2024-11-12T13:06:03-06:00 2023-12-31 135565207 KPMG LLP 350 N 5TH STREET SUITE 600 MINNEAPOLIS MN 55401 990 2023-01-01 411891928 RHSC INC RHSC 9528836584 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 ALITA R RISINGER TREASURER 9528836584 2024-11-12 1 0 HOLLY K MOEN P01800653 6123055000 2023 2024-10-15 13:58:12Z ALITA R RISINGER 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 20304012 0 X WWW.HEALTHPARTNERS.COM X 1997 MN RHSC, INC. SUPPORTS TEACHING, RESEARCH ACTIVITIES AND CARE DELIVERY. 3 0 470 0 0 0 0 0 33115796 20189161 14370 114851 2002 0 33132168 20304012 0 0 0 0 30117050 17573089 0 0 0 1690489 1602995 31807539 19176084 1324629 1127928 6992838 8609218 4267575 4756027 2725263 3853191 X RHSC, INC. SUPPORTS TEACHING, RESEARCH ACTIVITIES AND CARE DELIVERY BY PROVIDING ITS EMPLOYEES TO PERFORM SERVICES ON BEHALF OF ITS SUPPORTED ORGANIZATIONS. 0 0 19175592 20189161 SEE SCHEDULE O - EXEMPT PURPOSE AND ACHIEVEMENTS FOR A DESCRIPTION OF PROGRAM SERVICE ACCOMPLISHMENTS 19175592 1 0 0 1 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 470 1 0 0 0 0 0 0 0 0 0 0 0 0 X 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X KEVIN J BRANDT 9528836584 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 X DEBRA A RUDQUIST DIRECTOR 0.50 49.50 X 0 409934 64811 MEGAN M REMARK DIRECTOR, PRESIDENT, CHAIR 0.50 54.50 X X 0 965209 314288 PAMELA S ZOELLER DIRECTOR 0.50 49.50 X 0 481363 68951 ALITA RISINGER TREASURER 0.50 49.50 X 0 574234 112052 NANCY L EVERT SECRETARY 0.50 54.50 X 0 811272 238674 LEAH R HANSON NEUROSCIENCE RESEARCH DIR 50.00 0.00 X 254849 0 84703 MICHELLE T NOLTIMIER DIR OF DEV & STUDENT CLINICAL ED 40.00 0.00 X 219992 0 53351 JANET M HOLFOTH PHYSICIAN ASSISTANT 57.00 0.00 X 219403 0 192989 KELLIE J SCHRANK PHYSICIAN ASSISTANT 45.00 0.00 X 219208 0 53580 JOSEPH M UZPEN PHYSICIAN ASSISTANT 45.00 0.00 X 217432 0 52923 HEIDI G CONRAD FORMER TREASURER 0.00 0.00 X 0 179908 46240 1130884 3421920 1282562 136 1 1 0 0 OPERATIONS SUPPORT 621300 15334713 15334713 PATIENT SERVICE 621300 4854448 4854448 20189161 114851 114851 20304012 20189161 0 114851 13535613 13535613 709564 709564 3279015 3279015 48897 48897 614935 614935 31 31 53136 53136 18511 18511 523982 523982 62793 62793 38655 38655 8894 8894 102992 102992 SUPPLIES 108817 108817 MISCELLANEOUS EXPENSE 36157 35665 492 DUES & FEES 18171 18171 TRAINING & EDUCATION 10666 10666 5255 5255 19176084 19175592 492 0 264872 490005 3064263 5218740 3597805 2751288 50619 45431 14083 5188 51815 143997 6992838 8609218 4215760 4670403 51815 85624 4267575 4756027 X 2725263 3853191 2725263 3853191 6992838 8609218 1127928 0 X 0 1 X 1 0 X X 4 REGIONS HOSPITAL 410956618 3 0 0 0 REGIONS HOSPITAL FOUNDATION 411888902 7 0 0 0 HEALTHPARTNERS INSTITUTE 411670163 10 0 0 0 GROUP HEALTH PLAN INC 410797853 3 