2022-11-15T20:46:53-06:00 2021-12-31 861065772 DELOITTE TAX LLP 1001 WOODWARD SUITE 700 DETROIT MI 48226 990 2021-01-01 382549505 BOTSFORD CONTINUING CARE CORPORATION BOTS 6163912022 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 MATTHEW E COX CFO 6163912022 2022-11-15 1 MATTHEW COX 999009999 ALICIA JANISCH P00741382 3133963000 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z BOTSFORD CONTINUING HEALTH CENTER MARGARET LIGHTNER 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 13479806 0 X WWW.BEAUMONTCOMMONSFH.ORG X 1984 MI TO CREATE A FULLNESS OF LIFE THROUGH THE JOY OF RELATIONSHIPS, THE ART OF CARING, AND THE SPIRIT OF LIVING. 3 0 185 16 26761 0 934268 86830 15709714 13279463 4000 -662 44660 74829 16692642 13440460 0 0 0 0 8864246 8389947 0 0 0 11082115 9726770 19946361 18116717 -3253719 -4676257 28554348 28850593 65787800 77581555 -37233452 -48730962 X IN THE INTEREST OF MEETING OUR COMMUNITY'S NEEDS FOR A CONTINUUM OF CARE, BOTSFORD CONTINUING CARE CORPORATION WILL PROVIDE AN ENVIRONMENT IN WHICH CLIENTS WILL RECEIVE PERSONAL ATTENTION BY HEALTH CARE PROFESSIONALS. 0 0 16846138 13279463 THE SKILLED NURSING UNIT (SNF) IS A 179-BED FACILITY.THE ASSISTED LIVING FACILITY IS A 63-BED FACILITY. IT IS A SAFE AND SUPPORTIVE ENVIRONMENT FOR OLDER ADULTS NEEDING SOME ASSISTANCE WITH THEIR DAILY ROUTINE. THE CENTER FEATURES RESIDENTIAL SUITES WITH PRIVATE BATHS AND GENEROUS LIVING SPACE FOR TREASURED PERSONAL FURNISHINGS. EACH IS EASILY ACCESSIBLE TO COMMUNITY LIVING, DINING, AND SOCIAL AREAS. THE INDEPENDENT LIVING APARTMENT IS A 51-APARTMENT FACILITY. EACH APARTMENT IS WHEELCHAIR ACCESSIBLE, HAS 24-HOUR SECURITY SERVICES AND ILLUMINATED THERMOSTATS. EACH APARTMENT INCLUDES COMPLETE KITCHEN AND LAUNDRY FACILITIES AND INCLUDES ACCESS TO ADJACENT TOWN COMMONS BUILDING. THE TOWN COMMONS BUILDING INCLUDES DINING SERVICES, A POOL, EXERCISE ROOM, AND LIBRARY WITH MEDIA SERVICES. 16846138 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 14 0 1 185 1 1 1 0 0 0 0 0 0 0 0 0 0 0 X 3 0 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MI X BARBARA HRIT 9475221515 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 X SUSAN GRANT CHAIRPERSON 2.00 48.00 X 0 978224 454657 MARGARET LIGHTNER PRESIDENT & SECRETARY 50.00 2.00 X X 273318 0 75124 MARIA MILLER TREASURER 2.00 48.00 X X 0 227239 73656 PATIENCE C UKACHUKWU CLINICAL NURSE LTC 50.00 0.00 X 315903 0 15136 JULIE KASLLY ADMIN SKILLED NURSING LTC 50.00 0.00 X 145910 0 29340 DENISE BAILEY DIRECTOR OF NURSING LTC 50.00 0.00 X 126087 0 36827 DIANE BERI ASSOCIATE ADMINISTRATOR LTC 50.00 0.00 X 136029 0 14640 CAROLINE STREET LPN LTC 50.00 0.00 X 128700 0 14813 1125947 1205463 714193 11 0 1 0 READY NURSING SOLUTIONS PO BOX 182466 SHELBY TOWNSHIP MI 48318 NURSING SERVICES 4891868 FAIRVIEW CONSTRUCTION SERVICES LLC 28339 BECK RD UNIT F1 WIXOM MI 48393 CONSTRUCTION MANAGEMENT SERVICES 572452 SELECT REHABILITATION INC PO BOX 71985 CHICAGO IL 606941985 THERAPY SERVICES 530939 MEDICAL SOLUTIONS LLC 1010 NORTH 102ND ST STE 300 OMAHA NE 68114 NURSE