2012-05-09T16:00:36-05:00 2011-06-30 ANDREWS HOOPER PAVLIK PLC 3333 DEPOSIT DR NE STE 310 GRAND RAPIDS MI 49546 990 2010-07-01 381358412 SPECTRUM HEALTH UNITED SPEC 6167544341 615 S Bower Greenville MI 488382628 RYAN K JOHNSON 2012-04-13 true 6169426440 2010 2016-02-24 21:20:13Z RYAN K JOHNSON 615 S Bower Greenville MI 488382628 61064799 false X HTTP://UM.SPECTRUM-HEALTH.ORG X 1911 MI TO IMPROVE THE HEALTH OF THE COMMUNITY WE SERVE. 11 6 557 65 0 94316 87278 56474565 60442660 15029 -118215 -221054 -428638 56362856 59983085 0 0 22704162 24205350 0 0 30372961 29774805 53077123 53980155 3285733 6002930 49467873 56249469 35742462 35390703 13725411 20858766 TO IMPROVE THE HEALTH OF THE COMMUNITY WE SERVE. false false 48687841 60181498 SPECTRUM HEALTH UNITED PROVIDES HEALTHCARE RELATED SERVICES TO THE GREATER MONTCALM COMMUNITY REGARDLESS OF ABILITY TO PAY. IT IS AN ACUTE INPATIENT HOSPITAL WHICH INCLUDES SPECIALTY CRITICAL CARE UNITS, OUTPATIENT SERVICES, AND LONG TERM SKILLED NURSING. THERE WERE 2,599 INPATIENT ADMISSIONS, 8,835 INPATIENT DAYS, 136 LONG-TERM CARE ADMISSIONS, 13,825 LONG-TERM CARE PATIENT DAYS, AND 28,117 EMERGENCY ROOM VISITS IN FISCAL YEAR 2011. 48687841 true true false false false false false false true true false false true true false false true false false false false false false false false true true false false true true false false false false false false false false true true false false false false true true true true true false true 91 0 true 557 true false false false false false false false false false false X 11 6 false false true false true true true true true false false true true true true true true true true false X X Ryan K Johnson 6162256310 615 S Bower Greenville MI 488382628 X DAVID DULL 2 X 0 319332 135370 DAVID MACK 2 X X 0 0 0 DOMENICO AUSIELLO MD 2 X 0 0 0 FRANZ MOGDIS 2 X 0 0 0 GREGORY PAGE MD PHD 2 X 0 204287 28629 LINDA BLANCHARD 2 X X 0 0 0 MARC CHIRCOP 2 X 0 422621 178531 PETER HAINES 2 X 0 0 0 STEVE BOWSER 2 X 0 0 0 TAD CHARLES SIMON 2 X 0 0 0 WILLIAM HAM 2 X X 0 0 0 PAUL BONIS 50 X 281350 0 111869 DAVID OEHRING 50 X 162930 0 29899 BRIAN BRASSER 50 X 159858 0 24699 PRISCILLA MAHAR 50 X 157445 0 16384 RYAN JOHNSON 50 X 112618 0 27652 HEATHER CHRISTENSEN 50 X 106851 0 22756 VICKI JENSEN 50 X 147375 0 23952 MARY ANNE JONES 0 X 0 209945 31936 1128427 1156185 631677 5 true true false ANESTHESIA MEDICAL CONSULTANTS 3333 EVERGREEN NE GRAND RAPIDS MI 49525 MEDICAL 1201250 MICHIGAN MEDICAL PC 4100 LAKE DRIVE SE SUITE 300 GRAND RAPIDS MI 49546 MEDICAL 994368 INCREMEDICAL LLC 8259 WICKER AVE ST JOHN IN 46373 REHAB SERVICES 935118 FINCOR SOLUTIONS-ESCROW ACCT 6215 W ST JOSEPH HIGHWAY LANSING MI 48917 MISC FINANCIAL 218685 WEST MICHIGAN SHARED HOSPITAL PO BOX 1134 GRAND RAPIDS MI 495011134 LAUNDRY 172622 8 77904 8874 500 87278 PATIENT SERVICE REVENUE 622110 60076122 60076122 OTHER OPERATING INCOME 900099 183322 183322 CAFETERIA REVENUE 722212 133906 133906 TRANSCRIPTION REVENUE 561410 25002 25002 MEDICAL RECORD FEES 900099 24308 24308 0 0 0 0 60442660 9041 9041 0 0 516908 954458 -437550 