2020-05-12T08:44:59-05:00 2019-06-30 381357951 PLANTE & MORAN PLLC 27400 NORTHWESTERN HIGHWAY SOUTHFIELD MI 48034 990 2018-07-01 383369438 COVENANT MEDICAL CENTER INC COVE 9895836006 1447 N HARRISON SAGINAW MI 48602 KEVIN ALBOSTA VP/CFO 9895836006 2020-05-01 1 DAVID LOWENTHAL P00378651 2483522500 2020-05-01 174.230.128.179 2020-05-01 14:59:50 ED P DA39A3EE5E6B4B0D3255BFEF95601890AFD80709 673B545B2768338637EAA4688F090F73F4FEE4B9 2018 2020-09-22 18:59:49Z COVENANT HEALTHCARE EDWARD BRUFF 1447 N HARRISON SAGINAW MI 48602 693118114 0 X WWW.COVENANTHEALTHCARE.COM X 1997 MI TO PROVIDE DIVERSE MEDICAL CARE TO MEET THE HEALTH CARE NEEDS OF THE 14 COUNTIES IN EAST CENTRAL MICHIGAN WE SERVE. 14 12 5521 472 61120 80302 1013403 872917 678278914 665987322 22047700 20323354 5777028 5934521 707117045 693118114 0 0 0 0 365995162 378438366 0 0 0 291050504 282347140 657045666 660785506 50071379 32332608 731378507 762269811 276868861 291098839 454509646 471170972 X TO PROVIDE DIVERSE MEDICAL CARE TO MEET THE HEATLH CARE NEEDS OF THE 14 COUNTIES IN EAST CENTRAL MICHIGAN WE SERVE. 0 0 595277125 665891924 ONE OF THE LARGEST, MOST COMPREHENSIVE HEALTH CARE FACILITIES NORTH OF METRO DETROIT, COVENANT HEALTHCARE IS PREPARED TO RESPOND TO THE DIVERSE MEDICAL NEEDS OF OUR REGION. WE OFFER A BROAD SPECTRUM OF PROGRAMS AND SERVICES RANGING FROM OBSTETRICS, NEONATAL AND PEDIATRIC CARE, TO ACUTE CARE INCLUDING CARDIOLOGY, ONCOLOGY, SURGERY AND MANY OTHER SERVICES ON THE LEADING EDGE OF MEDICINE. ALL OF OUR PROGRAMS AND SERVICES EXEMPLIFY OUR COMMITMENT TO PROVIDING QUALITY, COMPASSIONATE CARE. AS A MEDICAL FACILITY WITH MORE THAN 600 BEDS AND A COMPLETE RANGE OF MEDICAL SERVICES, COVENANT HEALTHCARE STANDS READY TO MEET THE NEEDS OF THE 14 COUNTIES IN EAST CENTRAL MICHIGAN WE SERVE. WITH MORE THAN 20 INPATIENT AND OUTPATIENT FACILITIES, COVENANT HEALTHCARE OFFERS CONVENIENCE AND EASY ACCESS TO HIGH QUALITY CARE. THE MEDICAL CENTER PROVIDED THE FOLLOWING FOR THE FISCAL YEAR 2019: 6,612 WOMEN'S AND CHILDREN'S CASES, 3,928 CARDIOLOGY CASES, 3,823 GENERAL MEDICAL CASES, 2,400 ORTHOPEDIC CARE CASES, AND 2,723 PULMONARY. 595277125 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 0 0 1 0 0 1 0 0 0 0 0 1 1 0 0 1 1 0 0 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 1 240 0 1 5521 1 1 1 1 CJ 0 0 0 0 0 0 0 0 0 0 X 14 12 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 1 0 X KEVIN S ALBOSTA 9895832769 1447 N HARRISON SAGINAW MI 48602 EDWARD BRUFF PRESIDENT/CEO 50.00 8.00 X X 1014250 0 569170 JAMES MILROY TREASURER 4.00 4.00 X X 0 0 0 DWIGHT MCNALLY SECRETARY 4.00 4.00 X X 0 0 0 GENE PICKELMAN VICE CHAIRMAN 4.00 4.00 X X 0 0 0 LAWRENCE SIMS CHAIRMAN 4.00 4.00 X X 0 0 0 CULLI DAMUTH BOARD MEMBER 4.00 9.00 X 0 0 0 JONATHAN GARDEY BOARD MEMBER 4.00 4.00 X 0 0 0 TIMOTHY HAUSBECK BOARD MEMBER 4.00 4.00 X 0 0 0 JOHN JOHNSON BOARD MEMBER 4.00 4.00 X 0 0 0 RENEE JOHNSTON BOARD MEMBER 4.00 4.00 X 0 0 0 DAVID MEYER BOARD MEMBER 4.00 4.00 X 0 0 0 JOHN SHELTON BOARD MEMBER 4.00 8.00 X 0 0 0 HERBERT SPENCE III BOARD MEMBER 4.00 4.00 X 0 0 0 GINNY LATTY VICE PRESIDENT 50.00 4.00 X X 309953 0 11752 GREGGORY LUBBEN BOARD MEMBER (THRU 12/31/18) 4.00 4.00 X 0 0 0 DANIEL GEORGE VICE PRESIDENT 50.00 4.00 X 753171 0 148364 BETH CHARLTON VICE PRESIDENT 50.00 5.00 X 299993 0 147637 KEVIN ALBOSTA VICE PRESIDENT 50.00 9.00 X 459742 0 332427 KEVIN BIRCHMEIER VICE PRESIDENT 50.00 6.00 X 308835 0 54244 DR IRIS MARTEJA VICE PRESIDENT 50.00 4.00 X 405342 0 0 DAVID NALL VICE PRESIDENT 50.00 4.00 X 254349 0 93582 DR MICHAEL SCHULTZ VICE PRESIDENT 50.00 4.00 X 173222 0 0 DR JOHN KOSANOVICH VICE PRESIDENT 50.00 4.00 X 212004 0 1004 DR MICHAEL SULLIVAN VICE PRESIDENT 50.00 0.00 X 451765 0 22958 ASAD MEHBOOB PHYSICIAN 40.00 0.00 X 985757 0 0 BINU MALHOTRA PHYSICIAN 40.00 0.00 X 890177 0 0 COLLEEN LINEHAN PHYSICIAN 40.00 0.00 X 820696 0 0 FRANK SCHINCO PHYSICIAN 40.00 0.00 X 815926 0 0 JAMES FUGAZZI PHYSICIAN 40.00 0.00 X 786935 0 0 TIM WENZEL FORMER VICE PRESIDENT 0.00 0.00 X 112779 0 0 9054896 0 1381138 420 1 1 0 EPIC SYSTEMS CORPORATION PO BOX 88314 MILWAUKEE WI 53288 IT MTC SUPPORT 3786193 HEMA-TEC 23634 WOODWARD AVE PLEASANT RIDGE MI 48069 DIALYSIS SERVICES 2619600 DICKINSON WRIGHT PLLC 4800 FASHION SQ BLVD SAGINAW MI 48604 LEGAL SERVICES 1990450 CLIENT FINANCIAL SERV OF MICH PO BOX 350 FENTON MI 48430 COLLECTION SERVICES 1479980 EXECUTIVE HEALTH RESOURCES PO BOX 822688 PHILADELPHIA PA 19182 CONSULTING SERVICES 1052130 100 872917 872917 PATIENT SERVICE REVENUE 621990 653229645 653134247 95398 JOINT VENTURES 621990 11584248 11584248 EDUCATIONAL REVENUE 611710 950341 950341 REBATE INCOME 900099 223088 223088 665987322 8576101 -60455 8636556 3035179 0 3035179 3035179 3035179 11535605 211648 0 0 11535605 211648 11747253 11747253 CAFETERIA SALES 722210 2469054 26177 2442877 MACKINAW DEFERRED REVENUE 900099 251364 251364 178924 178924 2899342 693118114 665891924 61120 26292153 6136542 6136542 299401714 275694868 23706846 11318938 11318938 43368517 43074276 294241 18212655 16255798 1956857 2427345 2427345 193600 193600 56000 56000 44923880 41588282 3335598 3822897 1096914 2725983 9316841 8999093 317748 11485338 605306 10880032 12798221 12052420 745801 137683 85381 52302 776745 114576 662169 3503877 3503877 29935110 27294869 2640241 1633447 9766 1623681 MEDICAL SUPPLIES 125767476 125618612 148864 BAD DEBT EXPENSE 25535089 25535089 DUES AND SUBSCRIPTIONS 3085743 1437924 1647819 COLLECTION FEES 2097967 2097967 4849881 991136 3858745 660785506 595277125 65508381 0 26671156 31915785 37797393 32760686 65528063 69688647 15949867 16028397 43433016 41862753 669441233 489977930 175258594 179463303 266878067 285861595 78276226 86379977 21586125 18308668 731378507 762269811 62609028 68024561 89310254 76624318 23280000 124949579 123169960 276868861 291098839 X 454509646 471170972 454509646 471170972 731378507 762269811 X 32332608 -622368 -15048914 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 1 56000 0 0 0 56000 0 PART II-B, LINE 1: AN OUTSIDE CONSULTANT WAS ENGAGED IN LOBBYING ACTIVITIES ON BEHALF OF COVENANT MEDICAL CENTER DURING FISCAL YEAR ENDED JUNE 30, 2019. 10441873 10441873 220137055 180320869 39816186 6860108 6467870 392238 432002197 303189191 128813006 179463303 COMMON TRUST FUNDS 33642227 F LIMITED PARTNERSHIPS 8509379 F HEDGE FUNDS 44228371 F 86379977 POST RETIREMENT HEALTH BENEFITS 28361919 ACCRUED PENSION 51523318 OTHER LONG TERM LIABILITIES 27375046 DEFERRED COMP 457(B) 15909677 123169960 CENTRAL AMERICA/CARIBBEAN PROGRAM SERVICES SELF INSURANCE 1772192 CENTRAL AMERICA/CARIBBEAN INVESTMENTS INVESTMENTS 40704612 0 0 0 0 0 0 42476804 0 42476804 1 0 1 0 0 0 1 1 X 1 X 1 X 1 1 0 1 1 1 43674 1692213 0 1692213 0.00270 1 34717 126699977 105790176 20909801 0.03290 2 78391 128392190 105790176 22602014 0.03560 392 34633 401086 82 401004 0.00060 57 59270 15390620 4408353 10982267 0.01730 34 28586 91956 91956 0.00010 483 122489 15883662 4408435 11475227 0.01800 485 200880 144275852 110198611 34077241 0.05360 1 10000 9375 9375 0.00000 372 65458 194338 194338 0.00030 1 10000 5000 5000 0.00000 5 1025 39338 39338 0.00010 49 27990 292687 130 292557 0.00050 3 10 68983 68983 0.00010 431 114483 609721 130 609591 0.00100 1 25535089 146278740 136523052 9755688 X 1 1 1 COVENANT HEALTH CARE PARTNERS HEALTH CARE 0.50000 0.50000 2 MACKINAW SURGERY CENTER SURGERY CENTER 0.47850 0.52160 3 COVENANT LCR MACKINAW FC RENTAL 0.75840 0.24160 4 COVENANT POB LLC RENTAL 0.48920 0.51080 4 1 COVENANT MEDICAL CENTER INC (COOPER) 700 COOPER SAGINAW MI 48602 HTTP://WWW.COVENANTHEALTHCARE.COM/MAIN 1060000060 X X X X 2 COVENANT MEDICAL CENTER INC (HARRISON) 1447 N HARRISON SAGINAW MI 48602 HTTP://WWW.COVENANTHEALTHCARE.COM/MAIN 1060000034 X X X X 3 COVENANT MEDICAL CENTER INC (REHAB) 515 N MICHIGAN SAGINAW MI 48602 HTTP://WWW.COVENANTHEALTHCARE.COM/MAIN 1060000139 X X REHABILITATION UNIT 4 COVENANT MEDICAL CENTER INC (MICHIGAN) 515 N MICHIGAN SAGINAW MI 48602 HTTP://WWW.COVENANTHEALTHCARE.COM/MAIN 1070000402 X X SKILLED NURSING UNIT COVENANT MEDICAL CENTER INC (COOPER) 1 0 0 1 X X X X X X X X X 16 1 1 1 1 X HTTPS://WWW.COVENANTHEALTHCARE.COM/ X 1 16 1 HTTPS://WWW.COVENANTHEALTHCARE.COM/ 0 1 X 200.000000000000 300.000000000000 X X X 1 1 X X X 1 X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X X X X X X 1 X 0 X X X X X 1 X 0 0 COVENANT MEDICAL CENTER INC (HARRISON) 2 0 0 1 X X X X X X X X X 16 1 1 1 1 X HTTPS://WWW.COVENANTHEALTHCARE.COM/ X 1 16 1 HTTPS://WWW.COVENANTHEALTHCARE.COM/ 0 1 X 200.000000000000 300.000000000000 X X X 1 1 X X X 1 X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X X X X X X 1 X 0 X X X X X 1 X 0 0 COVENANT MEDICAL CENTER INC (REHAB) 3 0 0 1 X X X X X X X X X 16 1 1 1 1 X HTTPS://WWW.COVENANTHEALTHCARE.COM/ X 1 16 1 HTTPS://WWW.COVENANTHEALTHCARE.COM/ 0 1 X 200.000000000000 300.000000000000 X X X 1 1 X X X 1 X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X X X X X X 1 X 0 X X X X X 1 X 0 0 COVENANT MEDICAL CENTER INC (MICHIGAN) 4 0 0 1 X X X X X X X X X 16 1 1 1 1 X HTTPS://WWW.COVENANTHEALTHCARE.COM/ X 1 16 1 HTTPS://WWW.COVENANTHEALTHCARE.COM/ 0 1 X 200.000000000000 300.000000000000 X X X 1 1 X X X 1 X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X HTTPS://TINYURL.COM/UUPPQLP X X X X X X 1 X 0 X X X X X 1 X 0 0 COVENANT MEDICAL CENTER INC (COOPER) PART V, SECTION B, LINE 5: THE CHNA DATA WAS GATHERED USING THE FOUR MOBILIZING FOR ACTION THROUGH PLANNING AND PARTNERSHIPS (MAPP) ASSESSMENTS: COMMUNITY THEMES AND STRENGTHS, LOCAL PUBLIC HEALTH SYSTEM, COMMUNITY HEALTH STATUS, AND FORCES OF CHANGE. IN AN ATTEMPT TO ACQUIRE BROAD COMMUNITY INPUT REGARDING THE HEALTH CONCERNS OF SAGINAW COUNTY RESIDENTS, INFORMATION WAS GATHERED AT VARIOUS PUBLIC MEETINGS THROUGHOUT THE COUNTY AND FROM AREA AGENCIES USING SURVEYS CONDUCTED. COVENANT MEDICAL CENTER INC (COOPER) PART V, SECTION B, LINE 6B: THE HOSPITAL CONTRIBUTES AND PARTICIPATES IN THE SAGINAW COUNTY ROAD MAP TO HEALTH (CHNA) PARTICIPATING WITH SAGINAW COUNTY DEPARTMENT OF PUBLIC HEALTH, ST MARY'S OF MICHIGAN, HEALTH DELIVERY, INC, SAGINAW INTERMEDIATE SCHOOL DISTRICT, SAGINAW COUNTY COMMUNITY MENTAL HEALTH AUTHORITY, AND ALIGNMENT SAGINAW. COVENANT MEDICAL CENTER INC (COOPER) PART V, SECTION B, LINE 11: THE COMMUNITY HEALTH IMPROVEMENT PLAN PROCESS IDENTIFIED 8 AREAS OF NEEDED HEALTH IMPROVEMENT FOR SAGINAW AND SURROUNDING AREAS. THEY ARE AS FOLLOWS: OBESITY, CHRONIC ILLNESS, DENTAL HEALTH, MATERNAL, INFANT & CHILD HEALTH, SUBSTANCE ABUSE, MENTAL HEALTH, ACCESSTO HEALTHY CHOICES & OPPROTUNITIES & ACCESS TO HEALTH CARE.COVENANT'S IMPLEMENTATION PLAN ADDRESSES ALL SIX PRIORITY AREAS IN VARYING DEGREES BASED ON THE AVAILABILITY OF COMMUNITY RESOURCES, THE PARTNERSHIPS IN PLACE AND THE RESOURCES COVENANT CAN DIRECT TO EACH OF THESE AREAS.THE ACA REQUIRES HOSPITALS TO IDENTIFY WHICH NEEDS, IF ANY, THEY ARE NOT ADDRESSING IN THEIR CURRENT IMPLEMENTATION PLAN AND WHY. COVENANT IS INVOLVED IN ADDRESSING ALL SIX ACTION AREAS TO VARYING DEGREES HOWEVER IT RECOGNIZES THAT IT IS NOT, AND SHOULD NOT, BE THE LEADER IN ALL AREAS BUT THAT WORKING WITH APPROPRIATE PARTNERS IT CAN OPTIMIZE THE USE OF RESOURCES BY AVOIDING DUPLICATION AND FINDING THE MOST EFFECTIVE STRATEGIES AVAILABLE. IN THE LAST ACTION AREA, COVENANT HEALTHCARE PLAYS MORE OF A SUPPORTIVE ROLE TO OTHER COMMUNITY PARTNERS WHO ARE FOCUSED ON BEHAVIORAL HEALTH. COVENANT MEDICAL CENTER INC (COOPER) PART V, SECTION B, LINE 20E: WE HAVE POSTED PLAIN LANGUAGE SUMMARIES AT ALL REGISTRATION POINTS, WITH STEP BY STEP INSTRUCTIONS ON HOW TO OBTAIN AN APPLICATION. COVENANT MEDICAL CENTER INC (HARRISON) PART V, SECTION B, LINE 20E: WE HAVE POSTED PLAIN LANGUAGE SUMMARIES AT ALL REGISTRATION POINTS, WITH STEP BY STEP INSTRUCTIONS ON HOW TO OBTAIN AN APPLICATION. COVENANT MEDICAL CENTER INC (REHAB) PART V, SECTION B, LINE 20E: WE HAVE POSTED PLAIN LANGUAGE SUMMARIES AT ALL REGISTRATION POINTS, WITH STEP BY STEP INSTRUCTIONS ON HOW TO OBTAIN AN APPLICATION. COVENANT MEDICAL CENTER INC (MICHIGAN) PART V, SECTION B, LINE 20E: WE HAVE POSTED PLAIN LANGUAGE SUMMARIES AT ALL REGISTRATION POINTS, WITH STEP BY STEP INSTRUCTIONS ON HOW TO OBTAIN AN APPLICATION. 34 1 - IRVING CAMPUS 600 IRVING AVE SAGINAW MI 48602 PM&R, OCC HEALTH, EMPLOYEE WELLNESS 2 - HOUGHTON CAMPUS 1000 HOUGHTON AVE SAGINAW MI 48602 LABORATORY 3 - DR CASTILLO & LAB 6614 DIXIE HWY BRIDGEPORT TOWNSHIP MI 48722 PHYSICIAN OFFICE 4 - MED EXPRESS BAY CITYBAY PRIMARY CARE 2997 WILDER RD BAY CITY MI 48706 URGENT CARE/PHYSICIAN OFFICE 5 - MED EXPRESSBREAST IMAGING 5570 STATE STREET SAGINAW MI 48602 URGENT CARE 6 - COVENANT POB 800 COOPER AVE SAGINAW MI 48602 PHYSICIAN OFFICE 7 - COVT BREAST IMAGINGMED EXPRESS PRIMARY 600 N MAIN ST FRANKENMUTH MI 48734 URGENT CARE, IMAGING, PMR, PHYSICIAN OFFICE 8 - DR EASTONLAB 8767 GRATIOT RD SAGINAW MI 48609 PHYSICIAN OFFICE/LAB 9 - VNA 500 S HAMILTON SAGINAW MI 48602 HOME CARE 10 - HEMLOCK FAMILY MEDICINEMED EXPRESS PM&R 16440 GRATIOT RD HEMLOCK MI 48626 URGENT CARE/PHYSICIAN OFFICE 11 - FREELAND PRIMARY CARE & LAB 7362 MIDLAND RD FREELAND MI 48623 PHYSICIAN OFFICE/LAB 12 - SBIM 3875 BAY ROAD 25 SAGINAW MI 48602 PHYSICIAN OFFICE 13 - VNA CARTWRIGHT CENTER 3443 HOSPITAL RD SAGINAW MI 48602 HOME HEALTH 14 - SAGINAW TWP FAMILY PRACTICE 3875 BAY RD SAGINAW MI 48602 PHYSICIAN OFFICE 15 - SILVERWOOD FAMILY MEDICINE 3037 SILVERWOOD DR SAGINAW MI 48602 PHYSICIAN OFFICE 16 - COVENANT PHYSIATRY 3350 SHATTUCK RD SAGINAW MI 48602 PHYSICIAN OFFICE 17 - MACKINAW CAMPUS 5400 MACKINAW RD SAGINAW MI 48602 HEALTHCARE OFFICE 18 - ECC 900 COOPER AVE SAGINAW MI 48602 ER-24 HRS 19 - DR JOHNSON 1430 N CENTER RD SAGINAW MI 48602 PHYSICIAN OFFICE 20 - GRATIOT FAMILY PRACTICE 1910 PINE AVE ALMA MI 48801 PHYSICIAN OFFICE 21 - COVENANT OCC HEALTH 1549 WASHINGTON ST MIDLAND MI 48640 OCC HEALTH 22 - CENTER FOR THE HEART 4884 BERL DR SAGINAW MI 48604 PHYSICIAN OFFICE 23 - WEST BRANCH PRIMARY CARE 335 E HOUGHTON AVE WEST BRANCH MI 48661 PHYSICIAN OFFICE 24 - BIRCH RUN PRIMARY CARE 8470 MAIN ST BIRCH RUN MI 48415 PHYSICIAN OFFICE 25 - SAGINAW VALLEY PRIMARY CAREMED EXPRESS 2970 PIERCE RD SAGINAW MI 48604 PHY OFFICE/PRIMARY CARE/URGENT CARE 26 - DR BEAUBIEN 4701 TOWNE CENTRE RD SAGINAW MI 48604 PHYSICIAN OFFICE 27 - SEBEWAING PRIMARY CARE 616 UNIONVILLE RD SEBEWAING MI 48759 PHYSICIAN OFFICE 28 - COLONY 125 N COLONY SAGINAW MI 48638 PRIMARY CARE 29 - SAGINAW FAMILY PHYSICIANS 835 MIDLAND RD SAGINAW MI 48638 PRIMARY CARE 30 - CARDIO 2750 MAIN STREET MARLETTE MI 48453 CARDIO 31 - ORTHO - DR DEBARI 3875 BAY ROAD SAGINAW MI 48603 ORTHO 32 - DR AMANDA SCHAEFER-JOHNSON 3085 HALLMARK ROAD SAGINAW MI 48603 NEURO 33 - VNA DME 6190 HOSPITAL ROAD CASS CITY MI 48726 VNA DME 34 - DR GILL 1320 N MICHIGAN 7 SAGINAW MI 48602 GI PART I, LINE 7: THE BEST AVAILABLE INFORMATION WAS USED TO CALCULATE THE COST IN LINE 7. COST IS BASED ON THE COST TO CHARGE RATIO. MEDICAID COST ON ROW B, CALCULATED USING RATIO COST TO CHARGE FROM WORKSHEET 3. PART I, LN 7 COL(F): BAD DEBT EXPENSE WAS SUBTRACTED FROM THE TOTAL EXPENSE TO OBTAIN THE PERCENTAGE OF THE COMMUNITY BENEFIT TO TOTAL EXPENSES AMOUNTED TO $25,535,089.THE PROVISION FOR BAD DEBTS IS BASED ON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE AND CURRENT MARKET CONDITIONS. THE RESULTS OF THESE REVIEWS ARE USED TO MAKE ANY MODIFICATIONS TO THE METHODOLOGY FOR ESTIMATING THE PROVISION FOR BAD DEBTS AND ESTABLISHING THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, COVENANT HEALTHCARE FOLLOWS ESTABLISHED GUIDELINGS FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES. PART III, LINE 2: METHODOLOGY USED IN DETERMINING BAD DEBT: THIS FIGURE IS A RESULT OF THE SHIFT FROM BAD DEBT TO FINANCIAL ASSISTANCE DUE TO PRESUMPTIVE CHARITY & THE IMPLEMENTATION OF SELF-PAY DISCOUNTING. ANOTHER CONTRIBUTING FACTOR IS THE EXPANSION OF MEDICAID, THEREFORE DECREASING THE NUMBER OF SELF-PAY ACCOUNTS. PART III, LINE 4: THE PROVISION FOR BAD DEBTS IS BASED ON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY THROUGHOUT THE YEAR, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS BASED UPON HISTORICAL WRITE-OFF EXPERIENCE AND CURRENT MARKET CONDITIONS. THE RESULTS OF THESE REVIEWS ARE USED TO MAKE ANY MODIFICATIONS TO THE METHODOLOGY FOR ESTIMATING THE PROVISION FOR BAD DEBTS AND ESTABLISHING THE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES. AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE, COVENANT HEALTHCARE FOLLOWS ESTABLISHED GUIDELINGS FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH COLLECTION AGENCIES. (FOOTNOTE 2, PAGE 10). PART III, LINE 8: THE HOSPITAL REPORTED MEDICARE ALLOWABLE COST, AS REPORTED ON THE MEDICARE COST REPORT, ON WORKSHEET H, PART III, SECTION B, LINE 6. THE METHODOLOGY REMOVES NON-ALLOWABLE COST PER MEDICARE RULES AND OFFSETS OTHER OPERATING REVENUE AGAINST COST. PROFESSIONAL PART B COST IS ALSO REMOVED. THE COST OF SUPPORT DEPARTMENTS IS ALLOCATED TO REVENUE PRODUCING DEPARTMENTS USING THE STEP-DOWN METHODOLOGY.WE HAVE CALCULATED THE MEDICARE FEE FOR SERVICE SURPLUS BASED ON THE COST REPORT PER THE INSTRUCTIONS, BUT THE HOSPITAL ALSO HAS $77.22 MILLION IN COSTS AND $64.7 MILLION IN REVENUE RELATED TO MEDICARE HMO. WITH THAT COST & REVENUE FACTORED IN, THE OVERALL MEDICARE SHORTFALL WOULD BE ($2.76 MILLION). PART III, LINE 9B: IF AN INDIVIDUAL QUALIFIES FOR FINANCIAL ASSISTANCE THEY WILL NOT BE SENT TO THE COLLECTION AGENCY, PROVIDED THEY IN GOOD FAITH SET UP A WAY TO RESOLVE THEIR BILLS. ONCE SOMEONE IS SENT TO THE COLLECTION AGENCY THEY ARE ALL TREATED THE SAME. TO QUOTE OUR POLICY - 'COVENANT MANAGEMENT HAS POLICIES AND PROCEDURES FOR COLLECTION PRACTICES, THESE INCLUDE ACTIONS THE HOSPITAL MAY TAKE IF THE PATIENT DOES NOT PAY. THESE COLLECTION ACTIONS INCLUDE POTENTIAL REPORTING TO CREDIT AGENCIES. THESE POLICIES TAKE INTO ACCOUNT THE EXTENT TO WHICH THE PATIENT QUALIFIES FOR FINANCIAL ASSISTANCE, THEIR GOOD FAITH EFFORT TO APPLY FOR A GOVERNMENTAL PROGRAM OR FINANCIAL ASSISTANCE FROM COVENANT, AND THEIR EFFORTS TO COMPLY WITH HIS OR HER PAYMENT AGREEMENTS WITH COVENANT. FOR PATIENTS WHO QUALIFY FOR FINANCIAL ASSISTANCE AND WHO ARE COOPERATING IN GOOD FAITH TO RESOLVE THEIR DISCOUNTED HOSPITAL BILLS, COVENANT MAY OFFER EXTENDED PAYMENT PLANS, WILL NOT SEND AN UNPAID BILL TO OUTSIDE COLLECTION AGENCIES, AND WILL CEASE ALL COLLECTION EFFORTS'. PART VI, LINE 2: COVENANT HEALTHCARE WITH THE SAGINAW COUNTY HEALTH DEPARTMENT, SAGINAW SCHOOLS AND OTHER KEY PLAYERS TO DEVELOP A COMMUNITY HEALTH IMPROVEMENT PLAN. DATA FROM NUMEROUS SOURCES ARE UTILIZED TO PROVIDE THE STATISTICAL FOUNDATION FOR THE PLAN. THE METHOD USED TO DEVELOP THE PLAN FOLLOWS THE NATIONAL MODEL KNOWN AS MAPP - MOBILIZING FOR ACTION THROUGH PLANNING AND PARTNERSHIPS. THIS MODEL WAS DEVELOPED BY THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC) AND THE NATIONAL ASSOCIATION OF COUNTY AND CITY HEALTH OFFICIALS (NACCHO). THE FOUR MAPP ASSESSMENTS INCLUDED COMMUNITY THEMES AND STRENGTHS, LOCAL PUBLIC HEALTH SYSTEM, COMMUNITY HEALTH ASSESSMENT, AND FORCES OF CHANGE. PART VI, LINE 3: COVENANT HEALTHCARE COMMUNICATES OUR CHARITY CARE AND FINANCIAL ASSISTANCE POLICY VIA THE COVENANT WEBSITE, A LETTER TO THE GUARANTOR IF BENEFIT ELIGIBILITY IS NOT ESTABLISHED, OR IN PERSON IF GUARANTOR INDICATES FINANCIAL NEED. LITERATURE ON THIS POLICY IS ALSO AVAILABLE AT REGISTRATION AREAS. PART VI, LINE 4: COVENANT HEALTHCARE IS LOCATED IN SAGINAW COUNTY AND CLOSE TO 90% OF INPATIENT DISCHARGES ARE FROM PATIENT WITHIN THE COUNTY. HOWEVER, COVENANT DOES REACH OUT INTO THE SURROUNDING COUNTIES AND HAS RELATIONSHIPS WITH SEVERAL CRITICAL ACCESS HOSPITALS IN THE REGION. COVENANT CONSIDERS SIX COUNTIES (SAGINAW, BAY, MIDLAND, TUSCOLA, HURON, AND SANILAC) AS ITS PRIMARY MARKET. ANOTHER 14 COUNTIES IN THE REGION ARE CONSIDERED THE SECONDARY SERVICE AREA. COVENANT HEALTHCARE IS LOCATED IN CBSA 40980 SAGINAW-SAGINAW TOWNSHIP NORTH WITHIN SAGINAW COUNTY, MICHIGAN. AS OF THE 2010 CENSUS, SAGINAW COUNTY'S POPULATION WAS 200,169. THERE WERE 80,430 HOUSEHOLDS OUT OF WHICH 32.70% HAD CHILDREN UNDER THE AGE OF 18 LIVING WITH THEM, 50.20% WERE MARRIED COUPLES LIVING TOGETHER, 15.40% HAD A FEMALE HOUSEHOLDER WITH NO HUSBAND PRESENT, AND 30.60% WERE NON-FAMILIES. IN THE COUNTY THE POPULATION WAS SPREAD OUT WITH 26.60% UNDER THE AGE OF 18, 9.00% FROM 18 TO 24, 27.60% FROM 25 TO 44, 23.20% FROM 45 TO 64, AND 13.50% WHO WERE 65 YEARS OF AGE OR OLDER. THE MEDIAN AGE WAS 36 YEARS. THE MEDIAN INCOME FOR A HOUSEHOLD IN THE COUNTY WAS $38,637, AND THE MEDIAN INCOME FOR A FAMILY WAS $46,494. THE PER CAPITA INCOME FOR THE COUNTY WAS $19,438. ABOUT 11.00% OF FAMILIES AND 13.90% OF THE POPULATION WERE BELOW THE POVERTY LINE, INCLUDING 20.70% OF THOSE UNDER AGE 18 AND 9.50% OF THOSE AGE 65 OR OVER. THE JOBLESS RATE IN CALENDAR YEAR 2009 WAS 20.8% IN THE CITY OF SAGINAW, 12.5% IN SAGINAW COUNTY COMPARED TO 13.6% FOR THE STATE OF MICHIGAN AS A WHOLE. PART VI, LINE 5: COVENANT HEALTHCARE IS ACTIVELY INVOLVED IN COMMUNITY BUILDING INITIATIVES. LEADERSHIP FROM THROUGHOUT THE ORGANIZATION HOLD VOLUNTARY BOARD AND COMMITTEE POSITIONS IN COMMUNITY GROUPS AND ORGANIZATIONS FOCUSED ON IMPROVING THE QUALITY OF LIFE IN THE REGION, PARTICULARLY AROUND ISSUES OF COMMUNITY HEALTH. ADDITIONALLY, THE ORGANIZATION CONDUCTS COMMUNITY OUTREACH AND SCREENING ACTIVITIES IN THE VARIOUS COMMUNITIES IN OUR REGION TO IMPACT HEALTH IN SUCH WAYS AS EARLY DISEASE DETECTION TO TRAUMA PREVENTION. UNDER THE DIRECTION OF A VOLUNTEER COMMUNITY BOARD, COVENANT HEALTHCARE IS AN INTEGRAL PART OF THE COMMUNITIES IT SERVES. THE COVENANT VISION IS TO CONSISTENTLY DELIVER ON A PROMISE OF CARING AND A COMMITMENT TO SERVICE. GUIDED BY A SEPARATE VOLUNTEER BOARD, THE COVENANT HEALTHCARE FOUNDATION ASSISTS THE MEDICAL CENTER IN CARRYING OUT ITS SERVICE MISSION THROUGH THE ACQUISITION OF PHILANTHROPIC FUNDS TO SERVE AS A PRIME RESOURCE IN THE DELIVERY OF CARE TO THOSE COVENANT HEALTHCARE SERVES. THE ORGANIZATION USES ITS SURPLUS FUNDS TO CONDUCT COMMUNITY OUTREACH AND SCREENING ACTIVITIES IN THE VARIOUS COMMUNITIES IN OUR REGION TO IMPACT HEALTH IN SUCH WAYS AS EARLY DISEASE DETECTION TO TRAUMA PREVENTION. PART VI, LINE 6: COVENANT MEDICAL CENTER IS A PART OF THE COVENANT HEALTH SYSTEM (DOING BUSINESS AS COVENANT HEALTHCARE). COVENANT HEALTHCARE IS A NON-PROFIT HEALTH SYSTEM THAT OFFERS A BROAD SPECTRUM OF PROGRAMS AND SERVICES RANGING FROM HIGH RISK OBSTETRICS, NEONATAL AND PEDIATRIC INTENSIVE CARE, TO ACUTE CARE INCLUDING A LEVEL II ADULT AND PEDIATRIC TRAUMA CENTER, CARDIOLOGY, ONCOLOGY, ORTHOPEDICS, ROBOTIC SURGERY AND MANY OTHER SERVICES ON THE LEADING EDGE OF MEDICINE. ALL PROGRAMS AND SERVICES EXEMPLIFY THE COVENANT COMMITMENT TO PROVIDING EXTRAORDINARY CARE FOR EVERY GENERATION.AS A MEDICAL FACILITY WITH 643 ACUTE CARE LICENSED BEDS, AND A COMPLETE RANGE OF MEDICAL SERVICES, COVENANT HEALTHCARE STANDS READY TO MEET THE HEALTH CARE NEEDS OF EAST CENTRAL MICHIGAN. WITH MORE THAN 20 INPATIENT AND OUTPATIENT FACILITIES AND A TRAUMA/EMERGENCY DEPARTMENT THAT PROVIDES OVER 90,000 VISITS PER YEAR, COVENANT HEALTHCARE OFFERS CONVENIENCE AND EASY ACCESS TO HIGH QUALITY CARE THROUGHOUT THE REGION. PART VI, LINE 7, REPORTS FILED WITH STATES MI X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 EDWARD BRUFF PRESIDENT/CEO 845684 0 168566 0 0 0 541959 0 27211 0 1583420 0 0 0 GINNY LATTY VICE PRESIDENT 271891 0 38062 0 0 0 0 0 11752 0 321705 0 0 0 DANIEL GEORGE VICE PRESIDENT 427185 0 82561 0 243425 0 137489 0 10875 0 901535 0 0 0 BETH CHARLTON VICE PRESIDENT 248739 0 51254 0 0 0 119939 0 27698 0 447630 0 0 0 KEVIN ALBOSTA VICE PRESIDENT 381764 0 77978 0 0 0 305437 0 26990 0 792169 0 0 0 KEVIN BIRCHMEIER VICE PRESIDENT 256316 0 52519 0 0 0 25154 0 29090 0 363079 0 0 0 DR IRIS MARTEJA VICE PRESIDENT 355167 0 50175 0 0 0 0 0 0 0 405342 0 0 0 DAVID NALL VICE PRESIDENT 211278 0 43071 0 0 0 67383 0 26199 0 347931 0 0 0 DR MICHAEL SCHULTZ VICE PRESIDENT 90294 0 3399 0 79529 0 0 0 0 0 173222 0 0 0 DR JOHN KOSANOVICH VICE PRESIDENT 124515 0 219 0 87270 0 0 0 1004 0 213008 0 0 0 DR MICHAEL SULLIVAN VICE PRESIDENT 373813 0 77952 0 0 0 0 0 22958 0 474723 0 0 0 ASAD MEHBOOB PHYSICIAN 844457 0 141300 0 0 0 0 0 0 0 985757 0 0 0 BINU MALHOTRA PHYSICIAN 550292 0 339885 0 0 0 0 0 0 0 890177 0 0 0 COLLEEN LINEHAN PHYSICIAN 684670 0 136026 0 0 0 0 0 0 0 820696 0 0 0 FRANK SCHINCO PHYSICIAN 815926 0 0 0 0 0 0 0 0 0 815926 0 0 0 JAMES FUGAZZI PHYSICIAN 548940 0 237995 0 0 0 0 0 0 0 786935 0 0 0 TIM WENZEL FORMER VICE PRESIDENT 46990 0 123 0 65666 0 0 0 0 0 112779 0 0 0 PART I, LINE 1A OFFICERS OF COVENANT MEDICAL CENTER GET HEALTH AND SOCIAL CLUB DUES PAID AND ARE INCLUDED AS TAXABLE INCOME. PART I, LINE 4B THE ORGANIZATION MAINTAINS A NONQUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) FOR CERTAIN EXECUTIVES. THE SERP HAS BEEN ESTABLISHED FOR THESE EXECUTIVES BY THE ORGANIZATION, FOLLOWING APPROPRIATE BOARD LEVEL REVIEW IN A MANNER INTENDED TO COMPLY WITH THE REBUTTABLE PRESUMPTION OF REASONABLENESS PROVISION UNDER IRC SECTION 4958. SOME OF THE INDIVIDUALS LISTED IN PART VII RECEIVED A TAXABLE SERP PAYMENT IN FY19. ALL PAYMENTS WERE INCLUDED AS TAXABLE INCOME. PART I, LINE 7 THE BONUSES PAID TO ANY OFFICER LISTED IN SCHEDULE J PART II CAN BE DETERMINED BASED ON WHETHER FOUR ORGANIZATION SUCCESS SHARING TARGETS ARE MET; PATIENT SATISFACTION SCORES, QUALITY METRICS, EMPLOYEE ENGAGEMENT SCORES AND FINANCIAL PERFORMACE BASED ON A CUSTOM OPERATING MARGIN. A CITY OF SAGINAW HOSP FIN AUTH (A) 386004647 786744HJ4 2010-10-28 76448883 RETIRE 7/7/99 AND 7/12/00 BONDS 0 0 0 B CITY OF SAGINAW HOSP FIN AUTH (B) 386004647 2014-04-25 31505000 RETIRE 4/7/2004 BONDS AND NEW CONS 0 0 0 A 18660000 76458097 423626 76034471 2010 1 0 1 1 B 11535000 31506478 203513 10476465 20826500 2014 1 0 1 1 B 0 0 0 0 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 A 1 B 1 DATE REBATE COMPUTATION PERFORMED ISSUER NAME: CITY OF SAGINAW HOSP FIN AUTH (A) DATE THE REBATE COMPUTATION WAS PERFORMED: 05/10/2017 ISSUER NAME: CITY OF SAGINAW HOSP FIN AUTH (B) DATE THE REBATE COMPUTATION WAS PERFORMED: 01/06/2020 PART II LINE 3 - COLUMN A BOND 2010 $76,458,097 - INCLUDES SALE PROCEEDS OF $76,448,883 PLUS ESCROW ACCOUNT EARNINGS OF $9,214 PART II LINE 3 - COLUMN B BOND 2014 $31,506,478 - INCLUDES SALE PROCEEDS OF $31,505,000 PLUS THE DEBT SERVICE RESERVE FUND EARNINGS OF $1,478 DR JAMIE ROSS FAMILY OF BOARD MEMBER 319636 REPORTABLE COMPENSATIONFEES FOR ALL SERVICES ARE AT ARM'S LENGTH MARKET RATES AND ARE CONTRACTED IN ACCORDANCE WITH THE HOSPITAL'S CONFLICT OF INTEREST POLICY. 0 DR T DAMUTH FAMILY OF BOARD MEMBER 215033 REPORTABLE COMPENSATIONFEES FOR ALL SERVICES ARE AT ARM'S LENGTH MARKET RATES AND ARE CONTRACTED IN ACCORDANCE WITH THE HOSPITAL'S CONFLICT OF INTEREST POLICY. 0 FORM 990, SCHEDULE L, PART IV, COLUMN C FEES FOR ALL SERVICES ARE AT ARM'S LENGTH MARKET RATES AND ARE CONTRACTED IN ACCORDANCE WITH THE HOSPITAL'S CONFLICT OF INTEREST POLICY. X EQUIP (SUPPORT ORG) 1 872917 FMV 0 1 0 PART I, COLUMN (B): NUMBER OF ITEMS FORM 990, PART VI, SECTION A, LINE 6 COVENANT HEALTHCARE SYSTEM IS THE SOLE CORPORATE MEMER OF COVENANT MEDICAL CENTER INC. FORM 990, PART VI, SECTION A, LINE 7A THE SOLE CORPORATE MEMBER MAY ELECT ONE OR MORE PERSONS OF THE GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B THE FOLLOWING ACTIONS MAY BE TAKEN BY THIS CORPORATION AND ITS BOARD OF DIRECTORS ONLY UPON PRIOR WRITTEN APPROVAL OF THE CORPORATE MEMBER: A. ADOPTION, AMENDMENT OR OTHER MODIFICATION OF THE BYLAWS OR ARTICLES OF INCORPORATION OF THIS CORPORATION. B. ANY MERGER, CONSOLIDATION, REORGANIZATION, OR OTHER CHANGE IN THE CORPORATE STRUCTURE OF THIS CORPORATION OR THE CREATION OF ANY CORPORATE SUBSIDIARY THEREOF. C. THE PARTICIPATION OF THE CORPORATION IN ANY PARTNERSHIP, LIMITED PARTNERSHIP, CORPORATION, ASSOCIATION OR OTHER FORM OF JOINT VENTURE OR SHARED SERVICE WITH ANY OTHER PARTY OR ORGANIZATION. D. CREATION, INCURRENCE OR ASSUMPTION OF INDEBTEDNESS, COMMITMENTS, OR ANY CONTRACTUAL OBLIGATIONS WITH RESPECT TO BORROWED MONEY, GUARANTEES, ENDORSEMENTS, LEASES OR OTHER TYPE OF DIRECT CONTINGENT LIABILITIES, IN EXCESS OF $50,000 FOR ANY ONE ITEM. E. CREATION, INCURRENCE OR ASSUMPTION OF ANY MORTGAGE, PLEDGE, SECURITY ENCUMBRANCE, OR OTHER LIEN OF ANY KIND IN ANY PROPERTY OF ASSETS OF THIS CORPORATION. F. ACQUISITION, BY PURCHASE, LEASE, OR ANY OTHER METHOD, OF ANY REAL ESTATE, CAPITAL IMPROVEMENTS, OR EQUIPMENT IN EXCESS OF A VALUE OF $50,000 FOR ANY ONE SUCH ITEM. G. ANY CONTRIBUTIONS OF ENDOWMENT PRINCIPAL. H. ANY CONTRIBUTIONS OR EARNED INCOME, EXCLUSIVE OF CONTRIBUTIONS, IN EXCESS OF FIVE (5%) PERCENT OF SUCH INCOME IN ANY FISCAL YEAR, TO ANY ORGANIZATION OR FOR ANY PURPOSE OTHER THAN COVENANT HEALTHCARE SYSTEM OR THE CORPORATE MEMBER. I. ANY CHANGE IN SERVICES OR PROGRAMS OF THE CORPORATION, INCLUDING THE TERMINATION OF EXISTING SERVICES, THE ADDITION OF NEW SERVICES, OR ANY MAJOR EXPANSION OR CONTRACTION OF EXISTING SERVICES OR PROGRAMS. J. ADOPTION, OR FORMAL AMENDMENT OR MODIFICATION OF THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE CORPORATION. K. ADOPTION, AMENDMENT, OR MODIFICATION OF THE MISSION AND GOALS OF THE CORPORATION, AND ITS LONG RANGE OR SHORT RANGE STRATEGIC PLANS. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT PRESENTS AND REVIEWS THE 990 WITH THE BOARD FOR ITS APPROVAL PRIOR TO FILING. THE BOARD IS PROVIDED FINAL COPIES FOR REVIEW VIA THE INTERNET. ONCE APPROVED BY THE BOARD, THE FINAL 990 IS ULTIMATELY FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH ITS CONFLICT OF INTEREST DISCLOSURE STATEMENT TO ITS OFFICERS, DIRECTORS, TRUSTEES, AND KEY EMPLOYEES. EACH PERSON COVERED BY THE POLICY IS REQUIRED TO SUBMIT AND AFFIRM IN WRITING TO THE CHIEF EXECUTIVE OFFICER AN ANNUAL CONFLICT OF INTEREST DISCLOSURE STATEMENT LISTING ALL FINANCIAL INTERESTS, FAMILY AND BUSINESS RELATIONSHIPS, AND POTENTIAL CONFLICTS OF INTEREST AND PROVIDE UPDATES TO THIS AS NECESSARY. IN ADDITION, SUCH PERSONS HAVE AN OBLIGATION TO DISCLOSE THE EXISTENCE OF ANY FINANCIAL INTEREST AND ALL MATERIAL FACTS TO THE BOARD AND MEMBERS OF THE COMMITTEES WITH BOARD DELEGATED POWERS. POTENTIAL CONFLICTS THAT ARE IDENTIFIED ARE BROUGHT TO THE ATTENTION OF THE CHAIRMAN AND VICE CHAIRMAN OF THE BOARD. THE CHAIRMAN OF THE BOARD IS REQUIRED TO BE AWARE OF SUCH POTENTIAL CONFLICTS SO AS TO BE ABLE TO DETERMINE THE PROPER COURSE OF ACTION SHOULD A MATTER INVOLVING SUCH SITUATION ARISE THAT WOULD REQUIRE ACTION. AFTER DISCLOSURE OF A POTENTIAL CONFLICT TO THE BOARD OR COMMITTEE, SUCH PERSON IS EXCUSED AND ALL OTHER REMAINING BOARD OR COMMITTEE MEMBERS MAKE A DETERMINATION OF WHETHER A CONFLICT EXISTS. ANY PERSON WITH A POTENTIAL CONFLICT CAN MAKE A PRESENTATION TO THE BOARD OR COMMITTEE ON THE PROPOSED TRANSACTION, BUT MUST RECUSE HIMSELF FROM DELIBERATION AND VOTING ON THE PROPOSED TRANSACTION OR ARRANGEMENT. THE BOARD OR COMMITTEE SHALL EXPLORE WHETHER A MORE ADVANTAGEOUS TRANSACTION OR AGREEMENT WITH REASONABLE EFFORTS CAN BE ENTERED INTO WITH A PERSON OR ENTITY THAT DOES NOT HAVE A CONLIFCT OF INTEREST. IF NO REASONABLE ALTERNATIVE EXISTS, THE BOARD OR COMMITTEE SHALL DECIDE WHETHER SUCH TRANSACTION IS IN THE BEST INTERESTS OF THE ORGANIZATION AND IS FAIR AND REASONABLE BEFORE MAKING ITS DECISION ON WHETHER OR NOT TO ENTER INTO THE TRANSACTION. IF THE BOARD HAS REASONABLE CAUSE TO BELIEVE THAT AN OFFICER, DIRECTOR, KEY EMPLOYEE, OR TRUSTEE FAILED TO DISCLOSE ACTUAL OR POSSIBLE CONFLICTS OF INTERESTS, IT SHALL INFORM THE OFFICER, DIRECTOR, TRUSTEE OR KEY EMPLOYEE OF THE BASIS FOR SUCH BELIEF AND AFFORD SAID PERSON AN OPPORTUNITY TO EXPLAIN THE ALLEGED FAILURE TO DISCLOSE. CORRECTIVE ACTION WILL BE TAKEN IF IT IS DETERMINED THAT A CONLFICT THAT WAS NOT DISCLOSED DOES EXIST. FORM 990, PART VI, SECTION B, LINE 15 EXECUTIVE SALARY RANGES ARE ESTABLISHED THROUGH IN DEPTH EXTERNAL MARKET STUDIES AND APPROVED BY THE COMPENSATION COMMITTEE. THE COMPENSATION COMMITTEE OF THE BOARD OF DIRECTORS REVIEWS AND APPROVES COMPENSATION CHANGES FOR VICE PRESIDENTS, AS RECOMMENDED BY THE CEO. THE COMPENSATION COMMITTEE RECOMMENDS ANNUALLY TO THE BOARD OF DIRECTORS A PERFORMANCE RATING AND COMPENSATION CHANGES FOR THE CEO. THE BOARD OF DIRECTORS ACTS ON ALL RECOMMENDATIONS FROM THE COMPENSATION COMMITTEE. THIS PROCESS IS CONDUCTED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS ORGANIZING DOCUMENTS, CONFLICT OF INTEREST POLICIES AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: MINIMUM PENSION LIABILITY ADJUSTMENT -17,810,084. OPEB -1,997,115. TRANSFER IN FROM VNA 4,758,285. 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