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 SCHEDULE A, PART IV, SECTION A, LINE 1 THE ARTICLES OF INCORPORATION OF RHSC PROVIDE THAT THE CORPORATION IS ORGANIZED AND OPERATED EXCLUSIVELY FOR RELIGIOUS, CHARITABLE, AND EDUCATIONAL PURPOSES, EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, OR TO CARRY OUT THE PURPOSES OF THE ORGANIZATIONS WHICH ARE AFFILIATED WITH HEALTHPARTNERS, INC., THE SOLE CORPORATE MEMBER OF RHSC. SCHEDULE A, PART IV, SECTION C, LINE 1 THE BYLAWS OF RHSC PROVIDE THAT AT LEAST A MAJORITY OF THE DIRECTORS IN OFFICE SHALL AT ALL TIMES BE DIRECTORS OR OFFICERS OF ONE OR MORE OF THE SUPPORTED ORGANIZATIONS OF RHSC. 990 SCH. A, PART I, LINE 11G, COL. (V) MONETARY SUPPORT NO DIRECT MONETARY SUPPORT IS INDICATED FROM RHSC, INC (RHSC) TO ITS SUPPORTED ORGANIZATIONS: HOWEVER, RHSC PERFORMS SERVICES WHICH ITS SUPPORTED ORGANIZATIONS WOULD OTHERWISE PERFORM ON THEIR OWN. THE NATURE OF THESE SERVICES, AND THE RELATIONSHIP WITH ITS SUPPORTED ORGANIZATIONS IS DESCRIBED IN SCHEDULE O "FORM 990, PART III, LINE 4A, EXEMPT PURPOSE AND ACHIEVEMENTS". HEALTHPARTNERS INSTITUTE IS NOT A 509(A)(1) OR (A)(2) BUT MEETS 509(A)(2) DESIGNATION IF IT WERE AN (A)(2). 0 0 0 0 0 0 0 0 1 0 0 PART II-B, LINE 1: RHSC, INC. PAYS FOR CERTAIN CORPORATE AND EMPLOYEE PROFESSIONAL ASSOCIATION MEMBERSHIPS. A PORTION OF SUCH MEMBERSHIP DUES POTENTIALLY COULD BE USED BY THE PROFESSIONAL ASSOCIATIONS FOR LOBBYING ACTIVITIES. 9154 9154 0 41465 36277 5188 5188 LEASE OBLIGATION 85624 85624 X PART X, LINE 2: RHSC IS INCLUDED IN THE HEALTHPARTNERS, INC. (HP) CONSOLIDATED AUDITED FINANCIAL STATEMENT. JUDGMENT IS REQUIRED IN DETERMINING HP'S EFFECTIVE TAX RATE AND IN EVALUATING ITS TAX POSITION. HP ESTABLISHES ACCRUALS FOR UNCERTAIN TAX POSITIONS WHEN, DESPITE THE BELIEF THAT HP'S TAX RETURN POSITIONS ARE FULLY SUPPORTABLE, HP BELIEVES THAT ITS POSITION MAY NOT BE FULLY SUSTAINED, PRIMARILY GIVEN THE RISKS ASSOCIATED WITH TAX LITIGATION OR DISPUTES. THE UNCERTAIN TAX POSITION ACCRUALS ARE ADJUSTED IN LIGHT OF CHANGING FACTS AND CIRCUMSTANCES, SUCH AS THE PROGRESS OF TAX AUDITS, CASE LAW, AND EMERGING LEGISLATION. HP'S EFFECTIVE TAX RATE INCLUDES THE IMPACT OF CHANGES TO THE ACCRUALS FOR UNCERTAIN TAX POSITIONS. HP CLASSIFIES INTEREST AND PENALTIES ON TAX-RELATED MATTERS AS INCOME AND OTHER TAX EXPENSE IN THE CONSOLIDATED STATEMENTS OF OPERATIONS AND CHANGES IN NET ASSETS. HP RECORDED NO LIABILITIES AT DECEMBER 31, 2023 OR 2022 FOR UNRECOGNIZED TAX BENEFITS. 