2017-11-09T13:25:15-06:00 2016-12-31 ERNST & YOUNG US LLP 2 N CENTRAL AVENUE STE 2300 PHOENIX AZ 85004 990 2016-01-01 942545356 Banner Health Foundation % PAUL NOLDE-MORRISSEY BANN 6027474483 2901 N CENTRAL AVE Suite 160 PHOENIX AZ 85012 ANDREA J PETERSEN PRESIDENT & CEO 6027474483 2017-11-08 true MICHAEL PAYNE P01442310 6023223000 68.228.206.89 86597020173135000002 2017-11-09 P 75C5EDAB7EBB92AAB100D8D7E73F8E6643DC4F33 75C5EDAB7EBB92AAB100D8D7E73F8E6643DC4F33 2016 2021-01-29 14:40:06Z ANDREA J PETERSEN 2901 N CENTRAL AVE160 PHOENIX AZ 85012 14696120 false X WWW.BANNERHEALTH.COM X 1978 AZ BANNER HEALTH FOUNDATION SECURES AND STEWARDS CHARITABLE CONTRIBUTIONS TO ADVANCE BANNER HEALTH'S MISSION TO MAKE HEALTH CARE EASIER, SO LIFE CAN BE BETTER. 18 17 29 120 0 10019835 10678459 0 0 4043544 3166560 -182354 -22810 13881025 13822209 7556127 13009397 0 0 2741342 2607306 459857 197789 281166 891254 1101294 11648580 16915786 2232445 -3093577 112509286 115144422 5252223 5310000 107257063 109834422 BANNER HEALTH FOUNDATION SECURES AND STEWARDS CHARITABLE CONTRIBUTIONS TO ADVANCE BANNER HEALTH'S MISSION TO MAKE HEALTH CARE EASIER, SO LIFE CAN BE BETTER. false false 15031016 13009397 0 THE BANNER HEALTH FOUNDATION FOSTERS A SPIRIT OF GIVING BY MAKING HEALTHCARE SOLUTIONS A REALITY FOR OUR COMMUNITY. CONTRIBUTIONS MADE TO THE FOUNDATION ARE INVESTED LOCALLY IN BANNER HEALTH'S NOT-FOR-PROFIT FACILITIES AND PROGRAMS TO ADVANCE HEALTH AND WELLNESS. CARING FOR THE FUTURE OF ARIZONA SINCE 1978, BANNER HEALTH FOUNDATION IS SUPPORTED BY THE GENEROSITY OF INDIVIDUAL DONORS, THE PUBLIC AND PRIVATE SECTORS, AND HUNDREDS OF ACTIVE VOLUNTEERS. 15031016 true true false false false true false false false true true false false false true false false true false false false false false true true false false true true true false false false false false false false false true true false false false true true true false false true 35 0 true 29 true false false false false false true true false false false true false false false false X 18 17 true false false false true true true true true false false false true true true true true false false false AZ X PAUL NOLDE-MORRISSEY 6027474000 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 850122702 David Berry DIRECTOR/CHAIRMAN 6.0 0.0 X X 0 0 0 John Graham DIRECTOR/VICE CHAIRMAN 6.0 0.0 X X 0 0 0 William Pepicello PHD Director (THRU 2/1/16) 4.0 0.0 X 0 0 0 Linda Perlich Director 4.0 0.0 X 0 0 0 Nancy Davis Director 4.0 0.0 X 0 0 0 Garrett McKnight Director 4.0 0.0 X 0 0 0 Susan Anable Director 4.0 0.0 X 0 0 0 Ken Van Winkle Director 4.0 0.0 X 0 0 0 Chip Cramer Director 4.0 0.0 X 0 0 0 Steven Moak Director 4.0 0.0 X 0 0 0 Morris Stein Director 4.0 0.0 X 0 0 0 John Strittmatter Director 4.0 0.0 X 0 0 0 JEFFREY WHITEMAN Director (THRU 1/31/16) 4.0 0.0 X 0 0 0 Keith Galbut Director 4.0 0.0 X 0 0 0 Kathleen Desmond Director (AS OF 5/1/16) 4.0 0.0 X 0 0 0 Larry Lytle Director (AS OF 6/1/16) 4.0 0.0 X 0 0 0 Steven Ortega Director (AS OF 6/7/16) 4.0 0.0 X 0 0 0 Sharon Harper