2018-01-08T14:24:07-06:00 2017-06-30 350921680 CROWE HORWATH LLP 9600 Brownsboro Road Suite 400 Louisville KY 402411122 990 2016-07-01 383382353 Spectrum Health System SPEC 6167745083 100 Michigan St NE Grand Rapids MI 49503 Ronald J Knaus SVP & CFO 2017-12-27 true Rachel Spurlock P00520729 5023263996 2016 2021-01-29 14:40:06Z Richard C Breon 100 Michigan St NE Grand Rapids MI 49503 863310107 false 5981 X www.spectrumhealth.org X 1997 MI To improve the health of the communities we serve by providing administrative and supporting services to the healthcare system affiliated entities. 14 10 4928 0 0 0 3256070 191523 610952824 667044096 32771049 63824472 0 0 646979943 731060091 215809 45833 0 0 383733585 402678137 0 0 0 242539367 268951193 626488761 671675163 20491182 59384928 1731467664 1852830773 688992387 626002615 1042475277 1226828158 To improve the health of the communities we serve. false false 665945107 45833 667038733 SPECTRUM HEALTH SYSTEM PROVIDES COMMON MANAGEMENT OF THE NOT-FOR-PROFIT HEALTH CARE SYSTEM ACTIVITIES CARRIED ON BY SUPPORTED ORGANIZATIONS. THE SUPPORTED ORGANIZATIONS INCLUDE 11 SEPARATELY LICENSED HOSPITAL FACILITIES, 175 AMBULATORY AND SERVICE SITES, AND 2,146 LICENSED BEDS SYSTEMWIDE WITH FACILITIES THAT INCLUDE A MEDICAL CENTER, REGIONAL COMMUNITY HOSPITALS, A DEDICATED CHILDREN'S HOSPITAL, A MULTISPECIALTY MEDICAL GROUP, AFFILIATED PHYSICIANS AND A NATIONALLY RECOGNIZED HEALTH PLAN WITH OVER 792,000 INSURED LIVES. 665945107 true true false true false false false false false false true false false true true false false true false false false false false false false false false true false true false true true true false false true true false false false false true true true true true false true 430 0 true 4928 true false false false false false false false false false false X 14 10 true false false false false false false true true false false true true true true true true true true true true X Celeste M Mcintyre 6167745083 100 Michigan St NE MC498 Grand Rapids MI 49503 Richard DeVos Jr Chair 2.0 0 X X 113 0 0 ROBERT ROTH Vice Chair 1.0 0 X X 35000 0 0 Elizabeth Nickels Treasurer 1.0 0 X X 35000 0 0 Richard Breon PRESIDENT / CEO 46.0 4.0 X X 7945374 0 1522626 Stephen Boshoven Director 1.0 0 X 32000 0 0 Steve Ender Director 1.0 0 X 30500 0 0 Melonie Ice MD Director 1.0 0 X 30500 0 0 Michael Jandernoa Director 1.0 0 X 22500 0 0 Rex Killian Director 1.0 0 X 35500 0 0 M Ashraf Mansour MD Director 1.0 49.0 X 0 837827 41762 Mark Murray Director 1.0 0 X 32500 0 0 William Payne Director 1.0 0 X 30000 0 0 Michelle Van Dyke Director 1.0 0 X 30000 0 0 Sean Welsh Director 1.0 0 X 30000 0 0 Christina Freese-Decker EVP, Chief Operating Officer 46.0 4.0 X 1169543 0 522065 Ronald Knaus SVP, Chief Financial Officer 50.0 0.0 X 1006662 0 588911 David Leonard Secretary, SVP, Chief Legal Officer 50.0 0 X 753142 0 298936 Celeste McIntyre SVP, Corporate Controller 50.0 0 X 253781 0 46343 Patrick O'Hare SVP, Facilities & Chief Information Officer 49.0 1.0 X 803645 0 344631 PAMELA RIES SVP, Chief Human Resources Officer 50.0 0.0 X 627555 0 265413 Lori Smith SVP, Treasury 50.0 0 X 416130 0 136554 Seth Wolk MD System CMO / President, SHMG - Part Year 47.0 3.0 X 1106922 0 449863 Roger Jansen SVP, Business Development / Chief Strategy Officer 50.0 0 X 927113 0 399497 Nancy Tait Sr. Dir, Strategic Projects 50.0 0 X 960353 0 247108 John Mosley EVP, Special Projects - Part Year 50.0 0 X 936110 0 103758 Julian Schink VP, Clinical Improvement/Integration - Part Year 50.0 0 X 739931 0 122690 MICHAEL P FREED Former President/CEO - Priority Health 0.0 0 X 240786 0 440965 Matthew Van Vranken Former EVP, SH Delivery System 0.0 0.0 X 347732 0 0 18578392 837827 5531122 597 true true false CHANGE HEALTHCARE SOLUTIONS 3055 LEBANON PIKE NASHVILLE TN 37214 IT CONSULTING 5495030 OPTIV SECURITY INC 1125 17TH STREET SUITE 1700 DENVER CO 80202 IT SECURITY 4675550 UNIVERSAL MCCANN 100 WEST 33RD STREET NEW YORK NY 10001 MARKETING & ADV 4635976 ALTEGRA HEALTH 1725 N COMMERCE PARKWAY WESTON FL 33326 IT CONSULTING 3670164 PRICEWATERHOUSECOOPERS LLP 300 MADISON AVENUE NEW YORK NY 100176204 IT CONSULTING 2662809 135 X 191523 191523 Management Fee Revenue 561000 663736785 663736785 Contractual Incentives 900099 1376405 1376405 Shared Services Revenue 561000 1059541 1059541 Affiliate Physician Program 900099 275721 275721 Medical Record Fees 900099 122706 122706 472938 472928 0 10 667044096 26740615 26740615 0 0 169333873 0 132244663 5353 37089210 -5353 37083857 -5353 37089210 0 0 0 0 0 731060091 667038733 0 63829835 45833 45833 0 0 17726675 17726675 440542 440542 309606321 309379501 226820 10869455 10869455 40620435 40573994 46441 23414709 23414709 3544682 3544682 1707515 1707515 394102 394102 66108313 66083590 24723 0 22684324 22606887 77437 21607325 21514918 92407 76433832 76433832 22831087 22830209 878 4939377 4936444 2933 3110762 3106606 4156 -1150206 -1150206 30970819 30970819 1024411 1023357 1054 Dues and Subscriptions 2794200 2794200 Staff Recognition 1314355 1314355 Recruitment Expense 926940 926940 Medical Supplies 270579 270579 9438776 9437766 1010 0 671675163 665945107 5730056 0 1500 1500 32187212 65642352 14428 14192 0 0 42387708 33625374 34148362 31316704 183035906 88927009 80814825 94108897 1261999996 1329470635 2656680 1226935 47785020 47752124 8213711 8143725 221258222 241528335 1731467664 1852830773 101454224 116288508 37302 16128 0 0 47955598 53103344 539545263 456594635 688992387 626002615 X 1042475277 1226828158 1042475277 1226828158 1731467664 1852830773 X 59384928 82031066 42936887 X false true X true false X X X 11 SPECTRUM HEALTH HOSPITALS 381360529 3 true 275470515 0 SPECTRUM HEALTH PRIMARY CARE PARTNERS 381358164 3 true 73804486 0 SPECTRUM HEALTH UNITED 381358412 3 true 11869718 0 