MVMA Physicians’ Organization, LLC

2011 Annual Report

Introduction and Report of 2011 Material Events

MVMA Physicians’ Organization, LLC (the “Company”) was formed on February 25, 2000 in response to the development of new lines of business by MVP Health Care and its affiliates (“MVP”). In January 2001, the Company sent a Confidential Memorandum to the 2,078 physicians credentialed as participating physicians in good standing in the independent practice association operated by Mohawk Valley Medical Associates, Inc. (“MVMA”) and practicing in New York State as of December 7, 2000. The Memorandum was a for-profit offering to purchase one membership interest at $150 as an initial capital contribution, with agreement to be subject to two additional capital contributions of $100 each, payable if and when called by the Board of Managers.

The offering period closed as of July 31, 2001, with a network comprised of 821 physicians, or approximately 40% of those physicians mailed the offering document. The Company has not offered a membership interest to anyone since that date. To address MVP’s needs for coverage, the Company’s Board of Managers decided to expand the network by inviting physicians to participate in the network as non-members. The Company continues to offer participation as a non-member to existing MVMA physicians and newly credentialed physicians. The network of both members and participants has remained stable over the past year, with new physicians offsetting departures. As of December 31, 2011, the network is comprised of a total of 2538 physicians.

To compensate the Company for provision of the network, MVP agreed to pay the Company an access fee of $2.25 per month for each person (but not including his or her eligible dependents) enrolled in a plan offered and administered by MVP and covered by the Company’s physician network. The access fee was adjusted in 2010 in response to MVP membership shifts and as of October 1, 2010 was paid depending upon certain membership thresholds. Effective September 1, 2011, the access fee was adjusted to $1.75 per Subscriber per month. This change resulted in monthly revenue from MVP of approximately $50,500. Year 2011 expenses included accounting fees, maintenance of the network database, generation of postage and printing associated with dividend mailings, meeting stipends, legal fees, insurance and payment of taxes. One dividend payment of $525 was made to the members in November.

Officers and Managers

During 2011, a total of 29 physicians were inactivated. Fourteen (14) retired from practice, thirteen (13) relocated outside the service area, one (1) resigned due to issues with reimbursement, and one (1) was terminated by MVP. Therefore, the Company purchased their membership interests in accordance with Section 8.4 of the Operating Agreement. The repurchase price was set at $75 in November 2001 and was not changed throughout 2011. As of December 31, 2011 there are 638 members.

The Board of Managers approved the payment of a $200 stipend for Board of Managers and Executive Committee meetings attended, effective October 20, 2008. There were three Board meetings and one Executive Committee meeting held in 2011. The following is a list of the current Officers and Managers:

Name and Business Address Position Professional Background

Christopher Buff, DO Member/Manager Physician in private practice

112 Charlton Road

Ballston Lake, NY 12019

Alan Conlon, MD Member/Manager Physician in private practice

976 Balltown Road

Schenectady, NY 12309

Richard D’Ascoli, MD Member/Manager Physician in private practice

1028 Valerie Drive

Schenectady, NY 12309

Bradley Ford, MD Member/Manager Physician in private practice

3723 Carman Road

Schenectady, NY 12303

Richard Gullott, MD Member/Manager Physician in private practice

83 Baldwin Road

Scotia, NY 12302

Robert Hughes, MD Member/Manager Physician in private practice

2 Mountainview Ledge Drive

Gansevoort, NY 12831

Rajinder Jain, MD Member/Manager Physician in private practice

1304 Park Boulevard, Bldg. #1

Troy, NY 12180

Denis Manor, MD Member/Manager Physician in private practice

2546 Balltown Road, Suite 300

Schenectady, NY 12309

Gerard McGrinder, MD Member/Manager Physician in private practice

1047 Lamplighter Road

Niskayuna, NY 12309

Arthur Ostrov, MD Member/Manager Physician in private practice

55 Sherwood Trail

Saratoga Springs, NY 12866

David M. Phelps, MD Member Physician in private practice

625 State Street Medical Director

Schenectady, NY 12305

Peter Rienzi, MD Vice Chairman & Physician in private practice

2546 Balltown Rd, Suite 200 Treasurer

Schenectady, NY 12309 Member/Manager

Lawrence Routenberg, MD Member/Manager Physician in private practice

1201 Nott Street, Suite 106

Schenectady, NY 12308

Fouad Sattar, MD Member/Manager Physician in private practice

700 McClellan Street, Suite E

Schenectady, NY 12304

Mitchell Singer, MD Member/Manager Physician in private practice

1210 Union Street

Schenectady, NY 12309

Louis Snitkoff, MD Member/Manager Physician in private practice

2546 Balltown Road, Suite 200

Schenectady, NY 12309-1081

Richard B. Toll, MD Chairman/President Physician in private practice

1201 Nott Street, Suite 102 Member/Manager

Schenectady, NY 12308

Robert Warner, Jr., MD Member/Manager Physician in private practice

242 East State Street Ext

Gloversville, NY 12078

Deborah Zadrozny, RN Secretary Executive Director

625 State Street

Schenectady, NY 12305

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