2018-11-15T08:54:36-06:00 2017-12-31 861065772 DELOITTE TAX LLP 200 RENAISSANCE CENTER STE 3900 DETROIT MI 482431313 990 2017-01-01 465718220 BEAUMONT HEALTH BEAU 2482133334 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 CHRISTOPHER HARRISON SVP FINANCE - BEAUMONT HEALTH 2482133334 2018-11-14 1 LORI BOYCE P00121981 3133963000 68.55.79.84 2018-11-14 18:53:46 ES P 78A4C4F87B604C240469A634FCB01368FEDB2C97 B1F6754162BA34960FF6E5961467431CD3790A95 2017 2019-02-21 02:37:17Z X JOHN T FOX 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 36504085 0 X WWW.BEAUMONT.ORG X 2014 MI TO PROVIDE OVERSIGHT AND LONG TERM STRATEGIC MANAGEMENT OF BEAUMONT HEALTH'S SUPPORTED ORGANIZATIONS, IN ORDER TO ENHANCE THEIR ABILITY TO CONTINUE 1) TO PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTHCARE SERVICES IN A CARING ENVIRONMENT, AND 2) TO BE AN ESSENTIAL CONTRIBUTOR TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES, REGARDLESS OF THEIR FINANCIAL CIRCUMSTANCES IN THE COMMUNITIES SERVED. 21 14 0 14 0 0 0 0 0 36504085 0 0 0 0 0 36504085 0 0 0 0 0 26862397 0 0 0 0 9641688 0 36504085 0 0 838060985 895330702 838060985 895330702 0 0 X TO PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTHCARE SERVICES IN A CARING ENVIRONMENT AND TO BE AN ESSENTIAL CONTRIBUTOR TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES, REGARDLESS OF THEIR FINANCIAL CIRCUMSTANCES, IN THE COMMUNITIES SERVED BY BEAUMONT HEALTH'S SUPPORTED ORGANIZATIONS. 0 0 36504085 39903365 BEAUMONT HEALTH, A MICHIGAN NON-PROFIT CORPORATION, IS THE PARENT CORPORATION OVERSEEING THE TAX-EXEMPT HEALTHCARE SYSTEMS OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC., AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). THROUGH ITS OVERSIGHT, BEAUMONT HEALTH AND ITS SUPPORTED ORGANIZATIONS PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTH SERVICES IN A CARING ENVIRONMENT, FURNISH CHARITY CARE AND COMMUNITY SERVICE, AND ARE ESSENTIAL CONTRIBUTORS TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES IN THE COMMUNITIES SERVED BY THE SUPPORTED ORGANIZATIONS. BEAUMONT HEALTH MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE THROUGH PROVIDING LONG-RANGE AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES. 36504085 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 1 3197 0 1 0 0 0 0 0 0 0 0 0 0 0 X 21 14 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X DONNA ZUK 9475521514 26935 NORTHWESTERN HWY SOUTHFIELD MI 48033 CHRISTOPHER BLAKE DIRECTOR 2.00 8.00 X 0 0 0 GERSON COOPER VICE-CHAIRMAN 2.00 10.00 X 0 0 0 WILLIAM GOLDSMITH START 317 DIRECTOR 2.00 8.00 X 0 0 0 RONALD HALL START 217 DIRECTOR 2.00 8.00 X 0 0 0 MALCOLM HENOCH MD DIRECTOR 42.00 8.00 X 0 841699 229061 STEPHEN HOWARD VICE-CHAIRMAN 2.00 8.00 X 0 0 0 JOHN LEWIS CHAIRMAN 2.00 8.00 X 0 0 0 