PRIORITY HEALTH: Form 990, tax year 2017

View the entire original 990 at ProPublica ↗

Organization: PRIORITY HEALTH (EIN 38-2715520)
Tax period: 2017-01-01 to 2017-12-31
Filed: 2018-10-25
IRS object ID: 201842989349301019
Schema version: 2017v2.2
Source: Download XML · Original 990 at ProPublica

Every field in the e-filed return. Faint text is the IRS element name, for citing.

Return header
Form 990
Schedule D
Schedule J
Schedule L
Schedule O
Schedule R

Return header ReturnHeader

Field	Value	IRS element (for citing)
Return	2018-10-25T11:00:24-05:00	ReturnTs
Tax Period End	2017-12-31	TaxPeriodEndDt

Preparer Firm PreparerFirmGrp

Field	Value	IRS element (for citing)
Preparer Firm EIN	350921680	PreparerFirmEIN

Preparer Firm Name PreparerFirmName

Field	Value	IRS element (for citing)
Business Name Line1	CROWE LLP	BusinessNameLine1Txt

Preparer US Address PreparerUSAddress

Field	Value	IRS element (for citing)
Address Line1	9600 Brownsboro Road Suite 400	AddressLine1Txt
City	Louisville	CityNm
State Abbreviation	KY	StateAbbreviationCd
ZIP	402411122	ZIPCd

Field	Value	IRS element (for citing)
Return Type	990	ReturnTypeCd
Tax Period Begin	2017-01-01	TaxPeriodBeginDt

Filer Filer

Field	Value	IRS element (for citing)
EIN	382715520	EIN

Business Name BusinessName

Field	Value	IRS element (for citing)
Business Name Line1	Priority Health	BusinessNameLine1Txt

Field	Value	IRS element (for citing)
Business Name Control	PRIO	BusinessNameControlTxt
Phone	6167745083	PhoneNum

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1231 East Beltline NE	AddressLine1Txt
City	Grand Rapids	CityNm
State Abbreviation	MI	StateAbbreviationCd
ZIP	49525	ZIPCd

Business Officer BusinessOfficerGrp

Field	Value	IRS element (for citing)
Person	Mary Anne Jones	PersonNm
Person Title	SVP, Finance	PersonTitleTxt
Signature	2018-10-25	SignatureDt
Discuss With Paid Preparer	Yes (true)	DiscussWithPaidPreparerInd

Preparer Person PreparerPersonGrp

Field	Value	IRS element (for citing)
Preparer Person	Rachel Spurlock	PreparerPersonNm
PTIN	P00520729	PTIN
Phone	5023263996	PhoneNum

Field	Value	IRS element (for citing)
Tax	2017	TaxYr
Build TS	2018-06-14 16:35:46Z	BuildTS

Form 990 IRS990

Principal Ofcr Business Name PrincipalOfcrBusinessName

Field	Value	IRS element (for citing)
Business Name Line1	Joan A Budden	BusinessNameLine1Txt

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1231 East Beltline NE	AddressLine1Txt
City	Grand Rapids	CityNm
State Abbreviation	MI	StateAbbreviationCd
ZIP	49525	ZIPCd

Field	Value	IRS element (for citing)
Gross Receipts	$5,399,197,604	GrossReceiptsAmt
Group Return For Affiliates	false	GroupReturnForAffiliatesInd
Organization501c	Yes (X)	Organization501cInd
Website Address	www.priorityhealth.com	WebsiteAddressTxt
Type Of Organization Corp	Yes (X)	TypeOfOrganizationCorpInd
Formation	1986	FormationYr
Legal Domicile State	MI	LegalDomicileStateCd
Activity Or Mission	To improve the health, and therefore the lives, of the members and communities we serve.	ActivityOrMissionDesc
Voting Members Governing Body	17	VotingMembersGoverningBodyCnt
Voting Members Independent	12	VotingMembersIndependentCnt
Total Employee	0	TotalEmployeeCnt
Total Volunteers	0	TotalVolunteersCnt
Total Gross UBI	$116,360	TotalGrossUBIAmt
Net Unrelated Bus Txbl Incm	$115,360	NetUnrelatedBusTxblIncmAmt
PY Contributions Grants	$0	PYContributionsGrantsAmt
CY Contributions Grants	$0	CYContributionsGrantsAmt
PY Program Service Revenue	$2,663,150,100	PYProgramServiceRevenueAmt
CY Program Service Revenue	$3,015,076,097	CYProgramServiceRevenueAmt
PY Investment Income	$18,871,484	PYInvestmentIncomeAmt
CY Investment Income	$18,945,273	CYInvestmentIncomeAmt
PY Other Revenue	$889,522	PYOtherRevenueAmt
CY Other Revenue	$1,392,982	CYOtherRevenueAmt
PY Total Revenue	$2,682,911,106	PYTotalRevenueAmt
CY Total Revenue	$3,035,414,352	CYTotalRevenueAmt
PY Grants And Similar Paid	$0	PYGrantsAndSimilarPaidAmt
CY Grants And Similar Paid	$0	CYGrantsAndSimilarPaidAmt
PY Benefits Paid To Members	$2,335,150,337	PYBenefitsPaidToMembersAmt
CY Benefits Paid To Members	$2,645,791,374	CYBenefitsPaidToMembersAmt
PY Salaries Comp Emp Bnft Paid	$142,085,172	PYSalariesCompEmpBnftPaidAmt
CY Salaries Comp Emp Bnft Paid	$154,901,046	CYSalariesCompEmpBnftPaidAmt
PY Total Prof Fndrsng Expns	$0	PYTotalProfFndrsngExpnsAmt
CY Total Prof Fndrsng Expns	$0	CYTotalProfFndrsngExpnsAmt
CY Total Fundraising Expense	$0	CYTotalFundraisingExpenseAmt
PY Other Expenses	$154,525,964	PYOtherExpensesAmt
CY Other Expenses	$155,334,723	CYOtherExpensesAmt
PY Total Expenses	$2,631,761,473	PYTotalExpensesAmt
CY Total Expenses	$2,956,027,143	CYTotalExpensesAmt
PY Revenues Less Expenses	$51,149,633	PYRevenuesLessExpensesAmt
CY Revenues Less Expenses	$79,387,209	CYRevenuesLessExpensesAmt
Total Assets BOY	$1,024,534,162	TotalAssetsBOYAmt
Total Assets EOY	$1,189,975,844	TotalAssetsEOYAmt
Total Liabilities BOY	$450,477,884	TotalLiabilitiesBOYAmt
Total Liabilities EOY	$520,718,683	TotalLiabilitiesEOYAmt
Net Assets Or Fund Balances BOY	$574,056,278	NetAssetsOrFundBalancesBOYAmt
Net Assets Or Fund Balances EOY	$669,257,161	NetAssetsOrFundBalancesEOYAmt
Mission	To improve the health, and therefore the lives, of the members and communities we serve.	MissionDesc
Significant New Program Srvc	false	SignificantNewProgramSrvcInd
Significant Change	false	SignificantChangeInd
Expense	$1,661,052,411	ExpenseAmt
Revenue	$1,759,818,200	RevenueAmt
Desc	PRIORITY HEALTH HMO: SEE SCHEDULE O	Desc

Prog Srvc Accom Acty2 ProgSrvcAccomActy2Grp

Field	Value	IRS element (for citing)
Expense	$1,168,927,828	ExpenseAmt
Revenue	$1,254,181,010	RevenueAmt
Desc	PRIORITY HEALTH SENIOR MARKETS (MEDICARE ADVANTAGE AND MEDICARE SUPPLEMENT): SEE SCHEDULE O	Desc

Prog Srvc Accom Acty3 ProgSrvcAccomActy3Grp

Field	Value	IRS element (for citing)
Expense	$2,405,890	ExpenseAmt
Revenue	$1,721,771	RevenueAmt
Desc	PRIORITY HEALTH WELLNESS: SEE SCHEDULE O	Desc

Field	Value	IRS element (for citing)
Total Program Service Expenses	$2,832,386,129	TotalProgramServiceExpensesAmt
Described In Section501c3	false	DescribedInSection501c3Ind
Schedule B Required	false	ScheduleBRequiredInd
Political Campaign Acty	false	PoliticalCampaignActyInd
Subject To Proxy Tax	false	SubjectToProxyTaxInd
Donor Advised Fund	false	DonorAdvisedFundInd
Conservation Easements	false	ConservationEasementsInd
Collections Of Art	false	CollectionsOfArtInd
Credit Counseling	false	CreditCounselingInd
Temp Or Permanent Endowments	false	TempOrPermanentEndowmentsInd
Report Land Building Equipment	Yes (true)	ReportLandBuildingEquipmentInd
Report Investments Other Sec	false	ReportInvestmentsOtherSecInd
Report Program Related Invst	Yes (true)	ReportProgramRelatedInvstInd
Report Other Assets	false	ReportOtherAssetsInd
Report Other Liabilities	Yes (true)	ReportOtherLiabilitiesInd
Include FIN48 Footnote	false	IncludeFIN48FootnoteInd
Independent Audit Fincl Stmt	false	IndependentAuditFinclStmtInd
Consolidated Audit Fincl Stmt	Yes (true)	ConsolidatedAuditFinclStmtInd
School Operating	false	SchoolOperatingInd
Foreign Office	false	ForeignOfficeInd
Foreign Activities	false	ForeignActivitiesInd
More Than5000 K To Org	false	MoreThan5000KToOrgInd
More Than5000 K To Individuals	false	MoreThan5000KToIndividualsInd
Professional Fundraising	false	ProfessionalFundraisingInd
Fundraising Activities	false	FundraisingActivitiesInd
Gaming Activities	false	GamingActivitiesInd
Operate Hospital	false	OperateHospitalInd
Grants To Organizations	false	GrantsToOrganizationsInd
Grants To Individuals	false	GrantsToIndividualsInd
Schedule J Required	Yes (true)	ScheduleJRequiredInd
Tax Exempt Bonds	false	TaxExemptBondsInd
Engaged In Excess Benefit Trans	false	EngagedInExcessBenefitTransInd
PY Excess Benefit Trans	false	PYExcessBenefitTransInd
Loan Outstanding	Yes (true)	LoanOutstandingInd
Grant To Related Person	false	GrantToRelatedPersonInd
Business Rln With Org Mem	false	BusinessRlnWithOrgMemInd
Business Rln With Fam Mem	Yes (true)	BusinessRlnWithFamMemInd
Business Rln With Officer Ent	false	BusinessRlnWithOfficerEntInd
Deductible Non Cash Contri	false	DeductibleNonCashContriInd
Deductible Art Contribution	false	DeductibleArtContributionInd
Terminate Operations	false	TerminateOperationsInd
Partial Liquidation	false	PartialLiquidationInd
Disregarded Entity	Yes (true)	DisregardedEntityInd
Related Entity	Yes (true)	RelatedEntityInd
Related Organization Ctrl Ent	Yes (true)	RelatedOrganizationCtrlEntInd
Transaction With Control Ent	Yes (true)	TransactionWithControlEntInd
Activities Conducted Prtshp	false	ActivitiesConductedPrtshpInd
Schedule O Required	Yes (true)	ScheduleORequiredInd
IRP Document	13705	IRPDocumentCnt
IRP Document W2 G	0	IRPDocumentW2GCnt
Backup Wthld Compliance	Yes (true)	BackupWthldComplianceInd
Employee	0	EmployeeCnt
Unrelated Bus Incm Over Limit	Yes (true)	UnrelatedBusIncmOverLimitInd
Form990 T Filed	Yes (true)	Form990TFiledInd
Foreign Financial Account	false	ForeignFinancialAccountInd
Prohibited Tax Shelter Trans	false	ProhibitedTaxShelterTransInd
Taxable Party Notification	false	TaxablePartyNotificationInd
Nondeductible Contributions	false	NondeductibleContributionsInd
Indoor Tanning Services	false	IndoorTanningServicesInd
Info In Schedule O Part VI	Yes (X)	InfoInScheduleOPartVIInd
Governing Body Voting Members	17	GoverningBodyVotingMembersCnt
Independent Voting Member	12	IndependentVotingMemberCnt
Family Or Business Rln	Yes (true)	FamilyOrBusinessRlnInd
Delegation Of Mgmt Duties	false	DelegationOfMgmtDutiesInd
Change To Org Documents	Yes (true)	ChangeToOrgDocumentsInd
Material Diversion Or Misuse	false	MaterialDiversionOrMisuseInd
Members Or Stockholders	Yes (true)	MembersOrStockholdersInd
Election Of Board Members	Yes (true)	ElectionOfBoardMembersInd
Decisions Subject To Approva	Yes (true)	DecisionsSubjectToApprovaInd
Minutes Of Governing Body	Yes (true)	MinutesOfGoverningBodyInd
Minutes Of Committees	Yes (true)	MinutesOfCommitteesInd
Officer Mailing Address	false	OfficerMailingAddressInd
Local Chapters	false	LocalChaptersInd
Form990 Provided To Gvrn Body	Yes (true)	Form990ProvidedToGvrnBodyInd
Conflict Of Interest Policy	Yes (true)	ConflictOfInterestPolicyInd
Annual Disclosure Covered Prsn	Yes (true)	AnnualDisclosureCoveredPrsnInd
Regular Monitoring Enfrc	Yes (true)	RegularMonitoringEnfrcInd
Whistleblower Policy	Yes (true)	WhistleblowerPolicyInd
Document Retention Policy	Yes (true)	DocumentRetentionPolicyInd
Compensation Process CEO	Yes (true)	CompensationProcessCEOInd
Compensation Process Other	Yes (true)	CompensationProcessOtherInd
Investment In Joint Venture	false	InvestmentInJointVentureInd
Upon Request	Yes (X)	UponRequestInd

Books In Care Of Detail BooksInCareOfDetail

Business Name BusinessName

Field	Value	IRS element (for citing)
Business Name Line1	Mary Anne Jones	BusinessNameLine1Txt

Field	Value	IRS element (for citing)
Phone	6164648695	PhoneNum

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1231 East Beltline NE	AddressLine1Txt
City	Grand Rapids	CityNm
State Abbreviation	MI	StateAbbreviationCd
ZIP	49525	ZIPCd

Form990 Part VII Section A Form990PartVIISectionAGrp (34 entries)

TitleTitleTxt	Average Hours Per WeekAverageHoursPerWeekRt	Average Hours Per Week Rltd OrgAverageHoursPerWeekRltdOrgRt	Individual Trustee Or DirectorIndividualTrusteeOrDirectorInd	OfficerOfficerInd	Reportable Comp From OrgReportableCompFromOrgAmt	Reportable Comp From Rltd OrgReportableCompFromRltdOrgAmt	Other CompensationOtherCompensationAmt	Key EmployeeKeyEmployeeInd	Highest Compensated EmployeeHighestCompensatedEmployeeInd	Former Ofcr Director TrusteeFormerOfcrDirectorTrusteeInd
JAMES STEPHANAK
CHAIR	1.0	1.0	Yes (X)	Yes (X)	$15,000	$15,000	$0
Joan A BUDDEN
PRESIDENT & CEO	36.0	14.0	Yes (X)	Yes (X)	$868,000	$300,916	$449,834
SAMUEL WANNER
DIRECTOR	1.0	1.0	Yes (X)		$10,500	$10,500	$0
Richard Breon
DIRECTOR	1.0	49.0	Yes (X)		$0	$3,078,965	$638,303
Christina Freese-Decker
Director	1.0	49.0	Yes (X)		$0	$1,325,518	$544,137
RAJESH KOTHARI
DIRECTOR	1.0	1.0	Yes (X)		$9,000	$9,000	$0
LYNN LIDDLE
DIRECTOR - PART YEAR	1.0	1.0	Yes (X)		$2,375	$2,375	$0
RODRICK MILLER
DIRECTOR	1.0	1.0	Yes (X)		$9,500	$9,500	$0
EDWIN NESS
DIRECTOR	1.0	1.0	Yes (X)		$8,000	$8,000	$0
PAUL SAGINAW
DIRECTOR	1.0	1.0	Yes (X)		$9,000	$9,000	$0
Hilary Snell
DIRECTOR	1.0	1.0	Yes (X)		$10,500	$10,500	$0
MICHAEL SYTSMA
DIRECTOR	1.0	1.0	Yes (X)		$10,500	$10,500	$0
GARY TIMMER
DIRECTOR	1.0	1.0	Yes (X)		$9,000	$9,000	$0
Bruce Ullery
DIRECTOR	1.0	1.0	Yes (X)		$10,000	$10,000	$0
Michael Vredenburg
DIRECTOR	1.0	49.0	Yes (X)		$9,500	$637,806	$55,037
WENDY WALKER MD
DIRECTOR	1.0	1.0	Yes (X)		$9,500	$9,500	$0
Seth Wolk MD
Director	1.0	49.0	Yes (X)		$0	$1,160,608	$459,631
ELAINE WOOD
DIRECTOR	1.0	1.0	Yes (X)		$10,000	$10,000	$0
Mary Anne Jones
Treasurer & SVP, Finance	36.0	14.0		Yes (X)	$492,107	$170,602	$206,914
KIMBERLY L THOMAS
SECRETARY	37.0	13.0		Yes (X)	$412,594	$143,037	$168,681
CHRISTOPHER CROOK
SVP, Information Services	37.0	13.0			$215,255	$74,624	$48,045	Yes (X)
JAMES FORSHEE
SVP, CHIEF MEDICAL OFFICER	37.0	13.0			$361,432	$125,301	$133,665	Yes (X)
MICHAEL KOZIARA
SVP, PROVIDER NETWORK	37.0	13.0			$433,626	$150,329	$170,568	Yes (X)
BRIAN KRUPICZEWICZ
SVP, HUMAN RESOURCES	37.0	13.0			$231,015	$80,088	$108,809	Yes (X)
MARTI LOLLI
SVP, CONS/GOVT MKT & CMO	37.0	13.0			$326,255	$113,105	$181,138	Yes (X)
WAYNE WILSON
SVP, GOVERNMENT MARKETS - PART YEAR	37.0	13.0			$344,156	$119,311	$115,912	Yes (X)
KRISCHA WINRIGHT
SVP, Chief Marketing/Digital Officer - Part Year	26.0	24.0			$155,792	$135,626	$159,855	Yes (X)
JIANHUA YU
SVP, ADVANCED ANALYTICS/CHIEF ACTUARY	37.0	13.0			$426,032	$147,695	$161,894		Yes (X)
JOHN L FOX
VP, Assoc Chief Medical Officer	37.0	13.0			$371,637	$128,838	$85,256		Yes (X)
EUGENE CRONIN
VP, NEW GOVERNMENT MARKETS	37.0	13.0			$321,060	$111,304	$76,934		Yes (X)
INES VIGIL
VP, ADVANCED ANALYTICS	37.0	13.0			$294,832	$102,211	$62,435		Yes (X)
Gregory Gadbois MD
MEDICAL DIRECTOR	37.0	13.0			$261,121	$90,525	$43,360		Yes (X)
JAY LABINE
Former SVP, Chief Medical Officer	0.0	50.0			$0	$584,309	$175,735			Yes (X)
PAMELA RIES
Former VP, System Total Value	0.0	50.0			$0	$653,164	$269,094			Yes (X)

