2013-05-13T11:56:41-00:00 2012-06-30 PLANTE & MORAN PLLC 27400 NORTHWESTERN HWY SOUTHFIELD MI 48034 990 2011-07-01 262957251 Sun Health Services SUNH 6238326616 PO Box 6030 Sun City West AZ 85376 William T Sellner 2013-05-13 true SUSAN MIENCIER 2483522500 2013-05-13 2011 2016-02-24 21:20:13Z X Ronald D Guziak PO Box 6030 Sun City West AZ 85376 207680384 false X www.sunhealth.org X 2008 AZ Sun Health Services supports and benefits Sun Health Foundation, Banner Health, and other charitable organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the greater Phoenix , Arizona, metropolitan area. 14 13 1 13 0 -269881 3283786 5037722 2560087 14823896 12208958 2308636 1003509 20416318 20810276 12820557 13148870 0 6419587 2751659 0 0 15125225 22505722 34365369 38406251 -13949051 -17595975 326739492 326434377 98624679 146076074 228114813 180358303 X Sun Health champions healthy living, research and superior health care with a vision of being the leading advocate for facilitating healthy living. true false 32267647 13148870 508076 Sun Health Services continues a Support and Maintenance Agreement with Banner Health whereby Sun Health and affiliates agreed to support the capital and operating needs of the former Sun Health health care facilities. Banner Health agreed to certain capital and operating commitments in return for Sun Healths support. During fiscal year 2012, over 13,000,000 was committed to two community based medical centers and a locally based research institute, with emphasis on diseases of the aging. The primary functions of Sun Health Services includes monitoring and ensuring Banners compliance with the covenants set forth in the Support and Maintenance Agreement and oversight and monitoring of the investments portfolio and various parcels of real estate. In addition, certain affiliates of Sun Health Services operate three distinct continuing care retirement communities. See Schedule O for continuation of description. 1374667 2052011 Sun Health Senior Living offers the elderly population an array of living experiences including independent, assisted living, and skilled and rehabilitation nursing care via three Arizona retirement communities Grandview Terrace in Sun City West, La Loma Village in Litchfield Park, and The Colonnade in Sun City Grand. 33642314 true true false false false false false false false false true true false true true true false true false false false false false false false false false true false true false false false false false false false false false false false false true true true true false false true 39 0 true 1 true true true false false false false false false false false false X 14 13 false false false false false true false true true false false true true true true true true true true true true AZ X William T Sellner EVP-CFO 6238326616 PO Box 6030 Sun City West AZ 85376 X A Steven Charney MD 002.00 X X 0 0 0 Leonard F DeBaker 002.00 X X 0 0 0 Sandra L Foell 002.00 X 0 0 0 Frank E Joyce 002.00 X 0 0 0 L Birt Kellam 002.00 X 0 0 0 Richard V Livengood 002.00 X X 0 0 0 Dean L Strycker MD 002.00 X 0 0 0 Cathy Ross 002.00 X 0 0 0 Robert T Root PhD 002.00 X 0 0 0 Darl Bachmann 002.00 X 0 0 0 R Jack Stephenson 002.00 X 0 0 0 Janis Ryan 002.00 X 0 0 0 Jon Jack Wohler 002.00 X X 0 0 0 Leland Peterson - retired 122009 000.00 X 696297 0 85807 William T Sellner 050.00 X 0 434476 76932 Joseph La Rue 050.00 X 0 394983 13021 Pamela Meyerhoffer - retired 92009 000.00 X 0 179948 92725 J Warren Tyler 050.00 X 0 178799 63729 Ronald D Guziak 050.00 X X 0 704408 12526 Jennifer Drago 050.00 X 0 157815 389 Coiya Tompkins 050.00 X 0 138445 6874 696297 2188874 352003 1 true true false Northern Trust 2398 E Camelback Rd Phx AZ 85016 Investment Management 321337 Creative Networks LLC 950 W Behrend Dr Ste 1 Phx AZ 85027 Home Health Care 207624 Drinker Biddle & Reath One Logan Sq 2000 Phila PA 19103 Legal 151029 Plante and Moran PLLC 16060 Collections Ctr Dr Chicago IL 60693 Audit 216640 CornerStone Partners 675 Peter Jefferson Pkwy Charlottesville VA 22911 Investment Management 361828 5 5037722 5037722 Life Care Communities Administration 561000 2052011 2052011 Land Rentals 531190 508076 508076 2560087 5248331 5248331 1644521 641012 1003509 1003509 1003509 193189723 186229096 6960627 6960627 6960627 20810276 2560087 13212467 13148870 13148870 0 0 0 878209 316155 562054 0 1209143 1148509 60634 0 588389 561812 26577 75918 66049 9869 60395 38653 21742 85816 10823 74993 114220 114220 0 1147286 1147286 223556 171303 52253 310204 205200 105004 56845 47530 9315 131833 85735 46098 0 461208 333634 127574 67020 44709 22311 0 0 2708058 2626816 81242 0 259094 230161 28933 0 Deferred UBI Taxes 233182 149236 83946 Taxes and Licenses 113192 72702 40490 Accrued Frozen Pension Plan Funding 16533813 14384417 2149396 0 38406251 33642314 4763937 0 1810039 932142 11639980 17138746 40948384 5695401 34497837 35252983 227626764 210435324 24851184 27516861 10696622 7689061 15617066 27469260 326739492 326434377 6810543 8573007 22307913 27864060 22255291 21716894 47250932 87922113 98624679 146076074 X 215687603 167803204 12427210 12555099 228114813 180358303 326739492 326434377 X -17595975 -30160535 X false true true X false X X X X false false false Sun Health Foundation 237107959 07 true true true 0 Banner Health 450233470 03 true true true 13148870 2 13148870 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false 29423117 29423117 9294692 5294421 4067285 183585 132502 51083 2046990 1391881 1711498 35252983 JDM Partners Opportunity Fund I, LLC 8114700 F Sun Health Senior Living, LLC 2217864 F 203 Grand, LLC 42241 F CT Investors I, LLC 100000 F Rep Sun II, LLC 3936627 F Sun Health Colonnade 8000000 F La Loma Senior Living Services 5105429 F 27516861 Pledged Funds 25718621 Prepaid Expenses 68969 Receivables - Other 1681670 27469260 Due to Banner 392053 Transaction Liability 1899197 Pension Liability 34585891 Swap Liability 24578267 Miscellaneous Liabilities N/P - La Loma 4565470 Northern Trust LOC 14926228 N/P - SCW Communities, LLC 2960000 N/P - GVT Deferred Entrance Fees 2897004 Deferred Tax Liability 1118003 87922113 X 2 Partners earnings are subject to federal and state income taxes. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is determined that it is more likely than not that some portion or all of a deferred tax asset will not be realized. X 2 Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by Sun Health and recognize a tax liability if uncertain positions are taken that more likely than not would not be sustained upon examination by the IRS or other applicable taxing authorities. Management has analyzed the tax positions of Sun Health and has concluded that as of June 30, 2012 and 2011, there are no uncertain positions taken or expected to be taken that X 2 would require recognition of a liability or disclosure in the combined financial statements. Sun Health is subject to routine audits by taxing jurisdictions however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examinations for years prior to June 30, 2009 for Sun Health Services, Sun Health Foundation and La Loma Senior Living, and December 31, 2008 for Sun Health Partners, Grandview Terrace, Sun Health Colonnade and X 2 Sun Health Senior Living. The provision for income taxes, included in services and other in the accompanying combined statement of activities and changes in net assets, for the year ended June 30, 2012, consists of the following Current Federal - 240,000 State - 25,000 and Total Current Provision - 265,000. Deferred Federal - 195,000 and State - none. Total Deferred Provision equaled 195,000 and Total Tax Provision equaled 460,000. X 2 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Sun Healths deferred tax assets and liabilities at June 30, 2012 are attributed to the following temporary differences X 2 Noncurrent Deferred Tax Asset Charitable contribution Carryforward, 6,000 and Net Operating Loss Carryforward, 707,000 for a Total Noncurrent Deferred Tax Asset of 713,000. Noncurrent Deferred Tax Liability - Book/Tax Difference on Flow-Through Income totaled 5,595,000 with a total Net Deferred Tax Liability of 4,882,000. As of June 30, 2012, Sun Health has a state net operating loss carryforward of 6,637,000 and a federal net operating loss carryforward of 1,214,000. X 2 The net operating loss carryforwards for the state will begin to expire in 2016 and the federal in 2031. true Banner Health 1441 N 12th St Phx AZ 85006 450233470 501c3 13148870 Health Care Funding 1 I 2 Grants to Banner Health and other organizations engaged in promoting or enhancing the delivery of health care will be subject to written agreements. The Organization will provide funds to Banner Health in fulfillment of the support obligations of the Sun Health Support Parties including Sun Health Foundation pursuant to the Support and Maintenance Agreement. X X X X X X true true false false false false false false false Leland Peterson - retired 122009 696297 85807 782104 William T Sellner 255672 155704 23100 70704 6228 511408 Joseph La Rue 237415 133946 23622 9287 3734 408004 Pamela Meyerhoffer - retired 92009 179948 92223 502 272673 J Warren Tyler 117639 4773 56387 60696 3033 242528 Ronald D Guziak 398017 245874 60517 9800 2726 716934 Jennifer Drago 129500 20313 8002 389 158204 I 4a In connection with the Banner Health transaction, the following individuals received change-in-control/serverance payments during the calendar year 2011 Mr. Leland Peterson and Ms.Pamela Meyerhoffer. The severance agreement associated with the change-in-control was subject to an independent consultants review with oversight by the Board of Directors through the Management Review Committee. Ms. Meyerhoffers payments ended in 2011 in accordance with the agreement. I 4b Mr. William Sellner, Mr. Joseph LaRue and Mr. Ronald Guziak participate in a board endorsed 457b plan. Each participant deferred 16,500 into the plan. A non-qualified 457f plan is board endorsed for certain executives. This plan carries a substantial risk of forfeiture in that vesting only occurs the earlier of 5 years from the date of deposit, age 62 or Rule of 80 age and service equals 80 or more. Mr. Ronald Guziak received a 457f payment of 41,261. I 4b All deposits are employer contributions. Should a participant voluntarily terminate employment prior to a deposit vesting, the deposit is forfeited. All deposits are paid out and taxed upon vesting. II Effective 9/2/08, the compensation for officers and key employees with the exception of Mr. Leland Peterson was paid by Banner Health through an agreement between Banner Health and Sun Health Services. Banner Health is a separate related 501c3 organization. Sun Health Services reimburses Banner Health for the amounts paid. II Mr. Petersons serverance agreement and benefits were subject to an independent consultants review with oversight by the Board of Directors through the Management Review Committee. The salary and benefits information disclosed on Schedule J, Part II, represents the aggregate compensation to individuals for their services to Sun Health Services, Sun Health Foundation, Sun Health Partners, La Loma Senior Living, The Colonnade and Grandview Terrace II the latter three being three distinct continuing care retirement communities. II See Schedule O for a disclosure of hours devoted to related organizations. Form 990 Part III 2 Sun Health Services developed and implemented two community-based health programs, Care Transitions and Medication Management. The Care Transitions program serves local medical center patients age 55 and up by giving individuals the support, guidance and resources to transition from the hospital setting and/or coping with chronic health issues. The program contributes to a significant reduction in hospital readmissions. Medication Management provides participants over the age of 13 access to a free customized medication profile detailing their health and drug history. For a nominal fee, individuals have access to pharmacist reviews and/or a special pill box that monitors their medication usage electronically. Form 990 Part III 4a The executive and board leadership of Sun Health Services may from time to time assist Sun Health Foundation in its fund development activities and other charitable tax-exempt organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the Greater Phoenix, Arizona, metropolitan area. Form 990 Part VI 7a The Directors are ratified by Sun Health Foundations Board of Trustees. Form 990 Part VI 11b The Form 990 is prepared by accounting personnel and reviewed by the Executive Vice President/Chief Financial Officer. A review is then conducted by the organizations independent accountant, Plante Moran, PLLC. The return is then reviewed by the Audit Committee and provided to the Board for comments prior to the filing deadline. Form 990 Part VI 12c On an annual basis board members and management staff are required to submit a conflict of interest questionaire for board and management review as appropriate. The questionaire provides specific instructions that the form must be updated if any situation arises during the year that might constitute a conflict. The Audit Committee has responsibility for intervening if necessary on conflict of interest matters. Any individual found to be in conflict will abstain from the decision making process. Form 990 Part VI 15 The Management Review Committee, as provided in the organizations by-laws, has a responsibility for the compensation of all senior managment. Annually, salaries of senior management are reviewed by the organizations Board of Directors. The deliberation and decision of compensation arrangements was contemporaneously substantiated in the organizations minutes. An independent compensation consultant is retained by the organization periodically to assist with the determination of the compensation and benefits program for all senior management. The compensation process was last undertaken in 2012. Form 990 Part VI 19 Governing documents and conflict of interest policies are generally not made available to the public. Financial statements historically have been made available at public meetings and upon reasonable request. Form 990 Part VII 1a These individuals devote weekly time to the following organizations William T. Sellner, 40 hours Sun Health Services, 6 hours Sun Health Partners and 4 hours Sun Health Foundation Joseph LaRue, 40 hours Sun Health Partners and 10 hours Sun Health Services Ronald D. Guziak, 28 hours Sun Health Services, 20 hours Sun Health Foundation and 2 hours Sun Health Partners and J. Warren Tyler, 46 hours Sun Health Services and 4 hours Sun Health Partners. All of the individuals contribute time to Sun Health Senior Living and to Senior Living entities, including La Loma Senior Living, The Colonnade and Grandview Terrace. The following board members devoted time to Sun Health Foundation, a related organization Darl Bachmann, 6 hours Sandra L. Foell, 5 hours L. Birt Kellam, 2 hours Cathy E. Ross, 2 hours Janis Ryan, 2 hours and Jon Wohler, 2 hours. Form 990 Part XI 5 Other changes in net assets consist of the following Unrealized losses of 10,885,779 change in swap value of 11,410,991 change in investment value of 642,839 Grandview Terrace partnership interest transfer of 2,433,555 from Sun Health Partners to Sun Health Services, loss on acquisition of Roskamp Sun Health Management Services, LLP of 1,440,359 and funds invested in Grandview Terrace of 9,499,800. Form 990 Part III Line 2 Sun Health Services developed and implemented two community-based health programs, Care Transitions and Medication Management. The Care Transitions program serves local medical center patients age 55 and up by giving individuals the support, guidance and resources to transition from the hospital setting and/or coping with chronic health issues. The program contributes to a significant reduction in hospital readmissions. Medication Management provides participants over the age of 13 access to a free customized medication profile detailing their health and drug history. For a nominal fee, individuals have access to pharmacist reviews and/or a special pill box that monitors their medication usage electronically. Form 990 Part III Line 4a The executive and board leadership of Sun Health Services may from time to time assist Sun Health Foundation in its fund development activities and other charitable tax-exempt organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the Greater Phoenix, Arizona, metropolitan area. Form 990 Part VI Section A Line 7a The Directors are ratified by Sun Health Foundations Board of Trustees. Form 990 Part VI Section B Line 11b The Form 990 is prepared by accounting personnel and reviewed by the Executive Vice President/Chief Financial Officer. A review is then conducted by the organizations independent accountant, Plante Moran, PLLC. The return is then reviewed by the Audit Committee and provided to the Board for comments prior to the filing deadline. Form 990 Part VI Section B Line 12c On an annual basis board members and management staff are required to submit a conflict of interest questionaire for board and management review as appropriate. The questionaire provides specific instructions that the form must be updated if any situation arises during the year that might constitute a conflict. The Audit Committee has responsibility for intervening if necessary on conflict of interest matters. Any individual found to be in conflict will abstain from the decision making process. Form 990 Part VI Section B Line 15 The Management Review Committee, as provided in the organizations by-laws, has a responsibility for the compensation of all senior managment. Annually, salaries of senior management are reviewed by the organizations Board of Directors. The deliberation and decision of compensation arrangements was contemporaneously substantiated in the organizations minutes. An independent compensation consultant is retained by the organization periodically to assist with the determination of the compensation and benefits program for all senior management. The compensation process was last undertaken in 2012. Form 990 Part VI Section C Line 19 Governing documents and conflict of interest policies are generally not made available to the public. Financial statements historically have been made available at public meetings and upon reasonable request. Form 990 Part VII Section A Line 1a These individuals devote weekly time to the following organizations William T. Sellner, 40 hours Sun Health Services, 6 hours Sun Health Partners and 4 hours Sun Health Foundation Joseph LaRue, 40 hours Sun Health Partners and 10 hours Sun Health Services Ronald D. Guziak, 28 hours Sun Health Services, 20 hours Sun Health Foundation and 2 hours Sun Health Partners and J. Warren Tyler, 46 hours Sun Health Services and 4 hours Sun Health Partners. All of the individuals contribute time to Sun Health Senior Living and to Senior Living entities, including La Loma Senior Living, The Colonnade and Grandview Terrace. The following board members devoted time to Sun Health Foundation, a related organization Darl Bachmann, 6 hours Sandra L. Foell, 5 hours L. Birt Kellam, 2 hours Cathy E. Ross, 2 hours Janis Ryan, 2 hours and Jon Wohler, 2 hours. Form 990 Part XI Line 5 Other changes in net assets consist of the following Unrealized losses of 10,885,779 change in swap value of 11,410,991 change in investment value of 642,839 Grandview Terrace partnership interest transfer of 2,433,555 from Sun Health Partners to Sun Health Services, loss on acquisition of Roskamp Sun Health Management Services, LLP of 1,440,359 and funds invested in Grandview Terrace of 9,499,800. Sun Health Senior Living LLC PO Box 6030 Sun City West AZ 85376 455456931 Administration AZ 2052011 1446510 Sun Health Services Sun Health Foundation PO Box 6030 Sun City West AZ 85376 237107959 Fundraising AZ 501c3 7 N/A false Banner Health 1441 N 12th St Phoenix AZ 85006 450233470 Hospital Operator AZ 501c3 3 N/A false La Loma Senior Living Services Inc 14154 Denny Boulevard Litchfield Park AZ 85340 861028348 Senior Living AZ 501c3 9 Sun Health Svcs true Sun Health Colonnade 19116 Colonnade Way Surprise AZ 85374 453137352 Senior Living AZ 501c3 9 Sun Health Svcs true Sun Health Grandview Terrace LLP PO Box 6030 Sun City West AZ 85376 860795477 Senior Community AZ Sun Health Services Related 183424 6223906 false true 0.50000 Sun Health Partners PO Box 6030 Sun City West AZ 85376 860796950 Investments AZ Sun Health Services C Corp 742422 5580306 1.00000 false true true true false false false false true true false true true false true false false false La Loma Senior Living Services Inc d 43836000 Actual Debt Sun Health Foundation c 5037722 Cash Banner Health b 13148870 Cash Banner Health o 2361401 Cash Sun Health Grandview Terrace LLP i 463076 Cash La Loma Senior Living Svcs Inc p 3139392 Cash Sun Health Grandview Terrace LLP o 1003545 Cash Sun Health Grandview Terrace LLP o 8452435 Cash Sun Health Partners h 2433555 Allocated Cost Roskamp Sun Health Management Services LLP g -1440359 Appraised Values La Loma Senior Living Services Inc b 317503 In-kind La Loma Senior Living Services Inc d 4769487 Negotiated Sun Health Colonnade p 1065384 Cash Sun Health Colonnade k 92000 Cash V 1d In connection with Sun Health Services becoming sole member of La Loma Senior Living Services, Inc., Sun Health Services agreed to serve as a guarantor of the debt.