0 -437550 -437550 127256 0 -127256 -127256 -127256 0 0 0 MISCELLANEOUS 900099 8912 8912 0 0 0 0 8912 59983085 60181498 0 -285691 0 0 0 0 761583 690031 71552 0 17793472 16121751 1671721 934943 836424 98519 3296327 2947585 348742 1419025 1269496 149529 698014 169969 528045 146236 146236 0 0 0 0 5147494 4749885 397609 276348 11596 264752 9013108 8894342 118766 54924 54388 536 0 2256969 2036510 220459 153366 130132 23234 0 1011 886 125 466175 466175 0 2517654 2252359 265295 486914 435606 51308 BAD DEBT 4696380 4696380 MCAID QUALITY ASSESSMENT TAX 1497062 1497062 MISCELLANEOUS 2346840 1421305 925535 PROPERTY TAXES 16310 5959 10351 0 0 0 0 53980155 48687841 5292314 0 0 1070 1070 6159978 10682494 5028241 5115121 761461 785372 221639 537398 53659514 21383938 32825269 32275576 0 0 4470215 6852438 49467873 56249469 6159345 5352824 24492547 24896608 5090570 5141271 35742462 35390703 X 12688756 18466686 1036655 2392080 13725411 20858766 49467873 56249469 X 6002930 1130425 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 20157 28250 3037 51444 11388 8000 769 20157 11388 11388 1.00000 false true true 1038599 1038599 36132771 11574739 24558032 338164 177868 160296 14036173 8543550 5492623 2113807 1087781 1026026 32275576 DONOR RESTRICTED ASSETS 2392079 DUE FROM AFFILIATES 4392138 UNAMORTIZED FINANCED COSTS 68221 6852438 0 DUE TO AFFILIATES 1857031 THIRD PARTY PAYABLE 3284240 5141271 59983085 53980156 6002929 0 0 6002929 0 0 0 0 0 0 0 0 0 0 0 0 Intended uses of endowment funds Schedule D, Part V, Line 4 THE FUNDS ARE CURRENTLY AN UNRESTRICTED, BOARD DESIGNATED ENDOWMENT AND HELD AS AN INVESTMENT. FIN 48 FOOTNOTE SCHEDULE D, PART X, LINE 2 A FIN 48 FOOTNOTE WAS NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. true true X true X false true true true false true true 620505 620505 0.01260 11143172 10304236 838936 0.01700 0 0.00000 0 0 11763677 10304236 1459441 0.02960 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0 0 0 0 0.00000 0 0 11763677 10304236 1459441 0.02960 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0.00000 0 0 0 0 0 0.00000 true 1777014 0 21662201 20563140 1099061 X true true 1 1 SPECTRUM HEALTH UNITED

615 S BOWER GREENVILLE MI 488382628

X X X SPECTRUM HEALTH UNITED 1 1 SPECTRUM HEALTH REHAB AND NURSING CENTER

615 SOUTH BOWER ST GREENVILLE MI 48838

NURSING HOME Eligibility criteria for free or discounted care Schedule H, Part I, Line 3c THE ORGANIZATION USED FPG TO DETERMINE ELIGIBILITY FOR FREE CARE. THERE WAS NOT AN EVALUATION USED FOR DISCOUNTED CARE, AS APPLICANTS THAT QUALIFIED FOR ANY ASSISTANCE RECEIVED FREE CARE. Bad Debt Expense excluded from financial assistance calculation Schedule H, Part I, Line 7, column(f) 4,696,380 Costing Methodology used to calculate financial assistance Schedule H, Part I, Line 7 THE TAXPAYER CALCULATES AN OVERALL COST-TO-CHARGE RATIO DERIVED BY USING THE WORKSHEET 2 FORMAT, RATIO OF PATIENT CARE COST-TO-CHARGES. ALL PATIENT SEGMENTS AND PAYERS ARE USED IN THE CALCULATION. 