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION 381359517 3 true 9529983 0 SPECTRUM HEALTH CONTINUING CARE 383242232 9 true 8387004 0 MECOSTA COUNTY MEDICAL CENTER 381368744 3 true 7785006 0 ZEELAND COMMUNITY HOSPITAL 381411184 3 true 6963009 0 REED CITY HOSPITAL CORPORATION 382770076 3 true 6758031 0 MEMORIAL MEDICAL CENTER OF WEST MICHIGAN 381359266 3 true 6542990 0 PENNOCK HOSPITAL 381360562 3 true 6232026 0 SPECTRUM HEALTH FOUNDATION 382752328 7 true 12000 0 11 413354768 0 true false false false false true false true false false false false false false false true false true X true true Schedule A, Part IV, Section A, Line 1 SUPPLEMENTAL INFORMATION. SPECTRUM HEALTH SYSTEM IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE PURPOSES OF THIS ORGANIZATION, AS DEFINED IN THE ARTICLES OF INCORPORATION, ARE AS FOLLOWS: PURPOSES 2.1. THE PURPOSES FOR WHICH THE CORPORATION IS ORGANIZED ARE TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT ALL OF THE PURPOSES OF MECOSTA COUNTY MEDICAL CENTER, MEMORIAL MEDICAL CENTER OF WEST MICHIGAN, NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION, PENNOCK HOSPITAL, REED CITY HOSPITAL CORPORATION, SPECTRUM HEALTH CONTINUING CARE, SPECTRUM HEALTH FOUNDATION, SPECTRUM HEALTH HOSPITALS, SPECTRUM HEALTH PRIMARY CARE PARTNERS, SPECTRUM HEALTH UNITED, AND ZEELAND COMMUNITY HOSPITAL (THE "SUPPORTED ORGANIZATIONS") ALL OF WHICH ARE DESCRIBED IN SECTION 501(C)(3) AND EITHER SECTION 509(A)(1) OR SECTION 509(A)(2) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED OR COMPARABLE PROVISIONS OF SUBSEQUENT LEGISLATION (THE "CODE"). SUBJECT TO AND IN FURTHERANCE OF THE FOREGOING, THE PURPOSES OF THE CORPORATION SHALL BE: 2.1.1. TO FORMULATE AND IMPLEMENT POLICIES AND PROGRAMS DESIGNED TO ENABLE AND/OR CAUSE THE SUPPORTED ORGANIZATIONS TO FUNCTION AS A COORDINATED HEALTH CARE DELIVERY SYSTEM , TO PROVIDE DIRECTION AND MANAGEMENT TO THE SUPPORTED ORGANIZATIONS, AND TO ACT AND/OR MAKE DECISIONS FOR THE BENEFIT OF SUCH SUPPORTED ORGANIZATIONS. 2.1.2. TO ESTABLISH AND MAINTAIN, EITHER DIRECTLY, THROUGH SUPPORTED ORGANIZATIONS OR IN COOPERATION WITH OTHER ORGANIZATIONS, SUCH FACILITIES AND SERVICES FOR THE CARE OF PERSONS SUFFERING FROM ILLNESS, INJURY OR DISABILITY, THE ELDERLY AND THE INDIGENT AND FOR THE PRESERVATION AND IMPROVEMENT OF HEALTH AS THE BOARD OF DIRECTORS MAY DETERMINE, INCLUDING, WITHOUT LIMITATION: 2.1.2.1. HOSPITALS FOR THE INPATIENT OR OUTPATIENT CARE OF PERSONS SUFFERING FROM ILLNESS, INJURY AND DISABILITY, FOR THE PREVENTION OF ILLNESS, INJURY AND DISABILITY AND FOR THE MAINTENANCE OF HEALTH. 2.1.2.2. FACILITIES PROVIDING AMBULATORY CARE, NURSING CARE, REHABILITATION AND OTHER SERVICES. 2.1.2.3. CLINICS THROUGH WHICH PHYSICIANS AND OTHER PROVIDERS RENDER PROFESSIONAL MEDICAL SERVICES. 2.1.2.4. OTHER ACTIVITIES AND PROGRAMS DESIGNED AND CARRIED ON TO PROMOTE THE GENERAL HEALTH OF THE COMMUNITY. 2.1.3. TO PROMOTE AND CARRY ON SUCH SCIENTIFIC RESEARCH AS THE BOARD OF DIRECTORS MAY DETERMINE WITH RESPECT TO THE CAUSE, TREATMENT AND PREVENTION OF ILLNESS AND INJURY, THE IMPROVEMENT OF PUBLIC HEALTH AND OTHER MATTERS. 2.1.4. TO PARTICIPATE IN AND TO CARRY ON SUCH ACTIVITIES AS THE BOARD OF DIRECTORS MAY DETERMINE FOR THE EDUCATION OF PHYSICIANS, NURSES, OTHER PROFESSIONAL AND PARAPROFESSIONAL PERSONNEL AND THE PUBLIC ABOUT RENDERING CARE TO THE SICK, INJURED AND DISABLED, ABOUT PREVENTION OF ILLNESS AND INJURY AND ABOUT THE PROMOTION OF HEALTH. 2.1.5. TO CONDUCT ACTIVITIES, EITHER DIRECTLY, THROUGH RELATED ORGANIZATIONS OR IN COOPERATION WITH ORGANIZATIONS EXEMPT FROM TAX UNDER SECTION 501 (C)(3) OF THE CODE OR COMPARABLE PROVISIONS OF SUBSEQUENT LEGISLATION IN ORDER TO RAISE FUNDS TO FURTHER THE PURPOSES OF THE CORPORATION, SUBJECT, HOWEVER, TO ALL LIMITATIONS ON THE NATURE OR EXTENT OF SUCH ACTIVITIES APPLICABLE, FROM TIME TO TIME, TO ORGANIZATIONS DESCRIBED IN SECTIONS 501(C)(3) AND 509(A)(3) OF THE CODE. 2.1.6. TO ACQUIRE, TO OWN, TO DISPOSE OF AND TO DEAL WITH REAL AND PERSONAL PROPERTY AND INTERESTS THEREIN AND TO APPLY GIFTS, GRANTS, BEQUESTS AND DEVISES AND THE PROCEEDS THEREOF IN FURTHERANCE OF THE PURPOSES OF THE CORPORATION. 2.1.7. TO DEAL WITH AND DISTRIBUTE THE CORPORATION'S INCOME AND ASSETS IN SUCH MANNER AS IN THE JUDGMENT OF THE BOARD OF DIRECTORS WILL BEST PROMOTE ITS OBJECTIVES AND PURPOSES, WITHOUT LIMITATION EXCEPT SUCH, IF ANY, AS MAY BE CONTAINED IN INSTRUMENTS UNDER WHICH SUCH PROPERTY IS CONVEYED TO THE CORPORATION. 2.1.8. TO DO SUCH THINGS AND TO PERFORM SUCH ACTS TO ACCOMPLISH ITS PURPOSES AS ARE PERMITTED BY SECTIONS 501(C)(3) AND 509(A)(3) OF THE CODE, WITH ALL THE POWERS CONFERRED ON NONPROFIT CORPORATIONS BY THE LAWS OF THE STATE OF MICHIGAN. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES). Schedule A, Part IV, Section A, Line 6 Support to other supported orgs Spectrum Health System provides services and support to organizations within the integrated health care system that are outside of Spectrum Health System's supported organizations. The other organizations Spectrum Health System provides services and support to are related organizations reported on Schedule R. Schedule A, Part IV, Section D, Line 2 Officers Appointed Or Serving Supported Org. Spectrum Health System maintains a close and continuous working relationship with its supported organizations through integrated policies and procedures and unified leadership. As described in Schedule A, Part IV, Section E, line 3a, Spectrum Health System is the parent to all supported organizations and as such has the power to appoint/elect a majority of the directors/trustees of each of the supported organizations. Schedule A, Part IV, Section D, Line 3 Supp. Org. Have Significant Voice In Investment Policies As noted below, investments of cash and/or reserves, whether on an individual