• Hudson MD Group, LLC (“Hudson”) is a New Jersey limited liability company operating as a large multi-specialty medical group practice comprised of primary care and specialist physicians practicing in New Jersey.
• Hudson was formed in 2019 in collaboration with Robert Wood Johnson Barnabas Health (“RWJBH”), the largest health care system in New Jersey. Hudson is managed by CityHealth Partners, a management service organization.
• Hudson enables its member physicians to meet the current challenges in the healthcare industry by joining a large multi-specialty medical practice to realize significant benefits while maintaining the desired level of autonomy.  Hudson members benefit from attractive payor contracts, shared profits from specialty and ancillary services in compliance with applicable laws and a broad range of administrative and technical services provided by CityHealth.

• Hudson is a single group practice operating under one taxpayer identification number (T.I.N), but consisting of separate “Care Centers,” each of which will constitute a separate “satellite” office location or group operated by physician members. All professional medical services provided by Hudson’s members will be  billed by Hudson under its T.I.N.
• All partners/owners of practices joining Hudson will become members of Hudson, each of whom will one Membership Unit.  All associate physicians will be non-members
• As a member of Hudson, he or she shall maintain their autonomy within each Care Center and be responsible for treatment of its patients and the management of its staff.
• The former practice entities will remain in existence in order to serve as a holding company for the assets utilized at the Care Center (offices, equipment, computers, furniture and leases).
• Each Member will receive monthly draw and a monthly true-up based upon his and her Care Center’s profits.  Each Care Center’s professional collections will be distributed to the Care Center, after subtracting its direct expenses and allocated share of the common overhead.

Access to Hudson’s attractive payor contracts

• Joint venture with Robert Wood Johnson Barnabas Health (RWJBH) enables Hudson members to access a broad range of payor contracts with attractive reimbursement terms
• Opportunity for shared savings from valued based payor contracts

Hudson’s group practice structure provides opportunity for profit sharing and referrals  in compliant with Stark and other laws

• Hudson projects primary care physician member’s participation in the specialty and ancillary services profit pools to be well in excess of $100,000 per member (physician owned lab, mobile diagnostic testing, chronic management services and other services).
• Specialists and ancillary services providers may achieve increase their scale and efficiency by accessing large pool of patients available through their affiliation with a larger group.

Access to technology and administrative and operational support

• Access to broad range of administrative support services such as medical billing, care management, referral management, group purchasing discounts on medical supplies and malpractice insurance.  Other centralized services will be introduced in the future including payroll processing, group workers compensation, health and business insurance as well other services.
• Access to operational and technology support services to improve efficiency and increase patient satisfaction.  Technology services includes well design E.H.R system with telemedicine, automated texting to patients and VIP Health mobile application to automate patient registration, scheduling and access to patient data

Increase market valuation and potential exit by joining Hudson

• Conversion of medical practice into Hudson’s care center provide opportunity to increased valuation multiple by becoming a part of Hudson’s business model and higher income

• Hudson will identify specialty and ancillary services (S&A services) that are needed for patient care and recruit specialist and ancillary service providers to generate revenue for its members
• Hudson will recruit specialists to provide the professional component while CityHealth will internally develop or recruit outside vendors who will provide the technical and administrative aspect of specialty and ancillary services.
• CityHealth has developed financial models for specialty and ancillary services and will generate target returns by using scale and efficiency
• Hudson will work with payers and IPAs to properly manage specialty and ancillary services to achieve the desired level of utilization and heath outcome.
• S&A services bonus pool will be established to share the profits with members
• To be compliant with Stark law, HDMG must distribute such DHS profits in a fashion that is not based upon DHS referrals and is based upon other appropriate objective factors, such as patient encounters, RVUs, etc
• For purposes of Stark compliance, the overall profits of each care center from DHS will be done in a “reasonable and verifiable” manner that is compliant with Stark and does not directly relate to volume or value of referrals of DHS.
• HDMG profits derived from DHS or DHS profits derived by any component of HDMG consisting of at least 5 physicians shall be shared and distributed in a Stark compliant fashion.
• To members who are included in Phase 1, Hudson will distribute 50% of the profits or approximately 10% of the net collections from S&A services.