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, LINE 1: BAD DEBTS, AT COST, ARE DETERMINED BY USING AN OVERALL RATIO OF COST-TO-CHARGES APPLIED AGAINST BAD DEBT EXPENSE (AT CHARGES) IN THE STATEMENT OF ACTIVITIES. RATIONAL FOR INCLUDING BAD DEBTS (AT COST) IN SCHEDULE H, PART III, LINE 2: BAD DEBTS, AT COST, REPRESENT AN UNREIMBURSED LIABILITY TO THE TAXPAYER AND FURTHER DEMONSTRATE HOW, BY ASSUMING THOSE COSTS, THE TAXPAYER 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 OF THESE 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 TAXPAYER 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 REDUCED TO COST AND SHORTFALLS IN GOVERNMENT REIMBURSEMENTS (MEDICARE AND MEDICAID). RATIONAL FOR EXCLUDING (OR REPORTING ZERO) BAD DEBTS (AT COST) IN SCHEDULE H, PART III, LINE 3: THE TAXPAYER HAS NOT IDENTIFIED THE AMOUNT OF BAD DEBT EXPENSES (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE FOR FREE OR DISCOUNTED SERVICES UNDER THE FINANCIAL ASSISTANCE POLICY. ALTHOUGH IT'S CERTAIN THAT A PORTION OF BAD DEBT EXPENSES (AT COST) 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. 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 TAXPAYER USES A RATIO OF COST TO CHARGES. IN DETERMINING THE RATIO OF COST TO CHARGES THE TAXPAYER 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 TAXPAYER COOPERATIVELY WORKS WITH PATIENTS HAVING SELF-PAY BALANCES TO DETERMINE ELIGIBILITY FOR FINANCIAL ASSISTANCE IN ACCORDANCE WITH THE FINANCIAL ASSISTANCE ELIGIBILITY POLICY. Needs assessment. Schedule H, Part VI, Line 2 PERIODICALLY THE TAXPAYER CONDUCTS A COMMUNITY NEEDS ASSESSMENT USING RESULTS FROM LOCAL, STATE AND NATIONAL SOURCES. THE LAST SUCH COMMUNITY NEEDS ASSESSMENT UTILIZED THE FOLLOWING SOURCES: 1) AMERICA'S HEALTH RANKING: A CALL TO ACTION FOR PEOPLE AND THEIR COMMUNITIES. 2) AIMING HIGHER: RESULTS FROM A STATE SCORECARD ON HEALTH SYSTEM PERFORMANCE. 3) BEHAVIORAL RISK FACTOR SURVEY (2005): HEALTH RISK BEHAVIORS IN THE STATE OF MICHIGAN. 4) THE 2005/2006 COMMUNITY REPORT CARD. 5) THE 2005/2006 GREATER GRAND RAPIDS SURVEY. Patient education of eligibility for assistance. Schedule H, Part VI, Line 3 TAXPAYER HAS A DEPARTMENT OF FINANCIAL COUNSELORS WHO WORK WITH PATIENTS THAT EXPRESS ANY LEVEL OF CONCERN WITH PAYING THEIR BILL. IN ADDITION, THE TAXPAYER 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. IN ADDITION, THE TAXPAYER 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). TAXPAYER WIDELY PUBLICIZES COMMUNICATIONS TO PATIENTS AND THE PUBLIC ON 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, POSTING ON THE SPECTRUM HEALTH WEBSITE, UPON REQUEST BY ANY PATIENT, GUARANTOR OR COMMUNITY MEMBER, WORD OF MOUTH VIA FINANCIAL COUNSELORS AND OTHERS, AND THROUGH COMMUNITY PUBLICATIONS AND OUTREACH EVENTS. Community information. Schedule H, Part VI, Line 4 THE TAXPAYER HAS IDENTIFIED A PRIMARY SERVICE AREA COMPRISED OF 19 ZIP CODES SURROUNDING GREENVILLE, WHERE UNITED HOSPITAL IS LOCATED. THE OVERALL SERVICE AREA INCLUDES MONTCALM AND PORTIONS OF ADJACENT COUNTIES THAT IN TOTAL SUPPORTS A POPULATION OF OVER 100,000 RESIDENTS. Promotion of community health Schedule H, Part VI, Line 5 SCHEDULE H OF THIS TAX RETURN ONLY DISCLOSES CHARITY CARE AND COMMUNITY BENEFIT INFORMATION PERTAINING TO THE REPORTING ENTITY. HOWEVER, FOR A FULL AND MORE ACCURATE UNDERSTANDING OF THE CHARITY CARE AND COMMUNITY BENEFITS PROVIDED BY THE CONSOLIDATED HEALTH SYSTEM PLEASE VISIT OUR WEBSITE AT WWW.SPECTRUMHEALTH.ORG AND CLICK THE LINK TITLED "ABOUT US". RELATED ORGANIZATION INFORMATION SCHEDULE H, PART I, LINE 6A THE CONSOLIDATED HEALTH SYSTEM PUBLISHES THEIR COMMUNITY BENEFIT REPORT ON THEIR 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. X X X X X false true false false false false false false false DAVID DULL 0 271628 0 45993 0 1711 0 87712 0 47658 0 454702 0 18992 GREGORY PAGE MD PHD 0 179517 0 24504 0 266 0 13924 0 14705 0 232916 0 0 MARC CHIRCOP 0 362934 0 45480 0 14207 0 124900 0 53631 0 601152 0 0 PAUL BONIS 229997 0 49556 0 1797 0 66661 0 45208 0 393219 0 0 0 DAVID OEHRING 136243 0 23903 0 2784 0 10280 0 19619 0 192829 0 0 0 BRIAN BRASSER 134667 0 22350 0 2841 0 5720 0 18979 0 184557 0 0 0 PRISCILLA MAHAR 132257 0 22306 0 2882 0 5479 0 10905 0 173829 0 0 0 VICKI JENSEN 123899 0 20963 0 2513 0 5228 0 18724 0 171327 0 0 0 MARY ANNE JONES 0 175034 0 27431 0 7480 0 13524 0 18412 0 241881 0 0 Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b SCHEDULE J, PART I, LINE 4B IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, DO "PARTICIPATE IN" A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. HOWEVER, NONE OF THESE PARTICIPANTS "RECEIVED PAYMENT FROM" THESE PLANS DURING THE TAX YEAR. MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 382889417 59465HHD1 2008-03-27 7500000 CAPITAL FUNDING false false true KENT HOSPITAL FINANCING AUTHORITY (2008A AND 2008B) 382350002 490580CW5 2008-04-15 471211001 2001B, 2007A & 2007B REFUNDING BOND false false true MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 382889417 59465HHD1 2008-03-27 7500000 CAPITAL FUNDING false false true 803453 0 2000000 0 0 0 23778 0 0 1976222 0 0 2009 false false true true 0 0 22983857 0 0 0 74461 0 0 0 0 0 2008 true false true true 1237033 0 1953210 0 0 0 23222 0 0 1929988 0 0 2008 false false true true false false false false true 0.0000 0.0000 0.0000 true false false false false true 0.0000 0.0000 0.0000 true false false false false true 0.0000 0.0000 0.0000 true false true false false false false false true false false false false false true false 0.0 false 0.0 false false TAX EXEMPT BONDS SCHEDULE K BONDS ARE ISSUED ON BEHALF OF AN OBLIGATED GROUP UNDER 1989 MTI AND 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 2008B BOND IS ATTRIBUTABLE TO TWO LEGAL ENTITIES WITHIN THE OBLIGATED GROUP (SEE ALSO FORM 990, PART X, LINE 20): * SPECTRUM HEALTH HOSPITALS (EIN 38-1360529) AND * SPECTRUM HEALTH UNITED (EIN 38-1358412) AS IT RELATES TO THIS BOND, THE INFORMATION REPORTED IN SCHEDULE K, PART I IS REPEATED FOR EACH MEMBER OF THE OBLIGATED GROUP. THE INFORMATION REPORTED IN PART II IS REPRESENTATIVE OF THE REPORTING ENTITIES PORTION OF THE TAX-EXEMPT BOND. ANESTHESIA MEDICAL CONSULTANTS BUSINESS 1201250 SEE SCHEDULE L, PART V false HATHAWAY PROPERTIES LLC BUSINESS 420000 SEE SCHEDULE L, PART V false WEST MICHIGAN SHARED LAUNDRY BUSINESS 172622 SEE SCHEDULE L, PART V false MARGARET MAHAR FAMILY 48282 SEE SCHEDULE L, PART V false BRYAN MAHAR FAMILY 15348 SEE SCHEDULE L, PART V false BUSINESS/FAMILY RELATIONSHIPS & TRANSACTIONS WITH INTERESTED PERSONS PART IV, LINE 28B & C DR. DAVID DULL, A MEMBER OF THE TAXPAYER'S BOARD OF DIRECTORS, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE TAXPAYER. MR. WILLIAM HAM, A MEMBER OF THE TAXPAYER'S BOARD OF DIRECTORS, HAS OWNERSHIP IN A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE TAXPAYER. MS. PRISCILLA MAHAR, A KEY EMPLOYEE OF THE TAXPAYER, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE TAXPAYER. ADDITIONALLY, MS. MAHAR HAS A SON AND SISTER-IN-LAW THAT ARE EMPLOYED BY THE TAXPAYER. THROUGH THE ANNUAL CONFLICT OF INTEREST AND TAX REPORTING PROCESSES, CERTAIN INDIVIDUALS LISTED IN SCH L HAVE REPORTED THAT THEY, OR COMPANIES THEY WORK FOR, HAVE BUSINESS OR FAMILY RELATIONSHIPS WITH THE REPORTING ORGANIZATION THAT EXCEED THRESHHOLDS PROVIDED IN THE INSTRUCTIONS TO THE FORM 990. IF AN AMOUNT IS NOT LISTED IN SCH L, A STATEMENT IS PROVIDED ABOVE EXPLAINING THE NATURE OF THE TRANSACTION(S). NUMBER OF EMPLOYEES FORM 990, PART I, LINE 5 AND FORM 990, PART V, LINE 2A TAXPAYER 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 LINES 5-10 OF PART IX. IDENTIFICATION OF DISREGARDED ENTITIES FORM 990, PART IV, LINE 33 AND SCHEDULE R THE ORGANIZATION DOES NOT OWN A WHOLLY OWNED DISREGARDED ENTITY. HOWEVER, THE HEALTH SYSTEM HAS WHOLLY OWNED DISREGARDED ENTITIES. THE ORGANIZATION IS REPORTING INDIRECT CONTROL FOLLOWING THE CONSTRUCTIVE OWNERSHIP RULES UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. OTHER ENTITIES REPORTED ON SCHEDULE R ARE REPORTED BASED ON THE SAME APPLICATION OF THE CONSTRUCTIVE OWNERSHIP RULES OF SECTION 318. Significant changes to organizational documents Form 990, Part VI, Section A, Line 4 THE TAXPAYER'S BYLAWS WERE AMENDED TO REFLECT THE DELEGATION OF CERTAIN OF THE PARENT CORPORATION'S RESERVED POWERS 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 SPECTRUM HEALTH. THE PRESIDENT OF THE TAXPAYER AND THE CHIEF OF STAFF OF THE TAXPAYERS'S MEDICAL STAFF WERE APPOINTED TO SERVE AS EX-OFFICIO MEMBERS OF THE TAXPAYER'S BOARD. SHHG HAS THE RIGHT TO APPOINT THE PRESIDENT OF THE TAXPAYER. APPROVAL LIMITS FOR THE AMOUNT OF CAPITAL EXPENDITURES OR LOANS TO UNRELATED ENTITIES WERE INCREASED FOR THE TAXPAYERS'S PRESIDENT, FINANCE COMMITTEE AND BOARD OF DIRECTORS AND AN APPROVAL LIMIT WAS ADDED FOR THE SHHG PRESIDENT, FINANCE COMMITTEE AND BOARD OF DIRECTORS. AMENDMENTS TO THE TAXPAYER'S BYLAWS MUST BE ADOPTED BY SHHG. Classes of members or stockholders Form 990, Part VI, Section A, Line 6 THE TAXPAYER HAS ONE MEMBER/STOCKHOLDER AS FOLLOWS: - 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 OF THE TAXPAYER (SEE FORM 990, PART VI, LINE 6) APPOINTS ALL MEMBERS OF THE TAXPAYER'S BOARD OF DIRECTORS. Decisions requiring approval by members or stockholders Form 