2016-05-16T09:45:58-05:00 2015-06-30 990 2014-07-01 382640544 MUNSON HEALTHCARE MUNS 2319357777 PO BOX 1188 TRAVERSE CITY MI 496851188 MARK A HEPLER CHIEF FINANCIAL OFFICER 2319357777 2016-05-13 2014 2016-08-17 19:52:53Z EDWIN A NESS 1105 SIXTH ST TRAVERSE CITY MI 49684 8093299 false X WWW.MUNSONHEALTHCARE.ORG X 1985 MI MUNSON HEALTHCARE AND ITS PARTNERS WORK TOGETHER TO PROVIDE SUPERIOR QUALITY CARE AND PROMOTE COMMUNITY HEALTH. 22 16 73 71850 2389 0 6812559 7060864 739788 1000420 17395 32015 7569742 8093299 50000 1800 0 9075085 10097769 0 629061 2700709 5006690 11825794 15106259 -4256052 -7012960 25235020 42174370 4400414 28153118 20834606 14021252 MUNSON HEALTHCARE AND ITS PARTNERS WORK TOGETHER TO PROVIDE SUPERIOR QUALITY CARE AND PROMOTE COMMUNITY HEALTH. false false 6325453 1800 7088403 PARENT HOLDING COMPANY FOR CORPORATIONS PROVIDING HEALTH CARE AND RELATED SERVICES. 6325453 true false false true false false false false false true true true false true true true false true false false true false false false false false false false false true false false false false false false false false false false false false false true true true false false true 54 0 true 73 true true true false false false false false false false false false X 22 16 false false false false true true true true true false false true true true true true true true true true true MI X NICOLE SULAK MUNSON HEALTHCARE 2319357777 4230 COPPER RIDGE DR TRAVERSE CITY MI 49684 EDWIN A NESS PRESIDENT & 36.00 4.00 X X 841115 0 250595 ALFRED E PILONG JR DIRECTOR 2.00 38.00 X 0 515799 79723 DANIEL WOLF PREVIOUS CHA 4.00 2.00 X 24500 0 0 REX D ANTINOZZI MD DIRECTOR 2.00 4.00 X 0 24500 0 CARL B ANDERS MD DIRECTOR 4.00 X 0 16375 0 DEBORAH FELLOWS DIRECTOR 4.00 X 15625 0 0 CONSTANCE DENEWETH SECRETARY 4.00 2.00 X X 12500 0 0 CHARLES BUMP DIRECTOR 4.00 X 12500 0 0 EMORY D JOHNSON DIRECTOR 4.00 X 12500 0 0 JERRY CARLSON DIRECTOR 4.00 X 12500 0 0 ROBERT SPRUNK MD VICE CHAIR 4.00 X X 12500 0 0 TERRY ROGERS DIRECTOR 4.00 X 12500 0 0 THEODORE N BATZER MD DIRECTOR 4.00 X 12500 0 0 MARLENE HULTEEN DIRECTOR 4.00 X 12500 0 0 DAN MCDAVID TREASURER 4.00 X X 12500 0 0 DEBORAH J OCHS MD DIRECTOR 4.00 X 12500 0 0 MARY SANDERS DIRECTOR 4.00 X 12500 0 0 ELAINE WOOD DIRECTOR 4.00 2.00 X 12500 0 0 BARBARA BENSON DIRECTOR 4.00 X 9375 0 0 CASEY COWELL DIRECTOR 4.00 X 3125 0 0 ROGER W SPOELMAN DIRECTOR 4.00 X 0 0 0 GEORGE BEARUP DIRECTOR 4.00 4.00 X 0 0 0 JOHN PELIZZARI CHAIR 4.00 4.00 X X 0 0 0 KATHY DIXON DIRECTOR 4.00 X 0 0 0 PAUL LERG DIRECTOR 4.00 X 0 0 0 MARK A HEPLER CFO 40.00 X 353242 0 66354 PAUL SHIRILLA VP LEGAL 40.00 X 328287 0 48017 SUZANNE K PETERS VP HUMAN RES 40.00 X 222189 0 38912 CHRISTOPHER J PODGES VP & CHIEF I 40.00 X 308443 0 56133 JAMES BARKER AFFILIATE AD 40.00 X 284312 0 44578 TIMOTHY BINDER VP PHYSICIAN 40.00 X 240121 0 41676 MARK S DEPONIO VP SUPPLY CH 40.00 X 224613 0 31886 MARY BETH MORRISON VP PLANNING 40.00 X 219840 0 41620 3224787 556674 699494 22 false true false FOSTER SWIFT COLLINS AND SMITH 313 SOUTH WASHINGTON SQUARE LANSING MI 48933 LEGAL 575160 HEALTH CARE FUTURES 300 PARK BLVD STE 2 ITASCA IL 60143 198753 SULLIVAN COTTER AND ASSOC INC 62272 COLLECTIONS CENTER DR CHICAGO IL 606930622 190910 PONDER AND CO 8498 SOLUTION CENTER CHICAGO IL 606778004 189018 DRINKER BIDDLE REATH ONE LOGAN SQUARE SUITE 2000 PHILADELPHIA PA 191036996 147947 6 CONTRACT REVENUES 561000 6990265 6990265 CONTRACT REVENUES 561000 70599 70599 7060864 324717 67374 257343 675703 675703 675703 675703 MISCELLANEOUS 900003 30764 30764 PASS THROUGH UBI FOR JV 900003 1251 1251 32015 8093299 7088403 71850 933046 X 1800 1800 2450054 1024615 1341577 83862 6267445 3628725 2638720 524964 415128 109836 438466 327569 110897 416840 304435 112405 1064061 1064061 51050 51050 3082607 219950 2317458 545199 40361 28557 11804 194758 88672 106086 75123 50302 24821 1672 1672 24732 6639 18093 62110 62110 DUES AND SUBSCRIPTIONS 321166 208660 112506 LICENSES 62925 13370 49555 BOARD MTGS/RETREATS/TRAVE 21462 4560 16902 DIETARY 3759 799 2960 904 904 15106259 6325453 8151745 629061 74573 97682 150480 161234 636519 566017 352571 345866 25899 6705 11914154 12418000 12433395 6313378 22611354 25235020 42174370 2179580 2912512 2220834 25240606 4400414 28153118 X 20834606 14021252 20834606 14021252 25235020 42174370 -7012960 -381110 580716 X false true X true false X X 4 MUNSON MEDICAL CENTER 381362830 3 true 0 1672476 PAUL OLIVER MEMORIAL HOSPITAL 381415623 3 true 0 179616 MUNSON HEALTHCARE CADILLAC 471156297 3 false 9048811 0 MUNSON HEALTHCARE GRAYLING 471161992 3 false 6973349 0 4 16022160 1852092 false false false false false false false false false false false false false false false true true false X true true PART IV, LINE 1 MUNSON HEALTHCARE'S ARTICLES OF INCORPORATION WERE AMENDED SUBSEQUENT TO YEAR-END, TO INCLUDE THE TWO NEW SUBSIDIARY HOSPITAL ORGANIZATIONS IN THE MUNSON HEALTHCARE SYSTEM. THE ARTICLES DURING THE TAX YEAR SPECIFICALLY NAME TWO SUPPORTED HOSPITALS BY NAME: MUNSON MEDICAL CENTER AND PAUL OLIVER MEMORIAL HOSPITAL. THESE ENTITIES ARE REFERRED TO AS THE "HOSPITALS" IN THE ARTICLES. DURING TAX YEAR 2014, TWO ADDITIONAL ENTITIES WERE FORMED WHICH PURCHASED HOSPITAL ASSETS: MUNSON HEALTHCARE CADILLAC AND MUNSON HEALTHCARE GRAYLING. BOTH ENTITIES ARE HOSPITALS AND RECEIVED IRS DETERMINATION LETTERS REGARDING THEIR TAX-EXEMPT SECTION 501(C) AND 170(B) (I)(A)(III) STATUS. HISTORICALLY, MUNSON HEALTHCARE HAS SUPPORTED ALL THE HOSPITAL ENTITIES IN THE MUNSON HEALTHCARE SYSTEM AS WELL AS OTHER ORGANIZATIONS NOT REQUIRED TO BE SPECIFICALLY LISTED BASED ON HISTORIC AND CONTINUING RELATIONS INCLUDING THE MUNSON HOME HEALTH AND SUBSIDIARIES, MUNSON MEDICAL GROUP, MUNSON DIALYSIS AND NORTH FLIGHT, INC. PART IV, SECTION E, LINE 3A MUNSON HEALTHCARE, AS THE SOLE MEMBER, ELECTS THE DIRECTORS/TRUSTEES FOR SUBSIDIARY ENTITIES, INCLUDING SUPPORTED ORGANIZATIONS. NOMINATIONS TO MUNSON HEALTHCARE FOR SUBSIDIARY DIRECTORS/TRUSTEES ARE