Director 4.0 0.0 X 0 0 0 Jeffrey C Stone DIRECTOR/SECRETARY/TREASURER 4.0 0.0 X X 0 0 0 Andrea J Petersen DIRECTOR/President/CEO 36.0 5.0 X X 560774 0 58187 Hazel Richards VP Development 4.0 36.0 X 236849 0 22750 Cary Blanchette VP Development 40.0 0.0 X 146831 0 5757 Christy Alter Fund Development Program Dir. 40.0 0.0 X 128476 0 18529 Patricia Elder Fund Development Program Mgr. 40.0 0.0 X 124074 0 20934 LGG von Schottenstein Fund Development Program Mgr. 40.0 0.0 X 114725 0 23653 Barbara Grant Public Relations Director 40.0 0.0 X 105217 0 4714 1416946 0 154524 7 false true false THE PURSUANT GROUP INC 515 BELT LINE ROAD SUITE 900 DALLAS TX 75254 GIVING PROGRAM 197789 PHOENICIAN RESORT 6000 E CAMELBACK ROAD SCOTTSDALE AZ 85251 BANQUET SERVICES 160844 GRAYHAWK GOLF CLUB LLC 8620 E THOMPSON PEAK PKWY SCOTTSDALE AZ 85255 BANQUET SERVICES 141790 BLACKBAUD PO BOX 930256 ATLANTA GA 31193 SOFTWARE SERVICES 121232 WESTIN KIERLAND RESORT AND SPA 6902 E GREENWAY PARKWAY SCOTTSDALE AZ 85254 BANQUET SERVICES 120407 5 604497 543131 9530831 1024738 10678459 0 1184103 1184103 0 0 0 0 0 1982457 1982457 1982457 1982457 851101 604497 873911 -22810 -22810 0 0 0 0 0 0 0 13822209 3143750 12712616 12712616 296781 296781 0 0 878560 878560 0 1289174 855627 433547 123522 98818 24704 165766 132613 33153 150284 120227 30057 0 0 42216 33773 8443 0 197789 197789 0 40687 32549 8138 8667 6934 1733 59332 47467 11865 0 0 3010 2408 602 19949 15478 3870 601 0 1451 1161 290 179288 143430 35858 0 173 138 35 0 REPAIRS AND MAINTENANCE 137651 110121 27530 RECRUITMENT 68358 54686 13672 SPECIAL EVENT EXPENSES 64604 64604 LICENSES & TAXES 23884 19107 4777 452024 347082 86770 18172 16915786 15031016 1603604 281166 522469 267169 650109 431228 21640561 23567194 0 0 0 0 0 0 0 0 2600 79054 0 0 735914 735323 764 591 89294382 90741655 0 0 0 0 0 0 398401 57531 112509286 115144422 289796 350933 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4962427 4959067 5252223 5310000 X 31407598 29262049 71349991 76072899 4499474 4499474 107257063 109834422 112509286 115144422 X -3093577 2173839 3497097 X false true X true false X 11043325 8270047 8994001 10019835 10678459 49005667 0 0 11043325 8270047 8994001 10019835 10678459 49005667 5725071 43280596 1564758 1098638 1082998 1140356 1184103 6070853 0 0 0 0 1729 1412 1402 1079 0 5622 55082142 954757 0.78575 0.76224 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2 57150 102000 121548 true true 9630530 13810 1448568 141460 10951448 8418587 1084546 263679 136282 9630530 8435729 4600 117446 139188 8418587 7838601 2005430 968974 2377276 8435729 7091124 33167 860804 146494 7838601 0.15090 0.59450 0.25460 false false 85592 85592 650322 649731 591 591 0 DUE TO AFFILIATES 3594973 ANNUITIES PAYABLE 975562 DONOR ADVISED FUNDS 8258 OTHER LIABILITIES 71163 DUE TO BANNER HEALTH 309111 4959067 SCHEDULE D, PART V BANNER HEALTH FOUNDATION'S ENDOWMENT FUND CONSISTS OF 21 SEPARATE FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES INCLUDING EDUCATION, BEHAVIORAL HEALTH, NURSING SCHOLARSHIPS, SCHOOL-BASED CLINIC OPERATIONS, AND OTHER HEALTHCARE-RELATED ACTIVITIES TO BENEFIT THE COMMUNITY. 20 OF THESE ARE UNRESTRICTED, AND ONE IS BOARD-RESTRICTED. IN 2015, 11 OF THESE 21 FUNDS WERE ACQUIRED IN THE MERGER WITH THE UNIVERSITY MEDICAL CENTER FOUNDATION. THESE ENDOWMENT FUNDS ARE USED FOR PROGRAM SUPPORT OF VARIOUS DEPARTMENTS AT THE BANNER-UNIVERSITY MEDICAL CENTER-SOUTH CAMPUS AND THE BANNER-UNIVERSITY MEDICAL CENTER-TUCSON CAMPUS. IN ADDITION TO THESE 21 FUNDS, ONE ADDITIONAL ENDOWMENT FUND IS HELD BY BANNER ALZHEIMER'S FOUNDATION, A RELATED ENTITY, AND IS USED FOR THE FAMILY AND COMMUNITY SERVICES PROGRAM AT BANNER ALZHEIMER'S INSTITUTE. ACCORDINGLY, BAF'S PORTION OF THE TOTAL ENDOWMENT FUNDS IS SHOWN ON BAF'S FORM 990, SCHEDULE D. X X X X X true THE PURSUANT GROUP INC 515 BELT LINE ROAD SUITE 900 DALLAS TX 75254 CONSULTING GIVING PRG false 236091 -236091 236091 -236091 AZ pulse of soiree 492540 208757 283783 45833 26505 97622 101800 81756 Golf Tournament 378088 205700 172388 6728 90425 52478 300 51935 1 584970 190040 394930 81000 6520 111624 72861 46524 1455598 604497 851101 133561 123450 261724 174961 180215 873911 -22810 FORM 990, SCHEDULE G, PART I, LINE 2B BANNER HEALTH FOUNDATION RETAINED THE PROFESSIONAL SERVICES OF THE PURSUANT GROUP INC. TO PROVIDE CONSULTING SERVICES IN REGARDS TO ITS GIVING PROGRAM. $197,789 OF CONSULTING FEES EXPENSE WAS ACCRUED IN 2016 AND $236,091 WAS PAID IN 2016. true BANNER HEALTH 2901 N CENTRAL AVE PHOENIX AZ 85012 450233470 501(c)(3) 11499794 GENERAL SUPPORT BANNER MEDICAL GROUP 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 85012 900532830 501(c)(3) 841880 GENERAL SUPPORT SUN HEALTH FOUNDATION 13203 N 103RD AVENUE SUN CITY AZ 85351 860483792 501(c)(3) 165928 GENERAL SUPPORT THE UNIVERSITY OF ARIZONA FOUNDATION 1111 NORTH CHERRY AVENUE TUCSON AZ 85721 866050388 501(c)(3) 150000 GENERAL SUPPORT BANNER UNIVERSITY MEDICAL GROUP 2901 N CENTRAL AVENUE PHOENIX AZ 85012 942958258 501(c)(3) 23236 GENERAL SUPPORT UNITY FOR LIFE - TUCSON 14716 E WAVERLY STREET TUCSON AZ 85712 272556779 501(C)(3) 20578 GENERAL SUPPORT FRIENDS OF RIM COUNTRY GCC INC 201 N MUD SPRINGS ROAD PAYSON AZ 85541 455147571 501(C)(3) 10000 GENERAL SUPPORT 7 SCHOLARSHIPS 111 164000 BH EMPLOYEE ASSISTANCE PROGRAM 276 132781 FORM 990, SCHEDULE I, PART I, LINE 2 GRANTS ARE AWARDED BY A COMMITTEE WHICH REVIEWS APPLICATIONS AND MAKES AWARDS BASED ON MERIT AND AVAILABILITY OF FUNDS. FUNDS WHICH ARE RESTRICTED ARE AWARDED TO PROJECTS MEETING THE REQUIREMENTS OF THE SPECIFIC REQUEST. ALL FUNDS ARE UTILIZED FOR PROJECTS WHICH ARE MEDICAL IN NATURE. USE OF FUNDS IS MONITORED VIA THE GOVERNANCE PRACTICES OF THE RECIPIENT ORGANIZATIONS. false true false false false false false true false Andrea J Petersen DIRECTOR/President/CEO 345774 0 195246 0 19754 0 31030 0 27157 0 618961 0 0 0 Hazel Richards VP Development 179269 0 45157 0 12423 0 7357 0 15393 0 259599 0 0 0 Cary Blanchette VP Development 79334 0 0 0 67497 0 0 0 5757 0 152588 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 3 THE COMPENSATION OF THE ORGANIZATION'S CEO IS DETERMINED BY A RELATED TAX-EXEMPT ORGANIZATION. SEE SCHEDULE O FOR FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY THE RELATED ORGANIZATION TO DETERMINE COMPENSATION. FORM 990, SCHEDULE J, PART I, LINE 4b EXEC 457(F) - COVERED EXECUTIVES COMPENSATED BY BANNER HEALTH. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE) - EARLIER OF AGE 62, 5 YEARS FROM DATE OF DEPOSIT, OR RULE OF 80. TAXATION OCCURS UPON DISTRIBUTION (IF VESTED). THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COL B(III). DEPOSIT AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COL (C). NAME 457(F) PAYOUT EMPLOYER 457(F) DEPOSIT ANDREA J PETERSON $0 $20,430 FORM 990, SCHEDULE J, PART I, LINE 7 BANNER HEALTH FOUNDATION'S INCENTIVE PLAN IS BASED ON TWO THINGS. FIRST, BANNER HEALTH (A RELATED TAX-EXEMPT ORGANIZATION) AS A WHOLE MUST ACHIEVE ITS NET OPERATING INCOME THRESHOLD. SECOND, THE FOUNDATION MUST ACHIEVE ITS PRODUCTION REVENUE GOAL AND MUST ACHIEVE A TARGETED OPERATION NET GOAL. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 24% TO 80% OF BASE SALARY. INCENTIVE PLAN PAYMENTS ARE REPORTED ON SCHEDULE J, PART II, COL B(II). SCHEDULE J, PART II 1) BONUS LIFE INSURANCE AS PART OF BANNER HEALTH'S EXECUTIVE SELECT BENEFIT PROGRAM (ESB) CERTAIN INDIVIDUALS PARTICIPATED IN THE BONUS LIFE INSURANCE PROGRAM (BLIP). ELIGIBLE EMPLOYEES COULD ELECT TO USE PART OF THEIR ESB ALLOWANCE TO PURCHASE BLIP THROUGH NORTHWESTERN MUTUAL. THE PARTICIPATING EMPLOYEE OWNS THE POLICY AND CAN ACCESS ITS CASH VALUE. THE ENTIRE AMOUNT PURCHASED IS REPORTED AS TAXABLE COMPENSATION IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL: none 2) CASHOUT OF PAID TIME OFF In 2015, Banner eliminated the accrual of paid time off for all senior leaders. As a result, one-time CASHOUTS OF EARNED AND UNUSED PAID TIME OFF were paid. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS: Christy Alter $ 2,151 Barbara Grant $ 3,907 3) TAXABLE RELOCATION CARY BLANCHETTE RECEIVED A ONE-TIME PAYMENT FOR RELOCATION EXPENSES, WHICH INCLUDED A GROSS-UP. THIS AMOUNT IS INCLUDED IN THE INDIVIDUAL'S COMPENSATION AND IS INCLUDED IN SCHEDULE J, PART II, COL B(III). THE AMOUNT OF THE PAYMENT IS LISTED BELOW. CARY BLANCHETTE - $67,068 X 1 6500 FMV X 151220 FMV X 2 293969 FMV X AIRLINE TRAVEL 2 32000 FMV X USE OF FACILITIES 2 109653 FMV X CONSTRUCTION SERVICE 11 176539 FMV X MEDIA SERVICES 8 254857 FMV 0 false true false SCHEDULE M, PART I, COLUMN (B) COLUMN (B) REPRESENTS THE NUMBER OF CONTRIBUTIONS RECEIVED. FORM 990, PART I, LINE 6 APPROXIMATELY 120 DEDICATED VOLUNTEERS HELP ADVANCE THE WORK OF BANNER HEALTH FOUNDATION EACH YEAR. THESE INDIVIDUALS EMBODY OUR BELIEF THAT THE HEALTH AND WELL-BEING OF OUR COMMUNITY IS A SHARED RESPONSIBILITY. BANNER HEALTH FOUNDATION VOLUNTEERS INCLUDE PEOPLE OF ALL AGES, BACKGROUNDS AND SKILL SETS, WHICH TRULY REPRESENT THE DIVERSITY OF THE COMMUNITY WE SERVE. WHETHER WORKING BEHIND THE SCENES OR FRONT AND CENTER, BANNER HEALTH FOUNDATION VOLUNTEERS ARE COMMITTED TO HELPING