Form990
Click to see attachment
Department of the Treasury
Internal Revenue Service
Return of Organization Exempt From Income Tax
Under section 501(c), 527, or 4947(a)(1) of the Internal Revenue Code (except black lung benefit trust or private foundation)

MediumBullet The organization may have to use a copy of this return to satisfy state reporting requirements.
OMB No. 1545-0047
2010
Open to Public Inspection
A For the calendar year, or tax year beginning 01-01-2010 and ending 12-31-2010
BCheck if applicable:
CName of organization
PREFERREDONE COMMUNITY HEALTH PLAN
 
Doing Business As
 
 
Number and street (or P.O. box if mail is not delivered to street address)
6105 GOLDEN HILLS DRIVE
 
Room/suite
City or town, state or country, and ZIP + 4
GOLDEN VALLEY, MN55416
D Employer identification number

41-1796007
E Telephone number

G Gross receipts $ 167,362,776
F Name and address of principal officer:
MARCUS MERZ
6105 GOLDEN HILLS DRIVE
GOLDEN VALLEY,MN55416
I
Tax-exempt status: ( 4 ) LeftBullet (insert no.) or
J
Website:MediumBullet
WWW.PREFERREDONE.COM
H(a)
Is this a group return for
affiliates?
H(b)
Are all affiliates included?
If "No," attach a list. (see instructions)
H(c)
Group exemption number MediumBullet  
K Form of organization:
 
L Year of formation: 1994
M State of legal domicile: MN
Part I
Summary
Activities & Governance 1 Briefly describe the organization’s mission or most significant activities: SEE SCHEDULE O FOR ORGANIZATION MISSION STATEMENT
2 Check this box MediumBullet
3 Number of voting members of the governing body (Part VI, line 1a) .... 3 9
4 Number of independent voting members of the governing body (Part VI, line 1b) .... 4 7
5 Total number of individuals employed in calendar year 2010 (Part V, line 2a) ... 5 0
6 Total number of volunteers (estimate if necessary) .... 6 0
7a Total unrelated business revenue from Part VIII, column (C), line 12 .. 7a 2,221,605
b Net unrelated business taxable income from Form 990-T, line 34 .. 7b 0
Revenues; Prior Year Current Year
8 Contributions and grants (Part VIII, line 1h) ......... 0 0
9 Program service revenue (Part VIII, line 2g) ......... 136,849,108 138,350,291
10 Investment income (Part VIII, column (A), lines 3, 4, and 7d ) .... 861,697 954,755
11 Other revenue (Part VIII, column (A), lines 5, 6d, 8c, 9c, 10c, and 11e) 0 500,000
12 Total revenue—add lines 8 through 11 (must equal Part VIII, column (A), line 12)................... 137,710,805 139,805,046
Expenses; 13 Grants and similar amounts paid (Part IX, column (A), lines 1–3 )... 0 0
14 Benefits paid to or for members (Part IX, column (A), line 4) .... 0 0
15 Salaries, other compensation, employee benefits (Part IX, column (A), lines 5–10) 264,400 255,840
16a Professional fundraising fees (Part IX, column (A), line 11e).... 0 0
b Total fundraising expenses (Part IX, column (D), line 25) MediumBullet0    
17 Other expenses (Part IX, column (A), lines 11a–11d, 11f–24f).... 140,583,610 139,855,701
18 Total expenses. Add lines 13–17 (must equal Part IX, column (A), line 25) 140,848,010 140,111,541
19 Revenue less expenses. Subtract line 18 from line 12...... -3,137,205 -306,495
Net Assets or Fund Balances; Beginning of Current Year End of Year
20 Total assets (Part X, line 16)............ 28,533,079 30,772,746
21 Total liabilities (Part X, line 26)............ 16,817,679 18,557,275
22 Net assets or fund balances. Subtract line 21 from line 20 ..... 11,715,400 12,215,471
Part II
Signature Block
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than officer) is based on all information of which preparer has any knowledge.
Sign Here
JumboBullet
Signature of officer Date
JumboBullet
Type or print name and title.
Paid Preparer's Use Only Preparer's
signatureBig Right Arrow 		Date
right pointing bullet image Preparer’s taxpayer identification number
(see instructions)
Firm’s name (or yours
if self-employed),
address, and ZIP + 4Big Right Arrow




