2017-11-15T22:51:09-06:00 2016-12-31 861065772 DELOITTE TAX LLP 200 RENAISSANCE CENTER STE 3900 DETROIT MI 482431895 990 2016-01-01 465718220 BEAUMONT HEALTH BEAU 2484232459 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 JOHN T FOX EXEC VP & CFO BEAUMONT HEALTH 2484232459 2017-11-15 1 SHAWNA M JIMENEZ P01222873 3133963000 12.203.115.26 2017-11-15 22:43:15 CS P 32F6BB63CD5850B7F00C37ACCA5C9B9279CDDB76 49244D1103501C1FC62C4DE15972AF245F6ACEFC 2016 2017-02-10 21:41:12Z JOHN T FOX 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 29645689 0 X WWW.BEAUMONT.ORG X 2014 MI TO PROVIDE OVERSIGHT AND LONG TERM STRATEGIC MANAGEMENT OF BEAUMONT HEALTH'S SUPPORTED ORGANIZATIONS, IN ORDER TO ENHANCE THEIR ABILITY TO CONTINUE 1) TO PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTHCARE SERVICES IN A CARING ENVIRONMENT, AND 2) TO BE AN ESSENTIAL CONTRIBUTOR TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES, REGARDLESS OF THEIR FINANCIAL CIRCUMSTANCES IN THE COMMUNITIES SERVED. 14 10 0 10 0 0 0 0 35015528 29645689 0 0 0 0 35015528 29645689 0 0 0 0 2902881 22108267 0 0 0 32112647 7537422 35015528 29645689 0 0 0 838060985 0 838060985 0 0 X TO PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTHCARE SERVICES IN A CARING ENVIRONMENT AND TO BE AN ESSENTIAL CONTRIBUTOR TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES, REGARDLESS OF THEIR FINANCIAL CIRCUMSTANCES, IN THE COMMUNITIES SERVED BY BEAUMONT HEALTH'S SUPPORTED ORGANIZATIONS. 0 0 29645689 29645689 BEAUMONT HEALTH, A MICHIGAN NON-PROFIT CORPORATION, IS THE PARENT CORPORATION OVERSEEING THE TAX-EXEMPT HEALTHCARE SYSTEMS OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC. AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). THROUGH ITS OVERSIGHT, BEAUMONT HEALTH AND ITS SUPPORTED ORGANIZATIONS PROVIDE HIGH QUALITY, EFFICIENT AND ACCESSIBLE HEALTH SERVICES IN A CARING ENVIRONMENT, FURNISH CHARITY CARE AND COMMUNITY SERVICE, AND ARE ESSENTIAL CONTRIBUTORS TO THE HEALTH AND WELL-BEING OF INDIVIDUALS AND FAMILIES IN THE COMMUNITIES SERVED BY THE SUPPORTED ORGANIZATIONS. BEAUMONT HEALTH MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE THROUGH PROVIDING LONG-RANGE AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES. 29645689 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 X 14 10 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 X DONNA ZUK 2484232459 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 BLAKE CHRISTOPHER DIRECTOR 2.00 8.00 X 0 0 0 COOPER GERSON VICE-CHAIR 2.00 10.00 X 0 0 0 HENOCH MD MALCOLM DIRECTOR 42.00 8.00 X 0 682438 53352 HOWARD STEPHEN VICE-CHAIR 2.00 8.00 X 0 0 0 LEWIS JOHN CHAIR 2.00 8.00 X 0 51326 0 MAINSTER DO HARRIS DIRECTOR 2.00 8.00 X 0 0 0 O'BRIEN TIMOTHY DIRECTOR 2.00 8.00 X 0 0 0 QUAY MARTHA DIRECTOR 2.00 8.00 X 0 0 0 SAELI THOMAS DIRECTOR 2.00 8.00 X 0 0 0 WEINER S EVAN DIRECTOR 2.00 8.00 