basis or as part of a pooled investment strategy, is a reserved power maintained by the supporting organization. The consolidated treasury function is considered a shared service function provided by the supporting organization to each supported organization. As part of that shared service function, the supporting organization controls all investment policies, and directs all investment strategies. This provides many benefits including reduced costs and subject matter expertise to yield greater results. The supported organizations have the ability to provide direction specifically related to their respective assets as it relates to grant making and directing the use of the organization's income or assets. Schedule A, Part IV, Section E, Line 3a Power To Appoint/Elect Majority of Officer/Director/Trustee Each of the supported organizations' bylaws set forth the following reserved powers of Spectrum Health System. The Corporation's Board of Directors may recommend action to the System with respect to the following reserved powers. The actions listed below may, notwithstanding any other provision of these Bylaws or the Articles of Incorporation, be unilaterally caused and/or taken by the System, within its sole and exclusive power and discretion, and shall not be deemed authorized unless and until approved by the System: -Election and/or removal of the members of the Corporation's Board of Directors pursuant to the nomination, election and removal processes set forth in these Bylaws; -Election and/or removal of the Corporation's Chairperson of the Board of Directors; and -Hiring, discharge, and evaluation of the Corporation's President as delegated by the System's Board of Directors to the System's Chief Executive Officer (or designee). Schedule A, Part IV, Section E, Line 3b Substantial Direction Over Policies/Programs/Activities Each of the supported organizations' bylaws set forth the following reserved powers of Spectrum Health System. The actions listed below may be unilaterally caused and/or taken by the System, within its sole and exclusive power and discretion, and shall not be deemed authorized unless and until approved by the System: -Amendment of the Articles of Incorporation or Bylaws of the supported organization; -Election and/or removal of the members of the supported organization's Board of Directors; -Election and/or removal of the supported organization's Chairperson of the Board of Directors; -Hiring, discharge, and evaluation of the supported organization's President; -Adoption of the supported organization's strategic plan; -Adoption of the supported organization's annual operating and capital budgets and any amendments to such budgets in excess of the Authority Matrix Amount; -All capital expenditures by the supported organization in excess of the amount which would require approval by the System (the "Authority Matrix Amount"); -All borrowings or guarantees of indebtedness by the supported organization (or any entity controlled by the supported organization through ownership or membership interest); -All lending by the supported organization (or any subsidiary) to persons other than the System or a subsidiary in excess of the Authority Matrix Amount; -The supported organization's or any subsidiary's investments of cash and/or reserves, whether on an individual basis or as part of a pooled investment strategy; -Any merger or consolidation of the supported organization (or any subsidiary), or any other change in ownership percentages, control, or capital structure; -The creation of any entity controlled, directly or indirectly, by the supported organization; -The sale or transfer of more than ten percent (10%) of the assets of the supported organization (or any subsidiary) to any person or entity not controlled by the System; -Dissolution of the supported organization or any subsidiary; -The selection, retention, and oversight of the outside auditors for the supported organization (or any subsidiary); and -Any other approval for which System approval is required by law. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false true 129 false false true 240957 false true 153016 394102 false Schedule C, Part II-B, Line 1 Description of the activities reported on lines 1A through 1I Spectrum Health System employs government affairs staff who are chiefly responsible for Government Affairs activities. Additionally the organization employs a Vice President, Government Relations/Public Policy to oversee this role. Other executive staff are engaged on a very limited basis for lobbying purposes. Spectrum Health System retains federal and state level multi-client lobby firms. The function of their respective duties involves direct contact with legislators, their staff, government officials, or a legislative body on numerous legislative and regulatory issues of interest to the organization. The amount is reported in lines 1g "Direct contact with legislators, their staffs, government officials, or a legislative body" and 1i, "Other activities." Direct contact with qualifying individuals includes sending letters, publications, making phone calls or meeting with government officials, their staff or legislators. Schedule C, Part II-B, Line 1i Other activities Spectrum Health System is a member of the American Hospital Association, Michigan Health & Hospital Association and Children's Hospital Association. Lobbying expenditures reported on Line 1i reflect activities performed by trade organizations on the filing organization's behalf. 