2016-11-08T09:04:45-06:00 2015-12-31 ERNST & YOUNG US LLP TWO NORTH CENTRAL AVENUE STE 2300 PHOENIX AZ 85004 990 2015-01-01 942545356 Banner Health Foundation % PAUL NOLDE-MORRISSEY BANN 6027474483 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 85012 ANDREA KRAMER PETERSEN PRESIDENT & CEO 6027474483 2016-11-06 true BRENDA D GRIESEMER P00264669 6023223000 2015 2017-02-10 21:41:12Z ANDREA KRAMER PETERSEN 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 85012 14748822 false X WWW.BANNERHEALTH.COM X 1978 AZ BANNER HEALTH FOUNDATION SECURES AND STEWARDS CHARITABLE CONTRIBUTIONS TO ADVANCE BANNER HEALTH'S MISSION TO MAKE A DIFFERENCE IN PEOPLE'S LIVES THROUGH EXCELLENT PATIENT CARE. 18 17 27 82 0 0 8994001 10019835 0 0 2518692 4043544 -727037 -182354 10785656 13881025 5842216 7556127 0 0 2571459 2741342 364256 459857 520417 912058 891254 9689989 11648580 1095667 2232445 96533640 112509286 4326614 5252223 92207026 107257063 X BANNER HEALTH FOUNDATION SECURES AND STEWARDS CHARITABLE CONTRIBUTIONS TO ADVANCE BANNER HEALTH'S MISSION TO MAKE A DIFFERENCE IN PEOPLE'S LIVES THROUGH EXCELLENT PATIENT CARE. true false 9930459 7556127 0 THE BANNER HEALTH FOUNDATION FOSTERS A SPIRIT OF GIVING BY MAKING HEALTHCARE SOLUTIONS A REALITY FOR OUR COMMUNITY. CONTRIBUTIONS MADE TO THE FOUNDATION ARE INVESTED LOCALLY IN BANNER HEALTH'S NOT-FOR-PROFIT FACILITIES AND PROGRAMS TO ADVANCE HEALTH AND WELLNESS. CARING FOR THE FUTURE OF ARIZONA SINCE 1978, BANNER HEALTH FOUNDATION IS SUPPORTED BY THE GENEROSITY OF INDIVIDUAL DONORS, THE PUBLIC AND PRIVATE SECTORS, AND HUNDREDS OF ACTIVE VOLUNTEERS. 9930459 true true false false false true false false false true true false false false true false false true false false false false false true true false false true true true false false false false false false false false true false false false false true true true false false true 37 0 true 27 true false false false false false true true false false false false false false false X 18 17 true false false false true true true true true false false false true true true true true false false false AZ X PAUL NOLDE-MORRISSEY 6027474000 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 850122702 ANDREA KRAMER PETERSEN DIRECTOR/PRESIDENT/CEO 36.0 5.0 X X 373297 0 38383 J STEPHEN RIZLEY DIRECTOR/CHAIRMAN (THRU 6/15) 6.0 0.0 X X 0 0 0 DAVID BERRY DIRECTOR/CHAIRMAN (AS OF 6/15) 6.0 0.0 X X 0 0 0 JOHN GRAHAM DIRECTOR/VICE CHAIRMAN 6.0 0.0 X X 0 0 0 SUSAN ANABLE DIRECTOR (AS OF 3/15) 4.0 0.0 X 0 0 0 CRAIG R COPPOLA DIRECTOR (THRU 12/15) 4.0 0.0 X 0 0 0 CHIP CARMER DIRECTOR 4.0 0.0 X 0 0 0 NANCY DAVIS DIRECTOR (AS OF 11/15) 4.0 0.0 X 0 0 0 KEITH GALBUT DIRECTOR 4.0 0.0 X 0 0 0 SHARON HARPER DIRECTOR 4.0 0.0 X 0 0 0 SCOTT HOPECK DIRECTOR (THRU 4/15) 4.0 0.0 X 0 0 0 GARRET MCKNIGHT DIRECTOR 4.0 0.0 X 0 0 0 STEVEN MOAK DIRECTOR 4.0 0.0 X 0 0 0 WILLIAM PEPICELLO PHD DIRECTOR 4.0 0.0 X 0 0 0 LINDA PERLICH DIRECTOR 4.0 0.0 X 0 0 0 MORRIS STEIN DIRECTOR 4.0 0.0 X 0 0 0 JEFFREY C STONE DIRECTOR 4.0 0.0 X 0 0 0 JOHN STRITTMATTER DIRECTOR 4.0 0.0 X 0 0 0 KEN VAN WINKLE DIRECTOR 4.0 0.0 X 0 0 0 JEFFREY WHITEMAN DIRECTOR 4.0 0.0 X 0 0 0 HAZEL RICHARDS VP DEVELOPMENT 4.0 36.0 X 170715 0 21727 KIMBERLY HOPELY FOUNDATION SENIOR DIRECTOR 40.0 0.0 X 131718 0 29900 PATRICIA ELDER FUND DEVELOPMENT PROGRAM DIR. 40.0 0.0 X 104465 0 20711 CHRISTY ALTER FUND DEVELOPMENT PROGRAM DIR. 40.0 0.0 X 103647 0 17888 883842 0 128609 5 false true false THE PURSUANT GROUP INC 515 BELT LINE ROAD SUITE 900 DALLAS TX 75254 GIVING PROGRAM 421555 MARRIOTT BUSINESS SERVICES PO BOX 402642 ATLANTA GA 303842642 BANQUET SERVICES 147514 PHOENICIAN RESORT 6000 E CAMELBACK ROAD SCOTTSDALE AZ 85251 BANQUET SERVICES 134593 3 860181 749433 8410221 329010 10019835 0 1140356 1140356 0 0 0 0 0 2903188 2903188 2903188 2903188 684364 860181 867797 -183433 -183433 0 0 SHULTZ DAF ADMIN FEE 922110 878 0 0 878 MUNOZ DAF ADMIN FEE 922110 201 0 0 201 1079 13881025 0 0 3861190 7301919 7301919 254208 254208 0 0 0 0 604120 0 604120 0 0 0 0 0 1734139 1387311 346828 0 103246 82598 20648 0 152299 121837 30462 0 147538 118030 29508 0 0 0 0 0 40992 32794 8198 0 0 0 0 0 0 0 0 0 459857 459857 0 0 0 0 99125 79300 19825 6468 5175 1293 0 74252 59403 14849 0 0 0 0 0 0 0 0 0 115238 92190 23048 0 15054 12045 3009 0 0 0 0 0 14165 11332 2833 0 108556 86845 21711 0 0 0 0 0 3963 3170 793 0 0 0 0 0 SPECIAL EVENT EXPENSES 16591 0 0 16591 REPAIRS AND MAINTENANCE 61053 48842 12211 0 LICENSES & TAXES 21928 17542 4386 0 RECRUITMENT 3653 2922 731 0 310216 212996 53251 43969 11648580 9930459 1197704 520417 0 484984 522469 412303 650109 12920601 21640561 0 0 0 0 0 0 0 0 0 2600 0 0 735914 735150 4727 764 82307524 89294382 0 0 0 0 0 0 403501 398401 96533640 112509286 244821 289796 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4081793 4962427 4326614 5252223 X 58711409 31407598 30050617 71349991 3445000 4499474 92207026 107257063 96533640 112509286 X 2232445 -3987392 0 0 0 16804984 X false true X true false X 9272696 11043325 8270047 8994001 10019835 47599904 0 0 9272696 11043325 8270047 8994001 10019835 47599904 6401712 41198192 1305619 1564758 1098638 1082998 1140356 6192369 0 0 0 0 0 251202 1729 1412 1402 1079 256824 54049097 1106058 0.76224 0.74920 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 2 76527 10533 163059 true true 8418587 1084546 263679 136282 9630530 8435729 4600 117446 139188 8418587 7838601 2005430 968974 2377276 8435729 7091124 33167 860804 146494 7838601 7081640 61850 11878 64244 7091124 0.16060 0.50810 0.33130 false false 0 85592 85592 650322 649558 764 764 0 DUE TO AFFILIATES 3845821 ANNUITIES PAYABLE 986708 DONOR ADVISED FUNDS 57396 OTHER LIABILITIES 72502 4962427 SCHEDULE D, PART V BANNER HEALTH FOUNDATION'S ENDOWMENT FUND CONSISTS OF 21 SEPARATE FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES INCLUDING EDUCATION, BEHAVIORAL HEALTH, NURSING SCHOLARSHIPS, SCHOOL-BASED CLINIC OPERATIONS, AND OTHER HEALTHCARE-RELATED ACTIVITIES TO BENEFIT THE COMMUNITY. 20 OF THESE ARE UNRESTRICTED, AND ONE IS BOARD-RESTRICTED. IN 2015, 11 OF THESE 21 FUNDS WERE ACQUIRED IN THE MERGER WITH THE UNIVERSITY MEDICAL CENTER FOUNDATION. THESE ENDOWMENT FUNDS ARE USED FOR PROGRAM SUPPORT OF VARIOUS DEPARTMENTS AT THE BANNER-UNIVERSITY MEDICAL CENTER-SOUTH CAMPUS AND THE BANNER-UNIVERSITY MEDICAL CENTER-TUCSON CAMPUS. IN ADDITION TO THESE 21 FUNDS, ONE ADDITIONAL ENDOWMENT FUNDS IS HELD BY BANNER ALZHEIMER'S FOUNDATION, A RELATED ENTITY, AND IS USED FOR THE FAMILY AND COMMUNITY SERVICES PROGRAM AT BANNER ALZHEIMER'S INSTITUTE. ACCORDINGLY, BAF'S PORTION OF THE TOTAL ENDOWMENT FUNDS IS SHOWN ON BAF'S FORM 990, SCHEDULE D. X X X X X true PURSUANT CONSULTING GIVING PRG false 421555 -421555 421555 -421555 AZ STAR OF THE SEA 775456 501898 273558 0 131459 0 181394 34700 123899 CANDLELIGHT 418058 217796 200262 0 29426 0 134913 36437 61520 2 351031 140487 210544 0 13721 79149 1702 250 39227 1544545 860181 684364 0 174606 79149 318009 71387 224646 867797 -183433 FORM 990, SCHEDULE G, PART I, LINE 2B BANNER HEALTH FOUNDATION RETAINED THE PROFESSIONAL SERVICES OF THE PURSUANT GROUP INC. TO PROVIDE CONSULTING SERVICES IN REGARDS TO ITS GIVING PROGRAM. $459,857 OF CONSULTING FEES EXPENSE WAS ACCRUED IN 2015 AND $421,555 WAS PAID IN 2015. true BANNER HEALTH 2901 N CENTRAL AVENUE SUITE 160 PHOENIX AZ 850122702 450233470 501(c)(3) 7292767 0 GENERAL SUPPORT RONALD MCDONALD HOUSE CHARITIES OF PHOENIX 501 EAST ROANOKE AVE PHOENIX AZ 85004 860483792 501(c)(3) 28498 0 GENERAL SUPPORT THE UNIVERSITY OF ARIZONA FOUNDATION 1111 NORTH CHERRY AVENUE TUCSON AZ 85721 742652689 501(c)(3) 46164 0 GENERAL SUPPORT BANNER MEDICAL GROUP 2901 N CENTRAL AVE PHOENIX AZ 85012 900532830 501(C)(3) 184839 GENERAL SUPPORT 3 SCHOLARSHIPS 99 107700 BH EMPLOYEE ASSISTANCE PROGRAM 316 146508 FORM 990, SCHEDULE I, PART I, LINE 2 GRANTS ARE AWARDED BY A COMMITTEE WHICH REVIEWS APPLICATIONS AND MAKES AWARDS BASED ON MERIT AND AVAILABILITY OF FUNDS. FUNDS WHICH ARE RESTRICTED ARE AWARDED TO PROJECTS MEETING THE REQUIREMENTS OF THE SPECIFIC REQUEST. ALL FUNDS ARE UTILIZED FOR PROJECTS WHICH ARE MEDICAL IN NATURE. USE OF FUNDS IS MONITORED VIA THE GOVERNANCE PRACTICES OF THE RECIPIENT ORGANIZATIONS. false true false false false false false true false ANDREA KRAMER PETERSEN DIRECTOR/PRESIDENT/CEO 340435 0 0 0 32862 0 10600 0 27783 0 411680 0 547 0 HAZEL RICHARDS VP DEVELOPMENT 151920 0 0 0 18795 0 6969 0 14758 0 192442 0 0 0 KIMBERLY HOPELY FOUNDATION SENIOR DIRECTOR 130627 0 0 0 1091 0 5633 0 24267 0 161618 0 0 0 FORM 990, SCHEDULE J, PART I, LINE 3 THE COMPENSATION OF THE ORGANIZATION'S CEO IS DETERMINED BY A RELATED TAX-EXEMPT ORGANIZATION. SEE SCHEDULE O FOR FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY THE RELATED ORGANIZATION TO DETERMINE COMPENSATION. FORM 990, SCHEDULE J, PART I, LINE 4b EXEC 457(F) - COVERED EXECUTIVES COMPENSATED BY BANNER HEALTH. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE) - EARLIER OF AGE 62, 5 YEARS FROM DATE OF DEPOSIT, OR RULE OF 80. TAXATION OCCURS UPON DISTRIBUTION (IF VESTED). THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COL B(III). DEPOSIT AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COL (C). NAME 457(F) PAYOUT EMPLOYER 457(F) DEPOSIT Andrea Kramer Peterson $547 $0 FORM 990, SCHEDULE J, PART I, LINE 7 BANNER HEALTH FOUNDATION'S INCENTIVE PLAN IS BASED ON TWO THINGS. FIRST, BANNER HEALTH (A RELATED TAX-EXEMPT ORGANIZATION) AS A WHOLE MUST ACHIEVE ITS NET OPERATING INCOME THRESHOLD. SECOND, THE FOUNDATION MUST ACHIEVE ITS PRODUCTION REVENUE GOAL AND MUST ACHIEVE A TARGETED OPERATION NET GOAL. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 24% TO 80% OF BASE SALARY. INCENTIVE PLAN PAYMENTS ARE REPORTED ON SCHEDULE J, PART II, COL B(II). SCHEDULE J, PART II 1) BONUS LIFE INSURANCE AS PART OF BANNER HEALTH'S EXECUTIVE SELECT BENEFIT PROGRAM (ESB) CERTAIN INDIVIDUALS PARTICIPATED IN THE BONUS LIFE INSURANCE PROGRAM (BLIP). ELIGIBLE EMPLOYEES COULD ELECT TO USE PART OF THEIR ESB ALLOWANCE TO PURCHASE BLIP THROUGH NORTHWESTERN MUTUAL. THE PARTICIPATING EMPLOYEE OWNS THE POLICY AND CAN ACCESS ITS CASH VALUE. THE ENTIRE AMOUNT PURCHASED IS REPORTED AS TAXABLE COMPENSATION IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUAL: ANDREA KRAMER PETERSON $8,655 2) CASHOUT OF PAID TIME OFF In 2015, Banner eliminated the accrual of paid time off for all senior leaders. As a result, one-time CASHOUTS OF EARNED AND UNUSED PAID TIME OFF were paid. THESE AMOUNTS ARE INCLUDED IN SCHEDULE J, PART II, COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS: ANDREA KRAMER PETERSON $ 4,654 HAZEL RICHARDS $17,771 KIMBERLY HOPELY $ 1,091 X 1 9000 FMV X 32650 FMV X 1 10030 FMV X 5 11200 FMV X AIRLINE TRAVEL 160 32000 FMV X HOSPITAL CARE PCKG 1 5817 FMV X MEDIA SERVICES 2 177913 FMV X VACATION PACKAGES 4 50400 FMV false true false SCHEDULE M, PART I, COLUMN (B) COLUMN (B) REPRESENTS THE NUMBER OF CONTRIBUTIONS RECEIVED. FORM 990, PART I, LINE 6 APPROXIMATELY 82 DEDICATED VOLUNTEERS HELP ADVANCE THE WORK OF BANNER HEALTH FOUNDATION EACH YEAR. THESE INDIVIDUALS EMBODY OUR BELIEF THAT THE HEALTH AND WELL-BEING OF OUR COMMUNITY IS A SHARED RESPONSIBILITY. BANNER HEALTH FOUNDATION VOLUNTEERS INCLUDE PEOPLE OF ALL AGES, BACKGROUNDS AND SKILL SETS, WHICH TRULY REPRESENT THE DIVERSITY OF THE COMMUNITY WE SERVE. WHETHER WORKING BEHIND THE SCENES OR FRONT AND CENTER, BANNER HEALTH FOUNDATION VOLUNTEERS ARE COMMITTED TO HELPING OTHERS. INDIVIDUALS DONATE THEIR TIME AND TALENTS TO MAKE A DIFFERENCE BY SERVING AS MEMBERS OF THE BOARD OF DIRECTORS, MEMBERS OF VARIOUS OTHER BOARDS, CAMPAIGN CABINETS, ADVISORY COUNCILS, EVENT PLANNING COMMITTEES AND MORE. RESPONSIBILITIES INCLUDE, BUT ARE NOT LIMITED TO, OPERATIONAL OVERSIGHT, DONOR CULTIVATION, RELATIONSHIP BUILDING, EVENT PLANNING, AND PUBLIC SPEAKING. BANNER HEALTH FOUNDATION VOLUNTEERS ASSIST IN A VARIETY OF CAPACITIES AND ARE CRITICAL TO OUR SUCCESS. FORM 990, PART III, LINE 2 ON 2/28/2015 UNIVERSITY MEDICAL CENTER FOUNDATION, AN ARIZONA 501(C)(3) NON-PROFIT ORGANIZATION, WAS MERGED INTO BANNER HEALTH FOUNDATION. THIS MERGER WAS PART OF A LARGER MERGER IN WHICH THE UNIVERSITY OF ARIZONA HEALTH NETWORK MERGED INTO BANNER HEALTH. BANNER HEALTH IS THE SOLE MEMBER OF BANNER HEALTH FOUNDATION AND THE UNIVERSITY OF ARIZONA HEALTH NETWORK WAS THE SOLE MEMBER OF THE UNIVERSITY MEDICAL CENTER FOUNDATION. THE BANNER HEALTH FOUNDATION PROVIDED FINANCIAL ASSISTANCE TO PATIENTS OF THE BANNER UNIVERSITY MEDICAL CENTER TUCSON CAMPUS AND THE BANNER-UNIVERSITY MEDICAL CENTER SOUTH CAMPUS AND THEIR FAMILIES INCLUDING ASSISTANCE WITH RENT, UTILITIES, GROCERIES, TRANSPORTATION, AND OTHER ITEMS THAT ENABLE PATIENTS TO RECEIVE THE CARE THAT THEY NEED. THE FOUNDATION ALSO PROVIDED SUPPORT FOR FAMILY EDUCATION PROGRAMS, BONE MARROW TRANSPLANTATION, AND NURSING EDUCATION, AND PROVIDED VARIOUS ITEMS TO SUPPORT THE BANNER UNIVERSITY MEDICAL CENTER TUCSON CAMPUS AND THE BANNER UNIVERSITY MEDICAL CENTER SOUTH CAMPUS INCLUDING ARTWORK, CHILDRENS TOYS AND SUPPLIES TO PROMOTE A HEALING ENVIRONMENT. FORM 990, PART VI, LINE 1A THE BANNER HEALTH FOUNDATION (BHF) BOARD OF DIRECTORS IS PRIMARILY A FUNDRAISING BOARD WITHOUT FISCAL OVERSIGHT. THE BANNER HEALTH BOARD OF DIRECTORS HAS THE BROADER AUTHORITY OVER BHF AS DESCRIBED IN THE NARRATIVE FOR PART VI, LINES 7A/B. IN MANY, IF NOT ALL, SITUATIONS, THE BHF BOARD DELEGATES AUTHORITY DIRECTLY TO THE BANNER HEALTH CEO. FORM 990, PART VI, LINE 2 JOHN STRITTMATTER, CRAIG COPPOLA, AND JOHN GRAHAM HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, LINE 6 THE SOLE VOTING MEMBER OF BANNER HEALTH FOUNDATION IS BANNER HEALTH, AN ARIZONA NONPROFIT CORPORATION EXEMPT FROM TAX AS AN ENTITY DESCRIBED UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. FORM 990, PART VI, LINE 7A AND 7B THE MEMBER'S VOTE SHALL BE REQUIRED ON: (A) ELECTION AND REMOVAL OF DIRECTORS AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (B) ELECTION AND REMOVAL OF CERTAIN OFFICERS AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (C) THE ADOPTION OF ANY PLAN OF MERGER OR CONSOLIDATION; (D) THE ADOPTION OF ANY PLAN OF DISSOLUTION; (E) THE SALE OR ENCUMBRANCE OF ANY ASSET AS SET FORTH IN THE ORGANIZATION'S BYLAWS; (F) AMENDMENT OF THE ARTICLES OF INCORPORATION OR BYLAWS OF THE CORPORATION; (G) THOSE ISSUES OR MATTERS UPON WHICH THE MEMBER IS GRANTED VOTING RIGHTS AS SET FORTH IN THE ARTICLES OF INCORPORATION, THE BYLAWS, OR THE ARIZONA NONPROFIT CORPORATION ACT. THE CORPORATION MAY HAVE SUCH NONVOTING MEMBERS AS THE MEMBER SHALL CREATE AND AUTHORIZE. AT SUCH TIME AS THE MEMBER CREATES A CLASS OR CLASSES OF NONVOTING MEMBERSHIP FOR THE CORPORATION, IT SHALL AMEND THE BYLAWS ACCORDINGLY. CREATION OF ANY CLASS OF NONVOTING MEMBER SHALL BE EFFECTIVE ONLY UPON AMENDMENT OF THE BYLAWS. POWERS OF THE VOTING MEMBER - THE VOTING MEMBER SHALL HAVE AND EXERCISE THOSE POWERS HEREAFTER DESCRIBED AS WELL AS THOSE SPECIFIC POWERS SET FORTH IN OTHER SECTIONS OF THE BYLAWS. THE VOTING MEMBER SHALL: (A) APPOINT OR REMOVE THE PRESIDENT AND EVALUATE THE PERFORMANCE OF THE PRESIDENT; (B) APPOINT ALL MEMBERS OF THE BOARD OF DIRECTORS OF THE CORPORATION FOLLOWING NOMINATION BY THE BOARD OF DIRECTORS OF THE CORPORATION; (C) REVIEW AND APPROVE MISSION STATEMENTS AND STRATEGIC PLANS; (D) APPROVE THE ESTABLISHMENT OF ALL NEW CORPORATE OR PARTNERSHIP ENTITIES CREATED OR JOINED BY THE CORPORATION; (E) REVIEW AND APPROVE OPERATING AND CAPITAL BUDGETS OF THE CORPORATION; (F) APPROVE ALL UNBUDGETED EXPENDITURES OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER; (G) APPROVE THE SALE OF ANY ASSET OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER; (H) APPROVE MAJOR CONTRACTS OF A NATURE AND SIZE AS DETERMINED BY POLICY AND SIGNATURE AUTHORITY OF THE VOTING MEMBER; AND (I) APPROVE ALL DEBT OF THE CORPORATION OF TYPES AND LIMITS OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER. FORM 990, PART VI, LINE 11B THE 990 IS REVIEWED BY BANNER HEALTH'S LEGAL DEPARTMENT, TAX DEPARTMENT, INTERNAL AUDIT DEPARTMENT AND CERTAIN BANNER HEALTH FOUNDATION OFFICERS. A MEETING IS HELD WITH THE TAX PREPARER AND A LINE-BY-LINE REVIEW IS DONE PRIOR TO THE FILING OF THE RETURN. THE FORM 990 WILL BE MADE AVAILABLE TO THE GOVERNING BODY AT THE NEXT REGULARLY SCHEDULED BOARD MEETING AFTER FILING. FORM 990, PART VI, LINE 12C THE BANNER HEALTH INTERNAL AUDIT DEPARTMENT PROVIDES EACH PARTY WITH A DISCLOSURE QUESTIONNAIRE. THE INTERNAL AUDIT DEPARTMENT PREPARES A SUMMARY FOR THE TAX DEPARTMENT. THIS SUMMARY IS ALSO PRESENTED TO THE AUDIT COMMITTEE. THE TAX DEPARTMENT PREPARES THE FORM 990 DISCLOSURE. THIS DISCLOSURE IS PRESENTED TO THE LEGAL DEPARTMENT FOR REVIEW. PURSUANT TO BANNER'S CONFLICT OF INTEREST POLICY, ALL BOARD MEMBERS, OFFICERS AND THE DIRECTOR OF AUDIT SERVICES MUST DISCLOSE THE EXISTENCE OF ANY FINANCIAL INTEREST THAT MAY GIVE RISE TO A CONFLICT OF INTEREST. FORM 990, PART XI, LINE 15A & 15B THE COMPENSATION OF THE BANNER HEALTH FOUNDATION CEO IS DETERMINED BY THE BANNER HEALTH CEO AND IS SUBJECT TO OVERSIGHT BY THE BANNER HEALTH BOARD OF DIRECTORS COMPENSATION COMMITTEE IN THE SAME MANNER AS SUCH OVERSIGHT IS EXERCISED OVER OTHER VICE PRESIDENTS AND HIGHER EXECUTIVES OF BANNER HEALTH. THE COMPENSATION OF OTHER OFFICERS OF THE BANNER HEALTH FOUNDATION IS ESTABLISHED BY THE BANNER HEALTH FOUNDATION CEO, IF THEY ARE EMPLOYEES OF THE BANNER HEALTH FOUNDATION, OR BY BANNER HEALTH, IF THEY ARE EMPLOYEES OF BANNER HEALTH, IN EACH CASE WITHIN COMPENSATION RANGES SET BY THE BANNER HEALTH COMPENSATION AND BENEFITS DEPARTMENT BASED ON MARKET DATA. BANNER HEALTH'S PROCESS TO DETERMINE THE COMPENSATION OF THE BANNER HEALTH FOUNDATION IS AS FOLLOWS: BANNER HEALTH UTILIZES A COMPENSATION COMMITTEE COMPRISED OF INDEPENDENT DIRECTORS THAT EXERCISES OVERSIGHT OVER ALL ASPECTS OF THE COMPENSATION PAID TO OR FOR THE BENEFIT OF THE CEO AND ALL OTHER SENIOR EXECUTIVES OF BANNER HEALTH AND ANY OF ITS AFFILIATES, INCLUDING THE BANNER HEALTH FOUNDATION CEO, AND ALL OTHER PERSONS WHO CONSTITUTE "DISQUALIFIED PERSONS" WITH RESPECT TO BANNER HEALTH UNDER CODE SECTION 4958. THE COMMITTEE: - ASSESSES ANNUALLY THE PERFORMANCE OF THE CEO - RECOMMENDS TO THE BOARD APPROPRIATE COMPENSATION FOR THE CEO - REVIEWS AND DETERMINES THE EXECUTIVE TOTAL COMPENSATION PHILOSOPHY OF BANNER HEALTH - ESTABLISHES THE PERMISSIBLE RANGES OF COMPENSATION FOR SENIOR EXECUTIVES AND DISQUALIFIED PERSONS, INCLUDING THE BANNER HEALTH FOUNDATION CEO - REVIEWS AND APPROVES THE DESIGN OF THE COMPONENTS OF COMPENSATION FOR SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS AND MONITORS COMPLIANCE OF BANNER HEALTH WITH THE PHILOSOPHY AND DESIGN COMPONENTS OF EXECUTIVE COMPENSATION - RECEIVES THE CEO'S REPORT CONCERNING THE OVERALL PERFORMANCE AND DEVELOPMENT ASSESSMENT OF THE SENIOR EXECUTIVES, INCLUDING THE BANNER HEALTH FOUNDATION CEO - ACTS FOR THE BOARD IN THE ENGAGEMENT AND DIRECT OVERSIGHT OF EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS ENGAGED TO PROVIDE ADVICE AND INFORMATION WITH RESPECT TO THE REASONABLENESS AND COMPETITIVENESS OF THE COMPENSATION PAID TO THE CEO, SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS, INCLUDING THE BANNER HEALTH FOUNDATION CEO, WHICH CONSULTANT REPORTS DIRECTLY TO THE COMMITTEE AND PERFORMS SUCH OTHER DUTIES AND DELEGATED RESPONSIBILITIES AS THE BOARD MAY ASSIGN TO THE COMMITTEE FROM TIME TO TIME. IN ADDITION, THE COMMITTEE HAS ADOPTED THE FOLLOWING BEST PRACTICES WITH RESPECT TO ITS EXECUTIVE COMPENSATION OVERSIGHT FUNCTION: REVIEWS THE REPORT OF THE VICE PRESIDENT, TOTAL COMPENSATION, REGARDING ALL MATERIALINCENTIVE PLANS, BENEFIT PLANS, AND PROGRAMS THAT APPLY TO EMPLOYEES AND PHYSICIANS GENERALLY; APPROVES THE BANNER HEALTH CEO'S RECOMMENDATIONS AS TO THE COMPENSATION OF SENIOR EXECUTIVES. THE COMPENSATION COMMITTEE MAY RETAIN EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS TO THE EXTENT THE COMMITTEE DEEMS NECESSARY OR APPROPRIATE TO CARRY OUT ITS RESPONSIBILITIES. IF SO ENGAGED, THE COMMITTEE HAS RESPONSIBILITY FOR APPROVING THE FEES AND THE TERMS OF ENGAGEMENT FOR THE CONSULTANTS, AS WELL AS TERMINATION OF SUCH ENGAGEMENT. TYPICALLY, THE COMMITTEE HAS ENGAGED A CONSULTANT ANNUALLY TO REVIEW AND OPINE AS TO THE REASONABLENESS OF THE CEO'S COMPENSATION PACKAGE AND HAS ENGAGED A CONSULTANT APPROXIMATELY ONCE EVERY THREE YEARS TO REVIEW AND OPINE AS TO THE REASONABLENESS OF SENIOR EXECUTIVE AND OTHER EXECUTIVE MANAGEMENT COMPENSATION, INCLUDING THAT OF THE BANNER HEALTH FOUNDATION CEO. THE COMMITTEE PERIODICALLY REVIEWS THE RELATIONSHIP BETWEEN BANNER HEALTH AND EACH CONSULTANT TO ENSURE THE CONSULTANT'S INDEPENDENCE. IN CONNECTION WITH EACH SUCH EVALUATION, THE COMMITTEE REQUESTS A WRITTEN CERTIFICATION FROM EACH CONSULTANT THAT: - INCLUDES AN INDEPENDENCE ATTESTATION AFFIRMING THAT THE CONSULTANT HAS CONDUCTED ITS OWN INTERNAL ASSESSMENT AND, BASED ON SUCH ASSESSMENT AND ITS INTERNAL CONTROLS, CONCLUDED THAT IT HAS PERFORMED ITS SERVICES FOR THE COMMITTEE IN AN INDEPENDENT MANNER AND IS INDEPENDENT AS DEFINED IN THE INTERMEDIATE SANCTION REGULATIONS UNDER CODE SECTION 4958 - CONFIRMS THAT THE CONSULTANT REPORTS TO THE COMMITTEE THROUGH THE CHAIR OF THE COMMITTEE AND THAT ALL CONSULTING ACTIVITY FOR BANNER HEALTH CONDUCTED BY SUCH CONSULTANT DURING THE PRECEDING YEAR WAS CONDUCTED WITH THE KNOWLEDGE AND CONSENT OF THE CHAIR OF THE COMMITTEE - DETAILS THE AMOUNTS PAID BY BANNER HEALTH TO THE CONSULTANT IN ITS CAPACITY AS AN EXTERNAL COMPENSATION CONSULTANT TO THE COMMITTEE, AND THE AMOUNTS PAID BY BANNER HEALTH, IF ANY, TO THE CONSULTANT AND ITS AFFILIATES FOR ANY OTHER ENGAGEMENTS THE COMMITTEE MAY ALSO REQUIRE THE CONSULTANT TO VERIFY THAT IT MEETS THE DEFINITION OF 'INDEPENDENCE' AS DESCRIBED IN THE FORM 990 INSTRUCTIONS. COMPENSATION SURVEYS AND STUDIES ARE UTILIZED BY INDEPENDENT CONSULTANTS THAT THE COMMITTEE MAY ENGAGE FROM TIME TO TIME. THE COMPENSATION REVIEW PROCESS WAS LAST COMPLETED IN 2015. FORM 990, PART VI, LINE 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, AND TAX RETURNS ARE AVAILABLE UPON REQUEST. COPIES ARE MAINTAINED AT EACH ADMINISTRATIVE OFFICE AND IN THE LEGAL AND TAX DEPARTMENTS. FORM 990, PART XI, LINE 9 INTERCOMPANY TRANSFERS $3,930,592 MERGER UNIVERSITY