2018-08-14T10:51:45-05:00 2017-09-30 381357951 PLANTE & MORAN PLLC 750 Trade Centre Way Ste 300 Portage MI 49002 990 2016-10-01 381369611 MCLAREN PORT HURON MCLA 8109875000 1221 pine grove avenue port huron MI 48060 BRIDGET SHOLTIS CFO 8109875000 2018-08-10 1 Carol LaLonde CPA P00181637 2695674500 2018-08-10 2016 2022-09-23 18:48:47Z JENNIFER MONTGOMERY 1221 pine grove avenue port huron MI 48060 235413613 0 X www.porthuronhospital.org X 1879 MI PROVISION OF ACUTE MEDICAL CARE. 19 15 1621 180 4845253 -123332 5149259 5201227 191879414 222009523 1662818 6696668 2600266 1342168 201291757 235249586 0 0 0 0 80218428 92254053 0 0 0 101783708 112806010 182002136 205060063 19289621 30189523 323419677 350988781 148300170 143173564 175119507 207815217 X MCLAREN HEALTHCARE, THROUGH ITS SUBSIDIARIES, WILL BE THE BEST VALUE IN HEALTHCARE AS DEFINED BY QUALITY OUTCOMES AND COST. 0 0 152248527 217372020 FOR FISCAL YEAR OCTOBER 1, 2016 TO SEPTEMBER 30, 2017, MCLAREN PORT HURON PROVIDED HEALTH CARE SERVICES TO THE POOR AND TO THE BROADER COMMUNITY FOR WHICH THE COST OF PROVIDING SUCH SERVICES EXCEEDED THE RELATED REVENUE. CHARITY CARE IN THE AMOUNT OF $72,830 WAS PROVIDED DURING THE YEAR. MCLAREN PORT HURON PROVIDED $401,550,736 IN THIRD PARTY DISCOUNTS. IN TOTAL, THIS REPRESENTS 64.5 PERCENT OF THE GROSS PATIENT REVENUE FOR THIS YEAR. MCLAREN PORT HURON ALSO PROVIDED THE COMMUNITY WITH OPPORTUNITIES TO PARTICIPATE IN NUMEROUS EDUCATIONAL, WELLNESS, SCREENING, AND SUPPORTIVE PROGRAMS AT EITHER NO COST OR AT A NOMINAL CHARGE. THE HOSPITAL PROVIDED A TOTAL OF 512 EVENTS/PROGRAMS TO APPROXIMATELY 283,087 PEOPLE OF THE COMMUNITY. 152248527 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 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 111 0 1 1621 1 1 1 0 0 0 0 0 0 0 0 0 X 19 15 1 0 0 0 1 1 1 1 1 1 0 0 1 1 1 1 1 0 1 0 X BRIDGET SHOLTIS CFO 8109893737 1221 PINE GROVE AVENUE PORT HURON MI 48060 MONA ARMSTRONG CHAIRMAN 3.00 0.00 X X 0 0 0 KARL TOMION VICE-CHAIRMAN/SECRETARY 1.00 1.00 X X 0 0 0 DAVID MAZURKIEWICZ TREASURER 1.00 48.30 X X 0 1462657 26603 JENNIFER MONTGOMERY PRESIDENT & CEO 41.00 2.00 X X 0 384902 68404 PHILIP INCARNATI PRESIDENT & CEO MCLAREN CO 1.00 53.00 X X 0 6466669 198282 GLENN BETRUS MD TRUSTEE 1.00 0.00 X 0 0 0 JANICE ROSE TRUSTEE 1.00 0.00 X 0 0 0 F WILLIAM COOP MD TRUSTEE 1.00 0.00 X 0 0 0 VASKEN ARTINIAN MD TRUSTEE 1.00 40.00 X 0 247640 1969 DAVID KEYES TRUSTEE 1.00 0.00 X 0 0 0 SURESH TUMMA MD TRUSTEE 1.00 0.00 X 0 0 0 DAVID A THOMPSON TRUSTEE 1.00 1.00 X 0 0 0 BASSAM H NASR MD TRUSTEE 1.00 0.00 X 0 0 0 RICHARD LEVEILLE TRUSTEE 1.00 1.00 X 0 0 0 DAVID C WHIPPLE TRUSTEE 1.00 0.00 X 0 0 0 JOHN V BROOKS MD TRUSTEE 1.00 0.00 X 0 0 0 JAMES C LARSEN TRUSTEE 1.00 1.00 X 0 0 0 GREG BUSDICKER TRUSTEE 1.00 0.00 X 0 0 0 MERIDETH WIRTZ TRUSTEE 1.00 0.00 X 0 0 0 BRIDGET SHOLTIS CFO & ASSISTANT TREASURER 41.00 1.00 X 161314 0 26780 JOHN LISTON CHIEF OPERATING OFFICER 40.00 2.00 X 410473 0 26653 MICHAEL TAWNEY DO CHIEF MEDICAL OFFICER 40.00 1.00 X 394923 0 30550 CHRISTINE SAMSON CHIEF NURSING OFFICER 40.00 0.00 X 177639 0 6463 DORIS SEIDL VP OF HUMAN RESOURCES 40.00 1.00 X 222481 0 21746 THOMAS L BROZOVICH PHYSICIAN 40.00 0.00 X 292408 0 12793 SARA LITER-KUESTER PHYSICIAN 40.00 0.00 X 269912 0 750 TIMOTHY VANHOWE CRNA 40.00 0.00 X 245223 0 20089 BRIAN BARKLEY CRNA 40.00 0.00 X 223012 0 16420 CRAIG HUARD CRNA 40.00 0.00 X 221500 0 17699 THOMAS DEFAUW FORMER PRESIDENT & CEO 0.00 0.00 X 527834 0 0 DAVID MCEWEN FORMER CHIEF OPERATING OFFICER 0.00 0.00 X 131764 0 13957 3278483 8561868 489158 61 1 1 0 LOCUMTENENSCOM LLC 2655 NORTHWINDS PARKWAY ALPHARETTA GA 30009 MEDICAL STAFF SERVICES 1391096 CENTER FOR CARDIOVASCULAR & THORACIC SUR 22201 MORROSS ROAD SUITE 356 DETROIT MI 48236 MEDICAL STAFF SERVICES 946664 AHSAAMERICAN HEALTHCARE SERVICES PO BOX 945 TRAVERSE CITY MI 49685 MEDICAL STAFF SERVICES 903875 PHYSICIAN HEALTHCARE NETWORK 3050 COMMERCE DRIVE FORT GRATIOT MI 48059 MEDICAL SERVICES 824403 MICHIGAN CO-TENANCCY LABORATORY DEPT CH 14271 PALATINE IL 600554271 LAB TESTING SERVICES 656685 13 5201227 21371 5201227 PATIENT REVENUE 621500 174730368 174730368 LABORATORY 621500 46554278 41916775 4637503 ELECTRONIC MEDICAL RECORD 621500 608180 608180 OPERATING REVENUE 621500 68919 68919 RENT - RELATED PARTY 531390 47778 47778 222009523 1989841 1989841 172788 0 172788 172788 150000 22788 4870854 0 164027 4870854 -164027 4706827 4706827 CAFETERIA 722210 713625 713625 LAUNDRY 812300 451271 57750 393521 4484 4484 1169380 235249586 217372020 4845253 7831086 X 2990665 2990665 75217648 65713850 9503798 784249 685159 99090 8167660 7135671 1031989 5093831 4450222 643609 48428 48428 106794 106794 5837 5837 222812 222812 30223981 17159479 13064502 782084 782084 1262877 917131 345746 7047136 57192 6989944 1389193 1088624 300569 252188 126568 125620 129661 104089 25572 923614 923614 8803485 59251 8744234 1018728 13800 1004928 MED SUPPLY & MINOR EQUI 39590799 38494212 1096587 BAD DEBTS 9783918 9783918 QAAP TAX 5190365 5190365 UTILITIES 1632836 155138 1477698 4391274 1113858 3277416 205060063 152248527 52811536 0 32415006 34876222 54566763 75462983 8922895 14870609 138469001 99027739 5860416 6505045 637792 1300506 134702202 19578798 79616045 115123404 1839087 1893718 225778 935455 866894 993100 323419677 350988781 74609191 71144466 23162233 20913764 49378726 49397256 1150020 1718078 148300170 143173564 X 175119507 207815217 175119507 207815217 323419677 350988781 X 30189523 2184920 321267 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 5837 5837 0 Part II-B, Line 1: PORTION OF MICHIGAN HEALTH HOSPITAL ASSOCATION DUES TO LOBBYING. 