 		EIN right pointing bullet image
Phone no. right pointing bullet image
May the IRS discuss this return with the preparer shown above? (see instructions) .........
For Privacy Act and Paperwork Reduction Act Notice, see the separate instructions.
Cat. No. 11282Y
Form 990 (2010)
Form 990 (2010)
Page 2
Part III
Statement of Program Service Accomplishments
Check if Schedule O contains a response to any question in this Part III . . . . . . . . . .
1
Briefly describe the organization’s mission: THE MISSION OF PREFERREDONE COMMUNITY HEALTH PLAN IS TO MAKE AVAILABLE TO THE RESIDENTS OF THE STATE OF MINNESOTA COMPREHENSIVE HEALTH MAINTENANCE SERVICES THAT ARE ACCESSIBLE, ACCEPTABLE, AND DELIVERED IN A MANNER CONGRUENT WITH THE ECONOMIC AND SOCIAL NEEDS OF THE COMMUNITY. THE HEALTH PLAN WILL ADVOCATE FOR IMPROVEMENTS IN THE DELIVERY, QUALITY AND COVERAGE OF HEALTH CARE SERVICES AND PURSUE HEALTH CARE PROGRAMS TO MEET COMMUNITY NEEDS.IN 2010, PREFERREDONE COMMUNITY HEALTH PLAN RETAINED ITS ACCREDITATION STATUS OF EXCELLENT FROM THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA), A PRIVATE, NONPROFIT ORGANIZATION THAT EVALUATES AND REPORTS ON HEALTH CARE QUALITY. NCQA ACCREDITATION RECOGNIZES THE COMMITMENT OF OUR ORGANIZATION TO PROVIDE QUALITY HEALTH CARE TO OUR MEMBERS AND DEMONSTRATES THAT WE HAVE INCORPORATED QUALITY IMPROVEMENTS INTO THE FABRIC OF OUR BUSINESS. OUR ACCREDITATION STATUS "THE HIGHEST LEVEL ACHIEVABLE" WAS AWARDED AFTER RIGOROUS EVALUATION BY NCQA OF ALL
2
Did the organization undertake any significant program services during the year which were not listed on
the prior Form 990 or 990-EZ? ....................
If “Yes,” describe these new services on Schedule O.
3
Did the organization cease conducting, or make significant changes in how it conducts, any program services? ..........................
If “Yes,” describe these changes on Schedule O.
4
Describe the exempt purpose achievements for each of the organization’s three largest program services by expenses.
Section 501(c)(3) and 501(c)(4) organizations and section 4947(a)(1) trusts are required to report the amount of grants and allocations to others, the total expenses, and revenue, if any, for each program service reported.
4a (Code:   ) (Expenses $ 120,757,477 including grants of $   ) (Revenue $ 136,136,686 )
PREFERREDONE COMMUNITY HEALTH PLAN SHALL PROVIDE, EITHER DIRECTLY OR THROUGH ARRANGEMENTS WITH HEALTH CARE PROVIDERS, COMPREHENSIVE HEALTH SERVICES, OR ARRANGE FOR THE PROVISION OF SUCH SERVICES, FOR THE PEOPLE IN ITS SERVICE AREA ON THE BASIS OF A FIXED PREPAID SUM WITHOUT REGARD TO THE FREQUENCY OR EXTENT OF SERVICES FURNISHED.
4b (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
PARTICIPATION IN COLLABORATIVE AND COMMUNITY PROJECTSPREFERREDONE TAKES PRIDE IN BEING DIRECTLY INVOLVED IN COMMUNITY ACTIVITIES THAT IMPACT OUR MEMBERS IN THE COMMUNITIES THEY LIVE AND WORK. IN AN EFFORT TO CREATE CONSISTENCY AMONG PROVIDER NETWORKS IN OUR COMMUNITY AND IMPROVE THE DELIVERY OF HEALTH CARE TO OUR MEMBERS PREFERREDONE PARTICIPATES IN SEVERAL COLLABORATIVE ACTIVITIES:MINNESOTA COMMUNITY MEASUREMENT (MCM) IS A COLLABORATION AMONG HEALTH PLANS AND PROVIDER GROUPS DESIGNED TO IMPROVE THE QUALITY OF MEDICAL CARE IN MINNESOTA. MCM IMPROVES CARE BY:- REPORTING THE RESULTS OF HEALTH CARE QUALITY IMPROVEMENT EFFORTS IN A FAIR AND RELIABLE WAY TO MEDICAL GROUPS, REGULATORS, PURCHASERS AND CONSUMERS.- PROVIDING RESOURCES TO PROVIDERS AND CONSUMERS TO IMPROVE CARE.- INCREASING THE EFFICIENCIES OF HEALTH CARE REPORTING IN ORDER TO USE OUR HEALTH CARE DOLLARS WISELY.PREFERREDONE IS ONE OF SEVEN HEALTH PLAN FOUNDING MEMBERS OF MINNESOTA COMMUNITY MEASUREMENT. THE STATE MEDICAL ASSOCIATION, PARTICIPATING MEDICAL GROUPS, CONSUMERS, BUSINESSES AND HEALTH PLANS ARE ALL REPRESENTED ON THE ORGANIZATION'S BOARD OF DIRECTORS. DATA IS SUPPLIED BY PARTICIPATING HEALTH PLANS ON AN ANNUAL BASIS FOR USE IN DEVELOPING THEIR ANNUAL HEALTH CARE QUALITY REPORT.MINNESOTA COUNCIL OF HEALTH PLANS (MCHP) IS A NON-PROFIT TRADE ASSOCIATION REPRESENTING MINNESOTA HEALTH PLAN ORGANIZATIONS. THE COUNCIL PROMOTES THE DELIVERY OF HIGH-QUALITY, AFFORDABLE HEALTH CARE. HEALTH PLANS MEMBERS ARE ACTIVE IN THE AREAS OF HEALTH CARE REFORM, RESEARCH-BASED GUIDELINE DEVELOPMENT, COMMUNITY HEALTH AND PREVENTION, MEDICAL TECHNOLOGY ASSESSMENT AND HEALTH CARE QUALITY DATA COLLECTION.PREFERREDONE STAFF MEMBERS SERVE ON VARIOUS COMMITTEES THROUGH THE MCHP INCLUDING COMMUNITY HEALTH, HEALTH POLICY AND MEDICAL ISSUES.THE MINNESOTA ALLIANCE FOR PATIENT SAFETY (MAPS) IS A PARTNERSHIP AMONG THE MINNESOTA HOSPITAL ASSOCIATION, THE MINNESOTA MEDICAL ASSOCIATION, THE MINNESOTA DEPARTMENT OF HEALTH AND MORE THAN 50 OTHER PUBLIC-PRIVATE HEALTH CARE ORGANIZATIONS WORKING TOGETHER TO IMPROVE PATIENT SAFETY. MAPS MISSION IS TO PROMOTE OPTIMUM PATIENT SAFETY THROUGH COLLABORATIVE AND SUPPORTIVE EFFORTS AMONG ALL PARTICIPANTS OF THE HEALTH CARE SYSTEM IN MINNESOTA. THE GOAL OF MAPS IS TO IMPROVE THE CULTURE FOR PATIENT SAFETY AND MOBILIZE COMMUNITY RESOURCES FOR PATIENT SAFETY. PREFERREDONE IS AN ACTIVE PARTNER IN MAPS EFFORTS. THE DIAMOND INITIATIVE IS A COLLABORATION WITH LOCAL HEALTH PLANS AND THE DEPARTMENT OF HUMAN SERVICES IN MINNESOTA TO DEVELOP AN EVIDENCED-BASED BEST PRACTICE MODEL FOR STRUCTURED COLLABORATIVE FOLLOW-UP CARE MANAGEMENT OF ADULTS WITH DEPRESSION IN PRIMARY CARE; WITH THE LONG-TERM GOAL BEING TO CREATE A CARE MANAGEMENT PROGRAM THAT IS SUSTAINABLE AND APPLICABLE TO OTHER CHRONIC DISEASES. PREFERREDONE IS ALSO PARTICIPATING IN THE PARALLEL RESEARCH STUDY DESIGNED TO INVESTIGATE THE OUTCOMES OF THE DIAMOND INITIATIVE.ECHO (EMERGENCY AND COMMUNITY HEALTH OUTREACH) IS A COLLABORATIVE THAT INCLUDES PUBLIC HEALTH AND SAFETY AGENCIES ACROSS MINNESOTA, ETHNIC ADVISORY ORGANIZATIONS AND NON-PROFIT GROUPS. IT IS SPEARHEADED BY SAINT PAUL-RAMSEY COUNTY PUBLIC HEALTH, HENNEPIN COUNTY PUBLIC HEALTH PROTECTION, THE MINNESOTA DEPARTMENT OF HEALTH AND OTHER AGENCIES CHARGED WITH PUBLIC HEALTH EMERGENCY PREPAREDNESS. ECHO PROVIDES HEALTH AND SAFETY INFORMATION IN MULTIPLE LANGUAGES BY FAX, PHONE, ON TELEVISION AND ON THE WEB DURING EMERGENCY AND NON-EMERGENCY TIMES TO PEOPLE WITH LIMITED ENGLISH LANGUAGE SKILLS. ECHO WAS CREATED TO ADDRESS THE CONCERN THAT NEW SYSTEMS WERE NEEDED TO HELP ALL MINNESOTANS STAY AND HEALTHY AS HUNDREDS OF THOUSANDS OF IMMIGRANTS AND REFUGEES FROM VASTLY DIFFERENT CULTURES AND CLIMATES MAKE THIS STATE HOME. NEW RESIDENTS NEED INFORMATION ON SPECIFIC HEALTH AND SAFETY ISSUES THAT OCCUR HERE, AND METHODS WERE NEEDED TO REACH LIMITED-ENGLISH SPEAKERS IN A STATEWIDE EMERGENCY SUCH AS THE OUTBREAK OF A HIGHLY CONTAGIOUS DISEASE LIKE SARS, OR A MAN-MADE ATTACK SUCH AS A BOMB EXPLOSION. ECHO BENEFITS ALL MINNESOTANS BECAUSE WHEN A SERIOUS DISEASE OUTBREAK HAPPENS, NO ONE CAN BE FULLY PROTECTED UNLESS EVERYONE IS FIRST FULLY INFORMED. IN AN EMERGENCY, THE GOAL OF ECHO IS TO MAKE SURE THAT NO MINNESOTANS ARE LEFT OUT BECAUSE OF BARRIERS OF LANGUAGE OR CULTURE. PREFERREDONE IS A COLLABORATIVE MEMBER OF THE ECHO INITIATIVE.BRIDGES TO EXCELLENCE IS A COLLABORATION OF HEALTH PLANS, PROVIDERS AND EMPLOYERS COMMITTED TO IDENTIFYING AND REWARDING HIGH QUALITY HEALTHCARE PROVIDERS, AS WELL AS CREATING COMMUNITY FOCUS ON NEW AREAS FOR HEATH CARE QUALITY IMPROVEMENT. PREFERREDONE IS A DIRECT FINANCIAL SUPPORTER OF THESE COMMUNITY DIALOGUES. SEVERAL PREFERREDONE STAFF, INCLUDING THE CMO, ARE ACTIVELY INVOLVED IN THIS COMMUNITY COLLABORATION.
4c (Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
ORGANIZATIONAL SUPPORT FOR EMPLOYEE VOLUNTEER EVENTSPREFERREDONE SUPPORTS COMMUNITY INVOLVEMENT THROUGHOUT THE ORGANIZATION. EVENTS ARE EMPLOYEE-DRIVEN, WITH THE ORGANIZATION ENABLING OR PROVIDING EMPLOYEE TIME AND/OR FINANCIAL SUPPORT TO ENCOURAGE VOLUNTEERISM. EXAMPLES INCLUDE:- ADOPT-A-FAMILY (PREFERREDONE EMPLOYEES SPONSOR FAMILIES DURING THE HOLIDAY SEASON)- UNITED WAY- ON-SITE BLOOD DRIVES- COLLECTION OF SCHOOL SUPPLIES TO BENEFIT STEP (ST. LOUIS PARK EMERGENCY PROGRAM)- TOYS FOR TOTS
