE VOTING MEMBERS OF WHICH ARE INDEPENDENT PERSONS. IN DETERMINING THE CEO'S COMPENSATION, THE COMPENSATION COMMITTEE WORKS WITH AND RELIES UPON THE COUNSEL AND EXPERTISE OF ERNST & YOUNG, A CONSULTANT WITH WELL-ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NONPROFIT ORGANIZATION EXECUTIVE COMPENSATION AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. ERNST & YOUNG PROVIDES AN "EXECUTIVE COMPENSATION REPORT" TO THE COMPENSATION COMMITTEE EACH YEAR WHICH FURNISHES THE BASIS FOR THE ESTABLISHMENT OF THE CEO'S COMPENSATION PACKAGE DURING THE FOLLOWING YEAR. THE ERNST & YOUNG EXECUTIVE COMPENSATION REPORT IS BASED ON A REVIEW OF THE EXECUTIVE COMPENSATION PRACTICES OF A VARIETY OF ORGANIZATIONS THAT ARE CONSIDERED COMPARABLE TO SCAN HEALTH PLAN ARIZONA BASED ON VARIOUS METRICS. THE COMPENSATION COMMITTEE DELIBERATES ON THE ISSUE OF THE CEO'S COMPENSATION PACKAGE IN LIGHT OF THE ERNST & YOUNG EXECUTIVE COMPENSATION REPORT AND QUESTIONS ARE ASKED OF, AND ANSWERED BY ERNST & YOUNG, REGARDING SUCH REPORT AND OTHER MATTERS RELEVANT TO SUCH PACKAGE. BASED ON SUCH DELIBERATIONS, THE COMPENSATION COMMITTEE MAKES A RECOMMENDATION TO THE BOARD OF DIRECTORS OF SCAN HEALTH PLAN ARIZONA REGARDING THE COMPENSATION PACKAGE FOR THE FOLLOWING YEAR. THE BOARD OF DIRECTORS OF SCAN HEALTH PLAN ARIZONA DELIBERATES ON AND THEN VOTES ON SUCH RECOMMENDATION; THE CEO IS RECUSED FOR THE ENTIRETY OF SUCH DELIBERATIONS AND VOTE. THE MINUTES OF THE COMPENSATION FOR THESE MEETINGS ARE PREPARED SUBSTANTIALLY CONTEMPORANEOUSLY AND SUBSTANTIATE SUCH DELIBERATIONS AND DECISIONS. 15B: THE PROCESS FOR DETERMINING THE COMPENSATION OF OFFICERS OR OTHER KEY EMPLOYEES OF SCAN HEALTH PLAN ARIZONA IS CONDUCTED BY THE HUMAN RESOURCES DEPARTMENT AND CEO. IN DETERMINING SUCH EMPLOYEE'S COMPENSATION, THE HUMAN RESOURCES DEPARTMENT WORKS WITH AND RELIES UPON THE COUNSEL AND EXPERTISE OF ERNST & YOUNG, A CONSULTANT WITH WELL-ESTABLISHED EXPERIENCE AND EXPERTISE IN THE AREA OF NONPROFIT ORGANIZATION EXECUTIVE COMPENSATION AND COMPLIANCE WITH THE INTERMEDIATE SANCTIONS REQUIREMENTS APPLICABLE TO SUCH COMPENSATION. ERNST & YOUNG PROVIDES AN "EXECUTIVE COMPENSATION REPORT" TO THE HUMAN RESOURCES DEPARTMENT EACH YEAR WHICH FURNISHES THE BASIS FOR THE ESTABLISHMENT OF SUCH EMPLOYEES' COMPENSATION PACKAGE DURING THE FOLLOWING YEAR. THE ERNST & YOUNG EXECUTIVE COMPENSATION REPORT IS BASED ON A REVIEW OF THE EXECUTIVE COMPENSATION PRACTICES OF A VARIETY OF ORGANIZATIONS THAT ARE CONSIDERED COMPARABLE TO SCAN HEALTH PLAN ARIZONA BASED ON VARIOUS METRICS.
FORM 990, PART VI, SECTION C, LINE 19	SCAN HEALTH PLAN ARIZONA'S GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. SCAN HEALTH PLAN ARIZONA'S AUDITED FINANCIAL STATEMENTS ARE PUBLICLY AVAILABLE FROM THE ARIZONA DEPARTMENT OF INSURANCE FOR A NOMINAL FEE.
FORM 990, PART VII:	AVG HOURS DEVOTED TO RELATED ORGANIZATION(S) WHEN RELATED COMP IS REPORTED: PART VII, SECTION A, COLUMN D REPORTS COMPENSATION PAID BY SCAN HEALTH PLAN ARIZONA FOR SERVICES PROVIDED TO SCAN HEALTH PLAN ARIZONA AND AFFILIATES. COLUMN B INCLUDES TOTAL HOURS FOR BOTH SCAN HEALTH PLAN ARIZONA AND SCAN LONG TERM CARE. BELOW IS A BREAKDOWN OF HOURS SPENT PER AFFILIATE. SCAN HEALTH PLAN AND SCAN GROUP ARE OPERATED JOINTLY. THEREFORE, THE FOLLOWING INDIVIDUALS REPORTED ABOVE SPEND AN AVERAGE OF 40 HOURS PER WEEK BETWEEN THE TWO ORGANIZATIONS, AND THEREFORE ARE REPORTED AS WORKING 40 HOURS PER WEEK FOR EACH: DENNIS EDER DOUGLAS JAQUES RANDY STONE GILBERT MILLER REBECCA LEARNER ELIZABETH RUSSELL RYAN TRIMBLE RAJEEV NARULA (NOT INCLUDED ON PART VII FOR SCAN GROUP) THE FOLLOWING OFFICERS, KEY EMPLOYEES, AND BOARD MEMBERS OF SCAN HEALTH PLAN ARIZONA ALSO DEVOTE THE FOLLOWING TIME TO SCAN FOUNDATION: DENNIS EDER - 2.0 HOURS PER WEEK DOUGLAS JAQUES - 2.0 HOURS PER WEEK RANDY STONE - 2.0 HOURS PER WEEK RYAN TRIMBLE - 1.0 HOURS PER WEEK THE 40 HOURS PER WEEK DISCLOSED IN COLUMN B FOR MAUREEN MCGURRIN, TINA GRAHAM, JOEY ZEPEDA AND THOMAS HOEHNER ARE SPLIT BETWEEN SCAN HEALTH PLAN ARIZONA AND SCAN LONG TERM CARE.
FORM 990, PART XI, LINE 5:	NET UNREALIZED LOSSES ON INVESTMENTS: -25,918. 2010 AUDIT ADJUSTMENT 357,000. TOTAL TO FORM 990, PART XI, LINE 5: 331,082.	CHANGES IN NET ASSETS OR FUND BALANCES:

