2024-10-29T09:01:56-05:00 2023-12-31 991856619 GRANT THORNTON ADVISORS LLC 53 STATE STREET SUITE 1600 BOSTON MA 02109 990 2023-01-01 390807235 VERSITI WISCONSIN INC VERS 4149335000 PO BOX 2178 MILWAUKEE WI 532012178 CHRIS MISKEL PRESIDENT & CEO 4149335000 2024-10-28 1 0 ERIN COUTURE P01390592 6177237900 2023 2024-10-15 13:58:12Z CHRIS MISKEL PO BOX 2178 MILWAUKEE WI 532012178 239911536 0 X WWW.VERSITI.ORG X 1947 WI (SEE SCHEDULE O) 19 18 1283 292 862156 4273 31822899 35533265 183233449 195099800 5541393 3894142 221475 677285 220819216 235204492 4178503 3971528 0 0 83558410 99706668 0 0 0 119607887 127290428 207344800 230968624 13474416 4235868 141863484 188812448 26736333 68196230 115127151 120616218 X VERSITI WISCONSIN, INC. (VERSITI) IS A BLOOD HEALTH INNOVATOR WHICH ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. 0 0 48514048 114000 54436294 VERSITI OPERATES THE COMPREHENSIVE CENTER FOR BLEEDING DISORDERS (CCBD), UNDER A FEDERAL SUBAWARD AGREEMENT OF THE SOCIAL SECURITY ACT. CCBD PROVIDES CRITICAL SERVICES TO BLEEDING AND CLOTTING DISORDER PATIENTS AND THEIR FAMILIES. AS A COVERED ENTITY UNDER THE FEDERAL 340B DRUG DISCOUNT PROGRAM, VERSITI IS ELIGIBLE TO ACCESS CERTAIN SPECIALTY PHARMACEUTICALS AT DISCOUNTED PRICING. PHARMACEUTICAL NET INCOME IS PROGRAM INCOME AND FUNDS ARE RESTRICTED TO ACTIVITIES AND EXPENDITURES THAT FURTHER ELIGIBLE PROJECTS AND PROGRAM OBJECTIVES; INCLUDING PATIENT CARE, EDUCATION, SUPPORT SERVICES, APPROVED GRANT RESEARCH AND OTHER COSTS. VERSITI PROVIDES THESE SPECIALTY PHARMACY PRODUCTS TO HOME CARE PATIENTS AND HOSPITAL SYSTEMS. DURING 2023, 14,889 VIALS OF SPECIALTY PHARMACY PRODUCTS WERE PROVIDED. 43276164 33700 52112157 VERSITI RECRUITS VOLUNTEER BLOOD DONORS, COLLECTS, PROCESSES AND DISTRIBUTES BLOOD AND BLOOD COMPONENTS TO PROVIDE A SAFE AND RELIABLE SUPPLY OF BLOOD FOR HOSPITALS AND OTHER BLOOD CENTERS SERVED. DURING 2023, 149,369 BLOOD UNITS WERE COLLECTED. 36936818 3817200 0 VERSITI RESEARCH ADVANCES THE SCIENTIFIC AND MEDICAL UNDERSTANDING OF BLOOD BIOLOGY AND BLOOD DISEASE TO IMPROVE HEALTH. DURING 2023, VERSITI HAD 34 INVESTIGATORS. 69522551 6628 88564383 A. VERSITI WISCONSIN, INC. (VERSITI) PROVIDES CLINICAL DIAGNOSTIC TESTING SERVICES TO HOSPITALS, PHYSICIAN OFFICES AND OTHER REFERENCE LABORATORIES. DURING 2023, 140,128 TESTS WERE PERFORMED.B. VERSITI ORGAN AND TISSUE DONATION COMBINES PROCUREMENT SERVICES AND EDUCATION TO ENHANCE THE LIVES OF PATIENTS AND PROVIDES GUIDANCE TO THE FAMILIES OF POTENTIAL DONORS. DURING 2023, 354 ORGANS WERE TRANSPLANTED AND 522 MUSKULOSKELETAL DONORS WERE SEEN.C. VERSITI MEDICAL SERVICES PROVIDES MEDICAL AND THERAPEUTIC SERVICES IN PARTNERSHIP WITH LOCAL HOSPITALS. DURING 2023, 3,267 THERAPEUTIC PROCEDURES WERE PERFORMED.D. VERSITI DONOR TESTING LABORATORY PROVIDES INFECTIOUS DISEASE TESTING TO DETERMINE DONOR SUITABILITY AND PRODUCT SAFETY FOR VERSITI AFFILIATES AND OTHER BLOOD CENTER PARTNERS.THE COMBINED TOTALS FOR DIAGNOSTIC LABORATORY, ORGAN AND TISSUE DONATION, MEDICAL SERVICES, AND DONOR TESTING LABORATORY ARE SUMMARIZED BELOW. 