2016-08-15T10:35:40-05:00 2015-09-30 381357951 PLANTE & MORAN PLLC 750 TRADE CENTRE WAY STE 300 PORTAGE MI 49002 990 2014-10-01 382397643 MCLAREN HEALTH CARE CORPORATION MCLA 8103422000 G-3235 BEECHER ROAD SUITE B FLINT MI 485323615 DAVID MAZURKIEWICZ SENIOR VICE PRESIDENT & CFO 8103422000 2016-08-11 1 CAROL LALONDE CPA P00181637 2695674500 2016-08-11 2014 2016-09-27 15:27:22Z X DAVID MAZURKIEWICZ G-3235 BEECHER ROAD SUITE B FLINT MI 485323615 187446344 0 X WWW.MCLAREN.ORG X 1981 MI TO PROVIDE PLANNING AND ADMINISTRATIVE SERVICES TO RELATED ENTITIES. 14 12 158 0 0 661840 8904347 0 127598229 179965864 8476627 6538736 1611460 616766 146590663 187121366 1431884 16600000 0 0 29572113 35253468 0 0 0 96590401 115659120 127594398 167512588 18996265 19608778 325574737 299436766 209640279 206584671 115934458 92852095 MCLAREN HEALTH CARE, THROUGH ITS SUBSIDIARIES, WILL BE MICHIGAN'S BEST VALUE IN HEALTHCARE AS DEFINED BY QUALITY OUTCOMES AND COST. 0 0 151587855 16600000 179965864 PLANNING, ADMINISTRATIVE AND SUPPORT SERVICES PROVIDED TO RELATED HEALTH CARE ORGANIZATIONS. 151587855 1 0 0 1 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 1 1 1 0 0 1 197 0 1 158 1 1 1 1 CJ 0 0 0 0 0 0 0 0 X 14 12 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 X DAVID MAZURKIEWICZ 8103422000 G-3235 BEECHER ROAD SUITE B FLINT MI 48532 DANIEL BOGE CHAIRMAN 1.00 0.20 X X 14000 0 0 KATHRYN LAWTER VICE CHAIRPERSON 1.00 2.00 X X 12250 0 0 E JAMES BARRETT SECRETARY 1.00 3.50 X X 14000 0 0 PHILIP INCARNATI PRESIDENT AND CEO 45.00 10.00 X X 5583733 0 1392828 GREGORY LANE ASSISTANT SECRETARY 50.00 5.00 X X 1444156 0 126143 DAVID MAZURKIEWICZ TREASURER 40.00 15.00 X X 2544340 0 28471 DAVID BUZZELLI DIRECTOR 1.00 2.50 X 12250 0 0 H JAMES FITZGERALD DIRECTOR 1.00 1.00 X 14000 0 0 JAMES GEORGE DIRECTOR 1.00 1.00 X 14000 0 0 TONY HAIN DIRECTOR 1.00 1.00 X 12250 0 0 DOMINIC MONASTIERE DIRECTOR 1.00 3.00 X 14000 0 0 JIM PROWSE DIRECTOR 1.00 2.00 X 8750 0 0 THOMAS ROBINET DIRECTOR 1.00 0.00 X 12250 0 0 DAVE THOMPSON DIRECTOR 1.00 3.00 X 7000 0 0 BILL BOWEN DIRECTOR (PART YEAR) 1.00 10.00 X 8500 0 0 DAVID MCCREDIE DIRECTOR (PART YEAR) 1.00 0.00 X 14000 0 0 MICHAEL MCKENNA CMO 50.00 1.30 X 749195 0 23573 MARK O'HALLA COO 40.00 15.00 X 1533287 0 122545 WILLIAM PETERSON VICE PRESIDENT 50.00 0.00 X 1013822 0 27174 RONALD STRACHAN CIO 50.00 0.00 X 423426 0 114804 MICHAEL TAYLOR COO (PART YEAR) 20.00 0.00 X 828748 0 0 KEVIN TOMPKINS VICE PRESIDENT 50.00 3.30 X 1148165 0 79513 ANNA PEROSKY VP REVENUE AND REIMBURSEMENT 40.00 0.00 X 298472 0 19002 DANIEL MEDRANO CORPORATE DIR. OF FACILITIES 40.00 0.00 X 269835 0 27032 DAVID DICKEY CORPORATE DIR. OF CLINICAL ENGINEERING 40.00 0.00 X 264343 0 35940 DAVID BUEBY VP SUPPLY CHAIN MANAGEMENT 40.00 0.00 X 253514 0 27616 DENISE DACH CORPORATE DIR. OF COMPLIANCE 40.00 0.00 X 249086 0 26594 16761372 0 2051235 68 0 1 0 ANTHELIO 5400 LBJ FREEWAY SUITE 200 DALLAS TX 75240 IT SERVICES 119185090 GIARMARCO MULLINS & HORTON 101 W BIG BEAVER ROAD TROY MI 48084 LEGAL SERVICES 1805593 GAFFEY HEALTHCARE 405 DUKE DRIVE SUITE 210 FRANKLIN TN 37067 REVENUE CYCLE SERVICES 1117080 OPTUMIN 2771 MOMENTUM PLACE CHICAGO IL 60689 IT SERVICES 900849 PLANTE & MORAN PLLC 16060 COLLECTIONS CTR DR CHICAGO IL 60693 AUDIT, TAX, AND CONSULTING SERVICES 850483 31 ALLOCATION REVENUE 900099 174810134 174810134 RENTAL TO AFFILIATED EXEMPT ORGAN 900099 5155730 5155730 179965864 1120523 1120523 95942 303850 121722 203256 -25780 100594 74814 74814 5418213 0 5418213 5418213 5418213 MISCELLANEOUS 900099 541952 541952 541952 187121366 179965864 