2020-11-16T15:40:08-06:00 2019-12-31 861065772 Deloitte Tax LLP 200 Renaissance Center Suite 3900 Detroit MI 48243 990 2019-01-01 822784244 Beaumont Medical Group - Specialty Services BEAU 9475221051 26901 Beaumont Blvd Southfield MI 48033 John Peetz VP Treasury 9475221051 2020-11-12 1 Alicia Janisch P00741382 3133963000 68.32.21.44 2020-11-12 14:30:46 ES P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 83E387FBD1AB6D18D445BB5A405FBA040310C20C 2019 2021-01-29 14:40:06Z David Wood 26901 Beaumont Blvd Southfield MI 48033 110896044 0 X www.beaumont.org X 2017 MI To provide medical services that meet the needs in the community for specialty care. 4 0 0 0 0 0 0 0 47107871 110896044 0 0 0 0 47107871 110896044 0 0 0 0 48686453 107822846 0 0 0 44821810 7182259 93508263 115005105 -46400392 -4109061 0 0 1946 1396 -1946 -1396 X Beaumont Medical Group - Specialty Services consists of physicians who provide patient care to patients in office settings and in the hospital setting such as operating rooms and intensive care units. Utilizing training and expertise in a specialized area of medicine they diagnose diseases and other medical issues and when appropriate, perform treatment to improve the patient's medical condition. They perform follow-up care and communicate with the patient's primary care physician as part of their overall health program. 0 0 115005105 110896044 Beaumont Medical Group - Specialty Services consists of physicians who provide patient care to patients in office settings and in the hospital setting such as operating rooms and intensive care units. Utilizing training and expertise in a specialized area of medicine they diagnose diseases and other medical issues and when appropriate, perform treatment to improve the patient's medical condition. They perform follow-up care and communicate with the patient's primary care physician as part of their overall health program. 115005105 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 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 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 X 4 0 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MI X Bonni Simmons 9475221913 26901 Beaumont Blvd Southfield MI 48033 Carolyn Wilson Secretary 2.00 54.00 X X 0 1575930 459595 David Wood MD President 2.00 62.00 X X 0 1171888 355952 John Kerndl Treasurer 2.00 64.00 X X 0 1056274 342754 James Lynch MD Director 2.00 54.00 X 0 701284 161229 Daniel Frattarelli MD President, BMG 15.00 35.00 X 0 641718 159805 Jonathan Maner SVP BH Phys., Exec. Dir.-BMG 15.00 35.00 X 0 536978 144530 0 5684072 1623865 0 0 1 0 0 Outpatient Ancillary 621990 110896044 110896044 110896044 110896044 110896044 0 0 102660865 102660865 867249 867249 2429431 2429431 1865301 1865301 5917200 5917200 3265 3265 5617 5617 1245535 1245535 Dues Memberships & Lic. 7185 7185 Corporate Allocation 64 64 3393 3393 115005105 115005105 0 0 0 0 1946 1396 1946 1396 X 46398446 -1396 -46400392 -1946 -1396 0 0 X -4109061 4109611 X 0 1 X 1 0 X 47107871 110896044 158003915 47107871 110896044 158003915 0 0 0 158003915 47107871 110896044 158003915 X 0 1 1 0 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 0 0 Carolyn Wilson Secretary 0 996642 0 554666 0 24622 0 445221 0 14374 0 2035525 0 419130 David Wood MD President 0 727137 0 411478 0 33273 0 339592 0 16360 0 1527840 0 310931 John Kerndl Treasurer 0 699977 0 348095 0 8202 0 315371 0 27383 0 1399028 0 285023 James Lynch MD Director 0 461730 0 231734 0 7820 0 138757 0 22472 0 862513 0 153700 Daniel Frattarelli MD President, BMG 0 502818 0 136278 0 2622 0 137293 0 22512 0 801523 0 130124 Jonathan Maner SVP BH Phys., Exec. Dir.-BMG 0 354007 0 179819 0 3152 0 117724 0 26806 0 681508 0 144432 Part I, Line 3 Beaumont Health, the parent corporation and sole member of Beaumont Medical Group - Specialty Services, uses the following to establish the compensation of the organization's top management official: - Compensation Committee - Independent Compensation Consultant - Written Employment Contract - Compensation Survey or Study - Approval by the board or compensation committee Part I, Line 4b Beaumont Health provides 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. No supplemental non-qualified plan payments were made during the year to any persons listed in Part VII. Part I, Line 5a: Beaumont Health, the parent corporation and sole member of Beaumont Medical Group - Specialty Services pays compensation on behalf of Beaumont Medical Group - Specialty Services. Beaumont Health has short-term and long-term incentive plans for executives, incentive awards are calculated based on the