69522551 6628 88564383 198249581 1 1 0 1 0 0 0 0 0 1 1 1 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 0 0 1283 1 1 1 0 0 0 0 0 0 0 0 0 1 0 X 19 18 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 WI X X DAWN HENSE 4149335000 638 N 18TH ST MILWAUKEE WI 532332121 X CHRIS MISKEL PRESIDENT & CEO 21.00 34.00 X X 598543 826558 55375 FRED GEILFUSS CHAIR; LEGAL ADVISOR 1.00 5.00 X X 0 0 0 L ALAN WHALEY VICE CHAIR 1.00 4.00 X X 0 0 0 SHERRY HUSA SECRETARY 1.00 4.00 X X 0 0 0 RON MILLER TREASURER 1.00 4.00 X X 0 0 0 NICHOLAS BAUER BOARD MEMBER - AS OF 3/23 1.00 4.00 X 0 0 0 COREEN DICUS-JOHNSON JD BOARD MEMBER 1.00 4.00 X 0 0 0 DAVID GINSBURG MD BOARD MEMBER 1.00 4.00 X 0 0 0 CECELIA GORE BOARD MEMBER - AS OF 11/23 1.00 4.00 X 0 0 0 GAIL HANSON BOARD MEMBER 1.00 4.00 X 0 0 0 THOMAS HAUSKE JR BOARD MEMBER 1.00 5.00 X 0 0 0 DALE KENT BOARD MEMBER 1.00 4.00 X 0 0 0 ROBERT H MANEGOLD BOARD MEMBER 1.00 5.00 X 0 0 0 JEFFREY S MCDONALD BOARD MEMBER 1.00 4.00 X 0 0 0 MAGGEY OPLINGER BOARD MEMBER - AS OF 11/23 1.00 4.00 X 0 0 0 JOHN PERRAS BOARD MEMBER 1.00 4.00 X 0 0 0 KATHY THORNTON-BIAS BOARD MEMBER 1.00 4.00 X 0 0 0 GREG WESLEY BOARD MEMBER 1.00 4.00 X 0 0 0 PETER ZIEGLER BOARD MEMBER 1.00 4.00 X 0 0 0 BART REUTER EVP & GENERAL COUNSEL 21.00 34.00 X 302795 418145 64225 ANTHONY WATKINS EVP & CHIEF FINANCIAL OFFICER 21.00 34.00 X 311566 430257 40131 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 22.00 33.00 X 288748 398745 54302 MICHAEL DEININGER MD EVP & CHIEF SCIENTIFIC OFFICER 48.00 7.00 X 611478 32182 39453 GITESH DUBAL EVP & CHIEF MARKETING OFFICER 22.00 33.00 X 260471 359696 56985 BRADLEY PIETZ EVP & CHIEF LABORATORY OFFICER 22.00 33.00 X 232428 320977 62979 BARBARA BRYANT EVP & CHIEF MEDICAL OFFICER 50.00 5.00 X 546023 0 25848 JAMES WEIDNER EVP & CHIEF HR OFFICER 22.00 33.00 X 214033 295574 54653 ALEXANDRA PIEPER VP & CHIEF QLT OFF - THRU 10/23 22.00 33.00 X 218935 302345 42404 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 22.00 33.00 X 199119 274980 50984 JESSICA DROUILLARD VP & CHIEF QLT OFF - AS OF 10/23 22.00 33.00 X 69419 95865 12988 MATTHEW ANDERSON MD VP & DIAGNOSTIC LAB MED DIRECTOR 55.00 0.00 X 449993 0 63620 PETER NEWMAN PHD VP RESEARCH & ASSOC DIR BRI 55.00 0.00 X 410742 0 39073 KARIN HOFFMEISTER DEPUTY DIRECTOR VBRI 55.00 0.00 X 367763 0 48731 LYNN M MALEC MD SENIOR MEDICAL DIRECTOR 55.00 0.00 X 373341 0 40023 LISA BAUMANN KREUZIGER SENIOR MEDICAL DIRECTOR 55.00 0.00 X 371996 0 39360 5827393 3755324 791134 173 0 1 0 MEDICAL COLLEGE OF WISCONSIN INC 8701 WATERTOWN PLANK RD MILWAUKEE WI 53226 RESEARCH SERVICES 1841896 HGA PO BOX 86 MINNEAPOLIS MN 55486 BUILDING DESIGN FIRM 997391 HEALTH RESEARCH INC PO BOX 2966 BUFFALO NY 14240 RESEARCH SERVICES 796128 CERNER CORPORATION 2800 ROCKCREEK PARKWAY KANSAS CITY MO 64117 SOFTWARE SUPPORT 644302 MILWAUKEE REGIONAL MEDICAL CENTER 8700 WATERTOWN PLANK RD MILWAUKEE WI 53226 FACILITY SERVICES 634002 31 9242529 21335992 4954744 35533265 PHARMACY 621500 54436294 54436294 BLOOD SERVICES 621991 52099123 52099123 DIAGNOSTIC LABORATORIES 621500 46842987 46842987 ORGAN AND TISSUE DONATION 621991 22696296 22696296 MEDICAL SERVICES 621500 10878454 10878454 8146646 7440711 705935 195099800 3454842 3454842 30000 46589 -16589 -16589 -16589 5060805 38950 4609633 50822 451172 -11872 439300 439300 AFFILIATE SERVICE FEES 900099 413384 413384 SHARED SERVICE FEE 900099 156221 156221 ACQUIRED CASH RECEIPTS 900099 110000 110000 14269 13034 1235 693874 235204492 194406899 862156 4402172 X 3945278 3945278 26250 26250 4124800 1791264 2333536 75002577 64518173 10484404 3834959 3249713 585246 11531699 9689576 1842123 5212633 4350626 862007 714336 583425 130911 72547 57547 15000 8348 8348 6218 6218 25472581 24082941 1389640 529110 169809 359301 455627 431568 24059 2126209 1802115 324094 15641 15641 5464838 3423714 2041124 2892767 2483414 409353 564962 458597 106365 14863 11450 3413 4857747 3433989 1423758 82872 82772 100 COST OF IMPORTED PROD 45761354 45761354 MEDICAL LAB SUPPLIES 20109719 20071126 38593 VERSITI SERVICES