990, Part VI, Section A, Line 7b THE SOLE MEMBER OF THE TAXPAYER (SEE FORM 990, PART VI, LINE 6) HAS RETAINED CERTAIN RESERVED POWERS IN TAXPAYER EXCLUSIVELY, WHICH SHALL NOT BE DEEMED AUTHORIZED UNLESS AND UNTIL APPROVED BY THE SOLE MEMBER OF TAXPAYER: - ELECTION AND/OR REMOVAL OF THE MEMBERS OF THE TAXPAYER'S BOARD OF DIRECTORS AND THE TAXPAYER'S CHAIR OF THE BOARD; - APPROVAL OF ALL TAXPAYER'S (OR AN ENTITY DIRECTLY OR INDIRECTLY CONTROLLED BY THE TAXPAYER ("SUBSIDIARY") CAPITAL EXPENDITURES IN EXCESS OF THE AMOUNT SPECIFIED IN THE AUTHORITY MATRIX, ADOPTED BY THE SOLE MEMBER OF TAXPAYER AND AS AMENDED BY THE SOLE MEMBER OF TAXPAYER FROM TIME TO TIME ("AUTHORITY MATRIX AMOUNT"); - APPROVAL OF ALL BORROWING BY THE TAXPAYER 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 TAXPAYER OR A SUBSIDIARY TO PERSONS OR ENTITIES OTHER THAN THE SOLE MEMBER OF TAXPAYER OR AN ENTITY CONTROLLED BY THE SOLE MEMBER OF TAXPAYER; - THE CREATION OF ANY ENTITY CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE TAXPAYER; AND - THE TAXPAYER'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 TAXPAYER ABOVE, THE SOLE MEMBER OF TAXPAYER HAS DELEGATED CERTAIN RESERVED POWERS IN TAXPAYER 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 TAXPAYER. THE SOLE MEMBER OF TAXPAYER 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 TAXPAYER'S PRESIDENT AND/OR CEO AS DELEGATED BY THE SOLE MEMBER OF TAXPAYER'S BOARD OF DIRECTORS TO THE SOLE MEMBER OF TAXPAYER'S CHIEF EXECUTIVE OFFICER (OR DESIGNEE) OR SHHG'S PRESIDENT; - THE ADOPTION OF THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE TAXPAYER, AND ANY AMENDMENTS TO SUCH BUDGETS IN EXCESS OF THE AUTHORITY MATRIX AMOUNT; - THE ADOPTION OF THE TAXPAYER'S STRATEGIC PLANS; - THE ADOPTION OF AMENDMENTS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE TAXPAYER; - MERGER OR CONSOLIDATION OF THE TAXPAYER OR A SUBSIDIARY, ANY OTHER CHANGE IN CONTROL, OWNERSHIP PERCENTAGES OR CAPITAL STRUCTURE OF THE TAXPAYER OR A SUBSIDIARY; - SALE OR TRANSFER OF MORE THAN TEN PERCENT (10%) OF THE ASSETS OF THE TAXPAYER OR A SUBSIDIARY TO ANY PERSON OR ENTITY NOT CONTROLLED BY THE SOLE MEMBER OF TAXPAYER; - DISSOLUTION OF THE TAXPAYER; - THE SELECTION AND RETENTION OF AUDITORS FOR THE TAXPAYER OR A SUBSIDIARY; AND - ANY OTHER APPROVAL FOR WHICH THE SOLE MEMBER OF TAXPAYER'S APPROVAL IS REQUIRED BY LAW. Review of form 990 by governing body Form 990, Part VI, Section B, Line 11a 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 TAXPAYER'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 TAXPAYER'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 TAXPAYER'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 A DISCLOSURE FORM 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 TAXPAYER'S 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 TAXPAYER'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 TAXPAYER AND TO ENSURE THAT TAXPAYER'S EMPLOYEES ARE ALWAYS ACTING IN THE BEST INTEREST OF TAXPAYER. Process used to establish compensation of top management official Form 990, Part