2014-05-01T11:00:23-05:00 2013-06-30 350921680 CROWE HORWATH LLP 70 WEST MADISON STREET SUITE 700 CHICAGO IL 606024903 990 2012-07-01 381360529 SPECTRUM HEALTH HOSPITALS SPEC 6167747322 100 Michigan St NE Grand Rapids MI 49503 RONALD J KNAUS 2014-04-07 true GERALYN R HURD P00933422 3128997000 2012 2015-11-30 17:44:51Z KEVIN SPLAINE 100 Michigan St NE Grand Rapids MI 49503 2096880653 false X WWW.SPECTRUMHEALTH.ORG X 1876 MI TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE 16 12 10607 2550 2809483 470670 7751201 14145386 1535368517 1657629569 21899760 60349688 955107 10491626 1565974585 1742616269 1158948 2932668 0 0 567743425 578520658 0 0 0 887016575 990093421 1455918948 1571546747 110055637 171069522 2312070469 2420127912 1099426153 1017099722 1212644316 1403028190 X TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE false false 1412588892 2932668 1657655782 SPECTRUM HEALTH HOSPITALS (SHH) CONSISTS OF BLODGETT HOSPITAL & BUTTERWORTH HOSPITAL (THE CAMPUS OF WHICH INCLUDES THE HELEN DEVOS CHILDREN'S HOSPITAL, THE FRED AND LENA MEIJER HEART CENTER, LEMMEN- HOLTON CANCER PAVILION) WITH APPROXIMATELY 1,110 LICENSED BEDS COMBINED. THE HOSPITALS ARE ACUTE CARE INPATIENT FACILITIES WHICH INCLUDE SPECIALTY CRITICAL CARE UNITS & OUTPATIENT SERVICES. BUTTERWORTH IS THE ONLY LEVEL I TRAUMA CENTER IN WEST MICHIGAN. BLODGETT IS HOME TO THE CENTER FOR ACUTE REHABILITATION, A 30-BED INPATIENT FACILITY HELPING PATIENTS REGAIN INDEPENDENCE. HELEN DEVOS CHILDREN'S HOSPITAL IS MICHIGAN'S LARGEST NEONATAL CENTER, CARING FOR MORE THAN 1,500 CRITICALLY ILL AND PREMATURE BABIES ANNUALLY. THE FRED AND LENA MEIJER HEART CENTER IS A LEADER IN HEART AND VASCULAR CARE IN THE REGION, STATE, AND NATION. LEMMEN-HOLTON CANCER PAVILION IS THE LARGEST CANCER SERVICES PROVIDER IN THE REGION. TOGETHER THESE RESOURCES PROVIDE A COORDINATED CONTINUUM OF HEALTH CARE SERVICES TO THE CITIZENS OF WEST MICHIGAN AND TREAT ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY. (SEE SCHEDULE O) 1412588892 true true false false false false false false false true false false true true false false true false false false false false false false false true true true false true true false false false false false false false false true true false false false false false true true true true false true 588 0 true 10607 true true true false false false false false false false false false X 16 12 true false false false true true true true true false false true true true true true true true true true true X Ronald J Knaus 6167747322 100 Michigan St NE Grand Rapids MI 49503 X HARRY KNOPKE PHD 2.00 0 X X 30000 0 0 KEVIN SPLAINE 50.00 0 X X 787837 0 272436 PATRICK MILES 2.00 2.00 X X 0 0 0 SANDRA COTTINGHAM MD PHD 2.00 0 X X 20500 0 0 THOMAS HAAS PHD 2.00 0 X X 20355 0 0 DAVID KRHOVSKY MD 2.00 0 X 0 0 0 DAVID LANGWORTHY 2.00 2.00 X 18000 0 0 DAVID MACK 2.00 4.00 X 18000 0 0 DON HENRY 2.00 2.00 X 18000 0 0 GLORIA LARA 2.00 0 X 0 0 0 JAMES FUSON MD 2.00 0 X 23500 438024 39565 KAHN NEDD MD 2.00 0 X 20500 0 0 LYNNE FERRELL 2.00 0 X 0 0 0 MARK WILSON 2.00 2.00 X 0 0 0 MATTHEW VAN VRANKEN 2.00 48.00 X 0 1446912 379738 THOMAS MALVITZ MD 2.00 0 X 20000 0 0 WILLIAM BOER 2.00 0 X 22500 0 0 LISA SHANNON 50.00 0 X 653961 0 166016 MARC CHIRCOP 38.00 12.00 X 678791 0 186859 RONALD KNAUS 48.00 2.00 X 523791 0 161618 WILLIAM JEWELL 50.00 0 X 375208 0 88196 CAROLE MONTGOMERY 48.00 2.00 X 555957 0 165836 DAVID BEACH 50.00 0 X 360305 0 92008 JEANNE ROODE 50.00 0 X 227869 0 132083 PATRICE VILLEMURE 50.00 0 X 280496 0 39628 PAUL BONIS 50.00 0.00 X 517456 0 127067 RALPH ROGERS MD 46.00 4.00 X 724783 0 226820 ROBERT CONNORS 50.00 0 X 681215 0 184831 RONALD SAGRITALO 50.00 0 X 244317 0 82831 SHAWN ULREICH 50.00 0 X 563068 0 172450 ASGHAR KHAGHANI 50.00 0 X 766552 0 15241 DAVID MATISOFF 50.00 0 X 481673 0 59061 JOHN DYSART 50.00 0 X 470316 0 54061 MARCUS HAW 50.00 0 X 642828 0 16473 PENNY WILTON 50.00 0 X 511317 0 34890 BRIDGET TUCKER-GONDER 0.00 50.00 X 0 360553 106857 CHRISTOPHER BASKEL 50.00 0 X 177504 0 31663 CRYSTAL JANUARY-CRAFT 0.00 50.00 X 0 181738 22031 DAVID DULL 50.00 0.00 X 185352 0 0 EDWARD KOLLER 0.00 50.00 X 0 175909 17792 JAMES WILSON 50.00 0 X 270864 0 0 JASON JOSEPH 0.00 50.00 X 0 195959 19253 JONATHAN FLYTE 0.00 0 X 475865 0 68260 JOSEPH FIFER 0.00 0.00 X 183994 0 115773 KRISTINE WHITE 0.00 50.00 X 0 281482 80405 LARRY GENZINK 50.00 0 X 171937 0 26929 MATTHEW DAVIS 0.00 50.00 X 0 254178 46161 PETER B LUNDEEN MD 0.00 50.00 X 0 258343 29456 SCOTT DRESEN 0.00 50.00 X 0 339630 120859 SHARI SCHWANZL 50.00 0 X 348945 0 104792 STEVEN SARROS 50.00 0 X 160833 0 0 TRACEY MCKNIGHT 50.00 0 X 192437 0 26372 12426829 3932728 3514310 295 true true false MERC 1000 MONROE AVE NW GRAND RAPIDS MI 49503 MEDICAL EDUCATION 24155784 TURNER CONSTRUCTION SERVICES 237 FULTON ST W GRAND RAPIDS MI 49503 CONSTRUCTION 7265083 THE CHRISTMAN COMPANY 634 FRONT AVE NW GRAND RAPIDS MI 49504 CONSTRUCTION 6139320 NEONATAL ASSOCIATES PC 100 MICHIGAN STREET NE GRAND RAPIDS MI 49503 MEDICAL SERVICES 5886039 GREAT LAKES NEUROSURGICAL 414 PLYMOUTH AVE NE GRAND RAPIDS MI 49505 MEDICAL SERVICES 3497999 120 9545939 4599447 14145386 PROGRAM SERVICE REVENUE 622110 1602942486 1602942486 SHARED SERVICES 541200 23260088 23260088 MEANINGFUL USE-MEDICARE & MEDICAID 900099 7937836 7937836 PATIENT REVENUE - REF LAB 900099 2357796 2357796 OTHER HOSPITAL OPERATING INCOME 900099 381119 381119 20750244 18139093 451687 2159464 1657629569 19241250 19241250 0 0 2254904 1793977 460927 0 460927 460927 393532402 46443 352450177 20230 41082225 26213 41108438 26213 41082225 0 0 0 CAFETERIA 722212 10030699 10030699 0 0 0 0 0 0 10030699 1742616269 1652686835 2809483 72974565 2932668 2932668 0 0 0 12026609 10990324 1036285 124499 113767 10732 424367597 387801534 36566063 22207813 20293500 1914313 87467573 79927868 7539705 32326567 29540017 2786550 0 1568683 1568683 195678 195678 0 0 0 88685635 79915426 8770209 0 1552443 284849 1267594 12578784 10063027 2515757 1845279 1515876 329403 0 51916940 41533552 10383388 1914560 1479791 434769 0 358682 237886 120796 38373838 38373838 0 100821961 97014150 3807811 9385164 7508131 1877033 BAD DEBTS 44696537 44696537 SHARED SVCS/MGMT FEES 355540934 284432747 71108187 MEDICAL AND OTHER SUPPLIES 275145959 269885314 5260645 DUES AND SUBSCRIPTIONS 2840797 2086281 754516 2671547 1961809 709738 0 1571546747 1412588892 158957855 0 0 29714 29400 35231164 25998246 3863338 3383376 148909503 152196185 0 0 27942078 31340278 18571585 21620998 1991136130 941033477 1055443674 1050102653 38223853 15237119 0 3108991 2805203 3725275 3492442 977021294 1113922012 2312070469 2420127912 151642133 168123832 3338369 5222681 3761148 2677453 644211896 634291012 0 93417640 92514975 203054967 114269769 1099426153 1017099722 X 1133302820 1318817393 46228608 48152584 33112888 36058213 1212644316 1403028190 2312070469 2420127912 X 171069522 11358943 7955409 X false true X true true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 15979411 15979411 1187564946 398867118 788697828 40158387 21702846 18455541 719751378 507184702 212566676 27682008 13278811 14403197 1050102653 CAPITAL ACCUMULATED ACCTS 4880352 PREPAID PENSION LIABILITY 20565156 PREPAIDS INSURANCE PREMIUMS 5146756 OTHER LT ASSETS-PH NOTE RECEIVABLE 30039572 PREPAID RENT-WMRL 2480071 BENEFICIAL INTEREST IN FOUNDATION ASSETS 84210798 DUE FROM AFFILIATES 955615409 A/R - MEDICARE MEANINGFUL USE 3137525 MEDICAID SETTLEMENTS RECEIVABLE 2408156 OTHER ASSETS 5438217 1113922012 0 MINORITY INTEREST IN SHH JV 78338 THIRD PARTY PAYABLE 19443997 PBO PENSION LIABILITY 64871677 OTHER LT LIABILITIES 314673 DUE TO AFFILIATES 29561084 114269769 FIN 48 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 17492274 0 17492274 0.01150 316398559 262833926 53564633 0.03510 0 0 0 0.00000 0 0 333890833 262833926 71056907 0.04660 10433267 0 10433267 0.00680 28471435 9864658 18606777 0.01220 5602531 1777764 3824767 0.00250 7971061 2689382 5281679 0.00350 1752929 0 1752929 0.00120 0 0 54231223 14331804 39899419 0.02620 0 0 388122056 277165730 110956326 0.07280 135000 135000 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 291741 291741 0.00020 0 0.00000 0 0.00000 0 0 426741 0 426741 0.00020 true 44696537 0 421093453 496172930 -75079477 X true false 1 1 SPECTRUM HEALTH HOSPITALS

100 MICHIGAN ST NE GRAND RAPIDS MI 49503

WWW.SPECTRUMHEALTH.ORG X X X X X X X SPECTRUM HEALTH HOSPITALS 1 true X X X X X X X X X 11 true true true X X X X X X X X X X true false true true 200 false true X true true X X X X X true false X X X X true X false false 4 AMBULATORY SURGICAL CENTER

4069 LAKE DRIVE GRAND RAPIDS MI 49545

SURGICAL CENTER (FREE STANDING OUTPATIENT FACILITY) EAST PARIS MEDICAL CENTER

1000 EAST PARIS GRAND RAPIDS MI 49545

SURGICAL CENTER (FREE STANDING OUTPATIENT FACILITY) SOUTH PAVILION

80 68TH STREET GRAND RAPIDS MI 49548

SURGICAL CENTER (FREE STANDING OUTPATIENT FACILITY) ENDOSCOPY

4100 LAKE DRIVE GRAND RAPIDS MI 49545

SURGICAL CENTER (FREE STANDING OUTPATIENT FACILITY) 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) 44,696,537 Subsidized Health Services Schedule H, Part I, Line 7g SUBSIDIZED HEALTH SERVICES INCLUDE THE UNREIMBURSED COSTS OF PROVIDING FREE OR SUBSIDIZED HEALTH SERVICES AND/OR COMMUNITY CLINICS. SUBSIDIZED HEALTH SERVICES WERE PROVIDED AT THE FOLLOWING CLINICS: -CENTER FOR INTEGRATED MEDICINE ("CIM") IS A MULTI-SPECIALTY CLINIC THAT EMPLOYS A NEW MODEL OF CARE TO ASSESS AND TREAT HIGH-FREQUENCY PATIENTS FROM AREA EMERGENCY ROOMS. THE CENTRAL GOAL OF THE CIM IS TO IDENTIFY, ACCURATELY DIAGNOSE AND DEVELOP A CARE PLAN FOR EACH PATIENT. PATIENTS UNDERGO COMPREHENSIVE EXAMS, A BEHAVIORAL HEALTH EXAM, ADDICTION ASSESSMENT, AND A MEDICAL SOCIAL WORK CASE MANAGEMENT EVALUATION. -DEVOS CHILDREN'S PEDIATRIC CLINIC IS A RESIDENCY TEACHING CLINIC THAT TEAMS PEDIATRICIANS WITH MEDICAL STUDENTS AND RESIDENTS TO PROVIDE ROUTINE WELL-CHILD CARE, DIAGNOSIS AND TREATMENT FOR NEW PROBLEMS, AND PEDIATRIC CONSULTATION BY REFERRAL. THE CLINIC'S NEUROSURGERY TEAM USES ADVANCED TECHNOLOGY AND LEADING-EDGE PROTOCOLS TO DIAGNOSE, TREAT AND MANAGE NERVOUS SYSTEM DISORDERS. -SPECTRUM HEALTH OB/GYN CLINIC HAS A DUAL MISSION OF TEACHING OB/GYN RESIDENTS AND TAKING CARE OF THE UNDERINSURED IN THE COMMUNITY, INCLUDING COMPREHENSIVE OBSTETRIC AND GYNECOLOGY SERVICES TO WOMEN OF ALL AGES. -SPECTRUM HEALTH INTERNAL MEDICINE AND FAMILY PRACTICE CLINIC OFFERS FAMILY CARE TO THE UNDERINSURED. THE CLINIC SERVES AS A TEACHING CLINIC FOR INTERNAL MEDICINE AND FAMILY PRACTICE CLINICS. 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 HOSPITALS - COMMUNITY INPUT METHODS QUALITATIVE DATA COLLECTION INVOLVED CONDUCTING FOCUS GROUPS, BRIEF INTERCEPT INTERVIEWS, AND COMMUNITY INPUT WALLS WITH COMMUNITY MEMBERS. EACH OF THESE METHODS ARE DESCRIBED ALONG WITH THE QUESTIONS USED IN THE KENT COUNTY COMMUNITY HEALTH NEEDS ASSESSMENT. FOCUS GROUPS IN THE FOCUS GROUPS, A MICHIGAN PUBLIC HEALTH INSTITUTE (MPHI) RESEARCHER INTERVIEWED PEOPLE IN SMALL GROUPS. THE PURPOSE WAS TO GENERATE COMMUNITY INPUT FROM VARIOUS POPULATION GROUPS ABOUT HEALTH AND WELLBEING IN KENT COUNTY. * 12 FOCUS GROUPS WERE CONDUCTED WITH 119 COMMUNITY MEMBERS PARTICIPATING MPHI PROVIDED INTERVIEWERS WITH THE INTERVIEW MATERIALS NEEDED, AS WELL AS TECHNICAL ASSISTANCE. COMPLETED INTERVIEWS WERE RETURNED TO MPHI FOR ANALYSIS. * 395 INTERCEPT INTERVIEWS WERE CONDUCTED IN THREE LANGUAGES BY TRAINED COMMUNITY MEMBERS COMMUNITY INPUT WALLS THIS STRATEGY INVOLVES GATHERING INPUT FROM COMMUNITY MEMBERS DIRECTLY BY POSTING LARGE SHEETS OF PAPER IN A PUBLIC SPACE AND ASKING COMMUNITY MEMBERS TO ANSWER QUESTIONS ABOUT COMMUNITY HEALTH BY WRITING THEIR THOUGHTS ON THE WALL. * 4 COMMUNITY INPUT WALLS SAMPLE INTERVIEW QUESTIONS INCLUDED: 1. THE VISION OF KENT COUNTY WORKING TOGETHER FOR A HEALTHIER TOMORROW IS TO HAVE A HIGH QUALITY OF LIFE, HEALTH, AND WELL-BEING FOR ALL PEOPLE IN KENT COUNTY. WHAT DO 'HEALTH' AND 'WELLBEING' MEAN TO YOU? 2. WHAT ABOUT THIS COMMUNITY HELPS YOU LIVE A HEALTHY LIFE? WHAT ABOUT THIS COMMUNITY MAKES IT HARD TO STAY HEALTHY? 3. HOW DO YOU FEEL ABOUT THE QUALITY OF LIFE IN KENT COUNTY? IS IT A GOOD PLACE TO RAISE CHILDREN? GROW OLD? ARE THERE JOB OPPORTUNITIES? CAN YOU FIND AFFORDABLE HOUSING? DO YOU FEEL SAFE? 4. ARE THERE PEOPLE OR GROUPS IN YOUR COMMUNITY WHOSE HEALTH OR QUALITY OF LIFE IS NOT AS GOOD AS OTHERS? IF SO, WHY DO THESE DIFFERENCES EXIST? 5. HOW DO YOU FEEL ABOUT HEALTH CARE IN KENT COUNTY? ABILITY TO GET APPOINTMENTS? QUALITY OF SERVICES? INFORMED ABOUT YOUR OPTIONS AS A PATIENT? COST? RESPECT FOR YOUR CULTURE? 6. WHAT DO YOU NEED TO IMPROVE YOUR HEALTH AND WELLBEING? AT HOME? AT WORK? AT SCHOOL? IN YOUR NEIGHBORHOOD? 7. WHAT DO WE NEED TO KNOW TO MAKE KENT COUNTY A HEALTHIER PLACE FOR EVERYONE WHO LIVES HERE? MANY EXPERTS ON PUBLIC HEALTH WERE CONSULTED AS MEMBERS OF THE STEERING COMMITTEE INCLUDING KENT, IONIA, AND OTTAWA COUNTY HEALTH DEPARTMENTS, MPHI, ALLIANCE FOR HEALTH, AND THE COMMUNITY RESEARCH INSTITUTE OF GRAND VALLEY STATE UNIVERSITY. FOR A LISTING OF ALL INDIVIDUALS AND SOURCES CONSULTED, SEE APPENDICES A & B OF THE KENT COUNTY CHNA. ; Other Hospital Facilities included in Needs Assessment Schedule H, Part V Section B, Line 4 (1) SPECTRUM HEALTH HOSPITALS - METROPOLITAN HOSPITAL SAINT MARY'S HEALTH CARE PINE REST MARY FREE BED REHABILITATION HOSPITAL; Used FPG to determine eligibility for providing discounted care criteria Schedule H, Part V Section B, Line 11 (1) SPECTRUM HEALTH HOSPITALS - 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 HOSPITALS - 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 HOSPITALS - 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 HOSPITALS - 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. MEDICAL CLINIC, 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/BUTTERWORTH-HOSPITAL-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 ONE AND A HALF COUNTIES, INCLUDING KENT COUNTY AND PART OF EASTERN OTTAWA COUNTY. THE OVERALL SERVICE AREA TOTALS THIRTEEN COUNTIES, INCLUDING GRAND RAPIDS, MICHIGAN, THE SECOND LARGEST CITY IN THE STATE. OVERALL THESE COUNTIES HAVE A TOTAL POPULATION OF OVER 1,500,000 RESIDENTS. KENT COUNTY IS LOCATED IN WESTERN MICHIGAN AND IS THE FOURTH LARGEST POPULATION CENTER IN THE STATE. THE COUNTY IS COMPOSED OF TWENTY-ONE TOWNSHIPS, FIVE VILLAGES, AND NINE CITIES COVERING 864 SQUARE MILES. GRAND RAPIDS IS THE COUNTY SEAT AND IS 30 MILES FROM LAKE MICHIGAN. GRAND RAPIDS IS ALSO KNOWN FOR BEING THE HOME OF PRESIDENT GERALD R. FORD. THE HEALTH CARE RESOURCES IN KENT COUNTY INCLUDE SPECTRUM HEALTH-BUTTERWORTH CAMPUS, SPECTRUM HEALTH-BLODGETT CAMPUS, METROPOLITAN HEALTH, SAINT MARY'S HEALTH CARE, PINE REST, AND MARY FREE BED REHABILITATION HOSPITAL. IN ADDITION, THE HEALTH DEPARTMENT OPERATES SIX PUBLIC HEALTH CLINICS THROUGHOUT THE COUNTY THAT OFFER PERSONAL HEALTH SERVICES. THE GRAND RAPIDS HOME FOR VETERANS AND THE VETERANS AFFAIRS OUTPATIENT CLINIC PROVIDE SERVICES FOR VETERANS. IN ADDITION TO MAJOR HEALTH CENTERS AND PUBLICLY FUNDED SERVICES, KENT COUNTY OFFERS NUMEROUS HEALTH-RELATED SERVICES THROUGH NON-PROFIT AND COMMUNITY-BASED ORGANIZATIONS. FOR SPECIFIC POPULATION STATISTICS SEE THE COMMUNITY HEALTH NEEDS ASSESSMENT ACCESSIBLE AT HTTP://WWW.SPECTRUMHEALTH.ORG/BUTTERWORTH-HOSPITAL-COMMUNITY-HEALTH-NEEDS-ASSESSMENT Promotion of community health Schedule H, Part VI, Line 5 SPECTRUM HEALTH HOSPITAL'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 HOSPITAL'S PRIMARY SERVICE AREA. SPECTRUM HEALTH HOSPITAL ALSO EXTENDS MEDICAL STAFF PRIVILEGES TO ALL QUALIFIED PHYSICIANS IN THE COMMUNITY. SPECTRUM HEALTH 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 HOSPITAL 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 HOSPITALS 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. true ASTHMA NETWORK OF WEST MI 390 JEFFERSON SE STE 3 GRAND RAPIDS MI 49503 383351467 501(C)(3) 67730 ASTHMA PREVENTION CHERRY STREET HEALTH SERVICES 550 CHERRY ST SE GRAND RAPIDS MI 49503 382853534 501(C)(3) 500000 MEDICAL & DENTAL CARE GRAND RAPIDS AFRICAN AMER HEALTH INST 301 MICHIGAN ST NE GRAND RAPIDS MI 49503 061658200 501(C)(3) 30000 DISEASE PREVENTION HEALTH INTERVENTION SERVICES 15 ANDRE ST GRAND RAPIDS MI 49503 383273825 501(C)(3) 40000 HEALTH ACCESS PROJECT ACCESS 233 EAST FULTON STE 266 GRAND RAPIDS MI 49503 611481271 501(C)(3) 70000 COORDINATE MEDICAL CARE MEL TROTTER MINISTRIES SHELTER FOR PUBLIC INEBRIATES 225 COMMERCE SW GRAND RAPIDS MI 49503 381410467 501(C)(3) 70000 SOBRIETY FOR CLIENTS WISE PROJECT 935 BAXTER SE GRAND RAPIDS MI 49503 382779590 501(C)(3) 50183 CARDIOVASCULAR OUTCOME YMCA 475 LAKE MICHIGAN DR NW GRAND RAPIDS MI 49503 381358058 501(C)(3) 128518 FIGHTING OBESITY FERGUSON RENAISSANCE CENTER 72 SHELDON SE GRAND RAPIDS MI 49503 383545741 501(C)(3) 135000 MEDICAL & MENTAL HEALTH SPECTRUM HEALTH GERBER MEMORIAL 212 S SULLIVAN AVE FREMONT MI 49412 381359517 501(C)(3) 8590 GENERAL SUPPORT REED CITY HOSPITAL CORPORATION 300 N PATTERSON RD REED CITY MI 49677 382770076 501(C)(3) 9453 GENERAL SUPPORT SPECTRUM HEALTH UNITED 615 S BOWER ST GREENVILLE MI 48838 381358412 501(C)(3) 108409 GENERAL SUPPORT SPECTRUM HEALTH KELSEY 615 S BOWER ST GREENVILLE MI 48838 381297435 501(C)(3) 134970 GENERAL SUPPORT SPECTRUM HEALTH MEDICAL GROUP 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 381358164 501(C)(3) 588674 GENERAL SUPPORT SPECTRUM HEALTH SYSTEM 100 MICHIGAN STREET NE GRAND RAPIDS MI 49503 383382353 501(C)(3) 988140 GENERAL SUPPORT 15 0 Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 THE RECIPIENT MUST SUBMIT A BUDGET REPORT TO SPECTRUM HEALTH ON A QUARTERLY BASIS. RECIPIENT WILL PROVIDE A FINANCIAL REPORT ITEMIZING EXPENDITURES. THE FINANCIAL STATEMENT IS ATTESTED TO BY THE RESPONSIBLE FINANCIAL OFFICER. X X true true X X X X X true true false false false false false true false ASGHAR KHAGHANI 752074 0 0 0 14478 0 0 0 15241 0 781793 0 0 0 BRIDGET TUCKER-GONDER 0 218743 0 140627 0 1183 0 65552 0 41305 0 467409 0 91597 CAROLE MONTGOMERY 332031 0 222878 0 1048 0 111835 0 54001 0 721793 0 145697 0 CHRISTOPHER BASKEL 149937 0 24192 0 3375 0 12705 0 18958 0 209167 0 0 0 CRYSTAL JANUARY-CRAFT 0 155116 0 25296 0 1327 0 5619 0 16412 0 203769 0 0 DAVID BEACH 247902 0 107072 0 5331 0 41094 0 50914 0 452312 0 47193 0 DAVID DULL 0 0 0 0 185352 0 0 0 0 0 185352 0 0 0 DAVID MATISOFF 467849 0 0 0 13825 0 39500 0 19561 0 540735 0 0 0 EDWARD KOLLER 0 126924 0 0 0 48985 0 6063 0 11728 0 193701 0 0 JAMES FUSON MD 23500 426771 0 0 0 11253 0 25000 0 14565 23500 477589 0 0 JAMES WILSON 0 0 0 0 270864 0 0 0 0 0 270864 0 0 0 JASON JOSEPH 0 168292 0 27338 0 329 0 6822 0 12431 0 215212 0 0 JEANNE ROODE 190635 0 33219 0 4015 0 106641 0 25442 0 359951 0 0 0 JOHN DYSART 467849 0 0 0 2467 0 34500 0 19561 0 524378 0 0 0 JONATHAN FLYTE 221688 0 137941 0 116237 0 33010 0 35250 0 544125 0 25941 0 JOSEPH FIFER 140179 0 43127 0 688 0 61079 0 54694 0 299767 0 43127 0 KEVIN SPLAINE 505699 0 263417 0 18722 0 197239 0 75197 0 1060273 0 114870 0 KRISTINE WHITE 0 128345 0 151504 0 1632 0 48014 0 32391 0 361887 0 104606 LARRY GENZINK 148120 0 23293 0 524 0 12146 0 14784 0 198867 0 0 0 LISA SHANNON 401461 0 248105 0 4395 0 100461 0 65555 0 819977 0 129260 0 MARC CHIRCOP 375829 0 284273 0 18690 0 126548 0 60311 0 865650 0 173508 0 MARCUS HAW 437582 0 200000 0 5246 0 10444 0 6029 0 659301 0 0 0 MATTHEW DAVIS 0 205693 0 47938 0 547 0 10434 0 35727 0 300339 0 19197 MATTHEW VAN VRANKEN 0 845611 0 542443 0 58858 0 270019 0 109719 0 1826651 0 322225 PATRICE VILLEMURE 219178 0 59191 0 2127 0 7060 0 32569 0 320124 0 0 0 PAUL BONIS 297773 0 214015 0 5669 0 76409 0 50658 0 644524 0 113828 0 PENNY WILTON 508977 0 0 0 2340 0 7173 0 27717 0 546207 0 0 0 PETER B LUNDEEN MD 0 225603 0 31294 0 1446 0 16040 0 13416 0 287799 0 0 RALPH ROGERS MD 411759 0 299242 0 13782 0 140664 0 86156 0 951604 0 172131 0 ROBERT CONNORS 404304 0 273180 0 3731 0 120711 0 64120 0 866046 0 181791 0 RONALD KNAUS 321833 0 197525 0 4434 0 104223 0 57395 0 685408 0 119763 0 RONALD SAGRITALO 177727 0 65098 0 1492 0 42297 0 40534 0 327149 0 21479 0 SCOTT DRESEN 0 209535 0 129386 0 708 0 75687 0 45172 0 460488 0 83325 SHARI SCHWANZL 208969 0 138714 0 1262 0 67240 0 37552 0 453737 0 89555 0 SHAWN ULREICH 331576 0 224099 0 7393 0 116438 0 56012 0 735518 0 144793 0 STEVEN SARROS 0 0 0 0 160833 0 0 0 0 0 160833 0 0 0 TRACEY MCKNIGHT 154627 0 37511 0 299 0 10620 0 15752 0 218809 0 0 0 WILLIAM JEWELL 223475 0 149785 0 1947 0 61528 0 26668 0 463404 0 97626 0 Travel for companions Schedule J, Part I, Line 1a THE TAXPAYER PROVIDED COMPANION TRAVEL FOR ONE EXECUTIVE EMPLOYEE. THE RELATED AMOUNTS WERE TREATED AS TAXABLE COMPENSATION TO THE EMPLOYEE AND INCLUDED IN FORM W-2. Health or social club dues or initiation fees Schedule J, Part I, Line 1a THE TAXPAYER PROVIDED HEALTH CLUB DUES FOR THIRTEEN EXECUTIVE EMPLOYEES. THESE 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 HOSPITALS. 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). Severance or change-of-control payment Schedule J, Part I, Line 4a $185,052 DAVID DULL $115,560 JONATHAN FLYTE $ 48,329 EDWARD KOLLER $160,184 STEVEN SARROS $270,479 JAMES WILSON Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b $ 47,193 DAVID BEACH $113,828 PAUL BONIS $173,508 MARC CHIRCOP $181,791 ROBERT CONNORS $ 19,197 MATTHEW DAVIS $ 83,325 SCOTT DRESEN $ 43,127 JOSEPH FIFER $ 25,941 JONATHAN FLYTE $ 97,626 WILLIAM JEWELL $119,763 RONALD KNAUS $145,697 CAROLE MONTGOMERY $172,131 RALPH ROGERS $ 21,479 RONALD SAGRITALO $ 89,555 SHERI SCHWANZL $129,260 LISA SHANNON $114,870 KEVIN SPLAINE $ 91,597 BRIDGET TUCKER-GONDER $144,793 SHAWN ULREICH $322,225 MATTHEW VAN VRANKEN $104,606 KRISTINE WHITE 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" SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN(S). SOME INDIVIDUALS RECEIVED DISTRIBUTIONS DURING THE YEAR (AS REPORTED ON THIS LINE) WHEREAS OTHERS PARTICIPATED IN THE PLAN(S) BUT DID NOT RECEIVE DISTRIBUTIONS. DISTRIBUTIONS REPORTED ON THIS LINE ARE ALSO INCLUDED IN SCHEDULE J, PART II, COLUMN F AS COMPENSATION REPORTED IN A PRIOR YEAR. Non-fixed payments Schedule J, Part I, Line 7 SCHEDULE J, PART I, LINE 7, IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, RECEIVED A NON-FIXED PAYMENT DURING THE YEAR. THE NON-FIXED PAYMENTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN C. A KENT HOSPITAL FINANCING AUTHORITY (2008A & 2008B) 382350002 490580CW5 2008-04-15 471211001 2001B, 2007A & 2007B REFUNDING BOND false false true B KENT HOSPITAL FINANCING AUTHORITY (2008C) 382350002 490580CY1 2008-09-09 67200000 1998B REFUNDING BOND false false true C KENT HOSPITAL FINANCING AUTHORITY (2011AB) 382350002 490580DQ7 2011-06-22 212859639 2005B & 2008B1 REVENUE REFUNDING BONDS false false true D KENT HOSPITAL FINANCING AUTHORITY (2011C) 382350002 490580ED5 2011-11-09 75511075 2008B2 REVENUE REFUNDING BONDS false false true A 244922853 0 448227143 0 13556465 0 2454359 0 0 0 432216319 0 2008 true false true true B 0 0 59742011 0 0 0 0 0 0 0 59742011 0 2008 true false true true C 5205000 0 212859639 0 0 0 1359065 0 0 50000574 161500000 0 2010 true false true true D 0 0 52270033 0 0 0 578416 0 0 0 51691617 0 2011 true false true true A false false true true true true 0.0000 0.0000 0.0000 false false 0.0000 false true B false false true true true true 0.0000 0.0000 0.0000 false false 0.0000 false true C false false true true true true 0.0000 0.0000 0.0000 false false 0.0000 false true D false false true true true true 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 0.0 false false false 0.0 false false true C false false false true true false 0 false false false 0 false false true D false false false true false false 0.0 false false false 0.0 false false true A true B true C true D true TAX EXEMPT BONDS SCHEDULE K, PART I BONDS ARE ISSUED ON BEHALF OF AN OBLIGATED GROUP AND DESIGNATED AFFILIATES UNDER THE 1998 MASTER TRUST INDENTURE (MTI). ALL OBLIGATED GROUP MEMBERS AND/OR DESIGNATED AFFILIATES ARE PART OF THE SAME HEALTH SYSTEM AND ARE TAX-EXEMPT 501(C)(3) CHARITABLE ORGANIZATIONS. THE 2011C BOND IS ATTRIBUTABLE TO TWO LEGAL ENTITIES WITHIN THE OBLIGATED GROUP (SEE ALSO FORM 990, PART X, LINE 20): * SPECTRUM HEALTH HOSPITALS (EIN 38-1360529) AND * SPECTRUM HEALTH UNITED (EIN 38-1358412) THE 2008C BOND IS ATTRIBUTABLE TO FOUR LEGAL ENTITIES WITHIN THE OBLIGATED GROUP (SEE ALSO FORM 990, PART X, LINE 20): * SPECTRUM HEALTH HOSPITALS (EIN 38-1360529) * SPECTRUM HEALTH CONTINUING CARE CENTER (EIN 38-3242232) * SPECTRUM HEALTH CONTINUING CARE (EIN 38-2415333) * SPECTRUM HEALTH WORTH SERVICES (EIN 38-2786617) AS IT RELATES TO THESE BONDS, THE INFORMATION REPORTED IN SCHEDULE K, PART I IS REPEATED FOR EACH MEMBER OF THE OBLIGATED GROUP. THE INFORMATION REPORTED IN PART II IS REPRESENTATIVE OF THE REPORTING ENTITY'S PORTION OF THE TAX-EXEMPT BOND. ISSUER NAME: Kent Hospital Financing Authority (2008A & 2008B): No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON JULY 15, 2009. ISSUER NAME: Kent Hospital Financing Authority (2008C): No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON JULY 15, 2009. ISSUER NAME: Kent Hospital Financing Authority (2011AB): No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON AUGUST 13, 2012. ISSUER NAME: Kent Hospital Financing Authority (2011C): No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON AUGUST 13, 2012. ISSUER NAME: Kent Hospital Financing Authority (2012AB): No Rebate Due. Schedule K, Part IV, Line 2c THE CALCULATION FOR COMPUTING NO REBATE DUE WAS PERFORMED ON AUGUST 13, 2012. A KENT HOSPITAL FINANCING AUTHORITY (2012AB) 382350002 2012-01-17 112980000 2008A1 & 2008B2 REVENUE REFUNDING BONDS false false false A 0 0 112980000 0 0 0 255000 0 0 0 112725000 0 2012 true false true true A false false true true true true 0.0000 0.0000 0.0000 false false 0.0000 false true A false false false true true false 0.0 false false false 0.0 false false true A true WEST MICHIGAN SHARED HOSPITAL LAUNDRY BUSINESS 3452699 SEE SCH L, PART V false ANESTHESIA MEDICAL CONSULTANTS BUSINESS 2462563 SEE SCH L, PART V false ORTHOPAEDIC ASSOCIATES BUSINESS 2374737 SEE SCH L, PART V false GREATER MICHIGAN LITHOTRIPSY BUSINESS 1603350 SEE SCH L, PART V false MICHIGAN PATHOLOGY SERVICES BUSINESS 1150867 SEE SCH L, PART V false PEDIATRIC SURGEONS OF WEST MICHIGAN BUSINESS 674380 SEE SCH L, PART V false FIFTH THIRD BANK BUSINESS 344548 SEE SCH L, PART V false MICHIGAN PROFESSIONAL INSURANCE EXCHANGE BUSINESS 237015 SEE SCH L, PART V false MALVITZ PHOTOGRAPHYMICHAEL MALVITZ FAMILY 62708 SEE SCH L, PART V false ELIZABETH KOIVISTO FAMILY 47261 SEE SCH L, PART V false ANDREW ARMSTRONG FAMILY 14530 SEE SCH L, PART V false FAMILY AND BUSINESS RELATIONSHIPS WITH INTERESTED PERSONS SCHEDULE L, PART V MR. CHRISTOPHER BASKEL, A CURRENT EMPLOYEE (IDENTIFIED ON PART VII AS A FORMER KEY EMPLOYEE) OF THE ORGANIZATION, SERVES ON THE BOARD OF DIRECTORS FOR A TAXABLE SUBSIDIARY WHICH HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 1) DR. DAVID DULL, A FORMER KEY EMPLOYEE OF THE ORGANIZATION, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 2) DR. THOMAS MALVITZ, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. HE ALSO HAS A SON AND DAUGHTER IN LAW THAT DO BUSINESS WITH THE ORGANIZATION AND A SON THAT IS EMPLOYED BY THE ORGANIZATION. (PART IV, LINES 3, 9,10 & 11) MR. MARC CHIRCOP, AN OFFICER OF THE ORGANIZATION, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 4) DR. SANDRA COTTINGHAM, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, HAS A GREATER THAN 5% INTEREST IN A TAXABLE ORGANIZATION THAT PROVIDES SERVICES TO THE ORGANIZATION. (PART IV, LINE 5) DR. ROBERT CONNORS, A KEY EMPLOYEE OF THE ORGANIZATION, HAS A GREATER THAN 5% INTEREST IN A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 6) MR. MATTHEW VAN VRANKEN, A MEMBER OF THE ORGANIZATION'S BOARD OF DIRECTORS, ALSO SERVES AS DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 7) MR. RONALD KNAUS, DR. RALPH ROGERS AND MS. BRIDGET TUCKER-GONDER, AN OFFICER, KEY EMPLOYEE AND FORMER KEY EMPLOYEE OF THE ORGANIZATION, RESPECTIVELY, ALL SERVE ON THE BOARD OF DIRECTORS FOR A TAXABLE ENTITY WHICH HAS A BUSINESS RELATIONSHIP WITH THE ORGANIZATION. (PART IV, LINE 8) PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A COMMUNITY BENEFIT FOR SPECTRUM HEALTH SYSTEM & AFFILIATES IS DISCLOSED ON THE WEBSITE. NOTABLE HIGHLIGHTS FOR THE YEAR INCLUDE: - THE RICHARD DEVOS HEART & LUNG TRANSPLANT PROGRAM'S APPLICATION TO PERFORM TRANSPLANTS WAS APPROVED IN DECEMBER 2012-ALLOWING SHH TO PUT PATIENTS ON A WAITING LIST, AND THE FIRST TRANSPLANT WAS PERFORMED IN FEBRUARY 2013. - THE ADULT BLOOD AND MARROW TRANSPLANT (BMT) CLINIC IN DOWNTOWN GRAND RAPIDS WAS OPENED IN 2012, OFFERING THIS LIFESAVING TREATMENT CLOSE TO HOME FOR THE FIRST TIME. SPECTRUM HEALTH HAS THE ONLY ADULT AND PEDIATRIC BMT PROGRAMS IN THE WESTERN HALF OF THE STATE. Family/business relationships amongst interested persons Form 990, Part VI, Section A, Line 2 MR. RONALD KNAUS, DR. RALPH ROGERS AND MS. BRIDGET TUCKER-GONDER - BUSINESS RELATIONSHIP Classes of members or stockholders Form 990, Part VI, Section A, Line 6 THE ORGANIZATION HAS ONE MEMBER(S)/STOCKHOLDER(S) AS FOLLOWS: 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 (SEE FORM 990, PART VI, LINE 6) OF THE ORGANIZATION APPOINTS ALL MEMBERS OF THE 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 A COPY OF THE FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS PRIOR TO FILING. THE REVIEW PROCESS FOR THIS FORM 990 IS AS FOLLOWS: 1. PREPARATION OF THE RETURN IS SUPERVISED AND REVIEWED BY THE ORGANIZATION'S CORPORATE TAX MANAGER. 2. A SECOND REVIEW IS PERFORMED BY AN EXTERNAL CPA FIRM WITH EXPERTISE IN TAX-EXEMPT RETURN PREPARATION. 3. THE RETURN IS REVIEWED BY THE ORGANIZATION'S FINANCE AND LEGAL DEPARTMENTS (INCLUDING THE 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 HOSPITALS. 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. CERTAIN DIRECTORS WERE PAID REASONABLE COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE BOARD. CONSISTENT WITH PRIOR YEARS, COMPENSATION AND BENEFITS ARE REPORTED USING THE MOST RECENT CALENDAR YEAR COMPENSATION DATA. THE COMPENSATION FIGURES REPORTED IN THESE SECTIONS ARE FOR THE YEAR ENDED DECEMBER 31, 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. COMPENSATION OF DIRECTORS FORM 990, PART VII, SECTION A BASED ON EXTERNAL OPINION BY SULLIVAN COTTER AND ASSOCIATES, INC., SPECTRUM HEALTH SYSTEM COMPENSATES BOARD MEMBERS IN A MANNER THAT IS REASONABLE IN RELATION TO MARKET DATA. BOARD OF DIRECTORS COMPENSATION IS CONTINUALLY REVIEWED TO CONFIRM COMPENSATION FALLS WITHIN REASONABLE LIMITS. ANY COMPENSATION AMOUNT IS TREATED AS TAXABLE TO THE BOARD MEMBER AND IS REPORTED AND PROVIDED TO THEM ON FORM 1099. REPORTING OF INVESTMENTS FORM 990, PART X, LINE 11 THE ORGANIZATION HAS REPORTED CERTAIN INVESTMENT ACCOUNTS WHICH MAY ALSO BE INCLUDED ON THE BALANCE SHEET(S) OF RELATED ENTITIES WITHIN THE SYSTEM. Other changes in net assets or fund balances Form 990 , Part XI, Line 9 BENEFICIAL INTEREST IN FOUNDATION ASSETS - 4869301; MINIMUM PENSION LIABILITY - 46098348; RELATED PARTY TRANSFERS - -43034488; K-1 INCOME/LOSS - 22248; 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 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 PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 HMO MI 501(C)(4) N/A 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 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION 212 S SULLIVAN AVENUE FREMONT MI 49412 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 SPECTRUM HEALTH PRIMARY CARE PTNRS 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false HELEN DEVOS WOMEN'S AND CHILDREN'S HEALTH PAVILION ASSOCIATION 330 BARCLAY NE GRAND RAPIDS MI 49503 383264184 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 606630 311167 0.8696 true PARTNERSHIP FOR CHILDREN'S HEALTH 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383364676 MGED CARE MI SPECTRUM HEALTH HOSPITALS C CORPORATION 0 0 1 true THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 830464302 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 2240765 1734369 0.9827 true CAMPUS TOWNE CENTER CONDO ASSC 4868 LAKE MICHIGAN DRIVE ALLENDALE MI 49401 382910067 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 6945 322333 0.9 true PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI N/A C CORPORATION MICHIGAN MEDICAL PATIENT CARE 1840 WEALTY 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 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION 35 MICHIGAN ST NE GRAND RAPIDS MI 49503 272193084 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 803120 154921 0.931 true LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION 145 MICHIGAN ST NE GRAND RAPIDS MI 49503 161734150 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 2498277 140170 0.8284 true MUSCULOSKELETAL CENTER CONDOMINIUM ASSOCIATION 230 MICHIGAN NE STE 300 GRAND RAPIDS MI 49503 383180086 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 146755 55966 0.8954 true false true true false false false false false false true false true true false false true true true false PRIORITY HEALTH L 308468162 GAAP, CASH, OR FMV PRIORITY HEALTH M 83472008 GAAP, CASH, OR FMV 35 MICHIGAN CONDOMINIUM ASSOCIATION Q 792823 GAAP, CASH OR FMV HELEN DEVOS WOMEN AND CHILDREN'S HEALTH PAVILION ASSN Q 631353 GAAP, CASH OR FMV THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSN Q 2284013 GAAP, CASH, OR FMV LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSN Q 2992765 GAAP, CASH OR FMV CAMPUS TOWNE CENTER CONDO ASSC Q 17130 GAAP, CASH OR FMV IDENTIFICATION OF RELATED ORGANIZATIONS PART IV 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION AND LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION ARE INCLUDED ON SCHEDULE R, PART IV AS THE VOTING POWER IS CONTROLLING UNDER THE CONSTRUCTIVE OWNERSHIP RULES OF UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. SCHEDULE R, PART IV, COLUMNS (F) SHARE OF TOTAL INCOME AND (G) SHARE OF END-OF-YEAR ASSETS ARE REPORTED BASED ON OWNERSHIP RATHER THAN VOTING POWER. SCHEDULE R, PART IV, COLUMN (H) IS REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER.