Short-Term Disability. Summary Plan Description Executives and Physicians

Transcription

1 Short-Term Disability Summary Plan Description Executives and Physicians Amended, restated and effective January 2007

2 TABLE OF CONTENTS INTRODUCTION ELIGIBILITY AND PARTICIPATION SCHEDULE OF BENEFITS SHORT-TERM DISABILITY BENEFITS TERMINATION OF PLAN COVERAGE GENERAL EXCLUSIONS PROOF OF DISABILITY CLAIMS AND APPEALS PROCEDURE DEFINITIONS FREQUENTLY ASKED QUESTIONS GENERAL INFORMATION ERISA RIGHTS PLAN INFORMATION Short-Term Disability Plan 1

3 INTRODUCTION WHAT THIS DOCUMENT TELLS YOU SUGGESTIONS FOR USING THIS DOCUMENT Read through the Introduction and look at the Table of Contents that immediately precedes it. If you don t understand a term, look it up in the Definitions chapter, which explains many technical, medical and legal terms that appear in the text. This booklet contains a Frequently Asked Question section on page 11 of this booklet. This is a handy resource for general information about the plan. This Summary Plan Description (SPD), describes the Short-Term Disability Plan of Scottsdale Healthcare, effective January 1, Except for provisions that specifically indicate other effective dates, the SPD replaces all other Summary Plan Descriptions previously provided to you. This booklet will help you understand and use the benefits provided by Scottsdale Healthcare, and give you an understanding of the coverages provided, the procedures to follow in submitting claims, and your responsibilities to provide necessary information to the Disability Management Dept. Be sure to read the Exclusions and Definitions chapters. Remember, not all disabilities are covered by the Plan. All provisions of this SPD contain important information. If you have any questions about your coverage or your obligations under the terms of the Plan, be sure to seek help or information. A Frequently Asked Questions section appears on page 11 of this booklet. Scottsdale Healthcare is committed to maintaining this coverage for eligible staff members to provide income protection should you become disabled; however because future conditions cannot be predicted, the Plan may be amended from time to time. As the plan is amended you will be sent information explaining the changes. If those later notices describe a benefit or procedure that is different from what is described here, you should rely on the later information. Be sure to keep this booklet, along with notices of any Plan changes, in a safe and convenient place where you and your family can find and refer to them. This Plan is established under and subject to the federal law, Employee Retirement Income Security Act of 1974, as amended, commonly known as ERISA. The welfare benefits of the Plan are self-funded and self-administered with contributions from Scottsdale Healthcare. This means that Scottsdale Healthcare pays any eligible claims. Scottsdale Healthcare reserves the right to perform case management in order to coordinate cost-effective options for health care delivery, treatment and return to work. Coverage under this Plan is only for non-occupational accidental injuries and illnesses. Coverage for occupational injuries and illnesses will be determined under Scottsdale Healthcare s workers compensation program. Please note that this Plan runs concurrently with the Family and Medical Leave Act (FMLA). FMLA is defined as job protection for up to 12 weeks while on a leave of absence. Short-term disability refers to how or if you will be paid while your job is protected under the FMLA. In the event of a misstatement of any fact affecting your coverage under the Plan, the true facts will be used to determine benefits coverage. 2 Introduction Short-Term Disability Plan

4 ELIGIBILITY AND PARTICIPATION ELIGIBLE STATUS All Executives and Employed Physicians (Physicians that are being paid through Scottsdale Healthcare s payroll as a staff member) are eligible on their first day of regular full-time employment. Actively at Work Requirement If you are not Actively at Work on the day your coverage under this Plan is to begin, you will not be covered until the day you return to active work. Your return to active work must be to an eligible status and within 30 days of the time you stopped working. Actively at work means that you are performing all the regular duties of your job for Scottsdale Healthcare, at the location where you normally work. You will still be considered actively at work if you are absent from work due to vacation, holiday, or a regular day off, as long as you were actively at work on your last regularly scheduled workday before the absence. Temporary Absences: If a staff member who has satisfied the service requirement is absent from work due to a reduced staffing leave of absence, eligibility for benefits will continue for up to 60 days. Eligibility for Benefits will cease on the 61st day and will be reinstated upon return to active work in an eligible status. SCHEDULE OF BENEFITS FOR EXECUTIVES AND EMPLOYED PHYSICIANS Duration of Benefits and Percent of Salary Reimbursement Tenured 100% Plan Number of Weeks at 100% of Basic Weekly Salary From date of hire 12 weeks Eligibility Short-Term Disability Plan 3