CONSIDERED AND RECOMMENDED BY THE MUNSON HEALTHCARE GOVERNANCE COMMITTEE. PART IV, SECTION E, LINE 3B CERTAIN DECISIONS OF THE SUPPORTED ORGANIZATIONS' TRUSTEES/DIRECTORS ARE SUBJECT TO APPROVAL BY THE MUNSON HEALTHCARE BOARD OF TRUSTEES INCLUDING THE ADOPTION, AMENDMENT, RESTATEMENT OR REPEAL OF THE ARTICLES OF INCORPORATION OR BYLAWS OF SUPPORTED ORGANIZATIONS; THE ADOPTION, EXECUTION, REVOCATION OR ABANDONMENT OF A PLAN OF DISSOLUTION, MERGER, CONSOLIDATION, OR REORGANIZATION; THE SALE, LEASE, EXCHANGE OR OTHER DISPOSITION OF ALL OR SUBSTANTIALLY ALL OF THE PROPERTY AND ASSETS OF THE SUPPORTED ORGANIZATIONS; THE ACQUISITION OF OR THE ESTABLISHMENT OF ANY SUBSIDIARY OR AFFILIATE OF SUPPORTED ORGANIZATIONS; THE ADOPTION OF ALL OPERATING BUDGETS AND CAPITAL EXPENDITURE BUDGETS FOR SUPPORTED ORGANIZATIONS INCURRENCE OF OPERATING OR CAPITAL EXPENDITURES BY SUPPORTED ORGANIZATIONS WHICH CAUSE THE AGGREGATE OPERATING OR CAPITAL EXPENDITURES TO EXCEED BUDGETED AGGREGATES BY MORE THAN FIVE PERCENT (5%) IN ANY FISCAL YEAR; INCURRENCE OF SECURED BORROWINGS OF SUPPORTED ORGANIZATIONS WITH THE EXCEPTION OF EQUIPMENT LEASES AND PURCHASE MONEY SECURITY INTERESTS APPROVED AS PART OF THE BUDGET; THE ADOPTION OR AMENDMENT OF THE MISSION STATEMENT, PURPOSES OR THE STRATEGIC GOALS OF SUPPORTED ORGANIZATIONS; CHANGE IN SCOPE OF CLINICAL SERVICES OR PROGRAMS PROVIDED BY SUPPORTED ORGANIZATIONS; AND APPOINTMENT OR REMOVAL OF THE PRESIDENT. false false false false false false false false true 61009 61009 false SCHEDULE C, PART II-B, LINE 1 PAID A CONSULTANT TO COORDINATE, MANAGE CONACTS AND COMMUNICATE WITH LOCAL, STATE AND FEDERAL LEGISLATORS ON HEALTHCARE LEGISLATION AND POLICY MATTERS OF IMPORTANCE TO MUNSON HEALTHCARE AND ITS FACILITIES AND SERVICES. ALSO INCLUDED IN THIS AMOUNT IS A PORTION OF DUES TO REGIONAL AND NATIONAL ORGANIZATIONS THAT RELATE TO LOBBYING ACTIVITY. 11914154 564742 60896 12418000 10419390 1557389 62625 11914154 9461060 1002249 43919 10419390 9246188 263504 48632 9461060 7963804 1326802 44418 9246188 1.00000 false false 352571 345866 6705 6705 INSURANCE INVESTMENTS 4943348 F INVESTMENT IN SUPPLY ALLIANCE 811747 F INVESTMENT IN PRIORITY HEALTH 558283 F 6313378 AFFILIATE RECEIVABLE 22611354 22611354 AFFILIATE PAYABLE 22612000 INSURANCE CLAIMS RESERVE 2628606 25240606 X SCHEDULE D, PAGE 2, PART V, LINE 4 THE BOARD-DESIGNATED FUNDS ARE MAINTAINED FOR THE FUTURE USE OF THE MUNSON HEALTHCARE SYSTEM. EARNINGS FROM THE INVESTMENTS ARE USED CURRENTLY, FOR THE OPERATIONS OF MUNSON HEALTHCARE AS A PARENT ORGANIZATION IN THE SYSTEM. SCHEDULE D, PAGE 3, PART X ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE ORGANIZATION AND RECOGNIZE A TAX LIABILITY IF THE ORGANIZATION HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE ORGANIZATION, AND HAS CONCLUDED THAT AS OF JUNE 30, 2015, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE ORGANIZATION IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO JUNE 30, 2011. false CENTRAL AMERICA AND THE CARIBBEAN SELF INSURANCE INSURANCE 497248 CENTRAL AMERICA AND THE CARIBBEAN SELF INSURANCE INCREASE INVESTMENT 657500 CENTRAL AMERICA AND THE CARIBBEAN INVESTMENT INSURANCE INVESTMENT 3648215 4802963 4802963 true false false false false false SCHEDULE F, PAGE 1, PART I, LINE 3 CENTRAL AMERICA AND THE CARIBBEAN 497,248 0 CENTRAL AMERICA AND THE CARIBBEAN 0 657,500 CENTRAL AMERICA AND THE CARIBBEAN 0 3,648,215 SCHEDULE F, PAGE 5, PART V EXPENDITURES ARE REPORTED BASED ON THE ACCRUAL METHOD OF ACCOUNTING. X X X X false true false false false false false false false EDWIN A NESS PRESIDENT & CEO 603748 234875 2492 228336 22259 1091710 ALFRED E PILONG JR DIRECTOR 406877 90460 18462 60425 19298 595522 MARK A HEPLER CFO 266053 57707 29482 43400 22954 419596 8337 PAUL SHIRILLA VP LEGAL 277110 49357 1820 33417 14600 376304 SUZANNE K PETERS VP HUMAN RESOURCES 166539 26304 29346 21339 17573 261101 3515 CHRISTOPHER J PODGES VP & CHIEF INFO OFFI 266846 38558 3039 33111 23022 364576 JAMES BARKER AFFILIATE ADMINISTRA 221179 55041 8092 25350 19228 328890 TIMOTHY BINDER VP PHYSICIAN INTEGRA 200720 28080 11321 23352 18324 281797 MARK S DEPONIO VP SUPPLY CHAIN 178646 26663 19304 22697 9189 256499 MARY BETH MORRISON VP PLANNING 177256 28860 13724 21778 19842 261460 3452 SCHEDULE J, PAGE 1, PART I, LINE 4 EDWIN A. NESS 0 215,160 0 ALFRED E. PILONG, JR. 0 47,249 0 MARK A. HEPLER 0 27,437 0 PAUL SHIRILLA 0 16,791 0 SUZANNE K. PETERS 0 11,347 0 CHRISTOPHER J. PODGES 0 17,100 0 JAMES BARKER 0 14,044 0 TIMOTHY BINDER 0 12,984 0 MARK S. DEPONIO 0 11,978 0 MARY BETH MORRISON 0 11,142 0 SCHEDULE J, PART III EXECUTIVE SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS: SUBJECT TO REVIEW AND APPROVAL BY THE BOARD COMPENSATION AND EXECUTIVE LEADERSHIP COMMITTEE, IN ORDER TO RECRUIT AND MAINTAIN QUALIFIED EXECUTIVES, INCLUDING THE PRESIDENT AND VICE-PRESIDENTS, A COMPETITIVE BENEFIT PACKAGE IS OFFERED WHICH INCLUDES PARTICIPATION IN A NON-QUALIFIED SUPPLEMENTAL RETIREMENT PLAN. FOR THE PRESIDENT, THE PLAN PROVIDES A TARGETED BENEFIT AT AGE 62. ANNUAL CONTRIBUTIONS, AT MUNSON'S DISCRETION, ARE MADE TO THE PLAN IN ORDER TO ACHIEVE THE TARGETED RETIREMENT BENEFIT LEVEL. VICE-PRESIDENTS ARE ELIGIBLE TO PARTICIPATE IN AN AMOUNT NOT TO EXCEED 6% OF BASE COMPENSATION, FUNDED ANNUALLY, AT THE SOLE DISCRETION OF MUNSON. THESE FUNDS ARE AVAILABLE TO VESTED PARTICIPANTS UPON SEPARATION OF EMPLOYMENT FROM MUNSON. FORM 990, PAGE 6, PART VI, LINE 6 MUNSON HEALTHCARE IS A MEMBERSHIP ORGANIZATION. FORM 990, PAGE 6, PART VI, LINE 7A THERE ARE TWO CLASSES OF MEMBERS OF MUNSON HEALTHCARE: (1) ELECTED MEMBERS; AND (2) EX-OFFICIO MEMBERS. THERE IS NO SEPARATE VOTING BY CLASS ON MATTERS BROUGHT TO VOTE BY THE MEMBERS. EACH ELECTED MEMBER AND EACH EX-OFFICIO MEMBER SHALL HAVE ONE (1) VOTE ON EACH MATTER SUBMITTED TO A VOTE OF THE MEMBERS. THE ELECTED MEMBERS OF THE CORPORATION SHALL CONSIST OF NOT MORE THAN TWO HUNDRED (200) PERSONS, AT LEAST TWO-THIRDS OF WHOM SHALL BE RESIDENTS OF GRAND TRAVERSE, LEELANAU, BENZIE, KALKASKA AND ANTRIM COUNTIES OF THE STATE OF MICHIGAN AT THE TIME OF THEIR ELECTION TO MEMBERSHIP. NO PERSON SHALL BE ELIGIBLE AS AN ELECTED MEMBER AFTER ATTAINING THE AGE OF EIGHTY-FIVE. EACH ELECTED MEMBER SHALL BE NOMINATED BY THE BOARD OF DIRECTORS PURSUANT TO RECOMMENDATION BY THE GOVERNANCE COMMITTEE AND ELECTED BY THE MEMBERS TO SERVE A FIVE (5) YEAR TERM. AN ELECTED MEMBER'S TERM SHALL AUTOMATICALLY CEASE IN THE EVENT THE INDIVIDUAL BECOMES AN EX-OFFICIO MEMBER. THE ELECTED MEMBERS SHALL BE DIVIDED INTO STAGGERED TERMS SO THAT NEARLY EQUAL NUMBERS SHALL BE ELECTED EACH YEAR. THE EX-OFFICIO MEMBERS OF THE CORPORATION SHALL CONSIST OF EACH DIRECTOR OR TRUSTEE SERVING ON THE BOARDS OF DIRECTORS OR BOARD OF TRUSTEES OF CERTAIN SUBSIDIARY AND AFFILIATE ORGANIZATIONS. FORM 990, PAGE 6, PART VI, LINE 7B THE MEMBERS VOTE TO ELECT THE ELECTED MEMBERS AND THE ELECTED DIRECTORS OF THE CORPORATION. ADDITIONALLY, ANY AMENDMENT, REPEAL OR ADOPTION OF NEW BYLAWS, TO THE EXTENT IT AFFECTS THE RIGHTS AND POWERS OF THE MEMBERS OF THE CORPORATION, SHALL BE EFFECTIVE ONLY UPON RATIFICATION BY THE MEMBERS. CERTAIN ACTIONS UNDER THE MICHIGAN NONPROFIT CORPORATIONS ACT ALSO REQUIRE THE APPROVAL OF THE MEMBERSHIP INCLUDING A MERGER, CONSOLIDATION, CORPORATE REORGANIZATION, SALE OF SUBSTANTIALLY ALL THE ASSETS, AMENDMENT OF THE ARTICLES OF INCORPORATION AND DISSOLUTION. FORM 990, PAGE 6, PART VI, LINE 11B THE MUNSON HEALTHCARE BOARD IS COMMITTED TO THE ACCURACY AND THOROUGHNESS OF THE FORM 990 REPORTING. MUNSON HEALTHCARE IS THE PARENT COMPANY IN THE MUNSON HEALTHCARE SYSTEM, WHICH UNDERGOES AN AUDIT BY AN EXTERNAL AUDIT FIRM. AT THE CORPORATE LEVEL, THE RESPONSIBLE INDIVIDUALS FROM THE FINANCE, ADMINISTRATION, PATIENT FINANCIAL SERVICES, LEGAL, HUMAN RESOURCES, PUBLIC RELATIONS, AND FUND DEVELOPMENT DEPARTMENTS PREPARE AND REVIEW PORTIONS OF THE FORM 990. THE COMPENSATION AND LEADERSHIP DEVELOPMENT COMMITTEE REVIEWS THE COMPENSATION INFORMATION CONTAINED IN THE CORE FORM AS WELL AS THE SCHEDULE J INFORMATION. THE CONFLICT, VALUATION AND COMPLIANCE COMMITTEE OVERSEES THE CONFLICT OF INTEREST DISCLOSURE PROCESS FOR BOARD MEMBERS AND KEY EMPLOYEES TO ENSURE COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. THE AUDIT COMMITTEE OVERSEES THE FORM 990 PREPARATION PROCESS BY ENSURING PROPER CONTROLS, POLICIES, PEOPLE AND RESOURCES ARE IN PLACE TO PRODUCE AN ACCURATE RETURN. FORM 990, PAGE 6, PART VI, LINE 12C THE MUNSON HEALTHCARE BOARD OF DIRECTORS (THE SYSTEM PARENT ORGANIZATION) HAS A STANDING CONFLICT, VALUATION AND COMPLIANCE ("CVC") COMMITTEE. THE CVC COMMITTEE IS COMPOSED OF INDEPENDENT BOARD AND COMMUNITY MEMBERS. THE CVC COMMITTEE IS DELEGATED AUTHORITY BY THE BOARD TO REVIEW AND APPROVE THE REASONABLENESS/FAIR MARKET VALUE OF FINANCIAL TRANSACTIONS/ARRANGEMENTS WITH DISQUALIFIED PERSONS. ANNUALLY, EACH BOARD MEMBER OF MUNSON HEALTHCARE AND ALL OF ITS SUBSIDIARY/CONTROLLED ENTITIES AND ALL MUNSON EXECUTIVES ARE REQUIRED TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE/QUESTIONNAIRE. THE RESPONSES TO THE DISCLOSURE/QUESTIONNAIRE ARE REVIEWED BY THE MUNSON LEGAL DEPARTMENT. ANY FINANCIAL ARRANGEMENTS/POTENTIAL CONFLICTS IDENTIFIED THROUGH THE DISCLOSURE/QUESTIONNAIRES ARE PRESENTED TO THE CVC COMMITTEE FOR ITS REVIEW AND DETERMINATION AS TO THE REASONABLENESS/FAIR MARKET VALUE. WHEN AN ACTION ITEM IS CONSIDERED BY A BOARD WHICH INVOLVES A POTENTIAL CONFLICT BY A BOARD MEMBER, THE CONFLICT IS DISCLOSED AND A BOARD MEMBER WILL ABSTAIN FROM A VOTE ON THE ACTION ITEM, AND, IN ADDITION, THE BOARD CHAIR HAS THE DISCRETION/AUTHORITY TO REQUEST THAT THE CONFLICTED BOARD MEMBER BE EXCUSED FROM THE MEETING FOR AN OPPORTUNITY FOR THE BOARD TO DISCUSS THE MATTER WITHOUT THE PRESENCE OF THE CONFLICTED BOARD MEMBER. FORM 990, PAGE 6, PART VI, LINE 15A THE PROCESS FOR DETERMINING APPROPRIATE LEVELS OF PAY FOR EXECUTIVE POSITIONS WITHIN MUNSON HEALTHCARE IS CAREFULLY AND THOUGHTFULLY DIRECTED BY THE BOARD OF DIRECTORS, THROUGH THE COMPENSATION AND EXECUTIVE LEADERSHIP DEVELOPMENT COMMITTEE. THE COMMITTEE UTILIZES "BEST PRACTICES" METHODS OF DETERMINING COMPENSATION AND, AS SUCH, IS COMPOSED OF EIGHT MEMBERS WHOSE VOTING MEMBERS ARE INDEPENDENT. THE COMMITTEE IS CHARGED WITH ENSURING THAT EXECUTIVE COMPENSATION IS DESIGNED TO ATTRACT AND RETAIN HIGH QUALITY, PROFESSIONAL LEADERSHIP WHILE MAINTAINING STRONG STEWARDSHIP FOR THE ORGANIZATION. ANNUALLY, THE COMMITTEE RETAINS A NATIONAL INDEPENDENT CONSULTANT TO ENSURE THAT MUNSON HEALTHCARE'S COMPENSATION PRACTICES AND LEVELS ARE INDEPENDENTLY REVIEWED WHILE BEING COMPETITIVE AND REASONABLE. THE MUNSON HEALTHCARE CONFLICT, VALUATION AND COMPLIANCE ("CVC") COMMITTEE ALSO REVIEWS THE SURVEY INFORMATION TO EVALUATE THE REASONABLENESS OF EXECUTIVE COMPENSATION. THAT ANALYSIS OCCURS EACH NOVEMBER. COMPENSATION LEVELS REFLECT THE SCOPE OF EACH EXECUTIVE'S RESPONSIBILITIES, EDUCATIONAL BACKGROUND, EXPERIENCE, AND INDUSTRY STANDING AS WELL AS INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE. ANNUAL COMPENSATION FOR MUNSON EXECUTIVES IS DETERMINED IN PART BY MEASURABLE PROGRESS TOWARD THE ORGANIZATION'S GOALS INCLUDING CONTINUED IMPROVEMENT IN CLINICAL QUALITY, COMMUNITY HEALTH, AND OPERATIONAL EFFICIENCIES. MUNSON HEALTHCARE'S INTENT FOR EXECUTIVE BASE COMPENSATION IS TO BE AT THE MEDIAN WHEN COMPARED TO LIKE-SIZE NON-PROFIT HOSPITALS AND HEALTHCARE SYSTEMS. FORM 990, PAGE 6, PART VI, LINE 15B COMPENSATION OF OTHER OFFICERS AND KEY EMPLOYEES IS CONSISTENT WITH THAT OF THE TOP EXECUTIVES FOR MUNSON HEALTHCARE. FORM 990, PAGE 6, PART VI, LINE 19 THE MUNSON HEALTHCARE ARTICLES OF INCORPORATION ARE AVAILABLE TO THE PUBLIC ON THE MICHIGAN DEPARTMENT OF TREASURY WEBSITE. MUNSON HEALTHCARE DOES NOT MAKE THE BYLAWS, CONFLICT OF INTEREST POLICY OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. ANNUALLY, MUNSON HEALTHCARE PREPARES AND DISTRIBUTES AN ANNUAL REPORT