X 0 0 0 WOOD MD DAVID DIRECTOR 48.00 2.00 X 0 1153841 21902 FOX JOHN PRESIDENT & CEO 42.00 8.00 X X 0 2747114 372257 FREAM JULIE SECRETARY 2.00 8.00 X X 0 0 0 NEMES JOHN TREASURER 2.00 8.00 X X 0 0 0 KERNDL JOHN EVP & CFO 42.00 8.00 X 0 35028 60 KEUTEN JOHN END 72016 EVP & CFO 2.00 48.00 X 0 991518 24659 CONWAY J PAUL CHIEF HUMAN RESOURCES OFFICER 46.00 4.00 X 0 572554 47624 FLANDERS MD SAMUEL EVP OF OPERATIONS / QUALITY 48.00 2.00 X 0 735512 33209 GRANT SUSAN EVP & CHIEF NURSING OFFICER 48.00 2.00 X 0 575659 106464 LACASSE DO PAUL CHAIR CLINICAL LEADERSHIP COUNCIL 48.00 2.00 X 0 767647 35568 SRIPADA SUBRA EVP & CHIEF TRANSFORMATION OFFICER 48.00 2.00 X 0 886104 115872 WILSON CAROLYN EVP & CHIEF OPERATING OFFICER 48.00 2.00 X 0 998404 174011 MICHALSKI GENE FORMER PRESIDENT & CEO 0.00 0.00 X 0 1426560 13158 CONNOLLY BRIAN FORMER PRES NET DEVELOPMENT 0.00 0.00 X 0 2509346 60688 0 14133051 1058824 0 1 1 0 0 PROG ADMIN SUPPORT SVC 561000 29645689 29645689 29645689 29645689 29645689 0 0 21204383 21204383 487438 487438 416446 416446 980000 980000 2306433 2306433 184053 184053 99805 99805 574007 574007 111474 111474 124785 124785 BANK SERVICE CHARGES 2043675 2043675 DUES AND SUBSCRIPTIONS 958405 958405 ALL OTHER, NET 154785 154785 29645689 29645689 0 0 0 838060985 0 838060985 838060985 0 838060985 X 0 0 0 838060985 0 0 X 0 1 X 1 0 X X 3 BOTSFORD GENERAL HOSPITAL 381426919 3 1 0 3043889 OAKWOOD HEALTHCARE INC 381405141 3 1 0 9031489 WILLIAM BEAUMONT HOSPITAL 381459362 3 1 0 17570311 3 0 29645689 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 SCHEDULE A, PART I, LINE 11G COLUMN (VI) BEAUMONT HEALTH IS ORGANIZED TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC. AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH PROVIDED EACH OF ITS SUPPORTED ORGANIZATIONS WITH ADMINISTRATIVE SUPPORT SERVICES FOR ALL OPERATIONAL ACTIVITIES SCHEDULE A, PART IV, SECTION D, LINE 3 BEAUMONT HEALTH IS THE PARENT AND SUPPORTING ORGANIZATION OF AN INTEGRATED HEALTH CARE SYSTEM CONSISTING OF BOTFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC., AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE INCLUDING PROVIDING LONG-TERM AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES THAT ALLOW THE SUPPORTED ORGANIZATIONS TO FUNCTION AS AN INTEGRATED HEALTH CARE DELIVERY SYSTEM. BEAUMONT HEALTH'S GOVERNING BODY IS COMPOSED OF AT LEAST ONE OR MORE MEMBERS OF THE GOVERNING BODIES OF EACH OF THE SUPPORTED ORGANIZATIONS. IN ADDITION, THERE IS AN OVERLAP OF OFFICERS BETWEEN ORGANIZATIONS TO HELP ENSURE THAT THERE IS A CLOSE AND CONTINUOUS WORKING RELATIONSHIP WITH EACH SUPPORTED ORGANIZATION. THE SUPPORTED ORGANIZATIONS HAVE A SIGNIFICANT VOICE IN BEAUMONT HEALTH'S OPERATIONS, INCLUDING THE USE OF ITS INCOME AND ASSETS. FOR EXAMPLE, BUDGETS ARE SUBMITTED BY THE SUPPORTED ORGANIZATIONS TO BEAUMONT HEALTH FOR APPROVAL. THIS