Field	Value	IRS element (for citing)
Total Reportable Comp From Org	$5,647,289	TotalReportableCompFromOrgAmt
Tot Reportable Comp Rltd Org	$9,556,757	TotReportableCompRltdOrgAmt
Total Other Compensation	$4,315,237	TotalOtherCompensationAmt
Indiv Rcvd Greater Than100 K	0	IndivRcvdGreaterThan100KCnt
Former Ofcr Employees Listed	Yes (true)	FormerOfcrEmployeesListedInd
Total Comp Greater Than150 K	Yes (true)	TotalCompGreaterThan150KInd
Compensation From Other Srcs	false	CompensationFromOtherSrcsInd

Contractor Compensation ContractorCompensationGrp (5 entries)

Address Line1ContractorAddress/USAddress/AddressLine1Txt	CityContractorAddress/USAddress/CityNm	State AbbreviationContractorAddress/USAddress/StateAbbreviationCd	ZIPContractorAddress/USAddress/ZIPCd	ServicesServicesDesc	CompensationCompensationAmt
Express Scripts
1 Express Way	St Louis	MO	63121	CLAIMS SERVICES	$577,229,340
REGENTS OF UNIVERSITY OF MICHIGAN
1500 EAST MEDICAL CENTER DRIVE	ANN ARBOR	MI	48109	CLAIMS SERVICES	$94,135,228
SAINT MARYS HEALTH SERVICES
200 JEFFERSON STREET SE	GRAND RAPIDS	MI	49503	CLAIMS SERVICES	$81,742,196
MUNSON MEDICAL CENTER
1105 6TH STREET	TRAVERSE CITY	MI	49684	CLAIMS SERVICES	$76,778,048
Mercy Health Partners
5900 Byron Center Ave SW	Wyoming	MI	49519	Claims Services	$61,639,739

Field	Value	IRS element (for citing)
Cntrct Rcvd Greater Than100 K	1316	CntrctRcvdGreaterThan100KCnt
Total Contributions	$0	TotalContributionsAmt

Program Service Revenue ProgramServiceRevenueGrp (3 entries)

DescDesc	BusinessBusinessCd	Total Revenue ColumnTotalRevenueColumnAmt	Related Or Exempt Func IncomeRelatedOrExemptFuncIncomeAmt
Priority Health HMO	524114	$1,759,441,880	$1,759,441,880
PRIORITY HEALTH SENIOR MARKETS	524114	$1,253,912,815	$1,253,912,815
PRIORITY HEALTH WELLNESS	900099	$1,721,402	$1,721,402

Total Oth Program Service Rev TotalOthProgramServiceRevGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$0	TotalRevenueColumnAmt
Related Or Exempt Func Income	$0	RelatedOrExemptFuncIncomeAmt
Unrelated Business Revenue	$0	UnrelatedBusinessRevenueAmt
Exclusion	$0	ExclusionAmt

Field	Value	IRS element (for citing)
Total Program Service Revenue	$3,015,076,097	TotalProgramServiceRevenueAmt

Investment Income InvestmentIncomeGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$18,715,542	TotalRevenueColumnAmt
Exclusion	$18,715,542	ExclusionAmt

Gross Rents GrossRentsGrp

Field	Value	IRS element (for citing)
Real	$3,758,328	RealAmt
Personal	$77,268	PersonalAmt

Less Rental Expenses LessRentalExpensesGrp

Field	Value	IRS element (for citing)
Real	$3,073,768	RealAmt
Personal	$77,268	PersonalAmt

Rental Income Or Loss RentalIncomeOrLossGrp

Field	Value	IRS element (for citing)
Real	$684,560	RealAmt
Personal	$0	PersonalAmt

Net Rental Income Or Loss NetRentalIncomeOrLossGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$684,560	TotalRevenueColumnAmt
Unrelated Business Revenue	$116,360	UnrelatedBusinessRevenueAmt
Exclusion	$568,200	ExclusionAmt

Gross Amount Sales Assets GrossAmountSalesAssetsGrp

Field	Value	IRS element (for citing)
Securities	$2,360,861,947	SecuritiesAmt
Other	$0	OtherAmt

Less Cost Oth Basis Sales Expnss LessCostOthBasisSalesExpnssGrp

Field	Value	IRS element (for citing)
Securities	$2,360,568,677	SecuritiesAmt
Other	$63,539	OtherAmt

Gain Or Loss GainOrLossGrp

Field	Value	IRS element (for citing)
Securities	$293,270	SecuritiesAmt
Other	-$63,539	OtherAmt

Net Gain Or Loss Investments NetGainOrLossInvestmentsGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$229,731	TotalRevenueColumnAmt
Related Or Exempt Func Income	-$63,539	RelatedOrExemptFuncIncomeAmt
Exclusion	$293,270	ExclusionAmt

Other Revenue Misc OtherRevenueMiscGrp

Field	Value	IRS element (for citing)
Desc	Management Fee Revenue	Desc
Business	900099	BusinessCd
Total Revenue Column	$708,422	TotalRevenueColumnAmt
Related Or Exempt Func Income	$708,422	RelatedOrExemptFuncIncomeAmt

Miscellaneous Revenue MiscellaneousRevenueGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$0	TotalRevenueColumnAmt
Related Or Exempt Func Income	$0	RelatedOrExemptFuncIncomeAmt
Unrelated Business Revenue	$0	UnrelatedBusinessRevenueAmt
Exclusion	$0	ExclusionAmt

Field	Value	IRS element (for citing)
Other Revenue Total	$708,422	OtherRevenueTotalAmt

Total Revenue TotalRevenueGrp

Field	Value	IRS element (for citing)
Total Revenue Column	$3,035,414,352	TotalRevenueColumnAmt
Related Or Exempt Func Income	$3,015,720,980	RelatedOrExemptFuncIncomeAmt
Unrelated Business Revenue	$116,360	UnrelatedBusinessRevenueAmt
Exclusion	$19,577,012	ExclusionAmt

Benefits To Members BenefitsToMembersGrp

Field	Value	IRS element (for citing)
Total	$2,645,791,374	TotalAmt
Program Services	$2,645,791,374	ProgramServicesAmt

Comp Current Ofcr Directors CompCurrentOfcrDirectorsGrp

Field	Value	IRS element (for citing)
Total	$5,233,939	TotalAmt
Program Services	$2,878,666	ProgramServicesAmt
Management And General	$2,355,273	ManagementAndGeneralAmt

Comp Disqual Persons CompDisqualPersonsGrp

Field	Value	IRS element (for citing)
Total	$229,636	TotalAmt
Program Services	$126,300	ProgramServicesAmt
Management And General	$103,336	ManagementAndGeneralAmt

Other Salaries And Wages OtherSalariesAndWagesGrp

Field	Value	IRS element (for citing)
Total	$117,229,365	TotalAmt
Program Services	$64,476,151	ProgramServicesAmt
Management And General	$52,753,214	ManagementAndGeneralAmt

Other Employee Benefits OtherEmployeeBenefitsGrp

Field	Value	IRS element (for citing)
Total	$18,715,706	TotalAmt
Program Services	$10,293,638	ProgramServicesAmt
Management And General	$8,422,068	ManagementAndGeneralAmt

Payroll Taxes PayrollTaxesGrp

Field	Value	IRS element (for citing)
Total	$13,492,400	TotalAmt
Program Services	$7,420,820	ProgramServicesAmt
Management And General	$6,071,580	ManagementAndGeneralAmt

Fees For Services Legal FeesForServicesLegalGrp

Field	Value	IRS element (for citing)
Total	$72,476	TotalAmt
Management And General	$72,476	ManagementAndGeneralAmt

Fees For Services Accounting FeesForServicesAccountingGrp

Field	Value	IRS element (for citing)
Total	$66,654	TotalAmt
Management And General	$66,654	ManagementAndGeneralAmt

Fees For Services Lobbying FeesForServicesLobbyingGrp

Field	Value	IRS element (for citing)
Total	$36,745	TotalAmt
Program Services	$36,745	ProgramServicesAmt

Fees For Srvc Invst Mgmnt Fees FeesForSrvcInvstMgmntFeesGrp

Field	Value	IRS element (for citing)
Total	$1,067,032	TotalAmt
Management And General	$1,067,032	ManagementAndGeneralAmt

Fees For Services Other FeesForServicesOtherGrp

Field	Value	IRS element (for citing)
Total	$27,265,005	TotalAmt
Program Services	$14,995,754	ProgramServicesAmt
Management And General	$12,269,251	ManagementAndGeneralAmt
Fundraising	$0	FundraisingAmt

Advertising AdvertisingGrp

Field	Value	IRS element (for citing)
Total	$9,361,646	TotalAmt
Program Services	$5,148,905	ProgramServicesAmt
Management And General	$4,212,741	ManagementAndGeneralAmt

Office Expenses OfficeExpensesGrp

Field	Value	IRS element (for citing)
Total	$5,775,960	TotalAmt
Program Services	$3,176,778	ProgramServicesAmt
Management And General	$2,599,182	ManagementAndGeneralAmt

Information Technology InformationTechnologyGrp

Field	Value	IRS element (for citing)
Total	$811,012	TotalAmt
Program Services	$446,057	ProgramServicesAmt
Management And General	$364,955	ManagementAndGeneralAmt

Occupancy OccupancyGrp

Field	Value	IRS element (for citing)
Total	$5,674,758	TotalAmt
Program Services	$3,121,117	ProgramServicesAmt
Management And General	$2,553,641	ManagementAndGeneralAmt

Travel TravelGrp

Field	Value	IRS element (for citing)
Total	$738,451	TotalAmt
Program Services	$406,148	ProgramServicesAmt
Management And General	$332,303	ManagementAndGeneralAmt

Conferences Meetings ConferencesMeetingsGrp

Field	Value	IRS element (for citing)
Total	$207,764	TotalAmt
Program Services	$114,270	ProgramServicesAmt
Management And General	$93,494	ManagementAndGeneralAmt

Interest InterestGrp

Field	Value	IRS element (for citing)
Total	$1,891,824	TotalAmt
Program Services	$1,891,824	ProgramServicesAmt

Depreciation Depletion DepreciationDepletionGrp

Field	Value	IRS element (for citing)
Total	$987,591	TotalAmt
Program Services	$543,175	ProgramServicesAmt
Management And General	$444,416	ManagementAndGeneralAmt

Insurance InsuranceGrp

Field	Value	IRS element (for citing)
Total	$368,167	TotalAmt
Program Services	$202,492	ProgramServicesAmt
Management And General	$165,675	ManagementAndGeneralAmt

Other Expenses OtherExpensesGrp (4 entries)

DescDesc	TotalTotalAmt	Program ServicesProgramServicesAmt	Management And GeneralManagementAndGeneralAmt
Shared Services/Management Fees	$61,242,589	$33,683,424	$27,559,165
Taxes on Regulatory Fees	$28,770,676	$28,770,676
Other Medical Management Programs	$6,252,913	$6,252,913
Community Support & Outreach	$732,637	$402,949	$329,688

All Other Expenses AllOtherExpensesGrp

Field	Value	IRS element (for citing)
Total	$4,010,823	TotalAmt
Program Services	$2,205,953	ProgramServicesAmt
Management And General	$1,804,870	ManagementAndGeneralAmt
Fundraising	$0	FundraisingAmt

Total Functional Expenses TotalFunctionalExpensesGrp

Field	Value	IRS element (for citing)
Total	$2,956,027,143	TotalAmt
Program Services	$2,832,386,129	ProgramServicesAmt
Management And General	$123,641,014	ManagementAndGeneralAmt
Fundraising	$0	FundraisingAmt

Cash Non Interest Bearing CashNonInterestBearingGrp

Field	Value	IRS element (for citing)
BOY	$13,783,772	BOYAmt
EOY	-$24,006,744	EOYAmt

Savings And Temp Cash Invst SavingsAndTempCashInvstGrp

Field	Value	IRS element (for citing)
BOY	$316,071,029	BOYAmt
EOY	$420,804,727	EOYAmt

Accounts Receivable AccountsReceivableGrp

Field	Value	IRS element (for citing)
BOY	$95,148,893	BOYAmt
EOY	$76,557,895	EOYAmt

Receivables From Officers Etc ReceivablesFromOfficersEtcGrp

Field	Value	IRS element (for citing)
BOY	$28,509	BOYAmt
EOY	$23,039	EOYAmt

Rcvbl From Disqualified Prsn RcvblFromDisqualifiedPrsnGrp

Field	Value	IRS element (for citing)
BOY	$0	BOYAmt
EOY	$0	EOYAmt

Oth Notes Loans Receivable Net OthNotesLoansReceivableNetGrp

Field	Value	IRS element (for citing)
EOY	$0	EOYAmt

Field	Value	IRS element (for citing)
Land Bldg Equip Cost Or Other Bss	$31,579,258	LandBldgEquipCostOrOtherBssAmt
Land Bldg Equip Accum Deprec	$9,412,589	LandBldgEquipAccumDeprecAmt

Land Bldg Equip Basis Net LandBldgEquipBasisNetGrp

Field	Value	IRS element (for citing)
BOY	$22,921,891	BOYAmt
EOY	$22,166,669	EOYAmt

Investments Pub Traded Sec InvestmentsPubTradedSecGrp

Field	Value	IRS element (for citing)
BOY	$453,349,626	BOYAmt
EOY	$552,532,975	EOYAmt

Investments Other Securities InvestmentsOtherSecuritiesGrp

Field	Value	IRS element (for citing)
BOY	$0	BOYAmt

Investments Program Related InvestmentsProgramRelatedGrp

Field	Value	IRS element (for citing)
BOY	$103,096,449	BOYAmt
EOY	$121,900,383	EOYAmt

Other Assets Total OtherAssetsTotalGrp

Field	Value	IRS element (for citing)
BOY	$20,133,993	BOYAmt
EOY	$19,996,900	EOYAmt

Total Assets TotalAssetsGrp

Field	Value	IRS element (for citing)
BOY	$1,024,534,162	BOYAmt
EOY	$1,189,975,844	EOYAmt

Accounts Payable Accr Expnss AccountsPayableAccrExpnssGrp

Field	Value	IRS element (for citing)
BOY	$307,211,530	BOYAmt
EOY	$359,761,194	EOYAmt

Deferred Revenue DeferredRevenueGrp

Field	Value	IRS element (for citing)
BOY	$20,105,501	BOYAmt
EOY	$19,354,254	EOYAmt

Loans From Officers Directors LoansFromOfficersDirectorsGrp

Field	Value	IRS element (for citing)
BOY	$0	BOYAmt
EOY	$0	EOYAmt

Mortg Notes Pybl Scrd Invst Prop MortgNotesPyblScrdInvstPropGrp

Field	Value	IRS element (for citing)
BOY	$23,143,555	BOYAmt
EOY	$21,898,162	EOYAmt

Other Liabilities OtherLiabilitiesGrp

Field	Value	IRS element (for citing)
BOY	$100,017,298	BOYAmt
EOY	$119,705,073	EOYAmt

Total Liabilities TotalLiabilitiesGrp

Field	Value	IRS element (for citing)
BOY	$450,477,884	BOYAmt
EOY	$520,718,683	EOYAmt

Field	Value	IRS element (for citing)
Org Does Not Follow SFAS117	Yes (X)	OrgDoesNotFollowSFAS117Ind

Cap Stk Tr Prin Current Funds CapStkTrPrinCurrentFundsGrp

Field	Value	IRS element (for citing)
BOY	$8,524	BOYAmt
EOY	$8,524	EOYAmt

Pd In Cap Srpls Land Bldg Eqp Fund PdInCapSrplsLandBldgEqpFundGrp

Field	Value	IRS element (for citing)
BOY	$84,698,482	BOYAmt
EOY	$109,182,679	EOYAmt

Rtn Earn Endowment Incm Oth Fnds RtnEarnEndowmentIncmOthFndsGrp

Field	Value	IRS element (for citing)
BOY	$489,349,272	BOYAmt
EOY	$560,065,958	EOYAmt

Total Net Assets Fund Balance TotalNetAssetsFundBalanceGrp

Field	Value	IRS element (for citing)
BOY	$574,056,278	BOYAmt
EOY	$669,257,161	EOYAmt

Tot Liab Net Assets Fund Balance TotLiabNetAssetsFundBalanceGrp

Field	Value	IRS element (for citing)
BOY	$1,024,534,162	BOYAmt
EOY	$1,189,975,844	EOYAmt

Field	Value	IRS element (for citing)
Info In Schedule O Part XI	Yes (X)	InfoInScheduleOPartXIInd
Reconcilation Revenue Expnss	$79,387,209	ReconcilationRevenueExpnssAmt
Net Unrlzd Gains Losses Invst	$20,099,657	NetUnrlzdGainsLossesInvstAmt
Other Changes In Net Assets	-$4,285,983	OtherChangesInNetAssetsAmt
Method Of Accounting Accrual	Yes (X)	MethodOfAccountingAccrualInd
Accountant Compile Or Review	false	AccountantCompileOrReviewInd
FS Audited	Yes (true)	FSAuditedInd

FS Audited Basis FSAuditedBasisGrp

Field	Value	IRS element (for citing)
Consolidated Basis Fincl Stmt	Yes (X)	ConsolidatedBasisFinclStmtInd

Field	Value	IRS element (for citing)
Audit Committee	Yes (true)	AuditCommitteeInd
Federal Grant Audit Required	false	FederalGrantAuditRequiredInd

Schedule D IRS990ScheduleD

Land LandGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$4,388,000	OtherCostOrOtherBasisAmt
Book Value	$4,388,000	BookValueAmt

Buildings BuildingsGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$26,601,000	OtherCostOrOtherBasisAmt
Depreciation	$8,822,331	DepreciationAmt
Book Value	$17,778,669	BookValueAmt

Leasehold Improvements LeaseholdImprovementsGrp

Field	Value	IRS element (for citing)
Other Cost Or Other Basis	$590,258	OtherCostOrOtherBasisAmt
Depreciation	$590,258	DepreciationAmt
Book Value	$0	BookValueAmt

Field	Value	IRS element (for citing)
Total Book Value Land Buildings	$22,166,669	TotalBookValueLandBuildingsAmt

Invst Program Related Org InvstProgramRelatedOrgGrp

Field	Value	IRS element (for citing)
Desc	Investment in Affiliates	Desc
Book Value	$121,900,383	BookValueAmt
Method Valuation	C	MethodValuationCd

Field	Value	IRS element (for citing)
Total Book Value Program Rltd	$121,900,383	TotalBookValueProgramRltdAmt

Other Liabilities Org OtherLiabilitiesOrgGrp (3 entries)

DescDesc	AmtAmt
Due to affiliates	$41,577,384
Other Liabilities	$3,956,625
PPACA Fee Payable	$74,171,064

Field	Value	IRS element (for citing)
Total Liability	$119,705,073	TotalLiabilityAmt

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	Schedule D, Part X, Line 2 FIN 48 (ASC 740) Footnote	FormAndLineReferenceDesc
Explanation	Priority Health CONDUCTS AN ANALYSIS ANNUALLY TO DETERMINE THE ORGANIZATION'S LIABILITY WITH RESPECT TO UNCERTAIN TAX POSITIONS. FOR THE YEAR ENDED December 31, 2017 IT WAS DETERMINED THAT THERE WERE NO MATERIAL UNCERTAIN TAX POSITIONS TO DISCLOSE. AS SUCH, THERE WAS NO FOOTNOTE ADDED TO THE AUDITED FINANCIAL STATEMENTS.	ExplanationTxt

Schedule J IRS990ScheduleJ

Field	Value	IRS element (for citing)
Club Dues Or Fees	Yes (X)	ClubDuesOrFeesInd
Written Policy Ref T And E Expnss	Yes (true)	WrittenPolicyRefTAndEExpnssInd
Substantiation Required	Yes (true)	SubstantiationRequiredInd
Severance Payment	false	SeverancePaymentInd
Supplemental Nonqual Rtr Plan	Yes (true)	SupplementalNonqualRtrPlanInd
Equity Based Comp Arrngm	false	EquityBasedCompArrngmInd
Comp Based On Revenue Of Flng Org	false	CompBasedOnRevenueOfFlngOrgInd
Comp Bsd On Rev Related Orgs	false	CompBsdOnRevRelatedOrgsInd
Comp Bsd Net Earns Flng Org	false	CompBsdNetEarnsFlngOrgInd
Comp Bsd Net Earns Rltd Orgs	false	CompBsdNetEarnsRltdOrgsInd
Any Non Fixed Payments	false	AnyNonFixedPaymentsInd
Initial Contract Exception	false	InitialContractExceptionInd

Rltd Org Officer Trst Key Empl RltdOrgOfficerTrstKeyEmplGrp (21 entries)

TitleTitleTxt	Base Compensation Filing OrgBaseCompensationFilingOrgAmt	Compensation Based On Rltd OrgsCompensationBasedOnRltdOrgsAmt	Bonus Filing OrganizationBonusFilingOrganizationAmount	Bonus Related OrganizationsBonusRelatedOrganizationsAmt	Other Compensation Filing OrgOtherCompensationFilingOrgAmt	Other Compensation Rltd OrgsOtherCompensationRltdOrgsAmt	Deferred Compensation Flng OrgDeferredCompensationFlngOrgAmt	Deferred Comp Rltd OrgsDeferredCompRltdOrgsAmt	Nontaxable Benefits Filing OrgNontaxableBenefitsFilingOrgAmt	Nontaxable Benefits Rltd OrgsNontaxableBenefitsRltdOrgsAmt	Total Compensation Filing OrgTotalCompensationFilingOrgAmt	Total Compensation Rltd OrgsTotalCompensationRltdOrgsAmt	Comp Report Prior990 Filing OrgCompReportPrior990FilingOrgAmt	Comp Report Prior990 Rltd OrgsCompReportPrior990RltdOrgsAmt
Joan A BUDDEN
PRESIDENT & CEO	$563,987	$195,522	$288,842	$100,134	$15,171	$5,260	$253,492	$87,880	$80,541	$27,921	$1,202,033	$416,717	$57,883	$20,067
Richard Breon
DIRECTOR	$0	$1,334,907	$0	$1,697,653	$0	$46,405	$0	$420,003	$0	$218,300	$0	$3,717,268	$0	$754,676
Christina Freese-Decker
Director	$0	$829,541	$0	$477,722	$0	$18,255	$0	$417,232	$0	$126,905	$0	$1,869,655	$0	$95,889
Michael Vredenburg
DIRECTOR	$9,500	$623,009	$0	$1,685	$0	$13,112	$0	$27,000	$0	$28,037	$9,500	$692,843	$0	$1,435
Seth Wolk MD
Director	$0	$793,044	$0	$343,609	$0	$23,955	$0	$337,281	$0	$122,350	$0	$1,620,239	$0	$0
Mary Anne Jones
Treasurer & SVP, Finance	$315,383	$109,336	$150,063	$52,023	$26,661	$9,243	$90,599	$31,409	$63,048	$21,858	$645,754	$223,869	$47,814	$16,576
KIMBERLY L THOMAS
SECRETARY	$279,246	$96,808	$132,228	$45,840	$1,120	$389	$85,452	$29,624	$39,805	$13,800	$537,851	$186,461	$42,750	$14,821
JAY LABINE
Former SVP, Chief Medical Officer	$0	$423,191	$0	$158,897	$0	$2,221	$0	$108,428	$0	$67,307	$0	$760,044	$0	$41,028
PAMELA RIES
Former VP, System Total Value	$0	$429,150	$0	$205,286	$0	$18,728	$0	$199,291	$0	$69,803	$0	$922,258	$0	$27,248
CHRISTOPHER CROOK
SVP, Information Services	$165,417	$57,346	$37,128	$12,872	$12,710	$4,406	$1,897	$658	$33,748	$11,742	$250,900	$87,024	$0	$0
JAMES FORSHEE
SVP, CHIEF MEDICAL OFFICER	$296,145	$102,667	$55,725	$19,319	$9,562	$3,315	$47,650	$16,519	$51,606	$17,890	$460,688	$159,710	$0	$0
MICHAEL KOZIARA
SVP, PROVIDER NETWORK	$303,585	$105,246	$117,764	$40,826	$12,277	$4,257	$73,255	$25,396	$53,403	$18,514	$560,284	$194,239	$19,648	$6,811
BRIAN KRUPICZEWICZ
SVP, HUMAN RESOURCES	$168,778	$58,512	$53,740	$18,630	$8,497	$2,946	$42,600	$14,768	$38,198	$13,243	$311,813	$108,099	$0	$0
MARTI LOLLI
SVP, CONS/GOVT MKT & CMO	$245,379	$85,067	$79,175	$27,449	$1,701	$589	$85,306	$29,574	$49,201	$17,057	$460,762	$159,736	$0	$0
WAYNE WILSON
SVP, GOVERNMENT MARKETS - PART YEAR	$185,406	$64,276	$110,826	$38,421	$47,924	$16,614	$56,533	$19,599	$29,539	$10,241	$430,228	$149,151	$34,085	$11,816
KRISCHA WINRIGHT
SVP, Chief Marketing/Digital Officer - Part Year	$104,569	$91,033	$32,518	$28,309	$18,705	$16,284	$55,436	$48,260	$30,023	$26,136	$241,251	$210,022	$24,645	$21,455
JIANHUA YU
SVP, ADVANCED ANALYTICS/CHIEF ACTUARY	$283,879	$98,413	$130,521	$45,249	$11,632	$4,033	$82,779	$28,697	$37,439	$12,979	$546,250	$189,371	$41,455	$14,372
JOHN L FOX
VP, Assoc Chief Medical Officer	$258,702	$89,686	$111,452	$38,638	$1,483	$514	$16,039	$5,561	$47,269	$16,387	$434,945	$150,786	$27,861	$9,658
EUGENE CRONIN
VP, NEW GOVERNMENT MARKETS	$211,508	$73,325	$99,647	$34,545	$9,905	$3,434	$14,035	$4,865	$43,094	$14,940	$378,189	$131,109	$30,656	$10,628
INES VIGIL
VP, ADVANCED ANALYTICS	$222,337	$77,079	$71,653	$24,840	$842	$292	$6,991	$2,424	$39,371	$13,649	$341,194	$118,284	$0	$0
Gregory Gadbois MD
MEDICAL DIRECTOR	$206,424	$71,563	$53,834	$18,663	$863	$299	$14,035	$4,865	$18,163	$6,297	$293,319	$101,687	$0	$0

Supplemental Information Detail SupplementalInformationDetail (4 entries)

Form And Line ReferenceFormAndLineReferenceDesc	ExplanationExplanationTxt
Schedule J, Part II, Column (F) DEFERRED COMPENSATION	THE 2017 "BONUS & INCENTIVE COMPENSATION" INCLUDES CERTAIN DEFERRED COMPENSATION ARRANGEMENTS THAT WERE REPORTED IN PREVIOUS YEARS BUT PAID IN 2017. THIS RESULTS IN A CERTAIN AMOUNT OF WAGES BEING REPORTED IN THE FORM 990 TWICE. AMOUNTS REPORTED IN PART II COLUMN F REPRESENT COMPENSATION THAT WAS REPORTED IN A PREVIOUS YEAR'S FORM 990 WHILE ALSO BEING REPORTED IN THE CURRENT FORM 990 AS TOTAL COMPENSATION.
Schedule J, Part I, Line 1a Health or social club dues or initiation fees	The organization provided health club dues for eight executive employees. These amounts were treated as taxable compensation and included in Form W-2.
Schedule J, Part I, Line 3 Arrangement used to establish the top management official's compensation	SEE EXPLANATION PROVIDED ON SCHEDULE O FOR FORM 990, PART VI, LINE 15A
Schedule J, Part I, Line 4b Supplemental nonqualified retirement plan	$ 754,676 Richard Breon $ 77,950 Joan Budden $ 41,284 Eugene Cronin $ 37,520 John Fox $ 95,889 Christina Freese-Decker $ 64,389 Mary Anne Jones $ 26,459 Michael Koziara $ 41,028 Jay Labine $ 27,248 Pamela Ries $ 57,571 Kimberly Thomas $ 45,901 Wayne Wilson $ 46,100 Krischa Winright $ 55,827 Jianhua Yu $ 1,435 Michael Vredenburg Schedule J, Part I, Line 4b is answered "yes" because individuals, whose salary and benefits are allocated to this organization, do "participate in" a supplemental nonqualified retirement plan. Some individuals received distributions during the year (as reported on this line) whereas others participated in the plan but did not receive distributions. Distributions reported on this line are also included in Schedule J, Part II, Column F as compensation reported in a prior year. The nonqualified retirement plans are an industry standard and are subject to the funding requirements of nonqualified deferred compensation plans under ERISA and federal tax regulations.

Schedule L IRS990ScheduleL

Loans Btwn Org Interested Prsn LoansBtwnOrgInterestedPrsnGrp

Business Name BusinessName

Field	Value	IRS element (for citing)
Business Name Line1	MICHAEL VREDENBURG	BusinessNameLine1Txt

Field	Value	IRS element (for citing)
Relationship With Org	DIRECTOR	RelationshipWithOrgTxt
Loan Purpose	TUITION ASSIST	LoanPurposeTxt
Loan From Organization	Yes (X)	LoanFromOrganizationInd
Original Principal	$27,000	OriginalPrincipalAmt
Balance Due	$23,039	BalanceDueAmt
Default	false	DefaultInd
Board Or Committee Approval	false	BoardOrCommitteeApprovalInd
Written Agreement	Yes (true)	WrittenAgreementInd

Field	Value	IRS element (for citing)
Total Balance Due	$23,039	TotalBalanceDueAmt

Bus Tr Involve Interested Prsn BusTrInvolveInterestedPrsnGrp (2 entries)

Relationship DescriptionRelationshipDescriptionTxt	TransactionTransactionAmt	TransactionTransactionDesc	Sharing Of RevenuesSharingOfRevenuesInd
Michael Breon
Family relationship Michael Breon is the son of Mr Richard Breon, a member of the board of directors	$180,565	Employment	false
Matthew Koziara
FAMILY relationship Matthew Koziara is the son of Mr Michael Koziara, a Key Employee	$49,071	Employment	false

Schedule O IRS990ScheduleO

Supplemental Information Detail SupplementalInformationDetail (25 entries)

Form And Line ReferenceFormAndLineReferenceDesc	ExplanationExplanationTxt
Form 990, Part III, Line 4a PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH HMO	PRIORITY HEALTH IS AN INTEGRAL PART OF THE SPECTRUM HEALTH SYSTEM, AN INTEGRATED HEALTH SYSTEM SERVING COMMUNITIES THROUGHOUT MICHIGAN. PRIORITY HEALTH'S MISSION, LED BY ITS COMMUNITY BOARD, STRIVES TO RETURN VALUE TO THE COMMUNITIES SERVED BEYOND THE PROVISION OF HEALTH CARE TO ITS MEMBERS. PRIORITY HEALTH HAS BUILT A LONG HISTORY OF OFFERING MICHIGAN EMPLOYERS AND INDIVIDUALS PROGRESSIVE PRODUCTS AND INNOVATIVE PROGRAMS INTENDED TO KEEP COSTS DOWN AND MEMBERS HEALTHY. ITS BROAD PORTFOLIO OF PRODUCTS AND SERVICES INCLUDES TRADITIONAL MEDICAL PLANS AS WELL AS HSA'S, HRA'S AND OTHER CONSUMER-DRIVEN PRODUCTS. PRIORITY HEALTH CURRENTLY HAS A "COMMENDABLE" ACCREDITATION FOR ITS HMO PRODUCTS FROM THE NATIONAL COMMITTEE FOR QUALITY ASSURANCE (NCQA), AN INDEPENDENT MANAGED CARE ACCREDITING BODY. PRIORITY HEALTH HAS EARNED EITHER A "COMMENDABLE" OR "EXCELLENT" RATING EVERY YEAR SINCE 1998. PRIORITY HEALTH HAS ALSO MAINTAINED AN "A" (EXCELLENT) FINANCIAL RATING FOR THREE CONSECUTIVE YEARS FROM A.M. BEST, A HEALTH INSURANCE RATINGS AGENCY, RECOGNIZING THE FINANCIAL STRENGTH OF THE ORGANIZATION AND FOCUS ON MANAGING THE COST OF HEALTH CARE FOR ITS COMMUNITY. PRIORITY HEALTH'S MAJORITY SHAREHOLDER, SPECTRUM HEALTH IS A NOT-FOR-PROFIT HEALTH SYSTEM, BASED IN WEST MICHIGAN, OFFERING A FULL CONTINUUM OF CARE THROUGH THE SPECTRUM HEALTH HOSPITAL GROUP, WHICH IS COMPRISED OF 12 HOSPITALS; 180 AMBULATORY AND SERVICE SITES; 3,600 PHYSICIANS AND ADVANCED PRACTICE PROVIDERS, WHICH INCLUDE 1,500 MEMBERS OF THE SPECTRUM HEALTH MEDICAL GROUP; AND PRIORITY HEALTH, A HEALTH PLAN WITH MORE THAN 779,000 MEMBERS. SPECTRUM HEALTH IS WEST MICHIGAN'S LARGEST EMPLOYER, WITH OVER 26,000 EMPLOYEES. THE ORGANIZATION PROVIDED $372 MILLION IN COMMUNITY BENEFIT DURING ITS 2017 FISCAL YEAR. SPECTRUM HEALTH WAS NAMED ONE OF THE NATION'S 15 TOP HEALTH SYSTEMS, AND IN THE TOP FIVE AMONG THE LARGEST HEALTH SYSTEMS, BY TRUVEN HEALTH ANALYTICS IN 2017. THE TRUVEN HEALTH ANALYTICS STUDY INCLUDED 337 HEALTH SYSTEMS WITH 2,924 HOSPITALS AND IS BASED ON KEY PERFORMANCE MEASURES ON INPATIENT OUTCOMES, PROCESS OF CARE, EXTENDED OUTCOMES, EFFICIENCY AND PATIENT EXPERIENCE. THIS IS THE SIXTH TIME THE ORGANIZATION HAS RECEIVED THIS RECOGNITION. THE AFFORDABLE CARE ACT (ACA) ADDED NEW REQUIREMENTS THAT HOSPITAL ORGANIZATIONS MUST SATISFY IN ORDER TO MAINTAIN TAX EXEMPT STATUS UNDER IRC SECTION 501(C)(3). ONE OF THE REQUIREMENTS UNDER THIS ACT IS TO CONDUCT A COMMUNITY HEALTH NEEDS ASSESSMENT (CHNA) AND ADOPT AN IMPLEMENTATION STRATEGY AT LEAST ONCE EVERY THREE YEARS. SPECTRUM HEALTH COMPLETED SEVERAL IMPLEMENTATION PLANS IDENTIFYING THE COMMUNITY HEALTH NEEDS AND IMPLEMENTATION PLAN GOALS FOR EACH SPECTRUM HEALTH HOSPITAL. ONE NEED IDENTIFIED IN THE CHNA'S IS ACCESS TO HEALTH CARE, WHICH INCLUDES IMPROVING ACCESS TO AFFORDABLE HEALTH CARE FOR ALL COMMUNITY MEMBERS. IN ADDITION, ALL COMMUNITY MEMBERS SHOULD HAVE ACCESS TO PREVENTIVE CARE AND MEDICAL HOME CARE, INCLUDING THE UNINSURED AND LOW-INCOME WORKING INDIVIDUALS. SPECTRUM HEALTH WORKS CLOSELY WITH PRIORITY HEALTH TO ACHIEVE THE IDENTIFIED NEEDS AND GOALS. PRIORITY HEALTH PURSUES INITIATIVES THAT WILL IMPROVE PATIENT OUTCOMES WHILE HELPING TO REDUCE THE OVERALL COST TO THE MEMBER. IN 2017, PRIORITY HEALTH LOWERED HEALTH COSTS ACROSS ALL LINES OF BUSINESS BY OVER $37 MILLION THROUGH NEW MANAGED CARE INITIATIVES AND CHRONIC DISEASE MANAGEMENT PROGRAMS. THESE PROGRAMS INFLUENCE PHYSICIAN PRACTICES, PROMOTE APPROPRIATE HEALTH CARE UTILIZATION AND INCREASE QUALITY, WHICH EXTENDS BEYOND PRIORITY HEALTH'S MEMBERS. IN ADDITION TO THE MANAGED CARE SAVINGS ABOVE, PRIORITY HEALTH PURSUES INITIATIVES TO PREVENT INDIVIDUALS FROM DEVELOPING CHRONIC DISEASES, AS WELL AS INITIATIVES TO BETTER MANAGE INDIVIDUALS WHO ALREADY HAVE CHRONIC DISEASES. IN 2017, PRIORITY HEALTH ENROLLED OVER 81,000 MEMBERS IN CHRONIC DISEASE MANAGEMENT PROGRAMS. PRIORITY HEALTH MEASURES EACH ACCOUNTABLE CARE NETWORK'S USE OF RATES FOR PREFERENCE SENSITIVE CONDITIONS AND DISTRIBUTES THIS BENCHMARK DATA UN-BLINDED TO HIGHLIGHT OUTLIERS IN STANDARDS OF CARE. CONSUMER DECISION MAKING TOOLS HAVE ALSO BEEN DEVELOPED TO PROVIDE PATIENTS WITH ALTERNATIVES TO TREATMENT WITH RELATED EVIDENCE BASED OUTCOMES. PHARMACEUTICAL FORMULARY ASSESSMENTS GUIDE PHYSICIAN PRESCRIPTION ORDERING BEHAVIORS TOWARD THE LOWEST COST DRUGS THAT ARE PROVEN EFFECTIVE. QUALITY AND INCENTIVE PROGRAMS DESIGNED TO MONITOR AND REDUCE HIGH COST HEALTH CARE AREAS SUCH AS EMERGENCY ROOM (ER) VISITS, HIGH DIAGNOSTIC IMAGING, AND UNNECESSARY ADMISSIONS HAVE BEEN IMPLEMENTED ACROSS THE STATE OF MICHIGAN. OTHER EXAMPLES OF INITIATIVES INCLUDE IMPLEMENTATION OF ELECTRONIC MEDICAL RECORDS, WHICH BENEFIT NON-PRIORITY HEALTH PATIENTS; DEVELOPING AND PUBLISHING PREVENTIVE HEALTH CARE GUIDELINES AVAILABLE TO THE GENERAL PUBLIC ON ITS WEBSITE; AND USING COMMUNITY RATING WHICH MINIMIZES THE ECONOMIC IMPACT OF SEVERE ILLNESS ON A GIVEN INDIVIDUAL OR GROUP. PRIORITY HEALTH SERVES WHAT THE IRS HAS DEFINED AS THE "MOST IN NEED" POPULATION WITH INDIVIDUALS, SMALL GROUPS AND ELDERLY MAKING UP 67% OF THE MEMBERSHIP BASE. PRIORITY HEALTH PROVIDED COMMUNITY-RATED AFFORDABLE HEALTH INSURANCE TO OVER 420,000 MEMBERS WHO ARE INDIVIDUALS, SMALL GROUPS AND ELDERLY IN 2017. PRIORITY HEALTH ALSO SUPPORTS ITS WHOLLY-OWNED SUBSIDIARY, PRIORITY HEALTH CHOICE, INC., WHICH PROVIDES ACCESS TO EXCELLENT HEALTH CARE TO NEARLY 124,000 MEDICAID MEMBERS OF THE 420,000 MEMBERS MENTIONED PREVIOUSLY.
Form 990, Part III, Line 4a PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH HMO (CONTINUED)	IN 2016, PRIORITY HEALTH WAS SELECTED BY THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS) TO PARTICIPATE IN A FEDERAL COMPREHENSIVE PRIMARY CARE PLUS (CPC+) INITIATIVE, A NATIONAL ADVANCED PRIMARY CARE MEDICAL HOME MODEL THAT AIMS TO STRENGTHEN PRIMARY CARE THROUGH REGIONALLY-BASED MULTI-PAYER PAYMENT REFORM AND CARE DELIVERY TRANSFORMATION. THE GOALS OF CPC+ ARE TO IMPROVE THE QUALITY OF CARE PATIENTS RECEIVE, IMPROVE PATIENTS' HEALTH, AND SPEND HEALTH CARE DOLLARS WISELY. CPC+ WILL BRING TOGETHER CMS, COMMERCIAL INSURANCE PLANS, PRIORITY HEALTH CHOICE, AND PRIORITY HEALTH MEDICARE TO PROVIDE THE FINANCIAL SUPPORT NECESSARY FOR PRACTICES TO MAKE FUNDAMENTAL CHANGES IN THEIR CARE DELIVERY. THE CPC+ PILOT BEGAN IN JANUARY 2017 AND TESTS A 5-YEAR MODEL. PRIORITY HEALTH HAS BEEN A LEADER IN PATIENT-CENTERED CARE AND HAS A PROVEN RECORD OF WORKING WITH PHYSICIANS TO IMPROVE HEALTH OUTCOMES. THROUGH ITS PARTNERS IN PERFORMANCE PROGRAM, PRIORITY HEALTH ENCOURAGES AND REWARDS THE QUALITY CARE OF PRIMARY CARE PHYSICIANS. THE PHYSICIANS AND PRACTICES SELECTED FOR THE PRIORITY HEALTH QUALITY AWARDS HAVE ACHIEVED THE HIGHEST OVERALL SCORES FOR ENSURING PATIENTS RECEIVE PREVENTIVE CARE, CONTROL CHRONIC DISEASE AND HAVE A GOOD EXPERIENCE. EACH AWARD RECIPIENT IS SELECTED BY ANALYZING THE RESULTS OF THE PRIORITY HEALTH PRIMARY CARE PROVIDER INCENTIVE PROGRAM, A PROGRAM THAT TRACKS CLINICAL QUALITY MEASURES AGAINST NATIONAL STANDARDS AND EVIDENCE-BASED MEDICINE. APPROXIMATELY 210 HEALTH CARE PRACTICE GROUPS EARNED QUALITY AWARDS STATEWIDE IN 2017. PRIORITY HEALTH PAID PHYSICIANS $28 MILLION IN 2018 BASED ON THEIR PERFORMANCE IN 2017. THE PROGRAM'S SUCCESS IS CLEARLY DEMONSTRATED BY THE NUMBER OF PRIORITY HEALTH MEMBERS WHO RECEIVE PREVENTIVE SCREENINGS. IN 2017, MORE THAN 74% OF PRIORITY HEALTH MEMBERS RECEIVED ROUTINE COLORECTAL CANCER SCREENING EXAMS COMPARED TO A NATIONAL AVERAGE OF 62%. ADDITIONALLY, 85% OF MEMBERS RECEIVED CHILDHOOD IMMUNIZATIONS COMPARED TO THE NATIONAL AVERAGE OF 77%. PRIORITY HEALTH SHARES RISK WITH PROVIDERS AND EMPLOYERS BY OFFERING THESE INCENTIVES AND OTHER RISK SHARING ARRANGEMENTS. THIS PROMOTES LOWER OVERALL HEALTH CARE COSTS AND IMPROVED QUALITY TO THE COMMUNITY. PRIORITY HEALTH HAS BEEN A STRONG ADVOCATE FOR PATIENT-CENTERED CARE BY SUPPORTING THE NATIONAL MODEL FOR CHANGING REIMBURSEMENT, WHICH INCLUDES PAYMENT FOR SERVICES, PAYMENT FOR PERFORMANCE BASED ON QUALITY AND EFFICIENCY, AND INFRASTRUCTURE SUPPORT THROUGH A FIXED PAYMENT PER PATIENT. IN 2013, PRIORITY HEALTH JOINED THE MICHIGAN PRIMARY CARE TRANSFORMATION (MIPCT) PROJECT. MIPCT IS A PROJECT AIMED AT IMPROVING HEALTH IN THE STATE, MAKING HEALTH CARE MORE AFFORDABLE AND ENHANCING THE PATIENT EXPERIENCE. THE PROJECT DEMONSTRATION PERIOD WAS EXTENDED UNTIL DECEMBER 31, 2016 UPON THE CONSENT OF CMS AND ALL OTHER PARTICIPATING PAYERS. IT IS THE LARGEST PATIENT-CENTERED MEDICAL HOMES PROJECT IN THE NATION, REACHING OVER 1.2 MILLION PATIENTS SERVED BY 1,900 PROVIDERS IN 350 PRIMARY CARE PRACTICES AND 37 PHYSICIAN ORGANIZATIONS. PRIORITY HEALTH HAS REACHED 11% OF THIS MARKET. THE PROGRAM IS EVALUATED BY THE RESEARCH TRIANGLE INSTITUTE, CMS' NATIONAL EVALUATOR FOR THE DEMONSTRATION. THE FIRST YEAR EVALUATION CONCLUDED THAT MIPCT PROGRAM SAVINGS FOR MEDICARE IN MICHIGAN WERE ESTIMATED AT ABOUT $148 PER FULL-YEAR ELIGIBLE MEDICARE BENEFICIARY. PRIORITY HEALTH ENCOURAGES MEMBERS TO UNDERSTAND THE COST OF CARE WHEN MAKING HEALTH CARE DECISIONS. WITH THE LAUNCH OF HEALTH CARE BLUE BOOK IN AUGUST 2013, PRIORITY HEALTH BECAME THE FIRST MICHIGAN-BASED HEALTH PLAN TO PROVIDE ONLINE INFORMATION ABOUT CONTRACTED HEALTH CARE FEES ALONG WITH QUALITY INFORMATION TO ENGAGE MEMBERS THROUGH "COMPARISON SHOPPING." THROUGH THE PARTNERSHIP WITH HEALTH CARE BLUEBOOK, PRIORITY HEALTH MEMBERS CAN COMPARE PRICES CHARGED BY CARE PROVIDERS ACROSS THE STATE. A KEY FEATURE OF THE HEALTH CARE BLUEBOOK IS THAT IT DISPLAYS THE "FAIR PRICE" FOR EACH PROCEDURE. MEMBERS CAN ALSO REVIEW QUALITY RANKINGS AND CONSUMER REVIEW OF HOSPITALS AND PHYSICIANS THROUGH HEALTHGRADES TO RECEIVE A COMPLETE PICTURE OF THE SERVICE THEY ARE BUYING.THE HEALTH CARE BLUEBOOK WILL PROMOTE ENGAGEMENT BY PROVIDING MEMBERS WITH INFORMATION THAT EQUIPS THEM TO MAKE MORE INFORMED DECISIONS ABOUT THEIR HEALTH CARE WHICH ALLOWS THEM TO FIND THE BEST VALUE. IN 2015, PRIORITY HEALTH LAUNCHED A COST ESTIMATOR TOOL TO HELP MEMBERS CALCULATE THEIR OUT-OF-POCKET COSTS TO FIND THE MOST AFFORDABLE SERVICES. THE NEW ONLINE COST ESTIMATOR TOOL DISPLAYS PRIORITY HEALTH SPECIFIC FEES FOR MORE THAN 300 COMMON HEALTH SERVICES, INCLUDING X-RAYS, SURGERIES, LAB WORK AND IMAGING TESTS. THE TOOL USES CONTRACT CHARGES TO CALCULATE MEMBERS' ESTIMATED OUT-OF-POCKET COSTS BASED ON THEIR POLICY'S BENEFITS AND DEDUCTIBLES. THE COST ESTIMATOR EVEN RECOMMENDS LOWER-COST DOCTOR/FACILITY OPTIONS TO HELP ENSURE YOU GET THE HIGHEST-QUALITY CARE AT THE BEST PRICE. WHILE THE HEALTH CARE BLUEBOOK STARTED THE PUSH TOWARD COST TRANSPARENCY BY ENABLING CONSUMERS TO ACCESS AND COMPARE MARKET DATA, THE COST CALCULATOR SEEKS TO CHANGE THE CONVERSATION BETWEEN PATIENTS AND DOCTORS ABOUT THE COST OF CARE. THESE TOOLS SUPPORT PRIORITY HEALTH'S CONTINUED MARKET LEADERSHIP IN TRANSPARENCY AND LOWERS THE COST OF CARE TO THE COMMUNITY. ANOTHER PROGRAM INTRODUCED IN 2015 WAS PRIORITY REWARDS, AN INCENTIVE PROGRAM THAT REWARDS MEMBERS UP TO $200 FOR CHOOSING A FAIR-PRICED MEDICAL PROCEDURE THROUGH THE COMPANY'S COST ESTIMATING TOOL. PRIORITY REWARDS COMBINES THE POWER OF THE COST ESTIMATOR WITH FINANCIAL INCENTIVES FOR CONSUMERS WHO USE THE TOOL. WITH PRIORITY REWARDS, MEMBERS MAY EARN CASH REWARDS FOR SELECTING A PROCEDURE AND FACILITY COMBINATION OFFERED AT OR BELOW THE FAIR MARKET PRICE DETERMINED BY HEALTH CARE BLUEBOOK. ONCE THE PROCEDURE HAS BEEN COMPLETED, PRIORITY HEALTH WILL REWARD MEMBERS IN THE FORM OF A VISA GIFT CARD RANGING FROM $50-200.
Form 990, Part III, Line 4a PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH HMO (CONTINUED)	THE PRIORITY HEALTH THIRD PARTY LIABILITY (TPL) TEAM HAS CONSISTENTLY IMPROVED OUTCOMES BY INCREASING SAVINGS THROUGH AUDIT, ANALYSIS, AND STANDARDIZATION OF WORK WHILE CONCURRENTLY IMPROVING BOTH MEMBER AND PROVIDER SATISFACTION. THIS PROGRAM HAS IMPROVED ITS PER-MEMBER PER-MONTH (PMPM) SAVINGS BY MORE THAN 12% OVER THE PAST TWO YEARS, AND MORE THAN 73% SINCE 2013. BY PURSUING THE NEEDS OF ITS CUSTOMERS AT ALL TIMES AND DRIVING CONTINUOUS IMPROVEMENT IN ALL AREAS OF THE DEPARTMENT, THE TPL TEAM HAS BEEN ABLE TO SUSTAIN IMPROVEMENT YEAR-OVER-YEAR. DURING 2017, PRIORITY HEALTH RECOGNIZED TPL SAVINGS OF OVER $54 MILLION REPRESENTING $5.87 PMPM SAVINGS. IN 2013, THE MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) ADOPTED THE OBAMA ADMINISTRATION'S EXTENSION OF THE TRANSITIONAL "AS IS" POLICY. THIS DECISION ALLOWS INSURERS TO DECIDE WHETHER THEY WOULD CONTINUE OFFERING POLICIES THAT ARE NOT COMPLIANT WITH THE ACA, WHICH BECAME PERMISSIBLE WHEN THE FEDERAL GOVERNMENT DELAYED THE REQUIRED SHIFT TO ACA-APPROVED INSURANCE COVERAGE. WHILE MAJOR COMPETITORS HAVE SHUT DOWN PLANS, PRIORITY HEALTH CONTINUES TO OFFER AN EXTENSION OF ITS PRE-ACA INDIVIDUAL AND GROUP HEALTH PLANS TO SUBSCRIBERS AS LONG AS PERMITTED BY REGULATORY GUIDANCE. IN ADDITION, PRIORITY HEALTH REINSTATED POLICIES IT ALREADY HAD CANCELLED GIVING EMPLOYERS AND INDIVIDUALS PEACE OF MIND AND TIME TO ASSESS THEIR OPTIONS BEFORE BEING REQUIRED TO CHANGE PLANS UNDER THE ACA. THE DECISION TO BOTH EXTEND AND REINSTATE PLANS IS CONSISTENT WITH PRIORITY HEALTH'S COMMITMENT TO PROVIDE INDIVIDUALS WITH FLEXIBILITY AND CHOICE. AT A TIME WHEN NATIONAL CARRIERS ARE EXITING THE INDIVIDUAL ACA MARKET, PRIORITY HEALTH REMAINS COMMITTED TO SERVING THIS POPULATION. AS A REQUIREMENT OF THE ACA, EACH STATE SELECTS AN ESSENTIAL HEALTH BENEFITS "BENCHMARK PLAN" THAT SERVES AS A REFERENCE FOR ALL OTHER HEALTH PLANS TO FOLLOW (INDIVIDUAL AND SMALL BUSINESS), WHEN DESIGNING THE SCOPE AND LIMITATIONS SURROUNDING COVERED SERVICES. A BENCHMARK PLAN IS CHOSEN BY EACH STATE EVERY FIVE YEARS. PRIORITY HEALTH WAS SELECTED AS THE STATE'S BENCHMARK PLAN IN 2012 AND IS THE ONLY HEALTH PLAN IN MICHIGAN TO EVER EARN THIS DESIGNATION. STARTING IN 2017 (CONTINUING IN 2018 AND FORWARD), THE MICHIGAN DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS) HAS RECOMMENDED THE PRIORITY HEALTH HMO PLAN TO CONTINUE TO SERVE AS THE ESSENTIAL HEALTH BENEFITS BENCHMARK FOR THE STATE. THE RECOMMENDATION UNDERSCORES PRIORITY HEALTH'S ABILITY TO DELIVER INCREDIBLE VALUE AND CREATE INNOVATIVE SOLUTIONS THAT IMPACT HEALTH CARE COSTS WHILE MAXIMIZING CUSTOMER EXPERIENCE. PRIORITY HEALTH'S HMO PLAN WAS SELECTED BECAUSE DIFS BELIEVES IT ACHIEVES THE BEST BALANCE BETWEEN COMPREHENSIVENESS AND COST-EFFECTIVENESS FOR MICHIGAN CONSUMERS. PRIORITY HEALTH PUBLISHED AN E-BOOK FOR EMPLOYERS ON HEALTH CARE REFORM WHICH IS FREE AND AVAILABLE TO THE PUBLIC ON PRIORITY HEALTH'S WEBSITE. THE GOAL OF THE GUIDE FOR EMPLOYERS IS TO PROVIDE SUMMARIES AND EXAMPLES AS AN EDUCATIONAL TOOL TO HELP ANSWER EMPLOYERS' QUESTIONS REGARDING HEALTH CARE REFORM. THE MICHIGAN ASSOCIATION OF HEALTH PLANS (MAHP), AN INDUSTRY VOICE FOR THE STATE'S HEALTH CARE PLANS, RECOGNIZES BEST PRACTICES IN HEALTH PLANS BY SPONSORING THE PINNACLE AWARDS. THE 2017 PINNACLE AWARDS CONTINUE PRIORITY HEALTH'S HISTORY OF BEING RECOGNIZED FOR ITS FOCUS ON IMPROVING HEALTH WHILE LOWERING COST. DURING 2017, 11 MICHIGAN HEALTH PLANS FROM ACROSS THE STATE SUBMITTED 33 GROUND-BREAKING PROGRAMS TO BE CONSIDERED FOR MAHP'S ANNUAL PINNACLE AWARDS, SHOWING ENTREPRENEURIAL SPIRIT AND AN INTEREST IN SERVING THEIR MEMBERS AS THEY SEEK TO INCREASE EFFICIENCY AND IMPROVE PATIENT HEALTH CARE TO LOWER COSTS AND INCREASE SERVICE TO MICHIGAN CITIZENS. PRIORITY HEALTH RECEIVED 3 PINNACLE AWARDS IN 2017; ONE FOR MEDICAID, ONE FOR COMMERCIAL PLANS, AND ONE WITHIN MEDICARE ADVANTAGE. IN 2017, PRIORITY HEALTH RECEIVED A PINNACLE AWARD FOR ITS CONCIERGE MODEL OF CARE. THE PRIORITY HEALTH COMMERCIAL CARE MANAGEMENT TEAM ACKNOWLEDGES THE INFLUENCE OF ENVIRONMENTAL AND SOCIAL DETERMINANTS OF HEALTH ON MEMBERS' HEALTH STATUS. THESE NON-CLAIMS DRIVEN FACTORS MAY INFLUENCE MEMBERS' ABILITY AND DESIRE TO ENGAGE WITH THE CARE TEAM. WHILE KNOWING THAT MANY COMMERCIAL MEMBERS WOULD BENEFIT FROM PRIORITY HEALTH'S EXPERTISE AND SUPPORT, IT CAN BE A CHALLENGE TO REACH THEM WHEN THEY ARE WORKING, CARING FOR THEIR FAMILIES, AND FULFILLING OTHER RESPONSIBILITIES. IT SEEMS THIS INABILITY TO CONNECT DISPROPORTIONATELY IMPACTS THOSE THAT STRUGGLE THE MOST. PRIORITY HEALTH COMMERICAL CARE MANAGEMENT HAS LAUNCHED AN ONSITE, CONCIERGE CARE MANAGEMENT PROGRAM TO ENGAGE THESE MEMBERS AT THEIR PLACE OF EMPLOYMENT. BY DEPLOYING A DEDICATED CARE MANAGER, MEMBERS ARE ABLE TO MEET FACE-TO-FACE WITH A CARE MANAGER WHO CAN FULLY ADDRESS THEIR HEALTH STATUS AND HEALTH MANAGEMENT NEEDS, WHILE ADDRESSING GAPS IN CARE AND SOCIAL DETERMINANTS OF HEALTH. IN 2015, PRIORITY HEALTH RECEIVED A PINNACLE AWARD FOR HEALTH COACHING IN THE BUSINESS OPERATIONAL PERFORMANCE CATEGORY. PRIORITY HEALTH'S COACHING PROGRAM UTILIZES HEALTH ASSESSMENT AND LAB DATA TO IDENTIFY HIGH RISK MEMBERS WHO CAN BENEFIT FROM INTERVENTION. THE PROGRAM STRIVES TO CREATE MEMBER SELF-AWARENESS AND AN INTRINSIC DRIVE TO IMPROVE MODIFIABLE RISK FACTORS LIKE BMI, ACTIVITY, NUTRITION, STRESS AND TOBACCO CESSATION. AN INTEGRATED APPROACH ENABLES COACHES TO QUICKLY TRIAGE MEMBERS TO CARE MANAGEMENT, BEHAVIORAL HEALTH AND PHARMACY. THERE IS GROWING EVIDENCE THAT CONSUMER ENGAGEMENT AND SELF-CARE ARE LINKED TO IMPROVING HEALTH OUTCOMES THROUGH PATIENT-CENTERED INTERVENTIONS LIKE HEALTH COACHING. IN 2014, PRIORITY HEALTH WAS A RECIPIENT OF A PINNACLE AWARD IN THE CHRONIC DISEASE MANAGEMENT CATEGORY FOR INTEGRATED HEALTH COACHING FOR THE COMMERCIAL POPULATION.
Form 990, Part III, Line 4a PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH HMO (CONTINUED)	IN ADDITION, PRIORITY HEALTH RECEIVED A 2015 PINNACLE AWARD IN THE COMMERCIAL CHRONIC DISEASE MANAGEMENT CATEGORY FOR SHARED CARE MANAGEMENT. PRIORITY HEALTH IS COMMITTED TO IMPROVING THE HEALTH AND LIVES OF ITS MEMBERS AND HAS LONG-VALUED AN INTEGRATED CARE MANAGEMENT APPROACH TO ADDRESS BOTH THE MEDICAL AND BEHAVIORAL HEALTH NEEDS OF MEMBERS.
Form 990, Part III, Line 4c PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH WELLNESS	PREVENTION AND WELLNESS HAVE BEEN THE FOUNDATION OF PRIORITY HEALTH'S APPROACH TO HEALTH CARE. PRIORITY HEALTH PROVIDES WELLNESS PROGRAMS WITHIN ITS STANDARD HEALTH PLANS, WHILE ALSO OFFERING CUSTOMIZED, STAND-ALONE WELLNESS PROGRAMS TO EMPLOYER GROUPS TO EMPOWER THEIR EMPLOYEES TO PURSUE HEALTHIER LIFESTYLES. IN ADDITION TO HEALTH PLAN OFFERINGS, PRIORITY HEALTH PARTICIPATES IN, AND SPONSORS, WELLNESS PROGRAMS FOR THE COMMUNITY AT LARGE TO IMPROVE THE HEALTH OF ALL PEOPLE, NOT JUST MEMBERS. IN 2017, PRIORITY HEALTH INVESTED $90,000 TO PROACTIVELY REACH OUT TO THE COMMUNITY THROUGH A SOCIAL MEDIA CAMPAIGN WITH MESSAGES OF HEALTH AND WELLNESS TO ENCOURAGE PARTICIPATION IN RACES AND PROMOTE HEALTHY LIVING. IN ADDITION, APPROXIMATELY 80 STAFF HOURS OF WELLNESS CLASSES AND HEALTH FAIRS WERE PROVIDED TO THE COMMUNITY TO PROMOTE HEALTHY LIVING. ADDITIONALLY, PRIORITY HEALTH IS TRANSFORMING ITS WELLNESS PROGRAMS TO ADDRESS THE OVERALL WELLBEING OF MEMBERS WITH A NEW PRODUCT, PRIORITYWELL. WITH PRIORITYWELL, EMPLOYERS WILL BE ABLE TO TAKE A NEW APPROACH TO SUPPORTING THE OVERALL WELLBEING OF THEIR EMPLOYEES AND IMPROVE ENGAGEMENT, SATISFACTION AND PRODUCTIVITY, ULTIMATELY RESULTING IN IMPROVED TALENT RETENTION AND A HEALTHIER WORKFORCE. WITH PRIORITYWELL, PRIORITY HEALTH PARTNERS WITH EMPLOYERS TO HELP THEM DELIVER TARGETED, SMART PROGRAMS THAT EFFECTIVELY IMPROVE EMPLOYEE PHYSICAL AND EMOTIONAL HEALTH WHILE ALSO IMPROVING WORKPLACE MORALE AND REDUCING OVERALL HEALTH COSTS WITH A PERSONALIZED WELLBEING APPROACH. IN ADDITION TO PRIORITYWELL, PRIORITY HEALTH OFFERS A WELLBEING HUB, THE ONLY DIGITAL WELLBEING SOLUTION OF ITS KIND OFFERED IN MICHIGAN, TO OFFER A PERSONALIZED ONLINE WELLNESS EXPERIENCE TAILORED TO EACH EMPLOYEE'S INDIVIDUAL NEEDS. THE WELLBEING HUB, AVAILABLE TO ALL PRIORITY HEALTH MEMBERS, OFFERS MEMBERS ACCESS TO CONTENT AND TOOLS CENTERED ON SUPPORTING STRESS MANAGEMENT, NUTRITION, WEIGHT LOSS, QUITTING TOBACCO, CHRONIC CONDITION MANAGEMENT, FINANCIAL SUPPORT, SLEEP HEALTH AND MORE. IN RECENT YEARS PRIORITY HEALTH HAS SPONSORED MANY COMMUNITY EDUCATION PROGRAMS, HEALTH FAIRS, WALKS/RUNS/TRIATHLONS AND NEWSLETTERS. DURING 2017, PRIORITY HEALTH CONTRIBUTED OVER $120,000 BY OFFERING DISCOUNT CODES TO PROMOTE WELLNESS AND SPONSOR WALKS/RUNS ACROSS THE STATE. ONE OF THE MORE SIGNIFICANT CONTRIBUTIONS WAS TO THE MSU GRAN FONDO, A CYCLING EVENT TO ACTIVELY ENGAGE THE COMMUNITY WHILE ACCELERATING SKIN CANCER AWARENESS, PREVENTION AND RESEARCH. THE FIFTH ANNUAL RIDE IN JUNE 2017 DREW MORE THAN 1,700 CYCLISTS AND WAS NAMED ONE OF AMERICA'S TOP GRAN FONDO'S FOR 2017. RIDERS PEDALED BETWEEN 10 MILES AND 80 MILES ACROSS THE ROLLING SCENIC TERRAIN OF WEST MICHIGAN. IN ITS FIRST FIVE YEARS, THE MSU GRAN FONDO RAISED MORE THAN $800,000 WITH 100% OF EVERY DOLLAR RAISED BENEFITING SKIN CANCER AWARENESS, PREVENTION AND RESEARCH. PRIORITY HEALTH HAD MORE THAN 80 REPRESENTATIVES PARTICIPATE IN THE EVENT, LOGGING NEARLY 3,500 MILES AND RAISING MORE THAN $5,600 IN SUPPORT OF HEALTHY LIVING AND CANCER RESEARCH. IN ADDITION TO THE GRAN FONDO, PRIORITY HEALTH SPONSORED THE MOVE TO THE BEATS RUN/WALK BENEFITING THE LIFETIME FOUNDATION, AUTISM ALLIANCE OF MICHIGAN & ROCK CF, A NONPROFIT DEDICATED TO INCREASING THE QUALITY OF LIFE FOR PEOPLE WITH CYSTIC FIBROSIS. THIS RACE IS PART OF THE LONGSTANDING ARTS, BEATS & EATS FESTIVAL AND HIGHLIGHTS THE IMPORTANCE OF HEALTHY LIVING WITHIN THE COMMUNITY. IN 2017, OVER 385,000 VISITORS ATTENDED THE FESTIVAL AND OVER $275,000 WAS RAISED FOR MORE THAN 60 LOCAL CHARITIES. THE 2017 ANNUAL PRIORITY HEALTH ZUMBATHON CELEBRATION HAD 1,300 PEOPLE PARTICIPATE IN A HUGE ZUMBA CLASS-STYLE EVENT AT THE FESTIVAL. NEWLY ADDED PRIORITY HEALTH PRACTICE FOR A PURPOSE YOGA CLASSES HAD MORE THAN 500 PEOPLE PARTICIPATE IN THE INAGURAL EVENT AS PART OF THE ARTS, BEATS & EATS FESTIVAL. IN ADDITION TO THE ZUMBATHON AND 5K/10K RACES, PRIORITY HEALTH ALSO SPONSORS HEALTHY OPTIONS AT THE ARTS, BEATS AND EATS FESTIVAL. PARTICIPATING RESTAURANTS ARE ENCOURAGED TO PREPARE, PRESENT, AND IDENTIFY HEALTHY FOOD ITEMS IN THE FOLLOWING CATEGORIES: LOW CARB, VEGAN, LOW FAT, GLUTEN-FREE OR SUGAR FREE. EACH PARTICIPATING RESTAURANT DISPLAYS A SIGN THAT INDICATES WHICH HEALTHY OPTIONS THEY ARE FEATURING, MAKING IT EASY FOR THOSE WHO WANT TO MAKE GOOD FOOD CHOICES, AS WELL AS THOSE NEEDING SPECIAL ACCOMMODATIONS DUE TO FOOD SENSITIVITIES AND SPECIAL DIETS. IN 2015, PRIORITY HEALTH LAUNCHED THE SILVER EXPLORERS PROGRAM, A WALKING/EDUCATIONAL SERIES AT THE JOHN BALL ZOO (GRAND RAPIDS) THAT IS AVAILABLE FOR FREE TO ALL PRIORITY HEALTH MEMBERS AGE 62 AND OVER. PARTICIPANTS GET AN INSIDE LOOK AT THE ZOO AND THE ANIMALS. EACH SESSION IS AN HOUR LONG AND STARTS WITH A LEARNING PORTION TAUGHT BY A JOHN BALL ZOO EXPERT. THE PRESENTATION IS THEN FOLLOWED BY A WALKING TOUR OF THE ZOO AND GROUNDS. AT THE END OF THE EVENT, PARTICIPANTS ARE ALLOWED TO ENJOY THE ZOO FOR THE REST OF THE DAY. IN ADDITION TO THE SILVER EXPLORERS PROGRAM, PRIORITY HEALTH TEAMED UP WITH THE JOHN BALL ZOO TO LAUNCH A PROGRAM CALLED SENIOR DAYS WHICH ALLOWS PRIORITY HEALTH MEDICARE MEMBERS TO ATTEND THE ZOO FOR FREE. IN 2017, PRIORITY HEALTH SPONSORED JUST UNDER $9,000 TO SUPPORT THESE PROGRAMS AND REACHED OVER 30 PARTICIPANTS AT EACH OF THE FIVE WEEKLY EVENTS. A NEW FEATURE IN THIS PROGRAM FOR 2017 WAS GRANDPARENTS DAY. THESE EVENTS BROUGHT IN 179 GRANDKIDS BETWEEN 2-12 YEARS OLD, 65 GRANDKIDS 12 AND OLDER, AS WELL AS 72 PRIORITY HEALTH MEDICARE MEMBERS. THE BENEFIT OF THESE PROGRAMS IS TWO-FOLD. IT ALLOWS PRIORITY HEALTH TO PARTNER WITH GREAT COMMUNITY RESOURCES, BUT ALSO PRESENTS THE OPPORTUNITY TO BE ACTIVE WHILE HAVING A GREAT TIME. PRIORITY HEALTH PARTICIPATES IN PARTNERSHIP WITH MARANDA, A WEST MICHIGAN NEWS PERSONALITY, DIRECTING MESSAGES TO CHILDREN ON HEALTH AND OTHER POSITIVE MESSAGING. MARANDA PRESENTS A TV SERIES CALLED "WHERE YOU LIVE" AND BRINGS IN EXPERTS TO TALK TO KIDS ABOUT HEALTHY LIVING. THIS PARTNERSHIP ALSO SPONSORS EVENTS THROUGHOUT WEST MICHIGAN REACHING OUT TO KIDS IN AT-RISK COMMUNITIES. IN 2017, AND EACH YEAR FOR THE PREVIOUS FIVE YEARS, $50,000 WAS CONTRIBUTED TO BENEFIT MARANDA PARK PARTIES, WHICH PROVIDE FREE HEALTH AND FITNESS ACTIVITIES FOR CHILDREN AT INNER CITY PUBLIC PARKS.
Form 990, Part III, Line 4c PROGRAM SERVICE DESCRIPTION - PRIORITY HEALTH WELLNESS (CONTINUED)	PRIORITY HEALTH PARTICIPATES IN PARTNERSHIP WITH THE WXYZ COMMUNITY ACTION TEAM, TO SUPPORT THE COMMUNITY IN EASTERN MICHIGAN. THE PARTNERSHIP SUPPORTS THE WXYZ TREE LIGHTING CEREMONY AND VARIOUS NON-PROFIT PROJECTS INCLUDING HABITAT FOR HUMANITY. IT ALSO ENABLES PRIORITY HEALTH TO CREATE PUBLIC SERVICE ANNOUNCEMENTS THAT AIR THROUGHOUT THE YEAR. IN 2017, AS WELL AS THE TWO PREVIOUS YEARS, PRIORITY HEALTH SPONSORED $180,000 TO SUPPORT THE EFFORTS OF THE PARTNERSHIP WITH THE WXYZ COMMUNITY ACTION TEAM. PRIORITY HEALTH CONDUCTS FREE WELLNESS CLASSES THROUGHOUT THE STATE. THE BROADER COMMUNITY IS WELCOME TO ATTEND CLASSES THAT EDUCATE THE COMMUNITY IN TOPICS SUCH AS NUTRITION, FITNESS AND PREVENTION. PRIORITY HEALTH PARTNERED WITH AM YOGA TO PROVIDE MONTHLY COMMUNITY YOGA AT THE GRAND RAPIDS ART MUSEUM (GRAM). PRIORITY HEALTH SPONSORS THIS PROGRAM AND CONTRIBUTED $5,000 IN 2017. THIS SPONSORSHIP PROVIDES ACCESS TO HEALTH AND WELLNESS THAT PEOPLE MAY NOT NORMALLY BE ABLE TO AFFORD. THE DONATIONS FROM EACH CLASS ARE THEN TURNED AROUND TO PROVIDE YOGA TO OTHER AREAS AND COMMUNITIES THAT MAY NOT HAVE ACCESS. IN 2017, PRIORITY HEALTH CONTRIBUTED $10,000 TO THE AMERICAN HEART ASSOCIATION'S (AHA) PROGRAM CALLED GO RED FOR WOMEN DESIGNED TO CREATE AWARENESS OF THE ISSUE OF WOMEN AND HEART DISEASE. FINANCIAL SUPPORT HELPS FUND THE AHA PROGRAMS AND INITIATIVES TO ADVANCE THE MISSION TO BUILD HEALTHIER LIVES, FREE OF CARDIOVASCULAR DISEASES AND STROKE. PRIORITY HEALTH SUPPORTS THE AHA'S GOAL OF SEEKING WAYS TO INCREASE COMMUNICATION WITH THE PUBLIC AND TO CREATE TOOLS AND RESOURCES TO HELP THEM MANAGE AND PREVENT HEART DISEASE. IN 2017 PRIORITY HEALTH ALSO PARTNERED WITH THE DETROIT RED WINGS TO PROMOTE HEALTHLY LIFESTYLES INCLUDING RUNNING A PROMOTIONAL CAMPAIGN TO REACH RED WINGS FANS TO ENCOURAGE THEM TO STAY HEALTHY AND ACTIVE. SOCIAL MEDIA FOLLOWERS OF THE RED WINGS WERE ENCOURAGED TO TAKE PICTURES OF THEMSELVES BEING ACTIVE WITH THE OPPORTUNITY TO EARN FREE TICKETS TO FUTURE GAMES. TOGETHER, PRIORITY HEALTH AND THE DETROIT RED WINGS WERE ABLE TO REACH COUNTLESS LOYAL FANS WHILE PROMOTING HEALTH AND WELLNESS. PRIORITY HEALTH CONTRIBUTES OVER $370,000 ANNUALLY TO PROVIDE HEALTH AND WELLNESS COMMUNICATION TO INDIVIDUALS ACROSS MICHIGAN. THINK-HEALTH, A DIGITAL MAGAZINE, IS RELEASED BY PRIORITY HEALTH TO SUPPORT CONSUMERS AND BUSINESS OWNERS AS THEY MAKE HEALTH CARE DECISIONS. THINK HEALTH FEATURES PRIORITY HEALTH EXPERTS AS WELL AS OTHER THOUGHT LEADERS AND THIRD-PARTY ORGANIZATIONS ACROSS THE HEALTH INSURANCE, HEALTH CARE TECHNOLOGY AND FITNESS INDUSTRIES. THE SITE ALSO HIGHLIGHTS PERSONAL STORIES FROM INDIVIDUALS LOOKING TO IMPROVE THEIR HEALTH AND INSPIRE OTHERS, AS WELL AS INSIDER TIPS ON HOW TO GET INVOLVED IN ACTIVITY-RELATED EVENTS ACROSS MICHIGAN. IN TOTAL, PRIORITY HEALTH SUPPORTED HEALTH AND SOCIAL WELFARE ACTIVITIES VIA CONTRIBUTIONS OF OVER $940,000 IN 2017 IN AN EFFORT TO IMPROVE HEALTH SERVICES AND CONDITIONS IN NEIGHBORHOODS, WORKPLACES, AND SCHOOLS THROUGHOUT THE COMMUNITIES IT SERVES.
Form 990, Part III, Line 4b PRIORITY HEALTH SENIOR MARKETS	PRIORITY HEALTH BEGAN OFFERING MEDICARE ADVANTAGE PLANS IN JULY 2005 AND MEDICARE ADVANTAGE PLANS WITH PRESCRIPTION DRUG COVERAGE IN JANUARY 2006. ITS MEDICARE ADVANTAGE PLANS VARY IN PRICE BASED ON WHERE MEMBERS LIVE AND WHAT BENEFITS THEY NEED. MORE THAN 130,000 MICHIGANDERS HAVE A PRIORITY HEALTH MEDICARE ADVANTAGE PLAN, AND MORE THAN 15,000 CHOSE A PRIORITY HEALTH MEDICARE SUPPLEMENT PLAN, ALSO KNOWN AS MEDIGAP. PRIORITY HEALTH'S MEDICARE PROGRAM HAS ONE OF THE LOWEST HOSPITAL READMISSION RATES IN THE COUNTRY. PRIORITY HEALTH STRIVES TO WORK WITH THE COMMUNITY AND MAKE MEDICARE SIMPLE TO UNDERSTAND. THAT IS WHY IT WROTE AND PUBLISHED "MEDICARE ADVANTAGE FOR DUMMIES." IT WAS WRITTEN IN COOPERATION WITH WILEY PUBLISHING, OWNERS OF THE DUMMIES SERIES. THE BOOK HAS BEEN DISTRIBUTED FREE TO OVER 255,000 PEOPLE ACROSS MICHIGAN AND DOWNLOADED COUNTLESS TIMES AS IT IS NOW AVAILABLE ELECTRONICALLY AS AN E-BOOK. AS A RESULT OF PRIORITY HEALTH'S WORK WITH THE COMMUNITY AND DEDICATION TO OFFERING PLANS THAT DELIVER HIGH QUALITY, ITS MEDICARE HMO-POS ADVANTAGE PLANS HAVE RECEIVED THE ACCREDITATION STATUS OF "COMMENDABLE," THREE PRIORITY HEALTH 2017 MEDICARE ADVANTAGE PLANS WITH PRESCRIPTION DRUG COVERAGE WERE AWARDED 4.5 OUT OF 5 STARS BY THE CENTERS FOR MEDICARE AND MEDICAID SERVICES (CMS). THE MEDICARE STAR RATINGS INDICATE HOW WELL A HEALTH PLAN PERFORMS OVERALL; THE BETTER THE STAR RATING, THE BETTER THE CARE THAT IS DELIVERED. OF THE 44 QUALITY AND IMPROVEMENTS METRICS USED TO DETERMINE OUR OVERALL QUALITY RATING OF 4.5, APPROXIMATELY 86% OF THE METRICS WERE EITHER 4 STAR OR 5 STAR. PRIORITY HEALTH IS ABLE TO PROVIDE ITS MEMBERS HIGH QUALITY MEDICARE ADVANTAGE PLANS WHILE REMAINING AMONG THE LOWEST COST (RISK AND BENEFIT ADJUSTED) PLANS IN THE COUNTRY. MEDICARE ADVANTAGE MEMBERS CAN ENROLL EITHER INDIVIDUALLY, OR THROUGH AN EMPLOYER GROUP. DURING THE 2017 MEDICARE ANNUAL ENROLLMENT PERIOD (AEP), PRIORITY HEALTH ENROLLED 41% OF THE INDIVIDUALS WHO PURCHASED A MAPD PLAN IN MICHIGAN FROM OCTOBER 15 - DECEMBER 7, 2016. PRIORITY HEALTH'S MEDICARE ADVANTAGE ENROLLMENT INCLUDES ABOUT 108,500 INDIVIDUAL ADVANTAGE MEMBERS, OR JUST OVER 31% OF THE TOTAL INDIVIDUAL MEDICARE ADVANTAGE MARKET, MAKING PRIORITY HEALTH THE LEADER IN MICHIGAN. INDIVIDUAL MEDICARE ADVANTAGE IS OFFERED IN ALL 68 COUNTIES IN MICHIGAN'S LOWER PENINSULA. PRIORITY HEALTH'S NETWORK HAS MORE THAN 38,000 PROVIDERS. IN 2012, PRIORITY HEALTH LAUNCHED HOME BASED PRIMARY CARE (HBPC) AS A PILOT WITH OUR AFFILIATE, SPECTRUM HEALTH MEDICAL GROUP (SHMG). HBPC BRINGS THE CARE TEAM INTO THE HOME OF PATIENTS THAT ARE AT THE FAR END OF THE POPULATION HEALTH CONTINUUM, THE ADVANCED CHRONICALLY ILL, WHOSE MULTIPLE MEDICAL CONDITIONS ARE COMPLICATED BY FUNCTIONAL AND/OR COGNITIVE LIMITATIONS THAT MAKE IT DIFFICULT FOR THEM TO ADEQUATELY ACCESS THE TRADITIONAL AMBULATORY PHYSICIAN OFFICE. IN ADDITION TO PRIORITY HEALTH CHANGING HOW THE PATIENT ACCESSES THEIR CARE, THERE IS NOW A TEAM BASED MODEL OF CARE TO MEET ALL THE NEEDS OF THE PATIENT. MOST OF THE PATIENTS IN THE PROGRAM ARE MEMBERS OF PRIORITY HEALTH'S MEDICARE ADVANTAGE PROGRAM, ALTHOUGH SOME ARE COVERED BY MEDICAID OR PRIVATE INSURANCE. IN 2017, PRIORITY HEALTH CONTINUED ITS ENGAGEMENT WITH PATIENTS HAVING ADVANCED ILLNESS WHICH RESULTED IN NEARLY $500,000 IN SAVINGS BY REACHING MEMBERS ENROLLED IN HBPC PROGRAMS. IN 2014, PRIORITY HEALTH DEVELOPED A PILOT PROGRAM DESIGNED TO DELIVER COMPLEX CARE MANAGEMENT SERVICES TO VULNERABLE SENIORS. SIMILAR TO HBPC, THIS REPRESENTS AN INNOVATIVE CONCEPT AIMED AT HELPING OLDER ADULTS NAVIGATE THE COMPLEXITIES OF HEALTH CARE WHILE ENABLING THEM TO REMAIN IN THEIR HOMES. THROUGH THE ENGAGEMENT OF 150 PILOT MEMBERS, THE AVERAGE HEALTH CARE COST PER MEMBER DECREASED BY 35%, ER VISITS DECREASED BY 52%, SPECIALTY VISITS DECREASED BY 46%, AND INPATIENT OUTPATIENT VISITS DECREASED BY 38%. PRIORITY HEALTH EXPANDED THE PROGRAM AND IN 2017 SERVED APPROXIMATELY 1,000 SENIORS IN TWO MICHIGAN COUNTIES (KENT AND OTTAWA), WITH PLANS TO EXPAND INTO ALLEGAN COUNTY. THE SENIORS REACHED WERE PRIMARILY MEDICARE ADVANTAGE ENROLLEES INSURED BY PRIORITY HEALTH. CHRONIC CONDITIONS ARE LEADING CONTRIBUTORS TO RISING HEALTH CARE COSTS NATIONWIDE. TO ADDRESS THIS, PRIORITY HEALTH LAUNCHED THE MEDICATION THERAPY MANAGEMENT (MTM) PILOT PROGRAM WITH ITS MEDICARE MEMBERS. THE MTM PILOT PROGRAM OFFERED PRIORITY HEALTH MEDICARE MEMBERS THE OPPORTUNITY TO MEET ONE-ON-ONE WITH PHARMACISTS TO REVIEW ALL OF THEIR MEDICATIONS INCLUDING PRESCRIPTIONS, OVER-THE-COUNTER DRUGS, AND HERBAL AND VITAMIN SUPPLEMENTS. COMPLEX MEDICATION REGIMENS CREATE SIGNIFICANT CHALLENGES FOR PATIENTS LIVING WITH CHRONIC ILLNESS, THEIR CAREGIVERS, HEALTH CARE PROVIDERS AND THE HEALTH CARE SYSTEM AS A WHOLE. THE IMPACT OF MEDICATION-RELATED PROBLEMS CAN BE MINIMIZED THROUGH A STRUCTURED MTM PROGRAM THAT USES PHARMACISTS WORKING COLLABORATIVELY WITH THE PATIENT AND THE PATIENT'S HEALTH CARE PROVIDERS. RETAIL AND OFFICE-BASED PHARMACISTS WILL WORK WITH PATIENTS AND PROVIDERS TO ADDRESS DRUG-RELATED PROBLEMS AND COMPLETE COMPREHENSIVE MEDICATION REVIEWS. IN 2015, PRIORITY HEALTH EXPANDED ITS MTM PROGRAM TO COMMERCIAL AND MEDICAID MEMBERS. WITH THIS MOVE, PRIORITY HEALTH BECAME THE FIRST HEALTH PLAN IN THE STATE TO EXPAND THE PROGRAM TO BOTH ITS MEDICARE AND EMPLOYER-SPONSORED HEALTH PLANS. IN 2017, PRIORITY HEALTH ENGAGED OVER 57,000 MEDICARE MEMBERS IN THE MTM PROGRAM AND REDUCED THE COST OF CARE FOR ENGAGED MEDICARE MEMBERS BY AN ESTIMATED $720 PER YEAR. IN ADDITION, PRIORITY HEALTH ENGAGED OVER 59,000 COMMERICAL AND MEDICAID MEMBERS IN PHARMACY MANAGEMENT PROGRAMS. PRIORITY HEALTH WAS ABLE TO LOWER THE ANNUAL COST OF CARE FOR COMMERCIAL AND MEDICAID MEMBERS $660 AND $480, RESPECTIVELY.
Form 990, Part III, Line 4b PRIORITY HEALTH SENIOR MARKETS (CONTINUED)	PRIORITY HEALTH IMPLEMENTED A NEW CLINICAL QUALITY INITIATIVE TO ENHANCE THE QUALITY OF POST-ACUTE CARE (PAC) SERVICES. THE RESEARCH AND DEVELOPMENT OF THIS POST-ACUTE MODEL OF CARE BEGAN IN 2013, AND WAS IMPLEMENTED IN 2014. THIS INITIATIVE FOCUSES ON WHAT IS BEST FOR THE PATIENT AND THE HOLISTIC MANAGEMENT OF PATIENT CARE THROUGH DISCHARGE PLANNERS, REHABILITATION THERAPISTS, SOCIAL WORKERS AND PRIORITY HEALTH CARE MANAGERS. DATA-DRIVEN INFORMATION WILL HELP PATIENTS AND THEIR FAMILIES UNDERSTAND WHAT TO EXPECT AT DISCHARGE AND THROUGHOUT THE REHABILITATION PERIOD. THE BENEFITS OF THIS INITIATIVE INCLUDE LOWER HOSPITAL ADMISSION RATES, OPTIMAL DISCHARGE SETTING EARLIER IN THE HOSPITAL STAY, EASIER MANAGEMENT OF PATIENT/FAMILY EXPECTATIONS, AND IDENTIFYING THE HIGHEST QUALITY PROVIDERS IN THE COMMUNITY. THIS DATA-DRIVEN APPROACH TO REHABILITATION HAS SUCCESSFULLY PROVEN TO IMPROVE EFFICIENCY AND QUALITY OF CARE FOR MEDICARE PATIENTS. PRIORITY HEALTH HAS SEEN HOSPITAL READMISSION RATES DECREASE, LENGTH OF HOSPITAL STAYS REDUCED AND ACCESS TO POST-SURGICAL SERVICES IMPROVED. IN 2017, PRIORITY HEALTH RECEIVED A PINNACLE AWARD FOR ITS MEDICARE CARE MANAGEMENT HYBRID PROGRAM. THE CARE MANAGEMENT TEAM UNDERSTANDS AND ACKNOWLEDGES THAT SOCIAL DETERMINANTS OF HEALTH IMPACT DISEASE MANAGEMENT. WHILE DATA SCIENCE CONTINUES TO EVOLVE AND IMPROVE IN ITS ABILITY TO IDENTIFY THESE NON-CLAIMS DRIVEN INDICATORS OF RISK, IT IS DIFFICULT FOR THE USUAL METHODS OF CARE MANAGEMENT TO IDENTIFY AND ADDRESS THEM. PRIORITY HEALTH LAUNCED ITS HYBRID PROGRAM AS AN AT-HOME CARE MANAGEMENT PROGRAM TO ADDRESS THE FULL BURDEN OF ILLNESS AND SOCIO-DEMOGRAPHIC RISK FACTORS FOR MEDICARE MEMBERS. AS A RESULT, PRIORITY HEALTH HAS OBSERVED LOWER ADMISSION RATES THAN STATE AND NATIONAL AVERAGES THANKS IN PART TO INTERDISCIPLINARY TEAMS THAT PROVIDE A QUICK RESPONSE TO CONDITION DESTABILIZATION.
Form 990, Part IV, Line 12a Audited Financial Statements	The organization's financial statements are audited annually by an independent accounting firm. The "No" response to these questions relates to the fact that the GAAP basis financial statements were prepared on a consolidated basis and not on a stand alone basis. The organization is audited annually on a stand alone basis and issued financial statements on a stand alone basis which are prepared in accordance with SAP (Statutory Accounting Principles), as required by regulatory authorities. The figures in this Form 990 reconcile to the financial statements prepared under statutory accounting principles as submitted to the State of Michigan and the National Association of Insurance Commissioners (NAIC).
Form 990, Part V, Line 2a NUMBER OF EMPLOYEES REPORTED ON FORM W-3	ALL EMPLOYEES OF PRIORITY HEALTH WERE EMPLOYED DURING THE YEAR BY SPECTRUM HEALTH SYSTEM (38-3382353) AND LEASED BACK TO PRIORITY HEALTH. SALARIES AND WAGES, EMPLOYEE BENEFITS AND PAYROLL TAXES ARE ALLOCATED TO PRIORITY HEALTH VIA A MANAGEMENT FEE. THE SALARIES AND WAGES REPORTED IN PART IX STATEMENT OF FUNCTIONAL EXPENSES REFLECTS THE PORTION OF SALARIES AND WAGES ALLOCATED TO PRIORITY HEALTH. SPECTRUM HEALTH SYSTEM FILED ALL APPLICABLE IRS TAX FILINGS INCLUDING FORMS W-2 AND W-3 ON BEHALF OF PRIORITY HEALTH.
Form 990, Part VI, Line 1a Delegate broad authority to a committee	Committees - The Chair of the Board of Directors may establish such standing or special committees from time to time as he or she will deem appropriate to conduct the activities of the corporation, and will define the powers and responsibilities of such committees. Persons who are not members of the Board of Directors will be eligible to serve on committees other than the Executive Committee. The members and chair of all committees will be appointed by the Chair of the Board of Directors for a one (1) year term or until their successors are duly elected, but will be subject to removal at any time by the Chair of the Board of Directors. A committee will have the specific powers and responsibilities as determined by the Board of Directors excluding those powers and responsibilities retained by the shareholders or Board of Directors pursuant to the Articles of Incorporation or Bylaws of the corporation. Executive Committee - The Chair of the Board of Directors may appoint an Executive Committee consisting of the Chair of the Board of Directors, the Vice Chair, and such additional directors as the Chair of the Board of Directors may determine from time to time. The Executive Committee may exercise all powers and authority of the Board of Directors in managing the corporation between meetings of the Board of Directors (within the limits prescribed by the Articles of Incorporation or Bylaws of the corporation or by law) or may have such specific powers and responsibilities as determined by the Chair of the Board of Directors.
Form 990, Part VI, Line 2 Family/business relationships amongst interested persons	CERTAIN MEMBERS OF THE BOARD OF DIRECTORS AND OFFICERS OF THE ORGANIZATION ALSO SERVE ON THE BOARD OF DIRECTORS AND/OR AS OFFICERS OF RELATED TAXABLE ENTITIES - Business relationship
Form 990, Part VI, Line 4 Significant changes to organizational documents	The governing documents were updated to provide directors full limitation of liability under State law, provide directors and officers mandatory indemnification, alignment of articles of incorporation and bylaws by removing duplicative provisions to prevent any future discrepancies from arising between the two governing documents, and allowing for subsidiary bylaws to be approved by subsidiary directors with notice to the Priority Health Board.
Form 990, Part VI, Line 6 Classes of members or stockholders	The Organization has three shareholders as follows: Spectrum Health System (EIN 38-3382353), Class A Shareholder - 93.9% Munson Healthcare (EIN 38-2640544), Class B Shareholder - 5.5% McLaren Northern Michigan (EIN 38-2146751), Class B Shareholder - 0.6% All Shareholders are tax-exempt Internal Revenue Code Section 501(c)(3) organizations.
Form 990, Part VI, Line 7a Members or stockholders electing members of governing body	Election of Members and Their Rights From Priority Health bylaws: 6.2 Number and Class of Directors. The Board of Directors will be composed of not less than fifteen (15) and not more than twenty-one (21) members, which will be divided into the following classes: 6.2.1 One-third (1/3) of the directors will be adult enrollees as specified under MCL Section 500.3511(1) and elected pursuant to Section 6.3 below. At least one (1) of such adult enrollee directors will be from the corporation's Northern service area that is also served by the Class B Shareholders (the Northern Shareholders). 6.2.2 Two (2) of the directors will be appointed jointly by the Class B Shareholders. Of such directors, one (1) will be a physician. 6.2.3 The remainder of the directors (not less than eight (8)) will be appointed by the Class A Shareholder. 6.3 Election of Adult Enrollee Members. The Governance Committee or similarly delegated committee of the Board of Directors will solicit names of potential candidates from the members, shareholders, directors and community. The Committee will submit to the Board of Directors a list of nominees for election to the Board of Directors as adult enrollee representatives. At least one (1) member will be nominated for each directorship to be filled at such annual meeting. No more than two (2) persons employed by or affiliated with any one (1) employer or other group may be nominated. 6.4 Term. The adult enrollee members will be divided into three (3) classes, which will be as evenly divided as possible. The terms of office of the classes will expire in three (3) successive years, with one (1) class expiring each year. Each elected director will be elected for a term of three (3) years (except for the directors elected immediately after adoption of this Section 6.4 who will serve the terms designated by the Board of Directors). The directors appointed by the Class A and Class B Shareholders will serve one (1) year terms or until such time as their successor is appointed. 6.5 Vacancies. Any vacancy in a Board of Director position designated by the Class A and Class B Shareholders will be filled by the Class A and Class B Shareholders, respectively. Any vacancy in a position for an adult enrollee will be filled by the remaining adult enrollees on the Board of Directors. Each person appointed to fill a vacancy will complete the unexpired portion of the original term of the director being replaced or such term as designated by the shareholder, following non-binding consultation with the Chairperson of the corporation's Board; or (ii) allow the seat to remain vacant until an individual is appointed by the shareholder pursuant to Section 6.4 of these Bylaws.
Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders	Decisions Subject to Approval of shareholders (Not Members) Certain decisions are subject to approval of shareholders. From Priority Health bylaws: 2.2 Class A Shareholder's Reserved Powers. The Class A Shareholder shall have the reserved powers set forth in this Section 2.2. The corporation's Board of Directors may recommend action to the Class A Shareholder with respect to the reserved powers set forth in this Section 2.2. The actions listed below may, notwithstanding any other provision of these Bylaws or the Articles, be unilaterally caused and/or taken by the Class A Shareholder, within its sole and exclusive power and discretion, and shall not be deemed authorized unless and until approved by the Class A Shareholder: 2.2.1 Amendment of the Articles of Incorporation or Bylaws of the corporation as provided in Section 13.1 of these Bylaws; 2.2.2 Election and/or removal of the Class A Shareholder-appointed members of the corporation's Board of Directors pursuant to Article VI of these Bylaws; 2.2.3 Election and/or removal of the corporation's Chairperson of the Board of Directors; 2.2.4 Hiring, discharge, and evaluation of the corporation's President following consultation with the corporation's Board of Directors pursuant to Section 7.3; 2.2.5 Adoption of the corporation's strategic plan(s); 2.2.6 Adoption of the corporation's annual operating and capital budgets, and any amendments to such budgets in excess of the Authority Matrix Amount; 2.2.7 All capital expenditures by the corporation in excess of that amount (the "Authority Matrix Amount") set forth in the Authority Matrix for Capital Expenditures and Loans to Non-Spectrum Health Entities (the "Expenditure Authority Matrix"), a current copy of which is attached hereto as Exhibit A and which may be amended from time to time by Spectrum Health System ("Spectrum Health"); 2.2.8 All borrowings or guarantees of indebtedness by the corporation (or any entity controlled by the corporation), including any operating lease in an amount greater than one million dollars ($1,000,000.00) during the initial lease term, not including renewals and/or extensions; 2.2.9 All lending by the corporation (or any entity controlled by the corporation) to persons other than Spectrum Health or an entity controlled by Spectrum Health in excess of the Authority Matrix Amount; 2.2.10 The corporation's investments of cash and/or reserves, whether on an individual basis or as part of a pooled investment strategy; 2.2.11 Any merger or consolidation of the corporation (or any entity controlled by the corporation), or any other change in ownership percentages, control, or capital structure of the corporation (or any entity controlled by the corporation); 2.2.12 The purchase of all, or a majority of, another corporation, limited liability company, partnership or other legal entity's stock, membership interest, partnership interest, other ownership interest, or assets; 2.2.13 The creation of any entity controlled, directly or indirectly, by the corporation; 2.2.14 The sale or transfer of more than ten percent (10%) of the assets of the corporation (or any entity controlled by the corporation) to any person or entity not controlled by Spectrum Health; 2.2.15 Dissolution of the corporation; 2.2.16 The selection, retention, and oversight of the outside auditors for the corporation (or any entity controlled by the corporation) and 2.2.17 In other cases when required by law or as otherwise provided in these Bylaws. The Class A Shareholder, prior to exercising any of the reserved powers set forth above, shall notify the Class B Shareholder (provided such action is not taken at a duly called meeting of the shareholders, Board of Directors or any designated committee). 2.3 Class B Shareholders' Reserved Powers. The Class B Shareholders shall have the reserved powers set forth in this Section 2.3. The corporation's Board of Directors may recommend action to the Class B Shareholders with respect to the reserved powers set forth in this Section 2.3. The Class B Shareholders may, notwithstanding any other provision of these Bylaws or the Articles, act jointly, within their sole and exclusive powers and discretion, elect and/or remove the Class B Shareholder-appointed members of the corporation's Board of Directors pursuant to Article VI of these Bylaws. 2.4 Compliance with Spectrum Health Policies. Notwithstanding anything contained in these Bylaws to the contrary, the corporation and its subsidiaries shall at all times comply with and implement Spectrum Health policies and procedures approved by the President and Chief Executive Officer of Spectrum Health, or his/her designee as being specifically applicable to the corporation, except to the extent that such compliance and/or implementation would (a) materially and negatively impact the rights, powers, or preferences of the Class B Shareholders; or (b) be noncompliant with applicable laws and/or regulations.
Form 990, Part VI, Line 11b Review of form 990 by governing body	The review process for this Form 990 is as follows: 1. Preparation of the return is supervised and reviewed by the organization's Corporate Tax Manager. 2. A second review is performed by an external CPA firm with expertise in tax-exempt return preparation. 3. The return is reviewed by the organization's finance and legal departments (Including the SVP, Finance; SVP, General Counsel; VP, Controller) and shared with the members of the finance committee and board of directors. 4. The organization's SVP, Finance reviews comments or questions received by members of the Board of Directors, if any, to address or to incorporate, as appropriate, into the return prior to filing.
Form 990, Part VI, Line 12c Conflict of interest policy	BOARD OF DIRECTORS 1. Conflicts of interest must be disclosed, BOTH VIA AN ANNUAL ELECTRONIC DISCLOSURE PROCESS as well as verbally at a board meeting prior to discussion of any agenda item with regard to which a board member has a conflict. 2. A person having a financial interest in a proposed transaction or arrangement may make a presentation at a meeting of the Board of Directors or committee considering that transaction or arrangement, but after that presentation he or she shall leave the meeting during discussion and voting on that proposed transaction or arrangement. The person having the financial interest shall not be counted in determining whether a quorum is present. 3. The chairperson of the Board of Directors or committee shall, if appropriate, appoint a disinterested person or committee (including outside advisors) to investigate alternatives to the proposed transaction or arrangement, and to advise whether the proposed transaction or arrangement is in the organization's best interest. 4. The Board of Directors or committee shall exercise due diligence to determine whether the organization can, with reasonable efforts, obtain a more advantageous transaction or arrangement that would not give rise to a conflict of interest. 5. If a more advantageous transaction or arrangement is not reasonably attainable under circumstances that would not give rise to a conflict of interest, the Board of Directors or committee shall determine by a majority vote of the disinterested directors and members whether the proposed transaction or arrangement is in the organization's best interest and for its own benefit and whether the transaction is fair and reasonable to the organization, and shall make its decision as to whether to enter into the transaction or arrangement in conformity with such determination. 6. The minutes of the meetings of the Board of Directors and all of the organization's committees shall set forth: a)The names of the persons who disclosed a financial interest in a proposed transaction or arrangement involving the organization or any of its subsidiaries and the nature of the financial interest; and b)The names of the persons who were present for discussions and votes relating to such transaction or arrangement, including any discussion of alternatives to the proposed transaction or arrangement, and a record of any votes taken in connection with that matter. The votes of individual members need not be recorded unless otherwise directed by the Board of Directors or committee. 7. There is an ongoing requirement that members of the board of directors complete another disclosure questionnaire at any point during his/her tenure on the board of directors when a new potential conflict of interest arises. If a member of the board of directors completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments for review. MANAGEMENT 1. Upon acceptance of an employment offer, each member of management completes a conflict of interest disclosure questionnaire. A copy of the member of management's disclosure questionnaire is sent to the Organizational Integrity Department. A copy of the member of management's disclosure is reviewed by the organization's COI coordinator and escalated to the COI Committee if necessary. 2. Annually, each member of management completes an annual conflict of interest disclosure questionnaire electronically. The disclosure questionnaire is reviewed by the legal, organizational integrity, internal audit, and human resources departments. 3. There is an ongoing requirement that members of management complete another disclosure questionnaire at any point during his/her employment when a new potential conflict of interest arises. If a member of management completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments. 4. The legal, organizational integrity, internal audit, and human resources departments, in consultation with executive management, determine how any reported conflicts should be managed. Management of a conflict may take a variety of different forms from implementation of a management plan to requiring that the member of management cease the activity creating the conflict or, in extreme cases, leave the organization's employment. Management is determined on an individual basis based upon the facts and circumstances surrounding the disclosure. The purpose of conflict management is to provide transparency within the organization and to ensure that the organization's employees are always acting in the best interest of the organization.
Form 990, Part VI, Line 15a Process to establish compensation of top management official	The Spectrum Health System Board of Directors (through its Executive Committee) uses the following process for determining compensation of the top management official, other officers, and key employees at Priority Health. Labor market data reflecting comparable organizations and jobs (prepared by independent firms) are relied upon. Competitive assessment reports are provided to the Executive Committee in advance of meetings. The competitive assessment report is prepared by a nationally known independent executive compensation firm. For calendar 2017 (1/1/17-12/31/17), four health care executive compensation surveys, three medical group surveys, two pediatric hospital surveys and one health plan survey prepared by independent firms were the primary sources referenced to obtain market data for the review: * Integrated Healthcare Strategies: 2015 Children's Hospitals Executive Compensation Survey * Integrated Healthcare Strategies: 2016 Health Care Executive Compensation Survey * Mercer: 2016 Integrated Health Networks Compensation Survey * Medical Group Management Association: 2016 Management Compensation Survey * Sullivan, Cotter and Associates: 2016 Survey of Manager and Executive Compensation in Hospitals and Health Systems * Sullivan, Cotter and Associates: 2016 Custom Survey of Manager and Executive Compensation in Children's Hospitals * Sullivan, Cotter and Associates: 2016 Physician Compensation and Productivity Survey Report * Towers Watson: 2016 Hospital and Health Care Management Compensation Survey Report * Warren: Fall 2016 HMO Salary Survey In addition, one retirement community survey and four general industry surveys were referenced: * Rodeghero Consulting Group, Inc.: 2016 AAHA-CEMO Leadership Compensation Survey * Mercer: 2016 Executive Compensation Survey * Mercer: 2016 Information Technology Survey * Mercer: 2016 Human Resources Survey * Towers Watson: 2016 Top Management Compensation Report In addition to the above data sources, the Executive Committee approved the creation of a custom peer group of high performing integrated health systems to ensure robust data and a relevant comparator universe. The peer group organizations are approved by the Executive Committee and consist of double A bond rated and / or Truven top quintile organizations. Data for the peer group organizations is compiled by the independent executive compensation firm. Compensation adjustments are approved by Executive Committee members, consistent with the Spectrum Health compensation philosophy described below. Minutes of Committee discussions and decisions are prepared to memorialize Executive Committee decisions based upon the above data. Cash compensation data relied upon by the Executive Committee is national and reflects the compensation paid to executives in comparable jobs in comparably-sized health care and / or health insurance organizations. Spectrum Health recruits nationally for its executives. Benefits data reflect national health care / health insurance market practices. Geographic pay differential and cost of living data indicates consistency with national data. This process is intended to assist Spectrum Health in qualifying for the rebuttable presumption of reasonableness (Intermediate Sanctions Regulations) and complying with the potential Spectrum Health Excess Benefit Transaction Policy for those individuals in the group who are disqualified persons. The opinion submitted from the third party independent consulting firm is in accordance with the provisions of Treasury Regulations Section 53.4958-6(c)(2) and is also intended to satisfy the professional advice requirement of Treasury Regulations Section 53.4958-1(d)(4)(iii).
Form 990, Part VI, Line 15b Process to establish compensation of other employees	See explanation provided for Form 990, Part VI, Line 15a.
Form 990, Part VI, Line 19 Required documents available to the public	The organization's Articles of Incorporation and Statutory Financial Statements are on file with the State of Michigan and available to the public on the State's website. The organization's bylaws and internal policies are generally not made available to the public. The overall system consolidated financial statements are provided at www.spectrumhealth.org in the section titled "about us." Financial performance is discussed at an annual public meeting held and posted to www.spectrumhealth.org annually (under the section titled "about us").
Form 990, Part VII, Section A, Line 2 Individuals Compensated more than $100,000	There are no individuals reported due to the integration with Spectrum Health System. Refer to the disclosure for Form 990, Part V, Line 2a for further detail.
Form 990, Part VII, Section A COMPENSATION OF DIRECTORS	BASED ON EXTERNAL OPINION BY SULLIVAN COTTER AND ASSOCIATES, INC., PRIORITY HEALTH COMPENSATES BOARD MEMBERS IN A MANNER THAT IS REASONABLE IN RELATION TO MARKET DATA. BOARD OF DIRECTORS COMPENSATION IS REVIEWED ANNUALLY BY INTERNAL STAFF TO CONFIRM COMPENSATION FALLS WITHIN REASONABLE LIMITS. ANY COMPENSATION AMOUNT IS TREATED AS TAXABLE TO THE BOARD MEMBER AND IS REPORTED AND PROVIDED TO THEM ON FORM 1099, AS REQUIRED ACCORDING TO THE REPORTING THRESHOLDS. CERTAIN BOARD MEMBERS ARE EMPLOYED BY A RELATED ORGANIZATION. COMPENSATION REPORTED IN PART VII, SECTION A, COLUMN E IS FOR SERVICES PERFORMED FOR THE RELATED ORGANIZATION, NOT THE FILING ORGANIZATION.
Form 990, Part XI, Line 9 Other changes in net assets or fund balances	Change in nonadmitted assets - -17089917; Net unrealized gain(loss) on subsidiaries - 18803934; Change in surplus notes - -6000000;
Form 990, Part XII, Line 2b Audited Financial Statements	The organization's financial statements are audited annually by an independent accounting firm. The organization issued GAAP basis financial statements which are prepared on a consolidated basis and not on a stand alone basis. The organization is audited annually on a stand alone basis and issued financial statements on a stand alone basis which are prepared in accordance with SAP (Statutory Accounting Principles), as required by regulatory authorities. The figures in this Form 990 reconcile to the financial statements prepared under statutory accounting principles as submitted to the State of Michigan and the National Association of Insurance Commissioners (NAIC).

Schedule R IRS990ScheduleR

Id Disregarded Entities IdDisregardedEntitiesGrp

Disregarded Entity Name DisregardedEntityName

Field	Value	IRS element (for citing)
Business Name Line1	PHMB PROPERTIES LLC	BusinessNameLine1Txt

US Address USAddress

Field	Value	IRS element (for citing)
Address Line1	1231 EAST BELTLINE NE	AddressLine1Txt
City	GRAND RAPIDS	CityNm
State Abbreviation	MI	StateAbbreviationCd
ZIP	49525	ZIPCd

Field	Value	IRS element (for citing)
EIN	382715520	EIN
Primary Activities	PROP. MGMT	PrimaryActivitiesTxt
Legal Domicile State	MI	LegalDomicileStateCd
Total Income	$3,767,429	TotalIncomeAmt
End Of Year Assets	$23,470,109	EndOfYearAssetsAmt

Direct Controlling Entity Name DirectControllingEntityName

Field	Value	IRS element (for citing)
Business Name Line1	PRIORITY HEALTH	BusinessNameLine1Txt

Id Related Tax Exempt Org IdRelatedTaxExemptOrgGrp (14 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	EINEIN	Primary ActivitiesPrimaryActivitiesTxt	Legal Domicile StateLegalDomicileStateCd	Exempt Code SectionExemptCodeSectionTxt	Public Charity StatusPublicCharityStatusTxt	Business Name Line1DirectControllingEntityName/BusinessNameLine1Txt	Controlled OrganizationControlledOrganizationInd
SPECTRUM HEALTH SYSTEM
100 MICHIGAN AVE NE	GRAND RAPIDS	MI	49503	383382353	MANAGEMENT	MI	501(c)(3)	Type III-FI	NA	false
SPECTRUM HEALTH HOSPITALS
100 MICHIGAN AVE NE	GRAND RAPIDS	MI	49503	381360529	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
SPECTRUM HEALTH PRIMARY CARE PTNRS
1840 WEALTHY STREET SE	GRAND RAPIDS	MI	49506	381358164	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
SPECTRUM HEALTH FOUNDATION
100 MICHIGAN AVE NE	GRAND RAPIDS	MI	49503	382752328	PHILANTHROPY	MI	501(c)(3)	7	SPECTRUM HEALTH SYSTEM	false
SPECTRUM HEALTH CONTINUING CARE
750 FULLER AVE NE	GRAND RAPIDS	MI	49503	383242232	REHAB/CARE	MI	501(c)(3)	10	SPECTRUM HEALTH SYSTEM	false
TRINITY HEALTH PLANS
1231 EAST BELTLINE NE	GRAND RAPIDS	MI	49525	382663747	HMO MGMT	MI	501(c)(4)		PRIORITY HEALTH	Yes (true)
PRIORITY HEALTH CHOICE INC
1231 EAST BELTLINE NE	GRAND RAPIDS	MI	49525	320016523	HMO (MEDICAID)	MI	501(c)(3)	10	PRIORITY HEALTH	Yes (true)
REED CITY HOSPITAL CORPORATION
300 N PATTERSON RD	REED CITY	MI	49677	382770076	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION
212 S SULLIVAN AVENUE	FREMONT	MI	49412	381359517	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
ZEELAND COMMUNITY HOSPITAL
8333 FELCH STREET	ZEELAND	MI	49464	381411184	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
SPECTRUM HEALTH UNITED
615 S BOWER	GREENVILLE	MI	48838	381358412	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
MECOSTA COUNTY MEDICAL CENTER
605 OAK STREET	BIG RAPIDS	MI	49307	381368744	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
MEMORIAL MEDICAL CENTER OF WEST MICHIGAN
1 N ATKINSON DR	LUDINGTON	MI	49431	381359266	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false
PENNOCK HOSPITAL
1009 West Green Street	Hastings	MI	49058	381360562	HEALTH CARE	MI	501(c)(3)	3	SPECTRUM HEALTH SYSTEM	false

Id Related Org Txbl Corp Tr IdRelatedOrgTxblCorpTrGrp (4 entries)

Address Line1USAddress/AddressLine1Txt	CityUSAddress/CityNm	State AbbreviationUSAddress/StateAbbreviationCd	ZIPUSAddress/ZIPCd	EINEIN	Primary ActivitiesPrimaryActivitiesTxt	Legal Domicile StateLegalDomicileStateCd	Business Name Line1DirectControllingEntityName/BusinessNameLine1Txt	Entity TypeEntityTypeTxt	Share Of Total IncomeShareOfTotalIncomeAmt	Share Of EOY AssetsShareOfEOYAssetsAmt	OwnershipOwnershipPct	Controlled OrganizationControlledOrganizationInd
PRIORITY HEALTH INSURANCE COMPANY
1231 EAST BELTLINE NE	GRAND RAPIDS	MI	49525	201529553	INSURANCE	MI	PRIORITY HEALTH	C Corporation	$247,524,111	$113,490,482	0.01	Yes (true)
PRIORITY HEALTH MANAGED BENEFITS
1231 EAST BELTLINE NE	GRAND RAPIDS	MI	49525	383085182	THIRD PARTY ADMINISTRATOR	MI	NA	C Corporation				false
WEST MICHIGAN HEART
1840 Wealthy Street	GRAND RAPIDS	MI	49506	382125186	PHYSICIANS	MI	NA	C Corporation				false
SPECTRUM HEALTH PHYSICIAN ALLIANCE
100 MICHIGAN AVE NE	GRAND RAPIDS	MI	49503	371655728	PHYSICIANS	MI	NA	C Corporation				false

Field	Value	IRS element (for citing)
Receipt Of Int Annts Rnts Rylts	Yes (true)	ReceiptOfIntAnntsRntsRyltsInd
Gift Grnt Or Cap Contri To Oth Org	false	GiftGrntOrCapContriToOthOrgInd
Gift Grnt Cap Contri From Oth Org	false	GiftGrntCapContriFromOthOrgInd
Loans Or Guarantees To Other Org	false	LoansOrGuaranteesToOtherOrgInd
Loans Or Guarantees From Oth Org	Yes (true)	LoansOrGuaranteesFromOthOrgInd
Div Related Organization	false	DivRelatedOrganizationInd
Asset Sale To Other Org	false	AssetSaleToOtherOrgInd
Asset Purchase From Other Org	false	AssetPurchaseFromOtherOrgInd
Asset Exchange	false	AssetExchangeInd
Rental Of Facilities To Oth Org	false	RentalOfFacilitiesToOthOrgInd
Rental Of Fclts From Oth Org	false	RentalOfFcltsFromOthOrgInd
Perform Of Services For Oth Org	Yes (true)	PerformOfServicesForOthOrgInd
Perform Of Services By Other Org	Yes (true)	PerformOfServicesByOtherOrgInd
Sharing Of Facilities	Yes (true)	SharingOfFacilitiesInd
Paid Employees Sharing	Yes (true)	PaidEmployeesSharingInd
Reimbursement Paid To Other Org	Yes (true)	ReimbursementPaidToOtherOrgInd
Reimbursement Paid By Other Org	Yes (true)	ReimbursementPaidByOtherOrgInd
Transfer To Other Org	Yes (true)	TransferToOtherOrgInd
Transfer From Other Org	Yes (true)	TransferFromOtherOrgInd

Transactions Related Org TransactionsRelatedOrgGrp (5 entries)

Transaction TypeTransactionTypeTxt	InvolvedInvolvedAmt	Method Of Amount DeterminationMethodOfAmountDeterminationTxt
PRIORITY HEALTH INSURANCE COMPANY
A	$240,002	GAAP, CASH, OR FMV
PRIORITY HEALTH INSURANCE COMPANY
L	$221,823	GAAP, CASH, OR FMV
PRIORITY HEALTH INSURANCE COMPANY
R	$5,140,153	GAAP, CASH, OR FMV
PRIORITY HEALTH CHOICE INC
L	$201,263	GAAP, CASH, OR FMV
PRIORITY HEALTH CHOICE INC
R	$2,399,071	GAAP, CASH, or FMV

Supplemental Information Detail SupplementalInformationDetail

Field	Value	IRS element (for citing)
Form And Line Reference	Schedule R, Part II, Column (g) SECTION 512(B)(13) CONTROLLED ENTITY	FormAndLineReferenceDesc
Explanation	THE ORGANIZATION IS A MEMBER OF A CONSOLIDATED HEALTH SYSTEM AND HAS A COMMON PARENT ORGANIZATION, SPECTRUM HEALTH SYSTEM.	ExplanationTxt