2013-05-05T18:00:03-05:00 2012-06-30 CROWE HORWATH LLP 70 West Madison Street Suite 700 Chicago IL 606024903 990 2011-07-01 383382353 SPECTRUM HEALTH SYSTEM SPEC 6167747322 100 Michigan Ave NE MC 60 Grand Rapids MI 49503 MICHAEL FREED 2012-11-16 false Geralyn R Hurd P00933422 3128997000 2011 2016-02-25 16:41:14Z RICHARD C BREON 100 Michigan Ave NE MC 60 Grand Rapids MI 49403 190523143 false X WWW.SPECTRUMHEALTH.ORG X 1997 MI TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE BY PROVIDING ADMINISTRATIVE AND SUPPORTING SERVICES TO THE HEALTHCARE SYSTEM AFFILIATED ENTITIES. 13 10 1431 0 2165 -452 0 1974147 74636550 184689052 1124526 2049952 117280 1809992 75878356 190523143 0 494454 0 0 43772292 119303189 0 0 0 60745635 63833880 104517927 183631523 -28639571 6891620 840206700 934496786 825198660 973082712 15008040 -38585926 TO IMPROVE THE HEALTH OF THE COMMUNITIES WE SERVE. false false 182548873 494454 184689052 SPECTRUM HEALTH SYSTEM PROVIDES COMMON MANAGEMENT OF THE NOT-FOR-PROFIT HEALTH CARE SYSTEM ACTIVITIES CARRIED ON BY SUPPORTED ORGANIZATIONS. THE SUPPORTED ORGANIZATIONS INCLUDE NINE HOSPITALS, 183 SERVICE SITES, AND 1,938 LICENSED BEDS SYSTEMWIDE WITH FACILITIES THAT INCLUDE A MEDICAL CENTER, REGIONAL COMMUNITY HOSPITALS, A DEDICATED CHILDREN'S HOSPITAL, A MULTISPECIALTY MEDICAL GROUP, AFFILIATED PHYSICIANS AND A NATIONALLY RECOGNIZED HEALTH PLAN. 182548873 true true false true false false false false false true false true true true false false true false false true false false false false false false true false true false false false false false false true true false false false false true true true true true false true X 194 0 true 1431 true true true true CJ false false false false false false false false false X 13 10 true false true false false false false true true false false true true true true true true true true true true X Jill B Ferris 6167745115 1840 Wealthy St SE MC 498 Grand Rapids MI 49506 X EARL HOLTON 2.00 X X 0 0 0 ELIZABETH NICKELS 2.00 X X 22500 0 0 RICHARD BREON 42.00 X X 1599221 0 543543 RICHARD DEVOS JR 2.00 X X 0 0 0 TIMOTHY O'DONOVAN 2.00 X X 0 0 0 A ROBERT VAN TUINEN MD 2.00 X 18250 275840 34992 BIRGIT KLOHS 2.00 X 19250 0 0 BRIAN HARRIS 2.00 X 22000 0 0 DAN GAYDOU 2.00 X 0 0 0 MICHELLE VAN DYKE 2.00 X 0 0 0 REX KILLIAN 2.00 X 19750 0 0 RICHARD DEVOS SR 2.00 X 0 0 0 ROBERT HOOKER 2.00 X 18250 0 0 ROBERT ROTH 2.00 X 0 22500 0 STEPHEN RECHNER MD 2.00 X 16750 0 0 DAVID LEONARD 50.00 X 532719 0 163769 MICHAEL P FREED 48.00 X 782909 0 237139 JOHN MOSLEY 50.00 X 946140 0 110991 PATRICK O'HARE 50.00 X 459182 0 157505 RONALD KNAUS 48.00 X 345189 0 146926 DANIEL OGLESBY 50.00 X 1229221 0 130518 JOHN BYRNES MD 48.00 X 547555 0 178024 JOHN MACKEIGAN MD 48.00 X 739087 0 138371 KRISTINE WHITE 50.00 X 299439 0 118974 MICHAEL ROSENCRANCE 50.00 X 350609 0 131487 7968020 298340 2092239 116 true true false SOFTWARE INFORMATION SYS LL PO BOX 890500 CHARLOTTE NC 282890500 IT CONSULTING 2016672 DATA STRATEGY 4020 E BELTLINE NE SUITE 201 GRAND RAPIDS MI 49525 IT CONSULTING 1405152 PRESS GANEY ASSOCIATES INC PO BOX 88335 MILWAUKEE WI 532880335 CONSULTING 670450 SOAP TRANSCRIPTION SERVICES 118 E SUPERIOR STREET WAYLAND MI 493490373 MEDICAL TRANSCRIPTION 552840 IMPACT ADVISORS 931 W 75TH STREET SUITE 137-304 NAPERVILLE IL 60565 CONSULTING 389450 31 1974147 1974147 MANAGEMENT FEE REVENUE 561000 184242326 184242326 SHARED SERVICES REVENUE 561000 383999 383999 62727 55390 2165 5172 184689052 2049952 2049952 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS INCOME 900099 1809992 1809992 0 0 0 0 1809992 190523143 184681715 2165 3865116 494454 494454 0 0 0 6161973 6155952 6021 321984 321774 210 89255131 89196908 58223 3437692 3426210 11482 12942858 12942858 7183551 7183551 0 1093109 127628 965481 0 293541 293541 0 0 13350000 13317096 32904 4999206 4999206 5190534 5190368 166 24743845 24743845 0 6478693 6475793 2900 2084959 2084837 122 0 306144 306086 58 -25210 -25210 0 1877027 1872091 4936 -3314687 -3314687 MISCELLANEOUS EXPENSE 6597270 6597123 147 MEDICAL SUPPLIES 92661 92661 PROPERTY TAXES 66788 66788 0 0 0 0 183631523 182548873 1082650 0 0 19245432 10664238 179940 45189196 43225201 6775451 12701994 6510728 3848975 5042528 2661753 667656484 703590182 55498487 9694316 0 55452537 40619182 96506565 840206700 934496786 25051991 27072073 190460 12500000 12500000 787646669 933320179 825198660 973082712 X 15008040 -38585926 15008040 -38585926 840206700 934496786 X 6891620 -60485586 X false true true X false X X X false false false SPECTRUM HEALTH HOSPITALS 381360529 3 true true true 161508558 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION 381359517 3 true true true 37102 REED CITY HOSPITAL CORPORATION 382770076 3 true true true 165543 SPECTRUM HEALTH FOUNDATION 382752328 7 true true true 12000 SPECTRUM HEALTH PRIMARY CARE PARTNERS 381358164 3 true true true 21532212 SPECTRUM HEALTH UNITED 381358412 3 true true true 37882 ZEELAND COMMUNITY HOSPITAL 381411184 3 true true true 0 7 183293297 SUPPLEMENTAL INFORMATION., SCHEDULE A, PART IV, SPECTRUM HEALTH SYSTEM IS THE PARENT ORGANIZATION AND SUPPORTING ORGANIZATION TO THE HEALTH SYSTEM. THE PURPOSES OF THIS ORGANIZATION, AS DEFINED IN THE ARTICLES OF INCORPORATION, ARE AS FOLLOWS: PURPOSES 2.1. THE PURPOSES FOR WHICH THE CORPORATION IS ORGANIZED ARE TO OPERATE EXCLUSIVELY FOR THE BENEFIT OF, TO PERFORM THE FUNCTIONS OF, AND TO CARRY OUT ALL OF THE PURPOSES OF SPECTRUM HEALTH HOSPITALS, NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION, REED CITY HOSPITAL CORPORATION, SPECTRUM HEALTH FOUNDATION, SPECTRUM HEALTH PRIMARY CARE PARTNERS, SPECTRUM HEALTH UNITED, AND ZEELAND COMMUNITY HOSPITAL (THE "SUPPORTED ORGANIZATIONS") ALL OF WHICH ARE DESCRIBED IN SECTION 501(C)(3) AND EITHER SECTION 509(A)(1) OR SECTION 509(A)(2) OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED OR COMPARABLE PROVISIONS OF SUBSEQUENT LEGISLATION (THE "CODE"). SUBJECT TO AND IN FURTHERANCE OF THE FOREGOING, THE PURPOSES OF THE CORPORATION SHALL BE: 2.1.1. TO FORMULATE AND IMPLEMENT POLICIES AND PROGRAMS DESIGNED TO ENABLE AND/OR CAUSE THE SUPPORTED ORGANIZATIONS TO FUNCTION AS A COORDINATED HEALTH CARE DELIVERY SYSTEM , TO PROVIDE DIRECTION AND MANAGEMENT TO THE SUPPORTED ORGANIZATIONS, AND TO ACT AND/OR MAKE DECISIONS FOR THE BENEFIT OF SUCH SUPPORTED ORGANIZATIONS. 