SUBMISSION ALLOWS THE SUPPORTED ORGANIZATIONS TO ARTICULATE THEIR NEEDS (BUDGETING, CAPITAL ACQUISTIONS, OPERATING CASH FLOW NEEDS, ETC.). FOR CONSIDERATION OF FUNDING. IN ADDITION, THE SUPPORTED ORGANIZATIONS HAVE INPUT INTO ALL THE INVESTMENT POLICIES OF BEAUMONT HEALTH THROUGH EACH SUPPORTED ORGANIZATION'S PRESENCE ON THE GOVERNING BOARD OF BEAUMONT HEALTH. SCHEDULE A, PART IV, SECTION E, LINE 3A BEAUMONT HEALTH IS SOLELY RESPONSIBLE FOR THE DIRECT APPOINTMENT OR ELECTION OF THE OFFICERS, DIRECTORS AND TRUSTEES OF EACH OF THE SUPPORTED ORGANIZATIONS. SCHEDULE A, PART IV, SECTION E LINE 3B BEAUMONT HEALTH IS ORGANIZED TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT THE PURPOSES OF BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC. AND WILLIAM BEAUMONT HOSPITAL (THE "SUPPORTED ORGANIZATIONS"). BEAUMONT HEALTH FUNCTIONS AS AN INTEGRATED OPERATING COMPANY THAT MANAGES AND DIRECTS THE SUPPORTED ORGANIZATIONS' DELIVERY OF HEALTH CARE, INCLUDING PROVIDING LONG-RANGE AND STRATEGIC PLANNING, FINANCIAL CONTROL, AND PROGRAMS AND POLICIES THAT CAUSE THE SUPPORTED ORGANIZATIONS TO FUNCTION AS AN INTEGRATED HEALTH CARE DELIVERY SYSTEM. BEAUMONT HEALTH IS RESPONSIBLE FOR THE OVERALL COORDINATION AND SUPERVISION OF THE HEALTH SYSTEM'S SUPPORTED ORGANIZATIONS AND IS RESPONSIBLE FOR APPROVAL OF THE SUPPORTED ORGANIZATIONS' BUDGETS, STRATEGIC PLANNING, MARKETING, RESOURCE ALLOCATION, AND COMMUNITY BENEFIT ACTIVITIES. BEAUMONT HEALTH ALSO IS RESPONSIBLE FOR THE MANAGEMENT AND INVESTMENT OF THE ENDOWMENTS OF THE SUPPORTED ORGANIZATIONS. 0 DEBT RECEIVABLE FROM AFFILIATES 838060985 838060985 1 1 0 0 0 0 0 0 0 HENOCH MD MALCOLM DIRECTOR 0 459989 0 219227 0 3222 0 121596 0 21786 0 825820 0 146626 WOOD MD DAVID DIRECTOR 0 698530 0 431261 0 24050 0 13250 0 8652 0 1175743 0 0 FOX JOHN PRESIDENT & CEO 0 1681311 0 965357 0 100446 0 361399 0 10858 0 3119371 0 0 KEUTEN JOHN END 72016 EVP & CFO 0 337367 0 292358 0 361793 0 139400 0 12498 0 1143416 0 136120 CONWAY J PAUL CHIEF HUMAN RESOURCES OFFICER 0 374302 0 163506 0 34746 0 26108 0 21516 0 620178 0 108424 FLANDERS MD SAMUEL EVP OF OPERATIONS / QUALITY 0 536128 0 173746 0 25638 0 19875 0 13334 0 768721 0 0 GRANT SUSAN EVP & CHIEF NURSING OFFICER 0 537534 0 0 0 38125 0 100502 0 5962 0 682123 0 0 LACASSE DO PAUL CHAIR CLINICAL LEADERSHIP COUNCIL 0 507802 0 195139 0 64706 0 15900 0 19668 0 803215 0 0 SRIPADA SUBRA EVP & CHIEF TRANSFORMATION OFFICER 0 546289 0 318960 0 20855 0 104932 0 10940 0 1001976 0 0 WILSON CAROLYN EVP & CHIEF OPERATING OFFICER 0 906479 0 50000 0 41925 0 157904 0 16107 0 1172415 0 0 MICHALSKI GENE FORMER PRESIDENT & CEO 0 0 0 406379 0 1020181 0 0 0 13158 0 1439718 0 0 CONNOLLY BRIAN FORMER PRES NET DEVELOPMENT 0 0 0 1200464 0 1308882 0 43813 0 16785 0 2569944 0 443498 PART I, LINE 3 BOTSFORD GENERAL HOSPITAL, OAKWOOD HEALTHCARE, INC., AND WILLIAM BEAUMONT