0 7155502 16600000 16600000 17836842 17836842 12810826 12810826 1917254 1917254 1607346 1607346 1081200 1081200 5715438 5715438 111744 111744 244639 244639 10991184 10991184 2062892 2062892 735312 735312 66450851 64206202 2244649 3906147 3906147 326094 326094 237396 237396 509044 509044 18842460 18205585 636875 312818 312818 RESEARCH PROJECTS 4023885 4023885 UBIT TAXES 559188 559188 DUES & MEMBERSHIPS 277495 277495 RECRUITING 77014 77014 275519 275519 167512588 151587855 15924733 0 14838903 34591904 1802290 27488324 47415673 15161072 3049394 2717973 7390535 227170541 118586595 128081459 108583946 83769385 56862644 6440624 6130055 26093421 36743330 14415009 3435562 325574737 299436766 35965803 29642791 9880208 9285355 1079245 163794268 166577280 209640279 206584671 X 115586901 92239121 347557 612974 115934458 92852095 325574737 299436766 X 19608778 -8747904 -33943237 X X 0 1 X 1 0 X X 13 MCLAREN REGIONAL MEDICAL CENTER 382383119 3 1 0 0 MCLAREN MEDICAL GROUP 382988086 3 0 0 0 INGHAM REGIONAL MEDICAL CENTER 381434090 3 1 0 0 BAY REGIONAL MEDICAL CENTER 381976271 3 1 0 0 LAPEER REGIONAL MEDICAL CENTER 382689033 3 1 0 0 VISITING NURSE SERVICES OF MICHIGAN 383491714 9 1 0 0 MCLAREN HEALTH PLAN 383383640 3 0 0 0 MOUNT CLEMENS REGIONAL MEDICAL CENTER 381218516 3 1 0 0 CENTRAL MICHIGAN COMMUNITY HOSPITAL 381420305 3 1 0 0 PONTIAC OSTEOPATHIC HOSPITAL 381428164 3 1 0 0 NORTHERN MICHIGAN REGIONAL HOSPITALS 382445613 3 1 0 0 MCLAREN PORT HURON HOSPITAL 381369611 3 1 0 0 KARMANOS CANCER INSTITUTE 381613280 7 1 0 0 13 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 244639 244639 0 PART II-B, LINE 1: CONTRACTED WITH CONSULTING FIRMS ON A FEDERAL AND STATE LEVEL REGARDING VARIOUS HEALTHCARE LEGISLATION. 27544124 27544124 5253557 4294385 959172 9429939 3218738 6211201 180351606 109652049 70699557 4591315 1421423 3169892 108583946 EQUITY INTEREST 36743330 C 36743330 ACCRUED PENSION COSTS 19779913 DEFERRED EQUIPMENT COSTS TO SUBSIDIARIES 79046254 FAIR VALUE OF INTEREST RATE SWAP AGREEMENT 31973841 OBLIGATION UNDER SECURITIES LENDING 27644003 DEFERRED COMPENSATION 8133269 166577280 X PART X, LINE 2: THE CORPORATION AND SUBSTANTIALLY ALL OF ITS SUBSIDIARIES ARE NONPROFIT, TAX-EXEMPT ORGANIZATIONS. SOME SUBSIDIARIES ARE FOR-PROFIT CORPORATIONS. INCOME TAX PROVISIONS ARE NOT MATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS. THE ACCOUNTING STANDARD THAT REFERS TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ADDRESSES THE DETERMINATION OF HOW TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN SHOULD BE RECORDED ON THE CONSOLIDATED FINANCIAL STATEMENTS. COMPANIES MUST RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY THE TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE STANDARD ALSO PROVIDES GUIDANCE ON DERECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS, AND REQUIRES INCREASED DISCLOSURES. THE EVALUATED POTENTIAL EXPOSURE RELATED TO UNCERTAIN TAX POSITIONS WAS FOUND TO BE IMMATERIAL. MANAGEMENT BELIEVES THE CORPORATION IS NOT SUBJECT TO TAX EXAMINATIONS FOR YEARS PRIOR TO SEPTEMBER 30, 2012. 1 KARMANOS CANCER INSTITUTE 4100 JOHN R ST DETROIT MI 48201 381613280 501(C)(3) 11600000 0 N/A N/A GENERAL SUPPORT MCLAREN PORT HURON 1221 PINE GROVE AVENUE PORT HURON MI 48060 381369611 501(C)(3) 5000000 0 N/A N/A GENERAL SUPPORT 2 0 PART I, LINE 2: CLIENT REVIEWS TAX-EXEMPT STATUS AND MONITORS OVERALL STANDING OF ORGANIZATION IN DETERMINING GRANTS. X X X X X 1 1 X X X X X 1 1 0 0 0 0 0 0 0 PHILIP INCARNATI PRESIDENT AND CEO 1667934 0 1560500 0 2355299 0 1378144 0 14684 0 6976561 0 0 0 GREGORY LANE ASSISTANT SECRETARY 708535 0 258615 0 477006 0 108866 0 17277 0 1570299 0 0 0 DAVID MAZURKIEWICZ TREASURER 726561 0 307945 0 1509834 0 13000 0 15471 0 2572811 0 702546 0 MICHAEL MCKENNA CMO 525000 0 0 0 224195 0 9432 0 14141 0 772768 0 0 0 MARK O'HALLA COO 695587 0 228074 0 609626 0 105366 0 17179 0 1655832 0 0 0 WILLIAM PETERSON VICE PRESIDENT 438132 0 160225 0 415465 0 13000 0 14174 0 1040996 0 0 0 RONALD STRACHAN CIO 378538 0 0 0 44888 0 97625 0 17179 0 538230 0 0 0 MICHAEL TAYLOR COO (PART YEAR) 252017 0 0 0 576731 0 0 0 0 0 828748 0 0 0 KEVIN TOMPKINS VICE PRESIDENT 447182 0 148279 0 552704 0 76792 0 2721 0 1227678 0 92696 0 ANNA PEROSKY VP REVENUE AND REIMBURSEMENT 247201 0 51271 0 0 0 6562 0 12440 0 317474 0 0 0 DANIEL MEDRANO CORPORATE DIR. OF FACILITIES 228112 0 41723 0 0 0 15170 0 11862 0 296867 0 0 0 DAVID DICKEY CORPORATE DIR. OF CLINICAL ENGINEERI 215587 0 48756 0 0 0 15108 0 20832 0 300283 0 0 0 DAVID BUEBY VP SUPPLY CHAIN MANAGEMENT 207990 0 45524 0 0 0 12515 0 15101 0 281130 0 0 0 DENISE DACH CORPORATE DIR. OF COMPLIANCE 204054 0 45032 0 0 0 6288 0 20306 0 275680 0 0 0 PART I, LINE 1A THE CORPORATE CEO, SUBSIDIARY CEO'S AND CORPORATE VICE-PRESIDENTS IN SOME INSTANCES HAVE RECEIVED TAX INDEMNIFICATION FOR THE FOLLOWING BENEFITS: VEHICLE COSTS, GROUP TERM LIFE INSURANCE, SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS, AND HEALTH CLUB OR SOCIAL DUES. THESE BENEFITS HAVE BEEN INCLUDED IN TAXABLE COMPENSATION. THE FOLLOWING INDIVIDUALS HAVE RECEIVED THESE BENEFITS: MICHAEL MCKENNA, WILLIAM PETERSON, RONALD STRACHAN, KEVIN TOMPKINS, MICHAEL TAYLOR, PHILIP INCARNATI, GREG LANE, MARK O'HALLA AND DAVID MAZURKIEWICZ. MICHAEL MCKENNA AND RONALD STRACHAN BOTH RECEIVED A HOUSING ALLOWANCE. THESE BENEFITS HAVE BEEN INCLUDED AS TAXABLE COMPENSATION. PART I, LINES 4A-B LINE 4A: THE FOLLOWING INDIVIDUAL RECEIVED SEVERANCE PAYMENTS DURING THE YEAR: MICHAEL TAYLOR: $562,615 LINE 4B: MCLAREN MAINTAINS TWO SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS FOR A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES (THE "SERPS"). THE OLD SERP WAS CLOSED TO NEW PARTICIPANTS ON OCTOBER 1, 2006, AND THE NEW SERP BECAME EFFECTIVE AS OF JANUARY 1, 2007. NO EMPLOYEE MAY PARTICIPATE IN BOTH OF THE SERPS. THE OLD SERP IS STRUCTURED AS A DEFINED BENEFIT PLAN THAT ESSENTIALLY REPLACES THE BENEFITS THE PARTICIPANT IS NOT PERMITTED TO RECEIVE UNDER MCLAREN'S QUALIFIED RETIREMENT PLAN DUE TO IRS LIMITATIONS APPLICABLE TO QUALIFIED PLANS. THE BENEFIT UNDER THE OLD SERP IS PAYABLE IN EITHER THE FORM OF A LUMP SUM DISTRIBUTION OR IN MONTHLY PAYMENTS EQUAL TO THE ACTUARIAL EQUIVALENT OF THE PARTICIPANT'S ACCRUED BENEFIT. THE BENEFIT IS PAID AT AGE 55, AND IF THE PARTICIPANT REMAINS EMPLOYED, THE BENEFIT IS PAID UPON TERMINATION OF EMPLOYMENT, REDUCED TO TAKE INTO ACCOUNT THE BENEFIT PREVIOUSLY PAID. THE NEW SERP IS STRUCTURED AS A DEFINED CONTRIBUTION PLAN, AND MCLAREN CONTRIBUTES 15 PERCENT OF EACH PARTICIPANT'S COMPENSATION TO THE PLAN EACH YEAR FOR ALLOCATION TO THE PARTICIPANT'S ACCOUNT. PARTICIPANTS IN THE NEW SERP BECOME VESTED IN THEIR ACCOUNTS UPON THE EARLIER OF FIVE YEARS OF PARTICIPATION IN THE PLAN OR ATTAINMENT OF AGE 60. PARTICIPANTS IN THE NEW SERP SELF-DIRECT THE INVESTMENT OF THEIR ACCOUNTS AND HAVE THE ACTUAL INVESTMENT RETURN CREDITED OR DEBITED TO THEIR ACCOUNTS. THE BENEFIT UNDER THE NEW SERP IS EQUAL TO THE PARTICIPANT'S ACCOUNT BALANCE, AND THE BENEFIT IS PAID IN A SINGLE SUM WITHIN 60 DAYS OF THE PARTICIPANT'S TERMINATION DATE. BENEFITS UNDER BOTH SERPS ARE PROVIDED ON A TAX-NEUTRAL BASIS. BOTH SERPS ARE DESIGNED TO COMPLY WITH INTERNAL REVENUE CODE SECTIONS 457(F) AND 409A. THE INDIVIDUALS LISTED IN PART VII WHO PARTICIPATED IN THE OLD SERP ARE: PHILIP INCARNATI AND GREG LANE. THE INDIVIDUALS LISTED IN PART VII WHO PARTICIPATED IN THE NEW SERP ARE: GREG LANE, KEVIN TOMPKINS, WILLIAM PETERSON, MARK O'HALLA, MICHAEL MCKENNA, RONALD STRACHAN AND DAVID MAZURKIEWICZ. PART I, LINE 6 MCLAREN HEALTH CARE CORPORATION (MHCC) HAS A LEADERSHIP INCENTIVE PROGRAM FOR LEADERS OF THE CORPORATION, SUBSIDIARY EXECUTIVES AND DIRECTORS, AND CORPORATE MANAGERS. THE PURPOSE OF THE PLAN IS TO ENHANCE THE ORGANIZATION'S ABILITY TO ACHIEVE ITS GOALS BY PROVIDING TOP OFFICIALS AND THE BOARD OF DIRECTORS WITH A TOOL FOR (A) CLEARLY COMMUNICATING PERFORMANCE ON THE PART OF KEY LEADERS, (B) STIMULATING AND REWARDING SUPERIOR LEVELS OF PERFORMANCE ON THE PART OF KEY LEADERS WHICH WILL ULTIMATELY BENEFIT THE COMMUNITIES MHCC SERVES, AND (C) PROTECTING MHCC'S ABILITY TO COMPETE WITH OTHER EMPLOYERS FOR HIGH-TALENT LEADERS. A MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 800596186 NONEAVAIL 2010-12-01 67125000 HOSPITAL EQUIPMENT & BUILDINGS 0 0 0 B MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 800596186 59465HRJ7 2012-07-10 120819128 HOSPITAL EQUIPMENT & BUILDINGS. REFUND PRIOR BONDS ISSUED 0 0 0 C MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 800596186 NONEAVAIL 2014-09-26 36220000 HOSPITAL EQUIPMENT & REFUNDING PRIOR BONDS ISSUED 0 0 0 D MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 800596186 59447TAW3 2015-03-31 191447638 REFUND PRIOR BONDS ISSUED 0 0 0 A 67125000 118355 67006645 2012 0 0 1 1 B 18130000 120818128 1201399 11130746 108486983 2012 1 0 1 1 C 3622000 36220000 166679 20532048 15521273 2014 1 0 1 1 D 191447638 116129342 2574 75315722 1 1 0 1 A 0 0 0 0 0 0 1 B 0 1 1 1 0 0 0 1 C 0 0 0 0 0 0 1 D 0 1 1 1 0 0.00990 0.00000 0.00990 0 0 1 A 0 0 0 1 0 0 0 0 1 B 0 1 0 0 0 0 0 0 1 C 0 1 0 0 0 0 0 0 1 D 0 1 0 0 0 0 0 0 1 A 0 B 0 C 0 D 0 PART I, LINE D, COLUMN D ISSUE DATE THE ISSUE DATE FOR THE SERIES 2015A BONDS IS 3/31/2015 AND THE ISSUE DATE AND DELIVERY DATE OF THE SERIES 2015B BONDS IS 5/4/2015. A MICHIGAN STATE HOSPITAL FINANCE AUTHORITY 800596186 59447TDC4 2015-05-04 154160000 REFUND PRIOR BONDS ISSUED 0 0 0 A 1815000 154160000 1201391 152958609 1 0 1 1 A 0 1 1 1 0 0.02890 0.00040 0.02930 0 0 1 A 0 1 0 0 1 1 PNC BANK 16.400000000000 0 0 0 0 1 A 0 PHILIP INCARNATI OFFICER PAYMENTS TREATED AS LOANS X 250000 250000 0 1 1 DAVID MAZURKIEWICZ OFFICER PAYMENTS TREATED AS LOANS X 337871 337871 0 1 1 GREGORY LANE OFFICER PAYMENTS TREATED AS LOANS X 69000 69000 0 1 1 MICHAEL MCKENNA KEY EMPLOYEE PAYMENTS TREATED AS LOANS X 86537 86537 0 1 1 WILLIAM PETERSON KEY EMPLOYEE PAYMENTS TREATED AS LOANS X 30000 30000 0 1 1 RONALD STRACHAN KEY EMPLOYEE PAYMENTS TREATED AS LOANS X 32600 32600 0 1 1 KEVIN TOMPKINS KEY EMPLOYEE PAYMENTS TREATED AS LOANS X 273237 273237 0 1 1 1079245 FORM 990, PART VI, SECTION A, LINE 2 DANIEL BOGE AND DAVE THOMPSON HAVE A BUSINESS RELATIONSHIP. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 DATA IS PREPARED INTERNALLY AND SUBMITTED TO OUR AUDITING FIRM FOR RETURN PREPARATION. ONCE THE RETURNS HAVE BEEN COMPLETED, THE FORMS ARE REVIEWED BY THE CORPORATE DIRECTOR OF BUDGET, THE CORPORATE SENIOR VICE PRESIDENT AND CFO OF MCLAREN HEALTH CARE CORPORATION (MHCC). COPIES OF DRAFT RETURNS ARE MADE AVAILABLE TO THE MHCC BOARD MEMBERS, WHO SERVE AS THE OVERALL GOVERNING BOARD. RETURNS ARE AVAILABLE FOR ALL CORPORATIONS OF WHICH MHCC IS THE SOLE MEMBER AS WELL AS OTHER RELATED ENTITIES OF THOSE CORPORATIONS FOR REVIEW RATHER THAN HAVING THE LOCAL BOARDS REVIEW THE RETURNS. THE BOARD OF MHCC IS THE ULTIMATE ACCOUNTABLE ORGANIZATION FOR THE SYSTEM; AS SUCH IT IS THE OVERALL GOVERNING BOARD OF OUR SYSTEM WHOSE RESPONSIBILITIES INCLUDES BUT ARE NOT LIMITED TO: APPROVING ALL SUBSIDIARY BOARD MEMBERS, FINANCIAL BUDGETS, AND ISSUANCE OF DEBT. FORM 990, PART VI, SECTION B, LINE 12C THE CORPORATE COMPLIANCE DEPARTMENT, IN ACCORDANCE WITH THE MCLAREN HEALTH CARE (MHC) BOARD CONFLICT OF INTEREST POLICY, ANNUALLY DISTRIBUTES THE CONFLICT OF INTEREST DISCLOSURE SURVEY TO ALL MHC CORPORATE AND SUBSIDIARY ORGANIZATION BOARD MEMBERS, EXECUTIVES AND OTHER LEADERSHIP EMPLOYEES. THE CORPORATE COMPLIANCE DEPARTMENT THROUGH THE GOVERNANCE COMMITTEE, COMPILES AND ANALYZES SURVEY DATA BY ORGANIZATION, INVESTIGATES, AND REVIEWS POTENTIAL CONFLICTS WITH THE ORGANIZATION'S CEO AND BOARD CHAIR, AND WHEN NECESSARY, RECOMMENDS ACTIONS TO BE TAKEN TO RESOLVE IDENTIFIED CONFLICTS. A COMPLETE REPORT OF ALL CORPORATE AND SUBSIDIARY BOARD MEMBER AND EXECUTIVE DISCLOSURES, CONFLICTS IDENTIFIED AND ACTIONS TAKEN IS REVIEWED BY THE MHC GOVERNANCE COMMITTEE AND EACH SUBSIDIARY CEO AND BOARD CHAIR RECEIVES A REPORT SPECIFIC TO THEIR ORGANIZATION'S BOARD MEMBERS AND EXECUTIVES. CONFLICTS ARE DISCLOSED TO THE FULL BOARD AND BOARD COMMITTEES SO APPROPRIATE ACTIONS CAN BE TAKEN. ACTIONS MAY INCLUDE PROHIBITING A BOARD MEMBER FROM PARTICIPATING IN DELIBERATIONS INVOLVING TRANSACTIONS WITH A COMPANY WITH WHICH THEY CONDUCT FINANCIAL TRANSACTIONS; BOARD MEMBERS FAILING TO COMPLETE A DISCLOSURE SURVEY OR INTENTIONALLY FAILING TO REPORT A KNOWN CONFLICT OF INTEREST ARE ASKED TO RESIGN. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE IS APPOINTED BY THE BOARD OF DIRECTORS TO REVIEW THE PERFORMANCE AND RECOMMEND THE TOTAL COMPENSATION PACKAGE OF THE MCLAREN HEALTHCARE CORPORATION'S CEO TO THE BOARD. FURTHER THE COMMITTEE ESTABLISHES THE SALARY RANGES AND PREREQUISITES OF THE OTHER MOST HIGHLY COMPENSATED OFFICERS (MHC VICE-PRESIDENTS AND MHC HOSPICE/SUBSIDIARIES CEO'S) TO THE BOARD. THE MEMBERS OF THE COMMITTEE MUST MEET THE INDEPENDENCE REQUIREMENTS OF THE APPLICABLE PROVISIONS OF SECTION 4958 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED AND FINAL TREASURY REGULATIONS SECTION 53.4958-6(C)(1)(III). THE COMMITTEE RETAINS THE SERVICES OF AN INDEPENDENT FIRM WITH SIGNIFICANT QUALIFICATIONS AND EXPERIENCE TO CONDUCT A REVIEW OF THE CORPORATION'S EXECUTIVE COMPENSATION PROGRAM. THE RETAINED FIRM UTILIZES APPROPRIATE COMPENSATION COMPARABILITY DATA. THE RETAINED FIRM CONDUCTS ANALYSIS OF THE COMPETITIVENESS OF THESE PROGRAMS AND EXPRESSES AN OPINION TO THE REASONABLENESS OF THESE COMPENSATION PROGRAMS. ALL DATA UTILIZED BY THE COMMITTEE, DELIBERATIONS OF THE COMMITTEE, AND FINAL COMPENSATION DECISIONS BY THE COMMITTEE ARE DOCUMENTED IN FORMAL REPORTS AND MINUTES. THE CORPORATE COMPENSATION COMMITTEE WORKS UNDER AND PERIODICALLY RENEWS THE MCLAREN HEALTH CARE CORPORATION COMPENSATION COMMITTEE CHARTER AND MCLAREN HEALTH CARE CORPORATION COMPENSATION PHILOSOPHY. THE MOST RECENT YEAR THIS PROCESS WAS UNDERTAKEN WAS FISCAL YEAR 2015. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: MINIMUM PENSION LIABILITY ADJUSTMENT -6,155,503. FIXED ASSET IMPAIRMENT -27,787,734. FORM 990, PART XI, LINE 2C: THE PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. MICHIGAN MOBILE PET LLC 401 SOUTH BALLENGER HIGHWAY FLINT MI 48532 382397643 HEALTH CARE SERVICES MI MCLAREN HEALTH CARE CORPORATION BAY MEDICAL FOUNDATION 1900 COLUMBUS AVE BAY CITY MI 48708 382156534 FOUNDATION MI 501(C)(3) LINE 11A, I BAY REGIONAL MEDICAL CENTER 1 BAY REGIONAL MEDICAL CENTER 1900 COLUMBUS AVE BAY CITY MI 48708 381976271 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 BAY REGIONAL MEDICAL CENTER AUXILIARY 1908 COLUMBUS AVENUE BAY CITY MI 48708 386081235 SUPPORTING ORGANIZATION MI 501(C)(3) LINE 11A, I BAY REGIONAL MEDICAL CENTER 1 BAY SPECIAL CARE HOSPITAL 1900 COLUMBUS AVE BAY CITY MI 48708 383161753 HOSPITAL MI 501(C)(3) LINE 3 BAY REGIONAL MEDICAL CENTER 1 CENTRAL MICHIGAN COMMUNITY HOSPITAL 1221 SOUTH DRIVE MT PLEASANT MI 48858 381420304 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 CHARLEVOIX NURSING HOME CORPORATION DBA BOULDER PARK TERRACE 14676 WEST UPRIGHT CHARLEVOIX MI 49720 383038683 SKILLED NURSING FACILITY MI 501(C)(3) LINE 9 NORTHERN MICHIGAN REGIONAL HEALTH SYSTEM 1 GREAT LAKES CANCER INSTITUTE 401 S BALLENGER HWY FLINT MI 48532 383584572 CANCER CARE CENTER MI 501(C)(3) LINE 7 MCLAREN HEALTH CARE CORPORATION 1 INGHAM REGIONAL HEALTHCARE FOUNDATION 401 S GREENLAWN AVE LANSING MI 48910 382463637 FOUNDATION MI 501(C)(3) LINE 7 INGHAM REGIONAL MEDICAL CENTER 1 INGHAM REGIONAL MEDICAL CENTER 401 S GREENLAWN AVE LANSING MI 48910 381434090 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 KARMANOS CANCER CENTER 4100 JOHN R ST DETROIT MI 48201 201649466 HOSPITAL MI 501(C)(3) LINE 3 KARMANOS CANCER INSTITUTE 1 KARMANOS CANCER INSTITUTE 4100 JOHN R ST DETROIT MI 48201 381613280 CANCER RESEARCH & CARE CENTER MI 501(C)(3) LINE 7 MCLAREN HEALTH CARE CORPORATION 1 LAPEER REGIONAL MEDICAL CENTER 1375 N MAIN ST LAPEER MI 48446 382689033 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 LAPEER REGIONAL MEDICAL CENTER FOUNDATION 1375 N MAIN ST LAPEER MI 48446 382689603 FOUNDATION MI 501(C)(3) LINE 11A, I LAPEER REGIONAL MEDICAL CENTER 1 MARWOOD MANOR NURSING HOME PO BOX 5011 PORT HURON MI 48060 382683251 NURSING HOME MI 501(C)(3) LINE 9 PORT HURON HOSPITAL 1 MCLAREN HEALTH CARE VILLAGE FOUNDATION 401 S BALLENGER HIGHWAY FLINT MI 48532 262693350 SUPPORTING ORG MI 501(C)(3) LINE 11A, I MCLAREN HEALTH CARE CORPORATION 1 MCLAREN HEALTH PLAN INC G-3245 BEECHER ROAD FLINT MI 48532 383252216 HEALTH CARE SERVICES MI 501(C)(4) MCLAREN HEALTH CARE CORPORATION 1 MCLAREN HOSPITALITY HOUSE 401 S BALLENGER HIGHWAY FLINT MI 48532 455567669 HOSPITALITY HOUSE MI 501(C)(3) LINE 7 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN MEDICAL GROUP 401 S BALLENGER HWY FLINT MI 48532 382988086 MANAGEMENT COMPANY MI 501(C)(3) LINE 11A, I MCLAREN HEALTH CARE CORPORATION 1 MCLAREN NORTHERN MICHIGAN 416 CONNABLE AVENUE PETOSKEY MI 49770 382146751 ACUTE CARE HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 MCLAREN REGIONAL MEDICAL CENTER 401 S BALLENGER HWY FLINT MI 48532 382383119 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 MOUNT CLEMENS REGIONAL HEALTHCARE FOUNDATION PO BOX 326 MOUNT CLEMENS MI 48046 382578873 FOUNDATION MI 501(C)(3) LINE 9 MOUNT CLEMENS REGIONAL MEDICAL CENTER 1 MOUNT CLEMENS REGIONAL MEDICAL CENTER 1000 HARRINGTON MOUNT CLEMENS MI 48043 381218516 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 NORTH OAKLAND NORTH MACOMB IMAGING INC 355 BARCLAY CIR STE A ROCHESTER HILLS MI 48307 382807040 MRI IMAGING MI 501(C)(3) LINE 3 PONTIAC OSTEOPATHIC HOSPITAL 1 NORTHERN MICHIGAN HEMATOLOGY AND ONCOLOGY 416 CONNABLE AVENUE PETOSKEY MI 49770 320020293 PHYSICIAN PRACTICE MI 501(C)(3) LINE 3 MCLAREN NORTHERN MICHIGAN 1 NORTHERN MICHIGAN MEDICAL MANAGEMENT 416 CONNABLE AVENUE PETOSKEY MI 49770 208458840 PHYSICIAN PRACTICE MI 501(C)(3) LINE 3 MCLAREN NORTHERN MICHIGAN 1 MCLAREN NORTHERN MICHIGAN FOUNDATION 360 CONNABLE AVENUE PETOSKEY MI 49770 382445611 FUNDRAISING MI 501(C)(3) LINE 11A, I MCLAREN NORTHERN MICHIGAN 1 PARKVIEW PROPERTY MANAGEMENT CORPORATION PO BOX 5011 PORT HURON MI 48060 382467310 MANAGEMENT CORP MI 501(C)(3) LINE 11A, I PORT HURON HOSPITAL 1 PONTIAC OSTEOPATHIC HOSPITAL 50 NORTH PERRY STREET PONTIAC MI 48342 381428164 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 POH RILEY FOUNDATION 50 NORTH PERRY STREET PONTIAC MI 48342 200442217 FOUNDATION MI 501(C)(3) LINE 11C, III-FI PONTIAC OSTEOPATHIC HOSPITAL 1 MCLAREN PORT HURON 1221 PINE GROVE AVENUE PORT HURON MI 48060 381369611 HOSPITAL MI 501(C)(3) LINE 3 MCLAREN HEALTH CARE CORPORATION 1 PORT HURON HOSPITAL FOUNDATION PO BOX 5011 PORT HURON MI 48060 382777750 SUPPORTING ORG MI 501(C)(3) LINE 11A, I PORT HURON HOSPITAL 1 REGIONAL EMERGENCY MEDICAL SERVICE INC 25400 W 8 MILE ROAD SOUTHFIELD MI 48034 383255499 AMBULANCE SERVICE MI 501(C)(3) LINE 9 MCLAREN MEDICAL MANAGEMENT INC 1 THE CARDIAC INSTITUTE DBA MICHIGAN HEART & VASCULAR SPECIALISTS 416 CONNABLE AVENUE PETOSKEY MI 49770 262774689 PHYSICIAN PRACTICE MI 501(C)(3) LINE 3 MCLAREN NORTHERN MICHIGAN 1 VISITING NURSE SERVICE OF MICHIGAN 401 S BALLENGER HWY FLINT MI 48532 383491714 HEALTH CARE SERVICES MI 501(C)(3) LINE 9 MCLAREN HEALTH CARE CORPORATION 1 VITALCARE INC 761 LAFAYETTE AVENUE CHEBOYGAN MI 49721 382527255 HOSPICE CARE/HOME HEALTH SERVICES MI 501(C)(3) LINE 9 MCLAREN NORTHERN MICHIGAN 1 WOMENS HOSPITAL ASSOCIATION OF FLINT MICHIGAN 401 S BALLENGER HIGHWAY FLINT MI 48532 381358053 SUPPORTING ORGANIZATION MI 501(C)(3) LINE 11A, I MCLAREN HEALTH CARE CORPORATION 1 MICHIGAN CANCER SOCIETY 4100 JOHN R ST DETROIT MI 48201 382823451 CANCER RESEARCH MI 501(C)(3) LINE 7 KARMANOS CANCER INSTITUTE 1 MCLAREN HOSPICE & HOME CARE FOUNDATION 1515 CAL DR DAVISON MI 48423 463643089 FOUNDATION MI 501(C)(3) LINE 11A, I VISITING NURSE SERVICES OF MICHIGAN 1 MCLAREN HEALTH PLAN COMMUNITY G-3245 BEECHER ROAD SUITE 200 FLINT MI 48532 272204037 INSURANCE MI 501(C)(4) MCLAREN HEALTH PLAN 1 MCLAREN - NORTHERN EQUITIES CANCER CENTER PROJECT LLC 39000 COUNTRY CLUB DRIVE FARMINGTON HILLS MI 48331 263112935 RENTAL REAL ESTATE MI N/A MOUNT CLEMENS REGIONAL HEALTH BUILDING HEALTH PARTNERS 1000 HARRINGTON ST MOUNT CLEMENS MI 48043 262524717 BUILDING MANAGEMENT MI N/A HEALTH ADVANTAGE INC G3245 BEECHER ROAD FLINT MI 48532 912141720 INSURANCE MI N/A C 0 CLARKSTON PROPERTY ASSOCIATES 50 NORTH PERRY STREET PONTIAC MI 48342 432006072 REAL ESTATE MI N/A C 0 HOSPITAL HEALTH CARE INC 50 NORTH PERRY STREET PONTIAC MI 48342 382643070 HEALTH CARE MI N/A C 0 PHYSICIAN ORGANIZED HEALTHCARE SYSTEM 50 NORTH PERRY STREET PONTIAC MI 48342 383136458 MANAGED CARE MI N/A C 0 VITALCARE HOME MEDICAL EQUIPMENT INC 761 LAFAYETTE AVENUE CHEBOYGAN MI 49721 382662954 SALE AND RENTAL OF DURABLE MEDICAL EQUIPMENT MI N/A C 0 PETOSKEY ASSURANCE LTD 68 WEST BAY ROADPO BOX 1109 GRAND CAYMAN CJ KY1-1102 980628316 PROFESSIONAL AND GENERAL LIABILITY COVERAGE CJ N/A C 0 RAPIN & RAPIN INC DBA PRESCRIPTION SERVICES PHARMACY 416 CONNABLE AVENUE PETOSKEY MI 49770 383465261 RETAIL PHARMACY MI N/A C 0 WILLOW ENTERPRISES PO BOX 5011 PORT HURON MI 48061 382491659 OCCUPATIONAL HEALTH CLINIC AND OUTPATIENT PHARMACIES MI N/A C 0 DELPHINUS INVESTMENT INC 4100 JOHN R ST DETROIT MI 48075 454758176 HOLD PASSIVE INVESTMENT MI N/A C 0 MCLAREN INSURANCE COMPANY LTD 10 MAIN ST GRAND CAYMAN CJ INSURANCE CJ N/A C 0 MID-MICHIGAN PHYSICIANS PC 2510 KERRY STREET SUITE 200 LANSING MI 48912 383267121 PHYSICIAN PRACTICE MI N/A C 0 1 1 0 0 0 0 0 0 0 0 1 1 1 1 1 1 1 0 0 MCLAREN REGIONAL MEDICAL CENTER Q 697531 ALLOCATION OF COST MCLAREN REGIONAL MEDICAL CENTER P 1015960 ALLOCATION OF COST MCLAREN REGIONAL MEDICAL CENTER K 182497 ALLOCATION OF COST MCLAREN REGIONAL MEDICAL CENTER N 1448177 ALLOCATION OF COST MCLAREN REGIONAL MEDICAL CENTER A 536979 ALLOCATION OF COST MCLAREN REGIONAL MEDICAL CENTER L 24256879 ALLOCATION OF COST LAPEER REGIONAL MEDICAL CENTER L 8957410 ALLOCATION OF COST LAPEER REGIONAL MEDICAL CENTER Q 55105 ALLOCATION OF COST LAPEER REGIONAL MEDICAL CENTER N 834135 ALLOCATION OF COST LAPEER REGIONAL MEDICAL CENTER A 296800 ALLOCATION OF COST INGHAM REGIONAL MEDICAL CENTER L 19983080 ALLOCATION OF COST INGHAM REGIONAL MEDICAL CENTER Q 286711 ALLOCATION OF COST INGHAM REGIONAL MEDICAL CENTER N 794823 ALLOCATION OF COST INGHAM REGIONAL MEDICAL CENTER A 292600 ALLOCATION OF COST BAY REGIONAL MEDICAL CENTER L 15658319 ALLOCATION OF COST BAY REGIONAL MEDICAL CENTER N 1129278 ALLOCATION OF COST BAY REGIONAL MEDICAL CENTER Q 528865 ALLOCATION OF COST BAY REGIONAL MEDICAL CENTER A 452000 ALLOCATION OF COST MT CLEMENS REGIONAL MEDICAL CENTER L 18996975 ALLOCATION OF COST MT CLEMENS REGIONAL MEDICAL CENTER N 504307 ALLOCATION OF COST MT CLEMENS REGIONAL MEDICAL CENTER A 2283167 ALLOCATION OF COST MT CLEMENS REGIONAL MEDICAL CENTER Q 99842 ALLOCATION OF COST MT CLEMENS REGIONAL MEDICAL CENTER P 50613 ALLOCATION OF COST POH REGIONAL MEDICAL CENTER L 10300586 ALLOCATION OF COST POH REGIONAL MEDICAL CENTER N 528048 ALLOCATION OF COST POH REGIONAL MEDICAL CENTER A 930148 ALLOCATION OF COST POH REGIONAL MEDICAL CENTER Q 415963 ALLOCATION OF COST CENTRAL MICHIGAN COMMUNITY HOSPITAL L 7150470 ALLOCATION OF COST CENTRAL MICHIGAN COMMUNITY HOSPITAL N 624209 ALLOCATION OF COST CENTRAL MICHIGAN COMMUNITY HOSPITAL Q 75089 ALLOCATION OF COST CENTRAL MICHIGAN COMMUNITY HOSPITAL A 144500 ALLOCATION OF COST NORTHERN MICHIGAN REGIONAL HOSPITAL L 16089344 ALLOCATION OF COST NORTHERN MICHIGAN REGIONAL HOSPITAL N 611981 ALLOCATION OF COST NORTHERN MICHIGAN REGIONAL HOSPITAL Q 206836 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER INSTITUTE L 3145180 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER INSTITUTE N 489106 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER INSTITUTE Q 73677 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER INSTITUTE A 203050 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER INSTITUTE B 11600000 CASH BARBARA ANN KARMANOS CANCER HOSPITAL N 827510 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER HOSPITAL Q 58995 ALLOCATION OF COST BARBARA ANN KARMANOS CANCER HOSPITAL L 118695 ALLOCATION OF COST MCLAREN PORT HURON L 1135015 ALLOCATION OF COST MCLAREN PORT HURON Q 246866 ALLOCATION OF COST MCLAREN PORT HURON B 5000000 CASH MARWOOD MANOR NURSING HOME Q 71909 ALLOCATION OF COST MCLAREN MEDICAL GROUP L 7116032 ALLOCATION OF COST MCLAREN MEDICAL GROUP Q 131652 ALLOCATION OF COST MCLAREN MEDICAL GROUP N 371802 ALLOCATION OF COST MCLAREN MEDICAL GROUP K 87912 ALLOCATION OF COST VISITING NURSES SERVICE OF MICHIGAN L 4934202 ALLOCATION OF COST VISITING NURSES SERVICE OF MICHIGAN Q 158625 ALLOCATION OF COST VISITING NURSES SERVICE OF MICHIGAN N 654206 ALLOCATION OF COST MCLAREN HEALTH PLAN L 7134708 ALLOCATION OF COST MCLAREN HEALTH PLAN Q 124425 ALLOCATION OF COST MCLAREN HEALTH PLAN N 765037 ALLOCATION OF COST MCLAREN HEALTH PLAN M 1330000 ALLOCATION OF COST GREAT LAKES CANCER INSTITUTE O 130225 ALLOCATION OF COST