OTHERS. INDIVIDUALS DONATE THEIR TIME AND TALENTS TO MAKE A DIFFERENCE BY SERVING AS MEMBERS OF THE BOARD OF DIRECTORS, MEMBERS OF VARIOUS OTHER BOARDS, CAMPAIGN CABINETS, ADVISORY COUNCILS, EVENT PLANNING COMMITTEES AND MORE. RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMITED TO, OPERATIONAL OVERSIGHT, DONOR CULTIVATION, RELATIONSHIP BUILDING, EVENT PLANNING, AND PUBLIC SPEAKING. BANNER HEALTH FOUNDATION VOLUNTEERS ASSIST IN A VARIETY OF CAPACITIES AND ARE CRITICAL TO OUR SUCCESS. FORM 990, PART VI, LINE 1A THE BANNER HEALTH FOUNDATION (BHF) BOARD OF DIRECTORS IS PRIMARILY A FUNDRAISING BOARD WITHOUT FISCAL OVERSIGHT. THE BANNER HEALTH BOARD OF DIRECTORS HAS THE BROADER AUTHORITY OVER BHF AS DESCRIBED IN THE NARRATIVE FOR PART VI, LINES 7A/B. IN MANY, IF NOT ALL, SITUATIONS, THE BHF BOARD DELEGATES AUTHORITY DIRECTLY TO THE BANNER HEALTH CEO. FORM 990, PART VI, LINE 2 JOHN STRITTMATTER AND JOHN GRAHAM HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, LINE 6 THE SOLE VOTING MEMBER OF BANNER HEALTH FOUNDATION IS BANNER HEALTH, AN ARIZONA NONPROFIT CORPORATION EXEMPT FROM TAX AS AN ENTITY DESCRIBED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. FORM 990, PART VI, LINE 7A AND 7B THE MEMBER'S VOTE SHALL BE REQUIRED ON: (A) ELECTION AND REMOVAL OF DIRECTORS AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (B) ELECTION AND REMOVAL OF CERTAIN OFFICERS AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (C) THE ADOPTION OF ANY PLAN OF MERGER OR CONSOLIDATION; (D) THE ADOPTION OF ANY PLAN OF DISSOLUTION; (E) THE SALE OR ENCUMBRANCE OF ANY ASSET AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (F) AMENDMENT OF THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION; (G) THOSE ISSUES OR MATTERS UPON WHICH THE MEMBER IS GRANTED VOTING RIGHTS AS SET FORTH IN THE ARTICLES OF INCORPORATION, THE BYLAWS, OR THE ARIZONA NONPROFIT CORPORATION ACT. THE CORPORATION MAY HAVE SUCH NONVOTING MEMBERS AS THE MEMBER SHALL CREATE AND AUTHORIZE. AT SUCH TIME AS THE MEMBER CREATES A CLASS OR CLASSES OF NONVOTING MEMBERSHIP FOR THE CORPORATION, IT SHALL AMEND THE BYLAWS ACCORDINGLY. CREATION OF ANY CLASS OF NONVOTING MEMBER SHALL BE EFFECTIVE ONLY UPON AMENDMENT OF THE BYLAWS. POWERS OF THE VOTING MEMBER - THE VOTING MEMBER SHALL HAVE AND EXERCISE THOSE POWERS HEREAFTER DESCRIBED AS WELL AS THOSE SPECIFIC POWERS SET FORTH IN OTHER SECTIONS OF THE BYLAWS. THE VOTING MEMBER SHALL: (A) APPOINT OR REMOVE THE PRESIDENT AND EVALUATE THE PERFORMANCE OF THE PRESIDENT; (B) APPOINT ALL MEMBERS OF THE BOARD OF DIRECTORS OF THE CORPORATION FOLLOWING NOMINATION BY THE BOARD OF DIRECTORS OF THE CORPORATION; (C) REVIEW AND APPROVE MISSION STATEMENTS AND STRATEGIC PLANS; (D) APPROVE THE ESTABLISHMENT OF ALL NEW CORPORATE OR PARTNERSHIP ENTITIES CREATED OR JOINED BY THE CORPORATION; (E) REVIEW AND APPROVE OPERATING AND CAPITAL BUDGETS OF THE CORPORATION; (F) APPROVE ALL UNBUDGETED EXPENDITURES OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER; (G) APPROVE THE SALE OF ANY ASSET OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER; (H) APPROVE MAJOR CONTRACTS OF A NATURE AND SIZE AS DETERMINED BY POLICY AND SIGNATURE AUTHORITY OF THE VOTING MEMBER; AND (I) APPROVE ALL DEBT OF THE CORPORATION OF TYPES AND LIMITS OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER. FORM 990, PART VI, LINE 11B THE 990 IS REVIEWED BY BANNER HEALTH'S LEGAL DEPARTMENT, TAX DEPARTMENT, INTERNAL AUDIT DEPARTMENT AND CERTAIN BANNER HEALTH FOUNDATION OFFICERS. A MEETING IS HELD WITH THE TAX PREPARER AND A LINE-BY-LINE REVIEW IS DONE PRIOR TO THE FILING OF THE RETURN. THE FORM 990 WILL BE MADE AVAILABLE TO THE GOVERNING BODY AT THE NEXT REGULARLY SCHEDULED BOARD MEETING AFTER FILING. FORM 990, PART VI, LINE 12C THE BANNER HEALTH INTERNAL AUDIT DEPARTMENT PROVIDES EACH PARTY WITH A DISCLOSURE QUESTIONNAIRE. THE INTERNAL AUDIT DEPARTMENT PREPARES A SUMMARY FOR THE TAX DEPARTMENT. THIS SUMMARY IS ALSO PRESENTED TO THE AUDIT COMMITTEE. THE TAX DEPARTMENT PREPARES THE FORM 990 DISCLOSURE. THIS DISCLOSURE IS PRESENTED TO THE LEGAL DEPARTMENT FOR REVIEW. PURSUANT TO BANNER'S CONFLICT OF INTEREST POLICY, ALL BOARD MEMBERS, OFFICERS AND THE DIRECTOR OF AUDIT SERVICES MUST DISCLOSE THE EXISTENCE OF ANY FINANCIAL INTEREST THAT MAY GIVE RISE TO A CONFLICT OF INTEREST. FORM 990, PART VI, LINE 15A & 15B THE COMPENSATION OF THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO IS DETERMINED BY THE BANNER HEALTH PRESIDENT AND CEO AND IS SUBJECT TO OVERSIGHT BY THE BANNER HEALTH BOARD OF DIRECTORS COMPENSATION COMMITTEE IN THE SAME MANNER AS SUCH OVERSIGHT IS EXERCISED OVER OTHER VICE PRESIDENTS AND HIGHER EXECUTIVES OF BANNER HEALTH. THE COMPENSATION OF OTHER OFFICERS OF THE BANNER HEALTH FOUNDATION IS ESTABLISHED BY THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO, IF THEY ARE EMPLOYEES OF THE BANNER HEALTH FOUNDATION, OR BY BANNER HEALTH, IF THEY ARE EMPLOYEES OF BANNER HEALTH, IN EACH CASE WITHIN COMPENSATION RANGES SET BY THE BANNER HEALTH COMPENSATION AND BENEFITS DEPARTMENT BASED ON MARKET DATA. BANNER HEALTH'S PROCESS TO DETERMINE THE COMPENSATION OF THE BANNER HEALTH FOUNDATION IS AS FOLLOWS: BANNER HEALTH UTILIZES A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT DIRECTORS THAT EXERCISES OVERSIGHT OVER ALL ASPECTS OF THE COMPENSATION PAID TO OR FOR THE BENEFIT OF THE PRESIDENT AND CEO AND ALL OTHER SENIOR EXECUTIVES OF BANNER HEALTH AND ANY OF ITS AFFILIATES, INCLUDING THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO, AND ALL OTHER PERSONS WHO CONSTITUTE "DISQUALIFIED PERSONS" WITH RESPECT TO BANNER HEALTH UNDER CODE SECTION 4958. THE COMMITTEE: - ASSESSES ANNUALLY THE PERFORMANCE OF THE PRESIDENT AND CEO - EXERCISES OVER SIGHT OVER ALL ASPECTS OF COMPENSATION FOR THE PRESIDENT AND CEO - REVIEWS AND DETERMINES THE EXECUTIVE TOTAL COMPENSATION PHILOSOPHY OF BANNER HEALTH - ESTABLISHES THE PERMISSIBLE RANGES OF COMPENSATION FOR SENIOR EXECUTIVES AND DISQUALIFIED PERSONS, INCLUDING THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO - REVIEWS AND APPROVES THE DESIGN OF THE COMPONENTS OF COMPENSATION FOR SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS AND MONITORS COMPLIANCE OF BANNER HEALTH WITH THE PHILOSOPHY AND DESIGN COMPONENTS OF EXECUTIVE COMPENSATION - RECEIVES THE PRESIDENT AND CEO'S REPORT CONCERNING THE OVERALL PERFORMANCE AND DEVELOPMENT ASSESSMENT OF THE SENIOR EXECUTIVES, INCLUDING THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO - ACTS FOR THE BOARD IN THE ENGAGEMENT AND DIRECT OVERSIGHT OF EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS ENGAGED TO PROVIDE ADVICE AND INFORMATION WITH RESPECT TO THE REASONABLENESS AND COMPETITIVENESS OF THE COMPENSATION PAID TO THE PRESIDENT AND CEO, SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS, INCLUDING THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO, WHICH CONSULTANT REPORTS DIRECTLY TO THE COMMITTEE AND PERFORMS SUCH OTHER DUTIES AND DELEGATED RESPONSIBILITIES AS THE BOARD MAY ASSIGN TO THE COMMITTEE FROM TIME TO TIME. IN ADDITION, THE COMMITTEE HAS ADOPTED THE FOLLOWING BEST PRACTICES WITH RESPECT TO ITS EXECUTIVE COMPENSATION OVERSIGHT FUNCTION: REVIEWS THE REPORT OF THE VICE PRESIDENT, TOTAL COMPENSATION, REGARDING ALL MATERIAL INCENTIVE PLANS, BENEFIT PLANS, AND PROGRAMS THAT APPLY TO EMPLOYEES AND PHYSICIANS GENERALLY; APPROVES THE BANNER HEALTH PRESIDENT AND CEO'S RECOMMENDATIONS AS TO THE COMPENSATION OF SENIOR EXECUTIVES. THE COMPENSATION COMMITTEE MAY RETAIN EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS TO THE EXTENT THE COMMITTEE DEEMS NECESSARY OR APPROPRIATE TO CARRY OUT ITS RESPONSIBILITIES. IF SO ENGAGED, THE COMMITTEE HAS RESPONSIBILITY FOR APPROVING THE FEES AND THE TERMS OF ENGAGEMENT FOR THE CONSULTANTS, AS WELL AS TERMINATION OF SUCH ENGAGEMENT. TYPICALLY, THE COMMITTEE HAS ENGAGED A CONSULTANT ANNUALLY TO REVIEW AND OPINE AS TO THE REASONABLENESS OF THE PRESIDENT AND CEO'S COMPENSATION PACKAGE AND HAS ENGAGED A CONSULTANT APPROXIMATELY ONCE EVERY THREE YEARS TO REVIEW AND OPINE AS TO THE REASONABLENESS OF SENIOR EXECUTIVE AND OTHER EXECUTIVE MANAGEMENT COMPENSATION, INCLUDING THAT OF THE BANNER HEALTH FOUNDATION PRESIDENT AND CEO. THE COMMITTEE PERIODICALLY REVIEWS THE RELATIONSHIP BETWEEN BANNER HEALTH AND EACH CONSULTANT TO ENSURE THE CONSULTANT'S INDEPENDENCE. IN CONNECTION WITH EACH SUCH EVALUATION, THE COMMITTEE REQUESTS A WRITTEN CERTIFICATION FROM EACH CONSULTANT THAT: - INCLUDES AN INDEPENDENCE ATTESTATION AFFIRMING THAT THE CONSULTANT HAS CONDUCTED ITS OWN INTERNAL ASSESSMENT AND, BASED ON SUCH ASSESSMENT AND ITS INTERNAL CONTROLS, CONCLUDED THAT IT HAS PERFORMED ITS SERVICES FOR THE COMMITTEE IN AN INDEPENDENT MANNER AND IS INDEPENDENT AS DEFINED IN THE INTERMEDIATE SANCTION REGULATIONS UNDER CODE SECTION 4958 - CONFIRMS THAT THE CONSULTANT REPORTS TO THE COMMITTEE THROUGH THE CHAIR OF THE COMMITTEE AND THAT ALL CONSULTING ACTIVITY FOR BANNER HEALTH CONDUCTED BY SUCH CONSULTANT DURING THE PRECEDING YEAR WAS CONDUCTED WITH THE KNOWLEDGE AND CONSENT OF THE CHAIR OF THE COMMITTEE - DETAILS THE AMOUNTS PAID BY BANNER HEALTH TO THE CONSULTANT IN ITS CAPACITY AS AN EXTERNAL COMPENSATION CONSULTANT TO THE COMMITTEE, AND THE AMOUNTS PAID BY BANNER HEALTH, IF ANY, TO THE CONSULTANT AND ITS AFFILIATES FOR ANY OTHER ENGAGEMENTS THE COMMITTEE MAY ALSO REQUIRE THE CONSULTANT TO VERIFY THAT IT MEETS THE DEFINITION OF 'INDEPENDENCE' AS DESCRIBED IN THE FORM 990 INSTRUCTIONS. COMPENSATION SURVEYS AND STUDIES ARE UTILIZED BY INDEPENDENT CONSULTANTS THAT THE COMMITTEE MAY ENGAGE FROM TIME TO TIME. THE COMPENSATION REVIEW PROCESS WAS LAST COMPLETED IN 2016. FORM 990, PART VI, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, AND TAX RETURNS ARE AVAILABLE UPON REQUEST. COPIES ARE MAINTAINED AT EACH ADMINISTRATIVE OFFICE AND IN THE LEGAL AND TAX DEPARTMENTS. FORM 990, PART XI, LINE 9 INTERCOMPANY TRANSFERS $3,497,097 Banner Health 2901 N Central Ave Suite 160 Phoenix AZ 85012 450233470 Hospital AZ 501(C)(3) 3 NA false Banner Alzheimers Foundation 2901 N Central Ave Suite 160 Phoenix AZ 85012 204862361 Support AZ 501(C)(3) 7 BANNER HLTH true Banner Medical Group 2901 N Central Ave Suite 160 Phoenix AZ 85012 900532830 MEDICAL SVS AZ 501(C)(3) 3 BANNER HLTH true Banner Medical Group Colorado 2901 N Central Ave Suite 160 Phoenix AZ 85012 900532831 MEDICAL SVS CO 501(C)(3) 3 BANNER HLTH true Casa Grande Community Hospital FDN INC 1800 E Florence Blvd Casa Grande AZ 85122 311726569 Support AZ 501(C)(3) 7 BANNER HLTH true Banner--University Medical Group 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 85012 942958258 MEDICAL SVS AZ 501(C)(3) 3 BANNER HLTH true The Univ of AZ Health Plans-Family Care 2901 N Central Ave Suite 160 Phoenix AZ 85012 463766901 HEALTH INSUR AZ 501(C)(3) 10 BANNER HLTH true The Univ of AZ Health Plans - UCA 2901 N Central Ave Suite 160 Phoenix AZ 85012 463757358 HEALTH INSUR AZ 501(C)(3) 10 BANNER HLTH true Partners in Integrated Health LLC 2901 N Central Avenue Suite 160 Phoenix AZ 85012 611700965 Management Svs AZ NA N/A Banner Arizona ASC LLC 525 W Brown Road Mesa AZ 85201 900532830 OP Surgery Ctr TN NA N/A DGV Enhanced US Equity Fund LLC 10 Second Street NE Suite 200 Minneapolis MN 55413 472398930 Investments MN NA N/A Banner Plan Administration Inc 445 W 5th Place Suite 101 Mesa AZ 85201 860800246 3rd Party Admin AZ NA c corp true Banner Indemnity Ltd 1627 E 18th St PO Box 1051 Grand Cayman BWI CJ 450233470 Investments CJ NA foreign corp true Banner Health Network 2901 N Central Ave Suite 160 Phoenix AZ 85012 900750689 Accountable Care AZ NA c corp true The Univ of Az Health Plans-U Healthcare 2901 N Central Ave Suite 160 Phoenix AZ 85012 454370907 Health Insurance AZ NA c corp true false true true true true false false false false false false false false true true false false false false SCHEDULE R, PART III PARTNERS IN INTEGRATED HEALTH EIN: 61-1700965 ADDRESS: 2901 N CENTRAL AVE SUITE 160, PHOENIX, AZ 85012 BANNER ARIZONA ASC LLC EIN:90-0532830 ADDRESS:525 W BROWN ROAD, MESA, AZ 85201 DGV ENHANCED US EQUITY FUND, LLC EIN: 47-2398930 ADDRESS: 10 SECOND STREET NE SUITE 200, MINNEAPOLIS, MN 55413