HOSPITAL, RELATED TAX-EXEMPT ORGANIZATIONS OF BEAUMONT HEALTH, USE THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL: - COMPENSATION COMMITTEE - INDEPENDENT CONSULTANTS - WRITTEN EMPLOYMENT CONTRACTS - COMPENSATION SURVEYS AND STUDIES - APPROVAL BY BOARD OR COMPENSATION COMMITTEE SCHEDULE J, PART I, LINE 4A FOR SOME INDIVIDUALS, THE EMPLOYMENT AGREEMENT MAY PROVIDE IF THE EMPLOYER TERMINATES THE AGREEMENT AND THE PARTIES SEPARATE OTHER THAN FOR CAUSE, THE EMPLOYEE MAY BE ENTITLED TO SEVERANCE PAY. THE TERMS AND CONDITIONS TO RECEIVE SEVERANCE PAYMENTS REQUIRE THE EMPLOYEE TO SIGN A RELEASE OF CLAIMS FORM THAT COVERS ALL SITUATIONS SURROUNDING THE EMPLOYEE'S EMPLOYMENT AND SEPARATION FROM THE COMPANY. SEVERANCE PAYMENTS MADE BY BEAUMONT HEALTH DURING 2016 INCLUDE PAYMENTS TO THE FOLLOWING INDIVIDUAL: JOHN KEUTEN, SEVERANCE PAYMENT, $249,938 BRIAN CONNOLLY, SEVERANCE PAYMENT, $751,934 SCHEDULE J, PART I, LINE 4B BEAUMONT HEALTH HAS NO EMPLOYEES. ITS SUPPORTED ORGANIZATIONS PROVIDE CERTAIN SUPPLEMENTAL RETIREMENT BENEFITS TO CERTAIN OFFICERS, KEY EMPLOYEES AND PHYSICIANS. THESE BENEFITS ARE PROVIDED THROUGH A NON QUALIFIED DEFERRED COMPENSATION PLAN, UNDER WHICH THE BENEFITS BEING EARNED ARE SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE. TO BECOME ENTITLED TO THE BENEFITS BEING PROVIDED, EACH COVERED EMPLOYEE MUST MEET SPECIFIED REQUIREMENTS RELATING TO FURTHER EMPLOYMENT. UNTIL THOSE REQUIREMENTS ARE SATISFIED, THE EMPLOYEE IS NOT ENTITLED TO THESE AMOUNTS. IF THE EMPLOYEE WERE TO HAVE TERMINATED EMPLOYMENT VOLUNTARILY IN THE YEAR TO WHICH THIS RETURN APPLIES, THOSE SUPPLEMENTAL RETIREMENT BENEFITS WOULD NOT HAVE BEEN PAID OUT. IT SHOULD BE NOTED THAT THESE SUPPLEMENTAL RETIREMENT BENEFITS ARE PART OF A RETIREMENT PROGRAM THAT PROVIDES RETIREMENT INCOME FOR ALL YEARS OF SERVICE THAT THE EMPLOYEE PROVIDES TO THE ORGANIZATION. ANY RETIREMENT BENEFITS SHOULD BE VIEWED AS APPLYING TO THE ENTIRE LENGTH OF THE EMPLOYEE'S SERVICE TO THE ORGANIZATION. JOHN KEUTEN, NON-QUALIFIED PLAN DISTRIBUTION, SERP 457(F)$86,262 BRIAN CONNOLLY, NON-QUALIFIED PLAN DISTRIBUTION, SERP 457(F)$498,676 A MICHIGAN FINANCE AUTHORITY 800596186 59447P6N6 2015-01-28 469258819 SEE PART VI 0 0 0 B MICHIGAN FINANCE AUTHORITY 800596186 59447THE3 2016-02-04 323514381 SEE PART VI 0 0 0 C MICHIGAN FINANCE AUTHORITY 800596186 000000000 2016-12-08 65000000 SEE PART VI 0 0 0 A 469258819 4104287 465154532 2015 0 0 1 1 B 324866726 2521713 101456424 220888589 0 0 0 1 C 65000000 36646 64963354 2016 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 A 0 1 0 0 0 0 0 0 0 B 0 1 0 0 0 0 0 0 0 C 0 1 0 0 1 0 0 0 0 A 0 B 0 C 0 PART I, COLUMN 9 (F) DESCRIPTION OF PURPOSE SCHEDULE K, PART I, COLUMN (F) DESCRIPTION OF PURPOSE BOND A - BEAUMONT HEALTH SERIES 2015A TO ACQUIRE ASSETS OF WILLIAM BEAUMONT HOSPITAL, BOTSFORD GENERAL HOSPITAL, AND OAKWOOD HEALTHCARE, INC. BOND B - BEAUMONT HEALTH SERIES 2016A THE PROCEEDS OF THE BOND CONSISTS OF THE FINANCING OR REFINANCING OF THE COSTS OF ACQUIRING, CONSTRUCTING AND RENOVATING CERTAIN HOSPITAL AND HEALTH FACILITIES INCLUDING, AMONG OTHER PROJECTS: EMERGENCY CENTER EXPANSION AT BEAUMONT - ROYAL OAK, THE MASTER FACILITY EXPANSION AND RENOVATION PLAN AT BEAUMONT - FARMINGTON HILLS AND THE RENOVATION OF THE 1ST FLOOR OPERATING ROOM AT BEAUMONT - TROY. BOND C - BEAUMONT HEALTH SERIES 2016B - TO REFUND BONDS ISSUED 12/19/2012. FORM 990, PART VI, SECTION A, LINE 2 PAUL LACASSE AND GERSON COOPER HAVE A BUSINESS RELATIONSHIP AS THEY ARE BOARD MEMBERS OR SHARED OFFICERS OF A TAXABLE ENTITY WITHIN THE BEAUMONT HEALTH SYSTEM. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 WAS SUBJECTED TO A MULTI-STEP REVIEW PROCESS PRIOR TO FILING WITH THE GOVERNMENT BY THE STATUTORY DUE DATE. FORM 990 IS PREPARED BY BEAUMONT HEALTH TREASURY ADMINISTRATION, REVIEWED BY THAT DEPARTMENT'S MANAGEMENT, AND SUBSEQUENTLY REVIEWED BY THE FILING ENTITY'S PAID PREPARER. AS THE FINAL STEP IN THIS REVIEW PROCESS, A COPY OF THE FINAL FILING VERSION OF FORM 990 IS PROVIDED TO EACH VOTING MEMBER OF THE FILING ENTITY'S GOVERNING BODY FOR THEIR REVIEW PRIOR TO THE FORM BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C BEAUMONT HEALTH RECOGNIZES THAT IT HAS AN OBLIGATION TO ITS PATIENTS, ITS PAYORS, ITS DESIGNEES AND THE COMMUNITIES IT SERVES TO OBSERVE THE HIGHEST LEVEL OF INTEGRITY TO ENSURE CLINICAL, BUSINESS AND ACADEMIC DECISION MAKING IS NOT COMPROMISED BY FINANCIAL OR OTHER RELATIONSHIPS WITH INDUSTRY. THE CORPORATE COMPLIANCE OFFICE, WITH THE ASSISTANCE OF HUMAN RESOURCES AND SPECIFIC INDIVIDUAL DEPARTMENTS WILL COORDINATE UPON HIRE AND EACH CALENDAR YEAR THEREAFTER, A PROCESS OF OBTAINING CONFLICT OF INTEREST/DISCLOSURE OF REMUNERATION STATEMENTS. ALL AREAS OF INSTITUTION WILL FOLLOW THE HUMAN RESOURCES HIRING PROCESS PROTOCOL TO ASSURE COMPLIANCE WITH THE CONFLICT OF INTEREST PROGRAM. AT ANY TIME WHEN A DESIGNEE BECOMES INVOLVED IN A RELATIONSHIP THAT IS OR MAY BE PERCEIVED TO BE A CONFLICT OF INTEREST, THE DESIGNEE MUST COMPLETE THE CONFLICT OF INTEREST/DISCLOSURE OF REMUNERATION STATEMENT AND FORWARD TO THE CORPORATE COMPLIANCE OFFICER. A CONFLICT OF INTEREST OR NEED TO DISCLOSE REMUNERATION MAY EXIST IF A BEAUMONT DESIGNEE OR ANY MEMBER OF THEIR IMMEDIATE FAMILY RECEIVES COMPENSATION IN ANY FORM FOR SERVICES RENDERED IN ANY CAPACITY TO ANY ORGANIZATION OR INDIVIDUAL THAT HAS ANY PAST, PRESENT OR PROSPECTIVE BUSINESS DEALINGS WITH BEAUMONT, IF SUCH COMPENSATION MIGHT BE REASONABLY CONSTRUED AS TENDING TO PREVENT THE DESIGNEE FROM ACTING SOLELY AND WHOLLY IN THE BEST INTEREST OF BEAUMONT HEALTH. FORM 990, PART VI, SECTION B, LINE 15 BEAUMONT HEALTH'S BOARD OF DIRECTORS HAS DULY APPOINTED AN ORGANIZATION AND COMPENSATION COMMITTEE (THE "COMMITTEE"), WHICH IS RESPONSIBLE FOR THE REVIEW AND APPROVAL OF COMPENSATION AND BENEFITS PROVIDED TO BEAUMONT AND ITS AFFILIATED MEMBERS' EXECUTIVE MANAGEMENT TEAMS. THE COMMITTEE HAS ADOPTED A WRITTEN EXECUTIVE COMPENSATION PHILOSOPHY STATEMENT GOVERNING THE WORK AND REVIEW PROCESS OF THE COMMITTEE. THE COMMITTEE FOLLOWS THE PROCEDURES DESCRIBED IN THE PHILOSOPHY STATEMENT WHEN IT REVIEWS AND APPROVES THE COMPENSATION AND EMPLOYEE BENEFITS PROVIDED TO SENIOR MANAGEMENT, INCLUDING THE CHIEF EXECUTIVE OFFICER AND OTHER OFFICERS. THE COMMITTEE REVIEWS ALL ASPECTS OF COMPENSATION, INCLUDING CURRENT AND DEFERRED COMPENSATION, AND BENEFITS, INCLUDING QUALIFIED AND NON-QUALIFIED BENEFITS. THE COMMITTEE MEETS FOUR TIMES A YEAR, AND APPROVES COMPENSATION AND BENEFITS ONLY TO THE EXTENT THAT THE COMMITTEE HAS CONCLUDED THAT THE COMPENSATION AND BENEFITS CONSTITUTE NO MORE THAN REASONABLE COMPENSATION FOR EACH EXECUTIVE. THE COMMITTEE CONSISTS OF SIX MEMBERS, ALL OF WHOM ARE DISINTERESTED MEMBERS OF THE BOARD OF DIRECTORS. THE COMMITTEE WORKS WITH AN INDEPENDENT COMPENSATION CONSULTANT TO PREPARE AND REVIEW IN ADVANCE COMPREHENSIVE DATA SHOWING THE COMPENSATION PROVIDED BY SIMILARLY SITUATED ORGANIZATIONS FOR FUNCTIONALLY SIMILAR POSITIONS. THE COMMITTEE ALSO PREPARES A TIMELY AND THOROUGH WRITTEN RECORD OF ITS DELIBERATIONS AND CONCLUSIONS. AS A RESULT, THE COMMITTEE'S REVIEW PROCESS IS DESIGNED TO SATISFY THE PROCEDURAL CRITERIA NECESSARY TO QUALIFY FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS UNDER THE FEDERAL INCOME TAX LAW INTERMEDIATE SANCTIONS RULES. THE COMMITTEE HAS EXPRESSLY DETERMINED THAT THE TOTAL COMPENSATION PROVIDED IS REASONABLE, BASED ON THE REVIEW OF THE MARKET DATA PRESENTED BY THE INDEPENDENT COMPENSATION CONSULTANT AND ON THE REVIEW OF ALL OTHER RELEVANT FACTS AND CIRCUMSTANCES. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION WILL PROVIDE THE LISTED DOCUMENTS TO THE PUBLIC UPON REQUEST. BEAUMONT MEDICAL TRANSPORTATION SERVICE 950 W MAPLE SUITE C TROY MI 48084 260203703 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 10 WILLIAM BEAUMONT HOSPITAL 1 BOTSFORD CONTINUING CARE CORPORATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 382549505 LONG TERM NURSING CARE MI 501(C)(3) 10 BOTSFORD GENERAL HOSPITAL 1 BOTSFORD GENERAL HOSPITAL 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 381426919 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 COMMUNITY EMERGENCY MEDICAL SERVICE INC 25400 W EIGHT MILE ROAD SOUTHFIELD MI 48033 382410823 EMERGENCY MEDICAL SERVICES MI 501(C)(3) 10 BOTSFORD GENERAL HOSPITAL 1 HEALTHLINK MEDICAL TRANSPORTATION SERVICES INC 26150 NORTHLINE ROAD TAYLOR MI 48180 383338298 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 10 COMMUNITY EMERGENCY MEDICAL SERVICE INC 1 MICHIGAN MOBILE PET IMAGING 15500 LUNDY PARKWAY DEARBORN MI 48126 331086165 MOBILE PET