2025-11-17T15:41:40-06:00 2024-12-31 135565207 KPMG LLP 350 N 5TH STREET SUITE 600 MINNEAPOLIS MN 55401 990 2024-01-01 411891928 RHSC INC RHSC 9528836584 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 ALITA R RISINGER TREASURER 9528836584 2025-11-17 1 0 HOLLY K MOEN P01800653 6123055000 2024 2025-03-06 01:10:19Z ALITA R RISINGER 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 4034820 0 X WWW.HEALTHPARTNERS.COM X 1997 MN RHSC, INC. SUPPORTS TEACHING, RESEARCH ACTIVITIES AND CARE DELIVERY. 3 0 449 0 0 0 0 92293 20189161 3769288 114851 173239 0 0 20304012 4034820 0 0 0 0 17573089 3775643 0 0 0 1602995 789011 19176084 4564654 1127928 -529834 8609218 8247055 4756027 4829971 3853191 3417084 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 4563468 3769288 SEE SCHEDULE O - EXEMPT PURPOSE AND ACHIEVEMENTS FOR A DESCRIPTION OF PROGRAM SERVICE ACCOMPLISHMENTS 4563468 1 1 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 0 449 1 0 0 0 0 0 0 0 0 0 0 0 0 X 3 0 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 MN X SCOTT C PALMQUIST 9528837556 8170 33RD AVE S PO BOX 1309 MINNEAPOLIS MN 554401309 X ALITA RISINGER DIRECTOR & TREASURER 0.50 49.50 X X 0 725287 155052 EMILY BLOMBERG DIRECTOR PRESIDENT & CHAIR 0.50 49.50 X X 0 381025 32094 DELINDA H WASHINGTON DIRECTOR 0.50 59.50 X 0 954554 192918 DEBRA A RUDQUIST DIRECTOR (JAN - OCT) 0.00 45.00 X 0 414133 67666 MEGAN M REMARK DIRECTOR, PRESIDENT, CHAIR (JAN-SEPT) 0.00 55.00 X X 0 1058974 368676 PAMELA S ZOELLER DIRECTOR (JAN - OCT) 0.00 50.00 X 0 485480 73943 NANCY L EVERT SECRETARY 0.50 49.50 X 0 830206 248257 LEAH R HANSON NEUROSCIENCE RESEARCH DIR 47.00 0.00 X 258491 0 91212 MICHELLE T NOLTIMIER DIR OF DEV & STUDENT CLINICAL ED 42.50 0.00 X 224315 0 39389 KELLIE J SCHRANK PHYSICIAN ASSISTANT 50.00 0.00 X 221085 0 56776 JANET M HOLFOTH PHYSICIAN ASSISTANT 50.00 0.00 X 215081 0 40753 JOSEPH M UZPEN PHYSICIAN ASSISTANT 45.00 0.00 X 213026 0 55052 HEIDI G CONRAD FORMER TREASURER 0.00 0.00 X 0 704622 61676 1131998 5554281 1483464 147 1 1 0 0 92293 92293 PATIENT SERVICE 621300 3740055 3740055 OPERATIONS SUPPORT 621300 29233 29233 3769288 173239 173239 4034820 3769288 0 173239 2555944 2555944 178673 178673 868731 868731 172295 172295 68223 68223 377 377 424144 424144 24315 24315 4432 3246 1186 5188 5188 SUPPLIES 257614 257614 MISCELLANEOUS EXPENSE 2986 2986 EQUIPMENT MAINTENANCE 1732 1732 4564654 4563468 1186 0 5708745 4459463 2751288 3702568 50619 50619 5188 0 143997 85024 8609218 8247055 4670403 4744347 85624 85624 4756027 4829971 X 3853191 3417084 3853191 3417084 8609218 8247055 -529834 93727 0 X 0 1 X 1 0 X X 4 GROUP HEALTH INC 410797853 3 0 0 0 HEALTHPARTNERS INSTITUTE 411670163 10 0 0 0 REGIONS HOSPITAL 410956618 3 0 0 0 REGIONS HOSPITAL FOUNDATION 411888902 7 0 0 0 4 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 990 SCH. A, PART I, LINE 12G, 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). 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. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 0 PART II-B, LINE 1, LOBBYING ACTIVITIES: 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 41465 0 0 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, 2024 OR 2023 FOR UNRECOGNIZED TAX BENEFITS. 0 1 0 0 0 1 0 0 0 MEGAN M REMARK DIRECTOR, PRESIDENT, CHAIR (JAN-SEPT 0 713363 0 291457 0 54154 0 313500 0 55176 0 1427650 0 41922 DELINDA H WASHINGTON DIRECTOR 0 582321 0 362952 0 9281 0 138871 0 54047 0 1147472 0 0 NANCY L EVERT SECRETARY 0 529742 0 238830 0 61634 0 213042 0 35215 0 1078463 0 53243 ALITA RISINGER DIRECTOR & TREASURER 0 483006 0 238898 0 3383 0 105485 0 49567 0 880339 0 0 HEIDI G CONRAD FORMER TREASURER 0 0 0 0 0 704622 0 41006 0 20670 0 766298 0 704622 PAMELA S ZOELLER DIRECTOR (JAN - OCT) 0 362901 0 103590 0 18989 0 27100 0 46843 0 559423 0 0 DEBRA A RUDQUIST DIRECTOR (JAN - OCT) 0 315747 0 86676 0 11710 0 27756 0 39910 0 481799 0 0 EMILY BLOMBERG DIRECTOR PRESIDENT & CHAIR 0 285610 0 89002 0 6413 0 0 0 32094 0 413119 0 0 LEAH R HANSON NEUROSCIENCE RESEARCH DIR 214582 0 40111 0 3798 0 51774 0 39438 0 349703 0 0 0 KELLIE J SCHRANK PHYSICIAN ASSISTANT 150937 0 0 0 70148 0 17569 0 39207 0 277861 0 0 0 JOSEPH M UZPEN PHYSICIAN ASSISTANT 178905 0 0 0 34121 0 16507 0 38545 0 268078 0 0 0 MICHELLE T NOLTIMIER DIR OF DEV & STUDENT CLINICAL ED 176040 0 34794 0 13481 0 0 0 39389 0 263704 0 0 0 JANET M HOLFOTH PHYSICIAN ASSISTANT 162718 0 0 0 52363 0 16717 0 24036 0 255834 0 0 0 PART I, LINE 3 RHSC, INC. (RHSC) OFFICERS AND DIRECTORS ARE EMPLOYED BY REGIONS HOSPITAL (REGIONS), OR BY GROUP HEALTH, 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 $92,354 NANCY L. EVERT $54,415 ALITA RISINGER $50,924 DELINDA H. WASHINGTON $67,041 PART I, LINE 6 RHSC, INC. (RHSC) OFFICERS AND DIRECTORS ARE EMPLOYED BY REGIONS HOSPITAL (REGIONS), OR BY GROUP HEALTH, 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: HEIDI G. CONRAD $704,622 NANCY L. EVERT $ 53,243 MEGAN M. REMARK $ 41,922 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 NONPROFIT 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. HEALTHPARTNERS INCLUDES AN ARRAY OF TAX-EXEMPT AND TAXABLE ORGANIZATIONS. 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. HPI IS THE SOLE CORPORATE MEMBER OF RHSC. 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 IRC SECTION 501(C)(3) AND 509(A)(1) OR 509(A)(2). INFORMATION ABOUT THE COMMUNITY BENEFIT ACTIVITIES AND ACCOMPLISHMENTS OF RHSC' SUPPORTED ORGANIZATIONS ARE INCLUDED IN THE FORM 990 ANNUAL FILINGS OF THE HEALTHPARTNERS ORGANIZATIONS THAT ARE WITHIN THE IDENTIFIED CLASS. RHSC SUPPORTS TEACHING, RESEARCH ACTIVITIES AND CARE DELIVERY BY EMPLOYING STAFF TO PERFORM SERVICES ON BEHALF OF ITS SUPPORTED ORGANIZATIONS. RHSC'S EMPLOYEES INCLUDE MENTAL HEALTH PROFESSIONALS, RESEARCHERS, TECHNICIANS, SUPPORT WORKERS, ADMINISTRATIVE ASSISTANTS AND ADVANCED PRACTICE SERVICE PROVIDERS SUCH AS PHYSICIAN ASSISTANTS. RHSC'S PROVISION OF NON-PHYSICIAN PROVIDERS AND SUPPORT OF RELATED ORGANIZATIONS ARE ESSENTIAL TO SUPPORT ITS TAX-EXEMPT PURPOSE. BENEFIT TO THE COMMUNITY: AFTON PLACE AND HOVANDER HOUSE ARE TWO BEHAVIORAL HEALTH PROGRAMS OPERATED BY RHSC. 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 2024, HOVANDER HOUSE SERVED 294 ADULTS WITH AN AVERAGE LENGTH OF STAY OF 7 DAYS. APPROXIMATELY FOUR PERCENT OF PATIENTS DID NOT HAVE INSURANCE. IN ADDITION TO HELPING PATIENTS TRANSITION IN THE COMMUNITY, HOVANDER HOUSE HAS SAVED AN ESTIMATED 20 IMPATIENT HOSPITAL DAYS IN 2024. AFTON PLACE IS AN INTENSIVE RESIDENTIAL TREATMENT SERVICES FACILITY. AFTON PLACE ADMITTED AND SERVED 74 INDIVIDUALS WITH AN AVERAGE LENGTH OF STAY OF 77 DAYS IN 2024. OF THOSE ADMITTED TO AFTON PLACE, 69% CAME FROM A STAY IN A REGIONS HOSPITAL IMPATIENT BEHAVIORAL HEALTH UNIT OR HOVANDER HOUSE. 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 $15,000 TO $20,000 PER HOSPITALIZATION. RHSC PROVIDES PATIENTS EXPERIENCING MENTAL ILLNESS WITH APPROPRIATE CARE AND SUPPORT FROM MENTAL HEALTH PROFESSIONALS. FORM 990, PART VI, SECTION A, LINE 4 RHSC'S BYLAWS WERE AMENDED TO REDUCE THE SIZE OF THE CORPORATION'S BOARD OF DIRECTORS FROM FOUR DIRECTORS TO THE MINIMUM NUMBER OF DIRECTORS REQUIRED BY APPLICABLE LAW, TO ESTABLISH ONE-YEAR TERMS FOR DIRECTORS, AND TO PROVIDE FOR MEMBER APPOINTMENT OF THE PERSONS SERVING AS PRESIDENT AND TREASURER OF THE CORPORATION. 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 THE BOARD OF DIRECTORS IS COMPRISED OF THREE DIRECTORS APPOINTED BY THE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF GROUP HEALTH, INC. A MAJORITY OF THE DIRECTORS MUST BE DIRECTORS OF ONE OR MORE 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 - MERGER, CONSOLIDATION, OR JOINT VERTURE WITH ANY OTHER ORGANIZATION OR ENTITY - SALE, LEASE, EXCHANGE, MORTGAGE, PLEDGE, OR DISPOSITION OF ALL OR SUBSTANTIALLY ALL ASSETS - ANNUAL CAPITAL BUDGETS, OPERATING BUDGETS, AND LONG-RANGE STRATEGIC PLANS - UNBUDGETED CAPITAL EXPENDITURES OR FINANCIAL COMMITMENTS, OR GRANTS TO UNAFFILIATED ORGANIZATIONS - GUARANTEEING DEBTS OR OBLIGATIONS OF OTHER PERSON OR ENTITY - UNDERTAKING ANY LOAN OR INDEBTEDNESS - DISSOLUTION 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, 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. 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, 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. 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 GROUP HEALTH INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 410797853 CLINIC SERVICES MN 501(C)(3) 170(B)(1) (A)(III) HEALTHPARTNERS INC 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) GROUP HEALTH INC 0 REGIONS HOSPITAL 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 410956618 HOSPITAL MN 501(C)(3) 170(B)(1) (A)(III) GROUP HEALTH INC 0 REGIONS HOSPITAL FOUNDATION 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 411888902 PROVIDE SUPPORT TO HOSPITAL AND COMMUNITY HEALTH MN 501(C)(3) 170(B)(1) (A)(VI) GROUP HEALTH INC 0 HUDSON HOSPITAL INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 390804125 HOSPITAL WI 501(C)(3) 170(B)(1) (A)(III) GROUP HEALTH INC 0 HUDSON HOSPITAL FOUNDATION INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 391279567 PROVIDE SUPPORT TO HOSPITAL AND COMMUNITY HEALTH WI 501(C)(3) 170(B)(1) (A)(VI) HUDSON HOSPITAL INC 0 LAKEVIEW HEALTH FOUNDATION 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 411386635 PROVIDE SUPPORT TO HOSPITAL AND COMMUNITY HEALTH MN 501(C)(3) 170(B)(1) (A)(VI) LAKEVIEW HEALTH 0 LAKEVIEW MEMORIAL HOSPITAL ASSOCIATION INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 410811697 HOSPITAL MN 501(C)(3) 170(B)(1) (A)(III) LAKEVIEW HEALTH 0 STILLWATER MEDICAL GROUP 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 830379473 CLINIC STAFF AND FACILITIES MN 501(C)(3) 509(A)(3) TYPE I LAKEVIEW HEALTH 0 LAKEVIEW HEALTH 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 300221189 CORPORATE PLANNING AND OVERSIGHT MN 501(C)(3) 509(A)(3) TYPE II GROUP HEALTH INC 0 WESTFIELDS HOSPITAL INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 390808442 HOSPITAL WI 501(C)(3) 170(B)(1) (A)(III) GROUP HEALTH INC 0 WESTFIELDS HOSPITAL FOUNDATION INC 8170 33RD AVE S PO BOX 1309 MPLS MN 554401309 391770913 PROVIDE SUPPORT TO HOSPITAL AND COMMUNITY HEALTH WI 501(C)(3) 170(B)(1) (A)(VI) WESTFIELDS HOSPITAL INC 0 PARK NICOLLET HEALTH SERVICES 6500 EXCELSIOR BLVD ST LOUIS PARK MN 55426 363465840 CORPORATE PLANNING AND OVERSIGHT MN 501(C)(3) 509(A)(2) HEALTHPARTNERS INC 0 PARK NICOLLET FOUNDATION 6500 EXCELSIOR BLVD ST LOUIS PARK MN 55426 237346465 SUPPORT TO RELATED ENTITIES AND COMMUNITY HEALTH MN 501(C)(3) 170(B)(1) (A)(VI) PARK NICOLLET HEALTH SERVICES 0 PARK NICOLLET METHODIST HOSPITAL 6500 EXCELSIOR BLVD ST LOUIS PARK MN 55426 410132080 HOSPITAL MN 501(C)(3) 170(B)(1) (A)(III) PARK NICOLLET HEALTH SERVICES 0 PARK NICOLLET HEALTH CARE PRODUCTS 6500 EXCELSIOR BLVD ST LOUIS PARK MN 55426 010638901 DURABLE MEDICAL EQUIPMENT AND OTHER HEALTH CARE RETAIL SALES MN 501(C)(3) 509(A)(3) TYPE I PARK 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