Coastal One Health Partners

Required Public Disclosure for the ACO Pre-Participation Waiver of Coastal One Health Partners, LLC

The Secretary of U.S. Department of Health and Human Services has provided waivers of certain federal laws that may otherwise limit innovation by Accountable Care Organizations (“ACOs”) participating in or desiring to participate in the Medicare Shared Savings Program (“MSSP”).

To avail itself of the Pre-participation Waiver, Coastal One Health Partners, LLC (“Coastal One”) is obligated to publicly disclose certain arrangements undertaken with the good faith intention of developing an ACO that will participate in the MSSP in a particular year, which arrangements are described below.

Start-Up Costs

Cottage Health and Sansum Clinic, the sole members of Coastal One and each a participant or corporate parent of participants in the ACO, have been responsible for the organization and formation of the ACO and have incurred various costs in the development of the ACO, including but not limited to use of internal staff and other resources, consulting services, recruitment and contracting of ACO participants and providers, and legal services (collectively, the “Start Up Costs”), which costs may not be fully recovered from other ACO participants or may not be borne on a pro rata basis as between the sole members of Coastal One.