4471063 619719 3851344 7312217 2696917 4615300 9881966 2790497 7091469 161370660 82819876 78550784 94108897 Post Retirement Benefits 99253125 Due From Affiliates 117453604 Other Assets 24821606 241528335 Due to Affiliates 144926894 Post Retirement Benefits 131381211 SWAP Market Value 99940246 Insurance 64679846 Other Liabilities 15666438 456594635 true SPECTRUM HEALTH HOSPITALS 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 381360529 501(C)(3) 45833 MEDICAL CARE 1 0 Schedule I, Part I, Line 2 Procedures for monitoring use of grant funds. Grants are received by the Healthier Communities department within Spectrum Health and they are administered/awarded by Spectrum Health Hospitals, a related tax-exempt organization. Spectrum Health only provides grants to organizations that have a mission and values that closely align with the mission and values of Spectrum Health. Spectrum Health focuses on providing grants to organizations that improve the health of the underserved in the community and/or organizations that increase access to health care. Recipients receiving grants greater than $25,000 are required to submit to Spectrum Health quarterly itemized financial reports. For grants less than $25,000 Spectrum Health documents the restriction of the funds for specific programs that support the underserved or increase access to health care. The purpose of not requesting financial reports for smaller gifts is due to the significant level of effort that it would impose upon the community organizations who often have limited resources to provide the documentation. X X X true true X X X X X true true false false false false false false false Richard Breon PRESIDENT / CEO 1292901 0 6604791 0 47682 0 1311971 0 210655 0 9468000 0 5573130 0 M Ashraf Mansour MD Director 0 615152 0 209751 0 12924 0 26500 0 15262 0 879589 0 0 MICHAEL P FREED Former President/CEO - Priority Health 46953 0 89976 0 103857 0 344916 0 96049 0 681751 0 89976 0 Christina Freese-Decker EVP, Chief Operating Officer 734498 0 390398 0 44647 0 400371 0 121694 0 1691608 0 48693 0 Ronald Knaus SVP, Chief Financial Officer 616494 0 360724 0 29444 0 481370 0 107541 0 1595573 0 69284 0 David Leonard Secretary, SVP, Chief Legal Officer 458614 0 272841 0 21687 0 212591 0 86345 0 1052078 0 57182 0 Celeste McIntyre SVP, Corporate Controller 204043 0 48366 0 1372 0 8409 0 37934 0 300124 0 0 0 Patrick O'Hare SVP, Facilities & Chief Information Officer 499504 0 281543 0 22598 0 268314 0 76317 0 1148276 0 48785 0 PAMELA RIES SVP, Chief Human Resources Officer 414388 0 193397 0 19770 0 197922 0 67491 0 892968 0 25632 0 Lori Smith SVP, Treasury 282676 0 120273 0 13181 0 75147 0 61407 0 552684 0 23317 0 Matthew Van Vranken Former EVP, SH Delivery System 0 0 98712 0 249020 0 0 0 0 0 347732 0 98712 0 Seth Wolk MD System CMO / President, SHMG - Part Year 724703 0 336751 0 45468 0 333414 0 116449 0 1556785 0 0 0 Roger Jansen SVP, Business Development / Chief Strategy Officer 583226 0 322975 0 20912 0 306162 0 93335 0 1326610 0 47790 0 Nancy Tait Sr. Dir, Strategic Projects 277549 0 678358 0 4446 0 193577 0 53531 0 1207461 0 583735 0 John Mosley EVP, Special Projects - Part Year 308543 0 560671 0 66896 0 23850 0 79908 0 1039868 0 277687 0 Julian Schink VP, Clinical Improvement/Integration - Part Year 542810 0 184208 0 12913 0 18550 0 104140 0 862621 0 0 0 Schedule J, Part I, Line 1a First-class or charter travel The organization has provided first class travel and/or charter travel for certain executive employees and/or board members in limited situations. First class and/or charter travel is utilized when commercial air travel was not available for a destination, or not efficient due to schedules and/or connections, and also for bi-annual board retreat travel. In the limited situations where first class and/or charter travel was utilized, it was paid for as part of a corporate award airline mileage program at no additional cost to the organization. To the extent the benefit is deemed reportable, it is treated as taxable compensation in a 1099 or W-2 to the recipient. Schedule J, Part I, Line 1a Travel for companions The organization provided companion travel for eight executive employees and three board members. The related amounts were treated as taxable compensation and included in Form W-2. Schedule J, Part I, Line 1a Health or social club dues or initiation fees The organization provided health club dues for eight executive employees. These amounts were treated as taxable compensation and included in Form W-2. Schedule J, Part I, Line 4a Severance or change-of-control payment $249,021 Matthew Van Vranken Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan $5,573,130 Richard Breon $89,976 Michael P. Freed $48,693 Christina Freese-Decker $47,790 Roger Jansen $69,284 Ronald Knaus $57,182 David Leonard $277,687 John Mosley $48,785 Patrick O'Hare $23,317 Lori Smith $583,735 Nancy Tait $98,712 Matthew Van Vranken $25,632 Pamela Ries SCHEDULE J, PART I, LINE 4B IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, DO "PARTICIPATE IN" SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN(S). SOME INDIVIDUALS RECEIVED DISTRIBUTIONS DURING THE YEAR (AS REPORTED ON THIS LINE) WHEREAS OTHERS PARTICIPATED IN THE PLAN(S) BUT DID NOT RECEIVE DISTRIBUTIONS. Due to certain age restrictions of the plan, both Richard Breon and Nancy Tait received a distribution from the supplemental executive retirement plan this year pursuant to the plan requirements. DISTRIBUTIONS REPORTED ON THIS LINE ARE ALSO INCLUDED IN SCHEDULE J, PART II, COLUMN F AS COMPENSATION REPORTED IN A PRIOR YEAR. The nonqualified retirement plans are an industry standard and are subject to the funding requirements of nonqualified deferred compensation plans under ERISA and federal tax regulations. Laura Freed Family Member See Schedule O true 4125 4125 Celeste McIntyre Key Employee Tuition Assistance X 13500 14192 false false true 14192 DP FOX SPORTS AND ENTERTAINMENT BUSINESS 200000 SEE SCHEDULE L, PART V false MS ALLYSON BREON FAMILY 128697 SEE SCHEDULE L, PART