STAFFING SERVICES 444820 MORRISON MANAGEMENT SPECIALISTS INC PO BOX 102289 ATLANTA GA 303682289 FOOD SERVICE STAFFING 282845 17 86830 86830 PATIENT SERVICES 623000 11619002 11619002 ASSISTED LIVING 623990 850642 850642 INDEPENDENT LIVING 623990 783256 783256 DIETARY SERVICES 900099 26563 26563 13279463 65445 38684 26761 26761 26761 662 -662 -662 -662 OTHER SERVICES 900099 48068 48068 48068 13440460 13279463 26761 47406 X 348442 348442 5956100 5678067 278033 306900 297693 9207 1294101 1181048 113053 484404 441885 42519 187668 187668 89530 89530 1395 1395 3730421 3730421 29587 5616 23971 96148 89525 6623 24421 24421 741149 684871 56278 1213 1213 1564 1564 378303 378303 1090308 1007445 82863 178765 173402 5363 CORPORATE ALLOCATION 1588696 1588696 PROVIDER TAX QAAP 970797 970797 MEDICAL SUPPLIES 412809 412809 EMPLOYEE EDUCATION 46068 46068 157928 157928 18116717 16846138 1270579 0 13972107 14087162 0 73242 40180 65058 170000 170000 44372393 29917262 14314725 14455131 57336 0 28554348 28850593 1632517 1499167 155383 206759 63999900 75875629 65787800 77581555 X -37356540 -48854050 123088 123088 -37233452 -48730962 28554348 28850593 X -4676257 -6821253 X 0 1 X 1 0 X 0 0 0 934268 1472008 2406276 19983563 19291960 21736011 15709714 11894285 88615533 19983563 19291960 21736011 16643982 13366293 91021809 0 0 0 91021809 73325 46751 49384 57948 65445 292853 73325 46751 49384 57948 65445 292853 57257 48068 105325 20056888 19338711 21785395 16759187 13479806 91419987 0.99560 0.99580 0.00320 0.00370 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 1395 1395 0 PART II-B, LINE 1: BOTSFORD CONTINUING CARE CORPORATION PAID DUES TO HEALTH CARE ASSOCIATION OF MICHIGAN (HCAM). HCAM IDENTIFIED THAT 11.1% OF OPERATION DUES AND 28% OF AMERICAN HEALTH CARE ASSOCIATION (AHCA) DUES WERE SPENT ON LOBBYING AND RELATED EXPENSES. 0 1 1 429384 429384 34440691 23002313 11438378 5030368 4460237 570131 4471950 2454712 2017238 14455131 I/C LOAN FROM WILLIAM BEAUMONT HOSPITAL 67712457 I/C DEBT TO BEAUMONT HEALTH 7708172 CONDO RESERVE FUND 455000 75875629 PART V, LINE 4: THE TAXPAYER IS A MEMBER OF A HEALTH SYSTEM, THE PARENT OF WHICH IS BEAUMONT HEALTH. DURING THE YEAR, BEAUMONT HEALTH FOUNDATION RECEIVED FUNDS FROM OTHER ENTITIES IN THE SYSTEM, OF WHICH A PORTION IS ATTRIBUTABLE TO RESTRICTED CONTRIBUTIONS. PLEASE SEE THE FORM 990, SCHEDULE D OF BEAUMONT HEALTH FOUNDATION FOR INFORMATION REGARDING THIS ENDOWMENT FUND. 0 1 0 0 0 0 0 1 0 SUSAN GRANT CHAIRPERSON 0 586730 0 292880 0 98614 0 435684 0 18973 0 1432881 0 176500 MARGARET LIGHTNER PRESIDENT & SECRETARY 160620 0 89561 0 23137 0 52975 0 22149 0 348442 0 46700 0 PATIENCE C UKACHUKWU CLINICAL NURSE LTC 312705 0 3000 0 198 0 4915 0 10221 0 331039 0 0 0 MARIA MILLER TREASURER 0 185240 0 33700 0 8299 0 53979 0 19677 0 300895 0 33700 JULIE KASLLY ADMIN SKILLED NURSING LTC 142892 0 0 0 3018 0 26186 0 3154 0 175250 0 0 0 DENISE BAILEY DIRECTOR OF NURSING LTC 113017 0 11853 0 1217 0 3782 0 33045 0 162914 0 7500 0 DIANE BERI ASSOCIATE ADMINISTRATOR LTC 121827 0 12273 0 1929 0 3908 