5 SHORT-TERM DISABILITY BENEFITS The Disability must start while you are covered under the Plan and you must be under the regular care of a physician who certifies that you are disabled. The term physician means a person (other than you, your spouse, child, brother, sister or parent, or the child, brother, sister or parent of your spouse) who is properly licensed as a M.D., D.O., D.P.M., D.D.S., or D.M.D., and recognized by the state in which treatment is provided, and who is qualified to treat the condition or injury for which you are applying for benefits. Benefits will not be covered while your are under the care of a chiropractor. When Disability Benefits Begin Short-term disability Benefits provide income protection to you if you are a covered staff member who, as a result of non-occupational injury or illness, become disabled and are unable to work in your job at Scottsdale Healthcare Corp. The disability must start while you are covered under the Plan and you must be under the regular care of a physician who certifies that you are disabled. You will receive benefits under this Plan starting on the eighth consecutive day of each period of disability or on the first day of surgery or in-patient hospitalization. Benefits will be paid to you biweekly in your regular pay cycle during any period that you remain disabled. Recurrence of Disability If you become disabled, return to active work, and become disabled again due to the same or a related cause, your disability will be considered a continuation of the previous period of disability, as long as you return to active work for less than fourteen days. If your disability is unrelated to the previous disability, or if you have returned to active work for more than fourteen days, the disability will be considered the start of a new period of disability. In this case, benefits will not begin until the eighth consecutive day of the new period of disability or on the first day of surgery or in-patient hospitalization. How a Disability is Determined The Disability Management Dept. determines if you are disabled because of illness or injury where you are prevented from wholly and continuously performing the essential functions of your job, even with reasonable accommodation. Furthermore, you are not considered disabled unless you are under the regular care and treatment of a licensed physician (see the definition of physician on page 10), who is practicing within the scope of his/her license during the entire period of disability. Medical certification from your physician is required and reviewed by the Disability Management Dept. How Much the Plan Will Pay The amount of your benefit will be the applicable percentage of your basic weekly salary as shown in the schedule of benefits on page 3. Basic weekly salary means your hourly pay just prior to the date your disability begins multiplied by the number of hours you are regularly scheduled to work per week. For more information see the definition of basic weekly salary in the definitions section of page 10. Payment of Short-Term Disability Benefits will stop on: 1. The date you are no longer Disabled; or 2. The date you return to work in any gainful occupation; or 3. The date you exhaust the maximum number of weeks for which benefits will be paid; or 4. The date sufficient medical evidence expires; or 5. The date of your death. 4 Each procedure has a guideline for the number of recovery days. These guidelines are used to determine how long your short-term disability benefits will be paid. Additional medical information may be requested from your physician to substantiate any additional time requested. Benefits will cease to be paid if sufficient medical information is not received. If diagnosed with cancer, the Plan will pay benefits for time missed for chemo or radiation treatment within six months of surgery or diagnosis. Maximum Benefit The maximum number of weeks for which benefits will be paid for all periods of disability that begin in the same calendar year is shown in the schedule of benefits under total weeks. Your number of total weeks available is renewed each calendar year from January 1 through December 31. However, if you were disabled and received benefits during the previous calendar year, the total weeks available will not be renewed unless you return to active work in an eligible status for at least 30 consecutive days following the end of your last absence from work due to disability. When Benefit Payments Stop Payment of Short-Term Disability Benefits will stop on: Short-Term Disability Benefits Short-Term Disability Plan The date you are no longer disabled; or The date you return to work in any gainful occupation; or The date you exhaust the maximum number of weeks for which benefits will be paid; or The date sufficient medical evidence expires; or The date of your death.

6 TERMINATION OF PLAN COVERAGE You will cease to be covered under this Plan on the earliest of the following dates: The date you cease to be in an eligible status; The date your employment with Scottsdale Healthcare Corp. ends; or The date Scottsdale Healthcare Corp. discontinues the Plan. GENERAL EXCLUSIONS Short-term disability benefits will not be provided for: That portion of any period of disability during which you: are not under the direct care of a legally qualified Physician; or engage in any work for remuneration or profit; or are incarcerated. Any period of disability caused by: Any elective cosmetic procedures; or Intentionally self-inflected Injury of any kind; or Accidental bodily injury which arises out of or occurs in the course of any occupation or employment for wage or profit; or Illness or injury for which you are entitled to any benefits under any Workers Compensation Act or similar legislation; or Commission of an assault or felony by you. Termination of Coverage Short-Term Disability Plan 5

7 PROOF OF DISABILITY An application for Disability Benefits and proof of Disability must be received by the Disability Management Dept. before benefits can be paid. You can find the forms you need at mylink2hr.com or see your supervisor. An application for disability benefits, an authorization for release of medical information, and proof of disability medical certification must be received by the Disability Management Dept. before benefits can be paid. Proof of disability may be satisfied by evidence of disability from your physician. Such evidence should include subjective symptoms and objective findings of your health and disability that prevents you from performing the essential functions of your job. Proof of disability may consist of records from the physician, written reports, x-rays and any other medical records, as well as evidence that you continue to be under the appropriate care and treatment of a physician. In the absence of such proof, the Disability Management Dept. may elect to suspend benefits until such proof is received. Your disability must be supported by current medical evidence. You must be under the continuous care of a qualified physician, with a course of treatment that is appropriate for your condition. If your physician cannot substantiate your disability by objective findings, you may be required to see a physician selected by the Disability Management Dept. for an independent evaluation. Failure to cooperate with such requests may result in an interruption in benefits. Subsequent proof of continuing disability will be requested from your physician at reasonable intervals determined by the extent and severity of your injury or illness. It is your responsibility to provide medical evidence of continuing disability. Right to Examine The Disability Management Dept. reserves the right to request an examination by an independent physician, vocational expert or other health care practitioner as often as is reasonably necessary, if, in its judgment, the information submitted is not sufficient to support your claim of disability. If you fail to comply with such a request, the result may be an interruption in or suspension of benefits. Benefits may also be suspended if the results of the independent examination determine that you are not disabled under the definition of the Plan. 6 Proof of Disability Short-Term Disability Plan

8 CLAIMS AND APPEALS PROCEDURE Disability Benefit Claims and Appeal Procedures This section explains how the Disability Management Dept. makes claim determinations and reviews denied claims for group disability benefits. The Disability Management Dept. takes steps to assure that Plan provisions are applied consistently with respect to you and all other Plan participants. The claims process outlined in this section is designed to provide you a full, fair and fast review of your claim. This section also discusses the process for certain appealed claims, and how the Disability Management Dept. may consult with a health care professional who can review an adverse benefit determination that is based in whole or in part on a medical judgment (such as a determination that a service is not medically necessary, is experimental or investigational). Authorized Representative You may authorize a representative to act on your behalf to file a claim for short-term disability benefits. An authorized representative includes the staff member s health care provider, legal spouse, dependent child age 18 or over, parents or adult siblings, grandparent, court ordered representative (such as an individual with durable power of attorney or legal guardian), or other adult over the age of 18. You must provide a written statement indicating that you have designated an individual as an authorized representative along with their name, address and phone number. If you are unable to provide a written statement, written proof such as a notarized power of attorney for health care purposes, or court order of guardianship/conservatorship, that specifies the proposed individual may act as your authorized representative. Once an authorized representative is named, the Disability Management Dept. will route all future claims and appeals-related correspondence to the authorized representative and not the staff member until the designation is revoked or as mandated by a court order. You may revoke a designated authorized representative by notifying the Disability Management Dept. in writing. Applying for Benefits The Disability Management Dept. reserves the right to withhold information from a person who claims to be the authorized representative if there is suspicion about their qualifications to act as your authorized representative. Filing an Initial Disability Claim If you become disabled from a non-occupational Illness or Injury, you should apply (file a claim) for disability benefits no later than 30 calendar days after the date on which the illness or injury began, according to the following steps: Obtain claim forms from your supervisor or the Disability Management Dept.. Complete the forms and return them to the Disability Management Dept. at their address listed in the ERISA Plan Information on page 14. You must provide proof of disability to the Disability Management Dept. no later than 90 calendar days after the end of the period for which disability benefits are payable. If you do not provide proof of disability within the time specified, you can still claim full benefits if you can show that the proof was furnished as soon as reasonably possible. You will be notified if you did not follow claim filing guidelines or if you need to provide additional medical information or records to prove a disability claim. You will be allowed 45 days to provide this additional information. The Disability Management Dept. reserves the right to have a physician or vocational expert examine you (at the Plan s expense) as often as is reasonable while a claim for benefits is pending or payable. If an exam is scheduled and you fail to show, the Plan reserves the right to withhold the cost of the charges for a no-show appointment from your benefits and/or proceed with your termination from the Plan. Claims and Appeals Procedure Short-Term Disability Plan 7

