2012-05-11T09:00:18-05:00 2011-06-30 ANDREWS HOOPER PAVLIK PLC 3333 DEPOSIT DRIVE SUITE 310 GRAND RAPIDS MI 49546 990 2010-07-01 381359517 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION NEWA 2319243300 212 South Sullivan Fremont MI 49412 JOHN SELLA 2012-05-07 true 6169426440 2010 2016-02-24 21:20:13Z SPECTRUM HEALTH GERBER MEMORIAL RANDALL STASIK CEO 212 South Sullivan Fremont MI 49412 72399898 false X WWW.SPECTRUMHEALTH.ORG/GERBER X 1918 MI OUR MISSION IS TO PROVIDE COMPETENT AND COMPASSIONATE COMMUNITY HEALTH CARE. OUR MOST SIGNIFICANT ACTIVITIES INCLUDED PROVIDING HOSPITAL, HOMECARE, WELLNESS, AND PHYSICIAN HEALTHCARE SERVICES. 14 9 714 202 167279 -109625 462721 263388 63885816 69577522 615394 2281670 36058 196174 64999989 72318754 0 0 34314152 35168200 0 0 33077841 33614689 67391993 68782889 -2392004 3535865 52823220 54304753 30744158 28606792 22079062 25697961 X OUR MISSION IS TO PROVIDE COMPETENT AND COMPASSIONATE COMMUNITY HEALTH CARE. false false 41828566 58796987 HEALTH CARE PROGRAMS, GENERAL/OTHER: SPECTRUM HEALTH GERBER MEMORIAL PROVIDED 116,793 OUTPATIENT ANCILLARY VISISTS, AS WELL AS 7,316 ADULT ACUTE AND 786 NEWBORN PATIENT DAYS OF CARE TO THE RESIDENTS OF NEWAYGO COUNTY AND THE SURROUNDING AREAS. 5133646 3873048 PHYSICIAN PRACTICES/RURAL HEALTH CLINICS: SEVERAL PHYSICIAN OFFICES PROVIDED 36,764 OFFICE VISITS. 4110066 4022260 HOME HEALTH CARE: CONTINU-CARE, THE HOME HEALTH DEPARTMENT OF THE HOSPITAL PROVIDED 33,163 SKILLED NURSING, PHYSICAL THERAPY, OCCUPATIONAL THERAPY, SOCIAL WORK, HOME HEALTH AIDE, AND MSS/ISS SERVICE. 2673792 1990405 WELLNESS PROGRAMMING AND COMMUNITY EDUCATION, AVAILABLE TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. 2673792 1990405 53746070 true true false false false false false false false true false false false true false false true false false false false false false true 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 false false true 49 0 true 714 true true true false false false false true true false false false false X 14 9 false false true false true true true true true false false true true true true true true true true false X X John Sella VP of Finance 2319243300 212 South Sullivan Fremont MI 49412 X DR MARK BYLAND 40 X 230613 0 24969 MATTHEW VAN VRANKEN 1 X 0 785269 305729 MARC CHIRCOP 1 X 0 422621 178531 DAVE ROBINSON 1 X 0 0 0 DON HENRY 1 X X 0 0 0 STEPHEN WELSH MD 1 X X 0 0 0 JOHN MELLEMA 1 X X 0 0 0 CAROLYN HUMMEL 1 X X 0 0 0 BRENT BECKMAN MD 1 X 0 0 0 TODD BLAKE 1 X 0 0 0 LAUREL BRUEKER 1 X 0 0 0 TRAVIS BULL 1 X 0 0 0 JANE DRAKE 1 X 0 0 0 RANDALL STASIK 40 X X 240486 0 68402 DR JAMES PATENGE 40 X 286824 0 32635 DR TAMI MICHELE 40 X 283325 0 26821 MARCUS GARDENER 40 X 237445 0 29333 JEFFERY HAWKER 40 X 237865 0 28799 JOHN SELLA 40 X 130459 0 25160 DOUGLAS JOHNSON MD 1 X 0 0 0 LARRY LETHORN 1 X 0 0 0 MIKE PUMFORD 1 X 0 0 0 DAVID POEL 40 X 230402 0 28790 1877419 1207890 749169 20 false true false TERRENCE ARTHUR WESTCOTT 609 PICKERAL LAKE DRIVE NEWAYGO MI 49337 PHYSICAL THERAPY 409131 PINE MEDICAL GROUP PC 230 WEST OAK STREET FREMONT MI 49412 MANAGEMENT SERVICE 309727 DELTA LOCUM TENENS PO BOX 202940 DALLAS TX 753202056 PHYSICIAN & STAFFING PROF. 148370 BLUEWATER ASSOCIATES 2760 KEEPER HIGHWAY LYONS MI 48851 PHYSICIAN SERVICES 117400 4 19793 243595 263388 NET PATIENT SERVICE REVENUE 622110 68650231 68650231 PHYSICIAN OFFICE RENT 531120 506654 506654 CAFETERIA 722212 172133 172133 PRESCRIPTION FEES 446110 137597 137597 OTHER PROGRAM SERVICE REVENUE 900099 