V false MS LAURA FREED FAMILY 116127 SEE SCHEDULE L, PART V false AMWAY HOTEL CORPORATION BUSINESS 103921 SEE SCHEDULE L, PART V false MR MARK BREON FAMILY 100094 SEE SCHEDULE L, PART V false MS KRISTEN O'HARE FAMILY 59119 SEE SCHEDULE L, PART V false MR BRETT EISELER FAMILY 36505 SEE SCHEDULE L, PART V false Schedule L, Part V FAMILY AND BUSINESS TRANSACTIONS WITH INTERESTED PERSONS MR. RICHARD DEVOS, JR, A BOARD MEMBER, HAS INDIRECT OWNERSHIP IN TWO TAXABLE ENTITIES THAT HAVE A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINES 1 & 4) MR. RICHARD BREON, AN OFFICER AND BOARD MEMBER, HAS A SON AND DAUGHTER-IN-LAW WHO ARE EMPLOYED BY THE ORGANIZATION. (PART IV, LINES 2 & 5) MR. MICHAEL FREED, A FORMER OFFICER, HAS A DAUGHTER WHO IS EMPLOYED BY THE ORGANIZATION. (PART IV, LINE 3) MS. ELIZABETH NICKELS, A BOARD MEMBER, HAS A SON-IN-LAW WHO IS EMPLOYED BY THE ORGANIZATION. (PART IV, LINE 7) MR. PATRICK O'HARE, A KEY EMPLOYEE, HAS A DAUGHTER WHO IS EMPLOYED BY THE ORGANIZATION. (PART IV, LINE 6) Form 990, Part VI, Line 6 CLASSES OF MEMBERS OR STOCKHOLDERS THE ORGANIZATION IS ORGANIZED ON A NON-STOCK DIRECTORSHIP BASIS WITH NO MEMBERS. Form 990, Part VI, Line 7b DECISIONS SUBJECT TO APPROVAL OF MEMBERS THE ORGANIZATION IS ORGANIZED ON A NON-STOCK DIRECTORSHIP BASIS WITH NO MEMBERS. Form 990, Part VI, Line 2 Family/business relationships amongst interested persons MS. MICHELLE VAN DYKE AND MS. CHRISTINA FREESE-DECKER - Business relationship, Mr. Richard Breon and MS. CHRISTINA FREESE-DECKER - Business relationship, MR. RICHARD DEVOS, JR. AND MR. WILLIAM PAYNE - Business relationship Form 990, Part VI, Line 11b Review of form 990 by governing body A copy of the Form 990 is provided to the Board of Directors prior to filing. The review process for this Form 990 is as follows: 1. Preparation of the return is supervised and reviewed by the Organization's Corporate Tax Manager. 2. A second review is performed by an external CPA firm with expertise in tax-exempt return preparation. 3. The return is reviewed by the Organization's finance and legal departments (including the Chief Financial Officer, Chief Legal Officer and Corporate Controller) and shared with the members of the Finance and Audit Committee and Board of Directors. 4. The Organization's Chief Financial Officer reviews comments or questions received by members of the Board of Directors, if any, to address or to incorporate, as appropriate, into the return prior to filing. Form 990, Part VI, Line 12c Conflict of interest policy BOARD OF DIRECTORS 1. Conflicts of interest must be disclosed, BOTH VIA AN ANNUAL ELECTRONIC DISCLOSURE PROCESS as well as verbally at a board meeting prior to discussion of any agenda item with regard to which a board member has a conflict. 2. A person having a financial interest in a proposed transaction or arrangement may make a presentation at a meeting of the Board of Directors or committee considering that transaction or arrangement, but after that presentation he or she shall leave the meeting during discussion and voting on that proposed transaction or arrangement. The person having the financial interest shall not be counted in determining whether a quorum is present. 3. The chairperson of the Board of Directors or committee shall, if appropriate, appoint a disinterested person or committee (including outside advisors) to investigate alternatives to the proposed transaction or arrangement, and to advise whether the proposed transaction or arrangement is in Spectrum Health's best interest. 4. The Board of Directors or committee shall exercise due diligence to determine whether Spectrum Health can, with reasonable efforts, obtain a more advantageous transaction or arrangement that would not give rise to a conflict of interest. 5. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the Board of Directors or committee shall determine by a majority vote of the disinterested directors and members whether the proposed transaction or arrangement is in Spectrum Health's best interest and for its own benefit and whether the transaction is fair and reasonable to Spectrum Health, and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. 6. The minutes of the meetings of the Board of Directors and all of Spectrum Health's committees shall set forth: a)The names of the persons who disclosed a financial interest in a proposed transaction or arrangement involving Spectrum Health or any of its subsidiaries and the nature of the financial interest; and b)The names of the persons who were present for discussions and votes relating to such transaction or arrangement, including any discussion of alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with that matter. The votes of individual members need not be recorded unless otherwise directed by the Board of Directors or committee. 7. There is an ongoing requirement that members of the board of directors complete another disclosure questionnaire at any point during his/her tenure on the board of directors when a new potential conflict of interest arises. If a member of the board of directors completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments for review. MANAGEMENT 1. Upon acceptance of an employment offer, each member of management completes a conflict of interest disclosure questionnaire. A copy of the member of management's disclosure questionnaire is sent to Spectrum Health's organizational integrity department. A copy of the member of management's disclosure is reviewed by Spectrum Health's COI coordinator and escalated to the COI Committee if necessary. 2. Annually, each member of management completes a conflict of interest disclosure questionnaire electronically. The disclosure questionnaire is reviewed by the legal, organizational integrity, internal audit, and human resources departments. 