ALLOC 12913241 3820619 9092622 EQUIPMENT LEASE/MAINT 3391961 2426401 965560 1835487 1553871 281616 230968624 198249581 32719043 0 1225979 4778539 0 0 3463590 2528124 35985416 38464994 0 0 0 0 0 0 9531534 11173130 586811 1181467 125187571 84378942 31100051 40808629 40113083 44952503 17881849 17143314 0 0 939531 25991764 1035640 1789984 141863484 188812448 18514949 49314606 0 0 329670 3602994 0 0 0 0 0 0 0 0 0 0 7891714 15278630 26736333 68196230 X 115127151 120616218 115127151 120616218 141863484 188812448 X 4235868 2001538 -748339 X 0 1 X 1 1 1 X 24337374 26647932 26132948 31822899 35533265 144474418 24337374 26647932 26132948 31822899 35533265 144474418 39465808 105008610 904927 1862957 1963086 1514098 3484842 9729910 4713 4416 3620 3684 4273 20706 104382 100852 121241 91510 524619 942604 155167638 848691861 0.67670 0.66770 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: PATRONAGE DIVIDENDS - 2019 AMOUNT: $ 55,250. 2020 AMOUNT: $ 31,405. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 0. COPY FEES - 2019 AMOUNT: $ 455. 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 510. 2023 AMOUNT: $ 0. MISCELLANEOUS - 2019 AMOUNT: $ 17,233. 2020 AMOUNT: $ 197. 2021 AMOUNT: $ 12,241. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 355. ACQUIRED CASH RECEIPTS - 2019 AMOUNT: $ 22,974. 2020 AMOUNT: $ 69,250. 2021 AMOUNT: $ 109,000. 2022 AMOUNT: $ 91,000. 2023 AMOUNT: $ 110,000. ENTERPRISE FLEET SERVICES - 2019 AMOUNT: $ 8,470. 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 0. CREDIT CARD REBATES - 2019 AMOUNT: $ 0. 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 880. AFFILIATE SERVICE FEES - 2019 AMOUNT: $ 0. 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 413,384. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 0 0 1 8348 8348 0 PART II-B, LINE 1: PAID STAFF OR MANAGMENT GENERAL COUNSEL PROVIDES LOBBYING SERVICES TO THE FILING ORGANIZATION. HOWEVER, SUCH EXPENSES ARE PAID FOR BY VERSITI INC., THE FILING ORGANIZATION'S PARENT. OTHER ACTIVITIES $8,327 OF THE DUES PAID TO THE ASSOCIATION OF ORGAN PROCUREMENT ORGANIZATIONS AND $21 OF OTHER EXPENSES PAID WERE ALLOCATED TO LOBBYING ACTIVITIES. 94766972 671355 14059961 4513248 104985040 112901289 848275 -13361785 5620807 94766972 99612019 1371435 16077669 4159834 112901289 89992682 4494881 9457908 4333452 99612019 77632272 2512261 14163049 4314900 89992682 0.97960 0.02040 0 1 1 4268493 4268493 67163733 49157808 18005925 2651042 779926 1871116 45259740 33756700 11503040 5844563 684508 5160055 40808629 INVESTMENT IN CENETRON 17143314 F 17143314 LONG TERM RETIREMENT LIABILITIES 9026860 ADDITIONAL INCENTIVES 3679456 LEASE LIABILITY 2248842 DEFERRED INCOME TAXES 323472 15278630 X 236519738 2001538 2001538 234518200 6218 680074 686292 235204492 231030671 68265 68265 230962406 6218 6218 230968624 PART V, LINE 4: ENDOWMENTS THE FILING ORGANIZATION IS A BENEFICIARY OF THE VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION'S ("VBRIF") ENDOWMENT AS A SUPPORTED ORGANIZATION. THE BOARD DESIGNATED ENDOWMENT FUNDS ARE DESIGNATED BY THE BOARD AS ENDOWMENT FUNDS TO ENSURE THE CONTINUING AVAILABILITY OF FUNDS FOR RESEARCH PURPOSES. PART X, LINE 2: INCOME TAXES VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION HAVE ALL RECEIVED TAX DETERMINATION LETTERS CONFIRMING THAT THE ORGANIZATIONS QUALIFY AS TAX-EXEMPT ORGANIZATIONS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). THE ORGANIZATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION ARE EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3), THOUGH THEY ARE SUBJECT TO TAX ON INCOME UNRELATED TO THEIR EXEMPT PURPOSES, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THE ORGANIZATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE ORGANIZATION FILES FEDERAL AND STATE INCOME TAX RETURNS TO REPORT UNRELATED BUSINESS INCOME WHERE APPLICABLE, AND WITH FEW EXCEPTIONS, THOSE PERIODS GENERALLY REMAIN OPEN THREE YEARS FOR FEDERAL PURPOSES AND FOUR YEARS FOR STATE PURPOSES. THE STATUTE OF LIMITATIONS WILL REMAIN OPEN FOR ANY YEARS WHERE RETURNS WERE NOT FILED. THE ORGANIZATION HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. SALUS HAS BEEN ORGANIZED AS A LIMITED LIABILITY COMPANY AND, ACCORDINGLY, IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. ALL INCOME TAX ATTRIBUTES OF THE ENTITY ARE PASSED THROUGH TO ITS SOLE MEMBER, WISCONSIN. THE ENTITY IS, HOWEVER, SUBJECT TO TEXAS FRANCHISE TAX. THE ENTITY IS INCLUDED IN THE CONSOLIDATED INFORMATION RETURN FILED BY VERSITI WISCONSIN. CENETRON HAS BEEN ORGANIZED AS A WHOLLY OWNED LLC THAT HAS ELECTED TO BE TREATED AS A C-CORPORATION FOR TAX PURPOSES AND SO IS SUBJECT TO FEDERAL AND STATE INCOME TAXES. INCOME TAXES ARE PROVIDED FOR THE TAX EFFECTS OF TRANSACTIONS REPORTED BY CENETRON AND CONSIST OF TAXES CURRENTLY DUE AND DEFERRED TAXES. DEFERRED TAXES ARE RECOGNIZED FOR DIFFERENCES BETWEEN THE BASIS OF ASSETS AND LIABILITIES FOR FINANCIAL STATEMENT AND INCOME TAX PURPOSES. THE DIFFERENCES RELATE PRIMARILY TO INTANGIBLE ASSETS. THE DEFERRED TAX ASSETS AND LIABILITIES REPRESENT THE FUTURE TAX RETURN CONSEQUENCES OF THOSE DIFFERENCES, WHICH WILL EITHER BE TAXABLE OR DEDUCTIBLE WHEN THE ASSETS AND LIABILITIES ARE RECOVERED OR SETTLED. CENETRON IS SUBJECT TO TAXATION IN THE UNITED STATES AND THE STATE OF TEXAS. QUANTIGEN HAS BEEN ORGANIZED AS A DISREGARDED ENTITY AND, ACCORDINGLY, IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. ALL INCOME TAX ATTRIBUTES OF THE ENTITY ARE PASSED THROUGH TO ITS SOLE MEMBER, WISCONSIN. PEARL PATHWAYS HAS BEEN ORGANIZED AS A LIMITED LIABILITY COMPANY AND, ACCORDINGLY, IS NOT SUBJECT TO FEDERAL OR STATE INCOME TAXES. ALL INCOME TAX ATTRIBUTES OF THE ENTITY ARE PASSED THROUGH TO ITS SOLE MEMBER, WISCONSIN. THE ENTITY IS INCLUDED IN THE CONSOLIDATED INFORMATION RETURN FILED BY VERSITI WISCONSIN. THE CONSOLIDATED DEFERRED TAX LIABILITY WAS $675,285 AND $271,839 AS OF DECEMBER 31, 2023 AND 2022, RESPECTIVELY, AND PRIMARILY RELATES TO INTANGIBLES. THERE WAS DEFERRED INCOME TAX EXPENSE FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022 OF $371,200 AND $436,926, RESPECTIVELY. THE ORGANIZATION RECOGNIZES, IF NECESSARY, INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN THE PROVISION FOR INCOME TAXES. THERE WERE NO MATERIAL INTEREST OR PENALTIES RELATED TO INCOME TAXES THAT HAVE BEEN ACCRUED OR RECOGNIZED AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2023 AND 2022. PART XI, LINE 4B - OTHER ADJUSTMENTS: CHANGE IN EQUITY IN CENETRON -1,011,465. INVESTMENT IN AFFILIATE BALANCE SHEET AMOUNT 1,750,000. LOSS ON DISPOSITION OF FIXED ASSETS -11,872. RENTAL ACTIVITY EXPENSES -46,589. PART XII, LINE 2D - OTHER ADJUSTMENTS: BAD DEBT RESERVE ADJUSTMENT 9,804. LOSS ON DISPOSITION OF FIXED ASSETS 11,872. RENTAL ACTIVITY EXPENSES 46,589. 1 VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION PO BOX 2178 638 N 18TH STREET MILWAUKEE WI 532012178 391372542 501(C)(3) 3810000 0 RESEARCH GREAT LAKES HEMOPHILIA FOUNDATION INC 638 N 18TH ST MILWAUKEE WI 53233 237367636 501(C)(3) 114000 0 PATIENT FINANCIAL ASSISTANCE 2 SCHOLARSHIPS 4 26250 FMV PART I, LINE 2: PROCEDURE FOR MONITORING USE OF GRANT FUNDS INSIDE U.S. VERSITI WISCONSIN CONTINUES TO PROVIDE GRANT FUNDING TO VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION, INC. AND OTHER TAX-EXEMPT ORGANIZATIONS. THESE FUNDS WILL SUPPORT FUTURE BLOOD RESEARCH AND OTHER INITIATIVES TO SERVE MORE PATIENTS AND REDUCE OVERALL COSTS. MONITORING THE INVESTMENT OF THESE FUNDS, THE DISTRIBUTIONS AND WHAT THESE FUNDS ARE USED FOR IS COMPLETED BY LEADERSHIP OF VERSITI WISCONSIN. ADDITIONALLY, THE FILING ORGANIZATION OFFERS SCHOLARSHIPS TO EMPLOYEES AND COMMUNITY MEMBERS IF CERTAIN CRITERIA ARE MET. THE SCHOLARSHIPS ARE SENT TO THE COLLEGE OR UNIVERSITY WHERE THE STUDENT IS ENROLLED. X X 1 0 X X X X X 1 0 0 1 1 1 1 1 0 CHRIS MISKEL PRESIDENT & CEO 322350 445147 266252 367682 9941 13729 9450 13050 13807 19068 621800 858676 0 0 BART REUTER EVP & GENERAL COUNSEL 172593 238342 119642 165219 10560 14584 9702 13398 17272 23853 329769 455396 0 0 ANTHONY WATKINS EVP & CHIEF FINANCIAL OFFICER 180480 249233 118529 163682 12557 17342 9702 13398 7153 9878 328421 453533 0 0 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 190552 263140 89158 123123 9038 12482 8323 11493 14484 20002 311555 430240 0 0 MICHAEL DEININGER MD EVP & CHIEF SCIENTIFIC OFFICER 480803 25305 103702 5458 26973 1419 15794 831 21687 1141 648959 34154 0 0 GITESH DUBAL EVP & CHIEF MARKETING OFFICER 155708 215023 94822 130944 9941 13729 9450 13050 14483 20002 284404 392748 0 0 BRADLEY PIETZ EVP & CHIEF LABORATORY OFFICER 122156 168693 99703 137686 10569 14598 9544 13181 16907 23347 258879 357505 0 0 BARBARA BRYANT EVP & CHIEF MEDICAL OFFICER 509725 0 18210 0 18088 0 23100 0 2748 0 571871 0 0 0 JAMES WEIDNER EVP & CHIEF HR OFFICER 130103 179667 73266 101178 10664 14729 9702 13398 13252 18301 236987 327273 0 0 ALEXANDRA PIEPER VP & CHIEF QLT OFF - THRU 10/23 89792 124000 33075 45675 96068 132670 6785 9370 11025 15224 236745 326939 0 0 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 131999 182288 64262 88743 2858 3949 10816 14935 10599 14634 220534 304549 0 0 MATTHEW ANDERSON MD VP & DIAGNOSTIC LAB MED DIRECTOR 361305 0 85900 0 2788 0 23100 0 40520 0 513613 0 0 0 PETER NEWMAN PHD VP RESEARCH & ASSOC DIR BRI 355020 0 48700 0 7022 0 26400 0 12673 0 449815 0 0 0 KARIN HOFFMEISTER DEPUTY DIRECTOR VBRI 330999 0 31900 0 4864 0 14373 0 34358 0 416494 0 0 0 LYNN M MALEC MD SENIOR MEDICAL DIRECTOR 350667 0 18600 0 4074 0 19732 0 20291 0 413364 0 0 0 LISA BAUMANN KREUZIGER SENIOR MEDICAL DIRECTOR 313730 0 33900 0 24366 0 23100 0 16260 0 411356 0 0 0 JESSICA DROUILLARD VP & CHIEF QLT OFF - AS OF 10/23 62998 86997 6048 8352 373 516 4274 5902 1182 1630 74875 103397 0 0 PART I, LINE 1A CHARTER TRAVEL VERSITI WISCONSIN PAID FOR A CHARTERED FLIGHT FOR TWO LISTED INDIVIDUALS FOR BUSINESS PURPOSES. THE CHARTER TRAVEL IS NOT TREATED AS TAXABLE COMPENSATION. PERSONAL SERVICES VERSITI WISCONSIN PROVIDED MOVING EXPENSES FOR THE FOLLOWING EMPLOYEE: BARBARA BRYANT $7,372. THE MOVING EXPENSES ARE TREATED AS TAXABLE COMPENSATION. PART I, LINE 3 TOP MANAGEMENT'S COMPENSATION THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR THE FILING ORGANIZATION. OTHER THAN THE VERSITI PRESIDENT AND CHIEF EXECUTIVE OFFICER, THE EXECUTIVE COMMITTEE DOES NOT INCLUDE MEMBERS OF MANAGEMENT. TO ENSURE THAT THE COMMITTEE IS COMPRISED OF INDIVIDUALS WHO DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO VERSITI COMPENSATION ARRANGEMENTS, THE VERSITI PRESIDENT AND CHIEF EXECUTIVE OFFICER RECUSES HER/HIMSELF FROM ALL DISCUSSIONS AND APPROVALS RELATED TO HER/HIS COMPENSATION. THE