HARRIS MAINSTER DO DIRECTOR 2.00 8.00 X 0 0 0 TIMOTHY O'BRIEN DIRECTOR 2.00 8.00 X 0 0 0 ALICIA BOLER START 1117 DIRECTOR 2.00 8.00 X 0 0 0 GEOFFREY HOCKMAN START 617 DIRECTOR 2.00 10.00 X 0 0 0 MARTHA QUAY DIRECTOR 2.00 8.00 X 0 0 0 THOMAS SAELI DIRECTOR 2.00 8.00 X 0 0 0 DAVID WOOD MD EVP & CHIEF MEDICAL OFFICER 42.00 8.00 X 0 1159934 475658 JOHN FOX PRESIDENT & CHIEF EXECUTIVE OFFICER 40.00 10.00 X X 0 3931050 1743792 JULIE FREAM SECRETARY 2.00 8.00 X X 0 0 0 JOHN NEMES TREASURER 2.00 8.00 X X 0 0 0 JOHN KERNDL EVP & CFO 42.00 8.00 X 0 870979 395973 BRIAN CONNOLLY PRES NET DEVELOP & FUTURE INITIATIVES - FORMER 0.00 0.00 X 0 2183083 1400 JOHN KEUTEN EVP & CHIEF FINANCIAL OFFICER - FORMER 0.00 0.00 X 0 924993 0 EUGENE MICHALSKI PRESIDENT & CHIEF EXECUTIVE OFFICER - FORMER 0.00 0.00 X 0 421236 0 0 10332974 2845884 0 1 1 0 CARDINAL HEALTH 7000 CARDINAL PLACE DUBLIN OH 43017 PHARMACEUTICALS 270421009 MEDTRONIC US INC 710 MEDTRONIC PARKWAY MINNEAPOLIS MN 55432 INFORMATION TECHNOLOGY SERVICES 39020087 BARTON MALOW CO 26500 AMERICAN DRIVE SOUTHFIELD MI 48034 CONSTRUCTION SERVICES 30433748 OWENS & MINOR INC 9120 LOCKWOOD BOULEVARD MECHANICSVILLE VA 23116 HEALTHCARE SERVICES 25625745 BOSTON SCIENTIFIC CORP 300 BOSTON SCIENTIFIC WAY MARLBOROUGH MA 01752 HEALTHCARE SERVICES 23619808 576 PROG ADMIN SUPPORT SVC 561000 36504085 36504085 36504085 36504085 36504085 0 0 X 26054312 26054312 254946 254946 553139 553139 1799758 1799758 3909303 3909303 1638 1638 4735 4735 762383 762383 36006 36006 54289 54289 BANK SERVICE CHARGES 1980202 1980202 MAINTENANCE AND REPAIRS 828395 828395 264979 264979 36504085 36504085 0 0 838060985 895330702 838060985 895330702 838060985 823888602 71442100 838060985 895330702 X 0 0 0 838060985 895330702 0 0 X 0 1 X 1 0 X X 3 WILLIAM BEAUMONT HOSPITAL 381459362 3 1 0 22625995 OAKWOOD HEALTHCARE INC 381405141 3 1 0 10453441 BOTSFORD GENERAL HOSPITAL 381426919 3 1 0 3424649 3 0 36504085 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 SCHEDULE A, PART IV, SECTION D, LINE 3: BEAUMONT HEALTH IS THE PARENT AND SUPPORTING ORGANIZATION OF AN INTEGRATED HEALTH CARE SYSTEM CONSISTING OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC., AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE INCLUDING PROVIDING LONG-TERM AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES THAT ALLOW THE SUPPORTED ORGANIZATIONS TO FUNCTION AS AN INTEGRATED HEALTH CARE DELIVERY SYSTEM. BEAUMONT HEALTH'S GOVERNING BODY IS COMPOSED OF AT LEAST ONE OR MORE MEMBERS OF THE GOVERNING BODIES OF EACH OF THE SUPPORTED ORGANIZATIONS. IN ADDITION, THERE IS AN OVERLAP OF OFFICERS BETWEEN ORGANIZATIONS TO HELP ENSURE THAT THERE IS A CLOSE AND CONTINUOUS WORKING RELATIONSHIP WITH EACH SUPPORTED ORGANIZATION. THE SUPPORTED ORGANIZATIONS HAVE A SIGNIFICANT VOICE