2.1.2. TO ESTABLISH AND MAINTAIN, EITHER DIRECTLY, THROUGH SUPPORTED ORGANIZATIONS OR IN COOPERATION WITH OTHER ORGANIZATIONS, SUCH FACILITIES AND SERVICES FOR THE CARE OF PERSONS SUFFERING FROM ILLNESS, INJURY OR DISABILITY, THE ELDERLY AND THE INDIGENT AND FOR THE PRESERVATION AND IMPROVEMENT OF HEALTH AS THE BOARD OF DIRECTORS MAY DETERMINE, INCLUDING, WITHOUT LIMITATION: 2.1.2.1. HOSPITALS FOR THE INPATIENT OR OUTPATIENT CARE OF PERSONS SUFFERING FROM ILLNESS, INJURY AND DISABILITY, FOR THE PREVENTION OF ILLNESS, INJURY AND DISABILITY AND FOR THE MAINTENANCE OF HEALTH. 2.1.2.2. FACILITIES PROVIDING AMBULATORY CARE, NURSING CARE, REHABILITATION AND OTHER SERVICES. 2.1.2.3. CLINICS THROUGH WHICH PHYSICIANS AND OTHER PROVIDERS RENDER PROFESSIONAL MEDICAL SERVICES. 2.1.2.4. OTHER ACTIVITIES AND PROGRAMS DESIGNED AND CARRIED ON TO PROMOTE THE GENERAL HEALTH OF THE COMMUNITY. 2.1.3. TO PROMOTE AND CARRY ON SUCH SCIENTIFIC RESEARCH AS THE BOARD OF DIRECTORS MAY DETERMINE WITH RESPECT TO THE CAUSE, TREATMENT AND PREVENTION OF ILLNESS AND INJURY, THE IMPROVEMENT OF PUBLIC HEALTH AND OTHER MATTERS. 2.1.4. TO PARTICIPATE IN AND TO CARRY ON SUCH ACTIVITIES AS THE BOARD OF DIRECTORS MAY DETERMINE FOR THE EDUCATION OF PHYSICIANS, NURSES, OTHER PROFESSIONAL AND PARAPROFESSIONAL PERSONNEL AND THE PUBLIC ABOUT RENDERING CARE TO THE SICK, INJURED AND DISABLED, ABOUT PREVENTION OF ILLNESS AND INJURY AND ABOUT THE PROMOTION OF HEALTH. 2.1.5. TO CONDUCT ACTIVITIES, EITHER DIRECTLY, THROUGH RELATED ORGANIZATIONS OR IN COOPERATION WITH ORGANIZATIONS EXEMPT FROM TAX UNDER SECTION 501 (C)(3) OF THE CODE OR COMPARABLE PROVISIONS OF SUBSEQUENT LEGISLATION IN ORDER TO RAISE FUNDS TO FURTHER THE PURPOSES OF THE CORPORATION, SUBJECT, HOWEVER, TO ALL LIMITATIONS ON THE NATURE OR EXTENT OF SUCH ACTIVITIES APPLICABLE, FROM TIME TO TIME, TO ORGANIZATIONS DESCRIBED IN SECTIONS 501(C)(3) AND 509(A)(3) OF THE CODE. 2.1.6. TO ACQUIRE, TO OWN, TO DISPOSE OF AND TO DEAL WITH REAL AND PERSONAL PROPERTY AND INTERESTS THEREIN AND TO APPLY GIFTS, GRANTS, BEQUESTS AND DEVISES AND THE PROCEEDS THEREOF IN FURTHERANCE OF THE PURPOSES OF THE CORPORATION. 2.1.7. TO DEAL WITH AND DISTRIBUTE THE CORPORATION'S INCOME AND ASSETS IN SUCH MANNER AS IN THE JUDGMENT OF THE BOARD OF DIRECTORS WILL BEST PROMOTE ITS OBJECTIVES AND PURPOSES, WITHOUT LIMITATION EXCEPT SUCH, IF ANY, AS MAY BE CONTAINED IN INSTRUMENTS UNDER WHICH SUCH PROPERTY IS CONVEYED TO THE CORPORATION. 