2012-11-13T13:24:45-06:00 2011-12-31 010494526 BAKER NEWMAN & NOYES PO BOX 507 PORTLAND ME 04112 990 2011-01-01 010353275 Martin's Point Health Care Inc MART 2077745801 331 Veranda Street Portland ME 041035545 David H Howes MD 2077745801 2012-11-08 1 Nicholas E Porto P01310283 2078792100 2011 2016-02-24 21:20:13Z David H Howes MD 331 Veranda Street Portland ME 041035545 423105767 0 X www.martinspoint.com X 1971 ME See Schedule O for Organization Mission Statement 12 11 1000 0 109666 87652 0 0 323848683 389813655 4523570 5254704 0 0 328372253 395068359 303545 305744 0 0 60450425 70596924 0 0 0 244157883 314600273 304911853 385502941 23460400 9565418 310401904 296698225 79400684 66050359 231001220 230647866 X Mission - The mission of Martin's Point Health Care is to exemplify and inspire health care and service excellence through leadership, education, and innovation. 0 0 189725357 305744 273713174 Uniform Services Family Health Plan - Please see not-for-profit narrative statement for Martin's Point on Schedule O 98854240 87001122 Generations Advantage - Please see not-for-profit narrative statement for Martin's Point on Schedule O 36051546 28045011 Physician Practices - Please see not-for-profit narrative statement for Martin's Point on Schedule O 2028672 1054348 Third Party Administrator - Please see not-for-profit narrative statement for Martin's Point on Schedule O 2028672 1054348 326659815 1 0 0 1 0 0 0 0 0 0 1 1 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 5177 0 1 1000 1 1 1 0 0 0 0 0 0 0 0 0 X 12 11 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 NH MA VT X Daniel Chojnowski 2072536115 27 Northport Drive Portland ME 04103 Buyse MD Marylou 1.80 X 13250 0 0 Dixon MD Ronald Fitzjohn 1.80 X 8250 0 0 Dupont Jr Edward C 1.80 X 12250 0 0 Durkee Raymond E 1.80 X 13250 0 0 Hester Jr PhD James A 1.80 X 8500 0 0 Loeb Lifford MD Karen 1.80 X 18250 0 0 Onion MD Daniel K 1.80 X 12000 0 0 Thomas Michael E 1.80 X X 22000 0 0 Alpern MD Warren D 1.80 X X 20750 0 0 Moore Robert A 1.80 X X 18750 0 0 Campbell Jr George N 1.80 X X 21250 0 0 Howes MD David H 40.00 X X 643639 0 311894 Reese Dennis J 40.00 X 338550 0 21033 Rollinson Jane E 40.00 X 78930 0 0 Johnson MD Elizabeth 40.00 X 354546 0 27279 Dufresne W J Duke 40.00 X 316058 0 17404 Monfiletto Sandra L 40.00 X 307044 0 21229 White Richard M 40.00 X 295322 0 1701 Olsten Daniel 40.00 X 295182 0 16911 2797771 0 417451 119 0 1 0 Maine Medical Center 22 Bramhall Street Portland ME 04102 Medical Services 15086963 Eastern Maine Medical Center PO Box 404 Bangor ME 04402 Medical Services 10066344 Mid Coast Medical Group 121 Medical Center Drive Suite 210 Brunswick ME 04011 Medical Services 6221638 Portsmouth Regional Hospital PO Box 7004 Portsmouth NH 03802 Medical Services 5527145 Central Maine Medical Center 300 Main Street Lewiston ME 04240 Medical services 5493822 245 US Family Health Plan 524114 273713174 273713174 Generations Advantage 524114 87001122 87001122 Physician Practices 621110 28045011 28045011 3rd Party Health Admin 524298 1036056 1036056 Purchase Discounts 900099 18292 18292 389813655 3904798 109666 3795132 29387314 28037408 1349906 1349906 1349906 395068359 389813655 109666 5145038 305744 305744 1562546 1124032 438514 55496764 30538518 24958246 1998713 1031375 967338 8319797 4697134 3622663 3219104 1420902 1798202 9060819 2581176 6479643 746426 246861 499565 361603 222604 138999 123866 123866 801485 801485 2401428 1057317 1344111 2181650 1551576 630074 4759300 2155012 2604288 2284038 2284038 4016206 1962052 2054154 2847963 854019 1993944 419367 62088 357279 6253931 1880276 4373655 1018214 876062 142152 Medical Services 268049112 268049112 Maintenance Contracts 2506723 810641 1696082 Medical Supplies 2299920 2299920 Insurance Broker Fees/C 1407036 1407036 3061186 1402492 1658694 385502941 326659815 58843126 0 2007220 3298155 78212954 38968128 7262578 6870891 790512 1041501 1595889 1672228 90437082 32326941 53672987 58110141 115373175 124564770 50360272 61019837 763056 630351 363261 522223 310401904 296698225 70506297 57467151 8894387 8583208 79400684 66050359 X 231001220 230647866 231001220 230647866 310401904 296698225 X 9565418 -9918772 X X 0 1 1 X 0 X 200713850 235473754 267166255 323848683 389813655 1417016197 200713850 235473754 267166255 323848683 389813655 1417016197 0 0 0 1417016197 7237315 4252066 3728506 3968296 3795132 22981315 7237315 4252066 3728506 3968296 3795132 22981315 43965 -55888 -34526 59873 109666 123090 207995130 239669932 270860235 327876852 393718453 1440120602 0.98400 0.98160 0.01600 0.01840 X 0 0 0 0 0 1 3825 0 0 1 120041 123866 0 Part IV, Supplemental Information: Part II-B, Line 1f: Martin's Point pays the cost of the lobbying portion of dues to trade associations. These expenses are incurred to help track and discuss legislation affecting health care policy, striving to create policy which will drive a system to improve health outcomes, improve the experience of care, and reduce the overall costs of care. Part II-B, Line 1i: Martin's Point engages a consulting firm to provide support and occasional lobbying services to Martin's Point officials. 3715618 3715618 42425964 8854646 33571318 1825496 1229358 596138 37386860 21689201 15697659 5083144 553736 4529408 58110141 Alternative Investments 61019837 F 61019837 395068359 385502941 9565418 -7303772 -2615000 -9918772 -353354 386963102 -7303772 -7303772 394266874 801485 801485 395068359 387316456 2615000 2615000 384701456 801485 801485 385502941 Description of Uncertain Tax Positions Under FIN 48: Part X: The Company is exempt from income taxes on related business income under Section 501(c)(3) of the Internal Revenue Code. Generations, Evergreen, MPMG, BMG and MPCHA are treated as pass-through entities for tax purposes. MPCHP is a for-profit entity and is, therefore, subject to income taxes. MPCHP follows the asset and liability method of accounting for income taxes whereby deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. At December 31, 2011, MPCHP has certain net operating loss carryforwards which have been reduced by a valuation allowance of an equal amount as it is not presently considered likely that the deferred tax asset will be realized. Accordingly, there is no provision for income taxes within the consolidated financial statements. The Company and MPCHP could be required to record an obligation for income taxes as the result of a tax position they have historically taken on various tax exposure items including unrelated business income or tax status. Under guidance issued by the Financial Accounting Standards Board (FASB), assets and liabilities are established for uncertain tax positions taken or positions expected to be taken in income tax returns when such positions are judged to not meet the "more-likely-than-not" threshold, based upon the technical merits of the position. Estimated interest and penalties, if applicable, related to uncertain tax positions are included as a component of income tax expense. The Company has evaluated the positions taken on its filed tax returns. The Company has concluded no uncertain income tax positions exist at December 31, 2011. The Company's tax years from 2008 through 2011 are open and subject to examination. Part XI, Line 8 - Other Adjustments: Equity transfer to Affiliate -2,615,000. Part XIII, Line 2d - Other Adjustments: Transfer to Affiliate 2,615,000. 1 Portland Regional Chamber 60 Pearl Street Portland ME 04101 010043280 501(C)(6) 20000 General Support American Diabetes Association PO Box 10310 Portland ME 04104 131623888 501(C)(3) 10000 General Support Northeast Passage 107 Hewitt Hall 4 Library Way Durham NH 03824 020448237 501(C)(3) 10000 General Support Spurwink Services 899 Riverside Street Portland ME 04103 010319802 501(C)(3) 10000 General Support Friends of the Music Hall 104 Congress Street Portsmouth NH 03801 020403452 501(C)(3) 10000 General Support Maine Quality Counts PO Box 190 30 Association Drive Manchester ME 04351 204935972 501(C)(3) 25000 General Support Planned Parenthood of Northern New England 128 Lakeside Avenue Suite 301 Burlington VT 05401 030222941 501(C)(3) 10000 General Support Make a Wish Foundation of Maine 477 Congress Street Suite M1 Portland ME 04101 010477512 501(C)(3) 12000 General Support Center for Grieving Children PO Box 1438 Portland ME 04104 010431501 501(C)(3) 10000 General Support Operation Tribute PO Box 699 Gorham ME 04038 264116863 501(C)(3) 7500 General Support Oasis Health Network 66 Baribeau Drive Suite 2 Box 20 Brunswick ME 04011 010497587 501(C)(3) 6000 General Support Maine Medical Center 22 Bramhall Street Portland ME 04102 010238552 501(C)(3) 50000 General Support 10 1 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: All requests, solicited or unsolicited, are reviewed by MPHC charitable contributions committee (CCC). The CCC ensures continuity and consistency with the Organization's stated objective. The CCC meets monthly. A charitable contributions/sponsorship application is submitted providing program details and funds requested. Relationships with health care non-profits are overseen by the committee with proper "assignments" made internally as needed (i.e. board seats, program participants). The CCC also reviews program results and the financial health of the organizations as needed. X 1 1 X X X X 1 1 0 0 0 0 0 1 0 Howes MD David H 464112 0 111092 0 68435 0 286988 0 24906 0 955533 0 0 0 Reese Dennis J 233878 0 52580 0 52092 0 0 0 21033 0 359583 0 0 0 Johnson MD Elizabeth 273975 0 63616 0 16955 0 0 0 27279 0 381825 0 0 0 Dufresne W J Duke 257940 0 41009 0 17109 0 0 0 17404 0 333462 0 0 0 Monfiletto Sandra L 224343 0 49546 0 33155 0 0 0 21229 0 328273 0 0 0 White Richard M 213869 0 48907 0 32546 0 0 0 1701 0 297023 0 0 0 Olsten Daniel 81835 0 45658 0 167689 0 0 0 16911 0 312093 0 0 0 Part I, Line 1a Cumberland Club membership with costs of $2,200 for David H. Howes, President & CEO. This is a business club, the membership to which is used exclusively for business purposes. Part I, Lines 4a-b Severance payments of $158,885 were made to Daniel Olsten, a top five highest paid employee. 457(f) plan in which David H Howes, CEO, participates. Allocated funds (not paid out)- $285,900 Part I, Line 7 Some of the compensation for individuals listed in Part VII of Form 990 are calculated through the Achievement Plan. The Plan is an earned bonus which is variable based on obtaining a combination of corporate and department goals. The goal of the Achievement Plan is to focus employees on meeting critical performance measures. The Plan funding is based on the contribution margin which is tied to department goals. MHHEFA 010314384 560425L40 2007-07-18 10395000 Provide funds to refund 2000 issue 0 0 1 305000 10537113 756100 1614 129918 2007 1 0 1 1 0 0 0 0 1 0 0 0 1 TransAmerica 23.000000000000 1 0 0 Schedule K, Part I, Line A, Column e: The issue price listed differs from the amount reported on Form 8038, Part III of $97,716,087. This is due to the bond issuance being made as part of a pooled financing issue. The amount reported by the Organization on Schedule K is representative of the amount of the issue allocated to the Organization. Form 990, Part I, Line 1: The mission of Martin's Point Health Care is to exemplify and inspire health care and service excellence through leadership, education, and innovation. Program Service Accomplishments For Tax Year 2011 Form 990, Part III, Line 4a-d Not-for-profit Narrative Statement Martin's Point Health Care is a progressive not-for-profit health care organization, based in Portland, Maine, that is leading the way in providing better care at lower cost in the communities we serve. The primary goal of Martin's Point is to help our patients and members live healthier lives. We achieve this through our commitment to provide the best possible health care experience to those we serve, offering clinical excellence in care, and treating them with warmth and concern. Working in partnership with our patients and members, we help them take an active role in making good health choices and ultimately living happier and healthier lives. More specifically, we care for our communities in three primary ways: 1.) by providing high-quality primary care and selected specialty and ancillary services to patients at 8 locations throughout Maine and 1 location in New Hampshire, including onsite pharmacy, radiology, and lab services at many locations; 2.) by administering Military, Medicare Advantage, and Commercial Employer health insurance plans; and 3.) by making positive improvements that help transform the health care system in the communities we serve and that can also serve as models of improved care beyond our communities, statewide and nationally. PROVIDING HIGH-QUALITY PRIMARY CARE In 2011 Martin's Point Health Care: - Expanded health care access through the addition of 12 primary care and specialty providers. In this year, over 73,000 patients received care in the areas of family medicine, pediatrics, internal medicine, cardiology, general surgery, sports medicine, cosmetic dermatology, physical therapy, and more. Many patients were also able to take advantage of onsite radiology, pharmacy, and laboratory services. - Provided nearly $200,000 of medical services free-of-charge to patients with insufficient coverage. - Offered health education programs on a broad range of topics including smoking cessation, diabetes control, blood pressure management, healthy cooking, and weight management to the public, often free of charge. - Continued work on our model of care where physicians and other medical staff are grouped into "care teams". Through this team set-up, they are able to more effectively work together to anticipate patients' needs, better coordinate their care, and help create better health outcomes and experiences. PROVIDING HEALTH AND WELLNESS PLANS FOR MEMBERS Martin's Point offers health care plans for select groups throughout the Northeast. Our plan members receive comprehensive benefits and quality care, and they consistently give us high ratings for exemplary service and satisfaction. In 2011, Martin's Point Health Care: - Served as one of six contracted health plan administrators to the Department of Defense of the US Family Health Plan for military beneficiaries. Through this plan, Martin's Point serves families of active-duty personnel, including activated National Guard and Reserve, military retirees and their families across northern New England, upstate New York, and northern Pennsylvania. In 2011, our US Family Health Plan served over 36,000 members. In our 30 years of providing this TRICARE Prime option, we consistently have earned high marks for customer service and member satisfaction. - Provided a Medicare Advantage insurance plan, which served close to 13,000 Maine residents in all 16 counties in 2011. This plan was recognized as being among a select group of plans nationally that earned a 4 or 5 star rating from the Centers of Medicare and Medicaid Services (CMS). Martin's Point rating of 4.5 stars put our plan in the top 6% of Medicare plans nationwide. 2011 marked the third year in a row that Martin's Point had the highest rated Medicare Advantage plan in Maine. COMMITTED TO TRANSFORMING THE HEALTH CARE SYSTEM Martin's Point is leading the way to transforming the health care system in the communities we serve and beyond. We are dedicated to participating in and creating opportunities to share innovative solutions with others towards our common goal of creating a sustainable, quality health care delivery system, both in Maine and throughout the nation. Our work is driven by three principles: 1) to improve the experience of care, 2) to improve health outcomes, and 3) to reduce overall costs. To achieve these goals, we are working to make systemic changes to the way primary care is delivered and coordinated. In 2011, Martin's Point Health Care: - Launched a new commercial insurance program for Maine employers called MaineSense, in partnership with the Maine Wellness Association, an insurance captive made up of leading Maine employers. By the end of 2011, we had nearly 800 people enrolled in the program. MaineSense is a new kind of health program where all parties work together to help improve the health care system. It's employer-owned and provides incentives for members to take care of their health, pays doctors for delivering high quality care, and empowers all parties to help keep health care costs in check. The program focuses on creating good health outcomes, making the health care experience better, and lowering costs by making the system easier to navigate, focusing on prevention, and changing the way health care is delivered and funded. Martin's Point provides health plan support services for MaineSense through its wholly owned subsidiary, Martin's Point Community Health Administrators, LLC. - Served as an active participant in the Maine State Regional Health Information Exchange, HealthInfoNet, which holds vital patient information on over 50% of the State's population. - Continued to enhance our primary care comprehensive payment model to encourage and reward quality care and a better health care experience. - Continued to work with the Institute for Healthcare Improvement's Triple Aim Initiative. - Participated as a member of the national Alliance of Community Health Plans, comprised of 20 of the top performing community and regional non-profit health plans. MARTIN'S POINT - MAKING A DIFFERENCE IN OUR COMMUNITY Martin's Point is committed to making a difference and improving lives in the communities we serve. In addition to doing this through our services for patients and members, the organization also serves as a leader in the philanthropic community. In 2011, Martin's Point Health Care: - Contributed $300,000 in financial support to more than 115 health care and community nonprofit organizations, agencies, and groups throughout Maine, New Hampshire, and New York. - Hosted two free health care education events called the Martin's Point Innovators Series. These events attract hundreds of health care leaders and professionals throughout Maine and New England to interact with and listen to nationally recognized health care experts who share and discuss ideas, cutting-edge practices, and health care trends. - Employees personally and collectively contributed over $50,000 of their wages to their local United Way and other charities. - Employees from across the organization also actively volunteered their own time to represent Martin's Point Health Care in significant fundraising events for the American Diabetes Association, American Heart Association, Maine Cancer Foundation, Maine Lung Association, Northeast Passage, and many more. Martin's Point is proud to support our employees in their efforts and ability to make a difference in our communities. Thus, Martin's Point provides a volunteer time-off policy which makes it easier for our employees to do direct volunteer service and serve on community boards and committees. In 2011, our employees donated over 1,000 hours, which totals almost $27,000 paid in wages to employees for volunteer time. In addition, Martin's Point donates monetary support to charitable organizations and efforts in which our employees are engaged. Form 990, Part VI, Section B, line 11 The Form 990 is prepared internally with assistance from an outside CPA firm. The return is reviewed in detail by the accounting manager, director of finance/corporate controller, interim CFO, and president. A copy of the 990 is provided to the board of directors before filing. Form 990, Part VI, Section B, line 12c The conflict of interest policy is reviewed and given to all new hires during the day-one orientation. Each new hire attests to having received the policy and to have not engaged in any activities that are a conflict of interest to the Organization as defined in the policy. All employees, as a condition of employment, take the annual compliance training which includes conflict of interest training. Questions specific to identifying conflicts of interest are answered by each employee. The responses are monitored for conflict of interest indicators. All board directors receive conflict of interest training and must attest to no conflicts. Form 990, Part VI, Section B, line 15 Each year, Martin's Point Health Care's (MPHC's) compensation committee, which is comprised of independent board members, works with an independent health care compensation consulting firm to obtain third-party market data for positions that are functionally comparable to those held by MPHC executives in organizations of comparable size based on net revenue and/or health plan membership. This data, as well as the consultant's report showing where MPHC executives fall in relation to the market data, is reviewed by the committee prior to determining compensation adjustments for MPHC's chief executive officer and other executives. The committee's deliberations in this regard are documented in its meeting minutes. Form 990, Part VI, Section C, line 19 The organization makes its governing documents, conflict of interest policy, and audited financial statements available to the general public upon request. Form 990, Part VI, Line 1b: Several individuals listed in Part VII as board members of the Organization received reportable compensation from the Organization in excess of $10,000. However, those members were not compensated as employees of the Organization or a related organization during the current tax year. Furthermore, those members did not receive total compensation or other payments exceeding $10,000 during the Organization's tax year from the Organization or related organization for services as an independent contractor. All compensation reported in Part VII for those individuals is reasonable compensation for services provided in their capacity as a member of the governing body. Therefore, there were 11 independent voting members on the Organization's board of directors at the end of the current tax year. Unrelated Business Income Form 990, Part VIII, Line 3c: The Organization's 990-T filing is related to Schedule K-1s received from Nyes Ledge Capital Partners, LP for investment-related income of $109,666. Changes in Net Assets or Fund Balances: Form 990, Part XI, line 5: Net unrealized losses on investments: -7,303,772. Equity transfer to Affiliate -2,615,000. Total to Form 990, Part XI, Line 5: -9,918,772. Oversight of Audit Form 990, Part XII, Line 2c: The audit process has not changed from the prior year. Martin's Point Generations LLC 331 Veranda Street Portland ME 04103 204505084 Medicare Limited HMO ME 87001122 22384645 Martin's Point Health Care Inc Evergreen Woods Primary Care LLC 331 Veranda Street Portland ME 04401 260449335 Physician Practices ME 1231556 185210 Martin's Point Health Care Inc Martin's Point Medical Group LLC 331 Veranda Street Portland ME 04103 263756814 Physician Practices ME 14136492 1604166 Martin's Point Health Care Inc Bowdoin Medical Group LLC 331 Veranda Street Portland ME 04103 270221611 Physician Practices ME 12676963 1517487 Martin's Point Health Care Inc Martin's Point Community Health Administrators LLC 331 Veranda Street Portland ME 04103 800647782 Third Party Administration ME 1036056 1255628 Martin's Point Health Care Inc Martin's Point Community Health Plan Inc 331 Veranda Street Portland ME 04103 800647785 Reinsurance ME Martin's Point Health Care Inc C 65652 2786203 1.00000 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Martin's Point Community Health Plan Inc B 2615000 Cash