IN BEAUMONT HEALTH'S OPERATIONS, INCLUDING THE USE OF ITS INCOME AND ASSETS. FOR EXAMPLE, BUDGETS ARE SUBMITTED BY THE SUPPORTED ORGANIZATIONS TO BEAUMONT HEALTH FOR APPROVAL. THIS SUBMISSION ALLOWS THE SUPPORTED ORGANIZATIONS TO ARTICULATE THEIR NEEDS (BUDGETING, CAPITAL ACQUISITIONS, OPERATING CASH FLOW NEEDS, ETC.) FOR CONSIDERATION OF FUNDING. IN ADDITION, THE SUPPORTED ORGANIZATIONS HAVE INPUT INTO ALL THE INVESTMENT POLICIES OF BEAUMONT HEALTH THROUGH EACH SUPPORTED ORGANIZATION'S PRESENCE ON THE GOVERNING BOARD OF BEAUMONT HEALTH. SCHEDULE A, PART IV, SECTION E, LINE 3A: BEAUMONT HEALTH IS SOLELY RESPONSIBLE FOR THE DIRECT APPOINTMENT OR ELECTION OF THE OFFICERS, DIRECTORS AND TRUSTEES OF EACH OF THE SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E, LINE 3B: BEAUMONT HEALTH IS ORGANIZED TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC. AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH FUNCTIONS AS AN INTEGRATED OPERATING COMPANY THAT MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE, INCLUDING PROVIDING LONG-RANGE AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES THAT CAUSE THE SUPPORTED ORGANIZATIONS TO FUNCTION AS AN INTEGRATED HEALTH CARE DELIVERY SYSTEM. BEAUMONT HEALTH IS RESPONSIBLE FOR THE OVERALL COORDINATION AND SUPERVISION OF THE HEALTH SYSTEM'S SUPPORTED ORGANIZATIONS AND IS RESPONSIBLE FOR APPROVAL OF THE SUPPORTED ORGANIZATIONS' BUDGETS, STRATEGIC PLANNING, MARKETING, RESOURCE ALLOCATION AND COMMUNITY BENEFIT ACTIVITIES. BEAUMONT HEALTH ALSO IS RESPONSIBLE FOR THE MANAGEMENT AND INVESTMENT OF THE ENDOWMENTS OF THE SUPPORTED ORGANIZATIONS. SCHEDULE A, PART I, LINE 12 G, COLUMN (VI): BEAUMONT HEALTH IS ORGANIZED TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT PURPOSE OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC. AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH PROVIDED EACH OF ITS SUPPORTED ORGANIZATIONS WITH ADMINISTRATIVE SUPPORT SERVICES FOR ALL OPERATIONAL ACTIVITIES. 0 1 1 0 DEBT RECEIVABLE FROM AFFILIATES 895330702 895330702 1 1 0 0 0 0 0 0 0 MALCOLM HENOCH MD DIRECTOR 0 469322 0 361297 0 11080 0 214311 0 14750 0 1070760 0 0 DAVID WOOD MD EVP & CHIEF MEDICAL OFFICER 0 708426 0 423904 0 27604 0 459312 0 16346 0 1635592 0 0 JOHN FOX PRESIDENT & CHIEF EXECUTIVE OFFICER 0 1767133 0 2101487 0 62430 0 1728945 0 14847 0 5674842 0 0 JOHN KERNDL EVP & CFO 0 666977 0 200000 0 4002 0 376747 0 19226 0 1266952 0 0 BRIAN CONNOLLY PRES NET DEVELOP & FUTURE INITIATIVE 0 0 0 813452 0 1369631 0 0 0 1400 0 2184483 0 0 JOHN KEUTEN EVP & CHIEF FINANCIAL OFFICER - FORM 0 0 0 334231 0 590762 0 0 0 0 0 924993 0 0 EUGENE MICHALSKI PRESIDENT & CHIEF EXECUTIVE OFFICER 0 0 0 0 0 421236 0 0 0 0 0 421236 0 0 PART I, LINE 3 BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC., AND WILLIAM BEAUMONT HOSPITAL, RELATED TAX-EXEMPT ORGANIZATIONS OF BEAUMONT HEALTH, USE THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE ORGANIZATIONS TOP MANAGEMENT OFFICIALS: - COMPENSATION COMMITTEE - INDEPENDENT CONSULTANTS - WRITTEN EMPLOYMENT CONTRACTS - COMPENSATION SURVEYS AND STUDIES - APPROVAL BY BOARD OR COMPENSATION COMMITTEE SCHEDULE J, PART I, LINE 4A FOR SOME INDIVIDUALS, THE EMPLOYMENT AGREEMENT MAY PROVIDE IF THE EMPLOYER TERMINATES THE AGREEMENT AND THE PARTIES SEPARATE OTHER THAN FOR CAUSE, THE EMPLOYEE MAY BE ENTITLED TO SEVERANCE PAY. THE TERMS AND CONDITIONS TO RECEIVE SEVERANCE PAYMENTS REQUIRE THE EMPLOYEE TO SIGN A RELEASE OF CLAIMS FORM THAT COVERS ALL SITUATIONS SURROUNDING THE EMPLOYEE'S EMPLOYMENT AND SEPERATION FROM THE COMPANY. SEVERANCE PAYMENTS MADE BY BEAUMONT HEALTH DURING 2017 INCLUDE PAYMENTS TO THE FOLLOWING INDIVIDUALS: BRIAN CONNOLLY, SEVERANCE PAYMENT: $850,013 JOHN KEUTEN, SEVERANCE PAYMENT: $590,762 EUGENE MICHALSKI, SEVERANCE PAYMENT: $417,426 SCHEDULE J, PART I, LINE 4B BEAUMONT HEALTH HAS NO EMPLOYEES. 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. BRIAN CONNOLLY, NON-QUALIFIED PLAN DISTRIBUTION, SERP 457(F)$462,929 A MICHIGAN FINANCE AUTHORITY 800596186 59447P6N6 2015-01-28 469258819 SEE PART VI. 0 0 0 B MICHIGAN FINANCE AUTHORITY 800596186 59447THE3 2016-02-04 323514381 SEE PART VI. 0 0 0 C MICHIGAN FINANCE AUTHORITY 800596186 000000000 2016-12-08 65000000 SEE PART VI. 0 0 0 A 2555000 469258819 4104287 465154532 2015 0 0 1 1 B 324866726 2521713 101456424 220888589 0 0 0 1 C 65000000 36646 64963354 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 A 0 1 0 0 0 0 0 0 0 B 0 1 0 0 0 0 0 0 0 C 0 1 0 0 1 0 0 0 0 A 0 B 0 C 0 PART I, LINE I, COLUMN F: BOND A - BEAUMONT HEALTH SERIES 2015A. TO ACQUIRE ASSETS OF WILLIAM BEAUMONT HOSPITAL, BOTSFORD GENERAL HOSPITAL, AND OAKWOOD HOSPITAL, INC. BOND C - BEAUMONT HEALTH SERIES 2016B. TO REFUND BONDS ISSUED 12/19/2012. BOND B - BEAUMONT HEALTH SERIES 2016A. THE PROCEEDS OF THE BOND CONSISTS OF THE FINANCING OR REFINANCING OF THE COSTS OF ACQUIRING, CONSTRUCTING, AND RENOVATING CERTAIN HOSPITAL AND HEALTH FACILITIES INCLUDING, AMONG OTHER PROJECTS: EMERGENCY CENTER EXPANSION AT BEAUMONT, ROYAL OAK, THE MASTER FACILITY EXPANSION AND RENOVATION PLAN AT BEAUMONT, FARMINGTON HILLS, AND THE RENOVATION OF THE 1ST FLOOR OPERATING ROOM AT BEAUMONT, TROY. BOND C - BEAUMONT HEALTH SERIES 2016B. TO REFUND BONDS ISSUED 12/19/2012. FORM 990, PART IV, LINE 10: 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. 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: - JOHN FOX - JOHN KERNDL - PAUL LACASSE, DO - GERSON COOPER - JOHN NEMES - DAVID WOOD, MD - SAMUEL FLANDERS, MD 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 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 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 DIRECTOR'S 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 MANAGEMENTS 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 THE LISTED DOCUMENTS TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G VARIOUS OTHER: PROGRAM SERVICE EXPENSES 3,909,303. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,909,303. FORM 990, PART IX, LINE 20: BEAUMONT HEALTH IS A HEALTH SYSTEM PARENT ORGANIZATION. THE BONDS ISSUED FOR THE SYSTEM AS A WHOLE RESIDE ON THE BOOKS OF BEAUMONT HEALTH AND THE SCHEDULE K IS REPORTED HERE. HOWEVER, THE DEBT HAS BEEN ALLOCATED TO THE MEMBERS OF THE OBLIGATED GROUP THAT HAS USED THE BOND PROCEEDS. THE RELATED PRINCIPAL AND INTEREST EXPENSE ARE PAID BY THE OBLIGATED MEMBERS AND ARE REPORTED AS INTEREST EXPENSE ON THEIR RESPECTIVE BOOKS. BEAUMONT MEDICAL TRANSPORTATION SERVICE 950 W MAPLE SUITE C TROY MI 48084 260203703 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 10 WILLIAM BEAUMONT HOSPITAL 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 HEALTHLINK MEDICAL TRANSPORTATION SERVICES 26150 NORTHLINE ROAD TAYLOR MI 48180 383338298 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 10 COMMUNITY EMERGENCY MEDICAL SERVICE INC 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 OAKWOOD HEALTHCARE FOUNDATION 26901 BEAUMONT BLVD SOUTHFIELD MI 48033 383432073 FOUNDATION MI 501(C)(3) 12A, I 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) 12A, I 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 BEAUMONT KIDNEY SPECIALTY SERVICES LLC 26400 WEST TWELVE MILE ROAD SOUTHFIELD MI 48034 262200439 DIALYSIS SERVICES MI N/A BOTSFORD CARE PARTNERS LLC 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 454854213 HEALTHCARE SERVICES MI N/A 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 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 26935 NORTHWESTERN HIGHWAY SOUTHFIELD MI 48033 382799842 ASSISTED CARE LIVING MI N/A C 1 BEAUMONT PHYSICIANS INSURANCE COMPANY INC 26935 NORTHWESTERN HIGHWAY SOUTHFIELD MI 48033 274261262 PROFESSIONAL INSURANCE MI N/A C 1 BOTSFORD COMMONS PROPERTY ASSOCATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 383203663 PROPERTY MANAGEMENT MI N/A C 1 OAKWOOD AFFILIATED VENTURES INC AND SUBSIDIARIES 15500 LUNDY PARKWAY DEARBORN MI 48126 371753159 OFFICE OF PHYSICIANS/NON-RESIDENTAL MI N/A C 1 PARASTAR EMERGENCY SYSTEMS INC 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 382755982 MANAGEMENT DISPATCH SERVICES MI N/A C 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 WILLIAM BEAUMONT HOSPITAL Q 22625995 FMV OAKWOOD HEALTHCARE INC Q 10453440 FMV BOTSFORD GENERAL HOSPITAL Q 3424649 FMV OAKWOOD HEALTH PROMOTIONS INC D 23140448 FMV BOTSFORD CONTINUING CARE CORPORATION D 9415086 FMV