TO THE COMMUNITY, WHICH CONTAINS FINANCIAL AS WELL AS PROGRAM DATA. FORM 990, PART IX, LINE 11G PROFESSIONAL FEES 104,124 766,388 0 PURCHASED SERVICES 115,826 1,551,070 545,199 FORM 990, PART XI, LINE 9 TRANSFER FROM MUNSON MOBILE IMAGING 300,000 TRANSFER FROM MUNSON DIALYSIS, EXEMPT SUB 500,000 TRANSFER FROM PAUL OLIVER MEMORIAL HOSP, EXEMPT SU 1,000,000 TRANSFER FROM MUNSON MEDICAL CENTER, EXEMPT SUB 20,671,710 TRANSFER TO NORTHFLIGHT, EXEMPT SUB 500,000 TRANSFER TO MUNSON HEALTHCARE CADILLAC, EXEMPT SUB 9,048,811 TRANSFER TO MUNSON HEALTHCARE GRAYLING, EXEMPT SUB 6,973,349 CHANGE IN AFFILIATE EQUITY 5,368,834 MUNSON DIALYSIS CENTER 1105 SIXTH ST TRAVERSE CITY MI 49684 383097861 DIALYSIS MI C3 3 MUNSON HC HEALTHCARE true MUNSON HEALTHCARE REGIONAL FOUNDATI 1105 SIXTH ST TRAVERSE CITY MI 49684 382642724 RAISE FUND MI C3 7 MUNSON HC HEALTHCARE true MUNSON HOME CARE 1105 SIXTH ST TRAVERSE CITY MI 49684 382191390 HOME HEALT MI C3 9 MUNSON HC MUNSON HOME HEATLH true MUNSON HOME HEALTH 1105 SIXTH ST TRAVERSE CITY MI 49684 383335362 HOME HEALT MI C3 11B MUNSON HC HEALTHCARE true MUNSON HOME SERVICES 1105 SIXTH ST TRAVERSE CITY MI 49684 382543463 HOME HEALT MI C3 9 MUNSON HC MUNSON HOME HEALTH true MUNSON MEDICAL CENTER 1105 SIXTH ST TRAVERSE CITY MI 49684 381362830 HOSPITAL MI C3 3 MUNSON HC HEALTHCARE true NORTH FLIGHT INC 1105 SIXTH ST TRAVERSE CITY MI 49684 382657917 MED TRANSP MI C3 11B MUNSON HC HEALTHCARE true PAUL OLIVER MEMORIAL HOSPITAL 1105 SIXTH ST TRAVERSE CITY MI 49684 381415623 HEALTHCARE MI C3 3 MUNSON HC HEALTHCARE true PAUL OLIVER MEMORIAL HOSPITAL FOUND 1105 SIXTH ST TRAVERSE CITY MI 49684 237201619 RAISE FUND MI C3 7 MUNSON HC HEALTHCARE true MUNSON MEDICAL GROUP 1105 SIXTH ST TRAVERSE CITY MI 49684 273600575 PHYSICIAN MI C3 9 MUNSON MED MUNSON MEDICAL CENTER true MUNSON HEALTHCARE CADILLAC 1105 SIXTH ST TRAVERSE CITY MI 49684 471156297 HEALTHCARE MI C3 3 MUNSON HC MUNSON HEALTHCARE true MUNSON HEALTHCARE GRAYLING 1105 SIXTH ST TRAVERSE CITY MI 49684 471161992 HEALTHCARE MI C3 3 MUNSON HC MUNSON HEALTHCARE true MUNSON HEALTHCARE CADILLAC FOUNDATI 1105 SIXTH ST TRAVERSE CITY MI 49684 472857600 RAISE FUND MI C3 7 MHC CADILL MUNSON HEALTHCARE CADILLAC true MUNSON MEDICAL BUILDING PARTNERS PO BOX 1188 TRAVERSE CITY MI 496851188 382830005 REAL ESTAT MI N/A false false NORTHERN MICHIGAN SUPPLY ALLIANCE 2651 AERO PARK DR TRAVERSE CITY MI 49686 383453378 SUPPLY PUR MI MUNSON HEA MUNSON HEALTHCARE RELATED 17320 2465006 false true MUNSON SUPPORT SERVICES PO BOX 1188 TRAVERSE CITY MI 496851188 382872821 LAUNDRY MI N/A true MEDICAL OFFICE BUILDING CONDOMINIUM MEDICAL OFFICE BUILDING CONDOMINIUM PO BOX 1188 TRAVERSE CITY MI 496851188 383567278 REAL ESTAT MI N/A true MUNSON SERVICES INC PO BOX 1188 TRAVERSE CITY MI 496851188 383144382 PHARMACY MI N/A true SIXTH STREET DRUGS INC PO BOX 1188 TRAVERSE CITY MI 496851188 382298290 PHARMACY MI N/A true MEDICAL OFFICE CONDOMINIUM MEDICAL OFFICE CONDOMINIUM PO BOX 1188 TRAVERSE CITY MI 496851188 201902620 REAL ESTAT MI N/A true MUNSON MOBILE IMAGING PO BOX 1188 TRAVERSE CITY MI 496851188 382704069 IMAGING MI N/A true false true true true false false false false false false false true true false true true true false false MUNSON DIALYSIS CENTER C 500000 ACTUAL AMOUNT PAID MUNSON DIALYSIS CENTER L 74688 ACTUAL AMOUNT PAID MUNSON HEALTHCARE CADILLAC B 9048811 ACTUAL AMOUNT PAID MUNSON HEALTHCARE CADILLAC O 125459 ACTUAL AMOUNT PAID MUNSON HEALTHCARE CADILLAC Q 18460147 ACTUAL AMOUNT PAID MUNSON HEALTHCARE CADILLAC D 9300000 ACTUAL AMOUNT PAID MUNSON HEALTHCARE GRAYLING B 6973349 ACTUAL AMOUNT PAID MUNSON HEALTHCARE GRAYLING P 779485 ACTUAL AMOUNT PAID MUNSON HEALTHCARE GRAYLING D 12470000 ACTUAL AMOUNT PAID MUNSON HEALTHCARE REGIONAL FOUNDATI FOUNDATION L 53016 ACTUAL AMOUNT PAID MUNSON HEALTHCARE REGIONAL FOUNDATI FOUNDATION M 557054 ACTUAL AMOUNT PAID MUNSON HEALTHCARE REGIONAL FOUNDATI FOUNDATION O 255625 ACTUAL AMOUNT PAID MUNSON HEALTHCARE REGIONAL FOUNDATI P 274654 ACTUAL AMOUNT PAID MUNSON HEALTHCARE REGIONAL FOUNDATI Q 850320 ACTUAL AMOUNT PAID MUNSON HOME CARE L 101152 ACTUAL AMOUNT PAID MUNSON HOME CARE O 157576 ACTUAL AMOUNT PAID MUNSON HOME HEALTH L 50576 ACTUAL AMOUNT PAID MUNSON HOME HEALTH O 78788 ACTUAL AMOUNT PAID MUNSON MEDICAL CENTER C 20671710 ACTUAL AMOUNT PAID MUNSON MEDICAL CENTER L 1672476 ACTUAL AMOUNT PAID MUNSON MEDICAL CENTER O 1929684 ACTUAL AMOUNT PAID MUNSON MEDICAL CENTER P 5714689 ACTUAL AMOUNT PAID MUNSON MEDICAL CENTER Q 1721211 ACTUAL AMOUNT PAID MUNSON MEDICAL GROUP L 90000 ACTUAL AMOUNT PAID MUNSON MEDICAL GROUP Q 111274 ACTUAL AMOUNT PAID MUNSON MOBILE IMAGING C 300000 ACTUAL AMOUNT PAID MUNSON MOBILE IMAGING P 66108 ACTUAL AMOUNT PAID MUNSON MOBILE IMAGING Q 80600 ACTUAL AMOUNT PAID MUNSON SERVICES INC L 87660 ACTUAL AMOUNT PAID MUNSON SERVICES INC O 60672 ACTUAL AMOUNT PAID MUNSON SERVICES INC Q 67214 ACTUAL AMOUNT PAID MUNSON SUPPORT SERVICES O 122388 ACTUAL AMOUNT PAID MUNSON SUPPORT SERVICES P 526989 ACTUAL AMOUNT PAID MUNSON SUPPORT SERVICES Q 543108 ACTUAL AMOUNT PAID NORTH FLIGHT INC B 500000 ACTUAL AMOUNT PAID NORTH FLIGHT INC L 83160 ACTUAL AMOUNT PAID NORTH FLIGHT INC Q 69338 ACTUAL AMOUNT PAID NORTHERN MICHIGAN SUPPLY ALLIANCE L 132744 ACTUAL AMOUNT PAID NORTHERN MICHIGAN SUPPLY ALLIANCE O 137688 ACTUAL AMOUNT PAID NORTHERN MICHIGAN SUPPLY ALLIANCE P 291668 ACTUAL AMOUNT PAID NORTHERN MICHIGAN SUPPLY ALLIANCE Q 300451 ACTUAL AMOUNT PAID PAUL OLIVER MEMORIAL HOSPITAL C 1000000 ACTUAL AMOUNT PAID PAUL OLIVER MEMORIAL HOSPITAL L 179616 ACTUAL AMOUNT PAID PAUL OLIVER MEMORIAL HOSPITAL O 203232 ACTUAL AMOUNT PAID PAUL OLIVER MEMORIAL HOSPITAL Q 116092 ACTUAL AMOUNT PAID SIXTH STREET DRUGS Q 64148 ACTUAL AMOUNT PAID SCHEDULE R MUNSON HEALTHCARE USED THE ACCRUAL METHOD OF ACCOUNTING TO VALUE THE TRANSACTIONS WITH RELATED ENTITIES. ALL INTERCOMPANY TRANSACTIONS WITH RELATED ENTITIES WERE REVIEWED, SUMMARIZED, AND RECONCILED TO DETERMINE THE DISCLOSURE AMOUNTS.