0 10732 0 150669 0 7800 0 PART I, LINE 3 BEAUMONT HEALTH, THE PARENT CORPORATION AND SOLE MEMBER OF BOTSFORD GENERAL HOSPITAL, WHICH IS THE SOLE MEMBER OF BOTSFORD CONTINUING CARE CORPORATION, USES THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL: - COMPENSATION COMMITTEE - INDEPENDENT COMPENSATION CONSULTANT - COMPENSATION SURVEY OR STUDY - APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 7 SCHEDULE J, PART I, LINE 7, IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, RECEIVED A NONFIXED PAYMENT DURING THE YEAR. THE NON-FIXED PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN C. PART I, LINE 4B: ALTHOUGH BEAUMONT HEALTH IS THE STATUTORY EMPLOYER OF MOST OF THE SYSTEM EMPLOYEES, BEAUMONT HEALTH IS NOT THE COMMON LAW EMPLOYER OF MOST, IF NOT ALL, OF THE EMPLOYEES. THE EMPLOYEES ARE REPORTED ON THE FORM 990 OF THEIR COMMON LAW EMPLOYER. ITS SUPPORTED ORGANIZATIONS PROVIDE CERTAIN SUPPLEMENTAL RETIREMENT BENEFITS TO CERTAIN OFFICERS, KEY EMPLOYEES AND PHYSICIANS. THESE BENEFITS ARE PROVIDED THROUGH A NON-QUALIFIED DEFERRED COMPENSATION PLAN, UNDER WHICH THE BENEFITS BEING EARNED ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. TO BECOME ENTITLED TO THE BENEFITS BEING PROVIDED, EACH COVERED EMPLOYEE MUST MEET SPECIFIED REQUIREMENTS RELATING TO FURTHER EMPLOYMENT. UNTIL THOSE REQUIREMENTS ARE SATISFIED, THE EMPLOYEE IS NOT ENTITLED TO THESE AMOUNTS. IF THE EMPLOYEE WERE TO HAVE TERMINATED EMPLOYMENT VOLUNTARILY IN THE YEAR TO WHICH THIS RETURN APPLIES, THOSE SUPPLEMENTAL RETIREMENT BENEFITS WOULD NOT HAVE BEEN PAID OUT. IT SHOULD BE NOTED THAT THESE SUPPLEMENTAL RETIREMENT BENEFITS ARE PART OF A RETIREMENT PROGRAM THAT PROVIDES RETIREMENT INCOME FOR ALL YEARS OF SERVICE THAT THE EMPLOYEE PROVIDES TO THE ORGANIZATION. ANY RETIREMENT BENEFITS SHOULD BE VIEWED AS APPLYING TO THE ENTIRE LENGTH OF THE EMPLOYEE'S SERVICE TO THE ORGANIZATION. THE FOLLOWING INDIVIDUAL(S) LISTED ON PART VII RECEIVED SUPPLEMENTAL NON-QUALIFIED PLAN PAYMENTS DURING THE CALENDAR YEAR: SUSAN GRANT, NON-QUALIFIED PLAN DISTRIBUTION, SERP 457(F): $86,409 PART II: EXECUTIVE COMPENSATION AT BEAUMONT HEALTH BACKGROUND BEAUMONT HEALTH'S EXECUTIVE COMPENSATION PHILOSOPHY AND PROGRAM ALIGNS WITH OUR STRATEGIC OBJECTIVES, WHICH CONTRIBUTE TO THE HEALTH AND WELL-BEING OF THE RESIDENTS THROUGHOUT THE COMMUNITIES WE SERVE. AS BEAUMONT LOOKS TO RETAIN STRONG TALENT IN BOTH EXECUTIVE AND NON-EXECUTIVE POSITIONS ACROSS THE ORGANIZATION, SIMILAR PHILOSOPHIES ARE UTILIZED, WHICH ALIGN WITH OUR ORGANIZATIONAL VALUES OF COMPASSION, RESPECT, INTEGRITY, TEAMWORK, AND EXCELLENCE. TO SUCCESSFULLY LEAD SUCH A LARGE, COMPLEX ORGANIZATION LIKE BEAUMONT HEALTH, HIGHLY TALENTED EXECUTIVE LEADERSHIP IS ESSENTIAL. SUCCESSFUL RECRUITING, RETENTION, AND MOTIVATION OF LEADERS REQUIRES NATIONALLY COMPETITIVE COMPENSATION AND BENEFITS. BEAUMONT ALSO CONSIDERS RECRUITING EXECUTIVE LEADERS WHO COULD CHOOSE POSITIONS IN INDUSTRY SECTORS OTHER THAN HEALTH CARE. BASED ON A RIGOROUS OBJECTIVE METHODOLOGY, INCLUDING REVIEW OF AN INDEPENDENT CONSULTANT'S WRITTEN REASONABLENESS ASSESSMENT OPINION AND THEIR NATIONAL MARKET DATA FROM OTHER HEALTH SYSTEMS, ASSESSMENT OF JOB RESPONSIBILITIES, EVALUATION OF QUALIFICATIONS, AND REVIEW AND APPROVAL BY A BOARD COMMITTEE COMPRISED OF INDEPENDENT AND DISINTERESTED DIRECTORS, BEAUMONT HEALTH IS CONFIDENT THAT OUR EXECUTIVES' 2021 COMPENSATION IS BOTH COMPETITIVE AND REASONABLE. PHILOSOPHY OUR EXECUTIVE COMPENSATION PROGRAMS ARE BASED ON THE FOLLOWING KEY ATTRIBUTES: - BEAUMONT PROVIDES MARKET COMPETITIVE COMPENSATION AND BENEFITS THAT ARE COMMONLY PROVIDED BY HEALTH SYSTEMS OF OUR SIZE AND COMPLEXITY. BEAUMONT EXECUTIVE COMPENSATION IS ALSO ALIGNED WITH THE PERFORMANCE OF THE ORGANIZATION. - PERFORMANCE METRICS ARE TIED TO KEY STRATEGIC OBJECTIVES - MOST OF AN EXECUTIVE'S COMPENSATION AT BEAUMONT IS DEPENDENT ON HOW THE ORGANIZATION PERFORMS ON KEY GOALS AND METRICS INCLUDING PATIENT SAFETY, QUALITY OF CARE, AND PATIENT EXPERIENCE AND SATISFACTION. AS SUCH, A SUBSTANTIAL PORTION OF AN EXECUTIVE'S INCENTIVE PAY IS 'AT-RISK' (NOT GUARANTEED) BASED ON ORGANIZATIONAL PERFORMANCE. SOME OF THE 'AT RISK' PAY IS AWARDED OVER A MULTI-YEAR PERIOD AND THERE ARE NO GUARANTEES THE ENTIRE AMOUNT WILL BE PAID. THE EXECUTIVE'S ACTUAL TAKE HOME PAY IN ANY GIVEN YEAR MIGHT BE LESS THAN THE TOTAL COMPENSATION AS REPORTED ON THE 990 IF THE ORGANIZATION'S OBJECTIVES OVER MULTIPLE YEARS ARE NOT ACHIEVED. FURTHER, COLUMN E OF SCHEDULE J OF THE 990 CAN BE EASILY MISINTERPRETED AND IS OFTEN OVERSTATED DUE TO COUNTING COMPENSATION ACCRUED IN A GIVEN YEAR, BUT NOT YET VESTED. TO AVOID INADVERTENTLY "DOUBLE COUNTING" COMPENSATION, THE BEST REFLECTION OF A SINGLE YEAR'S COMPENSATION IS SCHEDULE J COLUMN B TOTALING COLUMNS (I) THROUGH (III) FOR 2021, WHICH CONTAINS THE MOST ACCURATE SOURCE OF INFORMATION RELATED TO AN EXECUTIVE'S PAID COMPENSATION IN ANY GIVEN YEAR. YEAR TO YEAR, AN EXECUTIVE'S TOTAL COMPENSATION WILL VARY BASED ON ORGANIZATIONAL PERFORMANCE AS WELL AS THE SCHEDULED TIMING OF PAYMENTS OF AMOUNTS EARNED BUT NOT YET VESTED IN EARLIER YEARS. GOVERNANCE OF EXECUTIVE COMPENSATION BEAUMONT IS COMMITTED TO MAINTAINING HIGH STANDARDS OF CORPORATE GOVERNANCE. OUR CORPORATE GOVERNANCE PROCESS IS COMPLIANT, TRANSPARENT AND ENSURES COMPENSATION IS ADMINISTERED IN A FAIR AND EQUITABLE MANNER CONSISTENT WITH IRS GUIDELINES. EXECUTIVE COMPENSATION IS GOVERNED BY THE ORGANIZATION AND COMPENSATION COMMITTEE (OCC) OF THE BOARD OF DIRECTORS OF BEAUMONT HEALTH, THE PARENT ORGANIZATION OF A MULTI-ENTITY HEALTH SYSTEM. THE COMMITTEE IS COMPRISED OF INDEPENDENT BOARD MEMBERS WHO HAVE NO CONFLICTS OF INTEREST AS IT RELATES TO THE ORGANIZATION'S EXECUTIVE COMPENSATION. THE COMMITTEE IS RESPONSIBLE FOR: - REVIEWING, VALIDATING AND APPROVING PERFORMANCE GOALS AND METRICS RELATED TO THE EXECUTIVE'S AT-RISK COMPENSATION PLANS. - REVIEWING, VALIDATING AND APPROVING PERFORMANCE ACHIEVED ON THE EXECUTIVE AT-RISK COMPENSATION PLANS. - REVIEWING AND APPROVING COMPENSATION FOR EACH MEMBER OF THE ORGANIZATION'S SENIOR LEADERSHIP TEAM. - ENSURING COMPENSATION IS REASONABLE AND APPROPRIATE BASED ON PERFORMANCE ACHIEVED AND THE ORGANIZATION'S MISSION. THE INDEPENDENT COMMITTEE ALSO RECEIVES SUPPORT FROM OUTSIDE ADVISORS WITH EXPERTISE IN HEALTH CARE ORGANIZATIONS AND EXECUTIVE COMPENSATION. FORM 990, PART VI, SECTION A, LINE 6 BOTSFORD GENERAL HOSPITAL, A WHOLLY-OWNED SUBSIDIARY OF BEAUMONT HEALTH, IS THE CORPORATE MEMBER OF BOTSFORD CONTINUING CARE CORPORATION. FORM 990, PART VI, SECTION A, LINE 7A BEAUMONT HEALTH IS THE PARENT CORPORATION AND SOLE MEMBER OF BOTSFORD GENERAL HOSPITAL, WHICH IS THE SOLE MEMBER OF BOTSFORD CONTINUING CARE CORPORATION. BOTSFORD GENERAL HOSPITAL, ACTING SOLELY AT THE DIRECTION OF THE PARENT, HAS THE RIGHT TO ELECT ONE OR MORE MEMBERS OF BOTSFORD CONTINUING CARE CORPORATION'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B BEAUMONT HEALTH, AS THE PARENT OF BOTSFORD GENERAL HOSPITAL, AND BOTSFORD GENERAL HOSPITAL, AS THE CORPORATE MEMBER OF BOTSFORD CONTINUING CARE CORPORATION, HAVE DESIGNATED RESERVED POWERS OVER BOTSFORD CONTINUING CARE CORPORATION'S OPERATIONS, INCLUDING BUT NOT LIMITED TO BUDGET, ACQUISITIONS, CAPITAL PROJECTS, AND PARTICIPATION IN JOINT VENTURES. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 WAS SUBJECTED TO A MULTI-STEP REVIEW PROCESS PRIOR TO FILING WITH THE GOVERNMENT BY THE STATUTORY DUE DATE. FORM 990 IS PREPARED BY BEAUMONT HEALTH'S INTERNAL TAX DEPARTMENT, REVIEWED BY ITS MANAGEMENT, AND SUBSEQUENTLY REVIEWED BY THE FILING ENTITY'S PAID PREPARER. AS THE FINAL STEP IN THIS REVIEW PROCESS, A COPY OF THE FINAL FILING VERSION OF FORM 990 IS PROVIDED TO EACH VOTING MEMBER OF THE FILING ENTITY'S GOVERNING BODY FOR THEIR REVIEW PRIOR TO THE FORM BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C BEAUMONT HEALTH, THE PARENT CORPORATION AND SOLE MEMBER OF BOTSFORD GENERAL HOSPITAL, WHICH IS THE SOLE MEMBER OF BOTSFORD CONTINUING CARE CORPORATION, RECOGNIZES THAT IT HAS AN OBLIGATION TO ITS PATIENTS, ITS PAYORS, ITS DESIGNEES AND THE COMMUNITIES IT SERVES TO OBSERVE THE HIGHEST LEVEL OF INTEGRITY TO ENSURE CLINICAL, BUSINESS AND ACADEMIC DECISION MAKING IS NOT COMPROMISED BY FINANCIAL OR OTHER RELATIONSHIPS WITH INDUSTRY. THE CORPORATE COMPLIANCE OFFICE, WITH THE ASSISTANCE OF HUMAN RESOURCES AND SPECIFIC INDIVIDUAL DEPARTMENTS, WILL COORDINATE UPON HIRE AND EACH CALENDAR YEAR THEREAFTER, A PROCESS OF OBTAINING CONFLICT OF INTEREST/DISCLOSURE OF REMUNERATION STATEMENTS. ALL AREAS OF THE INSTITUTION WILL FOLLOW THE HUMAN RESOURCES HIRING PROCESS PROTOCOL TO ASSURE COMPLIANCE WITH THE CONFLICT OF INTEREST PROGRAM. AT ANY TIME WHEN A DESIGNEE BECOMES INVOLVED IN A RELATIONSHIP THAT IS OR MAY BE PERCEIVED TO BE A CONFLICT OF INTEREST, THE DESIGNEE MUST COMPLETE THE CONFLICT OF INTEREST/DISCLOSURE OF REMUNERATION STATEMENT AND FORWARD TO THE CORPORATE COMPLIANCE OFFICER. A CONFLICT OF INTEREST OR NEED TO DISCLOSE REMUNERATION MAY EXIST IF A BEAUMONT DESIGNEE OR ANY MEMBER OF THEIR IMMEDIATE FAMILY RECEIVES COMPENSATION IN ANY FORM FOR SERVICES RENDERED IN ANY CAPACITY