5836762 5836762 48108384 6912378 41196006 971925 196381 775544 31600138 12470039 19130099 48184993 48184993 115123404 CLAIM LIABILITY 1718078 1718078 1 1 X 1 X 1 X 1 1 0 1 1 21934 21934 0.00010 37122456 35964336 1158120 0.00590 37144390 35964336 1180054 0.00600 532943 26261 506682 0.00260 156207 156207 0.00080 689150 26261 662889 0.00340 37833540 35990597 1842943 0.00940 1 580 580 0.00000 81 10040 10040 0.00010 160 818 42597 325 42272 0.00020 23 3339 3339 0.00000 35 4560 4560 0.00000 1 11681 11681 0.00010 301 818 72797 325 72472 0.00040 1 9783918 97379 63586653 63578038 8615 X 1 0 1 1 MCLAREN PORT HURON 1221 PINE GROVE AVENUE PORT HURON MI 48060 www.mclaren.org/porthuron 1060000087 X X X MCLAREN PORT HURON 1 0 0 1 X X X X X X X X X X 16 1 1 1 1 X SEE PART V, PAGE 7 X X 1 16 1 SEE PART V, PAGE 7 0 1 X 200.000000000000 400.000000000000 X X X 1 1 X X X X 1 X http://www.mclaren.org/porthuron/financial-services.aspx X http://www.mclaren.org/porthuron/financial-services.aspx X http://www.mclaren.org/porthuron/financial-services.aspx X X X X X X 1 X 0 X X X 1 X 0 0 MCLAREN PORT HURON Part V, Section B, Line 3j: DATA THAT CONTRIBUTED TO OUR CORE AREAS OF FOCUS INLCUDED: LEADING CAUSES OF DEATH, TOP CANCER SITES, HOSPITAL DISCHARGES AND HEALTHY BEHAVIOR RANKINGS IN OUR TWO COUNTIES COMPARED TO STATEWIDE DATA AND LEADING US PERFORMERS.THE CHNA ALSO INCLUDED A LISTING OF COMMUNITY HEALTH ASSETS OTHER RESOURCES SUCH AS MCLAREN PORT HURON'S TODAY'S HEALTH TELEVISION PROGRAM THAT FOCUSES ON A VARIETY OF HEALTH EDUCATION AND PREVENTION PROGRAMS. MCLAREN PORT HURON Part V, Section B, Line 5: ASIDE FROM THE COMMUNITY ASSESSMENT THAT BEGAN IN 2016, MCLAREN PORT HURON DEPLOYED A HOSPITAL WORKGROUP TO DEVELOP THE HOSPITAL'S COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA).COMMUNITY INPUT WAS SOUGHT FROM VARIOUS HEALTH PROVIDERS, HEALTH AND HUMAN SERVICE PUBLIC AGENCIES, COMMUNITY-BASED ORGANIZATIONS, POLICY MAKERS AND COMMUNITY GROUPS. ADDITIONALLY, MCLAREN PORT HURON HELD PUBLIC HEALTH MEETINGS RELATING TO THE CHNA, INLCUDING THE HOSPITAL'S CANCER COMMITTEE, COMMUNITY ADVISORY BOARD, COMMUNITY EDUCATION & OUTREACH COMMITTEE AND THROUGH COMMUNITY MEMBERS WHO PARTICIPATED IN VARIOUS HEALTH SCREENINGS AND SEMINARS OFFERED THROUGH MCLAREN PORT HURON IN 2016. MCLAREN PORT HURON CONTINUOUSLY GATHERS INPUT FROM THE MEMBERS OF OUR COMMUNITY, THROUGH HOSPITAL AND COMMUNITY WORK GROUPS, ADVISORY BOARDS, AND FOCUS GROUPS. MCLAREN PORT HURON Part V, Section B, Line 6a: ST. JOHN'S RIVER DISTRICT HOSPITAL AND LAKE HURON MEDICAL CENTER. MCLAREN PORT HURON Part V, Section B, Line 6b: ST CLAIR COUNTY HEALTH DEPARTMENT, COMMUNITY MENTAL HEALTH, ST CLAIR COUNTY ECONOMIC DEVELOPMENT, YMCA OF BLUE WATER AREA, BEHAVIORAL RISK FACTOR SURVEY OF RESIDENTS OF ST CLAIR COUNTY MCLAREN PORT HURON Part V, Section B, Line 7d: A COPY OF THE COMMUNITY HEALTH NEEDS ASSESSMENT IS AVAILABLE ON THE HOSPITALS WEBSITE LOCATED AT HTTP://WWW.MCLAREN.ORG/PORTHURON/HEALTH-COMMUNITY-NEEDS.ASPXIN ADDITION TO MAKING THE HOSPITAL'S CHNA AND IMPLEMENTATION PLAN AVAILABLE TO THE COMMUNITY VIA THE HOSPITAL'S WEBSITE AND SOCIAL MEDIA, THESE MATERIALS WERE ALSO PROVIDED VIA HARDCOPY TO HOSPITAL TRUSTEES AND THE BASIS FOR NUMEROUS PRESENTATIONS TO HOSPITAL MANAGERS AND COMMUNITY GROUPS. MCLAREN PORT HURON Part V, Section B, Line 11: THE CHNA TEAM AT MCLAREN PORT HURON EVALUATED DATA AND INPUT SOURCES COLLECTED TO PRIORITIZE THE MAJOR ISSUES IMPACTING THE COMMUNITY WE SERVE. CRITERIA INCLUDED THE NUMBER OF PERSONS AFFECTED BY THE VARIOUS FACTORS ANALYZED, THE SERIOUSNESS OF THE ISSUES, WHETHER THE HEALTH NEEDS PARTICULARLY AFFECTED PERSONS LIVING IN POVERTY OR REFLECTED OTHER DISPARITIES, AND AVAILABILITY OF COMMUNITY RESOURCES TO ADDRESS THE NEEDS. THIS PROCESS IDENTIFIED THE FOLLOWING PRIORITY ISSUES FOR THE COMMUNITY. STRATEGIC GOALS, COMMUNITY INPUT AND A REVIEW OF THE EXISTING COMMUNITY BENEFIT ACTIVITIES ALSO GUIDED THIS PLAN.FIVE SIGNIFICANT HEALTH NEEDS WERE IDENTIFIED:1. POOR MANAGEMENT OF CHRONIC HEALTH CONDITIONS:-PROVIDE EVIDENCE BASED SCREENINGS FOR EARLY IDENTIFICATION-OFFER CHRONIC DISEASE MANAGEMENT PROGRAMS AND SUPPORT GROUPS INCLUDING DIABETES, CANCER, STROKE, BARIATRIC, HEART DISEASE, ALZHEIMER'S DISEASE AND PARKINSON'S DISEASE-EXPAND SERVICES THROUGH THE CANCER CENTER AND PROVIDE ACCESS TO CLINICAL TRIALS-MAINTAIN STANDARDS AND CERTIFICATIONS FOR CENTERS OF EXCELLENCE-DECREASE PREVENTABLE HOSPITAL ADMISSIONS THROUGH EDUCATION AND PARTNERSHIPS WITH LOCAL HOME CARE AGENCIES2. HIGH INCIDENCE OF UNHEALTHY BEHAVIORS:-CONTINUE TO OFFER SMOKING CESSATION PROGRAMS-CONTINUE TO OFFER BARIATRIC, NUTRITION SERVICES AND PHYSICAL ACTIVITY PROGRAMS-OUTPATIENT COUNSELING-COLLABORATE WITH COMMUNITY PARTNERS TO PROMOTE COMMUNITY AWARENESS AND EDUCATION TO REDUCE ALCOHOL, TOBACCO AND NON-MEDICAL PRESCRIPTION DRUG USE/ABUSE3. HIGH INCIDENCE OF INJURY/TRAUMA:-INCREASE THE NUMBER OF PRIMARY AND SPECIALTY CARE PROVIDERS IN TARGETED COMMUNITIES-CONTINUE TO COLLABORATE WITH HOSPITALS, HEALTH DEPARTMENT, AND OTHER REGIONAL STAKEHOLDERS TO IMPROVE HEALTH OUTCOMES-COLLABORATE WITH MENTAL HEALTH, PRIMARY CARE, AND OTHER COMMUNITY STAKEHOLDERS TO ADDRESS BEHAVIORAL HEALTH INCLUDING TRAINING, INTERVENTION AND TREATMENT4. LACK OF ACCESS TO PRIMARY AND SPECIALTY PROVIDERS:-INCREASE THE NUMBER OF PRIMARY AND SPECIALTY CARE PROVIDERS IN TARGETED COMMUNITIES-CONTINUE TO COLLABORATE WITH HOSPITALS, HEALTH DEPARTMENT, AND OTHER REGIONAL STAKEHOLDERS TO IMPROVE HEALTH OUTCOMES-COLLABORATE WITH MENTAL HEALTH, PRIMARY CARE, AND OTHER COMMUNITY STAKEHOLDERS TO ADDRESS BEHAVIORAL HEALTH INCLUDING TRAINING, INTERVENTION AND TREATMENT5. BARRIERS TO ACCESSING ACCURATE, EVIDENCE-BASED HEALTH INFORMATION:-INCREASE ACCESS TO HEALTH INFORMATION THROUGH THE PATIENT HEALTH RECORD-OFFER COUNSELING TO OBTAIN HEALTH INSURANCE THROUGH THE EXCHANGE-TODAY'S HEALTH TELEVISION PROGRAMMING SERIES-IN GOOD HEALTH COMMUNITY NEWSLETTER PUBLICATION-CONTINUE TO EVALUATE CURRENT TRENDS AND TOPICS RELEVANT TO OUR COMMUNITY AND PROVIDE EDUCATIONAL PROGRAMS TO ADDRESS THESE ISSUESMCLAREN PORT HURON'S REVIEW OF CURRENT COMMUNITY BENEFIT PROGRAMS FOUND THAT THE HOSPITAL IS MEETING EXISTING COMMUNITY NEEDS THROUGH PROVISION OF CHARITY CARE; FINANCIAL AND IN-KIND CONTRIBUTIONS; COMMUNITY BUILDING ACTIVITIES; AND A MULTITUDE OF COMMUNITY EDUCATION PROGRAMS. THESE ACTIVITIES WERE DETERMINED TO BE ADDITIONAL PRIORITIES FOR OUR HOSPITAL'S COMMUNITY BENEFIT PLAN.MCLAREN PORT HURON WILL WORK IN PARTNERSHIP WITH PUBLIC AND COMMUNITY RESOURCES TO ADDRESS THESE NEEDS THROUGH 2019. THE OVERALL GOAL OF THE FOLLOWING ACTION PLAN IS TO IMPROVE THE OVERALL HEALTH FACTORS AND BEHAVIORS OF ST. CLAIR AND SANILAC COUNTIES, LEADING TO IMPROVEMENTS IN HEALTH BEHAVIORS AND OUTCOMES.UNADDRESSED SIGNIFICANT HEALTH NEEDS AND RATIONALETHE ST. CLAIR COUNTY HEALTH DEPARTMENT 2016 PRELIMINARY PRIORITIES LIST INCLUDED HEALTH NEEDS THAT WILL NOT BE ADDRESSED BY THE MCLAREN PORT HURON CHNA AND IMPLEMENTATION STRATEGY REPORT. THESE INCLUDE:FLU SHOTS - DEFICIENCYHIV TESTS - DEFICIENCYQUALITY OF NEIGHBORHOODSFLU SHOTS ARE OFFERED TO OUR INPATIENT POPULATION AND THROUGHOUT THE COMMUNITY. HIV TESTING IS AVAILABLE THROUGH THE HEALTH DEPARTMENT. WHILE THE QUALITY OF NEIGHBORHOODS IS A VERY IMPORTANT PART OF OUR COMMUNITY PROFILE, IMPROVEMENT IS BEYOND THE SCOPE OF THE HOSPITAL SERVICES. MCLAREN PORT HURON Part V, Section B, Line 13b: FINANCIAL ASSISTANCE GUIDELINES ARE BASED ON 200%-400% OF THE FEDERAL POVERTY GUIDELINES PUBLISHED ANNUALLY IN THE FEDERAL REGISTER. DESIGNATED PERSONNEL WILL ACCESS THE FEDERAL REGISTER AND UPDATE THE FINANCIAL ASSISTANCE GUIDELINES ANNUALLY. THE DISCOUNT IS BASED ON FAMILY SIZE AND ANNUAL INCOME. MCLAREN PORT HURON Part V, Section B, Line 15e: FINANCIAL ASSISTANCE INFORMATION AND APPLICATION ARE ON MCLAREN'S PUBLIC WEBSITE. AT THE POINT OF REGISTRATION, IN OUR EMERGENCY DEPARTMENT, OR IN ANY OF OUR FINANCIAL COUNSELOR OR CASHIER OFFICES. MCLAREN PORT HURON Part V, Section B, Line 16j: PAMPHLETS ARE DISPLAYED AND AVAILABLE IN EMERGENCY ROOM Part II, Community Building Activities: THE PORT HURON COMMUNITY HAS ALWAYS HOSTED A VIBRANT DISCUSSION ON COMMUNITY-BUILDING AND ITS INFLUENCE ON COMMUNITY HEALTH. MCLAREN PORT HURON, WITH OTHER COMMUNITY AGENCIES SUCH AS THE COMMUNITY FOUNDATION, THE HEALTH DEPARTMENT, COMMUNITY MENTAL HEALTH, PUBLIC SAFETY, CLERGY AND OTHER COMMUNITY HOSPITALS REGULARLY COME TOGETHER AROUND COMMON INTERESTS. COLLECTIVELY, THERE IS A CONSENSUS AMONG THESE GROUPS- AND OTHERS- THAT A COMMUNITY'S "HEALTH" IS DEFINED BY MUCH BROADER MEASUREMENTS THAN TRADITIONAL VITAL HEALTH STATISTICS. OBESITY, DEPRESSION, DIABETES, TEEN PREGNANCY ARE ISSUES THAT HAVE GARNERED OUR COLLECTIVE ACTION, BUT OTHER ISSUES SUCH AS UNEMPLOYMENT, IMPROVED ACCESS TO PARKS, AVAILABILITY OF FRESH PRODUCE, YOUTH MENTORING ALSO GAIN OUR ATTENTION. MCLAREN PORT HURON, IN PARTICULAR, INFLUENCES, INFORMS AND DRAWS FROM THESE CONVERSATIONS. OUR MANAGEMENT TEAM, COMPRISED OF ABOUT 50 INDIVIDUALS, IS INVOLVED IN (AND OFTEN PROVIDES LEADERSHIP TO) OVER 50 COMMUNITY SERVICE AGENCIES SUCH AS ROTARY CLUBS, CHAMBERS OF COMMERCE, THE YMCA, THE COMMUNITY COLLEGE, SCHOOL AND CHURCH BOARDS, CHILD ADVOCACY GROUPS, THE UNITED WAY, COUNCILS ON AGING, HUMAN SERVICES COORDINATING COUNCILS, ECONOMIC DEVELOPMENT, AND AREA MUSEUMS. THESE RELATIONSHIPS- AND THEIR LEADERS- REGULARLY INFORM A LESS FORMAL, BUT MORE MEANINGFUL, COMMUNITY NEEDS ASSESSMENT. THE LEADERSHIP AT MCLAREN PORT HURON CLEARLY COMMUNICATES ITS EXPECTATION THAT EVERY MANAGER IS COMMITTED TO AT LEAST ONE SUCH COMMUNITY SERVICE GROUP AND THE HOSPITAL, IN TURN, SUPPORTS THOSE MANAGERS IN THEIR ROLES. ADDITIONALLY, MCLAREN PORT HURON TAKES PRIDE IN ITS SUPPORT OF OTHER AGENCIES' FUNDRAISING AND COMMUNITY-BUILDING ACTIVITIES SUCH AS THE MARCH OF DIMES' JAIL-N-BAIL, WALK FOR SUMMER READING, AMERICAN HEART WALK, UNITED WAY, BACKPACK/SCHOOL SUPPLIES GIVE-AWAYS AND THE CHILD ABUSE AND NEGLECT ROOFSIT. THESE EVENTS PROMOTE WELLNESS AND HEALTHIER LIFESTYLES, OFFER HEALTH SCREENINGS AND RAISE FUNDS FOR AGENCIES WHOSE MISSIONS ARE ALIGNED WITH THE HOSPITAL'S. Part III, Line 2: $9,783,918 - GROSS AMOUNT Part III, Line 3: BAD DEBT ACCOUNTS WRITTEN OFF IN A TAX YEAR THAT AT ONE TIME OR ANOTHER HAD POSSIBLE CHARITY NOTATION BUT NOT APPROVED. DUE TO A VARIETY OF REASONS, MAY NOT HAVE COMPLETED PAPERWORK, NOT SUPPLIED DOCUMENTATION, OR DIDN'T MEET CHARITY CARE GUIDELINES. Part III, Line 4: ACCOUNTS RECEIVABLE FOR PATIENTS, INSURANCE COMPANIES, AND GOVERNMENTAL AGENCIES ARE BASED ON GROSS CHARGES. AN ALLOWANCE FOR CONTRACTUAL ADJUSTMENTS AND INTERIM PAYMENT ADVANCES IS BASED ON EXPECTED PAYMENT RATES FROM PAYORS BASED ON CURRENT REIMBURSEMENT METHODOLOGIES. THIS AMOUNT ALSO INCLUDES AMOUNTS RECEIVED AS INTERIM PAYMENTS AGAINST UNPAID CLAIMS BY CERTAIN PAYORS. ACCOUNTS RECEIVABLE ARE REDUCED BY AN ALLOWANCE FOR DOUBTFUL ACCOUNTS. IN EVALUATING THE COLLECTABILITY OF ACCOUNTS RECEIVABLE, THE CORPORATION ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYOR SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYOR SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. FOR RECEIVABLES ASSOCIATED WITH SERVICES PROVIDED TO PATIENTS WHO HAVE THIRD-PARTY COVERAGE, THE CORPORATION ANALYZES CONTRACTUALLY DUE AMOUNTS AND PROVIDES AN ALLOWANCE FOR DOUBTFUL ACCOUNTS AND A PROVISION FOR BAD DEBTS, IF NECESSARY (FOR EXAMPLE, FOR EXPECTED UNCOLLECTIBLE DEDUCTIBLES AND COPAYMENTS ON ACCOUNTS FOR WHICH THE THIRD-PARTY PAYOR HAS NOT YET PAID, OR FOR PAYORS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES THAT MAKE THE REALIZATION OF AMOUNTS DUE UNLIKELY).FOR RECEIVABLES ASSOCIATED WITH SELF-PAY PATIENTS (WHICH INCLUDES BOTH PATIENTS WITHOUT INSURANCE AND PATIENTS WITH DEDUCTIBLE AND COPAYMENT BALANCES DUE FOR WHICH THIRD-PARTY COVERAGE EXISTS FOR PART OF THE BILL), THE CORPORATION RECORDS A SIGNIFICANT PROVISION FOR BAD DEBTS IN THE PERIOD OF SERVICE ON THE BASIS OF ITS PAST EXPERIENCE, WHICH INDICATES THAT MANY PATIENTS ARE UNABLE OR UNWILLING TO PAY THE PORTION OF THEIR BILL FOR WHICH THEY ARE FINANCIALLY RESPONSIBLE. THE DIFFERENCE BETWEEN THE DISCOUNTED RATES AND THE AMOUNTS ACTUALLY COLLECTED AFTER ALL REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS IN THE PERIOD THEY ARE DETERMINED TO BE UNCOLLECTIBLE. Part III, Line 8: PORT HURON HOSPITAL APPLIES THE COST TO CHARGE RATIO METHODOLOGY AS REQUIRED. ALL OF THE SHORTFALL SHOULD BE CONSIDERED COMMUNITY BENEFIT. Part III, Line 9b: IF A PATIENT PARTICIPATES IN THE CHARITY CARE PROCESS, THE ACCOUNT IS WRITTEN OFF THE CHARITY AS PER THE CHARITY CARE PROCESS. HOWEVER, IF THE PATIENT IS NON-PARTICIPATIVE IN THE CHARITY CARE PROCESS, THE NORMAL COLLECTION PROCESS WILL ENSUE. Part VI, Line 2: IN ADDITION TO THOSE METHODS DESCRIBED IN PART II AND PART V, THE HOSPITAL UTILIZES MANY MORE METHODS TO ASSESS - AND ADDRESS - THE HEALTH CARE NEEDS OF OUR COMMUNITY. VARIOUS ONGOING AND AD-HOC EFFORTS INCLUDE: - PARTICIPATION IN VARIOUS FORMAL COUNTY-WIDE NEEDS ASSESSMENTS WITH THE ST.CLAIR COUNTY HEALTH DEPARTMENT (INCLUDING EMERGENCY MANAGEMENT) - WITH THE MICHIGAN INPATIENT DATABASE, AN ANNUAL GAP ANALYSIS FOR COMMUNITY OUTMIGRATION FOR HEALTHCARE SERVICES NOT OFFERED IN COUNTY (WHICH TO AN ANALSIS AND COMMITMENT TO INVESTMENT IN INCREASED CANCER TREATMENT SERVICES) - PERIODIC CONSUMER PERCEPTION AND PERFERENCE SURVEYS (SUCH AS EPIC MRA, PRESS GANEY) - A COMMUNITY ADVISORY BOARD THAT PROVIDES THE HOSPITAL WITH DIRECTION AND TIMELY FEEDBACK REGARDING WOMEN'S HEALTH NEEDS (RECENTLY DIRECTED THE HOSPITAL TO INVEST IN DIGITAL MAMMOGRAPHY TECHNOLOGY) - AN ANNUAL STRATEGIC PLANNING PROCESS THAT INCORPORATES INPUT FROM THE COMMUNITY, MANAGERS, PHYSICIANS, TRUSTEES AND PATIENTS FEEDBACK - FEEDBACK AND DIRECTION FROM THE HOSPITAL'S "55-PLUS" MEMBERSHIP GROUP, WHICH DIRECTED THE HOSPITAL'S ATTENTION TO SCREENINGS AND SUPPORT GROUPS THAT ARE NOT TYPICALLY PAID FOR BY HEALTH PLANS - KEY COMMUNITY CONSTITUENTS - WHO HAVE SUPPORTED THE HOSPITAL'S EDUCATION AND OUTREACH MISSION - ULTIMATELY RESULTING IN A HEALTH LIBRARY AND CLASSROOMS (BOTH PROMINENTLY POSITIONED IN THE HOSPITAL'S MAIN LOBBY) THAT PROVIDE EDUCATIONAL RESOURCES, SUPPORT AND INSTRUCTION TO COMMUNITY GROUPS, PHYSICIANS, HOSPITAL STAFF - "TODAY'S HEALTH" - A WEEKLY HEALTH INFORMATION TELEVISION AND CABLE SHOW - PROVIDES EDUCATIONAL CONTENT THAT IS ALIGNED WITH COMMUNITY NEED - HEALTH ACCESS - A MEDIUM THROUGH WHICH THE HOSPITAL IS ABLE TO ANSWER SPECIFIC EDUCATIONAL INTERESTS, PROVIDE EMERGENCY DIRECTION, PROMOTE THE AVAILABILITY OF HEALTH OUTREACH RESOURCES AND FACILITATE CLASS ENROLLMENT - COUNTY EMERGENCY MANAGEMENT, "REGOIN 2" HOMELAND SECURITY, LOCAL PUBLIC SAFETY - THESE AGENCIES ROUTINELY ADVISE THE HOSPITAL ON NEEDED PREPARATIONS FOR SPECIFIC EMERGENCY PLANNING THAT IS IN THE COMMUNITY'S INTEREST. IN ADDITION TO ACTUAL EVENTS AND EXERCISES FOR FIRE, TORNADO AND HAZARDOUS MATERIALS EXPOSURES, THESE AGENCIES ASSISTED THE HOSPITAL IN TESTING ITS ABILITY TO CARE FOR AN H1N1 EPIDEMIC, MANAGE AN "ACTIVE SHOOTER" SCENARIO AND CONDUCTING AN INFANT ABDUCTION DRILL. FINALLY, THE HOSPITAL'S HISTORY OF PUBLIC ACCOUNTABILITY FACILITATES A REGULAR DIALOG WITH THE COMMUNITY REGARDING THE HOSPITAL'S COMMITMENT TO COMMUNITY BENEFIT. EACH YEAR, THE HOSPITAL PUBLISHES AND DISTRIBUTES AN ANNUAL REPORT, WHICH IS SHARED WITH TRUSTEES AND OTHER COMMUNITY REPRESENTATIVES. MORE CONCURRENTLY, THE HOSPITAL REPORTS ON NUMEROUS COMMUNITY BENEFIT RESOURCES IN A HALF-PAGE AD THAT IS PUBLISHED MONTHLY IN THE LOCAL NEWSPAPER UNDER A "YOUR PARTNER IN HEALTH" SERIES. Part VI, Line 3: AVAILABILITY OF FINANCIAL ASSISTANCE INFORMATION AND EDUCATION IS PROVIDED AT ALL INPATIENT AND OUTPATIENT REGISTRATION POINTS-OF-SERVICE. INFORMATION AND EDUCATION IS ALSO AVAILABLE THROUGH THE ORGANIZATION'S WEBSITE. FINANCIAL AND APPLICATION FORMS ARE AVAILABLE AT ALL INPATIENT AND OUTPATIENT REGISTRATION POINTS-OF-SERVICE, INCLUDING PROVIDING ASSISTANCE IN COMPLETING THE APPLICATION. ORGANIZATION AND IT'S SUBSIDIARIES/AFFILIATES ALSO PROVIDE SPECIFICALLY-TRAINED COUNSELORS TO ASSIST PATIENTS AND REVIEW ELIGIBILITY FOR FEDERAL, STATE AND OTHER GOVERNMENT PROGRAMS, INCLUDING, BUT NOT LIMITED TO, MEDICAID, DISABILITY, SOCIAL SECURITY, AND ANY OTHER FORMS OF THIRD PARTY PAYMENT. Part VI, Line 4: THE HOSPTIAL AND ITS AFFILIATED ORGANIZATIONS SERVE A THREE-SIDED MAREKT, LIMITED BY LAKE HURON AND THE CANADIAN BOARDER TO THE EAST. THE HOSPITAL'S SERVICE ARE IS GENERALLY CONSIDERED TO BE ALL OF ST CLAIR COUNTY, WITH PORTIONS OF SANILAC, HURON, LAPEER AND MACOMB COUNTIES. THE SERVICE AREA'S POPULATION IS ABOUNT 220,000 WITH ABOUT THREE-QUARTERS RESIDING IN ST CLAIR COUNTY. THE LARGEST COMMUNITY, PORT HURON, HAS A POPULATION OF ABOUNT 35,000 RESIDENTS. ABOUT A THIRD OF THE COUNTY'S RESIDENTS LEAVE THE COUNTY FOR WORK. OUR MARKET FOLLOWS STATE DEMOGRAPHICS WITH SOME EXCEPTIONS: A LOWER PERCENTAGE OF AFRICAN-AMERICANS, A HIGHER PERCENTAGE OF NATIVE AMERICANS, A LOWER AVERAGE HOUSEHOLD INCOME AND A HIGHER PERCENTAGE OF RESIDENTS OVER 65 YEARS OLD. THESE MARKET CHARACTERISTICS ARE CONSIDERED IN OUR PLANNING EFFORTS, PARTICULARLY AS WE PLAN FOR HEALTH SCREENINGS AND TRANSPORATION NEEDS. Part VI, Line 5: In 1985, McLaren Port Huron began collaborating with medical providers, health and human service public agencies, community-based organizations, policy makers, and local residents to create a Senior Wellness program. Today, this membership program remains strong with more than 14,750 members who attend a variety of health education programs and screenings. In 1988, McLaren Port Huron began to focus on Women's Health, creating a Women's Health Team and a Women's Community Advisory Board comprised of influential women with varied perspectives. A women's health membership program began and remains strong with more than 4,900 members who attend a variety of health education programs and screenings. Thirty years later, the Board continues to meet and serves as ambassadors of the hospital, while contributing direct feedback to staff leads about health care needs they believe the community would benefit from. These participants provide input every three years and participate as a focus group for completion of the CHNA.McLaren Port Huron also discusses the health of the community through our cancer committee, by providing prevention and screening programs.Additionally, McLaren Port Huron is represented and participates in community health work groups that address the medically underserved, high risk behaviors (i.e., drug use, smoking), community health improvement as well as other community based organizations such as Rotary Clubs, etc. Part VI, Line 7, Reports Filed With States MI 1 1 0 0 0 0 0 0 0 DAVID MAZURKIEWICZ TREASURER 0 788762 0 220000 0 453895 0 13250 0 13353 0 1489260 0 0 JENNIFER MONTGOMERY PRESIDENT & CEO 0 311845 0 29152 0 43905 0 64826 0 3578 0 453306 0 0 PHILIP INCARNATI PRESIDENT & CEO MCLAREN CO 0 1762990 0 1548156 0 3155523 0 188387 0 9895 0 6664951 0 0 VASKEN ARTINIAN MD TRUSTEE 0 247307 0 333 0 0 0 0 0 1969 0 249609 0 0 BRIDGET SHOLTIS CFO & ASSISTANT TREASURER 150606 0 9688 0 1020 0 13152 0 13628 0 188094 0 0 0 JOHN LISTON CHIEF OPERATING OFFICER 346313 0 44707 0 19453 0 14310 0 12343 0 437126 0 0 0 MICHAEL TAWNEY DO CHIEF MEDICAL OFFICER 335207 0 40041 0 19675 0 14310 0 16240 0 425473 0 0 0 CHRISTINE SAMSON CHIEF NURSING OFFICER 171160 0 5459 0 1020 0 6463 0 0 0 184102 0 0 0 DORIS SEIDL VP OF HUMAN RESOURCES 188922 0 19359 0 14200 0 16068 0 5678 0 244227 0 0 0 THOMAS L BROZOVICH PHYSICIAN 292408 0 0 0 0 0 0 0 12793 0 305201 0 0 0 SARA LITER-KUESTER PHYSICIAN 242461 0 27451 0 0 0 0 0 750 0 270662 0 0 0 TIMOTHY VANHOWE CRNA 245223 0 0 0 0 0 15600 0 4489 0 265312 0 0 0 BRIAN BARKLEY CRNA 223012 0 0 0 0 0 0 0 16420 0 239432 0 0 0 CRAIG HUARD CRNA 221500 0 0 0 0 0 0 0 17699 0 239199 0 0 0 THOMAS DEFAUW FORMER PRESIDENT & CEO 0 0 0 0 527834 0 0 0 0 0 527834 0 0 0 DAVID MCEWEN FORMER CHIEF OPERATING OFFICER 101171 0 30046 0 547 0 6461 0 7496 0 145721 0 0 0 Part I, Line 1a THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 1 BOXES HAVE BEEN CHECKED. THE CORPORATE CEO, SUBSIDIARY CEOS AND CORPORATE EXECUTIVE & SENIOR VICE-PRESIDENTS IN SOME INSTANCES HAVE RECEIVED TAX INDEMNIFICATION FOR THE FOLLOWING BENEFITS: VEHICLE COSTS, GROUP TERM LIFE INSURANCE, SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS, AND HEALTH CLUB OR SOCIAL DUES. THESE BENEFITS HAVE BEEN INCLUDED IN TAXABLE COMPENSATION. Part I, Line 3 THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 3 BOXES HAVE BEEN CHECKED. THE RELATED ORGANIZATION USED THE FOLLOWING METHODOLOGIES TO ESTABLISH THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR OF THE FILING ORGANIZATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. Part I, Lines 4a-b LINE 4A: TOM DEFAUW - RECEIVED $527,834 LINE 4B: MCLAREN MAINTAINS TWO SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS FOR A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES (THE "SERPS"). THE OLD SERP WAS CLOSED TO NEW PARTICIPANTS ON OCTOBER 1, 2006, AND THE NEW SERP BECAME EFFECTIVE AS OF JANUARY 1, 2007. NO EMPLOYEE MAY PARTICIPATE IN BOTH OF THE SERPS. THE OLD SERP IS STRUCTURED AS A DEFINED BENEFIT PLAN THAT ESSENTIALLY REPLACES THE BENEFITS THE PARTICIPANT IS NOT PERMITTED TO RECEIVE UNDER MCLAREN'S QUALIFIED RETIREMENT PLAN DUE TO IRS LIMITATIONS APPLICABLE TO QUALIFIED PLANS. THE BENEFIT UNDER THE OLD SERP IS PAYABLE IN EITHER THE FORM OF A LUMP SUM DISTRIBUTION OR IN MONTHLY PAYMENTS EQUAL TO THE ACTUARIAL EQUIVALENT OF THE PARTICIPANT'S ACCRUED BENEFIT. THE BENEFIT IS PAID AT AGE 55, AND IF THE PARTICIPANT REMAINS EMPLOYED, THE BENEFIT IS PAID UPON TERMINATION OF EMPLOYMENT, REDUCED TO TAKE INTO ACCOUNT THE BENEFIT PREVIOUSLY PAID. THE NEW SERP IS STRUCTURED AS A DEFINED CONTRIBUTION PLAN, AND MCLAREN CONTRIBUTES 15 PERCENT OF EACH PARTICIPANT'S COMPENSATION TO THE PLAN EACH YEAR FOR ALLOCATION TO THE PARTICIPANT'S ACCOUNT. PARTICIPANTS IN THE NEW SERP BECOME VESTED IN THEIR ACCOUNTS UPON THE EARLIER OF FIVE YEARS OF PARTICIPATION IN THE PLAN OR ATTAINMENT OF AGE 60. PARTICIPANTS IN THE NEW SERP SELF-DIRECT THE INVESTMENT OF THEIR ACCOUNTS AND HAVE THE ACTUAL INVESTMENT RETURN CREDITED OR DEBITED TO THEIR ACCOUNTS. THE BENEFIT UNDER THE NEW SERP IS EQUAL TO THE PARTICIPANT'S ACCOUNT BALANCE, AND THE BENEFIT IS PAID IN A SINGLE SUM WITHIN 60 DAYS OF THE PARTICIPANT'S TERMINATION DATE. BENEFITS UNDER BOTH SERPS ARE PROVIDED ON A TAX-NEUTRAL BASIS. BOTH SERPS ARE DESIGNED TO COMPLY WITH INTERNAL REVENUE CODE SECTIONS 457(F) AND 409A. Part I, Line 6 MCLAREN HEALTH CARE CORPORATION (MHCC) HAS A LEADERSHIP INCENTIVE PROGRAM FOR LEADERS OF THE CORPORATION, SUBSIDIARY EXECUTIVES AND DIRECTORS, MANAGERS AND SUPERVISORS. THE PURPOSE OF THE PLAN IS TO ENHANCE THE ORGANIZATION'S ABILITY TO ACHIEVE ITS GOALS BY PROVIDING TOP OFFICIALS AND THE BOARD OF DIRECTORS WITH A TOOL FOR (A) CLEARLY COMMUNICATING PERFORMANCE ON THE PART OF KEY LEADERS, (B) STIMULATING AND REWARDING SUPERIOR LEVELS OF PERFORMANCE ON THE PART OF KEY LEADERS WHICH WILL ULTIMATELY BENEFIT THE COMMUNITIES MHCC SERVES, AND (C) PROTECTING MHCC'S ABILITY TO COMPETE WITH OTHER EMPLOYERS FOR HIGH-TALENT LEADERS. Form 990, Part VI, Section A, line 2 MERIDETH WIRTZ AND GREG BUSDICKER HAVE A BUSINESS RELATIONSHIP. Form 990, Part VI, Section A, line 6 THE SOLE MEMBER OF THE CORPORATION IS MCLAREN HEALTH CARE CORPORATION. Form 990, Part VI, Section A, line 7a THE MEMBER SHALL HAVE THE EXCLUSIVE RIGHT TO APPOINT AND REMOVE MEMBERS OF THE BOARD OF TRUSTEES. Form 990, Part VI, Section A, line 7b DECISIONS BY THE GOVERNING BODY ARE SUBJECT TO THE POWERS OF THE MEMBER. Form 990, Part VI, Section B, line 11b THE FORM 990 DATA IS PREPARED INTERNALLY AND SUBMITTED TO OUR AUDITING FIRM FOR RETURN PREPARATION. ONCE THE RETURNS HAVE BEEN COMPLETED, THE FORMS ARE REVIEWED BY ENTITY CFO AND THE FINANCE LEADERSHIP OF MCLAREN HEALTH CARE CORPORATION (MHCC). COPIES OF DRAFT RETURNS ARE MADE AVAILABLE TO THE MHCC BOARD MEMBERS, WHO SERVE AS THE OVERALL GOVERNING BOARD. RETURNS ARE AVAILABLE FOR ALL CORPORATIONS OF WHICH MHCC IS THE SOLE MEMBER AS WELL AS OTHER RELATED ENTITIES OF THOSE CORPORATIONS FOR REVIEW RATHER THAN HAVING THE LOCAL BOARDS REVIEW THE RETURNS. THE BOARD OF MHCC IS THE ULTIMATE ACCOUNTABLE ORGANIZATION FOR THE SYSTEM; AS SUCH IT IS THE OVERALL GOVERNING BOARD OF THE SYSTEM, WHOSE RESPONSIBILITIES INCLUDE BUT ARE NOT LIMITED TO: APPROVING ALL SUBSIDIARY BOARD MEMBERS, FINANCIAL BUDGETS, AND ISSUANCE OF DEBT. Form 990, Part VI, Section B, line 12c THE CORPORATE COMPLIANCE DEPARTMENT, IN ACCORDANCE WITH THE MCLAREN HEALTH CARE (MHC) BOARD CONFLICT OF INTEREST POLICY, ANNUALLY DISTRIBUTES THE CONFLICT OF INTEREST DISCLOSURE SURVEY TO ALL MHC CORPORATE AND SUBSIDIARY ORGANIZATION BOARD MEMBERS, EXECUTIVES AND OTHER LEADERSHIP EMPLOYEES. THE CORPORATE COMPLIANCE DEPARTMENT THROUGH THE GOVERNANCE COMMITTEE, COMPILES AND ANALYZES SURVEY DATA BY ORGANIZATION, INVESTIGATES AND REVIEWS POTENTIAL CONFLICTS WITH THE ORGANIZATION'S CEO AND BOARD CHAIR, AND WHEN NECESSARY, RECOMMENDS ACTIONS TO BE TAKEN TO RESOLVE IDENTIFIED CONFLICTS. A COMPLETE REPORT OF ALL CORPORATE AND SUBSIDIARY BOARD MEMBER AND EXECUTIVE DISCLOSURES, CONFLICTS IDENTIFIED AND ACTIONS TAKEN IS REVIEWED BY THE MHC GOVERNANCE COMMITTEE AND EACH SUBSIDIARY CEO AND BOARD CHAIR RECEIVES A REPORT SPECIFIC TO THEIR ORGANIZATION'S BOARD MEMBERS AND EXECUTIVES. CONFLICTS ARE DISCLOSED TO THE FULL BOARD AND BOARD COMMITTEES SO APPROPRIATE ACTIONS CAN BE TAKEN. ACTIONS MAY INCLUDE PROHIBITING A BOARD MEMBER FROM PARTICIPATING IN DELIBERATIONS INVOLVING TRANSACTIONS WITH A COMPANY WITH WHICH THEY CONDUCT FINANCIAL TRANSACTIONS; BOARD MEMBERS FAILING TO COMPLETE A DISCLOSURE SURVEY OR INTENTIONALLY FAILING TO REPORT A KNOWN CONFLICT OF INTEREST ARE RELIEVED OF THEIR SERVICE TO MHC. Form 990, Part VI, Section B, line 15b THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS TO REVIEW THE PERFORMANCE AND RECOMMEND THE TOTAL COMPENSATION PACKAGE OF THE MCLAREN HEALTHCARE CORPORATION'S CEO TO THE BOARD. FURTHER THE COMMITTEE ESTABLISHES THE SALARY RANGES AND PERQUISITES OF THE OTHER MOST HIGHLY COMPENSATED OFFICERS (MHC EXECUTIVE & SENIOR VICE-PRESIDENTS AND CEOS OF MHC SUBSIDIARY ORGANIZATIONS) TO THE BOARD. THE MEMBERS OF THE COMMITTEE MUST MEET THE INDEPENDENCE REQUIREMENTS OF THE APPLICABLE PROVISIONS OF SECTION 4958 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED AND FINAL TREASURY REGULATIONS SECTION 53.4958-6(C)(1)(III). THE COMMITTEE RETAINS THE SERVICES ANNUALLY OF AN INDEPENDENT FIRM WITH SIGNIFICANT QUALIFICATIONS AND EXPERIENCE TO CONDUCT A REVIEW OF THE CORPORATION'S EXECUTIVE COMPENSATION PROGRAM. THE RETAINED FIRM UTILIZES APPROPRIATE COMPENSATION COMPARABILITY DATA. THE RETAINED FIRM CONDUCTS ANALYSIS OF THE COMPETITIVENESS OF THESE PROGRAMS AND EXPRESSES AN OPINION TO THE REASONABLENESS OF THESE COMPENSATION PROGRAMS. ALL DATA UTILIZED BY THE COMMITTEE, DELIBERATIONS OF THE COMMITTEE, AND FINAL COMPENSATION DECISIONS BY THE COMMITTEE ARE DOCUMENTED IN FORMAL REPORTS AND MINUTES. THE CORPORATE COMPENSATION COMMITTEE WORKS UNDER AND PERIODICALLY RENEWS THE MCLAREN HEALTH CARE CORPORATION COMPENSATION COMMITTEE CHARTER. THE MOST RECENT YEAR THIS PROCESS WAS UNDERTAKEN WAS FISCAL YEAR 2017. Form 990, Part VI, Section C, line 19 DOCUMENTS ARE AVAILABLE UPON REQUEST. Form 990, Part IX, line 11g OTHER PROFESSIONAL FEES: Program service expenses 17,159,479. Management and general expenses 13,064,502. Fundraising expenses 0. Total expenses 30,223,981. Form 990, Part XI, line 9: CHANGE IN ADDITIONAL MINIMUM PENSION LIABILITY 7,867,809. TRANSFERS FROM RELATED ORGANIZATIONS 4,586,900. IMPAIRMENT OF ASSETS -12,133,442. PART XII, LINE 2C: THIS PROCESS HAS NOT CHANGED SINCE PRIOR YEAR. MCLAREN BAY MEDICAL FOUNDATION 1900 COLUMBUS AVE BAY CITY MI 48708 382156534 FOUNDATION MI 501(c)(3) Line 12a, I MCLAREN BAY REGION 1 MCLAREN BAY REGION 1900 COLUMBUS AVE BAY CITY MI 48708 381976271 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 BAY REGIONAL MEDICAL CENTER AUXILIARY 1908 COLUMBUS AVENUE BAY CITY MI 48708 386081235 SUPPORTING ORGANIZATION MI 501(c)(3) Line 12a, I MCLAREN BAY REGION 1 MCLAREN BAY SPECIAL CARE 3250 E MIDLAND ROAD STE 1 BAY CITY MI 48706 383161753 HOSPITAL MI 501(c)(3) Line 3 MCLAREN BAY REGION 1 MCLAREN CENTRAL MICHIGAN 1221 SOUTH DRIVE MT PLEASANT MI 48858 381420304 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 CHARLEVOIX NURSING HOME CORPORATION DBA BOULDER PARK TERRACE 14676 WEST UPRIGHT CHARLEVOIX MI 49720 383038683 SKILLED NURSING FACILITY MI 501(c)(3) Line 10 MCLAREN NORTHERN MICHIGAN 1 GREAT LAKES CANCER INSTITUTE 401 S BALLENGER HWY FLINT MI 48532 383584572 CANCER CARE CENTER MI 501(c)(3) Line 7 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN GREATER LANSING FOUNDATION 401 S GREENLAWN AVE LANSING MI 48910 382463637 FOUNDATION MI 501(c)(3) Line 7 MCLAREN GREATER LANSING 1 MCLAREN GREATER LANSING 401 S GREENLAWN AVE LANSING MI 48910 381434090 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 KARMANOS CANCER CENTER 4100 JOHN R ST DETROIT MI 48201 201649466 HOSPITAL MI 501(c)(3) Line 3 KARMANOS CANCER INSTITUTE 1 KARMANOS CANCER INSTITUTE 4100 JOHN R ST DETROIT MI 48201 381613280 CANCER RESEARCH & CARE CENTER MI 501(c)(3) Line 7 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN LAPEER REGION 1375 N MAIN ST LAPEER MI 48446 382689033 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN LAPEER REGION FOUNDATION 1375 N MAIN ST LAPEER MI 48446 382689603 FOUNDATION MI 501(c)(3) Line 12a, I MCLAREN LAPEER REGION 1 MARWOOD MANOR NURSING HOME PO BOX 5011 PORT HURON MI 48060 382683251 NURSING HOME MI 501(c)(3) Line 10 MCLAREN PORT HURON 1 MCLAREN HEALTH CARE CORPORATION ONE MCLAREN PARKWAY GRAND BLANC MI 48439 382397643 SUPPORTING ORG MI 501(c)(3) Line 12a, I N/A 0 MCLAREN HEALTH CARE VILLAGE FOUNDATION 401 S BALLENGER HIGHWAY FLINT MI 48532 262693350 SUPPORTING ORG MI 501(c)(3) Line 12a, I MCLAREN HEALTH CARE CORPORATION 1 MCLAREN HEALTH PLAN COMMUNITY G-3245 BEECHER ROAD SUITE 200 FLINT MI 48532 272204037 INSURANCE MI 501(c)(4) MCLAREN HEALTH PLAN 1 MCLAREN HEALTH PLAN INC G-3245 BEECHER ROAD FLINT MI 48532 383252216 HEALTH CARE SERVICES MI 501(c)(4) MCLAREN HEALTH CARE CORPORATION 1 MCLAREN HOSPICE & HOME CARE FOUNDATION 1515 CAL DR DAVISON MI 48423 463643089 FOUNDATION MI 501(c)(3) Line 12a, I VISITING NURSE SERVICES OF MICHIGAN 1 MCLAREN HOSPITALITY HOUSE 401 S BALLENGER HIGHWAY FLINT MI 48532 455567669 HOSPITALITY HOUSE MI 501(c)(3) Line 7 MCLAREN FLINT FOUNDATION 1 MCLAREN MEDICAL GROUP 401 S BALLENGER HWY FLINT MI 48532 382988086 MANAGEMENT COMPANY MI 501(c)(3) Line 12a, I MCLAREN HEALTH CARE CORPORATION 1 MCLAREN NORTHERN MICHIGAN 416 CONNABLE AVENUE