9 The Disability Management Dept. will determine if you are eligible to receive disability benefits under this Plan. They will review your disability claim and notify you or your authorized representative either in writing or electronically within a reasonable period but not later than 45 calendar days from the date the Disability Management Dept. receives the claim for disability benefits. This 45-day period may be extended by the Disability Management Dept. for up to 30 additional calendar days, provided they determine that an extension is necessary and they notify you or your authorized representative either in writing or electronically prior to the expiration of the initial 45-day period. The notice will specify if additional time is needed to process the claim, or if there are special circumstances for an extension, and the date they expect to render a determination. If prior to the end of this first 30 calendar day extension the Disability Management Dept. determines that, due to matters beyond their control a decision cannot be rendered within the first 30-day extension period, it may be extended for up to an additional 30 calendar days provided that you are notified prior to the end of the first 30-day extension period of the circumstances requiring the second extension and the date they expect to render a decision. This notice of extension will explain your eligibility for benefits, the unresolved issues that prevent a decision and additional information needed to resolve those issues. If you are given an extension because you are required to provide additional information, the time period ends on the earlier of the date on which you respond or 60 days after the Notice was sent to you. Disability benefits begin when your claim has been approved and it is determined that Plan Disability exclusions do not apply to your claim. You will be notified in writing or electronically and benefit payments will begin. If your claim for Disability Benefits is denied If your claim for Disability Benefits is denied, a notice of an adverse Benefit determination will be provided to you in writing or electronically. This notice will: give the specific reason(s) for the denial; reference the specific Plan provision(s) on which the denial is based; and provide an explanation of the appeal procedure along with time limits. In the event of an adverse benefit determination after the appeal is completed staff members have the right to bring suit under ERISA Section 502(a). If the denial was based on an internal rule, guideline, protocol or similar criterion a copy of the rule, guideline, protocol or criteria will be provided free of charge upon request. If the denial was based on a medical judgment (medical necessity, experimental or investigational), a copy of the explanation regarding the scientific or clinical judgment for the denial will be provided free of charge upon request. If the claim is denied and you disagree with that decision, you or your authorized representative may ask for an appeal review. You have 180 calendar days following receipt of a denial to request an appeal review. The Disability Management Dept. will not accept appeals filed after this 180-calendar day period. Appeal of a Disability Claim Appeals must be in writing to the Disability Management Dept. at the address listed on page 14. You will be provided with: the opportunity, upon request and without charge, reasonable access to, and copies of, all relevant documents, records, and other information relevant to your claim for Benefits; 8 the opportunity to submit written comments, documents, records and other information relating to the claim for benefits; Claims and Appeals Procedure Short-Term Disability Plan

10 a full and fair review that takes into account all comments, documents, records, and other information submitted, without regard to whether such information was submitted or considered in the initial benefit determination; and a review that does not reflect the initial adverse benefit determination and that is conducted by an impartial representative of the Plan who is neither the individual who made the adverse Benefit determination that is the subject of the appeal, nor the subordinate of such individual. In deciding an appeal of any adverse benefit determination that is based in whole or in part on a medical judgment, including determinations with regard to whether a particular treatment, drug, or other item is experimental, investigational, or not medically necessary or appropriate, representative of the Plan shall: consult with a health care professional who has appropriate training and experience in the field of medicine involved in the medical judgment, and is neither an individual who was consulted in connection with the adverse benefit determination that is the subject of the appeal, nor the subordinate of any such individual; and provide the identification of medical or vocational experts whose advice was obtained on behalf of the Disability Management Dept. in connection with staff member s adverse benefit determination, without regard to whether the advice was relied upon in making the benefit determination. Decision on Review of an Appeal The Disability Management Dept. will make a determination on the appeal no later than 45 calendar days from receipt of the appeal. The Plan may obtain a 45-day extension if they notify you of the reason for an extension before expiration of the initial 45-day period. If an extension is given because you are required to provide additional information, the extension will end the day you respond or 60 days after the notice of extension was sent. A notice of the appeal determination will be provided to you that includes: the specific reason(s) for the adverse appeal review decision; reference to the specific Plan provision(s) on which the denial is based; a statement that you or your authorized representative are entitled to receive free access to and copies of documents relevant to the claim, upon request; a statement that you have the right to bring civil action under ERISA Section 502(a) following the appeal; a statement of the voluntary Plan appeal procedures, (and your right to obtain information about such procedures), if any; if the denial was based on an internal rule, guideline, protocol or similar criterion a copy of the rule, guideline, protocol or criteria will be provided free of charge to the employee, upon request; if the denial was based on a medical judgment (medical necessity, experimental or investigational), a statement will be provided that an explanation regarding the scientific or clinical judgment for the denial will be provided free of charge, upon request; and a statement explaining how You and your Plan may have other voluntary dispute resolution options such as mediation. One way to find out what may be available is to contact your local U. S. Department of Labor Office and your State insurance regulatory agency. Limitation on When a Lawsuit May Be Started You may not start a lawsuit to obtain benefits before you have requested an appeal review and a final decision has been reached on the appeal review, or until the appropriate time frame described above has elapsed since you filed a request for review and you have not received a final decision or notice that an extension will be necessary to reach a final decision. No lawsuit may be started more than 3 years after the start of the disability. Claims and Appeals Procedure Short-Term Disability Plan 9