(Code:   ) (Expenses $   including grants of $   ) (Revenue $   )
OTHER CONDITION-SPECIFIC EDUCATION AND SUPPORT PROGRAMSACCORDANTPREFERREDONE HAS AN AGREEMENT IN PLACE WITH ACCORDANT HEALTH SERVICES TO OFFER DISEASE MANAGEMENT SERVICES DESIGNED TO IMPROVE MEMBER OUTCOMES. ACCORDANTCARE FOCUSES ON PROVIDING DISEASE AND CASE MANAGEMENT SERVICES TO MEMBERS WHO SUFFER FROM CHRONIC, PROGRESSIVE CONDITIONS INCLUDING:- RHEUMATOID ARTHRITIS- HEMOPHILIA- MULTIPLE SCLEROSIS- SCLERODERMA- PARKINSON'S DISEASE- POLYMYOSITIS- LUPUS- CIPD- MYASTHENIA GRAVIS- ALS- SICKLE CELL DISEASE- DERMATOMYOSITIS- CYSTIC FIBROSIS- GAUCHER DISEASE- CROHN'S DISEASE ACCORDANT HAS A UNIQUE PATIENT CARE MODEL THAT MINIMIZES THE OCCURRENCE OF COSTLY MEDICAL EVENTS AND CAN ACHIEVE REDUCTIONS IN HOSPITAL, HOME HEALTH, SPECIALTY PHARMACY AND PHYSICIAN VISIT COSTS.CHRONIC ILLNESS MANAGEMENTIN 2010, PREFERREDONE COMMUNITY HEALTH PLAN IMPLEMENTED A CHRONIC ILLNESS MANAGEMENT PROGRAM AVAILABLE TO MEMBERS WHO LIVE WITH ANY OF THE FOLLOWING CHRONIC CONDITIONS. - DIABETES - CORONARY HEART DISEASE - HEART FAILURE- CHRONIC OBSTRUCTIVE PULMONARY DISEASE- ASTHMATHE GOALS OF THE CHRONIC ILLNESS MANAGEMENT PROGRAM ARE TO:- PROMOTE SELF-MANAGEMENT OF CHRONIC CONDITIONS.- IMPROVE ADHERENCE TO TREATMENT PLANS WITH AN EMPHASIS ON MEDICATION THERAPY.- REDUCE OR DELAY DISEASE PROGRESSION AND COMPLICATIONS.- REDUCE HOSPITALIZATIONS AND EMERGENCY ROOM VISITS.- IMPROVE QUALITY OF LIFE.ACCOMPLISHING THESE GOALS WILL ULTIMATELY LEAD TO SIGNIFICANT COST SAVINGS FOR THE MEMBER AND THE HEALTH PLAN.PREFERREDONE IDENTIFIES ELIGIBLE MEMBERS AND CONTACTS THEM WITH AN INVITATION TO PARTICIPATE IN THE PROGRAM. ENROLLED MEMBERS RECEIVE TELEPHONIC, PRINT AND ELECTRONIC INFORMATION SPECIFIC TO THEIR CONDITION FROM A NURSE. MEMBERS ALSO HAVE ACCESS TO THEIR NURSE TO ANSWER QUESTIONS AND CONCERNS THAT MAY DEVELOP IN BETWEEN SCHEDULED CALLS.TREATMENT DECISION SUPPORTTHE PREFERREDONE TREATMENT DECISION SUPPORT PROGRAM TARGETS TWO SPECIFIC CONDITIONS THAT HAVE BEEN IDENTIFIED BASED ON THEIR PREVALENCE AND COST PER EPISODE. THOSE ARE LOW BACK PAIN AND HIGH RISK PREGNANCIES. THE PROGRAM ENCOURAGES MEMBERS IN ACTIVELY ENGAGING IN TREATMENT DECISIONS OF THEIR CONDITIONS BY PROVIDING THEM INFORMATION ABOUT THEIR MEDICAL CONDITIONS, POSSIBLE TREATMENT OPTIONS THAT A MEMBER COULD DISCUSS WITH THEIR HEALTH CARE PROVIDER(S) AND THE CLINICAL AND COST RAMIFICATIONS OF THEIR TREATMENT CHOICES. MEMBERS ARE IDENTIFIED FOR THE TREATMENT DECISION SUPPORT PROGRAM BY BOTH MEMBER AND CLAIM INITIATED METHODS. SPECIALIZED NURSES THEN FOCUS ON GETTING THEM TO ENGAGE IN THEIR CARE AND MAKING FULLY-INFORMED DECISIONS BASED ON THEIR PERSONAL VALUES AND NEEDS. THEY USE COMPREHENSIVE ASSESSMENT TOOLS TO EVALUATE BEHAVIORAL HEALTH, SOCIO-ECONOMIC, PSYCHOLOGICAL AND PHYSIOLOGIC ATTRIBUTES. NURSES MATCH THE CONSUMER'S PREFERENCE AND NEED TO AN APPROPRIATE TREATMENT OPTION AND THEN GUIDE THEM TO EITHER PREFERREDONE IN-NETWORK PROVIDERS OR PROGRAMS RECOGNIZED IN THEIR FIELD BASED ON OUTCOMES AND QUALITY MEASURES.FREE & CLEAR SMOKING CESSATION PROGRAMPREFERREDONE CONTRACTS THROUGH THE CENTER FOR HEALTH CARE PROMOTION INC. FOR THE QUIT-SMOKING PROGRAM FREE & CLEAR. THIS PROGRAM USES INBOUND AND OUTBOUND TELEPHONE SUPPORT TO SYSTEMATICALLY MOVE PARTICIPANTS TOWARD A SUCCESSFUL QUIT. THE CORE COMPONENTS OF THE FREE & CLEAR QUIT-SMOKING PROGRAM INCLUDE:- INDIVIDUALIZED TELEPHONIC COUNSELING WITH A TOBACCO CESSATION SPECIALIST- PRINTED SELF-PACED MATERIALS (THE FREE & CLEAR QUIT KIT)- EVALUATION AND DOSING RECOMMENDATIONS FOR NICOTINE REPLACEMENT THERAPY OR ZYBAN- OPTIONAL DIRECT MAIL-ORDER DELIVERY OF NICOTINE REPLACEMENT THERAPY- UNLIMITED USE OF A TOLL-FREE INBOUND SUPPORT LINEFREE & CLEAR IS A SYSTEMATIC SCIENTIFIC EVIDENCE BASED BEHAVIOR CHANGE PROGRAM THAT HELPS TOBACCO USERS QUIT. CLINICAL TRIAL RESULTS INDICATE THAT TELEPHONE COUNSELING, ALONG WITH SELF-HELP MATERIALS, INCREASES QUIT RATES. NATIONALLY TWELVE-MONTH QUIT RATES FOR THE PROGRAM CONSISTENTLY RANGE FROM 43%.HEALTH RISK ASSESSMENT (HRA)PREFERREDONE OFFERS A HRA THROUGH WELLSOURCE HEALTH ACCESSMENT TO ALL PCHP MEMBERS AND THEIR DEPENDANTS. THE HRA IS ACCESSED ONLINE THROUGH THE PREFERREDONE MEMBER WEB SITE (WWW.PREFERREDONE.COM). THERE IS NO COST TO THE EMPLOYEE AND THEIR EMPLOYER FOR COMPLETING THE HRA UNLESS THE REPORTING AND HEALTH COACHING PACKAGE IS PURCHASED BY THE EMPLOYER GROUP. PREFERREDONE ENCOURAGES MEMBERS TO PRINT THEIR INDIVIDUAL RESULTS AND SHARE THEM WITH THEIR PHYSICIAN IF THEY DESIRE ADVICE OR DIRECTION TO IMPROVE THEIR LIFESTYLE. PATIENT SAFETYPREFERREDONE DEMONSTRATES A COMMITMENT TO PATIENT SAFETY BY INCORPORATING SAFETY INTO EXISTING QUALITY MANAGEMENT ACTIVITIES AND TAKING PATIENT SAFETY INTO CONSIDERATION WHEN EXAMINING TRENDS AND DATA FOR POSSIBLE QUALITY IMPROVEMENT ACTIVITIES. PREFERREDONE ALWAYS IMPLEMENTS PROCESSES WITH OVERALL PATIENT CARE OUTCOMES AND SAFETY AS COMPONENTS OF QUALITY IMPROVEMENT ACTIVITIES. ELEMENTS OF PATIENT SAFETY ARE FOUND IN OUR EXISTING QUALITY IMPROVEMENT PROCESSES THAT INCLUDE, BUT ARE NOT LIMITED TO:- DISTRIBUTING PRACTICE GUIDELINES TO PRACTITIONERS- IDENTIFYING AND IMPLEMENTING PROCESSES FOR TRANSITION OF CARE FOR CONTINUITY AND SAFETY - IMPLEMENTING DISEASE MANAGEMENT PROGRAMS THAT INCLUDE FOLLOW-UP SYSTEMS TO ASSURE THAT CARE IS RECEIVED IN A TIMELY MANNER- IMPLEMENTING PHARMACEUTICAL MANAGEMENT PRACTICES AND POLICIES THAT INCLUDE SAFEGUARDS TO ENHANCE PATIENT SAFETY WHICH INCLUDES AN EMERGING THERAPEUTIC ISSUES PROGRAM IN WHICH MEMBERS AND/OR PHYSICIANS ARE NOTIFIED OF SIGNIFICANT SAFETY ISSUES WITH PRODUCTS COVERED UNDER THE PHARMACY BENEFIT (INCLUDING PRESCRIPTION DRUGS AND CERTAIN MEDICAL DEVICES)- INCORPORATING ADVERSE EVENT REPORTING INTO THE CREDENTIALING PROCESS- TRACKING AND TRENDING ADVERSE EVENT REPORTING TO IDENTIFY SYSTEMS AND/OR NETWORK ISSUES THAT CONTRIBUTE TO POOR SAFETY - ANALYZING AND TAKING ACTION ON MEMBER AND PRACTITIONER COMPLAINTS AND SATISFACTION DATA THAT RELATE TO SAFETY- COLLECTING AND PROVIDING INFORMATION ON PROVIDER AND PRACTITIONER SAFETY AND QUALITY THAT INCLUDES ACTIVITIES ON PROVIDERS ACTIONS TO IMPROVE PATIENT SAFETY AND TO MAKE PERFORMANCE DATA PUBLICLY AVAILABLE FOR MEMBERS AND PRACTITIONERSCONTINUITY AND COORDINATION OF CARETHE MISSION OF THE QUALITY MANAGEMENT (QM) PROGRAM IS TO IDENTIFY AND ACT ON OPPORTUNITIES THAT IMPROVE THE QUALITY, SAFETY AND VALUE OF CARE PROVIDED TO PREFERREDONE MEMBERS BOTH INDEPENDENTLY AND/OR COLLABORATIVELY WITH CONTRACTED PRACTITIONERS AND COMMUNITY EFFORTS, AND ALSO IMPROVE SERVICE PROVIDED TO PREFERREDONE MEMBERS AND OTHER CUSTOMERS. IN 2010 THE MEDICAL MANAGEMENT, QUALITY MANAGEMENT AND MEDICAL INFORMATICS DEPARTMENTS INVESTIGATED SEVERAL AREAS IN WHICH WE BELIEVED THERE WERE OPPORTUNITIES TO IMPROVE CONTINUITY AND COORDINATION OF MEDICAL CARE AND BEHAVIORAL HEALTH CARE BY COLLECTING RELEVANT DATA, ANALYZING THE FINDINGS AND DEVELOPING QUALITY IMPROVEMENT ACTIVITIES TO ADDRESS THOSE AREAS IN WHICH WE DETERMINED THERE WAS THE GREATEST OPPORTUNITY FOR IMPROVEMENT. SOME OF THE AREAS RELATED TO CONTINUITY AND COORDINATION OF CARE THAT WERE INVESTIGATED INCLUDED EXCHANGE OF INFORMATION BETWEEN MEDICAL AND BEHAVIORAL HEALTH CARE PRACTITIONERS, MULTIPLE PRACTITIONERS TREATING MEMBERS FOR SIMILAR CONDITIONS, APPROPRIATE USE OF PSYCHOPHARMACOLOGICAL MEDICATION, AND APPROPRIATE DIAGNOSIS, TREATMENT AND REFERRAL OF BEHAVIORAL HEALTH DISORDERS COMMONLY SEEN IN PRIMARY CARE.
4d Other program services. (Describe in Schedule O.)
(Expenses $   including grants of $   ) (Revenue $   )
4e Total program service expensesMediumBullet$ 120,757,477
Form 990 (2010)
Form 990 (2010)
Page 3
Part IV
Checklist of Required Schedules
Yes
No
1
Is the organization described in section 501(c)(3) or 4947(a)(1) (other than a private foundation)? If “Yes,” complete Schedule A.....................
1
 