PETOSKEY MI 49770 382146751 ACUTE CARE HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN NORTHERN MICHIGAN FOUNDATION 360 CONNABLE AVENUE PETOSKEY MI 49770 382445611 FOUNDATION MI 501(c)(3) Line 12a, I MCLAREN NORTHERN MICHIGAN 1 MCLAREN FLINT 401 S BALLENGER HWY FLINT MI 48532 382383119 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 MICHIGAN CANCER SOCIETY 4100 JOHN R ST DETROIT MI 48201 382823451 CANCER RESEARCH MI 501(c)(3) Line 7 KARMANOS CANCER INSTITUTE 1 MOUNT CLEMENS REGIONAL HEALTHCARE FOUNDATION PO BOX 326 MOUNT CLEMENS MI 48046 382578873 FOUNDATION MI 501(c)(3) Line 10 MCLAREN MACOMB 1 MCLAREN MACOMB 1000 HARRINGTON MOUNT CLEMENS MI 48043 381218516 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 NORTH OAKLAND NORTH MACOMB IMAGING INC 355 BARCLAY CIR STE A ROCHESTER HILLS MI 48307 382807040 MRI IMAGING MI 501(c)(3) Line 3 MCLAREN OAKLAND 1 NORTHERN MICHIGAN HEMATOLOGY AND ONCOLOGY 416 CONNABLE AVENUE PETOSKEY MI 49770 320020293 PHYSICIAN PRACTICE MI 501(c)(3) Line 3 MCLAREN NORTHERN MICHIGAN 1 NORTHERN MICHIGAN MEDICAL MANAGEMENT 416 CONNABLE AVENUE PETOSKEY MI 49770 208458840 PHYSICIAN PRACTICE MI 501(c)(3) Line 3 MCLAREN NORTHERN MICHIGAN 1 PARKVIEW PROPERTY MANAGEMENT CORPORATION PO BOX 5011 PORT HURON MI 48060 382467310 MANAGEMENT CORP MI 501(c)(3) Line 12a, I MCLAREN PORT HURON 1 MCLAREN OAKLAND FOUNDATION 50 NORTH PERRY STREET PONTIAC MI 48342 200442217 FOUNDATION MI 501(c)(3) Line 12c, III-FI MCLAREN OAKLAND 1 MCLAREN OAKLAND 50 NORTH PERRY STREET PONTIAC MI 48342 381428164 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION 1 PORT HURON HOSPITAL FOUNDATION PO BOX 5011 PORT HURON MI 48060 382777750 FOUNDATION MI 501(c)(3) Line 12a, I MCLAREN PORT HURON 1 REGIONAL EMERGENCY MEDICAL SERVICE INC 25400 W 8 MILE ROAD SOUTHFIELD MI 48034 383255499 AMBULANCE SERVICE MI 501(c)(3) Line 10 MCLAREN MEDICAL MANAGEMENT INC 1 THE CARDIAC INSTITUTE DBA MICHIGAN HEART & VASCULAR SPECIALISTS 416 CONNABLE AVENUE PETOSKEY MI 49770 262774689 PHYSICIAN PRACTICE MI 501(c)(3) Line 3 MCLAREN NORTHERN MICHIGAN 1 VISITING NURSE SERVICE OF MICHIGAN 1515 Cal Drive DAVISON MI 48423 383491714 HEALTH CARE SERVICES MI 501(c)(3) Line 10 MCLAREN HEALTH CARE CORPORATION 1 VITALCARE INC 761 LAFAYETTE AVENUE CHEBOYGAN MI 49721 382527255 HOSPICE CARE/HOME HEALTH SERVICES MI 501(c)(3) Line 10 MCLAREN NORTHERN MICHIGAN 1 MCLAREN FLINT FOUNDATION 401 S BALLENGER HIGHWAY FLINT MI 48532 381358053 SUPPORTING ORGANIZATION MI 501(c)(3) Line 12a, I MCLAREN FLINT 1 MCLAREN - NORTHERN EQUITIES CANCER CENTER PROJECT LLC 39000 COUNTRY CLUB DRIVE FARMINGTON HILLS MI 48331 263112935 RENTAL REAL ESTATE MI N/A MOUNT CLEMENS REGIONAL HEALTH BUILDING HEALTH PARTNERS 1000 HARRINGTON ST MOUNT CLEMENS MI 48043 262524717 BUILDING MANAGEMENT MI N/A CLARKSTON PROPERTY ASSOCIATES 50 NORTH PERRY STREET PONTIAC MI 48342 432006072 REAL ESTATE MI N/A C 0 DELPHINUS INVESTMENT INC 4100 JOHN R ST DETROIT MI 48075 454758176 HOLD PASSIVE INVESTMENT MI N/A C 0 HEALTH ADVANTAGE INC G3245 BEECHER ROAD FLINT MI 48532 912141720 INSURANCE MI N/A C 0 HOSPITAL HEALTH CARE INC 50 NORTH PERRY STREET PONTIAC MI 48342 382643070 HEALTH CARE MI N/A C 0 MCLAREN INSURANCE COMPANY LTD 10 MAIN ST GRAND CAYMAN CJ INSURANCE CJ N/A C 0 MID-MICHIGAN PHYSICIANS PC 2510 KERRY STREET SUITE 200 LANSING MI 48912 383267121 PHYSICIAN PRACTICE MI N/A C 0 MCLAREN PHYSICIAN PARTNERS ONE MCLAREN PARKWAY GRAND BLANC MI 48439 383136458 MANAGED CARE MI N/A C 0 RAPIN & RAPIN INC DBA PRESCRIPTION SERVICES PHARMACY 416 CONNABLE AVENUE PETOSKEY MI 49770 383465261 RETAIL PHARMACY MI N/A C 0 VITALCARE HOME MEDICAL EQUIPMENT INC 761 LAFAYETTE AVENUE CHEBOYGAN MI 49721 382662954 SALE AND RENTAL OF DURABLE MEDICAL EQUIPMENT MI N/A C 0 0 1 1 0 0 0 0 0 0 0 1 1 1 1 1 1 1 1 1 MCLAREN MEDICAL GROUP Q 169893 Allocation of actual cost MCLAREN MEDICAL GROUP R 1670446 Allocation of actual cost MCLAREN MEDICAL GROUP S 286621 Allocation of actual cost MCLAREN MEDICAL GROUP P 355309 Allocation of actual cost MCLAREN FLINT P 85685 Allocation of actual cost MCLAREN FLINT O 63835 Cost of compensation MCLAREN MACOMB O 121849 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION M 16830325 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION P 10942341 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION Q 86144 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION S 102412 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION C 5000000 Cash MARWOOD MANOR NURSING HOME L 749587 Allocation of actual cost KARMANOS CANCER CENTER L 254330 Allocation of actual cost KARMANOS CANCER CENTER P 306635 Allocation of actual cost MCLAREN HEALTH CARE CORPORATION N 264650 Fair market value PARKVIEW PROPERTY MANAGEMENT CORP K 806878 Alloc atio n of actual cost PARKVIEW PROPERTY MANAGEMENT CORP O 188231 Cost of compensation PARKVIEW PROPERTY MANAGEMENT CORP C 5587106 Allocation of actual cost PARKVIEW PROPERTY MANAGEMENT CORP B 150000 Allocation of actual cost PORT HURON HOSPITAL FOUNDATION C 181523 Fair market value PORT HURON HOSPITAL FOUNDATION L 53565 Allocation of actual cost PORT HURON HOSPITAL FOUNDATION O 393376 Cost of compensation VISITING NURSE SERVICE OF MICHIGAN P 1108780 Allocation of actual cost