0 1 0 0 0 1 0 0 0 MEGAN M REMARK DIRECTOR, PRESIDENT, CHAIR 0 616122 0 306751 0 42336 0 264033 0 50255 0 1279497 0 27048 NANCY L EVERT SECRETARY 0 503395 0 251362 0 56515 0 206367 0 32307 0 1049946 0 36575 ALITA RISINGER TREASURER 0 452971 0 40000 0 81263 0 72026 0 40026 0 686286 0 0 PAMELA S ZOELLER DIRECTOR 0 364895 0 107987 0 8481 0 25756 0 43195 0 550314 0 0 DEBRA A RUDQUIST DIRECTOR 0 307131 0 91223 0 11580 0 26592 0 38219 0 474745 0 0 JANET M HOLFOTH PHYSICIAN ASSISTANT 155643 0 0 0 63760 0 170390 0 22599 0 412392 0 0 0 LEAH R HANSON NEUROSCIENCE RESEARCH DIR 208987 0 42116 0 3746 0 47618 0 37085 0 339552 0 0 0 MICHELLE T NOLTIMIER DIR OF DEV & STUDENT CLINICAL ED 176673 0 36620 0 6699 0 17177 0 36174 0 273343 0 0 0 KELLIE J SCHRANK PHYSICIAN ASSISTANT 147151 0 0 0 72057 0 17417 0 36163 0 272788 0 0 0 JOSEPH M UZPEN PHYSICIAN ASSISTANT 175061 0 0 0 42371 0 16816 0 36107 0 270355 0 0 0 HEIDI G CONRAD FORMER TREASURER 0 0 0 179908 0 0 0 33699 0 12541 0 226148 0 0 PART I, LINE 3 RHSC, INC. (RHSC) OFFICERS AND DIRECTORS ARE EMPLOYED BY REGIONS HOSPITAL (REGIONS), OR BY GROUP HEALTH PLAN, INC. (GHI), BOTH OF WHICH ARE RELATED ORGANIZATIONS. THE RELATED ORGANIZATIONS DETERMINE THE COMPENSATION FOR THE OFFICERS AND DIRECTORS. PART I, LINE 4B DEFERRED COMPENSATION IN COLUMN C OF SCHEDULE J, PART II INCLUDES AMOUNTS FROM A NONQUALIFIED 457(F) PLAN FOR THE FOLLOWING DIRECTORS AND OFFICERS: MEGAN M. REMARK $66,213 NANCY L. EVERT $54,148 ALITA RISINGER $34,771 PART I, LINE 6 RHSC, INC. (RHSC) OFFICERS AND DIRECTORS ARE EMPLOYED BY REGIONS HOSPITAL (REGIONS), OR BY GROUP HEALTH PLAN, INC. (GHI), BOTH OF WHICH ARE RELATED ORGANIZATIONS. COMPENSATION REPORTED IN FORM 990, PART VII INCLUDES ANY COMPENSATION DERIVED FROM REGIONS OR GHI'S LEADERSHIP INCENTIVE PROGRAM, WHICH INCENTS AND REWARDS BUSINESS LEADERS WHO HELP THE ORGANIZATION ACHIEVE STATED BUSINESS AND/OR HEALTH IMPROVEMENT GOALS FOR A SPECIFIC FISCAL YEAR. THE PROGRAMS ARE A KEY ELEMENT OF THE PARTICIPANT'S TOTAL COMPENSATION PACKAGE. THE LEADERSHIP INCENTIVE PROGRAMS' REWARDS ARE BASED ON POSITION IN THE ORGANIZATION (E.G., SENIOR VICE PRESIDENT, VICE PRESIDENT, DIRECTOR, MANAGER, OTHER SPECIFICALLY IDENTIFIED LEADERS) AND THE ACHIEVEMENT OF BUSINESS AND HEALTH IMPROVEMENT GOALS ESTABLISHED IN A VARIETY OF AREAS. GOALS WILL BE RELATED TO THE ORGANIZATION'S STRATEGIC PLAN AND WILL BE BALANCED. THESE AREAS MAY INCLUDE, BUT ARE NOT LIMITED TO, PATIENT SATISFACTION, EMPLOYEE SATISFACTION, WORK ENVIRONMENT, HEALTH EQUITY, HEALTHCARE AFFORDABILITY MEASURES, HEALTH CARE AND CARE DELIVERY MARKET SHARE, AND FINANCIAL PERFORMANCE (OPERATING INCOME), ETC., AND WILL BE DEFINED ANNUALLY FOR EACH YEAR'S PROGRAM. AN OPERATING INCOME THRESHOLD MUST BE MET FOR ANY PAYMENT TO BE MADE FROM THE PROGRAM AND THERE IS A CAP ON THE MAXIMUM INCENTIVE POTENTIALLY AVAILABLE TO EACH PARTICIPANT. 990, SCH. J, PART II - PRIOR REPORTED COMPENSATION COLUMN (F) INCLUDES AMOUNTS PAID TO PARTICIPANTS IN THE CURRENT YEAR, WHICH WERE PREVIOUSLY REPORTED IN COLUMN (C) OF PRIOR YEARS' 990'S, AS RETIREMENT AND DEFERRED COMPENSATION, FOR THE FOLLOWING DIRECTORS, OFFICERS AND FORMER OFFICER: MEGAN M. REMARK $ 27,048 NANCY L. EVERT $ 36,575 ANY ANALYSIS OF EARNINGS FOR THE CURRENT YEAR, FOR THESE PARTICIPANTS OF THE PLAN, SHOULD EXCLUDE THE AMOUNT IN COLUMN F AS PART OF THE ANALYSIS SINCE THOSE EARNINGS WERE ALREADY REPORTED IN COLUMN (C) OF PREVIOUS YEARS' 990'S. 990, PART III, LINE 4A: EXEMPT PURPOSE AND ACHIEVEMENTS CORPORATE STRUCTURE, PURPOSE, GOVERNANCE RHSC, INC. (RHSC) IS A MINNESOTA NON-PROFIT CORPORATION RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE ("IRC") SECTION 501(C)(3) AND IS PART OF THE FAMILY OF HEALTHPARTNERS ORGANIZATIONS "HEALTHPARTNERS." FOUNDED IN 1957, HEALTHPARTNERS IS AN INTEGRATED HEALTH CARE ORGANIZATION, PROVIDING HEALTH CARE SERVICES AND HEALTH PLAN FINANCING AND ADMINISTRATION. HEALTHPARTNERS' MISSION IS TO IMPROVE HEALTH AND WELL-BEING IN PARTNERSHIP WITH OUR MEMBERS, PATIENTS, AND COMMUNITY. HEALTHPARTNERS SEEKS TO TRANSFORM HEALTH CARE THROUGH A RELENTLESS FOCUS ON THE TRIPLE AIM - PROVIDING EXCEPTIONAL EXPERIENCE FOR THE INDIVIDUAL, IMPROVING THE HEALTH OF THE POPULATION, AND MAINTAINING AFFORDABILITY. HEALTHPARTNERS, INC. (HPI) IS A MINNESOTA NONPROFIT CORPORATION AND LICENSED HEALTH MAINTENANCE ORGANIZATION (HMO) RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(C)(4) AND IS THE PARENT ENTITY OF HEALTHPARTNERS ORGANIZATIONS REFERRED TO COLLECTIVELY AS "HEALTHPARTNERS". HEALTHPARTNERS INCLUDES AN ARRAY OF TAX-EXEMPT AND TAXABLE ORGANIZATIONS. HEALTHPARTNERS PROVIDES A FULL RANGE OF HEALTH CARE DELIVERY AND HEALTH PLAN SERVICES INCLUDING INSURANCE, PATIENT CARE, ADMINISTRATION AND HEALTH AND WELL-BEING PROGRAMS. HEALTHPARTNERS HEALTH PLANS SERVE MORE THAN 1.8 MILLION MEDICAL AND DENTAL MEMBERS NATIONWIDE. HEALTHPARTNERS MEDICAL CARE SYSTEM INCLUDES MORE THAN 2,000 EMPLOYED PHYSICIANS AND DENTISTS, EIGHT OWNED HOSPITALS WITH OVER 1,000 ACUTE CARE BEDS, OVER 100 PRIMARY AND SPECIALTY CARE MEDICAL FACILITIES AND DENTAL FACILITIES WITH PRACTICES IN MINNESOTA AND WESTERN WISCONSIN SERVING MORE THAN 1.34 MILLION PATIENTS. HEALTHPARTNERS HEALTH PLANS CONTRACT WITH OTHER PRIMARY AND SPECIALTY MEDICAL FACILITIES AND DENTAL FACILITIES, PHYSICIAN GROUPS, HOSPITALS, AND RELATED HEALTHCARE PROVIDERS TO SERVE PLAN MEMBERS. HEALTHPARTNERS ALSO PROVIDES MEDICAL EDUCATION AND TRAINING TO MEDICAL PROFESSIONALS AND CONDUCTS RESEARCH AND FUNDRAISING ACTIVITIES THAT SUPPORT THE HEALTH CARE DELIVERY SYSTEM. HEALTHPARTNERS COLLABORATES WITH OTHER PLANS, CARE PROVIDERS AND OTHER COMMUNITY AND BUSINESS ORGANIZATIONS IN THE REGION AND THROUGHOUT THE NATION TO INCREASE ACCESS, CREATE AND SHARE QUALITY MEASURES AND INITIATIVES, PARTICIPATE IN DEVELOPMENT OF PUBLIC POLICY, AND COLLABORATE IN IMPROVEMENTS THAT SUPPORT THE TRIPLE AIM. AMONG HEALTHPARTNERS' SIGNATURE INITIATIVES CONTINUING IN 2023 ARE TOTAL COST OF CARE MEASUREMENTS (A NATIONALLY RECOGNIZED METRIC, ENDORSED BY THE NATIONAL QUALITY FORUM, ENABLING MEASUREMENT AND INCENTIVES BASED ON COORDINATION AND EVIDENCE-BASED PRACTICES), MENTAL HEALTH (REDUCING STIGMA, AND ASSURING ACCESS TO HIGH QUALITY CARE IN THE MOST APPROPRIATE SETTINGS), CHILDREN'S HEALTH (IMPROVING CHILD HEALTH BY PROMOTING EARLY BRAIN DEVELOPMENT, PROVIDING FAMILY CENTERED CARE, AND STRENGTHENING COMMUNITIES), EQUITY, INCLUSION, AND ANTI-RACISM (ADDRESSING HEALTH EQUITY, ELIMINATING HEALTH CARE DISPARITIES, INCREASING DIVERSITY AND INCLUSION IN OUR WORKPLACES, BUILDING AN ANTI-RACIST CULTURE, AND DEEPENING OUR COLLECTIVE UNDERSTANDING OF CULTURAL HUMILITY) AND SUSTAINABILITY (ENERGY EFFICIENCY, WASTE REDUCTION, AND RESOURCE MANAGEMENT). A COMPLETE LISTING OF ALL ORGANIZATIONS WITHIN HEALTHPARTNERS, AND THE RELATIONSHIP BETWEEN THEM, CAN BE FOUND ON SCHEDULE R WITHIN THIS 990 RETURN. DETAILED INFORMATION ABOUT THE COMMUNITY BENEFIT ACTIVITIES AND ACCOMPLISHMENTS OF EACH TAX-EXEMPT ORGANIZATION CAN BE FOUND IN THE INDIVIDUAL FORM 990 RETURN FOR THAT ORGANIZATION. HEALTHPARTNERS, INC. (HPI) IS THE PARENT ENTITY OF HEALTHPARTNERS AND IS THE SOLE CORPORATE MEMBER OF RHSC. HPI IS A MINNESOTA NON-PROFIT CORPORATION AND LICENSED HEALTH MAINTENANCE ORGANIZATION (HMO) RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAX UNDER INTERNAL REVENUE CODE (IRC) SECTION 501(C)(4). RHSC IS RECOGNIZED AS A SUPPORTING ORGANIZATION UNDER IRC SECTION 509(A)(3). RHSC PERFORMS CERTAIN FUNCTIONS ON BEHALF OF ITS SUPPORTED ORGANIZATIONS, WHICH ARE DEFINED, BY CLASS, AS ORGANIZATIONS AFFILIATED WITH HEALTHPARTNERS AND DESCRIBED IN 501(C)(3) AND 509(A)(1) OR 509(A)(2). INFORMATION ABOUT THE COMMUNITY BENEFIT ACTIVITIES AND ACCOMPLISHMENTS OF RHSC'S SUPPORTED ORGANIZATIONS ARE INCLUDED IN THE FORM 990 ANNUAL FILINGS OF THE HEALTHPARTNERS ENTITIES THAT ARE WITHIN THE IDENTIFIED CLASS. RHSC SUPPORTS TEACHING, RESEARCH ACTIVITIES AND CARE DELIVERY BY EMPLOYING PERSONS TO PERFORM SERVICES ON BEHALF OF ITS SUPPORTED ORGANIZATIONS. RHSC'S EMPLOYEES INCLUDE MENTAL HEALTH PROFESSIONALS, RESEARCHERS, TECHNICIANS, SUPPORT WORKERS AND SECRETARIES, AND SOME ADVANCED PRACTICE SERVICE PROVIDERS SUCH AS PHYSICIAN ASSISTANTS. RHSC'S PROVISION OF NON-PHYSICIAN PROVIDERS AND SUPPORT OF RELATED ORGANIZATIONS ARE ESSENTIAL TO ACHIEVE ITS TAX-EXEMPT PURPOSES. BENEFIT TO THE COMMUNITY AFTON PLACE, AND HOVANDER HOUSE ARE TWO BEHAVIORAL HEALTH PROGRAMS OPERATED BY RHSC. HOVANDER HOUSE: HOVANDER HOUSE IS A SHORT-TERM CRISIS STABILIZATION RESIDENTIAL FACILITY DESIGNED TO HELP INDIVIDUALS RECOVERING FROM MODERATE TO SEVERE MENTAL ILLNESS. HOVANDER HOUSE IS STAFFED BY MENTAL HEALTH PROFESSIONALS AND PRACTITIONERS AND CAN ACCOMMODATE UP TO NINE ADULTS AT ONE TIME. IN 2023, HOVANDER HOUSE SERVED 249 ADULTS WITH AN AVERAGE LENGTH OF STAY OF 8 DAYS. APPROXIMATELY 5 PERCENT OF PATIENTS REFERRED TO HOVANDER HOUSE DID NOT HAVE INSURANCE. IN ADDITION TO HELPING PATIENTS TRANSITION INTO THE COMMUNITY, HOVANDER HOUSE HAS SAVED AN ESTIMATED 20 INPATIENT HOSPITAL DAYS IN 2023. AFTON PLACE: AFTON PLACE BEGAN SERVING PATIENTS IN APRIL OF 2019. THIS STATE-OF-THE-ART 16-BED FACILITY HAS SINGLE ROOMS, EACH WITH ITS OWN BATHROOM. THE FACILITY FEATURES TWO SPACIOUS GROUP ROOMS, A SENSORY INTEGRATION ROOM, AND A LARGE OPEN DINING AREA WITH ITS OWN COMMERCIAL KITCHEN. AFTON PLACE ADMITTED AND SERVED 91 INDIVIDUALS IN 2023. OF THOSE ADMITTED TO AFTON PLACE, 69% CAME FROM A STAY IN A REGIONS HOSPITAL INPATIENT BEHAVIORAL HEALTH UNIT. HEALTHPARTNERS IS COMMITTED TO ADDRESSING THE BARRIERS THAT MENTAL HEALTH PATIENTS HAVE IN OBTAINING THE BEST HEALTH CARE AT THE RIGHT TIME AND IN THE RIGHT PLACE. GAPS IN ADEQUATE HEALTH CARE AND MEDICATION COVERAGE ARE ASSOCIATED WITH INCREASED RISK OF PSYCHIATRIC HOSPITALIZATIONS, WHICH CAN COST THE COMMUNITY AN AVERAGE OF $12,000-$15,000 PER HOSPITALIZATION. RHSC PROVIDES PATIENTS EXPERIENCING MENTAL ILLNESS WITH APPROPRIATE CARE AND SUPPORT FROM MENTAL HEALTH PROFESSIONALS. FORM 990, PART VI, SECTION A, LINE 6 HEALTHPARTNERS, INC. (HP) IS THE SOLE CORPORATE MEMBER OF RHSC. FORM 990, PART VI, SECTION A, LINE 7A HP, THE SOLE CORPORATE MEMBER DOES NOT APPOINT OR APPROVE RHSC'S DIRECTORS: HOWEVER, GROUP HEALTH PLAN, INC. (GHI), ANOTHER ORGANIZATION FOR WHICH HP IS THE SOLE CORPORATE MEMBER, APPOINTS THE DIRECTORS OF RHSC. A MAJORITY OF THE FOUR DIRECTORS MUST BE DIRECTORS OR OFFICERS OF RHSC'S SUPPORTED ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 7B HP, THE SOLE CORPORATE MEMBER, MUST APPROVE THE DECISIONS OF THE BOARD OF DIRECTORS AS FOLLOWS: - AMENDMENT OF ARTICLES OR BYLAWS - ANNUAL OPERATING AND CAPITAL BUDGETS - MERGER OR CONSOLIDATION WITH ANOTHER CORPORATION - DISPOSITION OF SUBSTANTIALLY ALL ASSETS - DISSOLUTION - ACTIVITIES THAT COULD IMPACT THE SOLE CORPORATE MEMBER'S STATUS OR THAT OF ITS RELATED ORGANIZATIONS FORM 990, PART VI, SECTION B, LINE 11B RHSC'S 990 RETURN HAS A COMPREHENSIVE REVIEW PROCESS THAT IS FOLLOWED BEFORE IT IS PRESENTED TO THE GOVERNING BODY OF RHSC. THE REVIEW PROCESS INCLUDES A LAYERED REVIEW BY THE TAX DEPARTMENT OF GROUP HEALTH PLAN, INC. (GHI), THE MANAGEMENT TEAM OF RHSC, GHI'S INTERNAL LEGAL DEPARTMENT AND RHSC'S OUTSIDE INDEPENDENT ACCOUNTANTS. EACH ONE OF THOSE AREAS HAS AN OPPORTUNITY TO REVIEW, ASK QUESTIONS AND MAKE COMMENTS BACK TO THE TAX DEPARTMENT OF GHI BEFORE THE FORM 990 IS COMPLETED AND PRESENTED TO THE GOVERNING BODY OF RHSC. RHSC MAKES AVAILABLE TO THE GOVERNING BODY (BOARD OF DIRECTORS) A COPY OF THE 990 FOR REVIEW AND COMMENT PRIOR TO THE FILING OF THE 990 RETURN. THIS COPY IS PROVIDED TO THE FULL BOARD OF DIRECTORS IN A PRE-MEETING PACKET, AND IS AN AGENDA ITEM AT THE COMMITTEE MEETING. THIS PROCESS IS NOTED AND DOCUMENTED IN THE WRITTEN MINUTES OF THE BOARD OF DIRECTORS MEETING. FORM 990, PART VI, SECTION B, LINE 12C THE RHSC BOARD MONITORS POTENTIAL CONFLICTS OF INTEREST ON THE PART OF ITS BOARD MEMBERS, PRINCIPAL OFFICERS, MEMBERS OF COMMITTEES WITH BOARD DELEGATED POWERS, AND KEY EMPLOYEES ("COVERED PERSONS") BY MAINTAINING A CONFLICT OF INTEREST POLICY. UNDER THE POLICY, COVERED PERSONS ANNUALLY ARE PROVIDED WITH A COPY OF THE POLICY AND ASKED TO COMPLETE A QUESTIONNAIRE IDENTIFYING ANY POTENTIAL CONFLICTS OF INTERESTS. THE GENERAL COUNSEL OF HEALTHPARTNERS REVIEWS THE QUESTIONNAIRE RESPONSES AND DEVELOPS A REPORT DETAILING ANY POTENTIALLY MATERIAL CONFLICTS FOR THE PRESIDENT AND CHAIR OF THE BOARD. A VERBAL SUMMARY IS ALSO GIVEN TO THE FULL BOARD OR APPROPRIATE COMMITTEE ENDING WITH A REMINDER TO COVERED PERSONS OF THE POLICY'S MANDATE THAT EACH PERSON IS OBLIGATED TO DISCLOSE ANY NEW POTENTIAL CONFLICTS AS THEY MAY ARISE THROUGHOUT THE YEAR. BOARD AGENDAS AND EXECUTIVE DECISIONS ARE MONITORED IN RELATION TO THIS POLICY. IF A DISCLOSED CONFLICT OF INTEREST IMPACTS AN AGENDA ITEM OR DECISION, THE COVERED PERSON WOULD BE EXCLUDED FROM VOTING AND MAY BE EXCLUDED FROM RECEIVING INFORMATION AND/OR PARTICIPATING IN DELIBERATIONS, DEPENDING ON THE CIRCUMSTANCES. FORM 990, PART VI, SECTION B, LINE 15 RHSC'S PRESIDENT AND OTHER OFFICERS ARE EMPLOYED BY GROUP HEALTH PLAN, INC. (GHI) OR REGIONS HOSPITAL (REGIONS), RELATED ORGANIZATIONS. GHI AND REGIONS HAVE ANNUAL PROCESSES TO REVIEW THE MARKET COMPARABILITY OF THE TOTAL COMPENSATION OF THE RHSC PRESIDENT AND OTHER OFFICERS. EVERY THREE YEARS, THE INDEPENDENT COMPENSATION COMMITTEE OF THE GHI BOARD OF DIRECTORS (THE "COMMITTEE"), RETAINS AN EXTERNAL COMPENSATION EXPERT TO CONDUCT AN EXTENSIVE MARKET COMPARABILITY REVIEW FOR ALL OFFICERS OF THE ORGANIZATION. THE REVIEW INCLUDES ALL COMPONENTS OF TOTAL COMPENSATION: BASE SALARY, ANNUAL INCENTIVES, BENEFITS AND PERQUISITES. THE MARKET SURVEY RESULTS ARE PRESENTED TO, REVIEWED BY AND APPROVED BY THE APPROPRIATE COMMITTEE. BASED ON THIS DATA, THE COMMITTEE DETERMINES MINIMUM AND MAXIMUM TOTAL COMPENSATION RANGES FOR EACH EMPLOYED OFFICER. IN INTERIM YEARS, GHI'S HUMAN RESOURCES STAFF, UNDER THE COMMITTEE'S DIRECTION, UPDATES CHANGES IN THE SALARY STRUCTURE BASED ON THE SAME INDEPENDENT STUDIES PERFORMED BY THE COMPENSATION CONSULTANT FOR THE COMMITTEE. FOR CERTAIN POSITIONS FULL INDEPENDENT REVIEWS ARE PERFORMED TO SET SALARY RANGES BASED ON THE COMPETITIVE MARKET DATA SPECIFIC TO THOSE POSITIONS. THE COMMITTEE REVIEWS AND APPROVES EACH YEAR'S COMPENSATION RESULTS. IN ALL CASES, COMMITTEE MEMBERS COMPLETE AN ANNUAL CONFLICT OF INTEREST SURVEY TO ASSURE THE COMPENSATION COMMITTEE MEMBERS' INDEPENDENCE AND THIS IS UPDATED AT ANY MEETING AT WHICH DECISIONS ARE BEING MADE. STAFF (OTHER THAN THE SECRETARY TO THE BOARD) IS NOT IN THE ROOM DURING DELIBERATIONS OR VOTE INCLUDING EXECUTIVE SESSIONS, AND CONTEMPORANEOUS MINUTES ARE KEPT. WITH RHSC'S BOARD OF DIRECTORS INPUT, THE PRESIDENT AND CEO OF GHI CONDUCTS THE ANNUAL PERFORMANCE REVIEW AND DETERMINES THE COMPENSATION OF THE RHSC PRESIDENT AND THE OTHER GHI-EMPLOYED OFFICERS OF RHSC. UNDER DELEGATION OF AUTHORITY FROM THE GHI BOARD, THE GHI PRESIDENT & CEO DETERMINES THE COMPENSATION OF OTHER GHI-EMPLOYED OFFICERS WITHIN THE COMPENSATION RANGES DETERMINED BY THE COMMITTEE. ANY EXCEPTIONS TO COMPENSATION IN EXCESS OF THE APPROVED RANGES ARE APPROVED BY THE COMMITTEE. TOTAL COMPENSATION IS APPROPRIATELY DOCUMENTED ON THE FORM 990 AND ON THE EMPLOYEE'S W-2. FORM 990, PART VI, SECTION C, LINE 19 RHSC'S FINANCIAL STATEMENTS AND 990 RETURNS ARE MADE AVAILABLE TO ANY PERSON WHO REQUESTS THE INFORMATION FROM RHSC OR HEALTHPARTNERS. RHSC'S ARTICLES OF INCORPORATION ARE AVAILABLE TO ANY PERSON WHO REQUESTS THE INFORMATION THROUGH THE MINNESOTA SECRETARY OF STATE'S OFFICE. 990, PART VII, SEC A, LN 1A, COL (B): AVERAGE HOURS - RELATED ORGANIZATION DIRECTORS AND OFFICERS OF RHSC ARE EMPLOYED AND COMPENSATED BY GHI OR REGIONS. REPORTED AVERAGE HOURS WORKED ARE BASED ON THEIR TOTAL COMPENSATION FROM ALL RELATED ORGANIZATIONS. HEALTHPARTNERS INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 411693838 HYBRID STAFF MODEL/NETWORK MODEL HEALTH MAINTENANCE ORGANIZATION MN 501(C)(4) N/A 0 HPI-RAMSEY 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 411793333 CORPORATE PLANNING AND OVERSIGHT MN 501(C)(3) 509(A)(3) TYPE I HEALTHPARTNERS INC 0 GROUP HEALTH PLAN INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 410797853 STAFF MODEL HEALTH MAINTENANCE ORGANIZATION MN 501(C)(3) 170(B)(1) (A)(III) HEALTHPARTNERS INC 0 RH WISCONSIN INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 202287016 CORPORATE PLANNING AND OVERSIGHT WI 501(C)(3) 509(A)(3) TYPE I HPI - RAMSEY 0 HEALTHPARTNERS INSTITUTE 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 411670163 HEALTHCARE EDUCATION AND RESEARCH MN 501(C)(3) 509(A)(3) TYPE I HEALTHPARTNERS INC 0 CAPITOL VIEW TRANSITIONAL CARE CENTER 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 412011453 TRANSITIONAL CARE SERVICES, STEP DOWN FROM INPATIENT HOSPITAL MN 501(C)(3) 170(B)(1) (A)(III) HPI - RAMSEY 0 REGIONS HOSPITAL 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 410956618 HOSPITAL MN 501(C)(3) 170(B)(1) (A)(III) HPI - 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