No
2
Is the organization required to complete Schedule B, Schedule of Contributors? ........
2
 
No
3
Did the organization engage in direct or indirect political campaign activities on behalf of or in opposition to candidates for public office? If “Yes,” complete Schedule C, Part I..........
3
 
No
4
Section 501(c)(3) organizations. Did the organization engage in lobbying activities? If “Yes,” complete Schedule C,
Part II.........................
4
 
 
5
Is the organization a section 501(c)(4), 501(c)(5), or 501(c)(6) organization that receives membership dues, assessments, or similar amounts as defined in Revenue Procedure 98-19? If “Yes,” complete Schedule C, Part III........................
5
 
No
6
Did the organization maintain any donor advised funds or any similar funds or accounts where donors have the right to provide advice on the distribution or investment of amounts in such funds or accounts? If “Yes,” complete
Schedule D, Part IClick to see attachment.......................
6
 
No
7
Did the organization receive or hold a conservation easement, including easements to preserve open space,
the environment, historic land areas or historic structures? If “Yes,” complete Schedule D, Part IIClick to see attachment...
7
 
No
8
Did the organization maintain collections of works of art, historical treasures, or other similar assets? If “Yes,” complete Schedule D, Part III Click to see attachment....................
8
 
No
9
Did the organization report an amount in Part X, line 21; serve as a custodian for amounts not listed in Part X; or provide credit counseling, debt management, credit repair, or debt negotiation services? If “Yes,”
complete Schedule D, Part IVClick to see attachment...................
9
 
No
10
Did the organization, directly or through a related organization, hold assets in term, permanent,or quasi-endowments? If “Yes,” complete Schedule D, Part VClick to see attachment
10
 
No
11
If the organization’s answer to any of the following questions is ‘Yes,’ then complete Schedule D, Parts VI, VII, VIII, IX, or X as applicable:
a
Did the organization report an amount for land, buildings, and equipment in Part X, line10? If “Yes,” complete Schedule D, Part VI.Click to see attachment
11a
 
No
b
Did the organization report an amount for investments—other securities in Part X, line 12 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VII.Click to see attachment
11b
Yes
 
c
Did the organization report an amount for investments—program related in Part X, line 13 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part VIII.Click to see attachment
11c
 
No
d
Did the organization report an amount for other assets in Part X, line 15 that is 5% or more of its total assets reported in Part X, line 16? If “Yes,” complete Schedule D, Part IX.Click to see attachment
11d
 
No
e
Did the organization report an amount for other liabilities in Part X, line 25? If “Yes,” complete Schedule D, Part X.Click to see attachment
11e
Yes
 
f
Did the organization’s separate or consolidated financial statements for the tax year include a footnote that addresses the organization’s liability for uncertain tax positions under FIN 48 (ASC 740)? If “Yes,” complete Schedule D, Part X.Click to see attachment
11f
Yes
 
12a
Did the organization obtain separate, independent audited financial statements for the tax year? If “Yes,” complete Schedule D, Parts XI, XII, and XIII Click to see attachment
12a
Yes
 
b
Was the organization included in consolidated, independent audited financial statements for the tax year? If “Yes,” and if the organization answered ‘No’ to line 12a, then completing Schedule D, Parts XI, XII, and XIII is optional Click to see attachment
12b
 
No
13
Is the organization a school described in section 170(b)(1)(A)(ii)? If “Yes,” complete Schedule E
13
 
No
14a
Did the organization maintain an office, employees, or agents outside of the United States?....
14a
 
No
b
Did the organization have aggregate revenues or expenses of more than $10,000 from grantmaking, fundraising, business, and program service activities outside the United States? If “Yes,” complete Schedule F, Part I.........
14b
 
No
15
Did the organization report on Part IX, column (A), line 3, more than $5,000 of grants or assistance to any organization or entity located outside the U.S.? If “Yes,” complete Schedule F, Part II..
15
 
No
16
Did the organization report on Part IX, column (A), line 3, more than $5,000 of aggregate grants or assistance to individuals located outside the U.S.? If “Yes,” complete Schedule F, Part III..
16
 
No
17
Did the organization report a total of more than $15,000, of expenses for professional fundraising services on Part IX, column (A), lines 6 and 11e? If “Yes,” complete Schedule G, Part I
17
 
No
18
Did the organization report more than $15,000 total of fundraising event gross income and contributions on Part VIII, lines 1c and 8a? If “Yes,” complete Schedule G, Part II..........
18
 
No
19
Did the organization report more than $15,000 of gross income from gaming activities on Part VIII, line 9a? If “Yes,” complete Schedule G, Part III...................
19
 
No
Form 990 (2010)
Form 990 (2010)
Page 4
Part IV
Checklist of Required Schedules (continued)
20a
Did the organization operate one or more hospitals? If “Yes,” complete Schedule H.....
20a
 
No
b
Did the organization attach its audited financial statement to this return? Note: All Form 990 filers that operate one or more hospitals must attach audited financial statements. .....
20b
 
 
21
Did the organization report more than $5,000 of grants and other assistance to governments and organizations in the United States on Part IX, column (A), line 1? If “Yes,” complete Schedule I, Parts I and II..
21
 
No
22
Did the organization report more than $5,000 of grants and other assistance to individuals in the United States on Part IX, column (A), line 2? If “Yes,” complete Schedule I, Parts I and III.....
22
 
No
23
Did the organization answer “Yes” to Part VII, Section A, questions 3, 4, or 5, about compensation of the organization’s current and former officers, directors, trustees, key employees, and highest compensated employees? If “Yes,” complete Schedule J................
23
 
No
24a
Did the organization have a tax-exempt bond issue with an outstanding principal amount of more than $100,000 as of the last day of the year, that was issued after December 31, 2002? If “Yes,” answer questions 24b–24d and complete Schedule K. If “No,” go to line 25................
24a
 
No
b
Did the organization invest any proceeds of tax-exempt bonds beyond a temporary period exception?...
24b
 
 
c
Did the organization maintain an escrow account other than a refunding escrow at any time during the year
to defease any tax-exempt bonds?......................
24c
 
 
d
Did the organization act as an “on behalf of” issuer for bonds outstanding at any time during the year?...
24d
 
 
25a
Section 501(c)(3) and 501(c)(4) organizations. Did the organization engage in an excess benefit transaction with a disqualified person during the year? If “Yes,” complete Schedule L, Part I......
25a
 
No
b
Is the organization aware that it engaged in an excess benefit transaction with a disqualified person in a prior year, and that the transaction has not been reported on any of the organization’s prior Forms 990 or 990-EZ? If “Yes,” complete Schedule L, Part I................
25b
 
No
26
Was a loan to or by a current or former officer, director, trustee, key employee, highly compensated employee, or disqualified person outstanding as of the end of the organization’s tax year? If “Yes,” complete Schedule L,
Part II...........................
26
 
No
27
Did the organization provide a grant or other assistance to an officer, director, trustee, key employee, substantial contributor, or a grant selection committee member, or to a person related to such an individual? If “Yes,” complete Schedule L, Part III...............
27
 
No
28
Was the organization a party to a business transaction with one of the following parties? (see Schedule L, Part IV instructions for applicable filing thresholds, conditions, and exceptions):
a
A current or former officer, director, trustee, or key employee? If “Yes,” complete Schedule L, Part IV .........................
28a
 
No
b
A family member of a current or former officer, director, trustee, or key employee? If “Yes,”
complete Schedule L, Part IV...................
28b
 
No
c
An entity of which a current or former officer, director, trustee, or key employee (or a family member thereof) was an officer, director, trustee, or owner? If “Yes,” complete Schedule L, Part IV..
28c
 
No
29
Did the organization receive more than $25,000 in non-cash contributions? If “Yes,” complete Schedule M
29
 
No
30
Did the organization receive contributions of art, historical treasures, or other similar assets, or qualified conservation contributions? If “Yes,” complete Schedule M............
30
 
No
31
Did the organization liquidate, terminate, or dissolve and cease operations? If “Yes,” complete Schedule N,
Part I...........................
31
 
No
32
Did the organization sell, exchange, dispose of, or transfer more than 25% of its net assets? If “Yes,” complete Schedule N, Part II.......................
32
 
No
33
Did the organization own 100% of an entity disregarded as separate from the organization under Regulations sections 301.7701-2 and 301.7701-3? If “Yes,” complete Schedule R, Part I........
33
 
No
34
Was the organization related to any tax-exempt or taxable entity? If “Yes,” complete Schedule R, Parts II, III, IV, and V, line 1.....................
34
 
No
35
Is any related organization a controlled entity within the meaning of section 512(b)(13)? .....
35
 
No
a
Did the organization receive any payment from or engage in any transaction with a controlled entity within the meaning of section 512(b)(13)? If “Yes,” complete Schedule R, Part V, line 2...
36
Section 501(c)(3) organizations. Did the organization make any transfers to an exempt non-charitable related organization? If “Yes,” complete Schedule R, Part V, line 2...........
36
 
 
37
Did the organization conduct more than 5% of its activities through an entity that is not a related organization and that is treated as a partnership for federal income tax purposes? If “Yes,” complete Schedule R, Part VI
37
 
No
38
Did the organization complete Schedule O and provide explanations in Schedule O for Part VI, lines 11 and 19? Note. All Form 990 filers are required to complete Schedule O. ............
38
Yes
 
Form 990 (2010)
Form 990 (2010)
Page 5
Part V
Statements Regarding Other IRS Filings and Tax Compliance
Check if Schedule O contains a response to any question in this Part V . . . . . . . . . .
Yes
No
1a
Enter the number reported in Box 3 of Form 1096. Enter -0- if not applicable. .......
1a
0
b
Enter the number of Forms W-2G included in line 1a. Enter -0- if not applicable.
1b
0
c
Did the organization comply with backup withholding rules for reportable payments to vendors and reportable gaming (gambling) winnings to prize winners? ..................
1c
 
 
2a
Enter the number of employees reported on Form W-3, Transmittal of Wage and Tax Statements filed for the calendar year ending with or within the year covered by this return .....................
2a
0
b
If at least one is reported on line 2a, did the organization file all required federal employment tax returns?

