2011-08-15T12:31:54-05:00 2010-09-30 Plante & Moran PLLC 750 TRADE CENTRE WAY STE 300 PORTAGE MI 49002 990 2009-10-01 382689033 LAPEER REGIONAL MEDICAL CENTER LAPE 8106675500 1375 N MAIN ST LAPEER MI 48446 MARY BETH CALLAHAN 8106675500 2011-08-11 1 Carol LaLonde CPA 2695674500 2009 2016-02-24 21:20:13Z BART BUXTON 1375 N MAIN ST LAPEER MI 48446 96158684 0 X www.lapeerhospital.org X 1986 MI PROVIDE HEALTH CARE SERVICES TO THE COMMUNITY AND PROVIDE VARIOUS HEALTH PROMOTION EVENTS. 13 11 897 102 0 0 381164 0 92816791 94109662 285943 426951 -501503 139050 92982395 94675663 2272567 0 38622453 38612614 0 0 49760229 52127316 88382682 93012497 4599713 1663166 82433666 83163362 66571234 67842402 15862432 15320960 PROVIDE HEALTH CARE SERVICES TO THE COMMUNITY. 0 0 74085098 2272567 94109662 PROVISION OF MEDICAL SERVICES FOR THE INPATIENT AND OUTPATIENT CARE OF PERSONS SUFFERING FROM ILLNESS, INJURY AND DISABILITY; FOR THE PREVENTION OF ILLNESS, INJURY AND DISABILITY AND FOR THE MAINTENANCE OF HEALTH. SELECTED ACTIVITY STATISTICS ARE PRESENTED: 30,155 PATIENT DAYS, 26,650 EMERGENCY ROOM VISITS, 6,938 DISCHARGES, 121,067 OUTPATIENT VISITS, AND 564 BIRTHS. 74085098 1 0 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 1 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 0 0 1 47 0 1 897 1 0 0 0 0 0 0 0 0 0 13 11 0 0 0 0 1 1 1 1 1 0 0 0 1 1 1 1 1 1 1 0 X MARY BETH CALLAHAN 8106675500 1375 N MAIN STREET LAPEER MI 48446 KATHRYN LAWTER 1.00 X X 0 10000 0 MIKE ROBINET 1.00 X 0 10000 0 HON JUSTUS SCOTT 1.00 X 0 0 0 PHILIP INCARNATI 1.00 X 0 14617609 520640 CURT CARTER 1.00 X 0 0 0 Kenneth Parsons MD 1.00 X X 0 0 0 KAREN MERSINO 1.00 X X 0 0 0 BARTON BUXTON 40.00 X X 0 661037 48729 James Harrington 1.00 X 0 0 0 ROGER SKINDELL 1.00 X 0 170937 18998 DAVID MAZURKIEWICZ 1.00 X X 0 116597 9617 ROBERT BRENGEL 1.00 X 0 0 0 Mary Beth Callahan 40.00 X 161687 0 12268 Thomas Mee 40.00 X 161413 0 11599 JOSEPH FELTON 40.00 X 135353 0 37921 Amy B Dorr 40.00 X 148418 0 36184 CANDICE BETTS 40.00 X 111629 0 20000 KEN SANGER 40.00 X 118471 0 11184 DENNIS KRZEMINSKI 1.00 X 0 1201166 41657 836971 16787346 768797 14 1 1 0 SABER-SALISBURY GROUP PO BOX 840416 DALLAS TX 75284 CRNA STAFFING 1572548 MORRISON MANAGEMENT SPECIALISTS PO BOX 102289 ATLANTA GA 30368 DIETARY MANAGEMENT & FOOD COSTS 1465242 PROVIDER HEALTH NET SERVICE INC 5400 LBJ FREEWAY SUITE 200 DALLAS TX 75240 TRANSCRIPTION & CODING SERVICES 1048879 HEALTH ADVANTAGE G-3245 BEECHER ROAD FLINT MI 48532 ADMIN/STOP LOSS FEES 330390 EXECUTIVE HEALTH RESOURCES INC PO BOX 822688 PHILADELPHIA PA 19182 EHR CONCURRENT SERVICES 207008 10 NET PATIENT CARE SERVI 621400 93790879 93790879 CONTRACTED SERVICES 621400 318783 318783 94109662 463356 463356 464539 760117 -295578 -295578 -295578 685299 1200 676047 46857 9252 -45657 -36405 -36405 cafeteria income 722210 434628 434628 434628 94675663 94109662 0 566001 2272567 2272567 173471 173471 27907947 25187222 2720725 2337959 2096999 240960 6100687 5471923 628764 2092550 1875967 216583 116143 116143 39692 39692 16039357 6471462 9567895 391612 7800 383812 14135309 12949437 1185872 10637 8336 2301 1781447 284771 1496676 16148 9524 6624 92931 58880 34051 1880360 1785402 94958 5845390 4968581 876809 BAD DEBT EXPENSE 8846758 8846758 QUALITY ASSURANCE ASSES 1706165 1706165 REPAIRS AND MAINTENANCE 967136 10913 956223 RECRUITING 119020 