11 DEFINITIONS 10 ACTIVE WORK/ACTIVELY AT WORK means you are performing all the regular duties of your job for Scottsdale Healthcare Corp. either at Scottsdale Healthcare Corp. s usual place of business or at a location to which Scottsdale Healthcare Corp. s business requires you to travel. You will be considered actively at work on any day you are absent from work due to vacation, a holiday or a regular day off provided you were actively at work on your last regularly scheduled work day before such absence. ADVERSE BENEFIT DETERMINATION means a denial, or reduction, of a benefit that is based on a determination of a person s eligibility for Plan benefits. AUTHORIZED REPRESENTATIVE means the individual who can act on behalf of an staff member (because of the staff member s death, disability or other reason acceptable to the Plan Administrator) to file a claim. An authorized representative includes the staff member s health care provider, legal spouse, dependent child age 18 or over, parents or adult siblings, grandparent, court ordered representative (such as an individual with durable power of attorney or legal guardian), or other adult over the age of 18. BASIC WEEKLY SALARY means your hourly rate of earnings from the employer in effect just prior to the date disability begins, multiplied by the number of hours you are regularly scheduled to work per week. Your hourly rate of earnings will include shift differential, but only if you are regularly assigned to work either the second or third shift; it will not include shift differential if you only occasionally work second or third shift. The amount of shift differential will be based on your assigned shift as noted on your Personal Action Form (PA). The assigned shift reflects where the majority of hours are worked. Basic weekly salary does not include commissions, bonuses, overtime pay and other extra compensation. CLAIM means a request for a Plan benefit made by a staff member or the staff member s authorized representative in accordance with the Plan s reasonable claims procedures. DISABILITY/DISABLED means, as determined by the Plan Administrator or its designee, that because of illness or injury you are prevented from wholly and continuously performing the essential functions of your job, even with reasonable accommodation. See also the definition of essential functions and reasonable accommodation. Furthermore, you are not considered disabled unless you are under the regular care and treatment of a licensed physician, who is practicing within the scope of his/her license during the entire period of disability. DISABILITY BENEFITS or BENEFITS means money that is paid as a bi-weekly benefit when your claim for disability benefits has been approved. DISABILITY MANAGEMENT DEPT. is responsible for the processing of claims and payment of benefits, administration, accounting, reporting and other services under contract to Scottsdale Healthcare Corp. EMPLOYER means Scottsdale Healthcare Corp. and includes any division, subsidiary, or affiliated company of Scottsdale Healthcare Corp. named in the Plan. ESSENTIAL FUNCTIONS means the fundamental job duties of the position you hold. FIDUCIARY means a person or an organization, entrusted with the responsibility of another party and who is expected to act in their best interest. ILLNESS means sickness, disease, or other medical conditions including pregnancy. INJURY means bodily injury resulting directly from an accident and independently of all other causes. MANAGEMENT STAFF, DEPARTMENT MANAGER includes staff members employed by Scottsdale Healthcare, Inc. in a managerial capacity on a salaried basis, including Directors, AVPs and Residents. PHYSICIAN means a person (other than you, your spouse, child, brother, sister or parent, or the child, brother, sister or parent of your spouse) who is properly licensed as a M.D., D.O., D.P.M., D.D.S., D.M.D. or Psychiatrist, and recognized by the state in which treatment is provided, and who is qualified to treat the condition or injury for which you are applying for benefits. Chiropractor and Acupunturists are not covered under this plan. REASONABLE ACCOMMODATION means making adjustments or modifications in the work, job application process, work environment, job structure, equipment, employment practices or the way that job duties are performed so that an individual can perform the essential functions of the job. REGULAR CARE means you personally visit a physician as frequently as is medically required according to generally accepted standards to manage and treat your disabling condition(s) and you are receiving the most appropriate treatment and care which conforms with generally accepted medical standards by a physician whose specialty or experience is the most appropriate for your disabling condition. STAFF MEMBER means anyone employed by Scottsdale Healthcare Corp. YOU and YOUR means you, the staff member. Claims and Appeals Procedure Short-Term Disability Plan

12 FREQUENTLY ASKED QUESTIONS When do I need to file a claim? You must give the Disability Management Dept. proof of your claim before your disability benefit can be considered for payment. You must also provide proof of continued disability and regular treatment by a physician. What constitutes proof of my claim? In order for a claim to be processed, the Disability Management Dept. must receive your application for benefits, as well as sufficient medical evidence in support of your claim. Such evidence may consist of records from your physician, narrative reports, x-rays and any other medical records, as well as evidence that you continue to be under the appropriate care and treatment of a physician. In the absence of such proof, the Disability Management Dept. may elect to suspend benefits until such proof is received. If your claim is denied, review the Claims and Appeals Procedure section on page 7 for a description of the appeals process under this Plan. Your disability must be supported by current medical evidence. You must be under the regular care of a qualified physician, with a course of treatment that is appropriate for your condition. If your physician cannot substantiate your disability by objective findings, you may be required to see a physician selected by the Disability Management Dept. for an independent evaluation. Failure to cooperate with such requests may result in an interruption in benefits. When are claims paid? When the Disability Management Dept. receives satisfactory proof of the claim, and your claim for disability benefits is approved, benefits payable under the Plan will be paid bi-weekly during any period that you remain disabled under the terms of the Plan. How are benefits paid? Benefits are payable directly to you from the payroll department the same way that you receive your regular paycheck, in the form of a check or direct deposit. My doctor released me to light duty and light hours, but my department can t accommodate these restrictions. What should I do? If your department cannot accommodate restrictions prescribed by your doctor, contact the Disability Management Dept. and light duty in another department may be found for you. You will be paid your regular hourly rate for hours worked and supplemented with short-term disability pay for the hours not worked. Frequently Asked Questions Short-Term Disability Plan 11

13 GENERAL INFORMATION FUNDING The Plan is funded through the general revenues of Scottsdale Healthcare Corp., which pays the full cost of the Plan. Staff members are not required to contribute to the Plan. PLAN ADMINISTRATOR The Vice President, Human Resources, is the named fiduciary and the Plan Administrator of the Plan, with the following authority and responsibilities: to interpret the Plan s provisions and determine disability as applicable thereunder; to comply with all reporting and disclosure requirements with respect to the Plan; to maintain records necessary for administration of the Plan; to require any person to furnish such information as may be requested for the purpose of the proper administration of the Plan as a condition to receiving any benefit under the Plan; to prescribe the use of such forms as is deemed necessary for the administration of the Plan; to decide questions concerning the eligibility of any employee to participate in the Plan; to determine the amount of benefits which shall be payable in accordance with the provisions of the Plan and to authorize payment of such Benefits; in his/her discretion, to delegate any of his/her responsibilities to other persons designated by him/her. The Plan s records are kept on a calendar year basis. Amendment and Termination of the Plan The Plan Administrator may at any time, without giving prior notice make changes or modify the Plan. The Plan has been established with the expectation that it will be continued indefinitely, but Scottsdale Healthcare Corp. has no obligation to maintain the Plan for any given time may, without prior notice discontinue or terminate the Plan at any time. Governing Law The provisions of the Plan shall be administered and governed under the laws of the State of Arizona unless those laws have been superseded by the Employee Retirement Income Security Act of 1974 (ERISA). General Provisions The Plan does not constitute a contract between you and Scottsdale Healthcare Corp. or give you any right to be retained as an employee of Scottsdale Healthcare Corp., to affect in any way the right of Scottsdale Healthcare Corp. to discharge you at any time, or to affect the right of Scottsdale Healthcare Corp. to treat you without regard to the effect which such treatment might have upon the employee with respect to his/her participation in the Plan. Except as may be prohibited by law, no right or interest of any employee in the Plan and no distribution or payment under the Plan to any employee shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or charge and any attempt to accomplish the same shall be void. No such right, interest, benefit, distribution or payment shall be in any way liable for or subject to the debts, contracts, liabilities, engagements or torts of any person entitled to such right, interest, benefit, distribution or payment. 12 General Information Short-Term Disability Plan If any employee is adjudicated bankrupt or purports to anticipate, alienate, sell, transfer, assign, pledge, encumber or charge any such right, interest, benefit, distribution or payment, voluntarily or involuntarily, the Plan Administrator, in his/her sole and complete discretion, may hold or apply or cause to be held or applied such right, interest, benefit, distribution or payment or any part thereof to or for the benefit of such employee in such manner as the Plan Administrator shall direct.

14 If the Plan Administrator determines that any person entitled to benefits under the Plan is incompetent or is unable to care for his/her affairs by reason of physical or mental disability, the Plan Administrator may cause all payments thereafter becoming due to such person to be made to any other person for his/her benefit, without responsibility to follow the application of amounts so paid. Payments made pursuant to this provision shall completely discharge Scottsdale Healthcare Corp., its subsidiaries and affiliates, the Plan Administrator and the named fiduciary with respect to such payments. The Plan is not in lieu of, and does not affect any requirement for coverage by, Workers Compensation Insurance. ERISA RIGHTS As a participant in the Scottsdale Healthcare Corp. Short-Term Disability Plan, you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974, (ERISA). ERISA provides that all Plan participants shall be entitled to: Receive Information About Your Plan and Benefits You may examine, without charge, at the Plan Administrator s office, Scottsdale Healthcare Corp. at 3621 N. Wells Fargo Ave., Scottsdale, Arizona 85251, all documents governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500 Series) filed by the Plan with the U.S. Department of Labor and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. You may obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the latest annual report (Form 5500 Series) and updated Summary Plan Description. The Plan Administrator may make a reasonable charge for the copies. You will receive a summary of the Plan s annual financial report. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report. Prudent Actions by Plan Fiduciaries In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the employee benefit Plan. The people who operate your Plan, called fiduciaries of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union, or any other person may fire you or otherwise discriminate against you in any way to prevent you from obtaining a welfare benefit or exercising your rights under ERISA. Enforce Your Rights If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules. Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day until you receive the materials, unless the materials were not sent because of reasons beyond the control of the administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court. If it should happen that Plan fiduciaries misuse the Plan s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U. S. Department of Labor, or you may file suit in a Federal court. The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it finds your claim is frivolous. Assistance with Your Questions 1. If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in obtaining documents from the Plan Administrator, you should contact the nearest office of the Pension and Welfare Benefits Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and Inquiries, Pension and Welfare Benefits Administration, U.S. Department of Labor, 200 Constitution Avenue, N. W., Washington, D.C You may obtain certain publications about your rights and responsibilities under ERISA by calling the publications hotline of the Pension and Welfare Benefits Administration. ERISA Rights Short-Term Disability Plan 13

15 PLAN INFORMATION Name of Plan: Scottsdale Healthcare Corp. Short-Term Disability Plan Plan Number: 501 Name and Address of Employer: Scottsdale Healthcare Corp E. Osborn Road Scottsdale, Arizona Who Pays for the Plan: The cost of this Plan is paid entirely by Scottsdale Healthcare Corp. Employer s tax identification number: PLAN YEAR Initial Plan Year: December 24, 1995 through December 23, 1996 Short Plan Year: December 24, 1996 through December 31, 1996 Subsequent Plan Years: January 1 through December 31 Plan Administrator: Vice President, Human Resources Scottsdale Healthcare Corp N. Wells Fargo Ave. Scottsdale, Arizona Agent for Service of Legal Process: Plan Administrator as stated above. Disability Management Dept.: Scottsdale Healthcare Disability Management Scottsdale Healthcare Corp E. Mountain View, Suite 100 Scottsdale, Arizona Plan Information Short-Term Disability Plan

16 NOTES Notes Short-Term Disability Plan 15

17 Employee Benefits 9201 E. Mountain View Rd., Suite 100 Scottsdale, AZ shc.org (1/07)