SCANNING MI 501(C)(3) 12A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTHCARE INC 15500 LUNDY PARKWAY DEARBORN MI 48126 381405141 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 OAKWOOD UNITED HOSPITALS INC 15500 LUNDY PARKWAY DEARBORN MI 48126 382837961 FACILITY LEASING MI 501(C)(3) 12A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HOME CARE SERVICES 1633 FAIRLANE CIRCLE NO 100 ALLEN PARK MI 48101 382877338 HOME HEALTH SERVICES MI 501(C)(3) 10 OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTH PROMOTIONS INC 16351 ROTUNDA DRIVE DEARBORN MI 48120 382601965 ASSISTED AND RESIDENT CARE FACILITIES MI 501(C)(3) 10 OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTHCARE FOUNDATION 15500 LUNDY PARKWAY DEARBORN MI 48126 383432073 FOUNDATION MI 501(C)(3) 12A, I OAKWOOD HEALTHCARE INC 1 WILLIAM BEAUMONT HOSPITAL 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 381459362 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 BEAUMONT HEALTH FOUNDATION 3711 W THIRTEEN MILE ROYAL OAK MI 48073 364852171 FOUNDATION MI 501(C)(3) 12A, I BEAUMONT HEALTH 1 BEAUMONT KIDNEY SPECIALTY SERVICES LLC 26400 WEST TWELVE MILE ROAD SOUTHFIELD MI 48034 262200439 DIALYSIS SERVICES MI N/A BOTSFORD CARE PARTNERS LLC 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 454854213 HEALTHCARE SERVICES MI N/A DEARBORN SCHAEFFER OFFICE COMPANY LLC ONE TOWNE SQUARE SUITE 1600 SOUTHFIELD MI 48076 262448025 REAL ESTATE MI N/A OAKMED LLC 1938 WOODSLEE DRIVE TROY MI 48083 461459737 PRIVATE DUTY NURSING MI N/A BEAUMONT HEALTH POOLED INVESTMENT PARTNERSHIP 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 611775558 INVESTMENT MANAGEMENT MI N/A BEAUMONT INDEMNITY COMPANY LTD 23 LIME TREE BAY AVENUE GRAND CAYMAN GRAND CAYMAN CJ 980512415 PREMIUM DEPOSITS CJ N/A C 1 BEAUMONT NURSING HOME SERVICES INC 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 382799842 ASSISTED CARE LIVING MI N/A C 1 BEAUMONT PHYSICIANS INSURANCE COMPANY INC 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 274261262 PROFESSIONAL INSURANCE MI N/A C 1 BOTSFORD COMMONS PROPERTY ASSOCIATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 383203663 PROPERTY MANAGEMENT MI N/A C 1 OAKWOOD AFFILIATED VENTURES INC AND SUBSIDIARIES 15500 LUNDY PARKWAY DEARBORN MI 48126 371753159 OFFICE OF PHYSICIANS/NON-RESIDENTIAL RENTAL MI N/A C 1 OAKWOOD ASSURANCE COMPANY LTD BARCLAYS HOUSE 3RD FLOOR SHEDDEN GEORGETOWN GRAND CAYMAN CJ 980128325 REINSURANCE CJ N/A C 1 PARASTAR EMERGENCY SYSTEMS INC 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 382755982 MANAGEMENT AND DISPATCH SERVICES MI N/A C 1 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 WILLIAM BEAUMONT HOSPITAL Q 17570311 FMV OAKWOOD HEALTHCARE INC Q 9031489 FMV BOTSFORD GENERAL HOSPITAL Q 3043889 FMV OAKWOOD HEALTH PROMOTIONS E 24252446 FMV BOTSFORD CONTINUING CARE CORPORATION D 9560490 FMV