2014-05-07T11:00:04-05:00 2013-06-30 350921680 CROWE HORWATH LLP 70 WEST MADISON STREET SUITE 700 CHICAGO IL 606024903 990 2012-07-01 381359517 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION NEWA 6167747322 212 South Sullivan Fremont MI 49412 DEIDRE L WELLER 2014-05-07 true Geralyn R Hurd P00933422 3128997000 2012 2015-11-30 17:44:51Z SPECTRUM HEALTH GERBER MEMORIAL RANDALL STASIK CEO 212 South Sullivan Fremont MI 49412 72799767 false X WWW.SPECTRUMHEALTH.ORG/GERBER X 1918 MI OUR MISSION IS TO PROVIDE COMPETENT AND COMPASSIONATE COMMUNITY HEALTH CARE. OUR MOST SIGNIFICANT ACTIVITIES INCLUDE PROVIDING HOSPITAL, HOMECARE, WELLNESS, AND PHYSICIAN HEALTHCARE SERVICES. 12 8 668 215 174097 -9641 266308 157290 72023821 70221816 -55907 1499351 -8181 666814 72226041 72545271 0 0 0 0 35629847 32299336 0 0 0 34872887 36991221 70502734 69290557 1723307 3254714 60922382 61356704 34724075 30788136 26198307 30568568 TO IMPROVE THE HEALTH OF THE COMMUNITIES IN WHICH WE SERVE false false 48119500 60465175 SPECTRUM HEALTH GERBER MEMORIAL (SHGM) IS A 49-BED COMMUNITY HOSPITAL THAT OFFERS A COMPLETE RANGE OF MEDICAL AND SURGICAL SERVICES. SHGM HAS PROVIDED OVER 115,000 OP ANCILLARY VISITS AS WELL AS OVER 6,000 ADULT ACUTE AND OVER 700 NEWBORN PATIENT DAYS TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. THE EMERGENCY DEPARTMENT OPERATES AS A LEVEL III TRAUMA CENTER OPEN 24 HOURS A DAY WHERE QUALITY CARE IS PROVIDED TO PATIENTS OF ALL AGES WHO REQUIRE EMERGENCY SERVICES. A NUMBER OF QUALITY AWARDS HAVE RECOGNIZED SHGM FOR THE QUALITY OF CARE IT PROVIDES AND FOR PATIENT SATISFACTION. SEE BELOW FOR THE ADDITIONAL SUPPORT SERVICES OFFERED BY SHGM. 5628412 5259698 PHYSICIAN PRACTICES/RURAL HEALTH CLINICS: SEVERAL PHYSICIAN OFFICES PROVIDED OVER 35,000 OFFICE VISITS. SPECTRUM HEALTH GERBER MEMORIAL OPERATES THREE FAMILY PRACTICE OFFICES IN HESPERIA AND GRANT AS WELL AS INTERNAL MEDICINE AND PEDIATRICS IN FREMONT. AN OBSTETRICAL CLINIC IS ALSO LOCATED IN FREMONT. 3163138 3288861 HOME HEALTH CARE, THE GERBER HOME CARE DEPARTMENT OF THE HOSPITAL, PROVIDED OVER 19,000 SKILLED NURSING, PHYSICAL THERAPY, OCCUPATIONAL THERAPY, SOCIAL WORK, AND HOME HEALTH AIDE VISITS AND IS THE FOURTH-LARGEST PROVIDER OF HOME HEALTH CARE IN WEST MICHIGAN. 1418595 1680709 WELLNESS PROGRAMMING AND COMMUNITY EDUCATION, AVAILABLE TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. 1418595 1680709 58329645 true true false false false false false false false true false false false true false false true false false false false false false false false true true false false true true false false false false false false false false true true false false false false false true false false true false true 93 0 true 668 true true true false false false false true true false false false false X 12 8 false false false false true true true true true false false true true true true true true true true false X Deidre L Weller VP Finance 2319241347 212 South Sullivan Fremont MI 49412 X DAVE ROBINSON 2.00 0 X X 0 0 0 JANE DRAKE 2.00 0 X X 0 0 0 RANDY STASIK 50.00 0 X X 350699 0 115542 STEPHEN WELSH MD 2.00 0 X X 0 0 0 TODD BLAKE 2.00 0 X X 0 0 0 BRENT BECKMAN MD 2.00 0 X 0 0 0 DON HENRY 2.00 2.00 X 0 18000 0 GENE FORD 2.00 0 X 0 0 0 JOHN BUCKLEY 2.00 0 X 0 0 0 KEVIN GERTH MD 2.00 0 X 0 0 0 LAUREL BREUKER 2.00 0 X 0 0 0 MARC CHIRCOP 2.00 48.00 X 0 678791 186859 MARK BYLAND MD 50.00 0 X 201612 0 20334 MATTHEW VAN VRANKEN 2.00 48.00 X 0 1446912 379738 TRAVIS BULL 2.00 0 X 0 0 0 DEIDRE WELLER 50.00 0 X 0 0 0 JOHN SELLA 50.00 0 X 163041 0 25400 KEVIN CAWLEY 50.00 0 X 0 0 0 JAMES PATENGE 50.00 0 X 300842 0 24699 LINDSAY OLIVEIRA 50.00 0 X 211651 0 20889 MELISSA BAYNE 50.00 0 X 295540 0 24651 ROBERT GUNNELL 50.00 0 X 232707 0 25695 TAMI MICHELE 50.00 0 X 288504 0 25193 2044595 2143704 849000 23 false true false ANESTHESIA STAFFING CONSULT 30200 TELEGRAPH ROAD SUITE 220 BINGHAM FARMS MI 48025 MEDICAL SERVICES 656811 RTS CONSTRUCTION GROUP LLC 4534 S COMSTOCK AVE FREMONT MI 49412 CONSTRUCTION SERVICES 335526 STARR INPATIENT MEDICAL 335 BRIDGE STREET NW STE 2704 GRAND RAPIDS MI 49504 STAFFING 236100 PINE MEDICAL GROUP PC 230 WEST OAK STREET FREMONT MI 49412 MEDICAL SERVICES 223500 AMERICAN HEALTHCARE SERVICE 1000 JOHN R STE 250 TROY MI 48083 STAFFING 182762 13 24081 133209 157290 NET PATIENT SERVICE REVENUE 622110 68536104 68536104 TAMARAC WELLNESS PROGRAMS 900099 1555761 1381664 174097 MEDICAL RECORD FEES 900099 33393 33393 0 0 96558 96558 0 0 70221816 1499001 1499001 0 0 472277 472277 0 472277 472277 254846 254496 0 350 350 350 0 0 0 CAFETERIA 722212 194537 194537 0 0 0 0 0 0 194537 72545271 70486953 174097 1726931 0 0 0 0 876628 695589 181039 130379 103453 26926 24537819 19470317 5067502 1041744 826605 215139 3607778 2862707 745071 2104988 1670270 434718 0 84169 84169 0 0 0 0 5542749 5005628 537121 0 455927 455927 3704370 3182841 521529 188764 167967 20797 0 2441988 1953590 488398 245178 199708 45470 0 29928 26937 2991 902765 902765 0 2884225 2307380 576845 443075 354460 88615 BAD DEBTS 5454960 5454960 MEDICAID QUALITY ASSESSMENT TAX 41122 41122 MEDICAL SUPPLIES 6487890 6259954 227936 SHARED SERVICES 7680381 6144305 1536076 403730 243160 160570 0 69290557 58329645 10960912 0 0 9464095 5034594 50000 6405191 8879990 0 0 1315429 1583077 405439 772725 39643232 9429869 30074945 30213363 11117519 12271154 0 0 85000 85000 2004764 2516801 60922382 61356704 6895492 5406558 128336 110490 17471451 17471452 0 10228796 7799636 34724075 30788136 X 25019697 29145776 1153477 1397659 25133 25133 26198307 30568568 60922382 61356704 X 3254714 961454 154093 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2025861 2025861 26481543 5063141 21418402 15898 2385 13513 10751135 4349391 6401744 368795 14952 353843 30213363 0 FAIR VALUE OF SWAP AGREEMENT 2594035 THIRD PARTY SETTLEMENTS 4326432 DUE TO AFFILIATES 879169 7799636 FIN 48 (ASC 740) FOOTNOTE SCHEDULE D, PART X, LINE 2 SPECTRUM HEALTH SYSTEM CONDUCTS AN ANALYSIS ANNUALLY TO DETERMINE THE ORGANIZATION'S LIABILITY WITH RESPECT TO UNCERTAIN TAX POSITIONS. FOR THE YEAR ENDED JUNE 30, 2013 IT WAS DETERMINED THAT THERE WERE NO MATERIAL UNCERTAIN TAX POSITIONS TO DISCLOSE. AS SUCH, THERE WAS NO FOOTNOTE ADDED TO THE CONSOLIDATED AUDITED FINANCIAL STATEMENTS. true true X true X false true true true false true true 1444726 1444726 0.02260 13194418 9547840 3646578 0.05720 0 0.00000 0 0 14639144 9547840 5091304 0.07980 71110 71110 0.00110 27518 27518 0.00040 0 0.00000 0 0.00000 3480 3480 0.00010 0 0 102108 0 102108 0.00160 0 0 14741252 9547840 5193412 0.08140 0 0.00000 0 0.00000 1982 1982 0.00000 0 0.00000 0 0.00000 8638 8638 0.00010 3214 3214 0.00000 0 0.00000 0 0.00000 0 0 13834 0 13834 0.00020 true 5454960 0 20442080 24307629 -3865549 X true false 1 1 SPECTRUM HEALTH GERBER MEMORIAL

212 S SULLIVAN ST FREMONT MI 49412

WWW.SPECTRUMHEALTH.ORG/GERBER X X X SPECTRUM HEALTH GERBER MEMORIAL 1 true X X X X X X X X X 11 true false true X X X X X X X X X X true false true true 200 false true X true true X X X true false X X X X true X false false Eligibility criteria for free or discounted care Schedule H, Part I, Line 3c THE ORGANIZATION USES FPG TO DETERMINE ELIGIBILITY FOR FREE CARE. AN EVALUATION IS NOT USED FOR DISCOUNTED CARE, AS APPLICANTS THAT QUALIFY FOR ANY ASSISTANCE RECEIVE FREE CARE. Community benefit report prepared by related organization Schedule H, Part I, Line 6a SPECTRUM HEALTH SYSTEM (EIN 38-3382353) RELATED ORGANIZATION INFORMATION SCHEDULE H, PART I, LINE 6A THE HEALTH SYSTEM PUBLISHES A CONSOLIDATED COMMUNITY BENEFIT REPORT ON ITS WEBSITE AT WWW.SPECTRUMHEALTH.ORG (CLICK THE LINK TITLED "ABOUT US"). IN ADDITION, THE HEALTH SYSTEM HOLDS AN ANNUAL MEETING TO THE PUBLIC TO DISCUSS ITS COMMUNITY COMMITMENTS. Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7 THE ORGANIZATION CALCULATES AN OVERALL COST-TO-CHARGE RATIO DERIVED BY USING THE IRS WORKSHEET 2 FORMAT, RATIO OF PATIENT CARE COST-TO-CHARGES. ALL PATIENT SEGMENTS AND PAYERS ARE USED IN THE CALCULATION. Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f) 5,454,960 Community Building Activities Schedule H, Part II THE ORGANIZATION WORKS TO ADDRESS MANY OF THE COMMUNITY'S PRESSING HEALTH ISSUES BY PROMOTING AND ADVOCATING FOR OVERALL COMMUNITY HEALTH IMPROVEMENT. COMMUNITY BUILDING ACTIVITIES INCLUDE: 1. PROVIDING PHYSICAL IMPROVEMENTS AND ECONOMIC DEVELOPMENT; 2. PROVIDING LEADERSHIP DEVELOPMENT AND TRAINING FOR COMMUNITY MEMBERS AND PARTNERS; 3. RAISING AWARENESS THROUGH CONDUCTING ASSESSMENTS, PROVIDING EDUCATION AND ASSISTING IN DISEASE MANAGEMENT; 4. OFFERING PRESENTATIONS AND DEMONSTRATIONS TO MEMBERS OF THE COMMUNITY AND THROUGHOUT THE LOCAL SCHOOLS. Bad debt expense - methodology used to estimate amount Schedule H, Part III, Line 2 THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON ACCOUNTS RECEIVABLE, PAYOR COMPOSITION AND AGING, AND HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY AND OTHER FACTORS. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTED ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. FOR THIRD-PARTY PAYERS, THE PROVISION IS DETERMINED BY ANALYZING CONTRACTUALLY DUE AMOUNTS FROM PAYERS WHO ARE KNOWN TO BE HAVING FINANCIAL DIFFICULTIES. FOR SELF-PAY PATIENTS, THE PROVISION IS BASED ON AN ANALYSIS OF PAST EXPERIENCE RELATED TO PATIENTS UNWILLING TO PAY STANDARD RATES CHARGED. THE DIFFERENCE BETWEEN THAT STANDARD RATE CHARGED (LESS THE NEGOTIATE DISCOUNTED RATE) AND THE AMOUNT ACTUALLY COLLECTED AFTER THE REASONABLE COLLECTION EFFORTS HAVE BEEN EXHAUSTED IS CHARGED OFF AGAINST THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. ALL CHARGES ARE REPORTED AT GROSS, WHICH IS CONSISTENT WITH THE REPORTING METHODOLOGY USED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. Bad debt expense - methodology used to estimate amount as community benefit Schedule H, Part III, Line 3 THE ORGANIZATION IS UNABLE TO ESTIMATE ACCURATELY THE AMOUNT OF BAD DEBT EXPENSE ATTRIBUTABLE TO PATIENTS ELIGIBLE FOR FREE OR DISCOUNTED SERVICES UNDER THE FINANCIAL ASSISTANCE POLICY. ALTHOUGH A PORTION OF BAD DEBT EXPENSES MAY RELATE TO PATIENTS WHO WOULD QUALIFY FOR CHARITY CARE, A REPORTABLE FIGURE CANNOT BE REASONABLY ESTIMATED. THE ORGANIZATION HAS IMPLEMENTED A "PROPENSITY TO PAY" EVALUATION TOOL THAT PROACTIVELY ASSESSES ONE'S ABILITY AND LIKELIHOOD TO PAY. WITH THIS TOOL, THE ORGANIZATION HAS BEEN ABLE TO PROVIDE A HIGHER DEGREE OF FOCUSED FINANCIAL COUNSELING EFFORTS, RESULTING IN A SUBSTANTIAL REDUCTION OF BAD DEBT AND HIGHER RATE OF IDENTIFICATION OF CHARITY ACCOUNTS. Bad debt expense - financial statement footnote Schedule H, Part III, Line 4 THE NET PATIENT SERVICE REVENUE, PATIENT ACCOUNTS RECEIVABLE, AND ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS FOOTNOTE IS ON PAGES 14 TO 16 OF THE ORGANIZATIONS CONSOLIDATED FINANCIAL STATEMENT. Community benefit & methodology for determining medicare costs Schedule H, Part III, Line 8 THE METHODOLOGY DESCRIBED IN THE INSTRUCTIONS TO SCHEDULE H, PART III, SECTION B, LINE 6 DOES NOT TAKE INTO ACCOUNT ALL COSTS INCURRED BY THE HOSPITAL AND DOES NOT REPRESENT THE TOTAL COMMUNITY BENEFIT CONFERRED IN THIS AREA. REASONS WHY MEDICARE SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT ARE: (1) ABSENT THE MEDICARE PROGRAM, IT IS LIKELY MANY OF THE INDIVIDUALS WOULD QUALIFY FOR CHARITY CARE OR OTHER NEEDS-BASED GOVERNMENT PROGRAMS; (2) BY ACCEPTING PAYMENT BELOW COST TO TREAT THESE INDIVIDUALS, THE BURDENS OF GOVERNMENT ARE RELIEVED WITH RESPECT TO THESE INDIVIDUALS; (3) THERE IS A SIGNIFICANT POSSIBILITY THAT CONTINUED REDUCTION IN REIMBURSEMENT MAY ACTUALLY CREATE DIFFICULTIES IN ACCESS FOR THESE INDIVIDUALS; AND (4) THE AMOUNT SPENT TO COVER THE MEDICARE SHORTFALL IS MONEY NOT AVAILABLE TO COVER CHARITY CARE AND OTHER COMMUNITY BENEFIT NEEDS. IN DETERMINING MEDICARE SHORTFALLS THE ORGANIZATION USES A RATIO OF COST TO CHARGES. IN DETERMINING THE RATIO OF COST TO CHARGES THE ORGANIZATION ADJUSTS FOR BAD DEBT EXPENSES, NON-PATIENT CARE ACTIVITIES, MEDICAID PROVIDER TAXES AND COMMUNITY BENEFITS ACCOUNTED FOR, AND OR REPORTED, ELSEWHERE. THE RATIO OF COST TO CHARGES IS APPLIED TO MEDICARE CHARGES TO DETERMINE SHORTFALLS IN MEDICARE REIMBURSEMENTS. COLLECTION PRACTICES FOR PATIENTS ELIGIBLE FOR FINANCIAL ASSISTANCE SCHEDULE H, PART III, LINE 9B THE ORGANIZATION PROVIDES FREE CARE TO ALL PATIENTS THAT QUALIFY FOR FINANCIAL ASSISTANCE. PATIENTS QUALIFYING FOR FINANCIAL ASSISTANCE WILL NOT OWE ANYTHING, AND THUS WILL NOT BE SUBJECT TO COLLECTION ACTIVITIES. Community Served by Needs Assessment Schedule H, Part V Section B, Line 3 (1) SPECTRUM HEALTH GERBER MEMORIAL - DATA WAS GATHERED FROM A VARIETY OF SOURCES AND USING MULTIPLE METHODOLOGIES. RESIDENT FEEDBACK WAS OBTAINED VIA FOCUS GROUPS. THIS FEEDBACK WAS OBTAINED FROM COMMUNITY RESIDENTS. HEALTH CARE PROFESSIONALS AND OTHER COMMUNITY LEADERS, KNOWN AS KEY STAKEHOLDERS OR KEY INFORMANTS, PROVIDED INPUT VIA IN-DEPTH INTERVIEWS AND AN ONLINE SURVEY. SECONDARY DATA GATHERED FROM STATE AND NATIONAL DATABASES WAS ALSO USED TO SUPPLEMENT THE OVERALL FINDINGS. LOCAL HOSPITAL UTILIZATION DATA WAS ALSO USED. MANY EXPERTS ON PUBLIC HEALTH WERE CONSULTED AS MEMBERS OF THE CHNA TASK FORCE. ADDITIONALLY KEY STAKEHOLDERS WHO WERE INTERVIEWED ARE DEFINED AS EXECUTIVE-LEVEL COMMUNITY LEADERS HAVING EXTENSIVE KNOWLEDGE AND EXPERTISE ON PUBLIC HEALTH ISSUES AND ARE OFTEN INVOLVED IN POLICY DECISION MAKING. KEY INFORMANTS WHO PARTICIPATED IN THE ONLINE SURVEY ARE DEFINED AS COMMUNITY LEADERS HAVING EXTENSIVE KNOWLEDGE AND EXPERTISE ON PUBLIC HEALTH ISSUES OR HAVE EXPERIENCE WITH SUBPOPULATIONS IMPACTED MOST BY ISSUES IN HEALTH CARE. FOR A LISTING OF ALL INDIVIDUALS AND SOURCES CONSULTED, SEE THE NEWAYGO COUNTY CHNA.; Used FPG to determine eligibility for providing discounted care criteria Schedule H, Part V Section B, Line 11 (1) SPECTRUM HEALTH GERBER MEMORIAL - THE ORGANIZATION USES FPG TO DETERMINE ELIGIBILITY FOR FREE CARE. AN EVALUATION IS NOT USED FOR DISCOUNTED CARE, AS APPLICANTS THAT QUALIFY FOR ANY ASSISTANCE RECEIVE FREE CARE.; Other factors included in calculating amounts charges to patients Schedule H, Part V Section B, Line 12h (1) SPECTRUM HEALTH GERBER MEMORIAL - THE ORGANIZATION DOES NOT CHARGE ANY AMOUNT TO PATIENTS WHO QUALIFY FOR ASSISTANCE.; Other ways hospital publicized Financial Assistance Policy Schedule H, Part V Section B, Line 14g (1) SPECTRUM HEALTH GERBER MEMORIAL - THE ORGANIZATION PUBLICIZES THE FINANCIAL ASSISTANCE POLICY BY COMMUNICATING ITS AVAILABILITY VIA A PATIENT HANDBOOK, SIGNAGE, INFORMATIONAL BROCHURES, COMMUNITY PUBLICATIONS, AND VIA WORD OF MOUTH BY FINANCIAL COUNSELORS ASSISTING PATIENTS. REFERENCE TO THE AVAILABILITY OF THE POLICY IS PUBLICLY POSTED IN WAITING ROOMS. ; Means used to determine amounts billed Schedule H, Part V Section B, Line 20d (1) SPECTRUM HEALTH GERBER MEMORIAL - THE ORGANIZATION DOES NOT CHARGE ANY AMOUNT TO PATIENTS WHO QUALIFY FOR ASSISTANCE.; Needs assessment. Schedule H, Part VI, Line 2 THE CHNA DATA PROVIDES A LEVEL FOUNDATION ON WHICH TO PLAN, DEVELOP, AND IMPLEMENT NEW PROGRAMS AND SERVICES TO MEET THE NEEDS OF OUR COMMUNITY. OPERATIONAL SERVICES IDENTIFIED BY THE CHNA, E.G. INCREASE IN PROPORTION OF PERSONS WITH PRIMARY CARE PROVIDERS, HAVE BEEN BUILT INTO THE STRATEGIC PLAN AND BUDGET, AND A RECRUITMENT PLAN HAS BEEN CREATED BASED ON CONVERSATIONS AROUND THE COMMUNITY BENEFIT DOLLARS. THE CHNA AND IMPLEMENTATION PLAN IS LOCATED AT: HTTP://WWW.SPECTRUMHEALTH.ORG/ABOUT-SHGM-COMMUNITY-HEALTH-NEEDS-ASSESSMENT SPECTRUM HEALTH ALSO PREPARES AN ANNUAL CORPORATE SOCIAL RESPONSIBILITY REPORT THAT FOCUSES ON NINE KEY AREAS: HEALTHIER COMMUNITIES, EDUCATION, COMMUNITY ENGAGEMENT, RESEARCH, INNOVATION, EMPLOYEE ENGAGEMENT, SUSTAINABILITY, REGIONAL RELATIONSHIPS AND COMMUNITY BENEFIT. Patient education of eligibility for assistance. Schedule H, Part VI, Line 3 THE ORGANIZATION INFORMS AND EDUCATES PATIENTS AND PERSONS WHO MAY BE BILLED FOR PATIENT CARE ABOUT THEIR ELIGIBILITY FOR ASSISTANCE UNDER FEDERAL, STATE, OR LOCAL GOVERNMENT PROGRAMS OR UNDER THE ORGANIZATION'S FINANCIAL ASSISTANCE POLICY THROUGH PRODUCING INFORMATION CARDS FOR THE UNINSURED, COMMUNITY OUTREACH PROGRAMS, CONSUMER INFORMATION CLASSES, ORGANIZATION WEBSITE, PERSONAL FINANCIAL COUNSELING, AND BY PROVIDING ASSISTANCE IN THE ACTUAL ENROLLMENT OF SUCH PROGRAMS. THE ORGANIZATION HAS A DEPARTMENT OF FINANCIAL COUNSELORS WHO WORK WITH PATIENTS THAT EXPRESS ANY LEVEL OF CONCERN WITH PAYING THEIR BILL. IN ADDITION, THE ORGANIZATION ALSO PROACTIVELY IDENTIFIES PATIENTS WHO HAVE QUALIFYING FACTORS FOR GOVERNMENTAL ASSISTANCE AND PARTNERS WITH ORGANIZATIONS THAT SPECIALIZE IN THE QUALIFICATION PROCESS. IF THE NEED FOR ASSISTANCE IS NOT IDENTIFIED PRIOR TO BILLING, PATIENT CONCERNS THAT ARE RECEIVED AS A RESULT OF RECEIVING A BILL ARE ADDRESSED BY FINANCIAL COUNSELORS AT THAT TIME. THE ORGANIZATION WIDELY PUBLICIZES COMMUNICATIONS TO PATIENTS AND THE PUBLIC ON THE AVAILABILITY OF FINANCIAL ASSISTANCE. THIS IS ACHIEVED THROUGH VARIOUS METHODS INCLUDING, BUT NOT LIMITED TO, VIA THE SPECTRUM HEALTH PATIENT HANDBOOK, VARIOUS INFORMATIONAL BROCHURES, SIGNAGE IN EACH HOSPITAL DEPARTMENT, ADMISSIONS OFFICES AND OTHER PUBLIC LOCATIONS, UPON REQUEST BY ANY PATIENT, GUARANTOR OR COMMUNITY MEMBER, WORD OF MOUTH VIA FINANCIAL COUNSELORS AND OTHERS, AND THROUGH COMMUNITY PUBLICATIONS AND OUTREACH EVENTS. IN ADDITION, THE ORGANIZATION LISTS OPTIONS FOR THE UNINSURED AND UNDERINSURED ON THEIR WEBSITE, ALONG WITH A COPY OF THE FINANCIAL ASSISTANCE ELIGIBILITY POLICY (SEARCH "FINANCIAL ASSISTANCE" AT WWW.SPECTRUMHEALTH.ORG). Community information. Schedule H, Part VI, Line 4 THE ORGANIZATION HAS IDENTIFIED A PRIMARY SERVICE AREA OF SEVERAL COUNTIES INCLUDING NEWAYGO COUNTY, EASTERN OCEANA COUNTY AND EASTERN MUSKEGON COUNTY AS PRIMARY AND NORTHERN KENT COUNTY AND SOUTHERN LAKE COUNTY AS SECONDARY. FOR SPECIFIC POPULATION STATISTICS SEE THE COMMUNITY HEALTH NEEDS ASSESSMENT ACCESSIBLE AT HTTP://WWW.SPECTRUMHEALTH.ORG/ABOUT-SHGM-COMMUNITY-HEALTH-NEEDS-ASSESSMENT. Promotion of community health Schedule H, Part VI, Line 5 SPECTRUM HEALTH GERBER MEMORIAL'S BOARD OF DIRECTORS IS COMPOSED OF MEMBERS OF WHICH SUBSTANTIALLY ALL ARE INDEPENDENT COMMUNITY MEMBERS. A MAJORITY OF THE BOARD RESIDES IN SPECTRUM HEALTH GERBER MEMORIAL'S PRIMARY SERVICE AREA. SPECTRUM HEALTH GERBER MEMORIAL ALSO EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY. SPECTRUM HEALTH GERBER MEMORIAL INVESTS NET EARNINGS IN IMPROVING PATIENT CARE, BUILDING AND RENOVATING FACILITIES, PURCHASING NEW TECHNOLOGY, PROVIDING HEALTH EDUCATION AND FUNDING COMMUNITY PROGRAMS. PEOPLE THROUGHOUT THE COMMUNITY CAN COUNT ON SPECTRUM HEALTH GERBER MEMORIAL TO BE STANDING BY WITH EMERGENCY CARE 24 HOURS A DAY, 365 DAYS A YEAR. THE EMERGENCY DEPARTMENT IS STAFFED WITH BOARD-CERTIFIED EMERGENCY CARE PHYSICIANS AND A NURSING STAFF THAT IS TRAINED AND EXPERIENCED IN EMERGENCY CARE. FURTHERMORE, NO PATIENT IS DENIED TREATMENT, REGARDLESS OF THEIR ABILITY TO PAY. Affiliated health care system Schedule H, Part VI, Line 6 SPECTRUM HEALTH IS AN INTEGRATED NOT-FOR-PROFIT HEALTH SYSTEM IN WEST MICHIGAN OFFERING A FULL CONTINUUM OF CARE THROUGH THE SPECTRUM HEALTH HOSPITAL GROUP, WHICH IS COMPRISED OF NINE HOSPITALS INCLUDING HELEN DEVOS CHILDREN'S HOSPITAL, A STATE OF THE ART CHILDREN'S HOSPITAL THAT OPENED IN JANUARY 2011, AND 183 SERVICE SITES; THE SPECTRUM HEALTH MEDICAL GROUP AND WEST MICHIGAN HEART, PHYSICIAN GROUPS TOTALING MORE THAN 700 PROVIDERS; AND PRIORITY HEALTH, A HEALTH PLAN WITH 600,000 MEMBERS. SPECTRUM HEALTH IS WEST MICHIGAN'S LARGEST EMPLOYER WITH 19,000 EMPLOYEES. THE ORGANIZATION PROVIDED $250 MILLION IN COMMUNITY BENEFIT DURING ITS 2013 FISCAL YEAR. SPECTRUM HEALTH GERBER MEMORIAL IS A MEMBER OF THE AFFILIATED GROUP OF ENTITIES WITHIN THE SPECTRUM HEALTH SYSTEM ("SPECTRUM HEALTH"). EACH MEMBER CREATES VALUE WITHIN ITS RESPECTIVE COMMUNITY AND IS RESPONSIBLE FOR THEIR ACTIONS AND THE IMPACT THESE ACTIONS HAVE. FROM ITS INCEPTION, SPECTRUM HEALTH HAS BEEN A FAITHFUL STEWARD OF ITS COMMUNITY ASSETS. AS A WEST MICHIGAN-BASED NOT-FOR-PROFIT HEALTH SYSTEM, THE ORGANIZATION INVESTS ITS NET EARNINGS TO IMPROVE PATIENT CARE, BUILD AND RENOVATE FACILITIES, PURCHASE NEW TECHNOLOGY, PROVIDE HEALTH EDUCATION AND FUND LOCAL COMMUNITY PROGRAMS. OVER THE YEARS, OUR MISSION HAS REMAINED THE SAME-TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. WE TAKE OUR MISSION SERIOUSLY. IT IS CENTRAL TO OUR STRATEGIC DISCUSSIONS AND GUIDES OUR INVESTMENTS AND THE ALLOCATION OF OUR RESOURCES. SPECTRUM HEALTH IS COMMITTED TO PROVIDING VALUE TO THE PEOPLE WE SERVE. "VALUE" MEANS ACCESS TO HIGH-QUALITY HEALTH CARE AT AFFORDABLE COSTS, AS WELL AS ACCESS TO THE FULL CONTINUUM OF HEALTH CARE SERVICES, FROM HEALTH INSURANCE TO OUTPATIENT CARE TO INPATIENT AND HOME CARE, AND EVERYTHING IN BETWEEN. SPECTRUM HEALTH HAS HUNDREDS OF PROGRAMS THAT SUPPORT ITS MISSION "TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE." THESE PROGRAMS ARE BROUGHT TOGETHER UNDER NINE KEY AREAS: HEALTHIER COMMUNITIES, EDUCATION, COMMUNITY ENGAGEMENT, RESEARCH, INNOVATION, EMPLOYEE ENGAGEMENT, SUSTAINABILITY, REGIONAL RELATIONSHIPS AND COMMUNITY BENEFIT. STATE FILING OF COMMUNITY BENEFIT REPORT SCHEDULE H, PART VI, LINE 7 THE ORGANIZATION IS NOT REQUIRED TO FILE A COMMUNITY BENEFIT REPORT WITH THE STATE HOWEVER THE ORGANIZATION VOLUNTARILY REPORTS COMMUNITY BENEFIT INFORMATION TO THE MICHIGAN HEALTH AND HOSPITAL ASSOCIATION AND IN AN ANNUAL MEETING TO THE COMMUNITY. THE COMMUNITY BENEFIT REPORT IS ALSO AVAILABLE ON THE ORGANIZATION'S WEBSITE. X true true X X X X X false true false false false false false false false JAMES PATENGE 289042 0 11005 0 794 0 11302 0 13397 0 325540 0 0 0 JOHN SELLA 146027 0 15755 0 1260 0 8219 0 17181 0 188441 0 0 0 LINDSAY OLIVEIRA 178116 0 0 0 33535 0 5291 0 15598 0 232540 0 0 0 MARC CHIRCOP 0 375829 0 284273 0 18690 0 126548 0 60311 0 865650 0 173508 MARK BYLAND MD 186260 0 0 0 15352 0 5525 0 14809 0 221946 0 0 0 MATTHEW VAN VRANKEN 0 845611 0 542443 0 58858 0 270019 0 109719 0 1826651 0 322225 MELISSA BAYNE 257343 0 13819 0 24378 0 7996 0 16655 0 320191 0 0 0 RANDY STASIK 236644 0 108997 0 5058 0 71435 0 44107 0 466241 0 74025 0 ROBERT GUNNELL 229554 0 0 0 3154 0 11847 0 13848 0 258402 0 0 0 TAMI MICHELE 266115 0 0 0 22388 0 10823 0 14370 0 313697 0 0 0 Health or social club dues or initiation fees Schedule J, Part I, Line 1a THE ORGANIZATION PROVIDED HEALTH CLUB DUES FOR ONE EXECUTIVE EMPLOYEE (PRESIDENT). THE RELATED AMOUNTS WERE TREATED AS TAXABLE COMPENSATION AND INCLUDED IN FORM W-2. Arrangement used to establish the top management official's compensation Schedule J, Part I, Line 3 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 GERBER MEMORIAL. 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 AND, FOR FY 2013 (7/1/12-6/30/13), WAS BASED ON THE FOLLOWING INDEPENDENT SURVEYS OF HEALTH CARE EXECUTIVES AT COMPARABLE HEALTH SYSTEMS, HEALTH PLANS, AND MEDICAL GROUPS: * AMERICAN MEDICAL GROUP ASSOCIATION: 2012 MEDICAL GROUP COMPENSATION & FINANCIAL SURVEY * INTEGRATED HEALTHCARE STRATEGIES: 2012 HEALTH CARE EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2012 EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2012 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY * MEDICAL GROUP MANAGEMENT ASSOCIATION: 2012 MANAGEMENT COMPENSATION SURVEY * SULLIVAN, COTTER AND ASSOCIATES: 2012 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS * SULLIVAN, COTTER AND ASSOCIATES: 2012 PHYSICIAN COMPENSATION AND PRODUCTIVITY SURVEY REPORT * TOWERS WATSON: 2012/2013 HOSPITAL AND HEALTHCARE MANAGEMENT COMPENSATION REPORT * TOWERS WATSON: 2012/2013 TOP MANAGEMENT COMPENSATION REPORT * WARREN: 2012 COMPENSATION SURVEY 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 HEALTHCARE ORGANIZATIONS. SPECTRUM HEALTH RECRUITS NATIONALLY FOR ITS EXECUTIVES. BENEFITS DATA REFLECT NATIONAL HEALTHCARE 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). Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b $173,508 MARC CHIRCOP $ 74,025 RANDY STASIK $322,225 MATTHEW VAN VRANKEN SCHEDULE J, PART I, LINE 4B IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, DO "PARTICIPATE IN" A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. SOME INDIVIDUALS RECEIVED DISTRIBUTIONS DURING THE YEAR (AS REPORTED ON THIS LINE) WHEREAS OTHERS PARTICIPATED IN THE PLAN BUT DID NOT RECEIVE DISTRIBUTIONS. DISTRIBUTIONS REPORTED ON THIS LINE ARE ALSO INCLUDED IN SCHEDULE J, PART II, COLUMN F AS COMPENSATION REPORTED IN A PRIOR YEAR. A CITY OF FREMONT HOSPITAL FINANCE AUTHORITY 383468654 35733OAC3 2007-03-07 10800000 CAPITAL FUNDING false false false B MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 382889417 59465E7F4 2004-09-22 10000000 CAPITAL FUNDING false false true A 2675000 0 10800000 0 0 0 190750 0 0 10609250 0 0 2007 false false true true B 1538548 0 2700000 0 0 0 32486 0 0 2667514 0 0 2005 false false true true A false false true true false false 0.0000 0.0000 0.0000 false false 0.0000 false true B false false true true false false 0.0000 0.0000 0.0000 false false 0.0000 false true A false false false true true false 0 false false false 0 false false true B false false false true true false 0 false false false 0 false false true A true B true TAX EXEMPT BONDS SCHEDULE K, PART I THE MICHIGAN HEALTH & HOSPITAL ASSOCIATION SERVICE CORPORATION AND THE MICHIGAN STATE HOSPITAL FINANCE AUTHORITY OFFER THE HEALTHCARE LOAN PROGRAM (HELP). HELP IS A POOLED, TAX-EXEMPT FINANCING PROGRAM THAT INVOLVES A NUMBER OF HEALTH CARE ORGANIZATIONS PARTICIPATING IN A SINGLE PUBLIC FINANCING AND SHARING IN THE PROCEEDS AND COSTS ASSOCIATED WITH THAT FINANCING. THE PROGRAM TAKES ADVANTAGE OF ECONOMIES OF SCALE THROUGH GROUP PARTICIPATION, ALLOWING EACH BORROWER TO ACCESS LOW COST FINANCING WITHOUT INDIVIDUALLY INCURRING ALL OF THE TRANSACTION COSTS ASSOCIATED WITH PUBLIC FINANCING. THE ISSUE PRICE OF THE HELP LOANS, IN PART I OF SCHEDULE K, REPRESENTS THE ENTIRE AMOUNT OF THE ISSUE AND IS NOT REFLECTIVE OF THE ORGANIZATION'S PORTION OF THE LOAN. THE AMOUNTS REPORTED ON LINE 1(E) REPRESENT THE ENTIRE BOND ISSUE, WHILE THE AMOUNTS IN PART II RELATE TO THE PORTION OF THE BONDS ALLOCATED TO NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION. ISSUER NAME: Michigan State Hospital Finance Authority: No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON SEPTEMBER 22, 2004. PINE MEDICAL GROUP BUSINESS RELATIONSHIP 223500 SEE SCH L, PART V-SERVICES false PINE MEDICAL GROUP BUSINESS RELATIONSHIP 323542 SEE SCH L, PART V-RENTAL false MRS DEBRA SELLA FAMILY 72390 SEE SCH L, PART V false MRS MARY HENRY FAMILY 57989 SEE SCH L, PART V false EMERGENCY CARE SPECIALISTS BUSINESS RELATIONSHIP 130081 SEE SCH L, PART V false FAMILY RELATIONSHIPS SCHEDULE L, PART V MR. SELLA, AN OFFICER OF THE ORGANIZATION, HAS A SPOUSE THAT IS EMPLOYED BY THE ORGANIZATION. (PART IV, LINES 4) MR. HENRY, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, HAS A SPOUSE THAT WORKS FOR THE ORGANIZATION. (PART IV, LINE 5) BUSINESS TRANSACTIONS WITH INTERESTED PERSONS SCHEDULE L, PART V DR. WELSH, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. THE ORGANIZATION ALSO LEASES RENTAL SPACE TO THE SAME TAXABLE ENTITY. (PART IV, LINES 1-2) DR BECKMAN, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, HAS OWNERSHIP IN A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 3) Classes of members or stockholders Form 990, Part VI, Section A, Line 6 THE MEMBERSHIP OF THE CORPORATION CONSISTS OF ONE CLASS, AND THE ONLY MEMBER OF THE CORPORATION SHALL BE SPECTRUM HEALTH SYSTEM ("SYSTEM") (EIN 38-3382353), A MICHIGAN NONPROFIT CORPORATION. Members or stockholders electing members of governing body Form 990, Part VI, Section A, Line 7a THE SOLE MEMBER OF THE ORGANIZATION (SEE FORM 990, PART VI, LINE 6) APPOINTS ALL MEMBERS OF THE ORGANIZATION'S BOARD OF DIRECTORS. Decisions requiring approval by members or stockholders Form 990, Part VI, Section A, Line 7b THE SOLE MEMBER OF THE ORGANIZATION (SEE FORM 990, PART VI, LINE 6) HAS RETAINED CERTAIN RESERVED POWERS IN THE ORGANIZATION EXCLUSIVELY, WHICH SHALL NOT BE DEEMED AUTHORIZED UNLESS AND UNTIL APPROVED BY THE SOLE MEMBER OF ORGANIZATION: - ELECTION AND/OR REMOVAL OF THE MEMBERS OF THE ORGANIZATION'S BOARD OF DIRECTORS AND THE ORGANIZATION'S CHAIR OF THE BOARD; - APPROVAL OF ALL ORGANIZATION'S (OR AN ENTITY DIRECTLY OR INDIRECTLY CONTROLLED BY THE ORGANIZATION ("SUBSIDIARY")) CAPITAL EXPENDITURES IN EXCESS OF THE AMOUNT SPECIFIED IN THE AUTHORITY MATRIX, ADOPTED BY THE SOLE MEMBER OF ORGANIZATION AND AS AMENDED BY THE SOLE MEMBER OF ORGANIZATION FROM TIME TO TIME ("AUTHORITY MATRIX AMOUNT"); - APPROVAL OF ALL BORROWING BY THE ORGANIZATION OR A SUBSIDIARY FOR CAPITAL OR OPERATING PURPOSES, AND ALL GUARANTEES OF INDEBTEDNESS, INCLUDING ANY OPERATING LEASE IN AN AMOUNT GREATER THAN ONE MILLION DOLLARS ($1,000,000) DURING THE INITIAL LEASE TERM, NOT INCLUDING RENEWALS AND/OR EXTENSIONS; - APPROVAL OF ALL LOANS IN EXCESS OF THE AUTHORITY MATRIX AMOUNT BY THE ORGANIZATION OR A SUBSIDIARY TO PERSONS OR ENTITIES OTHER THAN THE SOLE MEMBER OF ORGANIZATION OR AN ENTITY CONTROLLED BY THE SOLE MEMBER OF ORGANIZATION; - THE CREATION OF ANY ENTITY CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE ORGANIZATION; AND - THE 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. IN ADDITION TO THE RESERVED POWERS RETAINED EXCLUSIVELY BY THE SOLE MEMBER OF ORGANIZATION ABOVE, THE SOLE MEMBER OF ORGANIZATION HAS DELEGATED CERTAIN RESERVED POWERS IN ORGANIZATION REGARDING MANAGEMENT AND GOVERNANCE TO SPECTRUM HEALTH HOSPITALS D/B/A SPECTRUM HEALTH HOSPITAL GROUP ("SHHG"), THE BOARD OF WHICH OVERSEES ALL OF THE HOSPITAL OPERATIONS OF THE SOLE MEMBER OF ORGANIZATION. THE SOLE MEMBER OF ORGANIZATION ALSO RETAINS THE UNILATERAL AUTHORITY TO EXERCISE ANY OF THE RESERVED POWERS BELOW. THE ACTIONS LISTED BELOW MAY BE UNILATERALLY CAUSED AND OR TAKEN BY SHHG, WITHIN ITS SOLE AND EXCLUSIVE POWER AND DISCRETION AND SHALL NOT BE DEEMED AUTHORIZED UNLESS AND UNTIL APPROVED BY SHHG: - HIRING, DISCHARGE, AND EVALUATION OF THE ORGANIZATION'S PRESIDENT AND/OR CEO AS DELEGATED BY THE SOLE MEMBER OF ORGANIZATION'S BOARD OF DIRECTORS TO THE SOLE MEMBER OF ORGANIZATION'S CHIEF EXECUTIVE OFFICER (OR DESIGNEE) OR SHHG'S PRESIDENT; - THE ADOPTION OF THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE ORGANIZATION, AND ANY AMENDMENTS TO SUCH BUDGETS IN EXCESS OF THE AUTHORITY MATRIX AMOUNT; - THE ADOPTION OF THE ORGANIZATION'S STRATEGIC PLANS; - THE ADOPTION OF AMENDMENTS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE ORGANIZATION; - MERGER OR CONSOLIDATION OF THE ORGANIZATION OR A SUBSIDIARY, ANY OTHER CHANGE IN CONTROL, OWNERSHIP PERCENTAGES OR CAPITAL STRUCTURE OF THE ORGANIZATION OR A SUBSIDIARY; - SALE OR TRANSFER OF MORE THAN TEN PERCENT (10%) OF THE ASSETS OF THE ORGANIZATION OR A SUBSIDIARY TO ANY PERSON OR ENTITY NOT CONTROLLED BY THE SOLE MEMBER OF ORGANIZATION; - DISSOLUTION OF THE ORGANIZATION; - THE SELECTION AND RETENTION OF AUDITORS FOR THE ORGANIZATION OR A SUBSIDIARY; AND - ANY OTHER APPROVAL FOR WHICH THE SOLE MEMBER OF ORGANIZATION'S APPROVAL IS REQUIRED BY LAW. Review of form 990 by governing body Form 990, Part VI, Section B, Line 11b THE 990 IS POSTED TO THE BOARD OF DIRECTORS PORTAL FOR REVIEW AND APPROVAL FOR 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 VICE PRESIDENT OF FINANCE OR CHIEF FINANCIAL OFFICER) AND SHARED WITH THE MEMBERS OF THE BOARD OF DIRECTORS. 4. THE ORGANIZATION'S VICE PRESIDENT OF FINANCE OR 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. Conflict of interest policy Form 990, Part VI, Section B, Line 12c 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 THE ORGANIZATION'S BEST INTEREST. 4. THE BOARD OF DIRECTORS OR COMMITTEE SHALL EXERCISE DUE DILIGENCE TO DETERMINE WHETHER THE ORGANIZATION 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 THE ORGANIZATION'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO THE ORGANIZATION, 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 THE ORGANIZATION'S COMMITTEES SHALL SET FORTH: A)THE NAMES OF THE PERSONS WHO DISCLOSED A FINANCIAL INTEREST IN A PROPOSED TRANSACTION OR ARRANGEMENT INVOLVING THE ORGANIZATION 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 THE ORGANIZATION'S LEGAL DEPARTMENT. A COPY OF THE MEMBER OF MANAGEMENT'S DISCLOSURE IS REVIEWED BY THE ORGANIZATION'S COI COORDINATOR AND ESCALATED TO THE COI COMMITTEE IF NECESSARY. 2. ANNUALLY, EACH MEMBER OF MANAGEMENT COMPLETES AN ANNUAL CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRE ELECTRONICALLY. THE DISCLOSURE QUESTIONNAIRE IS REVIEWED 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 THE ORGANIZATION'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 THE ORGANIZATION AND TO ENSURE THAT THE ORGANIZATION'S EMPLOYEES ARE ALWAYS ACTING IN THE BEST INTEREST OF THE ORGANIZATION. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a 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 GERBER MEMORIAL. 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 AND, FOR FY 2013 (7/1/12-6/30/13), WAS BASED ON THE FOLLOWING INDEPENDENT SURVEYS OF HEALTH CARE EXECUTIVES AT COMPARABLE HEALTH SYSTEMS, HEALTH PLANS, AND MEDICAL GROUPS: * AMERICAN MEDICAL GROUP ASSOCIATION: 2012 MEDICAL GROUP COMPENSATION & FINANCIAL SURVEY * INTEGRATED HEALTHCARE STRATEGIES: 2012 HEALTH CARE EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2012 EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2012 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY * MEDICAL GROUP MANAGEMENT ASSOCIATION: 2012 MANAGEMENT COMPENSATION SURVEY * SULLIVAN, COTTER AND ASSOCIATES: 2012 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS * SULLIVAN, COTTER AND ASSOCIATES: 2012 PHYSICIAN COMPENSATION AND PRODUCTIVITY SURVEY REPORT * TOWERS WATSON: 2012/2013 HOSPITAL AND HEALTHCARE MANAGEMENT COMPENSATION REPORT * TOWERS WATSON: 2012/2013 TOP MANAGEMENT COMPENSATION REPORT * WARREN: 2012 COMPENSATION SURVEY 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 HEALTHCARE ORGANIZATIONS. SPECTRUM HEALTH RECRUITS NATIONALLY FOR ITS EXECUTIVES. BENEFITS DATA REFLECT NATIONAL HEALTHCARE 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). Process used to establish compensation of other officers/key employees Form 990, Part VI, Section B, Line 15b SEE EXPLANATION PROVIDED FOR FORM 990, PART VI, LINE 15A. Governing documents, conflict of interest policy and financial statements available to the public Form 990, Part VI, Section C, Line 19 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." FINANCIAL PERFORMANCE IS DISCUSSED AT AN ANNUAL PUBLIC MEETING HELD AND POSTED TO WWW.SPECTRUMHEALTH.ORG ANNUALLY (UNDER THE SECTION TITLED "ABOUT US"). REPORTED COMPENSATION AND HOURS FORM 990, PART VII, SECTION A 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 ORGANIZATION OR A RELATED ORGANIZATION. 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, 2012. EMPLOYEES WITH COMPENSATION REPORTED IN PART VII WORK A COMBINED AVERAGE OF 50 HOURS PER WEEK FOR THE REPORTING ORGANIZATION AND/OR A RELATED TAX-EXEMPT ORGANIZATION. Other changes in net assets or fund balances Form 990 , Part XI, Line 9 BENEFICIAL INTEREST IN FOUNDATION ASSETS - 244453; UNCOLLECTIBLE PLEDGES - -90360; OVERSIGHT OF THE AUDIT FORM 990, PART XII, LINE 2C THE FINANCIAL STATEMENTS OF THE FILING ORGANIZATION WERE AUDITED BY AN INDEPENDENT AUDITOR AS PART OF THE CONSOLIDATED AUDIT OF SPECTRUM HEALTH SYSTEM (EIN 38-3382353). THE OVERSIGHT OF THAT AUDIT IS BEING ASSUMED BY SPECTRUM HEALTH SYSTEM, THE SOLE MEMBER OF THE ORGANIZATION. SPECTRUM HEALTH SYSTEM 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 MANAGEMENT MI 501(C)(3) 11 - Type III - FI NA false SPECTRUM HEALTH HOSPITALS 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH PRIMARY CARE PTNRS 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH FOUNDATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 PHILANTHROPY MI 501(C)(3) 7 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH CONTINUING CARE 750 FULLER AVE NE GRAND RAPIDS MI 49503 REHAB/CARE MI 501(C)(3) 9 SPECTRUM HEALTH SYSTEM false REED CITY HOSPITAL CORPORATION 300 N PATTERSON RD REED CITY MI 49677 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false ZEELAND COMMUNITY HOSPITAL 8333 FELCH STREET ZEELAND MI 49464 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH UNITED 615 S BOWER GREENVILLE MI 48838 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 HMO MI 501(C)(4) N/A SPECTRUM HEALTH SYSTEM false PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI N/A C CORPORATION MICHIGAN MEDICAL PATIENT CARE 1840 WEALTHY ST SE MC 498 GRAND RAPIDS MI 49506 382851295 MEDICAL MI N/A C CORPORATION WEST MICHIGAN HEART 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 PHYSICIANS MI N/A C CORPORATION SPECTRUM HEALTH PHYSICIAN ALLIANCE 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 371655728 PHYSICIANS MI N/A C CORPORATION false false true false false false false true false true false true true false true false false false false PRIORITY HEALTH L 7726856 GAAP, CASH, OR FMV PRIORITY HEALTH M 3492342 GAAP, CASH, OR FMV SECTION 512(B)(13) CONTROLLED ENTITY? PART II, COLUMN (G) THE FILING ORGANIZATION IS A MEMBER OF A CONSOLIDATED HEALTH SYSTEM AND HAS A COMMON PARENT ORGANIZATION, SPECTRUM HEALTH SYSTEM.