3. There is an ongoing requirement that members of management complete another disclosure questionnaire at any point during his/her employment when a new potential conflict of interest arises. If a member of management completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments. 4. The legal, organizational integrity, internal audit, and human resources departments, in consultation with executive management, determine how any reported conflicts should be managed. Management of a conflict may take a variety of different forms from implementation of a management plan to requiring that the member of management cease the activity creating the conflict or, in extreme cases, leave Spectrum Health's employment. Management is determined on an individual basis based upon the facts and circumstances surrounding the disclosure. The purpose of conflict management is to provide transparency within Spectrum Health and to ensure that Spectrum Health's employees are always acting in the best interest of Spectrum Health. Form 990, Part VI, Line 15a Process to establish compensation of top management official The Spectrum Health System Board of Directors (through its Executive Committee) uses the following process for determining compensation of the top management official, other officers, and key employees at Spectrum Health System. Labor market data reflecting comparable organizations and jobs (prepared by independent firms) are relied upon. Competitive assessment reports are provided to the Executive Committee in advance of meetings. The competitive assessment report is prepared by a nationally known independent executive compensation firm. For FY 2017 (7/1/16-6/30/17), four health care executive compensation surveys, three medical group surveys, two pediatric hospital surveys and one health plan survey prepared by independent firms were the primary sources referenced to obtain market data for the review: * American Medical Group Association: 2015 Medical Group Compensation & Financial Survey * Integrated Healthcare Strategies: 2015 Children's Hospitals Executive Compensation Survey * Integrated Healthcare Strategies: 2015 Health Care Executive Compensation Survey * Mercer Human Resources Consulting: 2015 Integrated Health Networks Compensation Survey * Medical Group Management Association: 2015 Management Compensation Survey * Sullivan, Cotter and Associates: 2015 Survey of Manager and Executive Compensation in Hospitals and Health Systems * Sullivan, Cotter and Associates: 2015 Custom Survey of Manager and Executive Compensation in Children's Hospitals * Sullivan, Cotter and Associates: 2015 Physician Compensation and Productivity Survey Report * Towers Watson: 2015 Hospital and Health Care Management Compensation Survey Report * Warren: Fall 2015 HMO Salary Survey In addition, one retirement community survey and four general industry surveys were referenced: * Rodeghero Consulting Group, Inc.: 2015 AAHA-CEMO Leadership Compensation Survey * Mercer: 2015 Executive Compensation Survey * Mercer: 2015 Information Technology Survey * Mercer: 2015 Human Resources Survey * Towers Watson: 2015 Top Management Compensation Report In addition to the above data sources, the Executive Committee approved the creation of a custom peer group of high performing integrated health systems to ensure robust data and a relevant comparator universe. The peer group organizations are approved by the Executive Committee and consist of double A bond rated and / or Truven top quintile organizations. Data for the peer group organizations is compiled by the independent executive compensation firm. Compensation adjustments are approved by Executive Committee members, consistent with the Spectrum Health compensation philosophy described below. Minutes of Committee discussions and decisions are prepared to memorialize Executive Committee decisions based upon the above data. Cash compensation data relied upon by the Executive Committee is national and reflects the compensation paid to executives in comparable jobs in comparably-sized health care and / or health insurance organizations. Spectrum Health recruits nationally for its executives. Benefits data reflect national health care / health insurance market practices. Geographic pay differential and cost of living data indicates consistency with national data. This process is intended to assist Spectrum Health in qualifying for the rebuttable presumption of reasonableness (Intermediate Sanctions Regulations) and complying with the potential Spectrum Health Excess Benefit Transaction Policy for those individuals in the group who are disqualified persons. The opinion submitted from the third party independent consulting firm is in accordance with the provisions of Treasury Regulations Section 53.4958-6(c)(2) and is also intended to satisfy the professional advice requirement of Treasury Regulations Section 53.4958-1(d)(4)(iii). Form 990, Part VI, Line 15b Process to establish compensation of other employees See explanation provided for Form 990, Part VI, Line 15a. Form 990, Part VI, Line 19 Required documents available to the public The organization's Articles of Incorporation have been provided to the State of Michigan and are available to the public on the State's website. The organization's Bylaws and internal policies are generally not made available to the public. The overall system consolidated financial statements are provided at www.spectrumhealth.org in the section titled "About Us". Form 990, Part VII, Section A Reported Compensation and Hours THE COMPENSATION REPORTED FOR EMPLOYEES OF THE ORGANIZATION IS NOT FOR SERVICES IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS BUT FOR SERVICES AS EMPLOYEES OF THE Health System. CERTAIN DIRECTORS WERE PAID REASONABLE COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE BOARD. CONSISTENT WITH PRIOR YEARS, COMPENSATION AND BENEFITS ARE REPORTED USING THE MOST RECENT CALENDAR YEAR COMPENSATION DATA. THE COMPENSATION FIGURES REPORTED IN THESE SECTIONS ARE FOR THE YEAR ENDED DECEMBER 31, 2016. EMPLOYEES WITH COMPENSATION REPORTED IN PART VII WORK A COMBINED AVERAGE OF 50 HOURS PER WEEK FOR THE Health System. Form 990, Part VII, Section A Compensation of Directors Based on external opinion by Sullivan Cotter and Associates, Inc., Spectrum Health System compensates board members in a manner that is reasonable in relation to market data. Board of directors compensation is continually reviewed to confirm compensation falls within reasonable limits. Any compensation amount is treated as taxable to the board member and is reported and provided to them on Form 1099. Form 990, Part VIII, Line 2f Other Program Service Revenue Other Program Service Revenue - Total Revenue: 472938, Related or Exempt Function Revenue: 472928, Unrelated Business Revenue: , Revenue Excluded from Tax Under Sections 512, 513, or 514: 10; Form 990, Part XI, Line 9 Other changes in net assets or fund balances VALUATION ALLOWANCE - -968372; MINIMUM PENSION LIABILITY - 30203552; FUNDS TRANSFER FROM SUPPORTED ORGANIZATIONS - 13701707; Schedule L, Part I, Line 1, Column (c) Transactions with Interested Persons The Organization, which is a Type III functionally integrated supporting organization, engaged in an excess benefit transaction ("EBT") under IRC Section 4958(c)(3) because it provided a loan to a disqualified person. Under IRC Section 4958(c)(3), an EBT occurs if a supporting organization, such as the Organization, provides a loan to a disqualified person. In general, a disqualified person is defined as any person who was, at any time during the 5year period ending on the date of such transaction, in a position to exercise substantial influence over the affairs of the organization, or was a family member of the disqualified person. In 2014, the Organization started its Executive Masters of Business Administration Program ("EMBA Program"), which was developed as a way to further the education of select executives at a local university. The program is structured to take two years to complete. Once accepted to the program, each participant signs an agreement and promissory note (the "Agreement") agreeing to meet specific requirements of performance and continued employment. Under the Agreement, the Organization pays the annual tuition amounts, which is to be repaid with interest by the employee. After graduation, the Agreement provides that the loan to the employee is forgiven over the following three years of his/her employment at the Organization. Such forgiveness of debt constitutes income to the employee (less the allowable annual qualified tuition reduction amount of $5,250/year) as it is forgiven. It has been determined that a disqualified person (in this case, the daughter of a retired Executive Vice President and Chief Financial Officer of the Organization (the "DQP")) participated in the EMBA Program, and thus had a loan arrangement with the Organization, creating an EBT through no fault of her own. Neither the Organization, nor the DQP, became aware that the Agreement resulted in an EBT until August 2017. The DQP was not aware that the Organization was prohibited from making loans to disqualified persons or that she was a disqualified person. She was simply participating in a program that was also offered to her colleagues, in which more than 60 of whom have participated with the same terms. Within thirty (30) days of discovery of the EBT, the Organization and the DQP took actions to correct the EBT. The loan was terminated pursuant to a written agreement and the Organization issued an amended 2016 Form W2 to the DQP in amount equal to the tuition paid in 2016 (less allowable deductions). The Organization also reviewed the list of other participants in the EMBA Program to ensure that no other disqualified person was in the program. Further, the Organization has set up a screening system to ensure the supporting organization no longer provides loans to disqualified persons. PHMB PROPERTIES LLC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 PROP. MGMT MI 3356461 24094079 PRIORITY HEALTH SPECTRUM HEALTH INNOVATIONS LLC 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 272868213 IP DEVELOP MI 58 270176 SPECTRUM HEALTH SYSTEM PRIORITY ADVANTAGE LLC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 822211831 INSURANCE CONSULTING MI 0 0 PRIORITY HEALTH MANAGED BENEFITS INC SPECTRUM HEALTH VENTURES LLC 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 815424150 INVESTMENT IN HEALTHCARE INNOVATION MI 0 1157501 SPECTRUM HEALTH SYSTEM SPECTRUM HEALTH HOSPITALS 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 381360529 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH PRIMARY CARE PARTNERS 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 381358164 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH FOUNDATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 382752328 PHILANTHROPY MI 501(c)(3) 7 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH CONTINUING CARE 750 FULLER AVE NE GRAND RAPIDS MI 49503 383242232 REHAB/CARE MI 501(c)(3) 10 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH CONTINUING CARE CENTER 750 FULLER AVE NE GRAND RAPIDS MI 49503 382415333 REHAB/NRS MI 501(c)(3) 10 SPECTRUM HEALTH CONTINUING CARE true SPECTRUM HEALTH KENT COMMUNITY CAMPUS 750 FULLER AVE NE GRAND RAPIDS MI 49503 383472677 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH CONTINUING CARE true SPECTRUM HEALTH WORTH SERVICES 750 FULLER AVE NE GRAND RAPIDS MI 49503 382786617 HEALTHCARE MI 501(c)(3) 10 SPECTRUM