achievement of multiple targets, including the attainment of operating revenue targets. Part I, Line 5b: Beaumont Health is the parent corporation and sole member of Beaumont Medical Group - Specialty Services. Beaumont Health's operating revenue targets, used for purposes of determining short-term and long-term incentive awards for executives, include the revenues of Beaumont Health and its affiliate organizations. Part III: 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' 2019 compensation is both competitive and reasonable. Philosophy Our executive compensation programs are based on the following key attributes: - Programs are aligned to the market - 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. For example, when the organization achieved upper-quartile performance, the intent is to have executive pay aligned with market pay in the upper-quartile. Lower levels of performance results in lower levels of executive pay, including no incentive pay if the organization does not meet certain metrics. - 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 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 2019, 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 vested in earlier years. - General health and welfare programs are consistent with non-executives - in an effort to drive consistency, transparency, and fairness, Beaumont executives participate in the same health and welfare programs as other non-executive employees. 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 2 The following individuals have a business relationship because they are board members or shared officers of a taxable entity within the Beaumont Health System: James Lynch John Kerndl Carolyn Wilson, RN David Wood, MD Form 990, Part VI, Section A, line 6 Beaumont Medical Group - Specialty Services, is a wholly owned subsidiary of Beaumont Health. Form 990, Part VI, Section A, line 7a Beaumont Health is the parent corporation and sole member of Beaumont Medical Group - Specialty Services, acting solely at the direction of the parent, has the right to elect one or more members of Beaumont Medical Group - Specialty Services' governing body. Form 990, Part VI, Section A, line 7b Beaumont Health, as the corporate member of Beaumont Medical Group - Specialty Services, has designated reserved powers over Beaumont Medical Group - Specialty Services, its 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 Treasury Administration, reviewed by that department's 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 Beaumont Medical Group - Specialty Services, recognizes that it has an obligation to its physicians, 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 designees 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 statements 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 received 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 Beaumont Medical Group - Specialty Services 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. Form 990, Part XI, line 9: Transfer to Beaumont Health -43,020,944. Transfer from William Beaumont Hospital 1,123,763. Transfer from Botsford General Hospital 12,586,045. Transfer from Oakwood Healthcare, Inc. 33,420,747. FORM 990, PART VII, SECTION B, LINE 1: The health system has a centralized accounts payable function and, as such, all 1099's are issued by Beaumont Health. 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 Continuing Care Corporation 26901 Beaumont Blvd Southfield MI 48033 382549505 Long Term Nursing Care MI 501(c)(3) 10 Botsford General Hospital 1 Botsford General Hospital 26901 Beaumont Blvd Southfield MI 48033 381426919 Hospital MI 501(c)(3) 3 Beaumont Health 1 Community Emergency Medical Service 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 Dearborn Schaeffer Office Company LLC One Town Square Suite 1600 Southfield MI 48076 262448025 Real Estate MI N/A Oakmed LLC 1938 Woodslee Drive Troy MI 48083 461459737 Private Duty Nursing MI N/A Beaumont Kidney Specialty Services LLC 26400 West Twelve Mile Road Southfield MI 48034 262200439 Dialysis Services MI N/A 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 N/A C 1 Oakwood Affiliated Ventures Inc and Subsidiaries 26901 Beaumont Blvd Southfield MI 48033 371753159 Office of Physicians/Non-Residental MI N/A C 1 Parastar Emergency Systems Inc 26901 Beaumont Blvd Southfield MI 48033 382755982 Management Dispatch Services MI N/A C 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Beaumont Health R 43020944 FMV William Beaumont Hospital S 1123763 FMV Botsford General Hospital S 12586045 FMV Oakwood Healthcare Inc S 33420747 FMV