Note. If the sum of lines 1a and 2a is greater than 250, you may be required to e-file. (see instructions)
2b
 
 
3a
Did the organization have unrelated business gross income of $1,000 or more during the year?.............................
3a
Yes
 
b
If “Yes,” has it filed a Form 990-T for this year? If “No,” provide an explanation in Schedule O.....
3b
Yes
 
4a
At any time during the calendar year, did the organization have an interest in, or a signature or other authority over, a financial account in a foreign country (such as a bank account or securities account)?.......................
4a
 
No
b
If "Yes," enter the name of the foreign country: MediumBullet
See instructions for filing requirements for Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts.
5a
Was the organization a party to a prohibited tax shelter transaction at any time during the tax year?..
5a
 
No
b
Did any taxable party notify the organization that it was or is a party to a prohibited tax shelter transaction?
5b
 
No
c
If “Yes” to line 5a or 5b, did the organization file Form 8886-T? ........
5c
 
 
6a
Does the organization have annual gross receipts that are normally greater than $100,000, and did the organization solicit any contributions that were not tax deductible?..........
6a
 
No
b
If “Yes,” did the organization include with every solicitation an express statement that such contributions or gifts were not tax deductible?........................
6b
 
 
7
Organizations that may receive deductible contributions under section 170(c).
a
Did the organization receive a payment in excess of $75 made partly as a contribution and partly for goods and services provided to the payor?....................
7a
 
 
b
If “Yes,” did the organization notify the donor of the value of the goods or services provided?.....
7b
 
 
c
Did the organization sell, exchange, or otherwise dispose of tangible personal property for which it was required to file Form 8282?...........................
7c
 
 
d
If “Yes,” indicate the number of Forms 8282 filed during the year ....
7d
 
e
Did the organization receive any funds, directly or indirectly, to pay premiums on a personal benefit contract?..........................
7e
 
 
f
Did the organization, during the year, pay premiums, directly or indirectly, on a personal benefit contract?..
7f
 
 
g
If the organization received a contribution of qualified intellectual property, did the organization file Form 8899 as required?...................
7g
 
 
h
If the organization received a contribution of cars, boats, airplanes, or other vehicles, did the organization file a Form 1098-C?...............
7h
 
 
8
Sponsoring organizations maintaining donor advised funds and section 509(a)(3) supporting organizations. Did the supporting organization, or a donor advised fund maintained by a sponsoring organization, have excess business holdings at any time during the year?................
8
 
 
9
Sponsoring organizations maintaining donor advised funds.
a
Did the organization make any taxable distributions under section 4966?.........
9a
 
 
b
Did the organization make a distribution to a donor, donor advisor, or related person?......
9b
 
 
10
Section 501(c)(7) organizations. Enter:
a
Initiation fees and capital contributions included on Part VIII, line 12 ...
10a
 
b
Gross receipts, included on Form 990, Part VIII, line 12, for public use of club facilities
10b
 
11
Section 501(c)(12) organizations. Enter:
a
Gross income from members or shareholders .........
11a
 
b
Gross income from other sources (Do not net amounts due or paid to other sources against amounts due or received from them.) ........
11b
 
12a
Section 4947(a)(1) non-exempt charitable trusts. Is the organization filing Form 990 in lieu of Form 1041?
12a
 
 
b
If “Yes,” enter the amount of tax-exempt interest received or accrued during the year.
12b
 
13
Section 501(c)(29) qualified nonprofit health insurance issuers.
a
Is the organization licensed to issue qualified health plans in more than one state?
Note. All 501(c)(29) organizations must list in Schedule O each state in which they are licensed to issue qualified health plans, the amount of reserves required by each state, and the amount of reserves the organization allocated to each state.
13a
 
 
b
Enter the aggregate amount of reserves the organization is required to maintain by the states in which the organization is licensed to issue qualified health plans.
13b
 
c
Enter the aggregate amount of reserves on hand.
13c
 
14a
Did the organization receive any payments for indoor tanning services during the tax year?.....
14a
 
 
b
If "Yes," has it filed a Form 720 to report these payments? If “No,” provide an explanation in Schedule O..
14b
 
 
Form 990 (2010)
Form 990 (2010)
Page 6
Part VI
Governance, Management, and Disclosure For each “Yes” response to lines 2 through 7b below, and for a “No” response to lines 8a, 8b, or 10b below, describe the circumstances, processes, or changes in Schedule O. See instructions.
Check if Schedule O contains a response to any question in this Part VI . . . . . . . . . .
Section A. Governing Body and Management
Yes
No
1a
Enter the number of voting members of the governing body at the end of the tax year ..............
1a
9
b
Enter the number of voting members included in line 1a, above, who are independent .................
1b
7
2
Did any officer, director, trustee, or key employee have a family relationship or a business relationship with any other officer, director, trustee, or key employee? .................
2
 
No
3
Did the organization delegate control over management duties customarily performed by or under the direct supervision of officers, directors or trustees, or key employees to a management company or other person? ..
3
 
No
4
Did the organization make any significant changes to its governing documents since the prior Form 990 was filed?
4
 
No
5
Did the organization become aware during the year of a significant diversion of the organization’s assets? .
5
 
No
6
Does the organization have members or stockholders? ................
6
Yes
 
7a
Does the organization have members, stockholders, or other persons who may elect one or more members of the governing body? .........................
7a
Yes
 
b
Are any decisions of the governing body subject to approval by members, stockholders, or other persons? ..
7b
 
No
8
Did the organization contemporaneously document the meetings held or written actions undertaken during the year by the following:
a
The governing body? .........................
8a
Yes
 
b
Each committee with authority to act on behalf of the governing body? ............
8b
Yes
 
9
Is there any officer, director, trustee, or key employee listed in Part VII, Section A, who cannot be reached at the organization’s mailing address? If “Yes,” provide the names and addresses in Schedule O .....
9
 
No
Section B. Policies (This Section B requests information about policies not required by the Internal
Revenue Code.)
Yes
No
10a
Does the organization have local chapters, branches, or affiliates? ............
10a
 
No
b
If “Yes,” does the organization have written policies and procedures governing the activities of such chapters, affiliates, and branches to ensure their operations are consistent with those of the organization? ....
10b
 
 
11a
Has the organization provided a copy of this Form 990 to all members of its governing body before filing the form?
11a
Yes
 
b
Describe in Schedule O the process, if any, used by the organization to review the Form 990. .....
12a
Does the organization have a written conflict of interest policy? If “No,” go to line 13.......
12a
Yes
 
b
Are officers, directors or trustees, and key employees required to disclose annually interests that could give rise to conflicts? ...........................
12b
Yes
 
c
Does the organization regularly and consistently monitor and enforce compliance with the policy? If “Yes,” describe in Schedule O how this is done ....................
12c
Yes
 
13
Does the organization have a written whistleblower policy? ...............
13
Yes
 
14
Does the organization have a written document retention and destruction policy? .........
14
Yes
 
15
Did the process for determining compensation of the following persons include a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision?
a
The organization’s CEO, Executive Director, or top management official ...........
15a
Yes
 
b
Other officers or key employees of the organization ................
15b
Yes
 
If "Yes" to line a or b, describe the process in Schedule O. (See instructions.)
16a
Did the organization invest in, contribute assets to, or participate in a joint venture or similar arrangement with a taxable entity during the year? ......................
16a
 
No
b
If “Yes,” has the organization adopted a written policy or procedure requiring the organization to evaluate its participation in joint venture arrangements under applicable federal tax law, and taken steps to safeguard the organization’s exempt status with respect to such arrangements? ............
16b
 
 
Section C. Disclosure
17
List the States with which a copy of this Form 990 is required to be filedMediumBullet
MN
18
Section 6104 requires an organization to make its Form 1023 (or 1024 if applicable), 990, and 990-T (501(c)(3)s only) available for public inspection. Indicate how you make these available. Check all that apply.
19
Describe in Schedule O whether (and if so, how), the organization makes its governing documents, conflict of interest policy, and financial statements available to the public.
20
State the name, physical address, and telephone number of the person who possesses the books and records of the organization: MediumBullet
MICHAEL S UMLAND
6105 GOLDEN HILLS DRIVE
GOLDEN VALLEY,MN55416
(763) 847-3204
Form 990 (2010)
Form 990 (2010)
Page 7
Part VII
Compensation of Officers, Directors,Trustees, Key Employees, Highest Compensated Employees, and Independent Contractors
Check if Schedule O contains a response to any question in this Part VII . . . . . . . . . .
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees
1a Complete this table for all persons required to be listed. Report compensation for the calendar year ending with or within the organization’s tax year.
RoundBullet List all of the organization’s current officers, directors, trustees (whether individuals or organizations), regardless of amount
of compensation, and current key employees. Enter -0- in columns (D), (E), and (F) if no compensation was paid.

RoundBullet List all of the organization’s current key employees, if any. See instructions for definition of "key employee."
RoundBullet List the organization’s five current highest compensated employees (other than an officer, director, trustee or key employee)
who received reportable compensation (Box 5 of Form W-2 and/or Box 7 of Form 1099-MISC) of more than $100,000 from the
organization and any related organizations.

RoundBullet List all of the organization’s former officers, key employees, or highest compensated employees who received more than $100,000
of reportable compensation from the organization and any related organizations.

RoundBullet List all of the organization’s former directors or trustees that received, in the capacity as a former director or trustee of the
organization, more than $10,000 of reportable compensation from the organization and any related organizations.

List persons in the following order: individual trustees or directors; institutional trustees; officers; key employees; highest
compensated employees; and former such persons.
Check this box if neither the organization nor any related organizations compensated any current or former officer, director, or trustee.
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;
(1) DEBORAH M GEPHART
CHAIR
 1.00 X   X       2,800 0 0
(2) DAVID A BRENNER
VICE CHAIR
 1.00 X   X       2,800 0 0
(3) GEORGE T CHRESAND
DIRECTOR
 1.00 X           0 0 0
(4) STEVEN EARL PRAWER MD
DIRECTOR
 1.00 X           0 0 0
(5) MARK E HANSBERRY
DIRECTOR
 1.00 X           0 0 0
(6) RAMIN R MAHABADI
DIRECTOR
 1.00 X           1,050 0 0
(7) LYLE J SWENSON
DIRECTOR
 1.00 X           0 0 0
(8) PATRICK J BORAN
DIRECTOR
 1.00 X           0 0 0
(9) MARTIN P CAMPION RESIGNED 61010
DIRECTOR
 1.00 X           700 0 0
(10) KAREN J SWENSON RESIGNED 123110
DIRECTOR
 1.00 X           3,500 0 0
(11) MARCUS A MERZ
PRESIDENT
 8.00     X       119,808 0 6,580
(12) MICHAEL S UMLAND
TREASURER
 8.00     X       61,193 0 6,580
(13) DEBRA JR SHOEMAKER
SECRETARY
 8.00     X       51,809 0 6,370








Form 990 (2010)
Form 990 (2010)
Page 8
Part VII
Section A. Officers, Directors, Trustees, Key Employees, and Highest Compensated Employees (continued)
(A)
Name and Title 		(B)
Average hours per week (describe hours for related organizations in Schedule O) 		(C)
Position (check all that apply) 		(D)
Reportable compensation from the organization (W- 2/1099-MISC) 		(E)
Reportable compensation from related organizations (W- 2/1099-MISC) 		(F)
Estimated amount of other compensation from the organization and related organizations
Individual Trustee or Director; Institutional Trustee; Officer; Key Employee; Highest compensated employee; Former;


























1b Sub-Total................MediumBullet
c Total from continuation sheets to Part VII, Section A....MediumBullet
d Total (add lines 1b and 1c)............MediumBullet 243,660 0 19,530
2
Total number of individuals (including but not limited to those listed above) who received more than $100,000 in reportable compensation from the organizationMediumBullet1
Yes
No
3
Did the organization list any former officer, director or trustee, key employee, or highest compensated employee on line 1a? If “Yes,” complete Schedule J for such individual .............
3
 
No
4
For any individual listed on line 1a, is the sum of reportable compensation and other compensation from the organization and related organizations greater than $150,000? If “Yes,” complete Schedule J for such individual...........................
4
 
No
5
Did any person listed on line 1a receive or accrue compensation from any unrelated organization or individual for services rendered to the organization? If “Yes,” complete Schedule J for such person .....
5
 
No
Section B. Independent Contractors
1
Complete this table for your five highest compensated independent contractors that received more than $100,000 of compensation from the organization.
(A)
Name and business address 		(B)
Description of services 		(C)
Compensation
2
Total number of independent contractors (including but not limited to those listed above) who received more than $100,000 in compensation from the organization MediumBullet0
Form 990 (2010)
Form 990 (2010)
Page 9
Part VIII
Statement of Revenue
(A)
Total revenue 		(B)
Related or
exempt
function
revenue 		(C)
Unrelated
business
revenue 		(D)
Revenue
excluded from
tax under sections
512, 513, or 514
Contributions, gifts, grants and other similar amounts 1a Federated campaigns..1a  
b Membership dues....1b  
c Fundraising events....1c  
d Related organizations...1d  
e Government grants (contributions)1e  
f All other contributions, gifts, grants, and
similar amounts not included above1f 		 
g Noncash contributions included in lines 1a-1f:$  
h Total. Add lines 1a-1f.......MediumBullet  
Program Service Revenue Business Code
2a PREMIUM REVENUE 524,114 138,350,291 136,136,686 2,213,605  
b
c
d
e
f All other program service revenue .        
g Total. Add lines 2a–2f........MediumBullet 138,350,291
Other Revenue 3 Investment income (including dividends, interest
and other similar amounts).....MediumBullet 746,121     746,121
4 Income from investment of tax-exempt bond proceeds..MediumBullet        
5 Royalties............MediumBullet        
(i) Real (ii) Personal
6a Gross Rents    
b Less: rental expenses    
c Rental income or (loss)    
d Net rental income or (loss).......MediumBullet        
(i) Securities (ii) Other
7a Gross amount from sales of assets other than inventory 27,766,364  
b Less: cost or other basis and sales expenses 27,557,730  
c Gain or (loss) 208,634  
d Net gain or (loss)..........MediumBullet 208,634     208,634
8a Gross income from fundraising events (not including
$  
of contributions reported on line 1c). See Part IV, line 18 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from fundraising events..MediumBullet      
9a Gross income from gaming activities.
See Part IV, line 19 ...
a  
b Less: direct expenses ...b  
c Net income or (loss) from gaming activities...MediumBullet        
10a Gross sales of inventory, less
returns and allowances .
a  
b Less: cost of goods sold ..b  
c Net income or (loss) from sales of inventory..MediumBullet        
Miscellaneous Revenue Business Code
11a OTHER REVENUE 524,114 500,000 492,000 8,000  
b            
c            
d All other revenue ....        
e Total. Add lines 11a–11d ......MediumBullet 500,000
12 Total revenue. See Instructions....MediumBullet 139,805,046 136,628,686 2,221,605 954,755
Form 990 (2010)
Form 990 (2010)
Page 10
Part IX
Statement of Functional Expenses
Section 501(c)(3) and 501(c)(4) organizations must complete all columns. All other organizations must complete column (A) but are not required to complete columns (B), (C), and (D).
Do not include amounts reported on lines 6b,
7b, 8b, 9b, and 10b of Part VIII. 		(A)
Total expenses 		(B)
Program service expenses 		(C)
Management and general expenses 		(D)
Fundraising expenses
1 Grants and other assistance to governments and organizations in the U.S. See Part IV, line 21    
2 Grants and other assistance to individuals in the U.S. See Part IV, line 22    
3 Grants and other assistance to governments, organizations, and individuals outside the U.S. See Part IV, lines 15 and 16    
4 Benefits paid to or for members    
5 Compensation of current officers, directors, trustees, and key employees .... 255,840   255,840  
6 Compensation not included above, to disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B) ....        
7 Other salaries and wages        
8 Pension plan contributions (include section 401(k) and section 403(b) employer contributions) ....        
9 Other employee benefits .......        
10 Payroll taxes ...........        
11 Fees for services (non-employees):        
a Management ...... 8,676,467   8,676,467  
b Legal .........        
c Accounting ........... 63,354   63,354  
d Lobbying ...........        
e Professional fundraising. See Part IV, line 17..    
f Investment management fees ......        
g Other .......... 370,747   370,747  
12 Advertising and promotion ....        
13 Office expenses .......        
14 Information technology ......        
15 Royalties ..        
16 Occupancy ...........        
17 Travel ............        
18 Payments of travel or entertainment expenses for any federal, state, or local public officials ......        
19 Conferences, conventions, and meetings ....        
20 Interest ...........        
21 Payments to affiliates .......        
22 Depreciation, depletion, and amortization .....        
23 Insurance .............. 141,009   141,009  
24 Other expenses. Itemize expenses not covered above. (Expenses grouped together and labeled miscellaneous may not exceed 5% of total expenses shown on line 25 below.)
a PROFESSIONAL 48,168,810 48,168,810    
b HOSPITAL 46,070,598 46,070,598    
c PHARMACY 17,043,601 17,043,601    
d OTHER MEDICAL 6,479,647 6,479,647    
e REGULATORY COSTS 5,237,732   5,237,732  
f All other expenses 7,603,736 2,994,821 4,608,915  
25 Total functional expenses. Add lines 1 through 24f 140,111,541 120,757,477 19,354,064 0
26 Joint costs. Check here MediumBullet if following
SOP 98-2 (ASC 958-720). Complete this line only if the organization reported in column (B) joint costs from a combined educational campaign and fundraising solicitation 		       
Form 990 (2010)
Form 990 (2010)
Page 11
Part X Balance Sheet
(A)
Beginning of year 		(B)
End of year
Assets 1 Cash—non-interest-bearing .......... -369,346 1 1,184,604
2 Savings and temporary cash investments ....... 2,416,750 2 2,703,387
3 Pledges and grants receivable, net .........   3  
4 Accounts receivable, net ......... 1,855,082 4 1,029,471
5 Receivables from current and former officers, directors, trustees, key employees, and highest compensated employees. Complete Part II of
Schedule L ..........   5  
6 Receivables from other disqualified persons (as defined under section 4958(f)(1)) and persons described in section 4958(c)(3)(B). Complete Part II of
Schedule L ..........   6  
7 Notes and loans receivable, net .............   7  
8 Inventories for sale or use ..............   8  
9 Prepaid expenses and deferred charges ............ 92,287 9 48,721
10a Land, buildings, and equipment: cost or other basis. Complete Part VI of Schedule D 10a  
b Less: accumulated depreciation. ..... 10b     10c  
11 Investments—publicly traded securities ..........   11  
12 Investments—other securities. See Part IV, line 11 ...... 23,385,204 12 24,707,820
13 Investments—program-related. See Part IV, line 11 ..   13  
14 Intangible assets .........   14  
15 Other assets. See Part IV, line 11 ........... 1,153,102 15 1,098,743
16 Total assets. Add lines 1 through 15 (must equal line 34)... 28,533,079 16 30,772,746
Liabilities 17 Accounts payable and accrued expenses . 1,561,225 17 1,686,582
18 Grants payable ..........   18  
19 Deferred revenue .......... 2,797,154 19 3,152,626
20 Tax-exempt bond liabilities ..........   20  
21 Escrow or custodial account liability. Complete Part IV of Schedule D..   21  
22 Payables to current and former officers, directors, trustees, key
employees, highest compensated employees, and disqualified
persons. Complete Part II of Schedule L..........   22  
23 Secured mortgages and notes payable to unrelated third parties ..   23  
24 Unsecured notes and loans payable to unrelated third parties ....   24  
25 Other liabilities. Complete Part X of Schedule D..... 12,459,300 25 13,718,067
26 Total liabilities. Add lines 17 through 25..... 16,817,679 26 18,557,275
Net Assets or Fund Balance Organizations that follow SFAS 117, check here MediumBullet and complete lines 27 through 29, and lines 33 and 34.
27 Unrestricted net assets ..... 11,715,400 27 12,215,471
28 Temporarily restricted net assets .....   28  
29 Permanently restricted net assets .....   29  
Organizations that do not follow SFAS 117, check here MediumBullet and complete lines 30 through 34.
30 Capital stock or trust principal, or current funds .....   30  
31 Paid-in or capital surplus, or land, building or equipment fund .....   31  
32 Retained earnings, endowment, accumulated income, or other funds   32  
33 Total net assets or fund balances ..... 11,715,400 33 12,215,471
34 Total liabilities and net assets/fund balances ..... 28,533,079 34 30,772,746
Form 990 (2010)
Form 990 (2010)
Page 12
Part XI
Reconcilliation of Net Assets
Check if Schedule O contains a response to any question in this Part XI . . . . . . . . . .
1
Total revenue (must equal Part VIII, column (A), line 12) . . .
1
139,805,046
2
Total expenses (must equal Part IX, column (A), line 25) . . . . .
2
140,111,541
3
Revenue less expenses. Subtract line 2 from line 1 . . . .
3
-306,495
4
Net assets or fund balances at beginning of year (must equal Part X, line 33, column (A)) . .
4
11,715,400
5
Other changes in net assets or fund balances (explain in Schedule O) . . . .
5
806,566
6
Net assets or fund balances at end of year. Combine lines 3, 4, and 5 (must equal Part X, line 33, column (B)) . . . . . .
6
12,215,471
Part XII
Financial Statements and Reporting
Check if Schedule O contains a response to any question in this Part XII . . . . . . . . . .
Yes
No
1
Accounting method used to prepare the Form 990:  
If the organization changed its method of accounting from a prior year or checked "Other," explain in
Schedule O.
2a
Were the organization’s financial statements compiled or reviewed by an independent accountant?..
2a
 