119020 DUES, LICENSES AND MEMB 90370 25927 64443 48841 46464 2377 93012497 74085098 18927399 0 1544615 4465308 11072726 7810716 8239476 9802695 1497577 1346214 577294 271589 84259305 53583860 34777785 30675445 20384364 21344795 4339829 7446600 82433666 83163362 9007605 9250008 7850 44577 39811242 39292204 3493148 2812500 14251389 16443113 66571234 67842402 X 15862432 15320960 15862432 15320960 82433666 83163362 X 0 1 1 X 0 X 0 0 0 0 0 0 0 0 1 3290 3290 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: A PORTION OF OUR DUES TO MICHIGAN HEALTH AND HOSPITAL ASSOCIATION SUPPORT LOBBYING ACTIVITIES. 625963 625963 28814903 14814098 14000805 81598 13600 67998 52622308 37736672 14885636 2114533 1019490 1095043 30675445 BOND FINANCING COSTS 269510 OTHER ASSETS 4440240 DEFERRED COMPENSATION ANNUITY CONTRACTS 252657 third-party payor settlements 2484193 7446600 ACCRUED PROFESSIONAL LIABILITY CLAIMS 1206048 ACCRUED PENSION COSTS 14977292 DEFERRED COMPENSATION ANNUITY CONTRACTS 259773 16443113 94675663 93012497 1663166 1320856 -3525494 -2204638 -541472 Part XI, Line 8 - Other Adjustments: MINIMUM PENSION LIABILITY ADJUSTMENT: -3525494. 1 1 X 1 X 1 X 1 1 1 0 1 1 847648 501843 345805 0.00410 14646744 12185184 2461560 0.02920 15494392 12687027 2807365 0.03330 23 1033 28720 28720 0.00030 1924535 1806750 117785 0.00140 28 0 40755 40755 0.00050 51 1033 1994010 1806750 187260 0.00220 51 1033 17488402 14493777 2994625 0.03550 1 2644368 661092 32828323 34729742 -1901419 X 0 LAPEER REGIONAL MEDICAL CENTER

1375 N MAIN STREET LAPEER MI 48446

X X X PSYCHIATRIC SERVICS, NURSING Part I, Line 3c: INCOME CRITERIA IS BASED ON A 200% FEDERAL POVERTY GUIDELINES PER THE FEDERAL REGISTER. COLLECTIONS MAY BE CONSIDERED IF THE PATIENT HAS SUFFICIENT LIQUID ASSETS. Part I, Line 6a: OUR PARENT, MCLAREN HEALTH CARE CORPORATION PREPARES AN ANNUAL REPORT OF ITS MEMBER HOSPITAL. THIS ANNUAL REPORT IS AVAILABLE ON OUR WEBSITE. Part I, Line 7: USED COST TO CHARGE RATIO PER OUR COST REPORTS Part I, Line 7f: WE USED OUR BAD DEBT EXDPENSE PER OUR FINANCIAL STATEMENTS AND CONVERTED TO ESTIMATED COST USING OUR OVERALL COST TO CHARGE RATIO. Part III, Line 4: An allowance for uncollectible accounts is established on an aggregate basis by using historical write-off rate factors applied to unpaid accounts based on aging. Loss rate factors are based on historical loss experience and adjusted for economic conditions and other trends affecting the Corporation's ability to collect outstanding amounts. Uncollectible amounts are written off against the allowance for doubtful accounts in the period they are determined to be uncollectible. An allowance for contractual adjustments and interim payment advances is based on expected payment rates from payors based on current reimbursement methodologies. This amount also includes amounts received as interim payments against unpaid claims from certain payors.WE USED OUR BAD DEBT EXDPENSE PER OUR FINANCIAL STATEMENTS AND CONVERTED TO ESTIMATED COST USING OUR OVERALL COST TO CHARGE RATIO. Part III, Line 9b: At this time we do not have a formal debt collection policy but will be attempting to develop a formal policy. Currently our process includes self and private pay patient activity are sent to a vendor for assistance. Self pay patients requesting financial assistance at registration are given a