2012-08-15T16:10:07-05:00 2011-09-30 PLANTE & MORAN PLLC 511 RENAISSANCE DRIVE ST JOSEPH MI 49085 990 2010-10-01 382156872 LAKELAND HOSPITALS AT NILES AND ST JOSEPH INC LAKE 2699838166 1234 NAPIER AVENUE ST JOSEPH MI 49085 TIM CALHOUN 2699838166 2012-08-15 1 KENLEY G PENNER CPA 2699828000 2010 2016-02-24 21:20:13Z LAKELAND HEALTHCARE TIM CALHOUN 1234 NAPIER AVENUE ST JOSEPH MI 49085 545944237 0 X LAKELANDHEALTH.ORG X 1985 MI LAKELAND HOSPITAL IS A 339 BED ACUTE CARE HOSPITAL AND PROVIDES A FULL CONTINIUM OF HEALTHCARE SERVICES TO IT'S TRI-COUNTY AREA. LAKELAND REGIONAL HEALTH SYSTEM IS THE PARENT COMPANY FOR LAKELAND HOSPITALS, NURSING HOMES, AND OTHER HEALTH-RELATED SERVICE CORPORATIONS SERVING THE TRI-COUNTY AREA. 23 22 3260 700 4373317 -71018 1608150 2506830 309517192 330557561 11610312 15201730 1154402 1247457 323890056 349513578 0 8951144 0 0 133217530 142609341 0 0 0 151533151 159951479 284750681 311511964 39139375 38001614 596426051 611140367 198238065 196141630 398187986 414998737 TO BE SOUTHWESTERN MICHIGAN'S LEADER IN SAFE, HIGH QUALITY, PATIENT CENTERED, COMPASSIONATE, HEALTH-RELATED SERVICES. 0 0 235871759 8951144 326347954 HOSPITAL SERVICES PROVIDED TO 17,545 INPATIENTS AND 315,707 OUTPATIENTS. 235871759 1 1 0 1 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 0 0 1 3260 1 1 1 0 0 0 0 0 0 0 0 0 X 23 22 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MI X TIMOTHY J CALHOUN 2699838166 1234 NAPIER AVENUE ST JOSEPH MI 49085 JEFF EDMUNDS 3.00 X X 0 0 0 TERRENCE ALLEN 3.00 X X 0 0 0 LEN AMAT 2.00 X 0 0 0 DAVID BINKLEY 2.00 X 0 0 0 PATRICIA HALL 2.00 X 0 0 0 GEORGE HEENAN MD 2.00 X 0 0 0 DANIEL HOPP 5.00 X X 0 0 0 J DOUGLAS HUGGETT DO 2.00 X 0 0 0 GEORGE KOLETTIS MD 2.00 X 0 0 0 GENE MADDOCK MD 2.00 X 0 0 0 NIELS-ERIK ANDREASEN 2.00 X 0 0 0 MICHAEL MORTIMORE 2.00 X 0 0 0 KENNETH O'NEILL MD 2.00 X 0 0 0 JEFFREY SCHMIDT DDS 2.00 X 0 0 0 KENNETH EDWARDS MD 2.00 X 0 0 0 BETH DODGE 2.00 X 0 0 0 JUDITH ZACHA 2.00 X 0 0 0 LOREN HAMEL MD 40.00 X X 643210 0 9860 LAURIANNE DAVIS 2.00 X 0 0 0 DENNIS THOMPSON MD 2.00 X 0 0 0 MARCUS ROBINSON 2.00 X 0 0 0 MICHAEL WELCH 2.00 X 0 0 0 THOMAS YEAGER 2.00 X 0 0 0 JOSEPH BARRETT 2.00 X 0 0 0 LENORE BECKER 2.00 X 0 0 0 STEPHEN HEMPEL MD 2.00 X 0 0 0 TIMOTHY CALHOUN 40.00 X 344750 0 17954 DENNIS MACK 40.00 X 186181 0 14594 MARY ANN PATER 40.00 X 154757 0 11845 LOWELL HAMEL 16.00 X 172584 0 0 EILEEN WILLITS 40.00 X 259842 0 16685 ROBIN MACK 40.00 X 174129 0 9063 LAURIE FLEMING 40.00 X 183884 0 11669 NORMA TIRADO-KELLENBERGER 40.00 X 292898 0 950 WARREN WHITE 40.00 X 170540 0 5943 DAVID BURGHART 40.00 X 140759 0 1609 MARK PAULSON 40.00 X 138719 0 11830 JAMES SCHLAMAN 40.00 X 146356 0 10936 MIKE KASTNER 40.00 X 139754 0 10199 NEIL JOHNSON 40.00 X 129312 0 17490 JANN TOTZKE 40.00 X 137106 0 11861 3274022 0 160879 16 0 1 0 LIBERTY DIALYSIS - LAKELAND PO BOX 10349 UNIONDALE NY 11555 DIALYSIS SERVICES 1977787 ALLIANCE - HNI PETCT SERVICES PO BOX 402209 ATLANTA GA 30384 PET SCAN RADIOLOGY SERVICES 1952120 SUNSET COAST ANESTHESIA ASSOCIATES 1234 NAPIER AVE ST JOSEPH MI 49085 ST. JOSEPH ANESTHESIA FEES 1914931 DA DODD INC PO BOX 430 ROLLING PRAIRIE IN 46371 PLUMBING 1412154 SOUTH BEND MEDICAL FOUNDATION 530 NORTH LAFAYETTE BLVD SOUTH BEND IN 46601 LAB WORK 1230438 5 2331559 175271 2506830 PATIENT SERVICE REVENU 541380 329799023 325589416 4209607 MISCELLANEOUS 541380 683662 683662 MEDICAL RECORD FEES 541380 74876 74876 330557561 6882003 6882003 148417 148417 148417 148417 204737165 13221 196430659 8306506 13221 8319727 8319727 CAFETERIA SALES 722210 925740 925740 GRAPHIC SERVICES 519100 163710 163710 VENDING MACHINES 445100 9590 9590 1099040 349513578 326347954 4373317 16285477 8951144 8951144 2994315 2245736 748579 107057628 80293221 26764407 4229447 3172085 1057362 20339855 15254891 5084964 7988096 5991072 1997024 89661 67246 22415 224315 168236 56079 10679707 8009780 2669927 452724 339543 113181 3054711 2291033 763678 11189208 8391906 2797302 776403 582302 194101 5563609 4172707 1390902 18808247 14106185 4702062 1088383 816287 272096 MEDICAL AND OFFICE SUPP 56695151 42521363 14173788 BAD DEBTS 15619228 11714421 3904807 PHYSICIAN RELATIONS 11459803 8594852 2864951 QAAP ASSESSMENTS 7498303 5623727 1874576 COLLECTION COSTS 2131553 1598665 532888 14620473 10965357 3655116 311511964 235871759 75640205 0 60957513 64789752 23059013 25227681 5797145 6307708 3977563 4263553 423534809 199143049 201271431 224391760 289232363 274450703 12131023 11709210 596426051 611140367 34927793 33344820 116525643 113645230 46784629 49151580 198238065 196141630 X 393634633 410912010 4553353 4086727 398187986 414998737 596426051 611140367 X 38001614 -21190863 X X 0 1 1 X 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: A PORTION OF DUES PAID TO MHA HAVE BEEN ALLOCATED TO LOBBYING ACTIVITIES. 5326000 5326000 180141380 57820339 122321041 5722972 3583068 2139904 209762571 137739642 72022929 22581886 22581886 224391760 PROVISION FOR MEDICAL MALPRACTICE 6532000 PROVISION FOR DEFERRED COMPENSATION 3886950 PROVISION FOR POSTRETIREMENT BENEFIT 15944163 INTEREST RATE SWAP AGREEMENTS 22788467 49151580 349513578 311511964 38001614 -16848900 -4341963 -21190863 16810751 326243065 -16848900 -4090054 -20938954 347182019 2331559 2331559 349513578 302560819 0 302560819 8951144 8951144 311511963 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: THE INTERNAL REVENUE SERVICE HAS RULED THAT THE HOSPITAL IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. ACCORDINGLY, NO TAX PROVISION IS REFLECTED IN THE FINANCIAL STATEMENTS. ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE HOSPITAL AND RECOGNIZE A TAX LIABILITY IF THE HOSPITAL HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE HOSPITAL AND HAS CONCLUDED THAT AS OF SEPTEMBER 30, 2011, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE HOSPITAL IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2008. PART XI, LINE 8 - OTHER ADJUSTMENTS: CHANGE IN INTEREST IN FOUNDATION -486,191. CHANGE IN SWAP VALUATION -3,603,863. GAIN FROM PARTNERSHIP K-1 3,557. TRANSFER TO FOUR FLAGS PROPERTIES, INC. -255,466. PART XII, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN FAIR VALUE OF SWAP AGREEMENTS -3,603,863. CHANGE IN INTEREST IN FOUNDATIONS -486,191. PART XII, LINE 4B - OTHER ADJUSTMENTS: CONTRIBUTION FROM HOME INFUSION SERVICES, INC. 230,684. CONTRIBUTION FROM LAKELAND HEALTH FOUNDATION, BENTON HARBOR/ST. JOSEPH 2,059,505. CONTRIBUTION FROM LAKELAND HEALTH FOUNDATION, NILES 41,370. PART XIII, LINE 4B - OTHER ADJUSTMENTS: GRANT TO LAKELAND REGIONAL HEALTH SYSTEM, INC. 8,000,000. GRANT TO LAKELAND COMMUNITY HOSPITAL - WATERVLIET 951,144. 1 1 X 1 X 1 1 1 1 0 1 1 1 1000 8118969 8118969 0.02740 1 65837 47847966 45756050 2091916 0.00710 2 66837 55966935 45756050 10210885 0.03450 605 163216 2077349 2077349 0.00700 129 1968 3633228 3633228 0.01230 152 3488 105119 105119 0.00040 886 168672 5815696 5815696 0.01970 888 235509 61782631 45756050 16026581 0.05420 2 177 2511 2511 0.00000 1 100 663 663 0.00000 14 747 2507 2507 0.00000 12 14 455 455 0.00000 29 1038 6136 6136 1 7015438 3507719 118838518 123891541 -5053023 X 2 1 LAKELAND HOSPITALS AT NILES

31 N STREET JOSEPH AVENUE NILES MI 49120

X X X 2 LAKELAND HOSPITALS AT ST JOSEPH

1234 NAPIER AVENUE ST JOSEPH MI 49085

X X X NA 1 PART I, LINE 7: THE COST TO CHARGE RATIO WAS USED BASED ON WORKSHEET 2 OF THE INSTRUCTIONS. PART I, L7 COL(F): ACCOUNTS RECEIVABLE FROM PATIENTS, INSURANCE COMPANIES, ANDGOVERNMENTAL AGENCIES ARE BASED ON GROSS CHARGES. AN ALLOWANCE FOR UNCOLLECTIBLEACCOUNTS IS ESTABLISHED ON AN AGGREGATE BASIS BY USING HISTORICAL LOSS RATE FACTORS APPLIEDTO UNPAID ACCOUNTS BASED ON AGING. LOSS RATE FACTORS ARE BASED ON HISTORICAL LOSSEXPERIENCE AND ADJUSTED FOR ECONOMIC CONDITIONS AND OTHER TRENDS AFFECTING THEHOSPITAL'S ABILITY TO COLLECT OUTSTANDING AMOUNTS. UNCOLLECTIBLE AMOUNTS ARE WRITTEN OFFAGAINST THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS IN THE PERIOD THEY ARE DETERMINED TO BEUNCOLLECTIBLE. AN ALLOWANCE FOR CONTRACTUAL ADJUSTMENTS AND INTERIM PAYMENT ADVANCESIS BASED ON EXPECTED PAYMENT RATES FROM PAYORS BASED ON CURRENT REIMBURSEMENTMETHODOLOGIES. THIS AMOUNT ALSO INCLUDES AMOUNTS RECEIVED AS INTERIM PAYMENTSAGAINST UNPAID CLAIMS BY CERTAIN PAYORS. PART I LINES 7F AND 7I HEALTH PROFESSIONS EDUCATION - INCLUDES PROVIDING A CLINICAL SETTING FOR UNDERGRADUATE AND GRADUATE STUDENTS, VOCATIONAL TRAINING, AND THE PROFESSIONAL HEALTH CAREERS ACADEMY FOR ELEVENTH AND TWELFTH GRADE STUDENTS.CASH & IN-KIND DONATIONS TO COMMUNITY GROUPS - REPRESENTS LAKELANDS FINANCIAL AND IN-KIND CONTRIBUTIONS TO SOCIAL SERVICES OR COMMUNITY AGENCIES FOR HEALTHCARE RELATED ACTIVITIES, DONATION OF MEDICAL SUPPLIES, UNITED WAY LEADERSHIP, GIRLS ON THE RUN, AND MEMBERSHIP ON COMMUNITY BOARDS. PART II: COMMUNITY BUILDING ACTIVITIES INCLUDE HOSTS MENTORING PROGRAM FOR YOUNG CHILDREN, HEALTH CAREER PRESENTATIONS TO AREA STUDENTS, DISASTER READINESS, AND YOUNG ENTREPRENEURS DAY FOR AREA HIGH SCHOOL STUDENTS PART III, LINE 4: THE BAD DEBT EXPENSE AT COST WAS CALCULATED USING THE COST TO CHARGE RATIO FROM WORKSHEET 2. PART III, LINE 8: IT IS ESTIMATED THAT 80% OF THE MEDICARE SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT BASED ON THE NUMBER OF PATIENTS THAT MAY HAVE QUALIFIED FOR FREE OR DISCOUNTED CARE HAD THEY NOT BEEN COVERED BY MEDICARE. PART VI, LINE 2: THE ORGANIZATION USES NEEDS ASSESSMENT PREPARED BY THE COUNTY HEALTH DEPARTMENT AND PARTICIPATE IN A REGIONAL HEALTHY BERRIEN COMMUNITY COMMITTEE TO ADDRESS HEALTH NEEDS. PART VI, LINE 3: THE ORGANIZATION EMPLOYS MORE THAN 12 FINANCIAL COUNSELORS WHO ASSIST PATIENTS WITH ELIGIBILITY. PART VI, LINE 4: THE ORGANIZATION SERVES 150,000 RESIDENTS IN BERRIEN COUNTY AND THE SURROUNDING AREAS. PART VI, LINE 6: COMMUNITY HEALTH IMPROVEMENT SERVICES & COMMUNITY BENEFIT OPERATIONS-REPRESENTS THOSE ACTIVITIES THAT HELP IMPROVE THE HEALTH AND QUALITY OF LIFE OF PEOPLE IN THE COMMUNITY. COMMUNITY HEALTH PRESENTATIONS, ACT IN TIME TO HEART ATTACK AND STROKE, EXPECTANT PARENT, TEEN PREGNANCY PREVENTION BABY THINK IT OVER! AND POSTPONING SEXUAL INVOLVEMENT, ADVANCED DIRECTIVES, SENIOR-EXPO, PRE-DIABETES, FALLS PREVENTION, MEDICATION SAFETY, HEARTSAFE AND HEART LESSONS, CANCER SUPPORT PROGRAMS, SUCH AS LOOK GOODFEEL BETTER, PROSTATE CANCER AWARENESS, SKIN CANCER SCREENING, COLORECTAL CANCER SCREENING, AND THE ANNUAL CARE FAIR, BREAST HEALTH AWARENESS, HEALTH RESOURCE LIBRARIES AT TWO SITES, PARISH AND SENIOR CENTER NURSES, AND HEALTH SCREENINGS ARE SOME EXAMPLES. PART VI, LINE 7: THE ORGANIZATION IS PART OF LAKELAND REGIONAL HEALTH SYSTEM WHICH SERVES THE SAME GEOGRAPHIC AREA FOR HEALTHCARE RELATED SERVICES. REPORTS FILED WITH STATES PART VI, LINE 7 MI 0 LAKELAND REGIONAL HEALTH SYSTEM INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 382609624 501(C)(3) 8000000 N/A N/A GENERAL SUPPORT LAKELAND COMMUNITY HOSPITAL - WATERVLIET 400 MEDICAL PARK DRIVE WATERVLIET MI 49098 381368745 501(C)(3) 951144 N/A N/A GENERAL SUPPORT 2 X X X X X 0 1 0 0 0 0 0 0 0 LOREN HAMEL MD 490382 0 139650 0 13178 0 7350 0 2510 0 653070 0 0 0 TIMOTHY CALHOUN 278454 0 53683 0 12613 0 14700 0 3254 0 362704 0 0 0 DENNIS MACK 154569 0 27224 0 4388 0 9500 0 5094 0 200775 0 0 0 MARY ANN PATER 139094 0 11424 0 4239 0 8556 0 3289 0 166602 0 0 0 LOWELL HAMEL 144961 0 27623 0 0 0 0 0 0 0 172584 0 0 0 EILEEN WILLITS 213909 0 41473 0 4460 0 12950 0 3735 0 276527 0 0 0 ROBIN MACK 152549 0 19508 0 2072 0 9063 0 0 0 183192 0 0 0 LAURIE FLEMING 158229 0 19094 0 6561 0 9492 0 2177 0 195553 0 0 0 NORMA TIRADO-KELLENBERGER 216348 0 46550 0 30000 0 0 0 950 0 293848 0 0 0 WARREN WHITE 140790 0 29750 0 0 0 3686 0 2257 0 176483 0 0 0 MARK PAULSON 134427 0 1140 0 3152 0 8215 0 3615 0 150549 0 0 0 JAMES SCHLAMAN 140342 0 1140 0 4874 0 8462 0 2474 0 157292 0 0 0 PART I, LINE 4B LAKELAND MAINTAINS A SUPPLEMENTAL RETIREMENT AND PRE-RETIREMENT DEATH BENEFIT PLAN FOR THE PURPOSE OF PROVIDING SUPPLEMENTAL RETIREMENT BENEFITS TO EMPLOYEES WHO ARE ELIGIBLE UNDER THE TERMS AND CONDITIONS OF THE PLAN. THE PLAN IS INTENDED TO BE A NONQUALIFIED UNFUNDED DEFERRED COMPENSATION PLAN FOR A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES. THE ANNUAL BENEFIT UNDER THE PLAN IS 1% OF FINAL AVERAGE PAY TIMES YEARS OF SERVICE (27.5 YEARS LIMIT) FOR PARTICIPANTS WHO HAVE ACHIEVED NORMAL RETIREMENT AGE OF 63 AND HAVE COMPLETED 10 YEARS OF SERVICE. THE ANNUAL BENEFIT IS PAID AS A LUMP SUM BASED ON 15 YEARS DISCOUNTED AT 6%. THERE IS NO BENEFIT EARNED OR PAID FOR PARTICIPANTS WHO SEPARATE FROM LAKELAND'S EMPLOYMENT BEFORE AGE 63. THE INDIVIDUALS LISTED IN PART VII WHO PARTICIPATED IN THE SERP ARE: LOREN HAMEL, TIM CALHOUN, LAURIE FLEMING, DENNIS MACK, LOWELL HAMEL, MARY ANN PATER, EILEEN WILLITS, NORMA TIRADO, AND WARREN WHITE. ROBIN MACK DISCONTINUED EMPLOYMENT WITH LAKELAND DURING THE 2011 FISCAL YEAR AND WAS REMOVED FROM THE PROGRAM. HOSPITAL AUTHORITY OF THE CITY OF ST JOSEPH (MICHIGAN) 383151499 790678CC8 2003-12-17 41525000 REFUND BONDS ISSUED 1/13/94 AND FACILITY CONSTRUCTION AND IMPROVEMENTS 0 0 0 HOSPITAL AUTHORITY OF THE CITY OF ST JOSEPH (MICHIGAN) 383151499 790678CD6 2006-01-26 50000000 FACILITY CONSTRUCTION AND IMPROVEMENTS 0 0 0 41643043 193091 31392505 10057446 2004 1 0 1 1 52613405 467500 1012738 51133167 2007 0 0 1 1 0 0 1 0 1 1 0 0 0 0 1 1 0 1 1 UBS AG 28.000000000000 0 0 0 0 1 1 1 1 UBS AG 28.900000000000 0 0 1 CITIGROUP GLOBAL MARKETS 2.700000000000 1 0 0 FORM 990, PART VI, SECTION A, LINE 2 ROBIN MACK AND DENNIS MACK HAVE A FAMILY RELATIONSHIP. LOREN HAMEL, MD AND LOWELL HAMEL HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 A COPY OF THE 990 HAS BEEN POSTED ON THE BOARD PORTAL FOR REVIEW PRIOR TO FILING. THE BOARD PORTAL IS AVAILABLE TO ALL BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATE COMPLIANCE DEPARTMENT, IN ACCORDANCE WITH THE CONFLICT OF INTEREST POLICY, ANNUALLY DISTRIBUTES THE CONFLICT OF INTEREST DISCLOSURE SURVEY TO ALL CORPORATE AND SUBSIDIARY ORGANIZATION BOARD MEMBERS, EXECUTIVES AND OTHER LEADERSHIP EMPLOYEES. THE CORPORATE COMPLIANCE DEPARTMENT, THROUGH THE GOVERNANCE COMMITTEE, COMPILES AND ANALYZES SURVEY DATA BY ORGANIZATION, INVESTIGATES, AND REVIEWS POTENTIAL CONFLICTS WITH THE ORGANIZATION'S CEO AND BOARD CHAIR, AND WHEN NECESSARY, RECOMMENDS ACTIONS TO BE TAKEN TO RESOLVE IDENTIFIED CONFLICTS. A COMPLETE REPORT OF ALL CORPORATE AND SUBSIDIARY BOARD MEMBER AND EXECUTIVE DISCLOSURES, CONFLICTS IDENTIFIED AND ACTIONS TAKEN IS REVIEWED BY THE GOVERNANCE COMMITTEE AND EACH SUBSIDIARY CEO AND BOARD CHAIR RECEIVES A REPORT SPECIFIC TO THEIR ORGANIZATION'S BOARD MEMBERS AND EXECUTIVES. BOARD MEMBERS FAILING TO COMPLETE A DISCLOSURE SURVEY OR INTENTIONALLY FAILING TO REPORT A KNOWN CONFLICT OF INTEREST ARE ASKED TO RESIGN. FORM 990, PART VI, SECTION B, LINE 15 AN INDEPENDENT FIRM IS HIRED BY THE BOARD TO DETERMINE COMPENSATION PACKAGES FOR THE CEO AND SENIOR MANAGEMENT ON AN ANNUAL BASIS. THE FIRM PRESENTS COMPARATIVE PAY RANGES AND COMPENSATION RECOMMENDATIONS TO THE GOVERNANCE (COMPENSATION) COMMITTEE FOR THEIR APPROVAL. FOR SENIOR MANAGEMENT, THE CEO CAN PROVIDE INPUT AND RECOMMENDATIONS TO THE GOVERNANCE COMMITTEE. FOR THE CEO'S COMPENSATION, THE GOVERNANCE COMMITTEE PRESENTS THE COMPENSATION PACKAGE TO THE FULL BOARD FOR APPROVAL. WRITTEN CONTRACTS FOR THE CEO ARE APPROVED BY THE FULL BOARD OF DIRECTORS. THE MOST RECENT YEAR THIS PROCESS WAS UNDERTAKEN WAS FISCAL YEAR 2011. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS AND THE CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED LOSSES ON INVESTMENTS: -16,848,900. CHANGE IN INTEREST IN FOUNDATION -486,191. CHANGE IN SWAP VALUATION -3,603,863. GAIN FROM PARTNERSHIP K-1 3,557. TRANSFER TO FOUR FLAGS PROPERTIES, INC. -255,466. TOTAL TO FORM 990, PART XI, LINE 5: -21,190,863. FORM 990, PART XII, LINE 2C: THERE HAS BEEN NO CHANGE IN AUDIT OVERSIGHT PROCESS FROM THE PRIOR YEAR. LAKELAND SPECIALTY HOSPITAL AT BERRIEN CENTER 1234 NAPIER AVENUE ST JOSEPH MI 49085 383452303 LONGTERM HEALTHCARE/HEALING SERVICES MI 501(C)(3) LINE 3 LAKELAND REGIONAL HEALTH SYSTEM INC 1 MERCY MEMORIAL HEALTH SERVICES 3425 LAKESHORE DRIVE ST JOSEPH MI 49085 382748035 PROVIDE HOMECARE AND LONG-TERM HEALTHCARE TO PATIENTS IN SOUTHWEST MICHIGAN MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND HEALTH FOUNDATION BENTON HARBORST JOSEPH 1234 NAPIER AVENUE ST JOSEPH MI 49085 382539929 PROMOTE AND ASSIST IN PROVIDING HEALTH CARE MI 501(C)(3) LINE 7 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND HEALTH FOUNDATION NILES 1234 NAPIER AVENUE ST JOSEPH MI 49085 383130558 PROMOTE/ASSIST IN PROVIDING HEALTH CARE SERVICES IN SOUTHWESTERN MICHIGAN MI 501(C)(3) LINE 7 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND HEALTH SERVICES INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 203007464 TO PROVIDE SKILLED PRIVATE NURSING CARE TO THE SOUTHWESTERN MICHIGAN AREA MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 HOME INFUSION SERVICES INC DBA LAKELAND HOME INFUSION 1234 NAPIER AVENUE ST JOSEPH MI 49085 382969335 PROVIDE IN-HOME INTRAVENOUS THERAPY SERVICES MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND REGIONAL HEALTH SYSTEM INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 382609624 PROVIDE A COMPREHENSIVE SYSTEM OF HEALTH CARE TO CITIZENS OF THE COMMUNITY MI 501(C)(3) LINE 11B, II N/A 0 MERCY HEALTH CLINIC INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 383178765 TO PROVIDE HEALTH CARE FOR THE COUNTY OF BERRIEN AND THE SURROUNDING AREA MI 501(C)(3) LINE 3 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND COMMUNITY HOSPITAL - WATERVLIET 400 MEDICAL PARK DRIVE WATERVLIET MI 49098 381368745 TO PROVIDE GENERAL HEALTH OF THE COMMUNITY THROUGH EDUCATION AND HEALTHCARE MI 501(C)(3) LINE 3 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND HOSPITAL AUXILIARY ST JOSEPH 1234 NAPIER AVENUE ST JOSEPH MI 49085 383674457 TO RENDER VOLUNTEER SERVICES TO LAKELAND REGIONAL HEALTH SYSTEM, ST JOSEPH MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND AUXILIARY BERRIEN GENERAL 6418 DEANS HILL ROAD BERRIEN CENTER MI 49102 237025742 TO RENDER SERVICE TO LAKELAND SPECIALTY HOSPITAL, BERRIEN CENTER MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELAND NILES AUXILIARY 1234 NAPIER AVENUE ST JOSEPH MI 49085 386076112 TO ENGAGE IN CHARITABLE ACTIVITIES TO ASSIST LKLD COMMUNITY HOSPITAL, NILES MI 501(C)(3) LINE 9 LAKELAND REGIONAL HEALTH SYSTEM INC 1 LAKELINE ASSOCIATES LLC 910 S WASHINGTON AVENUE ROYAL OAK MI 48067 383306318 PROPERTY MANAGEMENT/RENTAL MI N/A CLIFFSIDE COMPANY LLC DBA CARETEL INNS OF ROYALTON 910 S WASHINGTON AVENUE ROYAL OAK MI 48067 383306320 ASSISTED LIVING MI N/A LIBERTY DIALYSIS LAKELAND LLC 7650 SE 27TH STREET SUITE 200 MERCER ISLAND WA 98040 272099855 MEDICAL SERVICES WA N/A VAN'S MEDICAL EQUIPMENT OF LAKELAND LLC 1234 NAPIER AVENUE ST JOSEPH MI 49085 261497708 MEDICAL EQUIPMENT MI N/A NILES PROFESSIONAL SERVICES INC 31 NORTH ST JOSEPH AVENUE NILES MI 49120 382633419 MEDICAL ADMINISTRATIVE SERVICES MI N/A C THE PHARMACY SHOPPE INC DBA LAKELAND PHARMACY SHOPPE 1234 NAPIER AVENUE ST JOSEPH MI 49085 382929090 PHARMACEUTICALS MI N/A C FOUR FLAGS PROPERTIES INC 122 GRANT STREET NILES MI 49120 364501639 PROPERTY MANAGEMENT/RENTAL MI N/A C LAKELAND PHYSICIAN CARE NETWORK 1234 NAPIER AVENUE ST JOSEPH MI 49085 208513031 MEDICAL SERVICES MI N/A C LAKELAND MEDICAL PRACTICES 1234 NAPIER AVENUE ST JOSEPH MI 49085 270381199 MEDICAL ADMINISTRATIVE SERVICES MI N/A C LAKELAND HEALTH ENTERPRISE INC 31 NORTH ST JOSEPH AVENUE NILES MI 49120 382669798 ACCOUNTING AND BILLING SERVICES MI N/A C SOUTHWESTERN MEDICAL CLINIC PHYSICIANS INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 272589359 PHYSICIAN OFFICE MI N/A C LAKELAND PERSONAL CARE SERVICES INC 1234 NAPIER AVENUE ST JOSEPH MI 49085 272990797 HEALTH CARE SERVICES MI N/A C 0 1 1 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 LAKELAND HEALTH FOUNDATION BENTON HARBORST JOSEPH C 2059505 GRANT TO FURTHER MISSION LAKELAND HEALTH FOUNDATION NILES C 41370 GRANT TO FURTHER MISSION LAKELAND REGIONAL HEALTH SYSTEM INC B 8000000 ACTUAL LAKELAND HEALTH FOUNDATION BENTON HARBORST JOSEPH P 977000 ESTIMATE LAKELAND HEALTH FOUNDATION BENTON HARBORST JOSEPH P 16000 ESTIMATE LAKELAND HEALTH FOUNDATION NILES P 24000 ESTIMATE MERCY MEMORIAL HEALTH SERVICES INC N 587579 ALLOCATION OF COST HOME INFUSION SERVICES INC C 230684 NBV LAKELAND SPECIALTY HOSPITAL AT BERRIEN CENTER N 14158112 ALLOCATION OF COST FOUR FLAGS PROPERTIES INC B 255466 TRANSFER OF ASSETS LAKELAND COMMUNITY HOSPITAL - WATERVLIET B 951144 ACTUAL