No
b
Were the organization’s financial statements audited by an independent accountant?........
2b
Yes
 
c
If “Yes,” to 2a or 2b, does the organization have a committee that assumes responsibility for oversight of the audit, review, or compilation of its financial statements and selection of an independent accountant?
If the organization changed either its oversight process or selection process during the tax year, explain in Schedule O............................
2c
Yes
 
d
If “Yes” to line 2a or 2b, check a box below to indicate whether the financial statements for the year were issued on a separate basis, consolidated basis, or both:
3a
As a result of a federal award, was the organization required to undergo an audit or audits as set forth in the Single Audit Act and OMB Circular A-133? ................
3a
 
No
b
If “Yes,” did the organization undergo the required audit or audits? If the organization did not undergo the required audit or audits, explain why in Schedule O and describe any steps taken to undergo such audits. ..
3b
 
 
Form 990 (2010)
Additional Data


Software ID:  
Software Version:  
Form 990, Special Condition Description:
Special Condition Description
SCHEDULE D
(Form 990)
Department of the Treasury
Internal Revenue Service
Supplemental Financial Statements
SchDMd Bullet Complete if the organization answered "Yes," to Form 990,
Part IV, line 6, 7, 8, 9, 10, 11, or 12.
SchDMd Bullet Attach to Form 990. SchDMd Bullet See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
PREFERREDONE COMMUNITY HEALTH PLAN
 
Employer identification number

41-1796007
Part I
Organizations Maintaining Donor Advised Funds or Other Similar Funds or Accounts. Complete if the organization answered "Yes" to Form 990, Part IV, line 6.
(a) Donor advised funds (b) Funds and other accounts
1 Total number at end of year .......    
2 Aggregate contributions to (during year) ...    
3 Aggregate grants from (during year) ...    
4 Aggregate value at end of year .......    
5
Did the organization inform all donors and donor advisors in writing that the assets held in donor advised
funds are the organization's property, subject to the organization's exclusive legal control? ............
6
Did the organization inform all grantees, donors, and donor advisors in writing that grant funds may be
used only for charitable purposes and not for the benefit of the donor or donor advisor, or for any other purpose conferring impermissible private benefit. ...................................
Part II
Conservation Easements. Complete if the organization answered "Yes" to Form 990, Part IV, line 7.
1
Purpose(s) of conservation easements held by the organization (check all that apply).
2
Complete lines 2a–2d if the organization held a qualified conservation contribution in the form of a conservation easement on the last day of the tax year.
Held at the End of the Year
a Total number of conservation easements ....................... 2a  
b Total acreage restricted by conservation easements .................. 2b  
c Number of conservation easements on a certified historic structure included in (a) ..... 2c  
d Number of conservation easements included in (c) acquired after 8/17/06 ........ 2d  
3
Number of conservation easements modified, transferred, released, extinguished, or terminated by the organization during
the taxable year SchDMd Bullet  
4
Number of states where property subject to conservation easement is located SchDMd Bullet  
5
Does the organization have a written policy regarding the periodic monitoring, inspection, handling of violations, and
enforcement of the conservation easements it holds? .............................
6
Staff and volunteer hours devoted to monitoring, inspecting and enforcing conservation easements during the year SchDMd Bullet  
7
Amount of expenses incurred in monitoring, inspecting, and enforcing conservation easements during the year SchDMd Bullet $  
8
Does each conservation easement reported on line 2(d) above satisfy the requirements of section
170(h)(4)(B)(i) and 170(h)(4)(B)(ii)? ....................................
9
In Part XIV, describe how the organization reports conservation easements in its revenue and expense statement, and
balance sheet, and include, if applicable, the text of the footnote to the organization’s financial statements that describes
the organization’s accounting for conservation easements.
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets.
Complete if the organization answered "Yes" to Form 990, Part IV, line 8.
1a
If the organization elected, as permitted under SFAS 116, not to report in its revenue statement and balance sheet works of
art, historical treasures, or other similar assets held for public exhibition, education or research in furtherance of public service,
provide, in Part XIV, the text of the footnote to its financial statements that describes these items.
b
If the organization elected, as permitted under SFAS 116, to report in its revenue statement and balance sheet works of art,
historical treasures, or other similar assets held for public exhibition, education, or research in furtherance of public service,
provide the following amounts relating to these items:
(i)
Revenues included in Form 990, Part VIII, line 1 ........................SchDMd Bullet $  
(ii)
Assets included in Form 990, Part X ..............................SchDMd Bullet $  
2
If the organization received or held works of art, historical treasures, or other similar assets for financial gain, provide the
following amounts required to be reported under SFAS 116 relating to these items:
a
Revenues included in Form 990, Part VIII, line 1 ..........................SchDMd Bullet $  
b
Assets included in Form 990, Part X ...............................SchDMd Bullet $  
For Privacy Act and Paperwork Reduction Act Notice, see the Intructions for Form 990
Cat. No. 52283D
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 2
Part III
Organizations Maintaining Collections of Art, Historical Treasures, or Other Similar Assets (continued)
3
Using the organization’s accession and other records, check any of the following that are a significant use of its collection
items (check all that apply):
a
d
b
e
 
c
4
Provide a description of the organization’s collections and explain how they further the organization’s exempt purpose in
Part XIV.
5
During the year, did the organization solicit or receive donations of art, historical treasures or other similar
assets to be sold to raise funds rather than to be maintained as part of the organization’s collection?........
Part IV
Escrow and Custodial Arrangements. Complete if the organization answered "Yes" to Form 990,
Part IV, line 9, or reported an amount on Form 990, Part X, line 21.
1a
Is the organization an agent, trustee, custodian or other intermediary for contributions or other assets not
included on Form 990, Part X? ....................................
b
If "Yes," explain the arrangement in Part XIV and complete the following table:
Amount
c Beginning balance ................................. 1c  
d Additions during the year .............................. 1d  
e Distributions during the year ............................. 1e  
f Ending balance ................................... 1f  
2a
Did the organization include an amount on Form 990, Part X, line 21? .....................
b
If “Yes,” explain the arrangement in Part XIV.
Part V
Endowment Funds. Complete if the organization answered "Yes" to Form 990, Part IV, line 10.
(a)Current Year (b)Prior Year (c)Two Years Back (d)Three Years Back (e)Four Years Back
1a Beginning of year balance ....      
b Contributions ........      
c Investment earnings or losses ...      
d Grants or scholarships .....      
e Other expenditures for facilities
and programs ........ 		     
f Administrative expenses ....      
g End of year balance ......      
2
Provide the estimated percentage of the year end balance held as:
a
Board designated or quasi-endowment: SchDMd Bullet  
b
Permanent endowment: SchDMd Bullet  
c
Term endowment: SchDMd Bullet  
3a
Are there endowment funds not in the possession of the organization that are held and administered for the
organization by:

Yes
No
(i) unrelated organizations ........................
3a(i)
 
 
(ii) related organizations ........................
3a(ii)
 
 
b
If "Yes" to 3a(ii), are the related organizations listed as required on Schedule R? .........
3b
 
 
4
Describe in Part XIV the intended uses of the organization's endowment funds.
Part VI
Investments—Land, Buildings, and Equipment. See Form 990, Part X, line 10.
Description of investment (a) Cost or other basis (investment) (b)Cost or other basis (other) (c) Accumulated depreciation (d) Book value
1a Land .................      
b Buildings ................        
c Leasehold improvements ............        
d Equipment ................        
e Other .................        
Total. Add lines 1a-1e. (Column (d) should equal Form 990, Part X, column (B), line 10(c).)........SchDMdBullet 0
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 3
Part VII
Investments—Other Securities. See Form 990, Part X, line 12.
(a) Description of security or category
(including name of security)		 (b)Book value (c) Method of valuation:
Cost or end-of-year market value
(1)Financial derivatives    
(2)Closely-held equity interests    
(3)Other
(A) CORPORATE DEBT SECURITIES 		6,593,358 F

(B) CERTIFICATE OF DEPOSITS 		2,273,035 F

(C) U.S. GOVERNMENT OBLIGATIONS 		5,233,120 F

(D) ASSET BACKED SECURITIES 		905,069 F

(E) MUNICIPAL BONDS 		2,611,483 F

(F) OTHER SECURITIES 		4,011,550 F

(G) CORPORATE EQUITY SECURITIES 		3,080,205 F


Total. (Column (b) should equal Form 990, Part X, col.(B) line 12.)Small Bullet 24,707,820
Part VIII
Investments—Program Related. See Form 990, Part X, line 13.
(a) Description of investment type (b) Book value (c) Method of valuation:
Cost or end-of-year market value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 13.)Small Bullet  
Part IX
Other Assets. See Form 990, Part X, line 15.
(a) Description (b) Book value