110907 110907 0 0 0 0 69577522 2138701 210 2138491 0 0 0 0 0 143280 311 0 142969 142969 142969 18097 19793 21461 -3364 -3364 0 91841 59372 32469 32469 SPA SERVICES 713940 167069 167069 0 0 0 0 167069 72318754 68682700 167279 3205387 0 0 0 0 601558 601558 0 26617278 22444193 4173085 1249321 1030169 219152 4651075 3844725 806350 2048968 1689544 359424 0 133814 133814 18992 18992 0 0 14893 14893 6154565 5086923 1067642 404413 65505 338908 10087384 9524163 563221 1290805 1290805 0 1036036 956323 79713 178850 167782 11068 0 130083 87040 43043 1239524 1239524 0 3280250 2788213 492037 269428 269428 EQUIPMENT RENTAL & MAINTENANCE 1729328 1257263 472065 LICENSES & TAXES 2017711 89571 1928140 BAD DEBTS LESS RECOVERIES 4670723 4670723 CHARITABLE CONTRIBUTIONS 44793 44793 SHARED SERVICES FEE 831607 831607 81490 43933 37557 0 68782889 53746070 15036819 0 0 6125828 6479819 102024 75000 3437538 4427744 1181707 1239172 721316 601940 67358325 37715297 30618952 29643028 9441958 11414026 0 0 1193897 424024 52823220 54304753 7797516 6830534 19473463 18492458 3473179 3283800 30744158 28606792 X 20960093 24578992 1093836 1093836 25133 25133 22079062 25697961 52823220 54304753 X 3535865 83034 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1866182 1866182 38992897 16264547 22728350 640022 533916 106106 24064140 20265346 3798794 1795084 651488 1143596 29643028 0 FAIR VALUE OF SWAP AGREEMENT 2259069 THIRD PARTY SETTLEMENTS 608731 DUE TO AFFILIATES 416000 3283800 72009380 68478292 3531088 0 0 3531088 0 0 0 0 0 0 0 0 0 0 0 0 FIN 48 FOOTNOTE SCHEDULE D, PART X, LINE 2 A FIN 48 FOOTNOTE WAS NOT INCLUDED IN THE CONSOLIDATED FINANCIAL STATEMENTS. PACKER PINK OUT 13518 13518 0 6137 GOLF OUTING 11534 2100 9434 250 1159 2685 350 1 12838 4175 8663 510 10370 37890 19793 18097 250 1669 2685 0 0 16857 21461 -3364 true true X true X false true true false true true 1081282 1081282 0.01690 12874725 10503077 2371648 0.03700 0 0.00000 0 0 13956007 10503077 3452930 0.05390 90795 90795 0.00140 0 0.00000 0 0.00000 0 0.00000 32622 32622 0.00050 0 0 123417 0 123417 0.00190 0 0 14079424 10503077 3576347 0.05580 0 0.00000 0 0.00000 55 9613 9613 0.00010 2 1043 1043 0.00000 0 0.00000 5 383 383 0.00000 83 31020 31020 0.00050 0 0.00000 0 0.00000 145 0 42059 0 42059 0.00070 true 1815593 0 21441606 22777761 -1336155 X true true 1 1 SPECTRUM HEALTH GERBER MEMORIAL

212 S SULLIVAN ST FREMONT MI 49412

X X X HOSPITAL SPECTRUM HEALTH GERBER MEMORIAL 1 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) 4,670,723 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. Community Building Activities Schedule H, Part II THE TAXPAYER WORKS TO ADDRESS MANY OF THE COMMUNITY'S PRESSING HEALTH ISSUES BY PROMOTING AND ADVOCATING FOR OVERALL COMMUNITY HEALTH IMPROVEMENT. COMMUNITY BUILDING ACTIVITIES INCLUDE: 1. PROVIDING PHYSICAL IMPROVEMENTS AND ECONOMIC DEVELOPMENT; 2. PROVIDING LEADERSHIP DEVELOPMENT AND TRAINING FOR COMMUNITY MEMBERS AND PARTNERS; 3. RAISING AWARENESS THROUGH CONDUCTING ASSESSMENTS, PROVIDING EDUCATION AND ASSISTING IN DISEASE MANAGEMENT; 4. OFFERING PRESENTATIONS AND DEMONSTRATIONS TO MEMBERS OF THE COMMUNITY AND THROUGHOUT THE LOCAL SCHOOLS. Bad debt expense - financial statement footnote Schedule H, Part III, Line 4 CONSOLIDATED FINANCIAL STATEMENT FOOTNOTE EXTRACT RELATED TO UNCOLLECTIBLE ACCOUNTS THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON ACCOUNTS RECEIVABLE PAYOR COMPOSITION AND AGING, AND HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY AND OTHER FACTORS. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTED ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. AFTER AMOUNTS DUE FROM THIRD-PARTY PAYORS ARE SATISFIED, AND REASONABLE EFFORTS TO COLLECT FROM THE PATIENT HAVE BEEN EXHAUSTED, THE SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH EXTERNAL COLLECTION AGENCIES. COSTING METHODOLOGY USED IN DETERMINING THE FIGURES REPORTED IN SCH. H, PART III, LINE 1 BAD DEBTS, AT COST, ARE DETERMINED BY USING AN OVERALL RATIO OF COSTS-TO-CHARGES APPLIED AGAINST BAD DEBT EXPENSES (AT CHARGES) IN THE STATEMENT OF ACTIVITIES. RATIONAL FOR INCLUDING BAD DEBTS (AT COST) IN SCH. 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 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 SCH. 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) STATE AND PUBLIC HEALTH STATISTICS AVAILABLE ON LINE 2) NEWAYGO COUNTY HEALTH DEPARTMENT - HEALTHIER COMMUNITIES NEEDS ASSESSMENT 3) NEWAYGO COUNTY COMMUNITY CONSORTIUM DATA DASHBOARD 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 OF SEVERAL COUNTIES INCLUDING NEWAYGO COUNTY, EASTERN OCEANA COUNTY AND EASTERN MUSKEGON COUNTY AS PRIMARY AND NORTHERN KENT COUNTY AND SOUTHERN LAKE COUNTY AS SECONDARY. 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 true true X X X X X true true false false false false false false false DR MARK BYLAND 230613 0 0 0 0 0 10369 0 14600 0 255582 0 0 0 MATTHEW VAN VRANKEN 0 688046 0 81165 0 16058 0 214976 0 90753 0 1090998 0 0 MARC CHIRCOP 0 362934 0 45480 0 14207 0 124900 0 53631 0 601152 0 0 RANDALL STASIK 227580 0 10000 0 2906 0 31514 0 36888 0 308888 0 0 0 DR JAMES PATENGE 263201 0 23623 0 0 0 14086 0 18549 0 319459 0 0 0 DR TAMI MICHELE 272075 0 11250 0 0 0 9144 0 17677 0 310146 0 0 0 MARCUS GARDENER 237445 0 0 0 0 0 13052 0 16281 0 266778 0 0 0 JEFFERY HAWKER 237865 0 0 0 0 0 13069 0 15730 0 266664 0 0 0 JOHN SELLA 130262 0 0 0 197 0 7736 0 17424 0 155619 0 0 0 DAVID POEL 230402 0 0 0 0 0 13660 0 15130 0 259192 0 0 0 Health or social club dues or initiation fees Schedule J, Part I, Line 1a THE TAXPAYER PROVIDED HEALTH CLUB DUES FOR CERTAIN EXECUTIVE EMPLOYEES. THE RELATED AMOUNTS WERE TREATED AS TAXABLE COMPENSATION AND INCLUDED IN FORM W-2. Severance or change-of-control payment Schedule J, Part I, Line 4a PER HER CONTRACT, THE FORMER CNO RECEIVED SEVERANCE PAY OF $91,223 FOR ONE YEAR AFTER HER RESIGNATION. Supplemental nonqualified retirement plan Schedule J, Part I, Line 4b SCHEDULE J, PART I, LINE 4B IS ANSWERED "YES" BECUASE 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. CITY OF FREMONT HOSPITAL FINANCE AUTHORITY 383468654 35733OAC3 2007-03-07 10800000 CAPITAL FUNDING false false false MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 382889417 59465E7F4 2004-11-10 2700000 CAPITAL FUNDING false false true 1795000 0 10800000 0 0 0 190750 0 0 10609250 0 0 2007 false false true true 1176536 0 2700000 0 0 0 32486 0 0 2667514 0 0 2005 false false true true false true 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 PINE MEDICAL GROUP BUSINESS 357269 SEE SCH L, PART V-SERVICES false PINE MEDICAL GROUP BUSINESS 423667 SEE SCH L, PART V-RENTAL false MR JORDAN SELLA FAMILY 11863 SEE SCH L, PART V false MR JARED SELLA FAMILY 109 SEE SCH L, PART V false MRS DEBRA SELLA FAMILY 67350 SEE SCH L, PART V false MRS MARY HENRY FAMILY 57181 SEE SCH L, PART V false FAMILY RELATIONSHIPS PART IV, LINE 28B & SCH L, PART IV MR. SELLA, AN OFFICER OF THE TAXPAYER, HAS A SPOUSE AND CHILDREN THAT ARE EMPLOYED BY THE TAXPAYER. MR. HENRY, A MEMBER OF THE TAXPAYER'S BOARD OF DIRECTORS, HAS A SPOUSE THAT WORKS FOR THE TAXPAYER. BUSINESS TRANSACTIONS WITH INTERESTED PERSONS PART IV, LINE 28C & SCH L, PART IV DR. WELSH, A MEMBER OF THE TAXPAYER'S BOARD OF DIRECTORS, IS A DIRECTOR OF A TAXABLE ENTITY THAT HAS A BUSINESS RELATIONSHIP WITH THE TAXPAYER. THE TAXPAYER ALSO LEASES RENTAL SPACE TO THE SAME TAXABLE ENTITY. 