2021-11-15T11:54:10-06:00 2020-12-31 861065772 Deloitte Tax LLP 200 Renaissance Center Suite 3900 Detroit MI 48243 990 2020-01-01 465718220 Beaumont Health BEAU 2482133334 26901 Beaumont Blvd Southfield MI 48033 JOHN PEETZ VP Treasury 2482133334 2021-11-14 1 JOHN PEETZ 999009999 Kristyn Forster P01704059 3133963000 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z John T Fox 26901 Beaumont Blvd Southfield MI 48033 43728436 0 X www.beaumont.org X 2014 MI To provide oversight and long term strategic management of Beaumont Health's supported organizations, in order to enhance their ability to continue 1) to provide high quality, efficient and accessible healthcare services in a caring environment, and 2) to be an essential contributor to the health and well-being of individuals and families, regardless of their financial circumstances in the communities served. 16 13 0 13 0 0 0 0 49412574 43728436 0 0 0 0 49412574 43728436 0 0 0 0 33379121 96486 0 0 0 16033453 43631950 49412574 43728436 0 0 871771917 844473041 871771917 844473041 0 0 X To provide high quality, efficient and accessible healthcare services in a caring environment and to be an essential contributor to the health and well-being of individuals and families, regardless of their financial circumstances, in the communities served by Beaumont Health's supported organizations. 0 0 13089584 43728436 Beaumont Health, a Michigan non-profit corporation, is the parent corporation overseeing the tax-exempt healthcare systems of Botsford General Hospital, Oakwood Healthcare, Inc., and William Beaumont Hospital (the "Supported Organizations"). Through its oversight, Beaumont Health and its Supported Organizations provide high quality, efficient and accessible health services in a caring environment, furnish charity care and community service, and are essential contributors to the health and well-being of individuals and families in the communities served by the Supported Organizations. Beaumont Health manages and directs the Supported Organizations' delivery of health care through providing long-range and strategic planning, financial control, and programs and policies. 13089584 1 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 1317 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 16 13 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 0 0 0 MI X Donna Zuk 9475221514 26901 Beaumont Blvd Southfield MI 48033 John Fox President & CEO 50.00 10.00 X X 0 4929542 1492503 David Wood MD EVP & Chief Medical Officer 50.00 14.00 X 0 1246058 403515 Harris Mainster DO Director 2.00 8.00 X 96486 0 0 John Nemes Secretary / Treasurer 2.00 8.00 X X 0 0 0 Christopher Blake Director 2.00 8.00 X 0 0 0 Geoffrey Hockman Director 2.00 10.00 X 0 0 0 Gerson Cooper Director 2.00 8.00 X 0 0 0 John Lewis Chairman 2.00 8.00 X 0 0 0 Julie Fream Vice Chairperson 2.00 8.00 X 0 0 0 Martha Quay Director 2.00 8.00 X 0 0 0 Robert Williams MD Director 2.00 8.00 X 0 0 0 Ronald Hall Jr Director 2.00 8.00 X 0 0 0 Stephen Howard Vice-Chairman 2.00 8.00 X 0 0 0 Thomas Saeli Director 2.00 8.00 X 0 0 0 Timothy O'Brien Director 2.00 8.00 X 0 0 0 William Goldsmith Director 2.00 8.00 X 0 0 0 John Kerndl EVP & Chief Financial Officer 50.00 16.00 X 0 1053230 399047 96486 7228830 2295065 0 0 1 0 Cardinal Health 7000 Cardinal Place Dublin OH 43017 Pharmaceuticals Services 277227962 American Express Travel Related Serv Co PO Box 0001 Los Angeles CA 900968000 Travel Related Services 106118283 Medline Industries Inc 1 Medline Pl Mundelein IL 600604485 Medical Supply Services 44299719 Bank of America PO Box 9888 Chicago IL 60693 Banking Services 36330197 Medtronic USA Inc 4642 Collection Ctr Dr Chicago IL 60693 Medical Technology Services 29843933 1094 Prog Admin Support Svc 561000 43728436 43728436 43728436 43728436 43728436 0 0 X 96486 96486 150278 45083 105195 705601 211680 493921 2892227 867668 2024559 108477 32543 75934 131017 39305 91712 8032269 2409680 5622589 106766 32030 74736 Allocated Salaries Expe 22936133 6880840 16055293 Settlements & Other Cos 7198185 2159456 5038729 Due and Memberships 783909 235173 548736 Maintenance and Repairs 553417 166025 387392 33671 10101 23570 43728436 13089584 30638852 0 871771917 844473041 871771917 844473041 770673250 744951740 101098667 99521301 871771917 844473041 X 0 0 0 0 871771917 844473041 0 0 X 0 1 X 1 0 X X X 3 William Beaumont Hospital 381459362 3 1 0 0 Oakwood Healthcare Inc 381405141 3 1 0 0 Botsford General Hospital 381426919 3 1 0 0 3 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 Schedule A, Part I, Line 12 G, Column (VI): Beaumont Health is the parent organization of a multi-entity, multi-hospital health system that was formed as the result of the aggregation of three previously independent health systems. Beaumont Health provides support to its Supported Organizations through governance, leadership, strategy, and certain functions such as accounts payable (and issuing of payments, 1099's to vendors of the entire system), and Treasury oversight including the obtaining of tax-exempt bonds as well as taxable debt for the System. It does so by pulling in resources from the various system members to provide these services for its Supported Organizations. Such costs are allocated from various entities that have continued to incur the underlying costs to Beaumont Health who then charges them back - hence revenues equal expenses. The character of what has been allocated to Beaumont Health has been retained in the presentation of the income statement. In addition, monies and assets flow through Beaumont Health to bring assets up and move them to where they are needed in the System. These are reflected on the balance sheet. Schedule A, Part IV, Section D, Line 3: Beaumont Health is the parent and supporting organization of an integrated health care system consisting of Botsford General Hospital, Oakwood Healthcare, Inc. and William Beaumont Hospital (the Supported Organizations). Beaumont Health manages and directs the Supported Organizations' delivery of health care including providing long-term and strategic planning, financial control, and programs and policies that allow the Supported Organizations to function as an integrated health care delivery system. Beaumont Health's governing body is composed of at least one or more members of the governing bodies of each of the Supported Organizations. In addition, there is an overlap of officers between organizations to help ensure that there is a close and continuous working relationship with each Supported Organization. The Supported Organizations have a significant voice in Beaumont Health's operations, including the use of its income and assets. For example, budgets are submitted by the Supported Organizations to Beaumont Health for approval. This submission allows the Supported Organizations to articulate their needs (budgeting, capital acquisitions, operating cash flow needs, etc.) for consideration of funding. In addition, the Supported Organizations have input into all the investment policies of Beaumont Health through each Supported Organization's presence on the governing board of Beaumont Health. Schedule A, Part IV, Section E, Line 3a: Beaumont Health is solely responsible for the direct appointment or election of the officers, directors and trustees of each of the Supported Organizations. Schedule A, Part IV, Section E, Line 3b: Beaumont Health is organized to operate exclusively for the benefit of, to perform the functions of, and to carry out the purposes of Botsford General Hospital, Oakwood Healthcare, Inc. and William Beaumont Hospital (the "Supported Organizations"). Beaumont Health functions as an integrated operating company that manages and directs the Supported Organizations' delivery of health care, including providing long-range and strategic planning, financial control, and programs and policies that cause the Supported Organizations to function as an integrated health care delivery system. Beaumont Health is responsible for the overall coordination and supervision of the health system's Supported Organizations and is responsible for approval of the Supported Organizations' budgets, strategic planning, marketing, resource allocation and community benefit activities. Beaumont Health also is responsible for the management and investment of the endowments of the Supported Organizations. 83224246 168565 10685510 266768 93811553 71321433 3014239 9181490 292916 83224246 73045050 12412611 -3360036 10776192 71321433 0 77224212 1830631 6009793 73045050 0.39730 0.44790 0.15480 0 1 1 0 Debt Receivable from Affiliates 844473041 844473041 Part V, Line 4: Beaumont Health is the sole member of Beaumont Health Foundation. The intended use of Beaumont Health Foundation's endowment funds is to provide funds to support the mission and vision of Beaumont Health System. Beaumont Health Foundation provides funding for ongoing capital and operational needs, community outreach programs, and scholarships and education. 0 1 0 0 0 0 0 0 0 John Fox President & CEO 0 1564725 0 2540140 0 824677 0 1460721 0 31782 0 6422045 0 593090 David Wood MD EVP & Chief Medical Officer 0 718092 0 361316 0 166650 0 373163 0 30352 0 1649573 0 205473 John Kerndl EVP & Chief Financial Officer 0 705283 0 340465 0 7482 0 356706 0 42341 0 1452277 0 193616 Part I, Line 3 Botsford General Hospital, Oakwood Healthcare, Inc., and William Beaumont Hospital, related tax-exempt organizations of Beaumont Health, use the following to establish the compensation of the organization's top management officials: - Compensation Committee - Independent compensation consultant - Compensation survey or study - Approval by the Board or Compensation Committee Part I, Line 4b Although Beaumont Health is the statutory employer of most of the System employees, Beaumont Health is not the common law employer of most, if not all, of the employees. The employees are reported on the Form 990 of their common law employer. Its supported organizations provide certain supplemental retirement benefits to certain officers, key employees and physicians. These benefits are provided through a non-qualified deferred compensation plan, under which the benefits being earned are subject to a substantial risk of forfeiture. To become entitled to the benefits being provided, each covered employee must meet specified requirements relating to further employment. Until those requirements are satisfied, the employee is not entitled to these amounts. If the employee were to have terminated employment voluntarily in the year to which this return applies, those supplemental retirement benefits would not have been paid out. It should be noted that these supplemental retirement benefits are part of a retirement program that provides retirement income for all years of service that the employee provides to the organization. Any retirement benefits should be viewed as applying to the entire length of the employee's service to the organization. The following individual(s) listed on Part VII received supplemental non-qualified plan payments during the calendar year: John Fox, non-qualified plan distribution, SERP 457(f): $772,738 David Wood, MD, non-qualified plan distribution, SERP 457(f): $133,700 Part I, Line 5a: Beaumont Health has short-term and long-term incentive plans for executives. Incentive awards are calculated based on the achievement of multiple targets, including the attainment of operating revenue targets. Part I, line 5b: Beaumont Health's operating revenue targets, used for purposes of determining short-term and long-term incentive awards for executives, include the revenues of Beaumont Health and its affiliate organizations. Part II: Executive compensation at Beaumont Health Background Beaumont Health's executive compensation philosophy and program aligns with our strategic objectives, which contribute to the health and well-being of the residents throughout the communities we serve. As Beaumont looks to retain strong talent in both executive and non-executive positions across the organization, similar philosophies are utilized, which align with our organizational values of compassion, respect, integrity, teamwork, and excellence. To successfully lead such a large, complex organization like Beaumont Health, highly talented executive leadership is essential. Successful recruiting, retention and motivation of leaders requires nationally competitive compensation and benefits. Beaumont also considers recruiting executive leaders who could choose positions in industry sectors other than health care. Based on a rigorous objective methodology, including review of an independent consultant's Written Reasonableness Assessment Opinion and their national market data from other health systems, assessment of job responsibilities, evaluation of qualifications, and review and approval by a board committee comprised of independent and disinterested directors, Beaumont Health is confident that our executives' 2020 compensation is both competitive and reasonable. Philosophy Our executive compensation programs are based on the following key attributes: - Beaumont provides market competitive compensation and benefits that are commonly provided by health systems of our size and complexity. Beaumont executive compensation is also aligned with the performance of the organization. - Performance metrics are tied to key strategic objectives - most of an executive's compensation at Beaumont is dependent on how the organization performs on key goals and metrics including patient safety, quality of care, and patient experience and satisfaction. - In 2020, the Organization & Compensation Committee also took into account the leadership team's monumental efforts to ensure care and safety for our patients and employees during the pandemic which began in March 2020. The executive team voluntarily took a temporary reduction in salary during COVID as one cost-saving measure the system implemented to assist with financial instability during uncertain times. As such, a substantial portion of an executive's incentive pay is 'at-risk' (not guaranteed) based on organizational performance. Some of the 'at risk' pay is awarded over a multi-year period and there are no guarantees the entire amount will be paid. The executive's actual take home pay in any given year might be less than the total compensation as reported on the 990 if the organization's objectives over multiple years are not achieved. Further, Column E of Schedule J of the 990 can be easily misinterpreted and is often overstated due to counting compensation accrued in a given year, but not yet vested. To avoid inadvertently "double counting" compensation, the best reflection of a single year's compensation is Schedule J Column B totaling Columns (i) through (iii) for 2020, which contains the most accurate source of information related to an executive's paid compensation in any given year. Year to year, an executive's total compensation will vary based on organizational performance as well as the scheduled timing of payments of amounts earned but not yet vested in earlier years. Governance of Executive Compensation Beaumont is committed to maintaining high standards of corporate governance. Our corporate governance process is compliant, transparent and ensures compensation is administered in a fair and equitable manner consistent with IRS guidelines. Executive compensation is governed by the Organization and Compensation Committee (OCC) of the Board of Directors of Beaumont Health, the parent organization of a multi-entity health system. The committee is comprised of independent board members who have no conflicts of interest as it relates to the organization's executive compensation. The committee is responsible for: - Reviewing, validating and approving performance goals and metrics related to the executive's at-risk compensation plans. - Reviewing, validating and approving performance achieved on the executive at-risk compensation plans. - Reviewing and approving compensation for each member of the organization's senior leadership team. - Ensuring compensation is reasonable and appropriate based on performance achieved and the organization's mission. The independent committee also receives support from outside advisors with expertise in health care organizations and executive compensation. A Michigan Finance Authority 800596186 59447P6N6 469258819 See Part VI. 0 0 0 B Michigan Finance Authority 800596186 59447THE3 323514381 See part VI. 0 0 0 C Michigan Finance Authority 800596186 000000000 65000000 See part VI. 0 0 0 A 33770000 469258819 4104287 465154532 2015 0 0 1 1 B 325929759 2521713 323408046 2019 0 0 1 1 C 17333333 65000000 36646 64963354 1 0 1 1 A 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 B 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 C 0 0 1 1 0 0.00000 0.00000 0.00000 0 0 0 A 0 0 0 1 0 0 0 0 0 B 0 0 0 1 0 0 0 0 0 C 0 1 0 0 1 0 0 0 0 A 0 B 0 C 0 Date Rebate Computation Performed Issuer Name: Michigan Finance Authority Date the Rebate Computation was Performed: 01/26/2021 Part I: Line I: Column F: Bond A - Beaumont Health Series 2015A: To acquire assets of William Beaumont Hospital, Botsford General Hospital, and Oakwood Healthcare, Inc. Bond B - Beaumont Health Series 2016A: The proceeds of the bond were used for the financing or refinancing of the costs of acquiring, constructing, and renovating certain hospital and health facilities including, among other projects: emergency center expansion at Beaumont, Royal Oak, the master facility expansion and renovation plan at Beaumont, Farmington Hills, and the renovation of the 1st floor operating room at Beaumont, Troy. Bond C - Beaumont Health Series 2016B: To refund bonds issued 12/19/2012. Form 990, Part IV, Line 10: The Taxpayer is a member of a health system, the parent of which is Beaumont Health. During the year, Beaumont Health Foundation received funds from other entities in the System, of which a portion is attributable to restricted contributions. Please see the Form 990, Schedule D of Beaumont Health Foundation for information regarding this endowment fund. Form 990, Part VI, Section A, line 2 The following individuals have a business relationship because they are board members or shared officers of a taxable entity within the Beaumont Health System: John Fox John Kerndl Gerson Cooper John Nemes David Wood, MD Form 990, Part VI, Section B, line 11b Form 990 was subjected to a multi-step review process prior to filing with the government by the statutory due date. Form 990 is prepared by Beaumont Health Treasury Administration, reviewed by that department's management, and subsequently reviewed by the filing entity's paid preparer. As the final step in this review process, a copy of the final filing version of Form 990 is provided to each voting member of the filing entity's governing body for their review prior to the form being filed. Form 990, Part VI, Section B, line 12c Beaumont Health recognizes that it has an obligation to its patients, its payors, its designees, and the communities it serves to observe the highest level of integrity to ensure clinical, business and academic decision making is not compromised by financial or other relationships with industry. The Corporate Compliance Office, with the assistance of human resources and specific individual departments, will coordinate upon hire and each calendar year thereafter, a process of obtaining conflict of interest/disclosure of remuneration statements. All areas of the institution will follow the human resources hiring process protocol to assure compliance with the conflict of interest program. At any time when a designee becomes involved in a relationship that is or may be perceived to be a conflict of interest, the designee must complete the conflict of interest/disclosure of remuneration statement and forward to the Corporate Compliance Officer. A conflict of interest or need to disclose remuneration may exist if a Beaumont designee or any member of their immediate family received compensation in any form for services rendered in any capacity to any organization or individual that has any past, present, or prospective business dealings with Beaumont, if such compensation might be reasonably construed as tending to prevent the designee from acting solely and wholly in the best interest of Beaumont Health. Form 990, Part VI, Section B, line 15 Beaumont Health's Board of Director's has duly appointed an Organization and Compensation Committee (the Committee), which is responsible for the review and approval of compensation and benefits provided to Beaumont and its affiliated members' executive management teams. The Committee has adopted a written executive compensation philosophy statement governing the work and review process of the Committee. The Committee follows the procedures described in the philosophy statement when it reviews and approves the compensation and employee benefits provided to senior management, including the Chief Executive Officer and other officers. The Committee reviews all aspects of compensation, including current and deferred compensation, and benefits, including qualified and non-qualified benefits. The Committee meets four times a year and approves compensation and benefits only to the extent that the Committee has concluded that the compensation and benefits constitute no more than reasonable compensation for each executive. The Committee consists of six members, all of whom are disinterested members of the Board of Directors. The Committee works with an independent compensation consultant to prepare and review in advance comprehensive data showing the compensation provided by similarly situated organizations for functionally similar positions. The Committee also prepares a timely and thorough written record of its deliberations and conclusions. As a result, the Committee's review process is designed to satisfy the procedural criteria necessary to qualify for the rebuttable presumption of reasonableness under the federal income tax law intermediate sanctions rules. The Committee has expressly determined that the total compensation provided is reasonable, based on the review of the market data presented by the independent compensation consultant and on the review of all other relevant facts and circumstances. Form 990, Part VI, Section C, line 19 The Organization will provide any documents that are required to be open for public inspection to the public upon request. Form 990, Part IX, Line 20: Beaumont Health is a health system parent organization. The bonds issued for the System as a whole reside on the books of Beaumont Health and the Schedule K is reported here. However, the debt has been allocated to the members of the obligated group that have used the bond proceeds. The related principal and interest expense are paid by the obligated members and are reported as interest expense on their respective books. Beaumont Medical Transportation Service 950 W Maple Suite C Troy MI 48084 260203703 Medical Transportation Services MI 501(c)(3) 10 Beaumont Health 1 Botsford Continuing Care Corporation 26901 Beaumont Blvd Southfield MI 48033 382549505 Long Term Nursing Care MI 501(c)(3) 10 Botsford General Hospital 1 Botsford General Hospital 26901 Beaumont Blvd Southfield MI 48033 381426919 Hospital MI 501(c)(3) 3 Beaumont Health 1 Community Emergency Medical Service Inc 25400 W Eight Mile Road Southfield MI 48033 382410823 Emergency Medical Services MI 501(c)(3) 10 Botsford General Hospital 1 Michigan Mobile PET Imaging 26901 Beaumont Blvd Southfield MI 48033 331086165 Mobile PET Scanning MI 501(c)(3) 12A, I Oakwood Healthcare Inc 1 Oakwood Healthcare Inc 26901 Beaumont Blvd Southfield MI 48033 381405141 Hospital MI 501(c)(3) 3 Beaumont Health 1 Oakwood United Hospitals Inc 26901 Beaumont Blvd Southfield MI 48033 382837961 Facility Leasing MI 501(c)(3) 12A, I Oakwood Healthcare Inc 1 Oakwood Home Care Services 26901 Beaumont Blvd Southfield MI 48033 382877338 Home Health Services MI 501(c)(3) 10 Oakwood Healthcare Inc 1 Oakwood Health Promotions Inc 26901 Beaumont Blvd Southfield MI 48033 382601965 Assisted and Resident Care Facilities MI 501(c)(3) 10 Oakwood Healthcare Inc 1 William Beaumont Hospital 26901 Beaumont Blvd Southfield MI 48033 381459362 Hospital MI 501(c)(3) 3 Beaumont Health 1 Beaumont Health Foundation 26901 Beaumont Blvd Southfield MI 48033 364852171 Foundation MI 501(c)(3) 7 Beaumont Health 1 Beaumont Medical Group-Hospital Based Services 26901 Beaumont Blvd Southfield MI 48033 822768899 Physician Support Services MI 501(c)(3) 10 Beaumont Health 1 Beaumont Medical Group-Primary Care Services 26901 Beaumont Blvd Southfield MI 48033 822796539 Physician Support Services MI 501(c)(3) 10 Beaumont Health 1 Beaumont Medical Group-Specialty Services 26901 Beaumont Blvd Southfield MI 48033 822784244 Physician Support Services MI 501(c)(3) 10 Beaumont Health 1 Dearborn Schaeffer Office Company LLC One Town Square Suite 1600 Southfield MI 48076 262448025 Real Estate MI N/A 0 0 Oakmed LLC 1938 Woodslee Drive Troy MI 48083 461459737 Private Duty Nursing MI N/A 0 0 Beaumont Kidney Specialty Services LLC 26400 West Twelve Mile Road Southfield MI 48034 262200439 Dialysis Services MI N/A 0 0 Beaumont Indemnity Company Ltd 23 Lime Tree Bay Avenue Grand Cayman Grand Cayman CJ 980512415 Premium Deposits CJ N/A C 1 Beaumont Nursing Home Services Inc 26901 Beaumont Blvd Southfield MI 48033 382799842 Assisted Care Living MI N/A C 1 Beaumont Physicians Insurance Company Inc 26901 Beaumont Blvd Southfield MI 48033 274261262 Professional Insurance MI N/A C 1 Botsford Commons Property Assocation 26901 Beaumont Blvd Southfield MI 48033 383203663 Property Management MI N/A C 1 Oakwood Affiliated Ventures Inc and Subsidiaries 26901 Beaumont Blvd Southfield MI 48033 371753159 Office of Physicians/Non-Residental MI N/A C 1 Parastar Emergency Systems Inc 26901 Beaumont Blvd Southfield MI 48033 382755982 Management Dispatch Services MI N/A C 1 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Botsford General Hospital R 138266017 FMV Botsford General Hospital D 35421837 FMV Beaumont Health Foundation S 18679586 FMV Beaumont Medical Group-Hospital Based Services S 56148728 FMV Beaumont Medical Group-Primary Care Services R 3608931 FMV Beaumont Medical Group-Specialty Services S 79187802 FMV Oakwood Healthcare Inc S 1240787144 FMV Oakwood Healthcare Inc D 59646399 FMV Oakwood Health Promotions Inc D 19688511 FMV William Beaumont Hospital R 1133577489 FMV William Beaumont Hospital D 716428135 FMV Botsford Continuing Care Corporation D 8223320 FMV Schedule R, Part V, Line 2: Beaumont Health is the parent organization of a multi-entity, multi-hospital health system that was formed as the result of the merger of three previously independent health systems. Beaumont Health provides support to its subsidiary organizations through governance, leadership, strategy, and certain corporate functions such as accounts payable (issuing payments and 1099's to suppliers on behalf of the entire system), payroll (issuing payments to employees of the System which are generally common law employees of subsidiaries), and Treasury oversight including the obtaining of tax-exempt bonds as well as taxable debt for the System. It does so by using pooled resources from the various corporate functions to provide these services for its supported organizations. Corporate shared services costs (includes revenue cycle, information technology, supply chain, coding and transcription, human resources, benefits, pension, accounting, payroll, accounts payable, treasury, legal, compliance, marketing, etc.) of Beaumont Health are allocated to each of the business entities they support and their subsidiaries. Beaumont Health's liquid assets are used for payments to suppliers for accounts payable liabilities and payments to employees for payroll liabilities funded by its subsidiary organizations. Inter-company receivable/payable accounts are used to offset the transfer of revenue, expenses, assets and liabilities from and to Beaumont Health and its subsidiary organizations. These due to and from affiliates receivables and payables are zeroed out to equity in Beaumont Health equity transfers between affiliates in net assets for both Beaumont Health and the subsidiary organizations.