Total. (Column (b) should equal Form 990, Part X, col.(B) line 15.)...........Small Bullet  
Part X
Other Liabilities. See Form 990, Part X, line 25.
1.(a) Description of Liability (b) Amount
Federal Income Taxes  
DUE TO AFFILIATES 135,767
CLAIMS PAYABLE 13,253,558
DUE TO PROVIDERS 328,742






Total. (Column (b) should equal Form 990, Part X, col.(B) line 25.)Small Bullet 13,718,067
2. Fin 48 (ASC 740) Footnote. In Part XIV, provide the text of the footnote to the organization's financial statements that reports the organization's liability for uncertain tax positions under FIN 48 (ASC740).
Schedule D (Form 990) 2010

Schedule D (Form 990) 2010
Page 4
Part XI Reconciliation of Change in Net Assets from Form 990 to Financial Statements
1 Total revenue (Form 990, Part VIII, column (A), line 12) .................... 1 139,805,046
2 Total expenses (Form 990, Part IX, column (A), line 25) ..................... 2 140,111,541
3 Excess or (deficit) for the year. Subtract line 2 from line 1 ............. 3 -306,495
4 Net unrealized gains (losses) on investments .......................... 4 806,566
5 Donated services and use of facilities ............................. 5  
6 Investment expenses ................................... 6  
7 Prior period adjustments .................................. 7  
8 Other (Describe in Part XIV) ................................. 8  
9 Total adjustments (net). Add lines 4 - 8 ............................. 9 806,566
10 Excess or (deficit) for the year per financial statements. Combine lines 3 and 9 ......... 10 500,071
Part XII Reconciliation of Revenue per Audited Financial Statements With Revenue per Return
1 Total revenue, gains, and other support per audited financial statements ....... 1 140,443,913
2 Amounts included on line 1 but not on Form 990, Part VIII, line 12:
a Net unrealized gains on investments .......... 2a 706,324
b Donated services and use of facilities ......... 2b  
c Recoveries of prior year grants ........... 2c  
d Other (Describe in Part XIV): ............ 2d -67,457
e Add lines 2a through 2d ..................... 2e 638,867
3 Subtract line 2e from line 1..................... 3 139,805,046
4 Amounts included on Form 990, Part VIII, line 12, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b . 4a  
b Other (Describe in Part XIV): ........... 4b  
c Add lines 4a and 4b....................... 4c 0
5 Total Revenue. Add lines 3 and 4c. (This should equal Form 990, Part I, line 12.) ...... 5 139,805,046
Part XIII Reconciliation of Expenses per Audited Financial Statements With Expenses per Return
1 Total expenses and losses per audited financial statements ............. 1 140,044,084
2 Amounts included on line 1 but not on Form 990, Part IX, line 25:
a Donated services and use of facilities .......... 2a  
b Prior year adjustments .............. 2b  
c Other losses ................ 2c  
d Other (Describe in Part XIV): ............ 2d  
e Add lines 2a through 2d...................... 2e 0
3 Subtract line 2e from line 1..................... 3 140,044,084
4 Amounts included on Form 990, Part IX, line 25, but not on line 1:
a Investment expenses not included on Form 990, Part VIII, line 7b .. 4a  
b Other (Describe in Part XIV): ............ 4b 67,457
c Add lines 4a and 4b....................... 4c 67,457
5 Total expenses. Add lines 3 and 4c. (This should equal Form 990, Part I, line 18.) ...... 5 140,111,541
Part XIV
Supplemental Information
Complete this part to provide the descriptions required for Part II, lines 3, 5, and 9; Part III, lines 1a and 4; Part lV, lines 1b and 2b;
Part V, line 4; Part X; Part XI, line 8; Part XII, lines 2d and 4b; and Part XIII, lines 2d and 4b. Also complete this part to provide any additional information.
Identifier Return Reference Explanation
DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: PCHP HAS REVIEWED ITS TAX POSITIONS FOR ALL OPEN TAX YEARS AND HAS CONCLUDED THAT THE ADOPTION OF FIN48 DID NOT AFFECT ITS FINANCIAL STATEMENT PRESENTATION.
PART XII, LINE 2D - OTHER ADJUSTMENTS:   INVESTMENT EXPENSES RECLASSED TO EXPENSE -67,457.
PART XIII, LINE 4B - OTHER ADJUSTMENTS:   INVESTMENT EXPENSES RECLASSED TO EXPENSE 67,457.
Schedule D (Form 990) 2010

Additional Data


Software ID:  
Software Version:  




SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public
Inspection
Name of the organization
PREFERREDONE COMMUNITY HEALTH PLAN
 
Employer identification number

41-1796007
Identifier Return Reference Explanation
FORM 990, PART VI, SECTION A, LINE 6   MEMBERS CONSISTS OF THE PARTICIPANTS ON THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS CONSISTS OF: CONTRIBUTING MEMBERS, COMPOSED OF EMPLOYEES OF PROVIDER OWNERS THAT HAVE CONTRIBUTED CAPITAL TO PREFERREDONE COMMUNITY HEALTH PLAN; NON-CONTRIBUTING MEMBERS, COMPOSED OF INDIVIDUALS OF PREFERREDONE PHYSICIANS ASSOCIATION, WHICH ARE PRACTICING PHYSICIANS; AND ENROLLEE DIRECTORS, WHICH ARE EMPLOYEES OF EMPLOYER GROUPS THAT HAVE PURCHASED HEALTH INSURANCE COVERAGE THROUGH PCHP OR ITS AFFILIATES.
FORM 990, PART VI, SECTION A, LINE 7A   MEMBERS CONSISTS OF THE PARTICIPANTS ON THE BOARD OF DIRECTORS. THE BOARD OF DIRECTORS CONSISTS OF: CONTRIBUTING MEMBERS, COMPOSED OF EMPLOYEES OF PROVIDER OWNERS THAT HAVE CONTRIBUTED CAPITAL TO PREFERREDONE COMMUNITY HEALTH PLAN; NON-CONTRIBUTING MEMBERS, COMPOSED OF INDIVIDUALS OF PREFERREDONE PHYSICIANS ASSOCIATION, WHICH ARE PRACTICING PHYSICIANS;AND ENROLLEE DIRECTORS, WHICH ARE EMPLOYEES OF EMPLOYER GROUPS THAT HAVE PURCHASED HEALTH INSURANCE COVERAGE THROUGH PCHP OR ITS AFFILIATES. THE TWO CONTRIBUTING MEMBERS APPOINT (AND FILL VACANCIES OF)UP TO 4 DIRECTORS RESPECTIVELY. THE NON-CONTRIBUTING MEMBER MAY APPOINT (AND FILL VACANCIES OF) UP TO 2 DIRECTORS. VACANCIES THAT ARISE WITH RESPECT TO ENROLEE DIRECTORS ARE FILLED BY MAJORITY VOTE OF OTHER ENROLLEE DIRECTORS FOR THE REMAINDER OF THE UNEXPIRED TERM.
FORM 990, PART VI, SECTION B, LINE 11   THE MANAGER OF ACCOUNTING COMPLETES FORM 990. THE DIRECTOR OF ACCOUNTING, CFO, AND AUDIT AND INVESTMENT COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS FORM 990 BEFORE FILING.
  FORM 990, PART VI, SECTION B, LINE 12C ANNUALLY BOARD OF DIRECTORS UPDATE CONFLICT OF INTEREST STATEMENTS.
  FORM 990, PART VI, SECTION B, LINE 15 PREFERREDONE ADMINISTRATIVE SERVICES INC. (PAS), THE COMMON PAYMASTER OF PCHP, HAS A COMPENSATION COMMITTEE CONSISTING OF THE CEO AND MEMBERS OF THE BOARD OF DIRECTORS OF PAS THAT MEET ANNUALLY TO REVIEW COMPENSATION OF PCHP OFFICERS. EVERY THREE YEARS THIS COMPENSATION REVIEW PROCESS INVOLVES AN OUTSIDE COMPENSATION CONSULTANT THAT CONDUCTS INDUSTRY COMPARISON ANALYSIS AND OTHER COMPENSATION COMPARISONS.
  FORM 990, PART VI, SECTION C, LINE 19 ANNUAL STATUTORY FILINGS ARE AVAILABLE ON THE STATE OF MN WEBSITE. TRI-ANNUAL AUDITS BY THE MN DEPARTMENT OF COMMERCE ARE ALSO AVAILABLE.
CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 806,566.
ORGANIZATION'S MISSION STATEMENT FORM 990, PART I, LINE 1 THE MISSION OF PREFERREDONE COMMUNITY HEALTH PLAN (PCHP) IS TO MAKE AVAILABLE TO THE RESIDENTS OF THE STATE OF MINNESOTA COMPREHENSIVE HEALTH MAINTENANCE SERVICES THAT ARE ACCESSIBLE, ACCEPTABLE, AND DELIVERED IN A MANNER CONGRUENT WITH THE ECONOMIC AND SOCIAL NEEDS OF THE COMMUNITY. THE HEALTH PLAN WILL ADVOCATE FOR IMPROVEMENTS IN THE DELIVERY, QUALITY AND COVERAGE OF HEALTH CARE SERVICES AND PURSUE HEALTH CARE PROGRAMS TO MEET COMMUNITY NEEDS.
DESCRIPTION OF ORGANIZATION MISSION FORM 990, PART III, LINE 1 CONTINUED ASPECTS OF OUR PLAN, INCLUDING PREVENTIVE HEALTH SERVICES, MEMBER SATISFACTION, PHYSICIAN CREDENTIALING AND QUALITY IMPROVEMENT.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2010

Additional Data


Software ID:  
Software Version: