2018-11-14T16:55:11-05:00 2017-12-31 383133790 ANDREWS HOOPER PAVLIK PLC 4295 OKEMOS RD STE 200 OKEMOS MI 488646201 990 2017-01-01 364497604 SPARROW PHP SPAR 5173648400 PO BOX 30377 LANSING MI 48909 DENNIS REESE PRESIDENT/CEO - PHP 5173648400 2018-11-06 true MARK E HOOPER P00039887 5177060800 2018-11-06 167.68.16.49 2018-11-14 15:55:11 CS P 80068F944CACDA910C931033D0123EB22FEB5640 F54AA8E5C2852FAB473639AD7A0166FAFED196F4 2017 2019-02-21 02:37:17Z X DENNIS SWAN 1215 E MICHIGAN AVENUE LANSING MI 48912 25388 false X WWW.PHPMICHIGAN.COM X 2002 MI SPARROW PHP'S MISSION WAS TO IMPROVE THE HEALTH STATUS OF ITS MEMBERS BY FACILITATING QUALITY, COMPASSIONATE, ACCESSIBLE, AND COST EFFECTIVE HEALTHCARE. X 0 0 0 0 0 847726 0 284896 22571 413552 0 1546174 22571 0 130178 0 23197 0 0 0 878821 25898 1032196 25898 513978 -3327 12577811 0 891816 0 11685995 0 X SPARROW PHP'S MISSION WAS TO IMPROVE THE HEALTH STATUS OF ITS MEMBERS BY FACILITATING QUALITY, COMPASSIONATE, ACCESSIBLE, AND COST EFFECTIVE HEALTHCARE. false true SPARROW PHP (SPHP)WAS A NON-PROFIT HEALTH MAINTENANCE ORGANIZATION (HMO). SPHP USED A PRIMARY CARE CONCEPT FOR DELIVERING HEALTH CARE IN A HEALTH DELIVERY NETWORK (HDN) STRUCTURE. IT ARRANGED FOR THE PROVISION OF COMPREHENSIVE OUTPATIENT AND INPATIENT MEDICAL AND SURGICAL SERVICES TO MEMBERS AND THEIR QUALIFIED DEPENDENTS ON THE BASIS OF A FIXED PREPAID SUM WITHOUT REGARD TO THE FREQUENCY OR EXTENT OF SERVICES FURNISHED TO ANY PARTICULAR MEMBER OR QUALIFIED DEPENDENT. SPHP CONTRACTED WITH VARIOUS HDNS WHO PROVIDED HEALTHCARE SERVICES TO MEMBERS. SPHP'S COMMITMENT WAS TO DEVELOP AND DELIVER QUALITY MANAGED CARE PRODUCTS AT A REASONABLE COST FOR ITS MEMBERS. SPHP WAS OWNED BY PHYSICIAN HEALTH PLAN (PHP). PHYSICIANS HEALTH PLAN (PHP) IS OWNED BY SPARROW HEALTH SYSTEM (SPARROW) AND HOLDS A CERTIFICATE OF AUTHORITY AS AN HMO IN THE STATE OF MICHIGAN. EFFECTIVE DECEMBER 31, 2015 SPARROW PHP SOLD 100 PERCENT OF ITS MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. PHP GAINED APPROVAL FROM THE BOARD OF DIRECTORS AND COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES TO MERGE SPARROW PHP INTO PHP EFFECTIVE APRIL 2017. UPON THE MERGER, SPARROW PHP NO LONGER HELD A CERTIFICATE OF AUTHORITY AS AN AUTHORIZED HEALTH MAINTENANCE ORGANIZATION. false false false false false false false false true false false false false false false true true false false false false false false false false false false false true false false false false false false false false false false true false false true true false false true 0 0 0 false false false false false false X 0 0 false false false false true true true true true false false true true true true true true true true false MI X DENNIS REESE 5173648400 1400 E MICHIGAN AVENUE LANSING MI 48909 DENNIS REESE PRESIDENT/CE 0.00 40.00 X X 0 381833 50070 JAMES BUTLER III DIRECTOR 1.00 0.00 X 0 1368 0 GWEN HALL DIRECTOR 1.00 0.00 X 0 0 0 GEORGE SCHNEIDER CFO/COO - PH 0.00 40.00 X 0 326747 52333 DENNIS SWAN PRES/CEO - S 1.00 40.00 X 0 1479664 241534 2189612 343937 true true false 22100 22100 3288 2817 471 471 471 22571 22571 5851 5851 REMAINDER ON MBRSHP SALE 20047 20047 25898 0 25898 0 7647189 141164 4752115 37343 12577811 0 891816 891816 0 X 11685995 11685995 0 12577811 0 -3327 246783 -11929451 X false true X true false 3986792 114433 211750 15000 4297975 3707924 191313 102555 15000 3986792 3411165 361583 -49824 15000 3707924 3184706 200566 40893 15000 3411165 2926676 82387 187643 12000 3184706 1.00000 false true true -244259 -246783 -246783 2524 20047 20047 22571 5851 5851 20047 20047 25898 SCHEDULE D, PAGE 2, PART V, LINE 4 SPARROW PHP DOES NOT HOLD ENDOWMENTS. THE ENDOWMENTS ARE HELD BY SPARROW CLINTON HOSPITAL AND SPARROW FOUNDATION. SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF PHYSICIANS HEALTH PLAN, SPARROW CLINTON HOSPITAL AND SPARROW FOUNDATION. PHYSICIANS HEALTH PLAN IS THE SOLE MEMBER OF SPARROW PHP. THE ENDOWMENTS ARE MAINTAINED TO PROVIDE A PERMANENT SOURCE OF INCOME WITH THE STIPULATION THE PRINCIPAL IS KEPT INTACT IN PERPETUITY AND THE INCOME GENERATED FROM INVESTMENTS OF THE ENDOWMENT FUNDS CAN BE USED FOR THE PURPOSE ESTABLISHED BY THE ENDOWMENT. SCHEDULE D, PAGE 4, PART XI, LINE 4B MBRSHP LOSS INCLUDED IN REVENUE ON AFS 20,047 SCHEDULE D, PAGE 4, PART XII, LINE 4B MBRSHP LOSS INCLUDED IN REVENUE ON AFS 20,047 false false false true true true true true false DENNIS REESE PRESIDENT/CEO - PHP 319100 60539 2194 16050 34020 431903 GEORGE SCHNEIDER CFO/COO - PHP 281185 41996 3566 16050 36283 379080 DENNIS SWAN PRES/CEO - SHS 924728 487986 66950 185394 56140 1721198 SCHEDULE J, PAGE 1, PART I, LINE 3 SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF PHYSICIAN HEALTH PLAN AND PHP IS THE SOLE MEMBER OF SPARROW PHP. SPARROW HEALTH SYSTEM IS AN INTEGRATED NON-PROFIT ORGANIZATION THAT INCLUDES A NUMBER OF NON-PROFIT ENTITIES. THE METHODS SELECTED FOR DETERMINING THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR ARE METHODS WHICH ARE BEING USED BY ALL SPARROW HEALTH SYSTEM RELATED ENTITIES. SCHEDULE J, PAGE 1, PART I, LINE 5A THERE WERE NO INCENTIVE COMPENSATION ACCRUALS FOR 2017. THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WERE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES. SCHEDULE J, PAGE 1, PART I, LINE 5B THERE WERE NO INCENTIVE COMPENSATION ACCRUALS FOR 2017. THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WERE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES. SCHEDULE J, PAGE 1, PART I, LINE 6A THERE WERE NO INCENTIVE COMPENSATION ACCRUALS FOR 2017. THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WERE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES. SCHEDULE J, PAGE 1, PART I, LINE 6B THERE WERE NO INCENTIVE COMPENSATION ACCRUALS FOR 2017. THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WERE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES. SCHEDULE J, PAGE 1, PART I, LINE 7 COMPENSATION INCLUDES BOTH BASE AND VARIABLE COMPENSATION (NON-FIXED PAYMENTS). IN ACCORDANCE WITH ITS POLICIES, ALL ELEMENTS (BASE, VARIABLE, BENEFITS, AND PREREQUISITES) ARE COMPARED TO MARKET. SCHEDULE J, PART III DENNIS SWAN IS A FORMER BOARD MEMBER OF SPARROW PHP. MR. SWAN IS BEING COMPENSATED BY SPARROW HEALTH SYSTEM AND AFFILIATES FOR SERVICES PROVIDED TO SPARROW HEALTH SYSTEM AND AFFILIATES IN A POSITION OTHER THAN AS A BOARD MEMBER OF SPARROW PHP. THE BOARD MEMBER IS NOT BEING COMPENSATED FOR ANY PAST SERVICES PROVIDED TO SPARROW PHP. CASH & INVESTMENTS 2017-04-30 11853714 ACTUAL 382356288 PHYSICIANS HEALTH PLAN PO BOX 30377 LANSING MI 48909 4 RECEIVABLES 2017-12-31 75737 ACTUAL 382356288 PHYSICIANS HEALTH PLAN PO BOX 30377 LANSING MI 48909 4 false false false false true true true false SCHEDULE N DURING THE YEAR ENDED DECEMBER 31, 2015 SPARROW PHP WAS NOT RECOMMENDED BY THE STATE OF MICHIGAN AS AN APPROVED CARRIER OF MICHIGAN MEDICAID INSURANCE FOR THE PROSPERITY REGION IN WHICH THE COMPANY OPERATES. AS A RESULT EFFECTIVE DECEMBER 31, 2015, SPARROW PHP SOLD 100 PERCENT OF THE MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. THE MEMBERSHIP WAS SOLD FOR AN AGREED UPON SUM THAT WAS COLLECTED SUBSEQUENT TO YEAR END. EFFECTIVE APRIL 30, 2017 SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS). UPON THE MERGER, SPARROW PHP SURRENDERED THEIR LICENSE TO OPERATE AS AN INSURANCE COMPANY AND THEREFORE, NO LONGER HOLDS A CERTIFICATE OF AUTHORITY AS AN AUTHORIZED HEALTH MAINTENANCE ORGANIZATION. FINAL ASSETS WERE TRANSFERRED TO PHYSICIAN HEALTH PLAN EFFECTIVE DECEMBER 31, 2017 AND SPARROW PHP WAS OFFICIALLY TERMINATED. FORM 990 ALL LINES LEFT BLANK ARE NOT APPLICABLE TO THE ORGANIZATION. FORM 990, PAGE 2, PART III, LINE 3 DURING THE YEAR ENDED DECEMBER 31, 2015 SPARROW PHP WAS NOT RECOMMENDED BY THE STATE OF MICHIGAN AS AN APPROVED CARRIER OF MICHIGAN MEDICAID INSURANCE FOR THE PROSPERITY REGION IN WHICH THE COMPANY OPERATES. AS A RESULT EFFECTIVE DECEMBER 31, 2015, SPARROW PHP SOLD 100 PERCENT OF THE MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. THE MEMBERSHIP WAS SOLD FOR AN AGREED UPON SUM THAT WAS COLLECTED SUBSEQUENT TO YEAR END. EFFECTIVE APRIL 30, 2017 SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS). UPON THE MERGER, SPARROW PHP SURRENDERED THEIR LICENSE TO OPERATE AS AN INSURANCE COMPANY AND THEREFORE, NO LONGER HOLDS A CERTIFICATE OF AUTHORITY AS AN AUTHORIZED HEALTH MAINTENANCE ORGANIZATION. FINAL ASSETS WERE TRANSFERRED TO PHYSICIAN HEALTH PLAN EFFECTIVE DECEMBER 31, 2017 AND SPARROW PHP WAS OFFICIALLY TERMINATED. FORM 990, PAGE 2, PART III, LINE 4A SPHP WAS OWNED BY PHYSICIAN HEALTH PLAN (PHP). PHYSICIANS HEALTH PLAN (PHP) IS OWNED BY SPARROW HEALTH SYSTEM (SPARROW) AND HOLDS A CERTIFICATE OF AUTHORITY AS AN HMO IN THE STATE OF MICHIGAN. EFFECTIVE DECEMBER 31, 2015 SPARROW PHP SOLD 100 PERCENT OF ITS MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. PHP GAINED APPROVAL FROM THE BOARD OF DIRECTORS AND COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES TO MERGE SPARROW PHP INTO PHP EFFECTIVE APRIL 2017. UPON THE MERGER, SPARROW PHP NO LONGER HELD A CERTIFICATE OF AUTHORITY AS AN AUTHORIZED HEALTH MAINTENANCE ORGANIZATION. FORM 990, PAGE 6, PART VI, LINE 1A EFFECTIVE APRIL 30, 2017 SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) FORM 990, PAGE 6, PART VI, LINE 6 PHYSICIAN HEALTH PLAN (PHP) IS THE SOLE MEMBER OF SPARROW PHP (SPHP) AND SPARROW HEALTH SYSTEM IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS ARE SUBJECT TO APPROVAL BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. EFFECTIVE APRIL 30, 2017, SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) FORM 990, PAGE 6, PART VI, LINE 7A PHYSICIAN HEALTH PLAN (PHP) IS THE SOLE MEMBER OF SPARROW PHP (SPHP) AND SPARROW HEALTH SYSTEM IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS ARE SUBJECT TO APPROVAL BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. EFFECTIVE APRIL 30, 2017, SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) FORM 990, PAGE 6, PART VI, LINE 7B PHYSICIAN HEALTH PLAN (PHP) IS THE SOLE MEMBER OF SPARROW PHP (SPHP) AND SPARROW HEALTH SYSTEM IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS ARE SUBJECT TO APPROVAL BY THE SPARROW HEALTH SYSTEM BOARD OF DIRECTORS. EFFECTIVE APRIL 30, 2017, SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) FORM 990, PAGE 6, PART VI, LINE 11B COPIES OF THE 2017 FORM 990 ARE REVIEWED BY MANAGEMENT. ONCE MANAGEMENT COMPLETED ITS REVIEW OF THE FORM 990 COPIES WERE PROVIDED AT THE OCTOBER 2017 BOARD MEETING FOR ALL BOARD MEMBERS TO REVIEW AND COMMENT ON. FORM 990, PAGE 6, PART VI, LINE 12C 1) CORPORATE COMPLIANCE SENDS OUT THE CONFLICT OF INTEREST POLICY AND QUESTIONNAIRES TO ALL VOTING BOARD MEMBERS AND THE EXECUTIVE TEAM ANNUALLY. 2) ALL DISCLOSURES ARE RECEIVED AND REVIEWED BY CORPORATE COMPLIANCE. 3) ALL DISCLOSURES ARE GIVEN A RESOLUTION CODE AND PRESENTED TO THE CEO AND GOVERNANCE COMMITTEE OF THE BOARD. 4) ALL BOARD/COMMITTEE LEVEL DISCLOSURES ARE PROVIDED TO THE RESPECTIVE BOARD CHAIR AND EXECUTIVE LIAISON TO ENSURE ISSUES CAN BE ADDRESSED ON A TRANSACTIONAL LEVEL (I.E. IF A VOTE IS REQUIRED ON A TRANSACTION INVOLVING AN INTERESTED PERSON). FORM 990, PAGE 6, PART VI, LINE 15A THE PROCESS FOR DETERMINING COMPENSATION FOR THE CEO OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, USING INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE SPARROW BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT. FORM 990, PAGE 6, PART VI, LINE 15B THE PROCESS FOR DETERMINING COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, USING INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, USING COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE SPARROW BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT. FORM 990, PAGE 6, PART VI, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC AS FOLLOWS: THE GOVERNING DOCUMENTS OF PHP ARE SUBMITTED TO THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS). THOSE ARE PUBLICLY AVAILABLE TO INTERESTED PARTIES. THE CONFLICT OF INTEREST IS AVAILABLE THROUGH SPARROW HEALTH SYSTEM (PARENT OF PHP) BY REQUEST TO THE SPARROW COMPLIANCE OFFICER. FORM 990, PART XI, LINE 9 TRANSFER TO PARENT UPON TERMINATION -11,929,451 EDWARD W SPARROW HOSPITAL 1215 E MICHIGAN AVENUE LANSING MI 48912 381360584 HLTH CARE MI 501C3 3 SHS true SPARROW COMMUNITY CARE 3315 E MICHIGAN AVENUE STE 4 LANSING MI 48912 382543305 HOME HLTH MI 501C3 10 SHS true SPARROW HEALTH SYSTEM 1215 E MICHIGAN AVENUE LANSING MI 48912 382542859 PARENT MI 501C3 12A NA false PHYSICIANS HEALTH PLAN 1400 E MICHIGAN AVENUE LANSING MI 48912 382356288 INSURANCE MI 501C4 SHS false PHYSICIANS HEALTH NETWORK 1400 E MICHIGAN AVENUE LANSING MI 48912 382594856 HMO MI 501C4 SHS true SPARROW FOUNDATION 1215 E MICHIGAN AVENUE LANSING MI 48912 386100687 FUNDRAISE MI 501C3 12B SHS true SPARROW CLINTON HOSPITAL 805 S OAKLAND STREET ST JOHNS MI 48879 381358172 HLTH CARE MI 501C3 3 SHS true SPARROW SPECIALTY HOSPITAL 1215 E MICH AVE 8W SPARROW TOWER LANSING MI 48915 141885340 LT ACUTE MI 501C3 3 SHS true SPARROW IONIA HOSPITAL 3565 S STATE RD IONIA MI 48846 383218134 HLTH CARE MI 501C3 3 SHS true SPARROW CLINICAL RESEARCH INSTITUTE 1200 E MICHIGAN AVENUE LANSING MI 48912 383075242 RESEARCH MI 501C3 4 SHS true SPARROW CARSON HOSPITAL 406 E ELM ST PO BOX 879 CARSON CITY MI 48811 381490180 HLTH CARE MI 501C3 3 SHS true CARSON CITY FOUNDATION 406 E ELM ST PO BOX 879 CARSON CITY MI 48811 460877509 FUNDRAISE MI 501C3 12A CCH true SPARROW DEVELOPMENT INC 1215 E MICHIGAN AVENUE LANSING MI 48912 382595963 RENTAL PRO MI N/A true PHP INSURANCE COMPANY 1400 E MICHIGAN AVENUE LANSING MI 48912 205565219 INSURANCE MI N/A true PHP SERVICE COMPANY 1400 E MICHIGAN AVENUE LANSING MI 48912 383344741 MED SVS MI N/A true EAST LANSING ATHLETIC CLUB 2900 HANNAH BLVD EAST LANSING MI 48823 382886420 HLTH CLUB MI N/A true MAC RESTAURANT LLC 2900 HANNAH BLVD EAST LANSING MI 48823 205120690 RESTAURANT MI N/A true CLINTON SERVICES CORPORATION 805 S OAKLAND ST JOHNS MI 48879 382494110 SERVICES MI N/A true EAST LANSING ATHLETIC CLUB & HSP 1200 E MICHIGAN AVENUE STE 600 LANSING MI 48912 813131851 CONDO ASSO MI N/A true false false false false false false false false false false false false true true true true false false false