finanical assistance application which is evaluated to determine if charity care is applicable and an attempt is also made to assist patients for medical eligibility. Part VI, Line 2: Primary and secondary market research is conducted by and through community-based health coalitions, academic institutions, third party data analytics organizations, health needs assessments and surveys, historic health services utilization patterns, demographic analysis and population-based health care services utilization forecasts. Part VI, Line 3: Availability of financial assistance information and education is provided at all inpatient and outpatient registration points-of-service. Information and education is also available through the organization's website(s). Financial and application forms are available at all inpatient and outpatient points-of-service, including providing assistance in completing the application. Organization and its subsidiaries/affiliates also provide specially-trained counselors to assist patients and review eligibility for federal, state and other government programs, including, but not limited to, Medicaid, disability, Social Security, and any other forms of third party payment. Part VI, Line 4: The service area of Lapeer Regional Medical Center is composed of 28 ZIP codes and is centered principally on the city of Lapeer, MI in the county of Lapeer. The primary service area, accounting for 92% of annual inpatient discharges, is composed of 16 ZIP codes and can be characterized as largely urban in nature. The secondary service area, accounting for 8% of annual inpatient discharges, is composed of 12 ZIP codes and can be characterized as largely rural in nature. Primary Service Area Demographic DistributionsAge Distribution0 - 14 18.4%15 - 17 4.7%18 - 24 8.9%25 - 34 13.2%35 - 54 29.3%55 - 64 12.8%65+ 12.7%Education LevelLess than High School 3.7%Some High School 7.9%High School Degree 38.7%Some College/Assoc. Degree 34.3%Bachelors Degree or Greater 15.5%Household Income Distribution<$15K 8.9%$15 - 25K 10.1%$25 - 50K 27.9%$50 - 75K 23.1%$75 - 100K 14.2%Over $100K 15.9%Race/EthnicityWhite Non-Hispanic 92.8%Black Non-Hispanic 1.2%Hispanic 4.1%Asian & Pacific Is. Non-Hispanic 0.4%All Others 1.5% Part VI, Line 5: Community-building activities are designed and implemented based on community needs assessments and input from community-based organizations and other community stakeholders, including business vendors, religious organizations and political leaders. Each organization defines annual community-building and outreach activity plans. These plans are designed to address the specific health prevention, education, diagnosis, treatment and follow-up care requirements of unique disease, demographic and geographic communities identified by ongoing needs assessments described above. Part VI, Line 6: The parent organization and each of its subsidiary/affiliate members maintain a local community-based board with powers, responsibilities and accountabilities for the oversight of the operation of their respective organizations. Each subsidiary/affiliate organization maintains an open medical staff allowing any physician or other care provider with proper credentials to join the staff and provide approved care. The organization funds and maintains over 500 medical residency and fellowship programs to train future generations of physicians; organization funds, operates and maintains numerous health care education programs at the high school, community college, university and post-graduate levels of education. Organization provides sponsorship (financial and in-kind resources) support to community-level activities (health walks and races, fitness training, disease awareness events, cultural events and other health-related non-profit activities, events and organizations). Organization also directs, funds, supports and participates in fundraising activities that support health prevention/education, diagnosis and treatment provided by other non-profit community organizations. Part VI, Line 7: The role of the parent organization is to set the vision and strategic direction for the organization as a whole. This includes the development of the annual Strategic Plan which defines the strategic priorities for the organization and its members, the metrics to be measured for each strategic programs and the benchmark or target/goals for each metric. Strategic priorities directly address and measure (at a subsidiary level) clinical quality and clinical outcomes; patient, physician, employee and community satisfaction with the organization and its subsidiary/affiliate members; and development of new services to improve access to, quality of, and cost of health services.The role of the organization's subsidiaries/affiliates is the development and implementation of annual strategic and operational plans that support and advance the strategic plan of the parent organization. All local plans are developed and designed to reflect the unique population-based health care needs and requirements of the communities served by the subsidiary/affiliate organization.All local subsidiaries/affiliates have full authority and decision-making powers to define and execute the strategic and operational plans intended to improve the health and welfare of the communities they serve. MI 1 MCLAREN HEALTH CARE CORPORATION 401 S BALLENGER HWY FLINT MI 48532 382397643 501(C)3 166363 SUPPORT MCLAREN MEDICAL MANAGEMENT INC 401 S BALLENGER HWY FLINT MI 48532 382988086 501(C)3 2106204 SUPPORT 2 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: GRANTS ARE PROVIDED TO RELATED ORGANIZATIONS THAT SUPPORT THE MISSION OF LAPEER REGIONAL MEDICAL CENTER. 0 1 0 0 0 0 0 0 0 PHILIP INCARNATI 0 1247074 0 1119378 0 12251157 0 507159 0 13481 0 15138249 0 2998959 BARTON BUXTON 0 368000 0 142375 0 150662 0 30694 0 18035 0 709766 0 0 ROGER SKINDELL 0 170937 0 0 0 0 0 8998 0 10000 0 189935 0 0 Mary Beth Callahan 137331 0 24356 0 0 0 8126 0 4142 0 173955 0 0 0 Thomas Mee 134000 0 27413 0 0 0 415 0 11184 0 173012 0 0 0 JOSEPH FELTON 135353 0 0 0 0 0 25000 0 12921 0 173274 0 0 0 Amy B Dorr 124771 0 23647 0 0 0 25000 0 11184 0 184602 0 0 0 DENNIS KRZEMINSKI 0 519916 0 250000 0 431250 0 25000 0 16657 0 1242823 0 0 Part I, Line 1a THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 1 BOXES HAVE BEEN CHECKED. THE CORPORATE CEO, SUBSIDIARY CEO'S AND CORPORATE VICE-PRESIDENTS IN SOME INSTANCES HAVE RECEIVED TAX INDEMNIFICATION FOR THE FOLLOWING BENEFITS: VEHICLE COSTS, GROUP TERM LIFE INSURANCE, SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS, AND HEALTH CLUB OR SOCIAL DUES. THESE BENEFITS HAVE BEEN INCLUDED IN TAXABLE COMPENSATION. THE FOLLOWING INDIVIDUAL HAS RECEIVED THESE BENEFITS: BART BUXTON, PHIL INCARNATI, DENNIS KRZEMINSKI, DAVID MAZURKIEWICZ. Part I, Line 4b: McLaren maintains two supplemental nonqualified retirement plans for a select group of management or highly compensated employees (the "SERPs"). The Old SERP was closed to new participants on October 1, 2006, and the New SERP became effective as of January 1, 2007. No employee may participate in both of the SERPs. The Old SERP is structured as a defined benefit plan that essentially replaces the benefits the participant is not permitted to receive under McLaren's qualified retirement plan due to IRS limitations applicable to qualified plans. The benefit under the Old SERP is payable in either the form of a single sum distribution or in monthly payments equal to the actuarial equivalent of the participant's accrued benefit. The benefit is paid at age 55, and if the participant remains employed, the benefit is paid upon termination of employment, reduced to take into account the benefit previously paid. The New SERP is structured as a defined contribution plan, and McLaren contributes 15 percent of each participant's compensation to the plan each year for allocation to the participant's account. Participants in the New SERP become vested in their accounts upon the earlier of five years of participation in the plan or attainment of age 60. Participants in the New SERP self-direct the investment of their accounts and have the actual investment return credited or debited to their accounts. The benefit under the New SERP is equal to the participant's account balance, and the benefit is paid in a single sum within 60 days of the participant's termination date. Benefits under both SERPs are provided on a tax-neutral basis. Both SERPS are designed to comply with Internal Revenue Code sections 457(f) and 409A. The individuals listed in Part VII who participated in the Old SERP are: Philip Incarnati, Bart Buxton, and Dennis Krzeminski. The individual listed in Part VII who participated in the New SERP was David Mazurkiewicz. Part I, Line 6 MCLAREN HEALTH CARE CORPORATION (MHCC) HAS A LEADERSHIP INCENTIVE PROGRAM FOR LEADERS OF THE CORPORATION, SUBSIDIARY EXECUTIVES AND DIRECTORS, AND CORPORATE MANAGERS. THE PURPOSE OF THE PLAN IS TO ENHANCE THE ORGANIZATION'S ABILITY TO ACHIEVE ITS GOALS BY PROVIDING TOP OFFICIALS AND THE BOARD OF DIRECTORS WITH A TOOL FOR (A) CLEARLY COMMUNICATING PERFORMANCE ON THE PART OF KEY LEADERS, (B) STIMULATING AND REWARDING SUPERIOR LEVELS OF PERFORMANCE ON THE PART OF KEY LEADERS WHICH WILL ULTIMATELY BENEFIT THE COMMUNITIES MHCC SERVES, AND (C) PROTECTING MHCC'S ABILITY TO COMPETE WITH OTHER EMPLOYERS FOR HIGH-TALENT LEADERS. Supplemental Information Part III SCH J, PART I, LINE 3: THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 3 BOXES HAVE BEEN CHECKED. THE RELATED ORGANIZATION USED THE FOLLOWING METHODOLOGIES TO ESTABLISH THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR OF THE FILING ORGANIZATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, WRITTEN EMPLOYMENT CONTRACT, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE. PHNS PHILIP INCARNATI, BOARD MEMBER AND PART OWNER OF PHNS 1110622 MHCC is the co-founder and has a minority interest in PHNS. As part of the agreement MHCC is entitled to appoint two directors to the PNHS board. MHCC appointed James Fitzgerald and Philip Incarnati to hold those positions. 0 Medical STAFFING NETWORK PHILIP INCARNATI, BOARD MEMBER OF MEDICAL STAFFING NETWORK 1572548 Fees paid for services 0 RELIANT RENAL CARE PHILIP INCARNATI, BOARD MEMBER OF RELIANT RENAL 243750 MHCC has a minority interest in Reliant Renal Care. As part of the agreement MHCC is entitled to appoint one director to the board. MHCC appointed Philip Incarnati to hold this position. 0 Form 990, Part VI, Section A, line 6 THE SOLE MEMBER OF THIS ORGANIZATION IS MCLAREN HEALTH CARE CORPORATION. Form 990, Part VI, Section A, line 7a THE MEMBER SHALL HAVE THE EXCLUSIVE RIGHT TO ELECT OR APPOINT THE DIRECTORS OF THE CORPORATION. Form 990, Part VI, Section A, line 7b DECISIONS BY THE GOVERNING BODY ARE SUBJECT TO THE POWERS OF THE MEMBER. Form 990, Part VI, Section B, line 11 THE FORM 990 DATA IS PREPARED INTERNALLY AND SUBMITTED TO OUR AUDITING FIRM FOR RETURN PREPARATION. ONCE THE RETURNS HAVE BEEN COMPLETED, THE FORMS ARE REVIEWED BY THE CORPORATE DIRECTOR OF BUDGET, THE CORPORATE SENIOR VICE PRESIDENT AND CFO OF MCLAREN HEALTH CARE CORPORATION (MHCC). COPIES OF THE RETURNS ARE MADE AVAILABLE TO THE MHCC BOARD MEMBERS, WHO SERVE AS THE OVERALL GOVERNING BOARD. RETURNS ARE AVAILABLE FOR ALL CORPORATIONS OF WHICH MHCC IS THE SOLE MEMBER AS WELL AS OTHER RELATED ENTITIES OF THOSE CORPORATIONS FOR REVIEW RATHER THAN HAVING THE LOCAL BOARDS REVIEW THE RETURNS. THE BOARD OF MHCC IS THE ULTIMATE ACCOUNTABLE ORGANIZATION FOR THE SYSTEM; AS SUCH IT IS THE OVERALL GOVERNING BOARD OF OUR SYSTEM WHOSE RESPONSIBILITIES INCLUDES BUT ARE NOT LIMITED TO: APPROVING ALL SUBSIDIARY BOARD MEMBERS, FINANCIAL BUDGETS, AND ISSUANCE OF DEBT. Form 990, Part VI, Section B, line 12c 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 MHC GOVERNANCE COMMITTEE AND EACH SUBSIDIARY CEO AND BOARD CHAIR RECEIVES A REPORT SPECIFIC TO THEIR ORGANIZATION'S BOARD MEMBERS AND EXECUTIVES. CONFLICTS ARE DISCLOSED TO THE FULL BOARD AND BOARD COMMITTEES SO APPROPRIATE ACTIONS CAN BE TAKEN. ACTIONS MAY INCLUDE PROHIBITING A BOARD MEMBER FROM PARTICIPATING IN DELIBERATIONS INVOLVING TRANSACTIONS WITH A COMPANY WITH WHICH THEY CONDUCT FINANCIAL TRANSACTIONS; 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 THE COMPENSATION OF THE CEO IS DETERMINED BY THE COMPENSATION COMMITTEE OF MCLAREN HEALTH CARE CORPORATION BASED UPON THE PERFORMANCE OF THE CEO. THE COMPENSATION OF THE CEO IS WITHIN THE SALARY RANGES DETERMINED BY THE COMPENSATION COMMITTEE OF MCLAREN HEALTH CARE CORPORATION. THE PROCESS OF THE COMPENSATION COMMITTEE IS AS FOLLOWS: THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS TO REVIEW THE PERFORMANCE AND RECOMMEND THE TOTAL COMPENSATION PACKAGE OF MCLAREN HEALTH CARE CORPORATION'S CEO TO THE BOARD. FURTHER THE COMMITTEE ESTABLISHES THE SALARY RANGES AND PREREQUISITES OF THE CORPORATION'S OTHER MOST HIGHLY COMPENSATED OFFICERS (MHC VICE-PRESIDENTS AND MHC HOSPITAL/SUBSIDIARIES CEO'S) TO THE BOARD. THE MEMBERS OF THE COMMITTEE MUST MEET THE INDEPENDENCE REQUIREMENTS OF THE APPLICABLE PROVISIONS OF SECTION 4958 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED AND FINAL TREASURY REGULATIONS SECTION 53.4956-6(C)(1)(III). THE COMMITTEE RETAINS THE SERVICES OF AN INDEPENDENT FIRM WITH SIGNIFICANT QUALIFICATIONS AND EXPERIENCE TO CONDUCT A REVIEW OF THE CORPORATION'S EXECUTIVE COMPENSATION PROGRAM. THE RETAINED FIRM UTILIZES APPROPRIATE COMPENSATION COMPARABILITY DATA. THE RETAINED FIRM CONDUCTS ANALYSIS OF THE COMPETITIVENESS OF THESE PROGRAMS AND EXPRESSES AN OPINION AS TO THE REASONABLENESS OF THESE COMPENSATION PROGRAMS. ALL DATA UTILIZED BY THE COMMITTEE, DELIBERATIONS OF THE COMMITTEE, AND FINAL COMPENSATION DECISIONS BY THE COMMITTEE ARE DOCUMENTED IN FORMAL REPORTS AND MINUTES. THE CORPORATE COMPENSATION COMMITTEE WORKS UNDER AND PERIODICALLY RENEWS THE MCLAREN HEALTH CARE CORPORATION COMPENSATION COMMITTEE CHARTER AND MCLAREN HEALTH CARE CORPORATION COMPENSATION PHILOSOPHY. FOR SUBSIDIARY VICE PRESIDENTS AND DIRECTORS, THE CORPORATE HUMAN RESOURCES COMMITTEE COORDINATES THE GATHERING OF MARKET INFORMATION FROM A NUMBER OF INDEPENDENT SOURCES. THIS DATA IS ANALYZED ALONG WITH EXPECTED BUDGETARY GUIDELINES. THE CORPORATE VICE PRESIDENT OF HUMAN RESOURCES DETERMINES THE AMOUNT, IF ANY, THAT PAY RANGES INCREASE. THE MOST RECENT YEAR THIS PROCESS WAS UNDERTAKEN WAS 2010. Form 990, Part VI, Section C, line 19 DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART VII, SECTION A: THESE INDIVIDUALS DEVOTE THE FOLLOWING HOURS PER WEEK TO A RELATED ORGANIZATION FOR WHICH COMPENSATION IS REPORTED IN COLUMNS E & F: BART BUXTON 0 HOUR MCLAREN HEALTH CARE CORPORATION KATHRYN LAWTER 1 HOUR MCLAREN HEALTH CARE CORPORATION MIKE ROBINET 1 HOUR MCLAREN HEALTH CARE CORPORATION PHILIP INCARNATI 40 HOURS MCLAREN HEALTH CARE CORPORATION DAVID MAZURKIEWICZ 40 HOURS MCLAREN HEALTH CARE CORPORATION ROGER SKINDELL 40 HOURS MCLAREN HEALTH CARE CORPORATION FORM 990, PART XI, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. BAY MEDICAL FOUNDATION 1900 COLUMBUS AVE BAY CITY MI 48708 382156534 FOUNDATION MI 501(c)(3) Line 11a, I BAY REGIONAL MEDICAL CENTER BAY REGIONAL MEDICAL CENTER 1900 COLUMBUS AVE BAY CITY MI 48708 381976271 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION BAY REGIONAL MEDICAL CENTER AUXILIARY 1908 COLUMBUS AVENUE BAY CITY MI 48708 386081235 SUPPORTING ORGANIZATION MI 501(c)(3) Line 11a, I BAY REGIONAL MEDICAL CENTER BAY SPECIAL CARE HOSPITAL 1900 COLUMBUS AVE BAY CITY MI 48708 383161753 HOSPITAL MI 501(c)(3) Line 3 BAY REGIONAL MEDICAL CENTER CENTRAL MICHIGAN COMMUNITY HOSPITAL 1221 SOUTH DRIVE MT PLEASANT MI 48858 381420304 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION CENTRAL MICHIGAN COMMUNITY HOSPITAL RADIATION ONCOLOGY 1000 HARRINGTON MT PLEASANT MI 48858 300312172 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION GREAT LAKES CANCER INSTITUTE 401 S BALLENGER HWY FLINT MI 48532 383584572 CANCER CARE CENTER MI 501(c)(3) Line 7 MCLAREN HEALTH CARE CORPORATION INGHAM REGIONAL HEALTHCARE FOUNDATION 401 S GREENLAWN AVE LANSING MI 48910 382463637 FOUNDATION MI 501(c)(3) Line 7 INGHAM REGIONAL MEDICAL CENTER INGHAM REGIONAL MEDICAL CENTER 401 S GREENLAWN AVE LANSING MI 48910 381434090 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION LAPEER REGIONAL MEDICAL CENTER 1375 N MAIN ST LAPEER MI 48446 382689033 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION LAPEER REGIONAL MEDICAL CENTER FOUNDATION 1375 N MAIN ST LAPEER MI 48446 382689603 FOUNDATION MI 501(c)(3) Line 11a, I LAPEER REGIONAL MEDICAL CENTER MCLAREN HEALTH CARE CORPORATION 401 S BALLENGER HWY FLINT MI 48532 382397643 SUPPORTING ORG MI 501(c)(3) Line 11a, I N/A MCLAREN HEALTH PLAN G-3245 BEECHER ROAD FLINT MI 48532 383383640 HEALTH CARE SERVICES MI 501(c)(4) MCLAREN HEALTH CARE CORPORATION MCLAREN HEALTH CARE VILLAGE FOUNDATION 401 S BALLENGER HIGHWAY flINT MI 48532 262693350 FOUNDATION MI 501(c)(3) Line 11a, I MCLAREN HEALTH CARE CORPORATION MCLAREN MEDICAL MANAGEMENT INC 401 S BALLENGER HWY FLINT MI 48532 382988086 MANAGEMENT COMPANY MI 501(c)(3) Line 11a, I MCLAREN HEALTH CARE CORPORATION MCLAREN REGIONAL MEDICAL CENTER 401 S BALLENGER HWY FLINT MI 48532 382383119 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION MOUNT CLEMENS REGIONAL HEALTHCARE FOUNDATION PO BOX 326 MOUNT CLEMENS MI 48046 382578873 FOUNDATION MI 501(c)(3) Line 9 MOUNT CLEMENS REGIONAL MEDICAL CENTER MOUNT CLEMENS REGIONAL MEDICAL CENTER 1000 HARRINGTON MOUNT CLEMENS MI 48043 381218516 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION POH REGIONAL MEDICAL CENTER 50 NORTH PERRY STREET PONTIAC MI 48342 381428164 HOSPITAL MI 501(c)(3) Line 3 MCLAREN HEALTH CARE CORPORATION POH RILEY FOUNDATION 50 NORTH PERRY STREET PONTIAC MI 48342 200442217 FOUNDATION MI 501(c)(3) Line 11c, III-FI POH REGIONAL MEDICAL CENTER VISITING NURSE SERVICE OF MICHIGAN 401 S BALLENGER HWY FLINT MI 48532 383491714 HEALTH CARE SERVICES MI 501(c)(3) Line 9 MCLAREN HEALTH CARE CORPORATION WOMENS HOSPITAL ASSOCIATION OF FLINT MICHIGAN 401 S BALLENGER HIGHWAY FLINT MI 48532 381358053 SUPPORTING ORGANIZATION MI 501(c)(3) Line 11a, I MCLAREN HEALTH CARE CORPORATION REGIONAL EMERGENCY MEDICAL SERVICE INC 25400 W 8 MILE ROAD SOUTHFIELD MI 48034 383255499 AMBULANCE SERVICE MI 501(c)(3) Line 9 MCLAREN MEDICAL MANAGEMENT INC NORTH OAKLAND NORTH MACOMB IMAGING INC 355 BARCLAY CIR STE A ROCHESTER HILLS MI 48307 382807040 MRI IMAGING MI 501(c)(3) Line 3 PRIMARY CARE 1900 COLUMBUS AVE BAY CITY MI 48708 202443604 HEALTH CARE SERVICES MI 501(c)(3) Line 9 BAY REGIONAL MEDICAL CENTER MCLAREN - NORTHERN EQUITIES CANCER CENTER PROJECT LLC 39000 COUNTRY CLUB DRIVE FARMINGTON HILLS MI 48331 263112935 RENTAL REAL ESTATE MI N/A JOINT VENTURE HOSPITAL LABORATORIES LLC 1633 FAIRLANE CIRCLE SUITE 300 ALLEN PARK MI 48101 383018129 LAB PROCEDURES MI N/A MOUNT CLEMENS REGIONAL HEALTH BUILDING HEALTH PARTNERS 1000 HARRINGTON ST MOUNT CLEMENS MI 48043 262524717 BUILDING MANAGEMENT MI N/A HEALTH ADVANTAGE INC G3245 BEECHER ROAD FLINT MI 48532 912141720 HEALTH CARE SERVICES MI N/A C CLARKSTON PROPERTY ASSOCIATES 50 NORTH PERRY STREET PONTIAC MI 48342 432006072 REAL ESTATE MI N/A C HOSPITAL HEALTH CARE INC 50 NORTH PERRY STREET PONTIAC MI 48342 382643070 HEALTH CARE MI N/A C PHYSICIAN ORGANIZED HEALTHCARE SYSTEM 50 NORTH PERRY STREET PONTIAC MI 48342 383136458 MANAGED CARE MI N/A C MCLAREN HEALTH PLAN INSURANCE COMPANY G-3245 BEECHER ROAD SUITE 200 FLINT MI 48532 271780283 INSURANCE MI N/A C 0 1 0 0 0 0 0 0 1 0 1 1 0 0 1 1 0 0 MCLAREN HEALTH CARE CORPORATION L 8800353 MCLAREN HEALTH CARE CORPORATION O 15130060 MCLAREN HEALTH PLAN K 3677556 MCLAREN REGIONAL MEDICAL CENTER O 3780840 MCLAREN REGIONAL MEDICAL CENTER L 351443 MCLAREN MEDICAL MANAGEMENT INC B 2106204 MCLAREN MEDICAL MANAGEMENT INC P 2192280 MCLAREN HEALTH CARE CORPORATION B 166363 HEALTH ADVANTAGE INC L 4621382 INGHAM REGIONAL MEDICAL CENTER O 55346 MCLAREN REGIONAL MEDICAL CENTER I 163425