TO ANY ORGANIZATION OR INDIVIDUAL THAT HAS ANY PAST, PRESENT OR PROSPECTIVE BUSINESS DEALINGS WITH BEAUMONT, IF SUCH COMPENSATION MIGHT BE REASONABLY CONSTRUED AS TENDING TO PREVENT THE DESIGNEE FROM ACTING SOLELY AND WHOLLY IN THE BEST INTEREST OF BEAUMONT HEALTH. FORM 990, PART VI, SECTION B, LINE 15 BEAUMONT HEALTH'S BOARD OF DIRECTORS, OF WHICH BOTSFORD CONTINUING CARE CORPORATION IS AFFILIATED, HAS DULY APPOINTED AN ORGANIZATION AND COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF COMPENSATION AND BENEFITS PROVIDED TO BEAUMONT AND ITS AFFILIATED MEMBERS' EXECUTIVE MANAGEMENT TEAMS. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND OTHER OFFICERS. THE COMMITTEE REVIEWS ALL ASPECTS OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE MEETS FOUR TIMES A YEAR, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS OF SIX MEMBERS, ALL OF WHOM ARE DISINTERESTED MEMBERS OF THE BOARD OF DIRECTORS. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. THE COMMITTEE HAS EXPRESSLY DETERMINED THAT THE TOTAL COMPENSATION PROVIDED IS REASONABLE, BASED ON THE REVIEW OF THE MARKET DATA PRESENTED BY THE INDEPENDENT COMPENSATION CONSULTANT AND ON THE REVIEW OF ALL OTHER RELEVANT FACTS AND CIRCUMSTANCES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION WILL PROVIDE ANY DOCUMENTS THAT ARE REQUIRED TO BE OPEN FOR PUBLIC INSPECTION TO THE PUBLIC UPON REQUEST. PART VII, SECTION B, LINE 2: THE HEALTH SYSTEM HAS A CENTRALIZED ACCOUNTS PAYABLE FUNCTION, AND AS SUCH, ALL 1099'S ARE ISSUED BY BEAUMONT HEALTH. FORM 990, PART IX, LINE 11G CONTRACTED DIETARY SERVICES: PROGRAM SERVICE EXPENSES 1,831,359. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,831,359. CONTRACTED NURSING SERVICES: PROGRAM SERVICE EXPENSES 1,186,299. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,186,299. CONTRACTED THERAPY AND OTHER SERVICES: PROGRAM SERVICE EXPENSES 701,907. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 701,907. SERVICES AGREEMENTS: PROGRAM SERVICE EXPENSES 236,841. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 236,841. CONTRACTED COURIER SERVICES: PROGRAM SERVICE EXPENSES 13,044. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,044. CONTRACTED RADIOLOGY SERVICES: PROGRAM SERVICE EXPENSES 16,144. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 16,144. OTHER PROGRAM SERVICES: PROGRAM SERVICE EXPENSES -255,173. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES -255,173. FORM 990, PART XI, LINE 9: MERGER EQUITY 69,663. TRANSFER TO AFFILIATES -6,890,916. BEAUMONT HEALTH 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 465718220 PARENT COMPANY OF THE HEALTH SYSTEM MI 501(C)(3) 12C, III-FI N/A 0 BEAUMONT MEDICAL TRANSPORTATION SERVICE 950 W MAPLE SUITE C TROY MI 48084 260203703 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 10 BEAUMONT HEALTH 1 BOTSFORD GENERAL HOSPITAL 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 381426919 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 BH GRAND RIVER SOUTHFIELD INC 25400 W EIGHT MILE ROAD SOUTHFIELD MI 48033 382410823 EMERGENCY MEDICAL SERVICES MI 501(C)(3) 10 BOTSFORD GENERAL HOSPITAL 1 MICHIGAN MOBILE PET IMAGING 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 331086165 MOBILE PET SCANNING MI 501(C)(3) 12A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTHCARE INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 381405141 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 OAKWOOD UNITED HOSPITALS INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 382837961 FACILITY LEASING MI 501(C)(3) 12A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HOME CARE SERVICES 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 382877338 HOME HEALTH SERVICES MI 501(C)(3) 10 OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTH PROMOTIONS INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 382601965 ASSISTED AND RESIDENT CARE FACILITIES MI 501(C)(3) 10 OAKWOOD HEALTHCARE INC 1 WILLIAM BEAUMONT HOSPITAL 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 381459362 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 BEAUMONT HEALTH FOUNDATION 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 364852171 FOUNDATION MI 501(C)(3) 7 BEAUMONT HEALTH 1 BEAUMONT MEDICAL GROUP-HOSPITAL BASED SERVICES 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 822768899 PHYSICIAN SUPPORT SERVICES MI 501(C)(3) 10 BEAUMONT HEALTH 1 BEAUMONT MEDICAL GROUP-PRIMARY CARE SERVICES 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 822796539 PHYSICIAN SUPPORT SERVICES MI 501(C)(3) 10 BEAUMONT HEALTH 1 BEAUMONT MEDICAL GROUP-SPECIALTY SERVICES 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 822784244 PHYSICIAN SUPPORT SERVICES MI 501(C)(3) 10 BEAUMONT HEALTH 1 DEARBORN SCHAEFFER OFFICE COMPANY LLC 26901 BEAUMONT BOULEVARD SOUTHFIELD MI 48033 262448025 REAL ESTATE MI N/A 0 0 OAKMED LLC 1938 WOODSLEE DRIVE TROY MI 48083 461459737 PRIVATE DUTY NURSING MI N/A 0 0 BEAUMONT INDEMNITY COMPANY LTD 23 LIME TREE BAY AVENUE GRAND CAYMAN GRAND CAYMAN CJ 980512415 PREMIUM DEPOSITS CJ N/A C 1 BEAUMONT NURSING HOME SERVICES INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 382799842 ASSISTED CARE LIVING MI N/A C 1 BEAUMONT PHYSICIANS INSURANCE COMPANY INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 274261262 PROFESSIONAL INSURANCE MI N/A C 1 BOTSFORD COMMONS PROPERTY ASSOCATION 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 383203663 PROPERTY MANAGEMENT MI BOTSFORD CONTINUING CARE CORPORATION C 504097 232339 1.00000 1 OAKWOOD AFFILIATED VENTURES INC AND SUBSIDIARIES 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 371753159 OFFICE OF PHYSICIANS/NON-RESIDENTAL MI N/A C 1 BH SOUTHFIELD BILLING INC 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 382755982 MANAGEMENT DISPATCH SERVICES MI N/A C 1 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 1 0 1 1 WILLIAM BEAUMONT HOSPITAL R 31233452 FMV BOTSFORD GENERAL HOSPITAL S 3766969 FMV BEAUMONT HEALTH FOUNDATION P 132443 FMV WILLIAM BEAUMONT HOSPITAL E 67712457 FMV BEAUMONT HEALTH E 7708172 FMV BOTSFORD GENERAL HOSPITAL O 283221 FMV