Schedule R IRS990ScheduleR

Form990 Schedule R Part II Form990ScheduleRPartII (5 entries)

Address Line1AddressUS/AddressLine1	CityAddressUS/City	StateAddressUS/State	ZIP CodeAddressUS/ZIPCode	EINEIN	Primary ActivitiesPrimaryActivities	Legal Domicile StateLegalDomicileState	Exempt Code SectionExemptCodeSection	Public Charity StatusPublicCharityStatus	Direct Controlling Entity NADirectControllingEntityNA	Controlled OrgControlledOrg	Business Name Line1DirectControllingEntityName/BusinessNameLine1
SCAN GROUP
3800 KILROY AIRPORT WAY	LONG BEACH	CA	90806	953826037	ADMIN. SUPPORT	CA	501(C)(3)	LINE 11, TYPE II: 50	N/A	0
SCAN HEALTH PLAN
3800 KILROY AIRPORT WAY	LONG BEACH	CA	90806	953858259	MEDICARE ADVANTAGE	CA	501(C)(3)	LINE 9		1	SCAN GROUP
SCAN LONG TERM CARE
3800 KILROY AIRPORT WAY	LONG BEACH	CA	90806	204607594	MEDICAID MANAGEMENT CARE	AZ	501(C)(4)			1	SCAN HEALTH PLAN ARIZONA
THE SCAN FOUNDATION
3800 KILROY AIRPORT WAY	LONG BEACH	CA	90806	450552845	GRANT MAKING	CA	501(C)(3)	LINE 11, TYPE II: 50		1	SCAN HEALTH PLAN
(no name)
										1

Field	Value	IRS element (for citing)
Receipt Of Int Ann Rents Royalties	0	ReceiptOfIntAnnRentsRoyalties
Gift Grant Or Cap Contr To Other Org	0	GiftGrantOrCapContrToOtherOrg
Gift Grant Or Cap Contr Fr Other Org	0	GiftGrantOrCapContrFrOtherOrg
Loans Or Guarantees To Other Org	0	LoansOrGuaranteesToOtherOrg
Loans Or Guarantees From Other Org	1	LoansOrGuaranteesFromOtherOrg
Sale Of Assets To Other Org	0	SaleOfAssetsToOtherOrg
Purchase Of Assets From Other Org	0	PurchaseOfAssetsFromOtherOrg
Exchange Of Assets	0	ExchangeOfAssets
Rental Of Facilities To Other Orgs	0	RentalOfFacilitiesToOtherOrgs
Rental Of Facilities Fr Other Orgs	0	RentalOfFacilitiesFrOtherOrgs
Perform Of Services For Other Orgs	0	PerformOfServicesForOtherOrgs
Perform Of Services By Other Orgs	0	PerformOfServicesByOtherOrgs
Sharing Of Facilities	1	SharingOfFacilities
Sharing Of Paid Employees	1	SharingOfPaidEmployees
Reimbursement Paid To Other Org	1	ReimbursementPaidToOtherOrg
Reimbursement Paid By Other Org	1	ReimbursementPaidByOtherOrg
Other Transfer To Other Org	0	OtherTransferToOtherOrg
Other Transfer From Other Org	0	OtherTransferFromOtherOrg

Transactions Related Orgs Table TransactionsRelatedOrgsTable (6 entries)

Transaction TypeTransactionType	Amount InvolvedAmountInvolved	Method Of Amt DeterminationMethodOfAmtDetermination
SCAN LONG TERM CARE
P	20508	SEE PART VII
SCAN HEALTH PLAN
O	2413913	SEE PART VII
SCAN GROUP
O	2394294	SEE PART VII
SCAN LONG TERM CARE
N	11209244	SEE PART VII
SCAN LONG TERM CARE
M	905463	SEE PART VII
SCAN HEALTH PLAN
E	50000000	SEE PART VII

Form990 Schedule R Part VII Form990ScheduleRPartVII

Field	Value	IRS element (for citing)
Return Reference	SCHEDULE R, PART V:	ReturnReference
Explanation	THE PERCENTAGE OF ALLOCATION TO AFFILIATED COMPANIES IS DETERMINED BASED ON ESTIMATED PERCENTAGE OF TIME WORKED, PERCENTAGE OF HEADCOUNTS, AND THE PERCENTAGE OF SCAN MEMBERSHIP, AS APPROPRIATE BASED ON THE NATURE OF THE EXPENSE. SCAN HEALTH PLAN ARIZONA RECEIVED A $50 MILLION SURPLUS NOTE FROM SCAN HEALTH PLAN, IN ORDER TO MEET CERTAIN CAPITAL REQUIREMENTS. THE NOTE WAS APPROVED BY THE ARIZONA DEPARTMENT OF INSURANCE AND THE CALIFORNIA DEPARTMENT OF MANAGED HEALTHCARE.	Explanation