MEDICAL CENTER FOUNDATION $12,874,392 ----------- TOTAL $16,804,984 Banner Health 2901 N Central Ave Suite 160 Phoenix AZ 85012 450233470 Hospital AZ 501(C)(3) 3 NA false Banner Alzheimers Foundation 2901 N Central Ave Suite 160 Phoenix AZ 85012 204862361 Support AZ 501(C)(3) 7 BANNER HLTH true Banner Medical Group 2901 N Central Ave Suite 160 Phoenix AZ 85012 900532830 MEDICAL SVS AZ 501(C)(3) 3 BANNER HLTH true Banner Medical Group Colorado 2901 N Central Ave Suite 160 Phoenix AZ 85012 900532831 MEDICAL SVS CO 501(C)(3) 3 BANNER HLTH true Good Samaritan Community Fdn (Thru 715) 2901 N Central Ave Suite 160 Phoenix AZ 85012 866306490 Support AZ 501(C)(3) 11A-I BANNER HLTH true Casa Grande Community Hospital FDN INC 1800 E Florence Blvd Casa Grande AZ 85122 311726569 Support AZ 501(C)(3) 7 BANNER HLTH true Banner--University Medical Group 2901 N CENTRAL AVE SUITE 160 PHOENIX AZ 85012 942958258 MEDICAL SVS AZ 501(C)(3) 3 BANNER HLTH true Univ Physicians Healthcare Comm Hlth Ctr 2901 N Central Ave Suite 160 Phoenix AZ 85012 264586679 MEDICAL SVS AZ 501(C)(3) 3 Banner--Univ true The Univ of AZ Health Plans-Family Care 2901 N Central Ave Suite 160 Phoenix AZ 85012 463766901 HEALTH INSUR AZ 501(C)(3) 9 BANNER HLTH true The Univ of AZ Health Plans - UCA 2901 N Central Ave Suite 160 Phoenix AZ 85012 463757358 HEALTH INSUR AZ 501(C)(3) 9 BANNER HLTH true Caduceus Indemnity Ins Corp (Thru 715) 745 Fort Street Suite 1000 Honolulu HI 96813 990343363 CAPTIVE INSUR HI 501(C)(3) 11A-1 BANNER HLTH true Partners in Integrated Health LLC 2901 N Central Avenue Suite 160 Phoenix AZ 85012 611700965 Management Svs AZ NA N/A Banner Arizona ASC LLC 525 W Brown Road Mesa AZ 85201 900532830 OP Surgery Ctr TN NA N/A UM Leasing LLC (Thru 715) 2901 N Central Avenue Suite 160 Phoenix AZ 85012 203400643 Leasing AZ NA N/A DGV Enhanced US Equity Fund LLC 10 Second Street NE Suite 200 Minneapolis MN 55413 472398930 Investments MN NA N/A Banner Plan Administration Inc 445 W 5th Place Suite 101 Mesa AZ 85201 860800246 3rd Party Admin AZ NA C Corp true Tanana Valley Medical (Thru 115) 1001 Noble Street Fairbanks AK 99701 920049930 Medical Services AK NA C Corp true Banner Indemnity Ltd 1627 E 18th St PO Box 1051 Grand Cayman BWI CJ 450233470 Investments CJ NA Foreign Corp true Banner Health Network 2901 N Central Ave Suite 160 Phoenix AZ 85012 900750689 Accountable Care AZ NA C Corp true Academic Ins Funding LTD (THRU 62015) PO Box 1051 Grand Cayman BWI CJ 980116943 Captive Insurance CJ NA Foreign Corp true The Univ of Az Health Plans-U Healthcare 2901 N Central Ave Suite 160 Phoenix AZ 85012 454370907 Health Insurance AZ NA C Corp true false true true true true false false false false false false false false true true false false false false SCHEDULE R, PART III PARTNERS IN INTEGRATED HEALTH EIN: 61-1700969 ADDRESS: 2901 N CENTRAL AVE SUITE 160, PHOENIX, AZ 85006 BANNER ARIZONA ASC LLC EIN:90-0532830 ADDRESS:525 W BROWN ROAD, MESA, AZ 85201 UM LEASING, LLC (THRU 7/15) EIN: 20-3400643 ADDRESS: 2901 N CENTRAL AVENUE SUITE 160, PHOENIX, AZ 85012 DGV ENHANCED US EQUITY FUND, LLC EIN: 47-2398930 ADDRESS: 10 SECOND STREET NE SUITE 200, MINNEAPOLIS, MN 55413