2.1.8. TO DO SUCH THINGS AND TO PERFORM SUCH ACTS TO ACCOMPLISH ITS PURPOSES AS ARE PERMITTED BY SECTIONS 501(C)(3) AND 509(A)(3) OF THE CODE, WITH ALL THE POWERS CONFERRED ON NONPROFIT CORPORATIONS BY THE LAWS OF THE STATE OF MICHIGAN. THE AMOUNTS REPORTED IN SCHEDULE A, PART I, LINE 11H, COLUMN (VII) RELATE TO EXPENSES INCURRED BY THE ORGANIZATION ON BEHALF OF THE SUPPORTED ENTITIES (REIMBURSED IN WHOLE OR IN PART THROUGH MANAGEMENT FEES)., RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false true false false false false true 63421 false true 230120 293541 false Description of the activities reported on Lines 1a through 1i Schedule C, Part II-B, Line 1 SPECTRUM HEALTH SYSTEM EMPLOYED AS PAID MANAGEMENT A DIRECTOR OF GOVERNMENT AFFAIRS, WHO IS CHIEFLY RESPONSIBLE FOR GOVERNMENT AFFAIRS ACTIVITIES. ADDITIONALLY THE ORGANIZATION EMPLOYED A SENIOR VICE PRESIDENT, COMMUNITY RELATIONS TO OVERSEE THIS ROLE. OTHER EXECUTIVE STAFF WERE ENGAGED ON A VERY LIMITED BASIS FOR LOBBYING PURPOSES. SPECTRUM HEALTH SYSTEM RETAINED FEDERAL AND STATE LEVEL MULTI-CLIENT LOBBY FIRMS. THE FUNCTION OF THEIR RESPECTIVE DUTIES INVOLVED DIRECT CONTACT WITH LEGISLATORS, THEIR STAFF, GOVERNMENT OFFICIALS, OR A LEGISLATIVE BODY ON NUMEROUS LEGISLATIVE AND REGULATORY ISSUES OF INTEREST TO THE ORGANIZATION. THIS AMOUNT IS REPORTED IN LINE 1I, "OTHER ACTIVITIES." DIRECT CONTACT WITH QUALIFYING INDIVIDUALS INCLUDED SENDING LETTERS, PUBLICATIONS, MAKING PHONE CALLS OR MEETING WITH GOVERNMENT OFFICIALS, THEIR STAFF OR LEGISLATORS. 0 206107 44744 161363 212159 18017 194142 6092462 3786214 2306248 0 2661753 INVESTMENT IN AFFILIATES 55452537 C 55452537 DUE FROM AFFILIATES 32800804 OTHER ASSETS 34404975 RESTRICTED ASSETS 29300786 96506565 0 DUE TO AFFILIATES 730925023 SWAP MARKET VALUE 129588405 OTHER LIABILITES 12025609 PENSION 15889201 INSURANCE 44891941 933320179 FIN 48 (ASC 740) 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. CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 317706 0 0 317706 false false true false false false Method used to account for expenditures on organization's financial statements Schedule F, Part I, Line 3 CENTRAL AMERICA AND THE CARIBBEAN: ACCRUAL true SPECTRUM HEALTH HOSPITALS 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 381360529 501(C)(3) 494454 0 MEDICAL CARE 1 0 Procedures for monitoring use of grant funds Schedule I, Part I, Line 2 GRANTS ARE RECEIVED BY THE HEALTHIER COMMUNITIES DEPARTMENT WITHIN SPECTRUM HEALTH SYSTEM AND THEY ARE ADMINISTERED/AWARDED BY SPECTRUM HEALTH HOSPITALS, A RELATED TAX-EXEMPT ORGANIZATION. FUNDS ARE MONITORED THE RECIPIENTS ARE REQUIRED TO SUBMIT A BUDGET REPORT TO SPECTRUM HEALTH ON A QUARTERLY BASIS, WHICH ITEMIZES EXPENDITURES. REPORTS ARE 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 A ROBERT VAN TUINEN MD 18250 272299 0 0 0 3541 0 21522 0 13470 18250 310832 0 0 DANIEL OGLESBY 217015 0 769023 0 243183 0 79657 0 50861 0 1359738 0 539401 0 DAVID LEONARD 367943 0 148573 0 16204 0 96515 0 67254 0 696488 0 47161 0 JOHN BYRNES MD 384593 0 146088 0 16874 0 115522 0 62502 0 725579 0 43560 0 JOHN MACKEIGAN MD 480772 0 236230 0 22085 0 69859 0 68512 0 877458 0 104447 0 JOHN MOSLEY 375156 0 550690 0 20293 0 55533 0 55458 0 1057131 0 450615 0 KRISTINE WHITE 220697 0 76339 0 2403 0 78292 0 40682 0 418413 0 27578 0 MICHAEL P FREED 566815 0 201134 0 14960 0 160674 0 76465 0 1020048 0 47970 0 MICHAEL ROSENCRANCE 282604 0 64529 0 3476 0 75482 0 56005 0 482096 0 0 0 PATRICK O'HARE 350439 0 93341 0 15402 0 101935 0 55570 0 616686 0 0 0 RICHARD BREON 1022977 0 544656 0 31588 0 362031 0 181512 0 2142764 0 166670 0 RONALD KNAUS 262634 0 78763 0 3791 0 91854 0 55073 0 492115 0 20908 0 First-class or charter travel Schedule J, Part I, Line 1a THE ORGANIZATION PROVIDED FIRST-CLASS TRAVEL FOR CERTAIN BOARD MEMBERS AND KEY EXECUTIVE EMPLOYEES. 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 BY CERTAIN KEY EXECUTIVE EMPLOYEES. Travel for companions Schedule J, Part I, Line 1a THE ORGANIZATION PROVIDED COMPANION TRAVEL FOR CERTAIN EXECUTIVE EMPLOYEES AND BOARD MEMBERS. THE RELATED AMOUNTS WERE TREATED AS TAXABLE COMPENSATION AND INCLUDED IN FORM W-2 OF FORM 1099 ACCORDINGLY. Health or social club dues or initiation fees Schedule J, Part I, Line 1a THE ORGANIZATION PROVIDED HEALTH CLUB DUES FOR CERTAIN EXECUTIVE EMPLOYEES. THESE AMOUNTS WERE TREATED AS TAXABLE COMPENSATION AND INCLUDED IN FORM W-2. Severance or change-of-control payment Schedule J, Part I, Line 4a $192,826 DANIEL OGLESBY Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b $539,401 DANIEL OGLESBY $ 47,161 DAVID LEONARD $ 43,560 JOHN BYRNES $104,447 JOHN MACKEIGAN $450,615 JOHN MOSLEY $ 27,578 KRISTINE WHITE $ 47,970 MICHAEL FREED $166,670 RICHARD BREON $ 20,908 RONALD KNAUS THIS QUESTION IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, DO "PARTICIPATE IN" A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. SOME INDIVIDUALS RECEIVED DISTRIBUTIONS DURING THE YEAR (AS REPORTED ON THIS LINE) WHEREAS OTHERS PARTICIPATED IN THE PLAN BUT DID NOT RECEIVE DISTRIBUTIONS. DISTRIBUTIONS REPORTED ON THIS LINE ARE ALSO INCLUDED IN SCHEDULE J, PART II, COLUMN F AS COMPENSATION REPORTED IN A PRIOR YEAR. MS ALLYSON BREON FAMILY 59934 SEE SCHEDULE L, PART V false MS CHERYL FREED FAMILY 48051 SEE SCHEDULE L, PART V false MS CHRISTINA GAYDOU-PITTMAN FAMILY 87198 SEE SCHEDULE L, PART V false MR BRADLEY PITTMAN FAMILY 62923 SEE SCHEDULE L, PART V false MICHIGAN PROFESSIONAL INSURANCE EXCHANGE BUSINESS 120576 SEE SCHEDULE L, PART V false MR MARK BREON FAMILY 63878 SEE SCHEDULE L, PART V PRIORITY HEALTH MANAGED BENEFITS BUSINESS 2320339 SEE SCHEDULE L, PART V INDIRECT EMPLOYEES FORM 990, PART V, LINE 2A THE ORGANZATION MAY HAVE INDIRECT EMPLOYEES. COMPENSATION FOR THESE EMPLOYEES IS PAID BY A RELATED ORGANIZATION. AN ALLOCATION OF AMOUNTS PAID FOR INDIRECT EMPLOYEES IS PURSUANT TO A MANAGEMENT SERVICES CONTRACT AND IS INCLUDED ON LINE 5-10 OF PART IX. Family/business relationships amongst interested persons Form 990, Part VI, Section A, Line 2 MR. RICHARD DEVOS, SR. AND MR. RICHARD DEVOS, JR. - FAMILY RELATIONSHIP, MR. DAVID LEONARD AND MR. PATRICK O'HARE - BUSINESS RELATIONSHIP, MS. ELIZABETH NICKELS AND MR. TIMOTHY O'DONOVAN - BUSINESS RELATIONSHIP, MR. RICHARD BREON, MR. MICHAEL FREED, AND MR. ROBERT ROTH - BUSINESS RELATIONSHIP, MR. MICHAEL FREED AND MR. RONALD KNAUS - BUSINESS RELATIONSHIP Significant changes to organizational documents Form 990, Part VI, Section A, Line 4 THE ORGANIZATION'S BYLAWS WERE RESTATED TO ESTABLISH THE AUDIT & COMPLIANCE COMMITTEE AS A STANDING COMMITTEE REPORTING DIRECTLY TO THE BOARD OF DIRECTORS. CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PART VI, LINE 6 THE ORGANIZATION IS ORGANIZED ON A NON-STOCK DIRECTORSHIP BASIS WITH NO MEMBERS. DECISIONS SUBJECT TO APPROVAL OF MEMBERS FORM 990, PART VI, LINE 7B THE ORGANIZATION IS ORGANIZED ON A NON-STOCK DIRECTORSHIP BASIS WITH NO MEMBERS. 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 CORPORATE CONTROLLER AND THE CHIEF LEGAL OFFICER) AND SHARED WITH THE MEMBERS OF THE BOARD OF DIRECTORS. 4. THE ORGANIZATION'S 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 WILL LEAVE THE MEETING DURING DISCUSSION AND VOTING ON THAT PROPOSED TRANSACTION OR ARRANGEMENT. THE PERSON HAVING THE FINANCIAL INTEREST WILL NOT BE COUNTED IN DETERMINING WHETHER A QUORUM IS PRESENT. 3.THE CHAIRPERSON OF THE BOARD OF DIRECTORS OR COMMITTEE WILL, 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 WILL 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 WILL 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 ORGANIZATION, AND WILL 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 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 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 AND IS ALSO MAINTAINED BY HUMAN RESOURCES IN THAT PERSON'S PERSONNEL FILE. 2. ANNUALLY, EACH MEMBER OF MANAGEMENT COMPLETES 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 RECOMMEND TO EXECUTIVE MANAGEMENT HOW ANY REPORTED CONFLICTS SHOULD BE MANAGED. MANAGEMENT OF A CONFLICT 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 ALL RELATED ENTITIES. 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". THE NEXT FISCAL YEAR'S FINANICAL PLAN (INCLUDING ANY HOSPITAL RATE INCREASES) IS DISCUSSED AT AN ANNUAL PUBLIC MEETING 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 RICHARD BREON - 8 RICHARD DEVOS, JR - 2 A. ROBERT VAN TUINEN, MD - 48 MICHELLE VAN DYKE - 2 ROBERT HOOKER - 2 ROBERT ROTH - 2 MICHAEL P. FREED - 2 RONALD KNAUS - 2 JOHN BYRNES, MD - 2 JOHN MACKEIGAN, MD - 2 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 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. 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 ORGANZIATION 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 - -66489500; SH HOSPITALS (EIN 38-1360529) FUND BALANCE TRANSFER - 3940945; ZEELAND COMMUNITY HOSPITAL (EIN 38-141184) FUND BALANCE TRANSFER - 91067; INVESTMENT ELIMINATION - 1971902; PHMB PROPERTIES LLC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 PROP. MGMT MI 3344188 29430541 PRIORITY HEALTH MMPC REAL ESTATE LLC 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49525 262744213 DORMANT MI 0 0 MICHIGAN MEDICAL PATIENT CARE SPECTRUM HEALTH INNOVATIONS LLC 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 272868213 IP DEVELOP MI 7776 6714824 SPECTRUM HEALTH SYSTEM SHPHC LLC 750 FULLER AVE NE GRAND RAPIDS MI 49503 452911064 DORMANT MI 0 0 SPECTRUM HEALTH CONTINUING CARE SPECTRUM HEALTH HOSPITALS 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 381360529 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH PRIMARY CARE PTNRS 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 381358164 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH FOUNDATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 382752328 PHILANTHRO MI 501(C)(3) 7 SPECTRUM HEALTH SYSTEM true 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 true SH CONTINUING CARE CENTER 750 FULLER AVE NE GRAND RAPIDS MI 49503 382415333 REHAB/NRS MI 501(C)(3) 9 SPECTRUM HEALTH CONTINUING CARE true SH KENT COMMUNITY CAMPUS 750 FULLER AVE NE GRAND RAPIDS MI 49503 383472677 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH CONTINUING CARE true SPECTRUM HEALTH WORTH SERVICES 750 FULLER AVE NE GRAND RAPIDS MI 49503 382786617 HEALTHCARE MI 501(C)(3) 9 SPECTRUM HEALTH CONTINUING CARE true VISITING NURSE SERVICES OF WEST MI 750 FULLER AVE NE GRAND RAPIDS MI 49503 381359195 HEALTHCARE MI 501(C)(3) 9 SPECTRUM HEALTH CONTINUING CARE true PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 HMO MI 501(C)(4) N/A SPECTRUM HEALTH SYSTEM true TRINITY HEALTH PLANS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382663747 HMO MGMT MI 501(C)(4) N/A PRIORITY HEALTH true PH GOVERNMENT PROGRAMS INC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 320016523 HMO MI 501(C)(3) 9 PRIORITY HEALTH true SH UNITED MEMORIAL FOUNDATION 615 S BOWER GREENVILLE MI 48838 382990574 PHILANTHRO MI 501(C)(3) 11 - Type I SPECTRUM HEALTH UNITED true AMBULATORY UNITED 615 S BOWER GREENVILLE MI 48838 383170488 HEALTHCARE MI 501(C)(3) 11 - Type I SPECTRUM HEALTH UNITED true UNITED LIFESTYLES 615 S BOWER GREENVILLE MI 48838 383589727 WELLNESS MI 501(C)(3) 11 - Type I SPECTRUM HEALTH UNITED true SPECTRUM HEALTH KELSEY 615 S BOWER GREENVILLE MI 48838 381297435 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH UNITED true REED CITY HOSPITAL CORPORATION 300 N PATTERSON RD REED CITY MI 49677 382770076 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true 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 true MMPC FOUNDATION 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49546 201099059 PHILANTHRO MI 501(C)(3) N/A MICHIGAN MEDICAL PATIENT CARE true KENT COMMUNITY HEALTH FOUNDATION 750 FULLER AVE NE GRAND RAPIDS MI 49503 383607110 PHILANTHRO MI 501(C)(3) 11 - Type III - FI SPECTRUM HEALTH KENT COMMUNITY CAMPUS true ZEELAND COMMUNITY HOSPITAL 8333 FELCH STREET ZEELAND MI 49464 381411184 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH UNITED 615 S BOWER GREENVILLE MI 48838 381358412 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true 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 25006 31444 0.9 PRIORITY HEALTH INSURANCE COMPANY 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 201529553 INSURANCE MI PRIORITY HEALTH C CORPORATION 251223231 76537040 1 PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI SPECTRUM HEALTH SYSTEM C CORPORATION 137858928 35117638 1 MONTCALM PRIMARY CARE PHYSICIANS 615 S BOWER GREENVILLE MI 48838 202544762 MED. SVCS MI SPECTRUM HEALTH UNITED C CORPORATION 1 BLODGETT ASSURANCE COMPANY 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 INSURANCE CJ SPECTRUM HEALTH SYSTEM C CORPORATION 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 IDEOMED INC 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 611613614 PROD DEVL MI SPECTRUM HEALTH INNOVATIONS LLC C CORPORATION 133 285985 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 true true true true false false false false false false true true false true false true true true SPECTRUM HEALTH PRIMARY CARE PARTNERS A 707313 GAAP, CASH, OR FMV SPECTRUM HEALTH HOSPITALS A 25560 GAAP, CASH, OR FMV SPECTRUM HEALTH HOSPITALS B 494454 GAAP, CASH, OR FMV SPECTRUM HEALTH HOSPITALS C 965894 GAAP, CASH, OR FMV SPECTRUM HEALTH FOUNDATION C 1008253 GAAP, CASH, OR FMV PRIORITY HEALTH D 901188 GAAP, CASH, OR FMV PRIORITY HEALTH K 3795584 GAAP, CASH, OR FMV SPECTRUM HEALTH HOSPITALS K 161508558 GAAP, CASH, OR FMV SPECTRUM HEALTH PRIMARY CARE PARTNERS K 21135501 GAAP, CASH, OR FMV SPECTRUM HEALTH FOUNDATION K 12000 GAAP, CASH, OR FMV WEST MICHIGAN HEART K 155707 GAAP, CASH, OR FMV REED CITY HOSPITAL CORPORATION K 165543 GAAP, CASH, OR FMV SPECTRUM HEALTH CONTINUING CARE K 238 GAAP, CASH, OR FMV NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION K 37102 GAAP, CASH, OR FMV SPECTRUM HEALTH PRIMARY CARE PARTNERS K 396711 GAAP, CASH, OR FMV SPECTRUM HEALTH UNITED K 37882 GAAP, CASH, OR FMV REED CITY HOSPITAL CORPORATION L 2600 GAAP, CASH, OR FMV ZEELAND COMMUNITY HOSPITAL L 11000 GAAP, CASH, OR FMV NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION L 1000 GAAP, CASH, OR FMV SPECTRUM HEALTH UNITED L 7500 GAAP, CASH, OR FMV SPECTRUM HEALTH PRIMARY CARE PARTNERS L 8100 GAAP, CASH, OR FMV PRIORITY HEALTH L 11821478 GAAP, CASH, OR FMV SECTION 512(B)(13) CONTROLLED ENTITY? PART II, COLUMN (G) THE ORGANIZATION IS THE COMMON PARENT ORGANIZATION OF A CONSOLIDATED HEALTH SYSTEM, SPECTRUM HEALTH SYSTEM. FOR ENTITIES THAT ARE PART OF A CONSOLIDATED HEALTH SYSTEM (WITH COMMON CONTROL) THE ATTRIBUTION RULES OF IRC SECTION 318 APPLY; MEANING THAT ALL ORGANIZATIONS ARE DEEMED TO HAVE CONTROL OF THE ORGANIZATIONS OWNED BY THE CONTROLLING ORGANIZATION. AS SUCH, IN ANSWERING THIS QUESTION AND FOR REPORTING IN SCH. R, EACH RELATED ORGANIZATION WITHIN THE HEALTH SYSTEM IS CONSIDERED AND THE TRANSACTIONS DISCLOSED MAY BE BETWEEN DIRECTLY CONTROLLED SUBSIDIARIES OR BROTHER-SISTER ENTITIES (INDIRECTLY CONTROLLED) WITHIN THE HEALTH SYSTEM. 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.