2020-11-16T15:40:09-06:00 2019-12-31 861065772 Deloitte Tax LLP 200 Renaissance Center Suite 3900 Detroit MI 48243 990 2019-01-01 382601965 Oakwood Health Promotions Inc OAKW 2484266950 26901 Beaumont Blvd Southfield MI 48033 JOHN PEETZ VP of Treasury 2484266950 2020-11-12 1 Alicia Janisch P00741382 3133963000 2019 2022-09-23 18:48:47Z Margaret Lightner 26901 Beaumont Blvd Southfield MI 48033 34340563 0 X www.beaumont.org X 1985 MI Provision of independent living, assisted living, Alzheimer's care, and skilled nursing care. 3 0 0 40 0 0 0 0 32018305 29742806 74134 4593078 5117 2610 32097556 34338494 0 0 0 0 16619655 15168470 0 0 0 16525396 17993625 33145051 33162095 -1047495 1176399 101631052 109107637 43673454 45232546 57957598 63875091 Oakwood Health Promotions, Inc.'s primary exempt purpose is the provision of four different levels of elder care: independent living, assisted living, Alzheimer's care, and skilled nursing care. 0 0 29841478 29745416 Oakwood Health Promotions, Inc. provides senior living apartments for over 240 residents which includes meals, activities, security services, and transportation and fitness. Oakwood Health Promotions, Inc. also provides nursing home care, with the majority of the nursing home residents being Medicare or Medicaid patients. 29841478 1 0 0 0 0 0 0 0 1 0 1 1 0 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 29 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 X 3 0 1 1 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MI X Maria Miller 3132539606 26901 Beaumont Blvd Southfield MI 48033 Susan Grant Chairperson (Start 10/24/19) 2.00 54.00 X X 0 879873 267905 Paul LaCasse Chairperson (End 10/24/19) 2.00 54.00 X X 0 862269 28729 David Michael Sengstock Program Director Geriatric 50.00 0.00 X 0 325706 46591 Margaret Lightner President & Secretary 2.00 48.00 X X 0 262284 72480 Maria Miller Treasurer 2.00 52.00 X X 0 230421 55652 Jacqueline C Mohs Physician 50.00 0.00 X 0 249668 26331 Linda Susan Nickerson Admin. Residential Svc LTC 50.00 0.00 X 0 124333 27674 Marceline Weshalek Dir. Finance Operations LTC 50.00 0.00 X 0 127997 6347 0 3062551 531709 0 0 1 0 Morrison Management Specialists Inc PO Box 102289 Atlanta GA 303682289 Food Service Staffing 3581759 Therapy Management Inc 851 Penniman Ave Plymouth MI 48170 Therapy Services 2040862 OnceCare RX 1945 heide Dr Ste A Troy MI 48084 Pharmacy Services 836613 Tricounty Nurses Plus LLC 20600 Eureka Rd Ste 710 Taylor MI 48180 Nursing Services 406459 Rollin Lee Titsworth Trust 101 W Big Beaver Troy MI 48084 Patient Estate Services 353210 28 Net Patient Service 624100 18056372 18056372 0 0 Apartment Rental 623990 10570278 10570278 0 0 Other Resident Service 623000 1116156 1116156 0 0 29742806 4589847 4589847 5300 2069 3231 3231 3231 Chart/ Bill Copies 561000 2610 2610 0 2610 34338494 29745416 0 4593078 X 10313583 8354647 1958936 4085137 3427839 657298 769750 645897 123853 113799 113799 6672343 6572881 99462 98796 98796 168819 57951 110868 787 787 1134800 1098256 36544 11384 5556 5828 2340 2340 1050104 1050104 1735852 1472274 263578 162623 101500 61123 Corporate Allocations 2941696 2941696 Prof. Svcs. Allocation 1553935 1553935 Pharmaceuticals 1134404 1134404 Medical Expenses 467848 467848 744095 744095 33162095 29841478 3320617 0 1219541 269203 2610792 2549305 40549 30011 83708 85717 58430647 31768063 26321037 26662584 56239693 65474061 15115732 14036756 101631052 109107637 2005301 856390 191437 90513 14198942 12623515 27277774 31662128 43673454 45232546 X 57957598 63875091 57957598 63875091 101631052 109107637 X 1176399 4388317 352777 X 0 1 X 1 0 X 49747 64024 11604 0 0 125375 32333705 34496922 33456558 32018305 29742806 162048296 2281 5773 5702 5117 2610 21483 32385733 34566719 33473864 32023422 29745416 162195154 0 0 0 162195154 2078370 3864638 3753152 73634 4589847 14359641 2078370 3864638 3753152 73634 4589847 14359641 34464103 38431357 37227016 32097056 34335263 176554795 0.91870 0.93520 0.08130 0.06480 X 0 1 X 0 1 1 4051214 4051214 44315413 25746599 18568814 5954214 5041002 913212 4109806 980462 3129344 26662584 Cash Equivalents 7316133 F Commingled Funds 10650120 F Equity Funds 13210882 F Agency 67920 F Asset Backed 1355673 F CMO 851499 F Corporate Bonds 3427453 F Mortgage Pass-Through 1085881 F Municipal Bonds 591008 F US Treasury 2892362 F Yankee 1056481 F Private Capital 3087677 F Private Real Estate 1576754 F Hedge Funds 16183136 F Derivatives 487298 F Mutual Fund 1633784 F 65474061 Escrow Entrance Fees 12047188 Due From Affiliates 1989568 14036756 Intercompany Debt to Beaumont Health 20978619 Third Party Payables 880132 Due to Affiliates 9803377 31662128 38609782 4388318 4388318 34221464 113799 3231 117030 34338494 33045065 0 33045065 113799 3231 117030 33162095 Part IV, Line 2b: The escrow account liability is refundable resident deposits. These deposits consist of interest-bearing investments held by Oakwood Health Promotions, Inc. (OHP) in escrow for current and prospective residents. Interest earned on resident funds is available to OHP; interest earned on funds of prospective residents is not credited to them until they enter the facility or withdraw their application. Deposits are refunded no later than 90 days from the date the residents provide notice that they are leaving the facility, in accordance with disclosure statement contract. Part V, Line 4: 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. Part XI, Line 4b - Other Adjustments: Gain/Loss on disposal of assets 3,231. Part XII, Line 4b - Other Adjustments: Gain/Loss on disposal of assets 3,231. 1 0 0 0 0 0 0 0 0 Susan Grant Chairperson (Start 10/24/19) 0 564116 0 307203 0 8554 0 258473 0 9432 0 1147778 0 232136 Paul LaCasse Chairperson (End 10/24/19) 0 138284 0 303890 0 420095 0 13750 0 14979 0 890998 0 229633 David Michael Sengstock Program Director Geriatric 0 276047 0 29673 0 19986 0 25242 0 21349 0 372297 0 0 Margaret Lightner President & Secretary 0 184452 0 55931 0 21901 0 51638 0 20842 0 334764 0 55931 Maria Miller Treasurer 0 184466 0 44276 0 1679 0 42724 0 12928 0 286073 0 44276 Jacqueline C Mohs Physician 0 185322 0 60669 0 3677 0 17083 0 9248 0 275999 0 0 Linda Susan Nickerson Admin. Residential Svc LTC 0 112763 0 9977 0 1593 0 12605 0 15069 0 152007 0 9977 Part I, Line 3 Beaumont Health, the parent corporation and sole member of Oakwood Healthcare, Inc., which is the sole member of Oakwood Health Promotions, Inc., uses the following to establish the compensation of the organization's top management official: - Compensation committee - Independent compensation consultant - Written employment contract - Compensation survey or study - Approval by the board or compensation committee Part I, Line 4a For some individuals, the employment agreement may provide if the employer terminates the agreement and the parties separate other than for cause, the employee may be entitled to severance pay. The terms and conditions to receive severance payments require the employee to sign a release of claims form that covers all situations surrounding the employee's employment and separation from the company. Severance payments made by Oakwood Healthcare, Inc. during 2019 include payments to the following individuals: Paul LaCasse, Severance Payment: $393,665 Part I, line 5a: Beaumont Health, the parent corporation and sole member of Oakwood Healthcare, Inc., which is the sole member of Oakwood Health Promotions, Inc., pays compensation on behalf of Oakwood Health Promotions, Inc. 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 is the parent corporation and sole member of Oakwood Healthcare, Inc., which is the sole member of Oakwood Health Promotions Inc. 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' 2019 compensation is both competitive and reasonable. Philosophy Our executive compensation programs are based on the following key attributes: - Programs are aligned to the market - 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. For example, when the organization achieved upper-quartile performance, the intent is to have executive pay aligned with market pay in the upper-quartile. Lower levels of performance results in lower levels of executive pay, including no incentive pay if the organization does not meet certain metrics. - 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. As such, a substantial portion of an executive's 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 2019, 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 vested in earlier years. - General health and welfare programs are consistent with non-executives - in an effort to drive consistency, transparency, and fairness, Beaumont executives participate in the same health and welfare programs as other non-executive employees. 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. 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: Maria Miller Paul LaCasse Form 990, Part VI, Section A, line 3 Oakwood Healthcare, Inc., on behalf of Oakwood Health Promotions, Inc., has outsourced the management duties of dietary services, clinical engineering, facility services, environmental services and laundry services. All companies engaged to provide managerial services for the organization report directly to site administrators and/or corporate directors employed by Oakwood Healthcare, Inc. Form 990, Part VI, Section A, line 6 Oakwood Healthcare, Inc., a wholly-owned subsidiary of Beaumont Health, is the corporate member of Oakwood Health Promotions, Inc. Form 990, Part VI, Section A, line 7a Beaumont Health is the parent corporation and sole member of Oakwood Healthcare, Inc., which is the sole member of Oakwood Health Promotions, Inc. Oakwood Healthcare, Inc., acting solely at the direction of the parent, has the right to elect one or more members of Oakwood Health Promotion Inc.'s governing body. Form 990, Part VI, Section A, line 7b Beaumont Health, as the parent of Oakwood Healthcare, Inc., and Oakwood Healthcare, Inc., as the corporate member of Oakwood Health Promotions, Inc., have designated reserved powers over Oakwood Health Promotions, Inc.'s operations, including but not limited to budget, acquisitions, capital projects and participation in joint ventures. 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, the parent corporation and sole member of Oakwood Healthcare, Inc., which is the sole member of Oakwood Health Promotions, Inc., 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 or interest/disclosure of remuneration statements 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 receives 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 a 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 Directors, of which Oakwood Health Promotions, Inc. is affiliated through its parent corporation, Oakwood Healthcare, Inc., 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 11g Contracted Labor: Program service expenses 2,438,497. Management and general expenses 2,639. Fundraising expenses 0. Total expenses 2,441,136. Consulting, Other: Program service expenses 17,324. Management and general expenses 26,500. Fundraising expenses 0. Total expenses 43,824. Temporary Labor, Non Clinical: Program service expenses 7,150. Management and general expenses 170. Fundraising expenses 0. Total expenses 7,320. Transportation Services: Program service expenses 155,983. Management and general expenses 0. Fundraising expenses 0. Total expenses 155,983. Other, Net: Program service expenses 64,467. Management and general expenses 70,153. Fundraising expenses 0. Total expenses 134,620. Dietary services: Program service expenses 3,889,460. Management and general expenses 0. Fundraising expenses 0. Total expenses 3,889,460. Form 990, Part XI, line 9: Assets released for capital expenditure 610,918. Transfer to Beaumont Health -258,141. Form 990, Part VII, Section B, Line 1: The health system has a centralized accounts payable function and, as such, all 1099's are issued by Beaumont Health. Beaumont Health 26901 Beaumont Blvd Southfield MI 48033 465718220 Parent Company of the Health System MI 501(c)(3) 12C, III-FI N/A 0 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 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 Oakmed LLC 1938 Woodslee Drive Troy MI 48083 461459737 Private Duty Nursing MI N/A Beaumont kidney Specialty Services LLC 26400 West Twelve Mile Road Southfield MI 48034 262200439 Dialysis Services MI N/A 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 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 Beaumont Health Foundation R 669522 FMV William Beaumont Hospital R 51385 FMV Oakwood Healthcare Inc S 462765 FMV Beaumont Health Foundation Q 782819 FMV Beaumont Health E 20978619 FMV