VI, Section B, Line 15a SPECTRUM HEALTH SYSTEM PROCESS FOR ESTABLISHING EXECUTIVE COMPENSATION THE SPECTRUM HEALTH 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 2011 (7/1/10-6/30/11), WAS BASED ON THE FOLLOWING INDEPENDENT SURVEYS OF HEALTH CARE EXECUTIVES AT COMPARABLE HEALTH SYSTEMS: * SULLIVAN, COTTER AND ASSOCIATES, INC.: 2010 SURVEY OF MANAGER AND EXECUTIVE COMPENSATION IN HOSPITALS AND HEALTH SYSTEMS * INTEGRATED HEALTHCARE STRATEGIES: 2010 HEALTHCARE EXECUTIVE COMPENSATION SURVEY * MERCER HUMAN RESOURCES CONSULTING: 2010 INTEGRATED HEALTH NETWORKS COMPENSATION SURVEY * WATSON WYATT DATA SERVICES: 2010/2011 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). 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. Public Disclosure 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 hours worked per week for related organization Form 990, Part VII, Section A, Column B DAVID DULL - 50 DAVID MACK - 0 DOMENICO AUSIELLO, MD - 0 FRANZ MOGDIS - 0 GREGORY PAGE, M.D., PH.D. - 50 LINDA BLANCHARD - 0 MARC CHIRCOP - 50 PETER HAINES - 0 STEVE BOWSER - 0 TAD (CHARLES) SIMON - 0 WILLIAM HAM - 0 PAUL BONIS - 0 DAVID OEHRING - 0 BRIAN BRASSER - 0 PRISCILLA MAHAR - 0 RYAN JOHNSON - 0 HEATHER CHRISTENSEN - 0 VICKI JENSEN - 0 MARY ANNE JONES - 50 COMPENSATION FORM 990, PART VII, LINE 1A CONSISTENT WITH PRIOR YEARS, THE COMPENSATION REPORTED FOR THESE INDIVIDUALS IS NOT FOR SERVICES IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS BUT FOR SERVICES AS EMPLOYEES OF THE ORGANIZATION OR A RELATED ORGANIZATION. CONSISTENT WITH PRIOR YEARS, COMPENSATION AND BENEFITS ARE REPORTED USING THE MOST RECENT CALENDAR YEAR COMPENSATION DATA. THE COMPENSATION FIGURES REPORTED IN THESE SECTIONS IS FOR THE YEAR ENDED DECEMBER 31, 2010. Other changes in net assets or fund balances Form 990, Part XI, Line 5 FAS 136 ACTIVITY - 1355425; INTERCOMPANY TRANSFER - -225000; 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. PHMB PROPERTIES LLC 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 PROP. MGMT MI 179821 29996933 PRIORITY HEALTH MMPC REAL ESTATE LLC 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49525 382851295 DORMANT MI 0 0 MICHIGAN MEDICAL PATIENT CARE SPECTRUM HEALTH INNOVATIONS LLC 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 272868213 IP DEVELOP MI 6018 3146005 SPECTRUM HEALTH SYSTEM SPECTRUM HEALTH SYSTEM 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 383382353 MANAGEMENT MI 501(C)(3) 11 - Type III - FI NA false SPECTRUM HEALTH HOSPITALS 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 381360529 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true SPECTRUM HEALTH PRIMARY CARE PTNRS 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 381358164 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true WEST MICHIGAN REGIONAL LABORATORY 1726 KNOLLCREST CIRCLE SE GRAND RAPIDS MI 49546 383414862 TEACH/RSCH MI 501(C)(3) 9 SPECTRUM HEALTH HOSPITALS true SPECTRUM HEALTH FOUNDATION 100 MICHIGAN AVE 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 SPECTRUM HEALTH UNITED 615 S BOWER GREENVILLE