HEALTH CONTINUING CARE true VISITING NURSE SERVICES OF WESTERN MICHIGAN 750 FULLER AVE NE GRAND RAPIDS MI 49503 381359195 HEALTHCARE MI 501(c)(3) 10 SPECTRUM HEALTH CONTINUING CARE true PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 HMO MI 501(c)(4) SPECTRUM HEALTH SYSTEM true TRINITY HEALTH PLANS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382663747 HMO MGMT MI 501(c)(4) PRIORITY HEALTH true PRIORITY HEALTH CHOICE INC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 320016523 HMO (MEDICAID) MI 501(c)(3) 10 PRIORITY HEALTH true SPECTRUM HEALTH KELSEY 615 S BOWER GREENVILLE MI 48838 381297435 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH UNITED true REED CITY HOSPITAL CORPORATION 300 N PATTERSON RD REED CITY MI 49677 382770076 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION 212 S SULLIVAN AVENUE FREMONT MI 49412 381359517 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true KENT COMMUNITY HEALTH FOUNDATION 750 FULLER AVE NE GRAND RAPIDS MI 49503 383607110 PHILANTHROPY MI 501(c)(3) Type III-O SPECTRUM HEALTH KENT COMMUNITY CAMPUS true ZEELAND COMMUNITY HOSPITAL 8333 FELCH STREET ZEELAND MI 49464 381411184 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH UNITED 615 S BOWER GREENVILLE MI 48838 381358412 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true MEMORIAL MEDICAL CENTER OF WEST MICHIGAN ONE ATKINSON DRIVE LUDINGTON MI 49431 381359266 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true MECOSTA COUNTY MEDICAL CENTER 605 OAK STREET BIG RAPIDS MI 49307 381368744 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true PENNOCK HOSPITAL 1009 WEST GREEN STREET HASTINGS MI 49058 381360562 HEALTHCARE MI 501(c)(3) 3 SPECTRUM HEALTH SYSTEM true PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 THIRD PARTY ADMINISTRATOR MI SPECTRUM HEALTH SYSTEM C Corporation 241138721 27693250 1 true SPECTRUM HEALTH PHYSICIAN ALLIANCE 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 371655728 PHYSICIANS MI SPECTRUM HEALTH SYSTEM C Corporation 26 241983 1 true WEST MICHIGAN HEART 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 PHYSICIANS MI SPECTRUM HEALTH SYSTEM C Corporation 407947 5595831 1 true CAMPUS TOWN CENTRE CONDO ASSOCIATION 4868 LAKE MICHIGAN DRIVE ALLENDALE MI 49401 382910067 MGMT MI NA C Corporation true HELEN DEVOS WOMEN'S AND CHILDREN'S HEALTH PAVILION ASSOCIATION 330 BARCLAY NE GRAND RAPIDS MI 49503 383264184 MGMT MI NA C Corporation true LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION 145 MICHIGAN ST NE GRAND RAPIDS MI 49503 161734150 MGMT MI NA C Corporation true MUSCULOSKELETAL CENTER CONDOMINIUM ASSOCIATION 230 MICHIGAN NE GRAND RAPIDS MI 49503 383180086 MGMT MI NA C Corporation true PRIORITY HEALTH INSURANCE COMPANY 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 201529553 INSURANCE MI NA C Corporation true THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 830464302 MGMT MI NA C Corporation true THE MICHIGAN STREET PARKING CONDOMINIUM ASSOCATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 161734145 MGMT MI NA C Corporation true 25 MICHIGAN STREET CONDOMINIUM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 161734157 MGMT MI NA C Corporation true 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION 35 MICHIGAN ST NE GRAND RAPIDS MI 49503 272193084 MGMT MI NA C Corporation true PENNOCK VENTURES INC 1009 WEST GREEN STREET HASTINGS MI 49058 382712819 Healthcare MI NA C Corporation true PENNOCK PHARMACY 1009 WEST GREEN STREET HASTINGS MI 49058 382750680 HEALTHCARE MI NA C Corporation true MEMORIAL MEDICAL CENTER MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION 5 N ATKINSON DRIVE LUDINGTON MI 49431 813322057 MGMT MI Na C Corporation true MEMORIAL MEDICAL CENTER MOB II CONDOMINIUM ASSOCIATION 7 N ATKINSON DRIVE LUDINGTON MI 49431 813094794 MGMT MI Na C Corporation true true true true true false false false false false true false true true false true false true true true Priority Health A 810000 GAAP, CASH, OR FMV Spectrum Health Primary Care Partners A 110312 GAAP, CASH, OR FMV Spectrum Health Foundation C 113594 GAAP, CASH, OR FMV Spectrum Health Hospitals C 77929 GAAP, CASH, OR FMV Spectrum Health Hospitals L 275470515 GAAP, CASH, OR FMV Priority Health L 254392556 GAAP, CASH, OR FMV Spectrum Health Primary Care Partners L 73804486 GAAP, CASH, OR FMV Spectrum Health United L 11869718 GAAP, CASH, OR FMV Newaygo County General Hospital Association L 9529983 GAAP, CASH, OR FMV Spectrum Health Continuing Care L 8387004 GAAP, CASH, OR FMV Mecosta County Medical Center L 7785006 GAAP, CASH, OR FMV Zeeland Community Hospital L 6963009 GAAP, CASH, OR FMV Reed City Hospital Corporation L 6758031 GAAP, CASH, OR FMV Memorial Medical Center of West Michigan L 6542990 GAAP, CASH, OR FMV Pennock Hospital L 6232026 GAAP, CASH, OR FMV Spectrum Health Physician Alliance L 96965 GAAP, CASH, OR FMV Priority Health M 36859888 GAAP, CASH, OR FMV Spectrum Health Primary Care Partners M 2428177 GAAP, CASH, OR FMV Pennock Hospital M 270490 GAAP, CASH, OR FMV Schedule R, Part II, Column (g) SECTION 512(B)(13) CONTROLLED ENTITY THE ORGANIZATION IS THE COMMON PARENT ORGANIZATION OF A CONSOLIDATED HEALTH SYSTEM, SPECTRUM HEALTH SYSTEM. Schedule R, Part IV IDENTIFICATION OF RELATED ORGANIZATIONS 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION AND LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION ARE INCLUDED ON SCHEDULE R, PART IV AS THE VOTING POWER IS CONTROLLING UNDER THE CONSTRUCTIVE OWNERSHIP RULES OF UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. SCHEDULE R, PART IV, COLUMNS (F) SHARE OF TOTAL INCOME AND (G) SHARE OF END-OF-YEAR ASSETS ARE REPORTED BASED ON OWNERSHIP RATHER THAN VOTING POWER. SCHEDULE R, PART IV, COLUMN (H) IS REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER.