2013-05-05T19:00:21-05:00 2012-06-30 350921680 CROWE HORWATH LLP 70 WEST MADISON STREET SUITE 700 CHICAGO IL 606024903 990 2011-07-01 381360529 SPECTRUM HEALTH HOSPITALS SPEC 6163912754 100 Michigan Ave NE Grand Rapids MI 49503 RONALD J KNAUS 2013-01-10 true GERALYN R HURD P00933422 3128997000 2011 2016-02-25 16:41:14Z KEVIN SPLAINE 100 Michigan Ave NE Grand Rapids MI 49503 1712401091 false X WWW.SPECTRUMHEALTH.ORG X 1876 MI TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE 14 10 10659 2550 3177985 280536 20748886 7751201 1395020022 1535368517 48430676 21899760 -1042468 955107 1463157116 1565974585 1350046 1158948 0 0 600746006 567743425 0 0 0 730038977 887016575 1332135029 1455918948 131022087 110055637 2327633251 2312070469 1175057118 1099426153 1152576133 1212644316 X TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE false false 1206796915 1158948 1532225414 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) 1206796915 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 644 0 true 10659 true true true true CJ false false false false false false false false X 14 10 true false true 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 Ave NE Grand Rapids MI 49503 X HARRY KNOPKE 2.00 X X 0 0 0 KEVIN SPLAINE 50.00 X X 587694 0 214823 MICHELLE VAN DYKE 2.00 X X 0 0 0 PATRICK MILES 2.00 X X 0 0 0 CHARLES LIPPERT 2.00 X 0 0 0 DAVID KRHOVSKY MD 2.00 X 0 0 0 DAVID LANGWORTHY 2.00 X 0 0 0 DAVID MACK 2.00 X 0 0 0 DON HENRY 2.00 X 0 0 0 JAMES FUSON MD 2.00 X 0 403618 39441 KAHN NEDD MD 2.00 X 0 0 0 MATTHEW VAN VRANKEN 42.00 X 1053788 0 314403 MELONIE ICE MD 2.00 X 25000 0 0 PATRICIA GARDNER 2.00 X 0 0 0 RICHARD BREON 2.00 X 0 1599221 543543 SANDRA COTTINGHAM MD PHD 2.00 X 0 0 0 THOMAS HAAS 2.00 X 0 0 0 THOMAS MALVITZ MD 2.00 X 5000 0 0 WILLIAM BOER 2.00 X 0 0 0 JOSEPH FIFER 48.00 X 464605 0 165731 LISA SHANNON 50.00 X 416961 0 129430 MARC CHIRCOP 40.00 X 496257 0 185237 RONALD KNAUS 2.00 X 0 345189 146926 WILLIAM JEWELL 50.00 X 287587 0 84011 DAVID BEACH 50.00 X 279505 0 69325 DAVID DULL 46.00 X 478825 0 136520 JAMES WILSON 50.00 X 775055 0 118934 PAUL BONIS 50.00 X 372913 0 114178 RALPH ROGERS MD 46.00 X 565198 0 219575 ROBERT CONNORS 50.00 X 548744 0 178099 RONALD SAGRITALO 50.00 X 212361 0 95522 SHAWN ULREICH 50.00 X 445537 0 166286 ASGHAR KHAGHANI 50.00 X 759790 0 16158 DAVID MATISOFF 50.00 X 475120 0 58989 JOHN DYSART 50.00 X 470256 0 54089 ROBERT BACH 50.00 X 443067 0 31785 ROBERT HUBERS 50.00 X 353806 0 37280 BRIDGET TUCKER-GONDER 50.00 X 0 273665 102069 CHRISTOPHER BASKEL 50.00 X 170618 0 29725 CRYSTAL JANUARY-CRAFT 50.00 X 177349 0 22822 EDWARD KOLLER 50.00 X 0 187685 27509 ERIC BOONSTRA 50.00 X 218196 0 13704 JASON JOSEPH 50.00 X 193574 0 18544 JONATHAN FLYTE 50.00 X 312029 0 101648 KRISTINE WHITE 0.00 X 0 299439 118974 LARRY GENZINK 48.00 X 166865 0 25347 LINDA FOX 50.00 X 117595 0 0 MATTHEW DAVIS 50.00 X 0 266834 44348 PETER B LUNDEEN MD 48.00 X 259455 0 29494 SCOTT DRESEN 50.00 X 0 257802 114251 SHARI SCHWANZL 50.00 X 267277 0 98284 STEVEN SARROS 50.00 X 563931 0 108051 TANJA OQUENDO 50.00 X 225753 0 0 TRACY MCKNIGHT 50.00 X 185150 0 26869 12374861 3633452 4001923 314 true true false MERC 1000 MONROE AVE NW GRAND RAPIDS MI 49503 MEDICAL EDUCATION 23711035 THE CHRISTMAN COMPANY 634 FRONT AVE NW GRAND RAPIDS MI 49504 CONSTRUCTION 14157976 WOLVERINE CONSTRUCTION MGMT 4045 BARDEN SE GRAND RAPIDS MI 49512 CONSTRUCTION 9003724 NEONATAL ASSOCIATES PC 100 MICHIGAN STREET NE GRAND RAPIDS MI 49503 MEDICAL SERVICES 6235469 GREAT LAKES NEUROSURGICAL 414PLYMOUTH AVE NE GRAND RAPIDS MI 49505 MEDICAL SERVICES 3536324 145 5682727 2068474 7751201 PROGRAM SERVICE REVENUE 622110 1470873220 1470873220 SHARED SERVICES 541200 20438292 20438292 CAFETERIA 722212 9720732 9720732 PATIENT REVENUE - REF LAB 900099 2778901 2778901 OTHER HOSPITAL OPERATING INCOME 900099 3623066 3623066 27934306 27535222 399084 0 1535368517 17220249 17220249 0 0 2432528 1477421 955107 0 955107 955107 149528512 100084 144883883 65202 4644629 34882 4679511 34882 4644629 0 0 0 0 0 0 0 0 1565974585 1522504682 3177985 32540717 1158948 1158948 0 0 0 9146580 8396786 749794 66017 63201 2816 427769533 388296914 39472619 21080752 21080752 77508296 66943000 10565296 32172247 29203662 2968585 0 1884231 275874 1608357 412597 412597 0 0 0 80816307 75245377 5570930 1940850 353434 1587416 13671081 10143942 3527139 3280962 2691688 589274 0 50971749 40157565 10814184 2052203 1551964 500239 0 557717 313910 243807 38856068 38856068 0 100797147 98023965 2773182 9313756 9311893 1863 BAD DEBTS 43945817 43945817 SHARED SVCS/MGMT FEES 275710172 110822929 164887243 MEDICAL AND OTHER SUPPLIES 253493242 252612413 880829 MISCELLANEOUS EXPENSE 9312676 7346813 1965863 0 0 0 0 1455918948 1206796915 249122033 0 0 35366 29714 800794 35231164 3933606 3863338 147799350 148909503 30328207 27942078 25475700 18571585 1898469451 843025777 1036586486 1055443674 59220215 38223853 5355705 3108991 90104702 0 4281833 3725275 923711287 977021294 2327633251 2312070469 161900494 151642133 2652993 3338369 3933606 3761148 568425668 644211896 69731508 93417640 368412849 203054967 1175057118 1099426153 X 1074948136 1133302820 47377431 46228608 30250566 33112888 1152576133 1212644316 2327633251 2312070469 X 110055637 -49987454 X X false true true X true true X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 15979411 15979411 1142927373 361403902 781523471 39667011 19341887 20325124 673599904 449476525 224123379 26295752 12803463 13492289 1055443674 CAPITAL ACCUMULATED ACCTS 3828369 PREPAID PENSION LIABILITY 15930904 PREPAID INSURANCE PREMIUMS 3900036 OTHER LT ASSETS-PH NOTE RECEIVABLE 30039572 PREPAID RENT-WMRL 2684346 FAS 136 ASSETS 79341496 DUE FROM AFFILIATES 817818520 MISC/OTHER 23478051 977021294 0 DUE TO AFFILIATES 69447851 MINORITY INTEREST IN SHH JV 64245 THIRD PARTY PAYABLE 32636938 PBO PENSION LIABILITY 100564623 OTHER LT LIABILITIES 341310 203054967 FIN 48 FOOTNOTE 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, 2012 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 15764923 0 15764923 0.01120 285104271 245855105 39249166 0.02780 0 0 0 0.00000 0 0 300869194 245855105 55014089 0.03900 7569143 0 7569143 0.00540 25711073 9736134 15974939 0.01130 5318385 1758000 3560385 0.00250 3876000 0 3876000 0.00270 2589461 0 2589461 0.00180 0 0 45064062 11494134 33569928 0.02370 0 0 345933256 257349239 88584017 0.06270 135000 135000 0.00010 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 87272 87272 0.00010 0 0.00000 0 0.00000 0 0 222272 0 222272 0.00020 true 43945817 0 393043576 459479601 -66436025 X true true 2 1 SPECTRUM HEALTH BUTTERWORTH

100 MICHIGAN ST NE GRAND RAPIDS MI 49503

X X X X X X X 2 SPECTRUM HEALTH BLODGETT

1840 WEALTHY ST SE GRAND RAPIDS MI 49506

X X X X 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. 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) 43,945,817 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. 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 - financial statement footnote Schedule H, Part III, Line 4 CONSOLIDATED FINANCIAL STATEMENT FOOTNOTE EXTRACT RELATED TO UNCOLLECTIBLE ACCOUNTS: 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. AFTER AMOUNTS DUE FROM THIRD-PARTY PAYORS ARE SATISFIED, AND REASONABLE EFFORTS TO COLLECT FROM THE PATIENT HAVE BEEN EXHAUSTED, THE SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH EXTERNAL COLLECTION AGENCIES. COSTING METHODOLOGY USED IN DETERMINING THE FIGURES REPORTED IN SCHEDULE H, PART III, SECTION A: ALL CHARGES ARE REPORTED AT GROSS, WHICH IS CONSISTENT WITH THE REPORTING METHODOLOGY USED IN THE ORGANIZATION'S FINANCIAL STATEMENTS. RATIONALE FOR INCLUDING BAD DEBTS (AT GROSS CHARGES) IN SCHEDULE H, PART III, LINE 2: BAD DEBTS REPRESENT AN UNREIMBURSED LIABILITY TO THE ORGANIZATION AND FURTHER DEMONSTRATE HOW, BY ASSUMING THOSE COSTS, THE ORGANIZATION PROVIDES AND FULFILLS A HEALTH NEED IN THE COMMUNITY. IN ADDITION, EMERGENCY CARE IS PROVIDED TO PATIENTS REGARDLESS OF THEIR ABILITY TO PAY FOR SERVICES. SOME SERVICES ARE PROVIDED TO INDIVIDUALS WHO QUALIFY FOR FINANCIAL ASSISTANCE BUT, FOR PERSONAL OR OTHER PRIVATE REASONS, DON'T APPLY FOR FINANCIAL ASSISTANCE. USING THIS INFORMATIONAL TAX RETURN FOR ITS INTENDED PURPOSE, THE ORGANIZATION CHOOSES TO BE FULLY TRANSPARENT AND SHARE ALL OF THE COSTS OF PROVIDING CHARITY CARE AND COMMUNITY BENEFITS TO THE COMMUNITIES WE SERVE, WHICH INCLUDES CHARITY CARE, THE COSTS OF FREE OR SUBSIDIZED COMMUNITY PROGRAMS, BAD DEBT EXPENSES AND SHORTFALLS IN GOVERNMENT REIMBURSEMENTS (MEDICARE AND MEDICAID). RATIONALE FOR REPORTING ZERO ON SCHEDULE H, PART III, LINE 3 (OR RATIONALE FOR EXCLUDING A PORTION OF BAD DEBT AMOUNTS AS COMMUNITY BENEFIT): THE ORGANIZATION HAS NOT IDENTIFIED 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 RELATES TO PATIENTS WHO WOULD QUALIFY FOR CHARITY CARE (HAD THEY PROVIDED INFORMATION TO DETERMINE ELIGIBILITY FOR FINANCIAL ASSISTANCE), A REPORTABLE FIGURE CANNOT BE REASONABLY ESTIMATED. THE ORGANIZATION IS IN THE PROCESS OF IMPLEMENTING A "PROPENSITY TO PAY" EVALUATION TOOL TO PROACTIVELY ASSESS PAYMENT RISK AND USE PREDICTIVE ANALYSIS TO DETERMINE A PATIENT'S LIKELIHOOD TO PAY MEDICAL BILLS. WITH THIS INFORMATION, THE ORGANIZATION WILL BE ABLE TO INITIATE MORE PRODUCTIVE FINANCIAL COUNSELING DISCUSSIONS WHICH WILL ULTIMATELY RESULT IN THE REDUCTION OF PATIENT BAD DEBT. 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'S COLLECTION POLICY THAT APPLIES TO THE LARGEST NUMBER OF ITS PATIENTS DURING THE TAX YEAR CONTAINS PROVISIONS TO ENSURE COLLECTION ACTIVITY OCCURS ONLY FOR THOSE WHO ARE UNWILLING TO PAY, OPPOSED TO THOSE NOT ABLE. PATIENTS EXPRESSING OR IDENTIFIED AS HAVING INABILITY TO PAY ARE ASSESSED FOR ASSISTANCE. Used FPG to determine eligibility for providing discounted care criteria Schedule H, Part V Section B, Line 10 (1) SPECTRUM HEALTH BUTTERWORTH - 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.;(2) SPECTRUM HEALTH BLODGETT - 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 11h (1) SPECTRUM HEALTH BUTTERWORTH - THE ORGANIZATION DOES NOT CHARGE ANY AMOUNT TO PATIENTS WHO QUALIFY FOR ASSISTANCE.;(2) SPECTRUM HEALTH BLODGETT - 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 13g (1) SPECTRUM HEALTH BUTTERWORTH - 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. ALTHOUGH THE POLICY ITSELF IS NOT PUBLICLY POSTED IN WAITING ROOMS OR ATTACHED TO BILLS, THERE IS REFERENCE THAT IT IS AVAILABLE. THE ORGANIZATION IS REVIEWING ITS POLICIES COMPARED TO THE REQUIREMENTS OF THE 501(R) PROPOSED REGULATIONS THAT WERE PUBLISHED ON JUNE 22, 2012.;(2) SPECTRUM HEALTH BLODGETT - 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. ALTHOUGH THE POLICY ITSELF IS NOT PUBLICLY POSTED IN WAITING ROOMS OR ATTACHED TO BILLS, THERE IS REFERENCE THAT IT IS AVAILABLE. THE ORGANIZATION IS REVIEWING ITS POLICIES COMPARED TO THE REQUIREMENTS OF THE 501(R) PROPOSED REGULATIONS THAT WERE PUBLISHED ON JUNE 22, 2012.; Means used to determine amounts billed Schedule H, Part V Section B, Line 19d (1) SPECTRUM HEALTH BUTTERWORTH - THE ORGANIZATION DOES NOT CHARGE ANY AMOUNT TO PATIENTS WHO QUALIFY FOR ASSISTANCE.;(2) SPECTRUM HEALTH BLODGETT - THE ORGANIZATION DOES NOT CHARGE ANY AMOUNT TO PATIENTS WHO QUALIFY FOR ASSISTANCE.; Needs assessment. Schedule H, Part VI, Line 2 THE VISION OF "KENT COUNTY WORKING TOGETHER FOR A HEALTHIER TOMORROW" IS A HIGH QUALITY OF LIFE, HEALTH, AND WELL-BEING FOR ALL PEOPLE IN KENT COUNTY. THE KENT COUNTY COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) IS A SYSTEMATIC PROCESS FOR INVOLVING COMMUNITY PARTNERS IN EXAMINING INDICATORS OF HEALTH IN THE POPULATION, GATHERING INPUT FROM COMMUNITY MEMBERS, IDENTIFYING STRATEGIC ISSUES, AND IDENTIFYING STRATEGIC PRIORITIES THAT, IF ADDRESSED, WOULD IMPROVE THE HEALTH OF KENT COUNTY RESIDENTS. COMMUNITY PARTNERS THAT SPONSORED THE CHNA WERE THE KENT COUNTY HEALTH DEPARTMENT AND SEVERAL NON-PROFIT COMMUNITY HOSPITALS. THESE PARTNERS CONVENED A LARGE COALITION THAT REPRESENTED THE AGENCIES AND INSTITUTIONS IN THE COUNTY THAT IMPACT HEALTH. THESE PARTNERS ALSO CONTRACTED WITH THE MICHIGAN PUBLIC HEALTH INSTITUTE TO FACILITATE A COMMUNITY HEALTH NEEDS ASSESSMENT AND HEALTH IMPROVEMENT PLAN FOR KENT COUNTY. THE MISSION OF THE KENT COUNTY CHNA PROCESS IS TO ENSURE THAT THE PEOPLE OF KENT COUNTY ARE EMPOWERED TO ACHIEVE LIFELONG PHYSICAL, MENTAL AND SOCIAL WELLBEING THROUGH 1) EQUAL ACCESS TO HIGH QUALITY, AFFORDABLE HEALTHCARE; 2) A COORDINATED SYSTEM OF CARE THAT IS LOCAL, PREVENTIVE, HOLISTIC, AND PATIENT CENTERED; AND 3) AN ENVIRONMENT THAT SUPPORTS HEALTHY LIVING FOR ALL. FIVE STRATEGIC PRIORITIES THAT ALIGN WITH THE MISSION TO ADDRESS THROUGH A COMMUNITY HEALTH IMPROVEMENT PLAN ARE: 1. INCREASE THE PROPORTION OF COMMUNITY MEMBERS, INCLUDING THE UNINSURED AND THE WORKING POOR, THAT HAVE ACCESS TO AFFORDABLE HEALTHCARE TO PROMOTE EQUAL ACCESS TO HIGH QUALITY, AFFORDABLE HEALTHCARE. 2. INCREASE THE NUMBER OF PROVIDERS AVAILABLE THAT ACCEPT MEDICAID OR OFFER LOW-COST/FREE SERVICES TO PROMOTE A COORDINATED SYSTEM OF CARE THAT IS LOCAL, PREVENTIVE, HOLISTIC, AND PATIENT CENTERED. 3. REDUCE DISPARITIES IN ADEQUACY OF PRENATAL CARE TO PROMOTE A COORDINATED SYSTEM OF CARE THAT IS LOCAL, PREVENTIVE, HOLISTIC, AND PATIENT CENTERED. 4. INCREASE HEALTHY EATING BY ENSURING ACCESS TO HEALTHY FOODS TO PROMOTE AN ENVIRONMENT THAT SUPPORTS HEALTHY LIVING FOR ALL. 5. REDUCE THE DISPARITY IN HEALTH RISK FACTORS AND PROTECTIVE FACTORS BETWEEN STUDENTS TO PROMOTE AN ENVIRONMENT THAT SUPPORTS HEALTHY LIVING FOR ALL. 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 AT A GLANCE 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 METROPOLITAN HEALTH, SPECTRUM HEALTH-BUTTERWORTH CAMPUS, SPECTRUM HEALTH-BLODGETT CAMPUS, 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. 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. 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 $204 MILLION IN COMMUNITY BENEFIT DURING ITS 2012 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. true ASTHMA NETWORK OF WEST MI 390 JEFFERSON SE STE 3 GRAND RAPIDS MI 49503 383351467 501(C)(3) 67730 0 ASTHMA PREVENTION CHERRY STREET HEALTH SERVICES 550 CHERRY ST SE GRAND RAPIDS MI 49503 382853534 501(C)(3) 500000 0 MEDICAL & DENTAL CARE GRAND RAPIDS AFRICAN AMER HEALTH INST 301 MICHIGAN ST NE GRAND RAPIDS MI 49503 061658200 501(C)(3) 30000 0 DISEASE PREVENTION HEALTH INTERVENTION SERVICES 15 ANDRE ST GRAND RAPIDS MI 49503 383273825 501(C)(3) 40000 0 HEALTH ACCESS PROJECT ACCESS 233 EAST FULTON STE 266 GRAND RAPIDS MI 49503 611481271 501(C)(3) 70000 0 COORDINATE MEDICAL CARE MEL TROTTER MINISTRIES SHELTER FOR PUBLIC INEBRIATES 225 COMMERCE SW GRAND RAPIDS MI 49503 381410467 501(C)(3) 70000 0 SOBRIETY FOR CLIENTS WISE PROJECT 935 BAXTER SE GRAND RAPIDS MI 49503 382779590 501(C)(3) 50700 0 CARDIOVASCULAR OUTCOME YMCA 475 LAKE MICHIGAN DR NW GRAND RAPIDS MI 49503 381358058 501(C)(3) 153518 0 FIGHTING OBESITY FIRST STEPS- FIT KIDS PROGRAM 118 COMMERCE SW GRAND RAPIDS MI 49503 270640886 501(C)(3) 25000 0 PEDIATRIC MEDICAL PROGRAM FERGUSON RENAISSANCE CENTER 72 SHELDON SE GRAND RAPIDS MI 49503 383545741 501(C)(3) 135000 0 MEDICAL & MENTAL HEALTH EXODUS BUILDING 322 FRONT AVE SW GRAND RAPIDS MI 49504 270526744 501(C)(3) 15000 0 LIFE RECOVERY SERVICES 11 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 X true true X X X X X true true false false false false false false false ASGHAR KHAGHANI 752266 0 0 0 7524 0 0 0 16158 0 775948 0 0 0 BRIDGET TUCKER-GONDER 0 212885 0 59730 0 1050 0 61758 0 40310 0 375733 0 12084 CHRISTOPHER BASKEL 146827 0 20544 0 3247 0 10807 0 18919 0 200343 0 0 0 CRYSTAL JANUARY-CRAFT 151326 0 24776 0 1247 0 7034 0 15788 0 200171 0 0 0 DAVID BEACH 239317 0 35202 0 4986 0 20906 0 48419 0 348830 0 0 0 DAVID DULL 346489 0 106463 0 25873 0 86165 0 50355 0 615345 0 39891 0 DAVID MATISOFF 467789 0 0 0 7331 0 38550 0 20439 0 534109 0 0 0 EDWARD KOLLER 0 161078 0 25467 0 1140 0 11608 0 15901 0 215194 0 0 ERIC BOONSTRA 118996 0 38300 0 60900 0 3078 0 10626 0 231900 0 0 0 JAMES FUSON MD 0 397784 0 0 0 5834 0 24500 0 14941 0 443059 0 0 JAMES WILSON 518504 0 96977 0 159574 0 78192 0 40742 0 893989 0 36977 0 JASON JOSEPH 165350 0 26420 0 1804 0 6713 0 11831 0 212118 0 0 0 JOHN DYSART 467789 0 0 0 2467 0 33650 0 20439 0 524345 0 0 0 JONATHAN FLYTE 233483 0 77295 0 1252 0 60618 0 41030 0 413677 0 25956 0 JOSEPH FIFER 345996 0 116392 0 2217 0 103657 0 62074 0 630336 0 40380 0 KEVIN SPLAINE 461676 0 119188 0 6830 0 148048 0 66774 0 802517 0 0 0 KRISTINE WHITE 0 220697 0 76339 0 2403 0 78292 0 40682 0 418413 0 27578 LARRY GENZINK 145933 0 20663 0 269 0 10419 0 14928 0 192212 0 0 0 LINDA FOX 26104 0 0 0 91490 0 0 0 0 0 117595 0 0 0 LISA SHANNON 331005 0 82240 0 3717 0 79057 0 50373 0 546391 0 23735 0 MARC CHIRCOP 377526 0 102560 0 16170 0 124745 0 60492 0 681494 0 0 0 MATTHEW DAVIS 0 200957 0 63097 0 2780 0 9117 0 35231 0 311181 0 17294 MATTHEW VAN VRANKEN 775095 0 261387 0 17306 0 214689 0 99714 0 1368191 0 56956 0 PAUL BONIS 264136 0 105006 0 3771 0 67313 0 46865 0 487092 0 26824 0 PETER B LUNDEEN MD 227913 0 30435 0 1107 0 16181 0 13313 0 288949 0 0 0 RALPH ROGERS MD 424038 0 126183 0 14977 0 137510 0 82066 0 784773 0 35541 0 RICHARD BREON 0 1022977 0 544656 0 31588 0 362031 0 181512 0 2142764 0 166670 ROBERT BACH 397195 0 43043 0 2830 0 13475 0 18310 0 474853 0 0 0 ROBERT CONNORS 394914 0 150034 0 3796 0 113782 0 64317 0 726842 0 68291 0 ROBERT HUBERS 313041 0 38610 0 2155 0 17150 0 20130 0 391086 0 0 0 RONALD KNAUS 0 262634 0 78763 0 3791 0 91854 0 55073 0 492115 0 20908 RONALD SAGRITALO 172465 0 38462 0 1434 0 56730 0 38792 0 307883 0 0 0 SCOTT DRESEN 0 200552 0 56028 0 1222 0 70551 0 43700 0 372052 0 9965 SHARI SCHWANZL 201400 0 64817 0 1060 0 61216 0 37068 0 365561 0 22129 0 SHAWN ULREICH 342952 0 97271 0 5313 0 110129 0 56157 0 611822 0 26336 0 STEVEN SARROS 385203 0 93074 0 85654 0 64325 0 43726 0 671982 0 40074 0 TANJA OQUENDO 830 0 0 0 224922 0 0 0 0 0 225753 0 0 0 TRACY MCKNIGHT 152492 0 32367 0 291 0 10987 0 15882 0 212019 0 0 0 WILLIAM JEWELL 215338 0 69656 0 2593 0 58130 0 25881 0 371598 0 22816 0 First-class or charter travel Schedule J, Part I, Line 1a THE TAXPAYER PROVIDED FIRST-CLASS TRAVEL FOR THREE BOARD MEMBERS AND/OR KEY EXECUTIVES. IN CERTAIN LIMITED SITUATIONS WHEN COMMERCIAL AIR TRAVEL WAS NOT AVAILABLE FOR A DESTINATION OR NOT EFFICIENT DUE TO SCHEDULES AND/OR CONNECTIONS, CHARTER AIR TRAVEL WAS UTILIZED. Travel for companions Schedule J, Part I, Line 1a THE TAXPAYER PROVIDED COMPANION TRAVEL FOR TWO BOARD MEMBERS AND/OR EXECUTIVE EMPLOYEES. 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 FIFTEEN BOARD MEMBERS AND/OR 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 (EXECUTIVE COMMITTEE) USES THE FOLLOWING PROCESS FOR DETERMINING COMPENSATION OF EXECUTIVES AT ALL ENTITIES: *LABOR MARKET DATA REFLECTING COMPARABLE ORGANIZATIONS AND JOBS (PREPARED BY INDEPENDENT FIRMS) ARE RELIED UPON. *COMPETITIVE ASSESSMENT REPORTS ARE PROVIDED IN ADVANCE OF EXECUTIVE COMMITTEE MEETINGS. THE COMPETITIVE ASSESSMENT REPORT IS PREPARED BY A NATIONALLY KNOWN INDEPENDENT EXECUTIVE COMPENSATION FIRM AND, FOR FY 2012 (7/1/11-6/30/12), WAS BASED ON THE FOLLOWING INDEPENDENT SURVEYS OF HEALTH CARE EXECUTIVES AT COMPARABLE HEALTH SYSTEMS: * SULLIVAN, COTTER AND ASSOCIATES, INC.: 2011 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS * INTEGRATED HEALTHCARE STRATEGIES: 2011 HEALTHCARE EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2011 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY * TOWERS WATSON DATA SERVICES: 2011/2012 HOSPITAL AND HEALTHCARE MANAGEMENT COMPENSATION REPORT *THESE SOURCES ARE CONSISTENT WITH THOSE USED IN LAST YEAR'S ANALYSIS. *COMPENSATION ADJUSTMENTS ARE APPROVED BY INDEPENDENT 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 ARE NATIONAL AND REFLECT 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 INDICATE CONSISTENCY WITH NATIONAL DATA. THIS PROCESS IS INTENDED TO ASSIST SPECTRUM HEALTH IN QUALIFYING FOR THE REBUTTABLE PRESUMPTION OF REASONABLENESS (INTERMEDIATE SANCTIONS REGULATIONS) AND THE 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 $ 24,674 DAVID DULL $ 59,572 ERIC BOONSTRA $156,475 JAMES WILSON $ 91,490 LINDA FOX $ 82,407 STEVEN SARROS $224,922 TANJA OQUENDO Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b $ 26,824 PAUL BONIS $ 68,291 ROBERT CONNORS $ 39,891 DAVID DULL $ 40,380 JOSEPH FIFER $ 25,956 JONATHAN FLYTE $ 22,816 WILLIAM JEWELL $ 35,541 RALPH ROGERS $ 40,074 STEVEN SARROS $ 22,129 SHERI SCHWANZL $ 23,735 LISA SHANNON $ 56,956 MATTHEW VANVRANKEN $ 36,977 JAMES WILSON $ 12,084 BRIDGET TUCKER-GONDER $ 27,578 KRISTINE WHITE $ 17,294 MATTHEW DAVIS $166,670 RICHARD BREON $ 20,908 RONALD KNAUS $ 9,965 SCOTT DRESEN $ 26,336 SHAWN ULREICH KENT HOSPITAL FINANCING AUTHORITY (2008A & 2008B) 382350002 490580CW5 2008-04-15 471211001 2001B, 2007A & 2007B REFUNDING BOND false false true KENT HOSPITAL FINANCING AUTHORITY (2008C) 382350002 490580CY1 2008-09-09 67200000 1998B REFUNDING BOND false false true KENT HOSPITAL FINANCING AUTHORITY (2011AB) 382350002 490580DQ7 2011-06-22 212859639 2008B5 & 2008B1 REVENUE REFUNDING BONDS false false true KENT HOSPITAL FINANCING AUTHORITY (2011C) 382350002 490580ED5 2011-11-09 75511075 2008B2 REVENUE REFUNDING BONDS false false false 239416142 0 448227143 0 13556465 0 2454359 0 0 0 432216319 0 2008 true false true true 0 0 59742011 0 0 0 0 0 0 0 59742011 0 2008 true false true true 2000000 0 212859639 0 0 0 1359065 0 0 50000574 161500000 0 2010 true false true true 0 0 52270033 0 0 0 578416 0 0 0 51691617 0 2011 true false true true false false false false 0.0000 0.0000 0.0000 true false false false false 0.0000 0.0000 0.0000 true false false false false 0.0000 0.0000 0.0000 true false false false false 0.0000 0.0000 0.0000 true false true false 0.0 false 0.0 false false false false true false false false false false true false 0.0 false 0.0 false false false false false 0.0 false 0.0 false false TAX EXEMPT BONDS PART I BONDS ARE ISSUED ON BEHALF OF AN OBLIGATED GROUP AND DESIGNATED AFFILIATES UNDER 1998 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 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 SPECTRUM HEALTH HOSPITALS. ANY DIFFERENCE BETWEEN THESE LINES REPRESENTS AN AMOUNT OF BOND PROCEEDS THAT IS REPORTED ON SCHEDULE K OF ANOTHER AFFILIATED HOSPITAL WITHIN THE SYSTEM. KENT HOSPITAL FINANCING AUTHORITY (2012AB) 382350002 2012-01-17 112980000 2008A1 & 2008B2 REVENUE REFUNDING BONDS false false false 0 0 112980000 0 0 0 255000 0 0 0 112725000 0 2012 true false true true false false false false 0.0000 0.0000 0.0000 true false true false false false false MICHIGAN PATHOLOGY SERVICES BUSINESS 343561 SEE SCH L, PART V false ORTHOPAEDIC ASSOCIATES BUSINESS 3172484 SEE SCH L, PART V false MALVITZ PHOTOGRAPHYMICHAEL MALVITZ FAMILY 35493 SEE SCH L, PART V false GRAND VALLEY MEDICAL SPECIALISTS BUSINESS 173853 SEE SCH L, PART V false FIFTH THIRD BANK BUSINESS 312301 SEE SCH L, PART V false PEDIATRIC SURGEONS OF WEST MICHIGAN BUSINESS 644454 SEE SCH L, PART V false ANESTHESIA MEDICAL CONSULTANTS BUSINESS 2360404 SEE SCH L, PART V false THOMAS SHANNON FAMILY 19650 SEE SCH L, PART V false HANNAH ULREICH FAMILY 10874 SEE SCH L, PART V false GREATER MICHIGAN LITHOTRIPSY BUSINESS 1396350 SEE SCH L, PART V false MICHIGAN PROFESSIONAL INSURANCE EXCHANGE BUSINESS 214387 SEE SCH L, PART V false WEST MICHIGAN SHARED HOSPITAL LAUNDRY BUSINESS 3333423 SEE SCH L, PART V false PROGRAM SERVICE ACCOMPLISHMENTS FORM 990, PART III, LINE 4A COMMUNITY BENEFIT FOR SPECTRUM HEALTH SYSTEM & AFFILIATES IS DISCLOSED ON THE WEBSITE. Family/business relationships amongst interested persons Form 990, Part VI, Section A, Line 2 MR. MATTHEW VANVRANKEN AND MS. MICHELLE VANDYKE - BUSINESS RELATIONSHIP, MR. RONALD KNAUS, DR. RALPH ROGERS AND MS. BRIDGET TUCKER-GONDER - BUSINESS RELATIONSHIP Significant changes to organizational documents Form 990, Part VI, Section A, Line 4 THE ORGANIZATION'S BYLAWS WERE AMENDED TO REFLECT THAT THE PRESIDENT/CEO OF SPECTRUM HEALTH SYSTEM, WHO SERVES AS AN EX-OFFICIO MEMBER OF THE CORPORATION'S BOARD OF TRUSTESS (WITH FULL VOTING POWER), MAY DESIGNATE AN INDIVIDUAL TO SERVE IN THIS CAPACITY. Classes of members or stockholders Form 990, Part VI, Section A, Line 6 SPECTRUM HEALTH 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 SPECTRUM HEALTH'S BEST INTEREST. 4.THE BOARD OF DIRECTORS OR COMMITTEE SHALL EXERCISE DUE DILIGENCE TO DETERMINE WHETHER SPECTRUM HEALTH 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 SPECTRUM HEALTH'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SPECTRUM HEALTH, 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 SPECTRUM HEALTH COMMITTEES SHALL SET FORTH: A)THE NAMES OF THE PERSONS WHO DISCLOSED A FINANCIAL INTEREST IN A PROPOSED TRANSACTION OR ARRANGEMENT INVOLVING SPECTRUM HEALTH 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. MANAGEMENT 1. UPON ACCEPTANCE OF AN EMPLOYMENT OFFER, EACH MEMBER OF MANAGEMENT WILL COMPLETE A CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRE. A COPY OF THE MEMBER OF MANAGEMENT'S DISCLOSURE QUESTIONNAIRE IS SENT TO THE ORGANIZATIONS LEGAL DEPARTMENT AND IS ALSO MAINTAINED BY HUMAN RESOURCES IN THAT PERSON'S PERSONNEL FILE. 2. ANNUALLY, EACH MEMBER OF MANAGEMENT WILL COMPLETE AN ANNUAL CONFLICT OF INTEREST DISCLOSURE QUESTIONNAIRE ELECTRONICALLY. THE DISCLOSURE QUESTIONNAIRE IS REVIEWED BY THE LEGAL AND ORGANIZATIONAL INTEGRITY 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 AND ORGANIZATIONAL INTEGRITY DEPARTMENTS FOR REVIEW. 4. THE LEGAL AND ORGANIZATIONAL INTEGRITY 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 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 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 2012 (7/1/11-6/30/12), WAS BASED ON THE FOLLOWING INDEPENDENT SURVEYS OF HEALTH CARE EXECUTIVES AT COMPARABLE HEALTH SYSTEMS: * SULLIVAN, COTTER AND ASSOCIATES, INC.: 2011 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS * INTEGRATED HEALTHCARE STRATEGIES: 2011 HEALTHCARE EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2011 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY * TOWERS WATSON DATA SERVICES: 2011/2012 HOSPITAL AND HEALTHCARE MANAGEMENT COMPENSATION REPORT THESE SOURCES ARE CONSISTENT WITH THOSE USED IN LAST YEAR'S ANALYSIS. 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 INDICATE 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"). Average number of hours devoted per week to related organization Form 990, Part VII, Section A, Column B MICHELLE VAN DYKE - 2 PATRICK MILES - 2 DAVID LANGWORTHY - 2 DAVID MACK - 4 DON HENRY - 2 MATTHEW VAN VRANKEN - 8 RICHARD BREON - 50 JOSEPH FIFER - 4 MARC CHIRCOP - 12 RONALD KNAUS - 48 DAVID DULL - 4 RALPH ROGERS, MD - 4 KRISTINE WHITE - 50 LARRY GENZINK - 2 PETER B. LUNDEEN, MD - 2 REPORTED COMPENSATION AND HOURS FORM 990, PART VII, SECTION A, LINE 1A 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 IS FOR THE YEAR ENDED DECEMBER 31, 2011. 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. 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 5 NET UNREALIZED GAINS (LOSSES) ON INVESTMENTS - -4693930; FAS 136 ACTIVITY - 1713499; MINIMUM PENSION LIABILITY - -45743797; RELATED PARTY TRANSFERS - -4020065; OTHER - 2707164; K-1 INCOME/LOSS - 49675; 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 383382353 MANAGEMENT MI 501(C)(3) 11 - Type III - FI NA false SPECTRUM HEALTH FOUNDATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 382752328 PHILANTHRO MI 501(C)(3) 7 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH CONTINUING CARE 750 FULLER AVE NE GRAND RAPIDS MI 49503 383242232 REHAB/CARE MI 501(C)(3) 11 - Type I SPECTRUM HEALTH SYSTEM false PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 HMO MI 501(C)(4) N/A SPECTRUM HEALTH SYSTEM false REED CITY HOSPITAL CORPORATION 300 N PATTERSON RD REED CITY MI 49677 382770076 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false WEST MICHIGAN IMAGING CENTER PO BOX 1009 JENISON MI 49428 382730326 HEALTHCARE MI 501(C)(3) 9 SPECTRUM HEALTH HOSPITALS true NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION 212 S SULLIVAN AVENUE FREMONT MI 49412 381359517 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false ZEELAND COMMUNITY HOSPITAL 8333 FELCH STREET ZEELAND MI 49464 381411184 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH UNITED 615 S BOWER GREENVILLE MI 48838 381358412 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM false SPECTRUM HEALTH PRIMARY CARE PTNRS 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 381358164 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 602920 496901 0.8696 PARTNERSHIP FOR CHILDREN'S HEALTH 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383364676 MGED CARE MI SPECTRUM HEALTH HOSPITALS C CORPORATION 1 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 250857 1509233 0.9827 CAMPUS TOWNE CENTER CONDO ASSC 4868 LAKE MICHIGAN DRIVE ALLENDALE MI 49401 382910067 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 20838 26204 0.75 PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI SPECTRUM HEALTH SYSTEM C CORPORATION 137858928 35117638 1 MICHIGAN MEDICAL PATIENT CARE 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49546 382851295 MEDICAL MI SPECTRUM HEALTH SYSTEM C CORPORATION 7455561 9794290 1 WEST MICHIGAN HEART 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 PHYSICIANS MI SPECTRUM HEALTH SYSTEM C CORPORATION 31682589 8715673 1 SPECTRUM HEALTH PHYSICIAN ALLIANCE 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 371655728 PHYSICIANS MI SPECTRUM HEALTH SYSTEM C CORPORATION 28 1708258 1 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION 35 MICHIGAN ST NE GRAND RAPIDS MI 49503 272193084 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 0 0 0.93 LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION 145 MICHIGAN ST NE GRAND RAPIDS MI 49503 161734150 MGMT MI SPECTRUM HEALTH HOSPITALS C CORPORATION 1294298 638904 0.8284 false false false false false false false false true false true true false false true true false false PRIORITY HEALTH K 302164155 GAAP, CASH, OR FMV PRIORITY HEALTH L 71670727 GAAP, CASH, OR FMV 35 MICHIGAN CONDOMINIUM ASSOCIATION P 785461 GAAP, CASH OR FMV HELEN DEVOS WOMEN AND CHILDREN'S HEALTH PAVILION ASSN P 667145 GAAP, CASH OR FMV THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSN P 2288888 GAAP, CASH OR FMV LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSN P 2816223 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.