Department of the Treasury Internal Revenue Service
Public Charity Status and Public Support
Complete if the organization is a section 501(c)(3) organization or a section
4947(a)(1) nonexempt charitable trust.
Attach to Form 990 or Form 990-EZ. See separate instructions.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
ATRIUS HEALTH INC
Employer identification number
01-0803117
Part I
Reason for Public Charity Status
(All organizations must complete this part.) See instructions
The organization is not a private foundation because it is: (For lines 1 through 11, check only one box.)
1
2
3
4
5
section 170(b)(1)(A)(iv). (Complete Part II.)
6
7
8
9
receipts from activities related to its exempt functions—subject to certain exceptions, and (2) no more than 331/3% of
its support from gross investment income and unrelated business taxable income (less section 511 tax) from businesses
acquired by the organization after June 30, 1975. See section 509(a)(2). (Complete Part III.)
10
11
e
By checking this box, I certify that the organization is not controlled directly or indirectly by one or more disqualified persons other than foundation managers and other than one or more publicly supported organizations described in section 509(a)(1) or section 509(a)(2).
f
If the organization received a written determination from the IRS that it is a Type I, Type II or Type III supporting organization, check this box
..................................................
g
Since August 17, 2006, has the organization accepted any gift or contribution from any of the following persons?
(i) a person who directly or indirectly controls, either alone or together with persons described in (ii)
Yes
No
and (iii) below, the governing body of the the supported organization?
................
11g(i)
(ii)
a family member of a person described in (i) above?
......................
11g(ii)
(iii)
a 35% controlled entity of a person described in (i) or (ii) above?
................
11g(iii)
h
Provide the following information about the supported organization(s).
(i) Name of supported organization
(ii) EIN
(iii) Type of organization (described on lines 1- 9 above or IRC section (see instructions))
(iv) Is the organization in col. (i) listed in your governing document?
(v) Did you notify the organization in col. (i) of your support?
(vi) Is the organization in col. (i) organized in the U.S.?
(vii) Amount of support?
Yes
No
Yes
No
Yes
No
Total
For Paperwork Reduction Act Notice, see the Instructions for Form 990.
Cat. No. 11285F
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 2
Part II
Support Schedule for Organizations Described in IRC 170(b)(1)(A)(iv) and 170(b)(1)(A)(vi) (Complete only if you checked the box on line 5, 7, or 8 of Part I or if the
organization failed to qualify under Part III. If the organization fails to
qualify under the tests listed below, please complete Part III.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") ....
2
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf.......
3
The value of services or facilities furnished by a governmental unit to the organization without charge..
4
Total. Add lines 1 through 3..
5
The portion of total contributions by each person (other than a governmental unit or publicly supported organization) included
on line 1 that exceeds 2% of the amount shown on line 11, column (f)..
6
Public Support. Subtract line 5 from line 4.
Section B. Total Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
7
Amounts from line 4..
8
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
9
Net income from unrelated business activities, whether or not the business is regularly carried on..
10
Other income. (Explain in Part IV.) Do not include gain or loss from the sale of capital assets..
11
Total support (Add lines 7 through 10).
12
Gross receipts from related activities, etc. (See instructions.)
..................
12
13
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here..........................................
Section C. Computation of Public Support Percentage
14
Public Support Percentage for 2010 (line 6 column (f) divided by line 11 column (f))
.........
14
15
Public Support Percentage for 2009 Schedule A, Part II, line 14
...............
15
16a
33 1/3% support test—2010.
If the organization did not check the box on line 13, and line 14 is 33 1/3% or more, check this box
and stop here. The organization qualifies as a publicly supported organization
......................
b
33 1/3% support test—2009.
If the organization did not check the box on line 13 or 16a, and line 15 is 33 1/3% or more, check this
box and stop here. The organization qualifies as a publicly supported organization
.....................
17a
10%-facts-and-circumstances test—2010.
If the organization did not check a box on line 13, 16a, or 16b and line 14
is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here. Explain
in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported
organization
..................................................
b
10%-facts-and-circumstances test—2009.
If the organization did not check a box on line 13, 16a, 16b, or 17a and line
15 is 10% or more, and if the organization meets the "facts and circumstances" test, check this box and stop here.
Explain in Part IV how the organization meets the "facts and circumstances" test. The organization qualifies as a publicly supported organization
..............................................
18
Private Foundation
If the organization did not check a box on line 13, 16a, 16b, 17a or 17b, check this box and see
instructions
...................................................