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. Description of other program services Form 990, Part III, Line 4d WELLNESS PROGRAMMING AND COMMUNITY EDUCATION, AVAILABLE TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. 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. 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 TAXPAYER'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 MEMBERSHIP OF THE CORPORATION CONSISTS OF ONE CLASS, AND THE ONLY MEMBER OF THE CORPORATION SHALL BE SPECTRUM HEALTH SYSTEM ("SYSTEM") (EIN 38-3382353), A MICHIGAN NONPROFIT CORPORATION. Members or stockholders electing members of governing body Form 990, Part VI, Section A, Line 7a THE SOLE MEMBER 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 THE 990 IS POSTED TO THE BOARD OF DIRECTORS PORTAL FOR REVIEW AND APPROVAL FOR FILING. THE REVIEW PROCESS FOR THIS FORM 990 IS AS FOLLOWS: 1. PREPARATION AND REVIEW OF THE RETURN IS PERFORMED BY AN EXTERNAL CPA FIRM WITH EXPERTISE IN TAX-EXEMPT RETURN PREPARATION. 2. THE RETURN IS REVIEWED BY THE INTERNAL TAX DEPARTMENT. 3. THE TAXPAYER'S VP OF FINANCE 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 GERBER MEMORIAL'S BEST INTEREST. 4.THE BOARD OF DIRECTORS OR COMMITTEE SHALL EXERCISE DUE DILIGENCE TO DETERMINE WHETHER SPECTRUM HEALTH GERBER MEMORIAL 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 GERBER MEMORIAL'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SPECTRUM HEALTH GERBER MEMORIAL, 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 GERBER MEMORIAL COMMITTEES SHALL SET FORTH: A)THE NAMES OF THE PERSONS WHO DISCLOSED A FINANCIAL INTEREST IN A PROPOSED TRANSACTION OR ARRANGEMENT INVOLVING SPECTRUM HEALTH GERBER MEMORIAL 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 DR. MARK BYLAND - 0 MATTHEW VAN VRANKEN - 50 MARC CHIRCOP - 50 DAVE ROBINSON - 0 DON HENRY - 0 STEPHEN WELSH, MD - 0 JOHN MELLEMA - 0 CAROLYN HUMMEL - 0 BRENT BECKMAN, MD - 0 TODD BLAKE - 0 LAUREL BRUEKER - 0 TRAVIS BULL - 0 JANE DRAKE - 0 RANDALL STASIK - 0 DR. JAMES PATENGE - 0 DR. TAMI MICHELE - 0 MARCUS GARDENER - 0 JEFFERY HAWKER - 0 JOHN SELLA - 0 DOUGLAS JOHNSON, MD - 0 LARRY LETHORN - 0 MIKE PUMFORD - 0 DAVID POEL - 0 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. INDIVIDUALS WITH COMPENSATION REPORTED IN PART VII WORK A COMBINED AVERAGE OF 40-50 HOURS PER WEEK FOR THE REPORTING ORGANIZATION AND/OR A RELATED TAX-EXEMPT ORGANIZATION. Other changes in net assets or fund balances Form 990, Part XI, Line 5 CHANGE IN FMV OF SWAP INTEREST AGREEMENT - 88020; HPS LLC K-1 - -210; GIFT SHOP - -4776; 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 false false false false false false true false true true false false false false false false MICHIGAN MEDICAL PC I 8688 CASH, GAAP, OR FMV PRIORITY HEALTH K 7446445 CASH, GAAP, OR FMV BLODGETT ASSURANCE COMPANY L 65000 CASH, GAAP, OR FMV SPECTRUM HEALTH SYSTEM L 600 CASH, GAAP, OR FMV WEST MICHIGAN HEART L 63600 CASH, GAAP, OR FMV SPECTRUM HEALTH HOSPITALS L 1590718 CASH, GAAP, 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.