EXECUTIVE COMMITTEE REVIEWS EXECUTIVE COMPENSATION ARRANGEMENTS TO ENSURE SUCH ARRANGEMENTS ARE FAIR, REASONABLE, AND NOT EXCESSIVE WHEN COMPARED TO SIMILARLY-SITUATED EXECUTIVES. EXECUTIVE COMPENSATION ARRANGEMENTS ARE REVIEWED FOR REASONABLENESS AND APPROVED BY THE EXECUTIVE COMMITTEE ANNUALLY IN ACCORDANCE WITH THE VERSITI REASONABLENESS REVIEW POLICY. IN ORDER TO ASSESS THE REASONABLENESS OF EXECUTIVE COMPENSATION ARRANGEMENTS, THE EXECUTIVE COMMITTEE OBTAINS AND REVIEWS APPROPRIATE COMPARABILITY DATA COLLECTED BY THE HUMAN RESOURCE DEPARTMENT AND/OR A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT. THE EXECUTIVE COMMITTEE ENGAGES A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT ANNUALLY. THE INDEPENDENT CONSULTANT PERFORMS AN ANALYSIS OF COMPENSATION LEVELS AT REGIONAL AND NATIONAL ORGANIZATIONS OF COMPARABLE SIZE, SCOPE AND STRUCTURE; AND PROVIDES THE COMMITTEE WITH COMPREHENSIVE DATA ON THE AVAILABILITY OF SIMILAR SERVICES WITHIN THE GEOGRAPHIC AREA, COMPENSATION SURVEYS, WRITTEN OFFERS FROM SIMILAR INSTITUTIONS, AND OTHER INFORMATION RELEVANT TO COMPARABILITY OF COMPENSATION. THE EXECUTIVE COMMITTEE'S REVIEW, RECOMMENDATIONS AND APPROVALS ARE DOCUMENTED CONCURRENTLY IN THE COMMITTEE MINUTES, WHICH ARE SUBSEQUENTLY REVIEWED AND APPROVED BY THE EXECUTIVE COMMITTEE AS REASONABLE, ACCURATE AND COMPLETE. THE COMMITTEE CHAIR VERBALLY COMMUNICATES TO THE BOARD OF DIRECTORS A CONFIRMATION OF COMPENSATION REASONABLENESS AND THE OVERALL DUE DILIGENCE PROCESS. VERSITI WISCONSIN HAS INCENTIVE PROGRAMS FOR EXECUTIVES, DIRECTORS, MANAGEMENT, INVESTIGATORS AND STAFF DESCRIBED IN DETAILED WRITTEN POLICIES APPROVED BY THE EXECUTIVE COMMITTEE ANNUALLY. EVALUATION AND COMPENSATION REVIEW -CEO - EACH YEAR, THE EXECUTIVE COMMITTEE EVALUATES THE CEO'S PERFORMANCE AGAINST ESTABLISHED OBJECTIVES, DETERMINES INCENTIVE PAYMENT AND MERIT INCREASE BASED UPON PERFORMANCE AND MARKET DATA PROVIDED BY THE THIRD PARTY COMPENSATION CONSULTANT, AND WORKS WITH THE CEO TO ESTABLISH OBJECTIVES FOR THE NEXT YEAR. -EXECUTIVES - THE BOARD OF DIRECTORS HAS DELAGATED TO THE CEO THE PERFORMANCE ASSESSMENT AND COMPENSATION DECISIONS FOR HIS/HER TEAM AND LEADERS ELIGIBLE FOR THE VERSITI LEADERSHIP INCENTIVE PLAN. DURING THE MAY MEETING, THE EXECUTIVE COMMITTEE REVIEWS THE INCENTIVES (SHORT AND LONG-TERM) PAYOUTS AND MERIT INCREASES ASSIGNED TO THE EXECUTIVE TEAM AS PART OF THE ANNUAL COMPENSATION REASONABILITY REVIEW CONDUCTED BY AON CONSULTANTS. THE EXECUTIVE COMMITTEE REVIEWS AND APPROVES THE SALARY INCREASES AND INCENTIVE PAYOUTS OF THE CEO BEFORE PAYMENT. EXECUTIVES ARE POSITIONED WITHIN THE APPROPRIATE SALARY RANGE BASED UPON THE: -EXECUTIVE'S KNOWLEDGE, COMPETENCIES, AND EXPERIENCE, -PERFORMANCE OF THE EXECUTIVE'S AREAS OF RESPONSIBILITY, -THE EXECUTIVE'S CONTRIBUTION TO OVERALL PERFORMANCE, -THE IMPORTANCE OF RETAINING THE EXECUTIVE, -INTERNAL EQUITY CONSIDERATIONS, -THE FINANCIAL RESOURCES AVAILABLE, AND -EXECUTIVE BASE SALARY INCREASES PROVIDED IN THE COMPETITIVE MARKET. PART I, LINE 4A SEVERANCE PAYMENT AN INDIVIDUAL RECEIVED A SEVERANCE PAYMENT. THE SEVERANCE IS INCLUDED IN COMPENSATION IN SCHEDULE J, PART II, COLUMN (B)(III). PART I, LINE 5A, 5B, 6A, 6B AND 7: NON-FIXED PAYMENTS INCENTIVE PAYOUT OPPORTUNITIES, BASED ON PERCENTAGE OF BASE PAY RATE, ARE AVAILABLE TO CERTAIN EMPLOYEES OF THE FILING ORGANIZATION. WHILE LEVELS OF THE INCENTIVE PAYOUT OPPORTUNITY ARE FIXED AND DETERMINED PERCENTAGES OF BASE COMPENSATION, THE INCENTIVE PAYOUT IS DETERMINED, IN PART, ON THE CONSOLIDATED REVENUE AND NET EARNINGS OF OPERATING DIVISIONS. THE INCENTIVE PAYOUT IS SUBJECT TO THE REVIEW OF ACCOMPLISHMENTS/OBJECTIVES AND THE ULTIMATE DETERMINATION OF INCENTIVE COMPENSATION IS SUBJECT TO PRESIDENT/CEO AND EXECUTIVE COMMITTEE OF THE BOARD APPROVAL. FORM 990, PART I, LINE 1 VERSITI WISCONSIN, INC. (VERSITI WISCONSIN) IS A BLOOD HEALTH INNOVATOR WHICH ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS VERSITI, INC. IS THE SOLE CORPORATE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A MEMBER OR STOCKHOLDER POWERS VERSITI, INC. HAS RESERVE POWERS; INCLUDING THE ABILITY TO ELECT A MAJORITY OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B REFER TO NARRATIVE LISTED IN LINE 7A. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW VERSITI WISCONSIN UTILIZES GRANT THORNTON TO COMPLETE THE IRS FORM 990 AND RELATED SCHEDULES. FOLLOWING COMPLETION, THEY ARE REVIEWED BY THE ORGANIZATION'S MANAGEMENT. THE DRAFT FORMS ARE THEN REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE PRIOR TO SUBMISSION TO THE IRS. THE FULL BOARD IS PROVIDED A COPY OF THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY VERSITI WISCONSIN MAINTAINS A WRITTEN CONFLICT OF INTEREST POLICY. ON AN ANNUAL BASIS, CURRENT DIRECTORS AND OFFICERS ARE ASKED TO COMPLETE A DISCLOSURE FORM BASED ON IRS REQUIREMENTS THAT INCLUDES THE FOLLOWING: WHETHER THEY HAVE ANY DIRECT OR INDIRECT RELATIONSHIP EITHER THROUGH BUSINESS OR FAMILY MEMBER WITH THE ORGANIZATION. WHETHER THEY RECEIVED COMPENSATION FROM ANY ORGANIZATION THAT SHARES COMMON OWNERSHIP OR CONTROL WITH THE ORGANIZATION. WHETHER THEY HAVE SERVED AS AN OFFICER, DIRECTOR, KEY EMPLOYEE, PARTNER OR MEMBER OF AN ENTITY (OR SHAREHOLDER OF A PROFESSIONAL CORPORATION) DOING BUSINESS WITH THE ORGANIZATION. THESE ANSWERS ARE ACCUMULATED, SUMMARIZED AND EVALUATED BY MANAGEMENT TO DETERMINE IF ANY CONFLICTS EXIST. IDENTIFIED CONFLICTS ARE ADDRESSED IN ACCORDANCE WITH THE WRITTEN POLICY. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PROCESS VERSITI AND ITS AFFILIATED BLOOD CENTERS GREATLY VALUE THE GENEROUS CONTRIBUTIONS OF THE INDIVIDUALS AND ORGANIZATIONS THAT SUPPORT OUR MISSION WITHIN THE COMMUNITY WE SERVE. IN ORDER TO ENSURE PROPER STEWARDSHIP OF OUR CHARITABLE RESOURCES, THE FILING ORGANIZATION FOLLOWS A FORMALIZED PROCESS TO CONFIRM THAT COMPENSATION PROVIDED TO OUR EXECUTIVE LEADERSHIP TEAM IS FAIR, REASONABLE, AND NOT EXCESSIVE WHEN COMPARED TO OTHER EXECUTIVES. THIS PROCESS ALSO HELPS US ENSURE THAT OUR COMPENSATION PROGRAM SUPPORTS THE RETENTION OF EXPERIENCED, HIGHLY-QUALIFIED EXECUTIVES WHO ARE COMMITTED TO OUR MISSION. THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR THE FILING ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 ORGANIZATION'S DOCUMENTS OPEN TO THE PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST TO THE PUBLIC DURING NORMAL BUSINESS HOURS AND AT THE ORGANIZATION'S LOCATION. PART VII: AVERAGE HOURS THE HOURS LISTED ON FORM 990, PART VII ARE REPRESENTATIVE OF AN AVERAGE FOR THE OFFICERS AND EXECUTIVE TEAM. EACH INDIVIDUAL PERSON'S WEEKLY TALLY MAY BE GREATER OR LESSER PER WEEK BASED ON THEIR INDIVIDUAL ROLES AND RESPONSIBILITIES WITHIN THE FILING ORGANIZATION AND RELATED PARTIES. THE SALARY PRESENTED FOR THE PRESIDENT AND CEO IS REFLECTIVE OF TOTAL SALARY COMPENSATION FOR SERVICES TO THE FILING ORGANIZATION AND RELATED AFFILIATES. FORM 990, PART IX, LINE 11G DONOR TESTING: PROGRAM SERVICE EXPENSES 5,515,553. TOTAL EXPENSES 5,515,553. SUBAWARDS: PROGRAM SERVICE EXPENSES 5,484,586. TOTAL EXPENSES 5,484,586. CONSULTING SERVICES: PROGRAM SERVICE EXPENSES 1,603,542. MANAGEMENT AND GENERAL EXPENSES 362,056. TOTAL EXPENSES 1,965,598. SHIPPING & TRANSPORTATION: PROGRAM SERVICE EXPENSES 1,594,074. MANAGEMENT AND GENERAL EXPENSES 193,470. TOTAL EXPENSES 1,787,544. PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 925,525. MANAGEMENT AND GENERAL EXPENSES 730,323. TOTAL EXPENSES 1,655,848. ANIMAL CARE COSTS: PROGRAM SERVICE EXPENSES 1,288,654. TOTAL EXPENSES 1,288,654. IRB CONTRACTOR FEES: PROGRAM SERVICE EXPENSES 724,576. TOTAL EXPENSES 724,576. LAB: PROGRAM SERVICE EXPENSES 611,164. TOTAL EXPENSES 611,164. OUTSIDE LAB SERVICE: PROGRAM SERVICE EXPENSES 607,916. TOTAL EXPENSES 607,916. TEMPORARY HELP: PROGRAM SERVICE EXPENSES 563,793. MANAGEMENT AND GENERAL EXPENSES 44,000. TOTAL EXPENSES 607,793. OPERATING ROOM: PROGRAM SERVICE EXPENSES 590,013. TOTAL EXPENSES 590,013. GRADUATE STUDENT STIPENDS: PROGRAM SERVICE EXPENSES 532,875. TOTAL EXPENSES 532,875. ICU: PROGRAM SERVICE EXPENSES 531,239. TOTAL EXPENSES 531,239. PHARMACY: PROGRAM SERVICE EXPENSES 436,200. TOTAL EXPENSES 436,200. RADIOLOGY: PROGRAM SERVICE EXPENSES 387,548. TOTAL EXPENSES 387,548. OTHER HOSPITAL CHARGES: PROGRAM SERVICE EXPENSES 363,168. TOTAL EXPENSES 363,168. CARDIOLOGY: PROGRAM SERVICE EXPENSES 334,707. TOTAL EXPENSES 334,707. TRANSLATION SERVICE: PROGRAM SERVICE EXPENSES 301,278. TOTAL EXPENSES 301,278. CLAIM/BILLING REVIEW: PROGRAM SERVICE EXPENSES 294,541. TOTAL EXPENSES 294,541. FACILITY CHARGES: PROGRAM SERVICE EXPENSES 279,905. TOTAL EXPENSES 279,905. RESPIRATORY THERAPY: PROGRAM SERVICE EXPENSES 222,425. TOTAL EXPENSES 222,425. ANESTHESIA: PROGRAM SERVICE EXPENSES 187,381. TOTAL EXPENSES 187,381. PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 186,858. TOTAL EXPENSES 186,858. PS SUPPLIES: PROGRAM SERVICE EXPENSES 93,619. TOTAL EXPENSES 93,619. FUNERAL HOME CHARGES: PROGRAM SERVICE EXPENSES 85,004. TOTAL EXPENSES 85,004. EDUCATION: PROGRAM SERVICE EXPENSES 44,559. MANAGEMENT AND GENERAL EXPENSES 15,714. TOTAL EXPENSES 60,273. NON-MARKETING PRINTING COSTS: PROGRAM SERVICE EXPENSES 45,792. MANAGEMENT AND GENERAL EXPENSES 6,237. TOTAL EXPENSES 52,029. PUBLICATION SERVICES: PROGRAM SERVICE EXPENSES 45,101. TOTAL EXPENSES 45,101. CUSTOMER TESTING: PROGRAM SERVICE EXPENSES 43,488. TOTAL EXPENSES 43,488. LICENSES, PERMITS, & HOSP FEES: PROGRAM SERVICE EXPENSES 32,072. MANAGEMENT AND GENERAL EXPENSES 4,736. TOTAL EXPENSES 36,808. RECORD STORAGE: PROGRAM SERVICE EXPENSES 10,090. MANAGEMENT AND GENERAL EXPENSES 24,264. TOTAL EXPENSES 34,354. OUTSIDE MEDICAL DIRECTOR (OPO): PROGRAM SERVICE EXPENSES 21,737. TOTAL EXPENSES 21,737. DNA SEQUENCING: PROGRAM SERVICE EXPENSES 21,104. TOTAL EXPENSES 21,104. PHARMACY DISPENSING FEE: PROGRAM SERVICE EXPENSES 19,485. TOTAL EXPENSES 19,485. BANK ACCOUNT FEES: PROGRAM SERVICE EXPENSES 15,318. MANAGEMENT AND GENERAL EXPENSES 3,218. TOTAL EXPENSES 18,536. OTHER PURCHASE SERV AFFILIATES: PROGRAM SERVICE EXPENSES 13,641. TOTAL EXPENSES 13,641. NON-HOSPITAL BUSINESS DEVELOPMENT: PROGRAM SERVICE EXPENSES 11,783. TOTAL EXPENSES 11,783. LAUNDRY COSTS: PROGRAM SERVICE EXPENSES 9,372. TOTAL EXPENSES 9,372. EMPLOYMENT RECRUITMENT FEES: PROGRAM SERVICE EXPENSES 90. MANAGEMENT AND GENERAL EXPENSES 5,622. TOTAL EXPENSES 5,712. OUTSIDE CORE LAB CHARGES: PROGRAM SERVICE EXPENSES 3,165. TOTAL EXPENSES 3,165. FORM 990, PART XI, LINE 9: BAD DEBT RESERVE ADJUSTMENT -9,804. CHANGE IN EQUITY IN CENETRON 1,011,465. INVESTMENT IN AFFILIATE BALANCE SHEET AMOUNT -1,750,000. 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