MI 48838 381358412 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM 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 407 S NELSON 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 100 SOUTH PINE ZEELAND MI 49464 381411184 HEALTHCARE MI 501(C)(3) 3 SPECTRUM HEALTH SYSTEM true HELEN DEVOS WOMEN'S AND CHILDREN'S HEALTH PAVILION ASSOCIATION 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383264184 MGMT MI SPECTRUM HEALH HOSPITALS C CORPORATION 611739 462237 0.8696 PARTNERSHIP FOR CHILDREN'S HEALTH 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383364676 MGED CARE MI SPECTRUM HEALH HOSPITALS C CORPORATION 0 0 1 THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 830464302 MGMT MI SPECTRUM HEALH HOSPITALS C CORPORATION 2205785 1454395 0.9827 HDVCH - CHC 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 383417270 MED. SVCS MI SPECTRUM HEALH HOSPITALS C CORPORATION 1800 0 1 CAMPUS TOWNE CENTER CONDO ASSC 4868 LAKE MICHIGAN DRIVE ALLENDALE MI 49401 382910067 MGMT MI SPECTRUM HEALH HOSPITALS C CORPORATION 20826 24780 0.75 PRIORITY HEALTH INSURANCE COMPANY 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 201529553 INSURANCE MI PRIORITY HEALTH C CORPORATION 217156804 65878919 1 PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI SPECTRUM HEALTH SYSTEM C CORPORATION 129683594 29767226 1 MONTCALM PRIMARY CARE PHYSICIANS 615 S BOWER GREENVILLE MI 48838 202544762 MED. SVCS MI SPECTRUM HEALTH UNITED C CORPORATION 0 0 1 BLODGETT ASSURANCE COMPANY 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 INSURANCE CJ SPECTRUM HEALTH SYSTEM C CORPORATION 0 0 1 MICHIGAN MEDICAL PATIENT CARE 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49546 382851295 MEDICAL MI SPECTRUM HEALTH SYSTEM C CORPORATION 0 0 1 WEST MICHIGAN HEART 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 PHYSICIANS MI SPECTRUM HEALTH SYSTEM C CORPORATION 0 0 1 MHEALTH INNOVATIONS INC 425 NORTH MAIN STREET ANN ARBOR MI 48104 611613614 PROD DEVL MI SPECTRUM HEALTH INNOVATIONS LLC C CORPORATION 0 457129 1 false false true false false false false false true true true true true true false false true false UNITED LIFESTYLES Q 225000 GAAP, CASH, OR FMV SPECTRUM HEALTH UNITED MEMORIAL FOUNDATION N 226278 GAAP, CASH, OR FMV SPECTRUM HEALTH UNITED MEMORIAL FOUNDATION C 77904 GAAP, CASH, OR FMV AMBULATORY UNITED I 118722 GAAP, CASH, OR FMV PRIORITY HEALTH K 7436631 GAAP, CASH, OR FMV SPECTRUM HEALTH UNITED MEMORIAL FOUNDATION M 43063 GAAP, CASH, OR FMV PRIORITY HEALTH L 3678235 GAAP, CASH, OR FMV SPECTRUM HEALTH CONTINUING CARE K 50300 GAAP, CASH, OR FMV SPECTRUM HEALTH PRIMARY CARE PARTNERS L 464292 GAAP, CASH, OR FMV SPECTRUM HEALTH SYSTEM L 355127 GAAP, CASH, OR FMV WEST MICHIGAN HEART L 73935 GAAP, CASH, OR FMV WEST MICHIGAN HEART J 28212 GAAP, CASH, OR FMV SPECTRUM HEALTH HOSPITALS L 2890243 GAAP, CASH, OR FMV PART II, COLUMN (G), SECTION 512(B)(13) CONTROLLED ENTITY? SCHEDULE R TAXPAYER IS A MEMBER OF A CONSOLIDATED HEALTH SYSTEM AND HAS A COMMON PARENT ORGANIZATION, 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.