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 3
Part III
Support Schedule for Organizations Described in IRC 509(a)(2) (Complete only if you checked the box on line 9 of Part I or if the organization
failed to qualify under Part II. If the organization fails to qualify under
the tests listed below, please complete Part II.)
Section A. Public Support
Calendar year(or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
1
Gifts, grants, contributions, and membership fees received. (Do not include any "unusual grants.") .
1,700
3,860
5,560
2
Gross receipts from admissions, merchandise sold or services performed, or facilities furnished in any activity that is related to the organization's tax-exempt purpose......
6,715,835
7,915,717
8,965,931
10,342,692
17,265,299
51,205,474
3
Gross receipts from activities that are not an unrelated trade or business under section 513..
4
Tax revenues levied for the organization's benefit and either paid to or expended on its behalf...
5
The value of services or facilities furnished by a governmental unit to the organization without charge..
6
Total. Add lines 1 through 5.
6,715,835
7,915,717
8,967,631
10,342,692
17,269,159
51,211,034
7a
Amounts included on lines 1, 2, and 3 received from disqualified persons...
0
b
Amounts included on lines 2 and 3 received from other than disqualified persons that exceed the greater of $5,000 or 1% of the amount on line 13 for the year.
0
c
Add lines 7a and 7b..
0
8
Public Support (Subtract line 7c from line 6.)
51,211,034
Section B. Total Support
Calendar year (or fiscal year beginning in)
(a) 2006
(b) 2007
(c) 2008
(d) 2009
(e) 2010
(f) Total
9
Amounts from line 6...
6,715,835
7,915,717
8,967,631
10,342,692
17,269,159
51,211,034
10a
Gross income from interest, dividends, payments received on securities loans, rents, royalties and income from similar sources..
304,703
133,575
66,517
8,088
821
513,704
b
Unrelated business taxable income (less section 511 taxes) from businesses acquired after June 30, 1975.
c
Add lines 10a and 10b.
304,703
133,575
66,517
8,088
821
513,704
11
Net income from unrelated business activities not included in line 10b, whether or not the business is regularly carried on.
12
Other income. Do not include gain or loss from the sale of capital assets (Explain in Part IV.)
13
Total support (Add lines 9, 10c, 11 and 12.).
7,020,538
8,049,292
9,034,148
10,350,780
17,269,980
51,724,738
14
First Five Years
If the Form 990 is for the organization's first, second, third, fourth, or fifth tax year as a 501(c)(3) organization,
check this box and stop here.............................................
Section C. Computation of Public Support Percentage
15
Public Support Percentage for 2010 (line 8 column (f) divided by line 13 column (f))
.........
15
99.010 %
16
Public support percentage from 2009 Schedule A, Part III, line 15
...............
16
98.480 %
Section D. Computation of Investment Income Percentage
17
Investment income percentage for 2010 (line 10c column (f) divided by line 13 column (f))
......
17
0.990 %
18
Investment income percentage from 2009 Schedule A, Part III, line 17
.............
18
1.520 %
19a
33 1/3% support tests—2010.
If the organization did not check the box on line 14, and line 15 is more than 33 1/3% and line 17 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
..........
b
33 1/3% support tests—2009.
If the organization did not check a box on line 14 or line 19a, and line 16 is more than 33 1/3% and line 18 is not more than 33 1/3%, check this box and stop here. The organization qualifies as a publicly supported organization
....
20
Private Foundation
If the organization did not check a box on line 14, 19a or 19b, check this box and see instructions
.....
Schedule A (Form 990 or 990-EZ) 2010
Schedule A (Form 990 or 990-EZ) 2010
Page 4
Part IV
Supplemental Information.
Supplemental Information. Complete this part to provide the explanation required by Part II, line 10; Part II, line 17a or 17b; or Part III, line 12. Also complete this part for any additional information. (See instructions).
Facts And Circumstances Test
Explanation
Schedule A (Form 990 or 990-EZ) 2010
Additional Data
Software ID:
Software Version:
-
TIN:
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.
Attach to Form 990 or 990-EZ.
OMB No. 1545-0047
2010
Open to Public Inspection
Name of the organization
ATRIUS HEALTH INC
Employer identification number
01-0803117
Identifier
Return Reference
Explanation
FORM 990, PART VI, SECTION A, LINE 6
ATRIUS HEALTH, INC. (THE CORPORATION) HAS ONE CLASS OF MEMBERS. AS DEFINED IN ITS BYLAWS, THE MEMBERS ARE THE PHYSICIAN TRUSTEES.
FORM 990, PART VI, SECTION A, LINE 7A
THE MEMBERS APPOINT THE COMMUNITY TRUSTEES. IN ADDITION, EACH PARTICIPATING ORGANIZATION APPOINTS ONE PHYSICIAN TRUSTEE, EXCEPT HARVARD VANGUARD MEDICAL ASSOCIATES, INC. WHICH APPOINTS TWO PHYSICIAN TRUSTEES. THE PHYSICIAN TRUSTEES SERVE AS MEMBERS.
FORM 990, PART VI, SECTION A, LINE 7B
CERTAIN MAJOR DECISIONS AS DEFINED IN THE BYLAWS REQUIRE APPROVAL BY A SUPER-MAJORITY (GREATER THAN 60%) OF THE MEMBERS. EACH PARTICIPATING ORGANIZATION APPOINTS ONE PHYSICIAN TRUSTEE, EXCEPT HARVARD VANGUARD MEDICAL ASSOCIATES, INC. WHICH APPOINTS TWO PHYSICIAN TRUSTEES. THE PHYSICIAN TRUSTEES SERVE AS MEMBERS. EACH OF THE MEMBERS, EXCEPT THE HARVARD VANGUARD MEMBERS, HAS ONE VOTE. THE HARVARD VANGUARD MEMBERS EACH HAVE ONE AND ONE-HALF VOTES. AS OF DECEMBER 31, 2010 THERE WERE FIVE COMMUNITY TRUSTEES. THE COMMUNITY TRUSTEES SERVE AS THE MEMBERS OF THE COMPENSATION COMMITTEE FOR THE CORPORATION. THE CORPORATION'S BYLAWS DIRECT THE COMPENSATION COMMITTEE TO: (I) CONSULT WITH A NATIONALLY-RECOGNIZED COMPENSATION CONSULTING COMPANY TO ASSIST IT IN DETERMINING THAT SUCH COMPENSATION RANGES AND STRUCTURE ARE REASONABLE (AS DEFINED BY APPLICABLE INTERNAL REVENUE SERVICE REGULATIONS AND RULINGS); (II) ADOPT AND IMPLEMENT POLICIES AND PROCEDURES CONSISTENT WITH SECTION 4958 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED FROM TIME TO TIME, AND THE REGULATIONS ISSUED THEREUNDER. THE ATRIUS HEALTH COMPENSATION COMMITTEE ALSO SERVES AS THE COMPENSATION COMMITTEE FOR THE PARTICIPATING ORGANIZATIONS, EXCEPT HARVARD VANGUARD WHICH HAS ITS OWN COMPENSATION COMMITTEE.
FORM 990, PART VI, SECTION B, LINE 11
ATRIUS HEALTH ENGAGED AN OUTSIDE TAX/ACCOUNTING FIRM TO REVIEW AND PREPARE FORM 990 FOR ATRIUS HEALTH. AN INTERNAL TEAM AT ATRIUS HEALTH INCLUDING STAFF FROM LEGAL, ACCOUNTING, AND HUMAN RESOURCES DEPARTMENTS WORK CLOSELY WITH THE OUTSIDE FIRM TO PREPARE THE DOCUMENT. ALL INFORMATION ON THE 990 RELATING TO COMPENSATION (INCLUDING PART VI, PART VII, AND SCHEDULE J) IS FORMALLY REVIEWED AND APPROVED BY THE ATRIUS HEALTH COMPENSATION COMMITTEE OF THE BOARD OF TRUSTEES, WHICH IS COMPOSED OF INDEPENDENT TRUSTEES. IN ADDITION, THE ATRIUS HEALTH AUDIT & COMPLIANCE COMMITTEE FORMALLY REVIEWS AND APPROVES THE ENTIRE 990. A DRAFT 990 IS PROVIDED TO THE MEMBERS OF THE AUDIT & COMPLIANCE COMMITTEE IN ADVANCE OF A MEETING WHERE THE OUTSIDE FIRM PRESENTS MAJOR HIGHLIGHTS AND ISSUES (IF ANY). THEN, A FINAL DRAFT 990 IS PROVIDED TO THE FULL BOARD OF TRUSTEES OF ATRIUS HEALTH BEFORE FILING.
FORM 990, PART VI, SECTION B, LINE 12C
ARTICLE VIII OF ATRIUS HEALTH INC.'S BY-LAWS, TITLED "CONFLICTS OF INTEREST", CONTAINS ATRIUS HEALTH INC.'S POLICY AND COMPLIANCE PROCEDURES. ATRIUS HEALTH INC.'S OFFICERS, DIRECTORS OR TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANNUALLY INTERESTS THAT COULD GIVE RISE TO CONFLICTS AS DEFINED BY THE POLICY AND THE IRS. OFFICERS, TRUSTEES, AND KEY EMPLOYEES ARE REQUIRED TO COMPLETE AN ANNUAL CONFLICTS OF INTEREST DISCLOSURE FORM. THE RESPONSES ARE REVIEWED BY THE GENERAL COUNSEL. IN THE EVENT A CONFLICT IS DISCLOSED THE GENERAL COUNSEL REVIEWS SUCH CONFLICT WITH THE AUDIT AND COMPLIANCE COMMITTEE AND/OR THE BOARD OF TRUSTEES. IN ACCORDANCE WITH THE CONFLICTS OF INTEREST POLICY, ANY SUCH DISCLOSURE THAT MEETS THE DEFINITION OF A POTENTIAL CONFLICT IS REVIEWED BY THE BOARD OF TRUSTEES AND ADDRESSED AS DIRECTED BY THE BOARD. IN ACCORDANCE WITH THE POLICY, OFFICERS, TRUSTEES AND KEY EMPLOYEES ARE EXPECTED TO DISCLOSE ANY POTENTIAL CONFLICT OF INTEREST THAT ARISES DURING THE YEAR AND ANY SUCH POTENTIAL CONFLICT WOULD BE REVIEWED IN ACCORDANCE WITH THE PROCESS NOTED ABOVE.
FORM 990, PART VI, SECTION B, LINE 15
THE ATRIUS HEALTH CEO ALSO SERVES AS THE HARVARD VANGUARD MEDICAL ASSOCIATES (A RELATED ORGANIZATION) CEO. THE HARVARD VANGUARD COMPENSATION COMMITTEE WAS PRIMARILY RESPONSIBLE FOR THE REVIEW AND APPROVAL OF THE CEO'S COMPENSATION. THE COMPENSATION COMMITTEE, A COMMITTEE OF THE HARVARD VANGUARD BOARD OF TRUSTEES CONSISTING OF INDEPENDENT, COMMUNITY MEMBERS, DETERMINES COMPENSATION FOR ALL OFFICERS AND KEY EMPLOYEES BASED ON RESEARCH AND STATEMENTS OF REASONABLENESS FROM NATIONALLY RECOGNIZED COMPENSATION CONSULTANTS, WHICH ASSISTS THE COMMITTEE IN DETERMINING THE MARKET COMPETITIVENESS AND REASONABLENESS OF THE COMPENSATION. COMPENSATION DECISIONS BY THE COMMITTEE ARE MADE IN ADVANCE OF IMPLEMENTATION AND ARE PROPERLY DOCUMENTED ON A TIMELY BASIS IN COMMITTEE MINUTES. ALL COMPENSATION DECISIONS RELATED TO HARVARD VANGUARD OFFICERS AND KEY EMPLOYEES MUST BE APPROVED BY THE HARVARD VANGUARD COMPENSATION COMMITTEE. THE CEO'S GOALS AND RELATED INCENTIVE COMPENSATION PAYMENTS ARE REVIEWED AND APPROVED BY BOTH THE COMPENSATION COMMITTEES OF THE ATRIUS HEALTH BOARD AND THE HARVARD VANGUARD BOARD. BOTH COMMITTEES ARE MADE UP OF INDEPENDENT, COMMUNITY TRUSTEES. OTHER KEY EMPLOYEES ARE EMPLOYEES OF HARVARD VANGUARD LEASED TO ATRIUS HEALTH. THE COMPENSATION FOR SUCH EMPLOYEES IS ESTABLISHED IN ACCORDANCE WITH THE PROCEDURE NOTED ABOVE. THE COMPENSATION WAS REVIEWED AND APPROVED BY BOTH THE COMPENSATION COMMITTEES OF THE HARVARD VANGUARD BOARD AND THE ATRIUS HEALTH BOARD. KEY EMPLOYEES' GOALS AND INCENTIVE COMPENSATION ARE APPROVED BY THE COMPENSATION COMMITTEE OF THE ATRIUS HEALTH BOARD. STIPENDS WERE AWARDED TO THE TRUSTEES OF THE CORPORATION IN RECOGNITION OF THE TIME DEVOTED TO PARTICIPATE IN BOARD ACTIVITIES. THE BOARD ELECTED TO NO LONGER PAY STIPENDS TO TRUSTEES BEGINNING JULY 2011.
FORM 990, PART VI, SECTION C, LINE 19
FINANCIAL STATEMENTS ARE ATTACHED TO THE MA FORM PC FILED WITH THE ATTORNEY GENERAL'S OFFICE, WHICH IS OPEN TO PUBLIC INSPECTION. THE ARTICLES OF ORGANIZATION ARE AVAILABLE AT THE MASSACHUSETTS SECRETARY OF STATE'S OFFICE, INCLUDING ON-LINE. OTHER GOVERNING DOCUMENTS AND THE CONFLICTS OF INTEREST POLICY ARE NOT GENERALLY AVAILABLE TO THE PUBLIC. REQUESTS FOR COPIES OF SUCH DOCUMENTS ARE CONSIDERED ON A CASE BY CASE BASIS.
FORM 990 - PARTS VII, X AND SCHEDULE J
COMPENSATION PAID BY ORGANIZATION - LEASED EMPLOYEES (REPORTING): THE ORGANIZATION'S EMPLOYEES ARE LEASED FROM A RELATED ORGANIZATION (HARVARD VANGUARD MEDICAL ASSOCIATES, INC.) FOR WHICH HVMA IS REIMBURSED. FOR REPORTING OF COMPENSATION IN PARTS VII AND X OF FORM 990 AND SCHEDULE J (FORM 990), THE REIMBURSED COMPENSATION IS REPORTED AS PAID BY THIS ORGANIZATION. FORM 990, PART VII, AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: NEIL J. BERMAN, MD IS A PHYSICIAN AT GRANITE MEDICAL GROUP, INC. AND A TRUSTEE OF GMG AND AH. DR. BERMAN AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO GMG. DANIEL BURNES IS A PHYSICIAN AT HARVARD VANGUARD MEDICAL ASSOCIATES, INC. AND A TRUSTEE OF HVMA AND AH. DR. BURNES AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO HVMA. HIKARU ISIHARA, MD IS A PHYSICIAN AT HVMA AND A TRUSTEE OF HVMA, AH AND ITS FOUNDATION. DR ISIHARA AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO HVMA. RICHARD LOPEZ, MD IS A PHYSICIAN AT HVMA AND THE CHIEF MEDICAL OFFCIER OF AH. DR LOPEZ AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO HVMA. EDWARD W. NALBAND, MD IS THE CHIEF MEDICAL OFFICER AT SOUTH SHORE MEDICAL CENTER, INC. AND A TRUSTEE OF AH AND ITS FOUNDATION. DR NALBAND AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO SSMC. JOSEPH NUNES IS THE EXECUTIVE ADMINISTRATOR OF SOUTHBORO MEDICAL GROUP AND THE CLERK OF AH. MR. NUNES AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO SMG. MARVIN C. OSTROVSKY, MD IS PRESIDENT AND CEO OF SOUTHBORO MEDICAL GROUP, INC. AND A TRUSTEE OF AH. DR. OSTROVSKY AVERAGED 47.50 HOURS PER WEEK IN ACTIVITIES RELATED TO SMG. SCOTT R. PERMAN, MD IS A PHYSICIAN AT DEDHAM MEDICAL ASSOCIATES, INC. AND A TRUSTEE OF AH. DR. PERMAN AVERAGED 50 HOURS PER WEEK IN ACTIVITIES RELATED TO DMA. THE FOLLOWING INDIVIDUALS ACT IN THE SAME CAPACITY FOR AH AND HARVARD VANGUARD MEDICAL ASSOCIATES, INC. AH REIMBURSES HVMA FOR THE VALUE OF THE SERVICES PROVIDED. H. EUGENE LINDSEY - PRESIDENT AND CEO (ALSO FOUNDATION TRUSTEE) THOMAS M. CONGORAN - CFO (ALSO TREASURER OF AH)
CHANGES IN NET ASSETS OR FUND BALANCES:
FORM 990, PART XI, LINE 5:
TRANSFERS TO 501(C)(3) AFFILIATE -741,432. TOTAL TO FORM 990, PART XI, LINE 5: -741,432.
FORM 990, PART XI, LINE 2A TJHOUGH 2D
THERE WAS NO CHANGE TO THE OVERSIGHT OF THE YEAR-END AUDIT OR THE SELECTION PROCESS OF THE INDEPENDENT ACCOUNTANT DURING THE TAX YEAR.
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.