2015-05-13T14:15:01-05:00 2014-06-30 861065772 Deloitte Tax LLP 250 East Fifth Street Suite 1900 Cincinnati OH 45202 990 2013-07-01 381490190 Lee Memorial Hospital Corporation LEEM 2697828681 420 W High Street Dowagiac MI 49047 Richard Felbinger CFO 2697828681 2015-05-13 1 Alicia M Janisch P00741382 5137847100 2015-05-08 2013 2016-02-25 16:41:14Z Borgess Lee Memorial Hospital John Ryder 420 W High Street Dowagiac MI 49047 25380523 0 0928 X www.borgesslee.com X 1954 MI To promote the health and well-being of the communities we serve. 12 8 316 37 0 0 187863 12411 25926933 25053885 173059 26561 746716 287666 27034571 25380523 0 0 0 0 16499003 15754276 0 0 0 10345204 9912514 26844207 25666790 190364 -286267 15937948 12126308 22770767 18161367 -6832819 -6035059 X Lee Memorial Hospital is a values-based community hospital continuing the healing mission of the Sisters of St. Joseph and Borgess Health. Our Mission is to promote the health and well-being of the communities we serve respecting the dignity of human life and actively responding to the needs of the poor. Our Values-We are called to: Service of the Poor: Generosity of spirit, especially for persons most in need. Reverence: Respect and compassion for the dignity and diversity of life. Integrity: Inspiring trust through personal leadership. Wisdom: Integrating excellence and stewardship. Creativity: Courageous and innovation. Dedication: Affirming the hope and joy of our ministry. 0 0 21472642 21615687 Outpatient Revenue - Fees for providing outpatient health care services allow Lee Memorial Hospital to pay for supplies, salaries, and other expenses necessary to meet our mission to provide health care services to all residents in the Cass County area regardless of their ability to pay for those services. 3624333 3648473 Inpatient Revenue - Fees for providing inpatient and swing bed health care services allow Lee Memorial Hospital to pay for supplies, salaries, and other expenses necessary to meet our mission to provide health care services to all residents in the Cass County area regardless of their ability to pay for those services. 4152 4152 Pharmacy - Pharmacy Services are provided to all patients without consideration of their ability to pay for those services. If the patient is unable to pay for pharmacy, the patient can apply for charity care and the charges will be written off. 25101127 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 1 1 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 36 0 1 316 1 0 0 0 0 0 0 0 0 0 0 X 12 8 1 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 X John Ryder 2697828681 420 W High Street Dowagiac MI 49047 X Charles K Burling DDS Chair 1.00 0.00 X X 0 0 0 Terry Harris Vice Chair 1.00 0.00 X X 0 0 0 Thomas A Atkinson Secretary 1.00 0.00 X X 0 0 0 Frank Williams Treasurer 1.00 0.00 X X 0 0 0 James Eckman Trustee 1.00 0.00 X 0 0 0 Mark Daniel PhD end 314 Trustee 1.00 0.00 X 0 0 0 Elaine Foster PhD Trustee 1.00 0.00 X 0 0 0 Marcus Free MD end 614 Trustee (Sch O) 40.00 0.00 X 338617 0 33032 Robert Hill MD Trustee/VP Medical Staff Affairs 5.00 35.00 X 0 270493 57821 Linda A Root Trustee 5.00 35.00 X 0 170321 63745 Rozanne Scherr Trustee 1.00 0.00 X 0 0 0 J Scott Winchester Trustee 1.00 0.00 X 0 0 0 John Ryder COO 20.00 20.00 X X 0 185318 81490 Mark Anthony COO - Health System 5.00 35.00 X X 0 306499 80534 Kenneth Holst end 114 CFO 40.00 0.00 X 0 162833 58427 Paul A Spaude CEO - Health System 1.00 39.00 X 0 1294457 49093 Richard Felbinger CFO - Health System 1.00 39.00 X 0 354519 112908 Abbas R Syed Physician 40.00 0.00 X 341058 0 31893 Theresa Kordish Physician 40.00 0.00 X 337198 0 13074 Srinivasan Dhatreecharan Physician 40.00 0.00 X 303412 0 37393 Milton Smith Physician 40.00 0.00 X 185409 0 16625 Giasuddin Ahmed Physician 40.00 0.00 X 272417 0 35036 1778111 2744440 671071 20 0 1 0 Ibid County Electric (Sch O) 1523 Norton Street Benton Harbor MI 49022 Capital Project 1070761 Weatherby Locums Inc 6451 N Federal Highway Fort Lauderdale FL 33308 Physician Services 733273 Apogee Medical Management 2525 E Camelback Rd Phoenix AZ 85016 Hospitalist Physician Services 684628 Belfor Property Restoration 1282 Kirts Blvd Troy MI 48084 Capital Project 384696 Premier Radiology 1535 Gull Road Kalamazoo MI 49048 Physician Radiology Service 334860 14 12411 12411 Net Patient Revenue 621990 25049733 25049733 Pharmacy Income 446110 4152 4152 25053885 26561 26561 17957 0 17957 17957 17957 Outside Svcs/Incentive 722212 214427 214427 Cafeteria/Vending 621990 38132 38132 17150 17150 269709 25380523 25268312 0 99800 348828 268598 80230 12453363 12253202 200161 120435 119231 1204 1989013 1970382 18631 842637 825922 16715 17587 17587 1357928 1344348 13580 79204 78412 792 370149 366448 3701 1392643 1379568 13075 81101 80290 811 535021 529944 5077 80799 79991 808 Physician Fees 2501069 2501069 Medical Supplies 2336163 2308225 27938 Contract Labor 630571 624265 6306 Non-operating Expenses 170410 170410 359869 353645 6224 25666790 25101127 565663 0 1116 1206 1446870 1023043 5190878 4909424 406077 445499 6782 18538 17043943 11315345 4964922 5728598 3921303 0 15937948 12126308 2982775 4089527 19787992 14071840 22770767 18161367 X -6832819 -6035059 -6832819 -6035059 15937948 12126308 X -286267 90923 993104 X 0 1 X 1 0 X 105071 105071 11701278 8075651 3625627 3986447 3076882 909565 1251147 162812 1088335 5728598 Due to Borgess Medical Center 10900667 Self Insurance Liability 82069 Pension Payable 2887803 Asset Retirement Obligations 100000 A/R Probable Refunds 92603 Escheats Payable 8698 14071840 X Part X, Line 2: From the consolidated audited financial statements of Ascension Health Alliance and its member entities ("The System") which include the activity of Lee Memorial Hospital Corporation: The System accounts for uncertainty in income tax positions by applying a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The System has determined that no material unrecognized tax benefits or liabilities exist as of June 30, 2014. 1 1 X 1 X 1 X 1 1 1 0 1 1 1863579 1099831 763748 0.02980 7346326 5839050 1507276 0.05870 9209905 6938881 2271024 0.08850 114452 5477 108975 0.00420 118197 118197 0.00460 35909 35909 0.00140 40252 40252 0.00160 308810 5477 303333 0.01180 9518715 6944358 2574357 0.10030 840 840 0.00000 109 109 0.00000 735 735 0.00000 1684 1684 0 2351341 402110 5778839 5836055 -57216 X 1 1 1 1 Borgess Lee Memorial Hospital 420 West High Street Dowagiac MI 49047 www.borgesslee.com 1060000082 X X X X Borgess Lee Memorial Hospital 1 1 X X X X X X X X 12 1 0 1 X See Part V, Section C, Supplemental Info. X X X X X X 1 0 1 1 200.000000000000 1 300.000000000000 1 X X X X X X 1 1 X 1 0 X X X X 1 X 0 0 Borgess Lee Memorial Hospital Part V, Section B, Line 3: To gain the important input needed for the CHNA, a CHNA Committee was formed. This committee included Lee Memorial Hospital leadership, representatives from governmental health organizations and community agency people who are directly involved in providing services to the medically underserved, minority, and low income populations. Below is the list of the CHNA Committee members and the organizations they represent:1) Dr. Rick Johansen - Berrien, Van Buren, Cass Counties Health Department2) Kari Adams - Lee Memorial Hospital3) Beth Cripe - Lee Memorial Hospital4) Judy Drenth - Lee Memorial Hospital5) Carol Howland - Lee Memorial Hospital6) John Ryder - Lee Memorial Hospital7) Mia Willhite - Lee Memorial Hospital8) Bob Cochrane - Cass County Council on Aging9) Mary Middleton - Cass Family Clinic10) Tom Atkins - City of Dowagiac-Polic Department11) Cindy Underwood - Department of Human Services12) Suzanne Dorman - Dowagiac Union Schools13) Dr. Arthur Culpepper - Pokagon Health Center14) Jeff Elliot - Van Buren/Cass County District Health Department15) Kathy Emans - Woodlands Behavioral Healthcare NetworkThe CHNA Committee met three times over the course of two months. Members brought data to these meetings which was reviewed. Discussions and presentations helped committee members identify key community health priorities and resources available to meet them. This process provided a significant amount of data collection that covered multiple categories which related to health needs of Cass County. This data was synthesized to develop a Community Needs Scorecard, the frame work of the CHNA.Summary of Measures Collected and Reviewed:- BLMH Community Benefit Activities- BLMH Primary Care/Providers Availability- BLMH Diabetic Advisory Committee data- Borgess Diabetic Data- Borgess Obesity Data- County Rankings & Roadmaps- Leading Diagnoses for Hospitalization-Cass County- Preventable Hospitalizations and Rates-Cass County- Michigan's Health Profile Chartbook- Michigan's State Health Assessment and State Health Improvement Plan- Health Risk Behavior in The State of Michigan-2011 Behavioral Risk Factor Survey.Phases of the Assessment Process:- Community/agency/organization meetings and discussions- Information/data collection and review- Key community health needs identification/agreement- Strategy development- Community stakeholder consideration and validation- Indicator/Measurement development necessary to monitor community changes and impacts.Assessment Priorities and Health Needs Identification:To determine priorities, five priority selection criteria were set:1. Impact on the community health improvement2. Scope of the community affected3. Threat to long term quality of life4. Resources/Capacity to address identified issues5. Consequences of inactionAfter synthesizing the information and applying the priority selection criteria, the following were identified as major factors affecting the health of Cass County residents (Assessment Priorities) and were used to determine the four major focus areas (Health Needs Identification) as identified through the CHNA process:Major Factors/Focus Areas:Access to primary care:- Understanding of Physicians- Urgent care when needed- Cass County has an incredibly high patient to physician rate of 8,401:1 compared to state rate of 1,119:1 and national benchmark of 631:1Diabetes/Obesity:- 10.7% of the residents in Cass County have diabetes and the rate is growing.- 31% of the residents in Cass County are considered obese.- Obesity is Michigan's top health priority.- Both diabetes and obesity are leading causes of disease and death.Access to mental health/psychiatric care:- Mental health us a leading cause of disability in Cass County.- Nationally, it is estimated that 25% of adults endure a mental disorder during a year.Community wellness/health education:- Borgess Lee Memorial Hospital is in the position to lead a community wellness effort through screenings and other similar initiatives.- Health education is the key to reducing the diabetes and obesity rates as well as the rates for many other chronic diseases.Community Assets Identified:The CHNA Committee will continue to serve as a forum for community and healthcare stakeholders to work together in addressing the needs of the community through shared initiatives and collaboration to the four major factors/focus areas noted above. The committee represents community assets that are vital to improving the health of residents of Cass County, including: Lee Memorial Hospital and its primary care provider network, the Cass County Family Clinic, the Cass County Health Department, the Cass County Council on Aging, the Department of Human Services, the Pokagon Health Center and Woodlands Behavioral Healthcare Network. Borgess Lee Memorial Hospital Part V, Section B, Line 5d: The Community Health Needs Assessment ("CHNA") of the hospital facility can be located at the following web address:www.borgess.com/files/chna/CHNA_Borgess-Lee.pdf Borgess Lee Memorial Hospital Part V, Section B, Line 14g: A summary of the financial assistance policy is posted on the hospital facility's emergency rooms or waiting rooms, admission offices and available upon request. Borgess Lee Memorial Hospital Part V, Section B, Line 20d: The amounts were determined through financial assistance policy. Part I, Line 7: The cost of providing charity care and community benefit programs is estimated using internal cost data, and is calculated in compliance with Catholic Health Association (CHA) Guidelines. The organization uses a cost accounting system that addresses all patient segments. For the information in the table, a cost-to-charge ratio was calculated and applied. Part II, Community Building Activities: The organization provides education and materials to help promote healthy living through community health fairs, diabetes education and health screenings. Part III, Line 4: From the consolidated audited financial statements of Ascension Health Alliance and its member entities ("The System") which includes the activity of Lee Memorial Hospital Corporation:The provision for doubtful accounts is based upon management's assessment of expected net collections considering economic conditions, historical experience, trends in healthcare coverage, and other collection indicators. Periodically throughout the year, management assesses the adequacy of the allowance for doubtful accounts based upon historical write-off experience by payor category, including those amounts not covered by insurance. The results of this review are then used to make any modifications to the provision for doubtful accounts to establish an appropriate allowance for doubtful accounts. After satisfaction of amounts due from insurance and reasonable efforts to collect from the patient have been exhausted, the System follows established guidelines for placing certain past-due patient balances with collection agencies, subject to the terms of certain restrictions on collection efforts as determined by the System. Accounts receivable are written off after collection efforts have been followed in accordance with the System's policies. Part III, Line 8: Ascension Health and related health ministries follow the Catholic Health Association ("CHA") guidelines for determining community benefit. CHA community benefit reporting guidelines suggest that Medicare shortfall is not treated as community benefit. Part III, Line 9b: The organization has a written debt collection policy and collection procedures will only pertain to patients that do not qualify for charity or financial assistance and who are not complying with payment arrangements that have been agreed to by the hospital and the patient. Part VI, Line 2: See Part V, Section B, Line 3 disclosure. Part VI, Line 3: As part of the intake process the organization provides a copy of the policy and financial assistance contact information to patients. Also, available is a staff person to discuss with the patient the availability of various government benefits, such as Medicaid or state and local programs and assist the patient with qualification for such programs, where applicable. Part VI, Line 4: In 2013, a Community Health Needs Assessment (CHNA) was conducted for the approximate 52,000 residents of Cass County by Borgess-Lee Memorial Hospital (BLMH) located in Dowagiac. While BLMH is the only hospital in Cass County, there are three Michigan based health systems and three large Indiana hospitals that serve the Cass County population: Borgess Health (BLMH and Borgess Medical Center Kalamazoo); Lakeland Health (Lakeland Hospital-Niles and Lakeland Medical Center- St. Joseph); Bronson Healthcare (Bronson Lakeview Hospital-Paw Paw and Bronson Methodist Hospital-Kalamazoo); Elkhart General Hospital-Elkhart, Indiana; Memorial Hospital-South Bend, Indiana; and St. Joseph Regional Medical Center- South Bend, Indiana.Description of the Community:Cass County is located in southwest Michigan and borders the State of Indiana. It covers about 491 square miles with total population of 52,242. The area was originally inhabited by three bands of Potawatomi Indians. During Civil War, Cass County played a major role in The Underground Railroad which resulted in the settling of many black families in the area. Both of these factors have contributed to the unique cultural diversity of the county.According to 2010 US Census Data Cass County has 20,101 households. The current unemployment rate is about 8.1%, below the state wide average. The median household income is $45,342. The per capita income is $23,045. Both are below the Michigan average. The percentage of persons with Bachelor's degrees is 16.7% much lower than the Michigan average of 25%. About 90% of the full-time residents are white, 5.4% are African-American, 3% are Hispanic and 1% is Native American. About 13.3% of the residents fall below the poverty level, which is better than the state-wide average. The overall population tends to skew slightly older and is declining somewhat.Three characteristics combine to make Cass County somewhat unique, especially as it relates top serving health needs. The first is the county's rather large, rural/agriculture base. About 60% of the Cass County is farm land ranking it 15th out of Michigan's 83 counties. Much of the farm land is used for growing seasonal fruits and vegetables which require migrant farm laborers to harvest. This results in a heavy influx of mostly Hispanic families which in turn impacts the need and delivery of health care services.The second characteristic relates to the significant recreational opportunities that abound in Cass County. It has over 250 lakes and the county's close proximity to major population centers in Indiana and Illinois makes a regional recreational "Mecca". During the summer, the population around the lakes grows significantly. Both the summer and full-time lake residents tend to be very affluent. While most of the health care needs of the summer residents are served by out-of-state providers, these people do impact the area's health care service delivery, especially emergency room and fast track primary care services.The third characteristic is the large blue-collar population in the county's two largest population centers-Dowagiac and Cassapolis. The City of Dowagiac is the county's largest city. It has about 2,400 households with a total population of 5,879. Median household income is $31,329 and per capita income $17,739. Both are well below the county and state averages. Also, about 20% of the residents fall below the poverty rate. The Village of Cassapolis, the County Seat, ranks are even lower. It has about 700 households with a total population of 1,774. Median household income is $24,781 and per capita income is $15,114. Almost 30% of the Cassapolis residents fall below the poverty level. Part VI, Line 5: The organizations governing body is comprised of persons who reside in Cass County and are neither employees nor contractors of the organization. The organization is a Critical Access Hospital and provides medical services to all people in the community without regard to the patient's race, creed, national origin, economic status or ability to pay. In addition, the organization participates in Medicare, Medicaid, CHAMPUS and other government sponsored health care programs. The organization provides education and materials for nutrition/weight loss management, Women's Health Fair, PSA and Flu Shot Clinics. Part VI, Line 6: Lee Memorial Hospital Corporation is a wholly owned subsidiary of Borgess Health Alliance, Inc., which is a member of Ascension Health. Ascension Health Alliance, d/b/a Ascension (Ascension), is a Missouri nonprofit corporation formed on September 13, 2011. Ascension is the sole corporate member and parent organization of Ascension Health, a Catholic national health system consisting primarily of nonprofit corporations that own and operate local healthcare facilities, or Health Ministries, located in 23 of the Unites States and the District of Columbia. Ascension served as the member or shareholder of various subsidiaries. Ascension and its member organizations are hereafter referred to collectively as the System. Ascension is sponsored by Ascension Sponsor, a Public Juridic Person. The Participating Entities of Ascension Sponsor are the Daughters of Charity of St. Vincent de Paul, St. Louise Province; the Congregation of St. Joseph; the Congregation of the Sisters of St. Joseph of Carondelet; the Congregation of Alexian Brothers of the Immaculate Conception Province, Inc. American Province; and the Sisters of the Sorrowful Mother of the Third Order of St. Francis of Assisi US/Caribbean Province. Marian Health System, which was previously sponsored by the Sisters of the Sorrowful Mother of the Third Order of St. Francis of Assisi US/Caribbean Province, became part of Ascension Health on April 1, 2013.The Hospital, located in Dowagiac, Michigan, is a nonprofit critical access hospital. The Hospital provides inpatient, outpatient, and emergency care services for the residents of Dowagiac, Michigan. Admitting physicians are primarily practitioners in the local area. Substantially all expenses of Ascension Health and its sponsored organizations are related to providing health care services.The System directs its governance and management activities toward strong, vibrant, Catholic Health Ministries united in service and healing, and dedicates its resources to spiritually centered care which sustains and improves the health of the individuals and communities it serves. In accordance with the System's mission of service to those persons living in poverty and other vulnerable persons, each Health Ministry accepts patients regardless of their ability to pay. The System uses four categories to identify the resources utilized for the care of persons living in poverty and community benefit programs:- Traditional charity care includes the cost of services provided to persons who cannot afford healthcare because of inadequate resources and/or who are uninsured or underinsured.- Unpaid cost of public programs, excluding Medicare, represents the unpaid cost of services provided to persons covered by public programs for persons living in poverty and other vulnerable persons.- Cost of other programs for persons living in poverty and other vulnerable persons includes unreimbursed costs of programs intentionally designed to serve the persons living in poverty and other vulnerable persons of the community, including substance abusers, the homeless, victims of child abuse, and persons with acquired immune deficiency syndrome.- Community benefit consists of the unreimbursed costs of community benefit programs and services for the general community, not solely for the persons living in poverty, including health promotion and education, health clinics and screenings, and medical research.Discounts are provided to all uninsured patients, including those with the means to pay. Discounts provided to those patients who did not qualify for assistance under charity care guidelines are not included in the cost of providing care of persons living in poverty and other community benefit programs. The cost of providing care of persons living in poverty and other community benefit programs is estimated by reducing charges foregone by a factor derived from the ratio of each entity's total operating expenses to the entity's billed charges for patient care. 0 1 0 0 0 0 0 0 0 Marcus Free MD end 614 Trustee (Sch O) 317240 0 20000 0 1377 0 17500 0 15532 0 371649 0 0 0 Robert Hill MD Trustee/VP Medical Staff Affairs 0 252061 0 0 0 18432 0 36289 0 21532 0 328314 0 0 Linda A Root Trustee 0 145627 0 0 0 24694 0 54429 0 9316 0 234066 0 16355 John Ryder COO 0 161749 0 0 0 23569 0 60471 0 21019 0 266808 0 13285 Mark Anthony COO - Health System 0 277222 0 0 0 29277 0 68887 0 11647 0 387033 0 0 Kenneth Holst end 114 CFO 0 155451 0 0 0 7382 0 48721 0 9706 0 221260 0 0 Paul A Spaude CEO - Health System 0 500635 0 615162 0 178660 0 31771 0 17322 0 1343550 0 132809 Richard Felbinger CFO - Health System 0 279667 0 0 0 74852 0 90527 0 22381 0 467427 0 35129 Abbas R Syed Physician 321058 0 20000 0 0 0 17500 0 14393 0 372951 0 0 0 Theresa Kordish Physician 337198 0 0 0 0 0 6900 0 6174 0 350272 0 0 0 Srinivasan Dhatreecharan Physician 270088 0 33324 0 0 0 23000 0 14393 0 340805 0 0 0 Milton Smith Physician 175087 0 10322 0 0 0 5000 0 11625 0 202034 0 0 0 Giasuddin Ahmed Physician 244917 0 27500 0 0 0 21002 0 14034 0 307453 0 0 0 Part I, Line 3 Ascension Health, a related organization of Lee Memorial Hospital Corporation uses the following to establish the compensation of the organization's CEO: - Compensation Committee, - Independent Compensation Consultant, - Compensation Survey or Study, and - Approval by the Board or Compensation Committee. Part I, Line 4b Eligible executives participate in a program that provides for supplemental retirement benefits. The payment of benefits under the program, if any, is entirely dependent upon the facts and circumstances under which the executive terminates employment with the organization. Due to the substantial risk of forfeiture provision, there is no guarantee that these executives will ever receive any benefit under the program. Any amount ultimately paid to the executive is reported as compensation on Form 990, Part II, column B in the year paid. The following individuals received payout from Ascension Health's nonqualified retirement plan in the amount as noted: Paul A. Spaude - $132,809 Richard Felbinger - $35,129 John Ryder - $13,285 Linda A. Root - $16,355 Form 990, Part VI, Section A, line 2 Many of the persons listed on Part VII have a "business relationship" with each other by virtue of sitting on related Borgess Health Alliance, Inc. entity boards. Form 990, Part VI, Section A, line 6 Lee Memorial Hospital Corporation has a single corporate member, Borgess Health Alliance, Inc. Form 990, Part VI, Section A, line 7a Lee Memorial Hospital Corporation has a single corporate member, Borgess Health Alliance, Inc., who has the ability to elect members to the governing body of Lee Memorial Hospital Corporation. Form 990, Part VI, Section A, line 7b All decisions that have a material impact to Lee Memorial Hospital Corporation financial information or corporation as a whole are subject to approval by its sole corporate member, Borgess Health Alliance, Inc. Form 990, Part VI, Section B, line 11 Management, including certain officers, works diligently to complete the Form 990 and attached schedules in a thorough manner. Prior to filing the return, all Board Members are provided the Form 990 and management team members are available to answer any Board Members' questions. Form 990, Part VI, Section B, line 12c The organization regularly and consistently monitors and enforces compliance with the conflict of interest policy in that any director, principal officer, or member of a committee with governing board delegated powers, who has a direct or indirect financial interest, must disclose the existence of the financial interest and be given the opportunity to disclose all material facts to the directors and members of the committees with governing board delegated powers considering the proposed transaction or arrangement. The remaining individuals on the governing board or committee will decide if conflicts of interest exist. Each director, principal officer and member of a committee with governing board delegated powers annually signs a statement which affirms such person has received a copy of the conflict of interest policy, has read and understands the policy, has agreed to comply with the policy, and understands that the organization is charitable and in order to maintain its federal tax exemption it must engage primarily in activities which accomplish its tax-exempt purpose. Form 990, Part VI, Section B, line 15 In determining the compensation of the organization's CEO, the process, performed by Ascension Health, a related organization of Lee Memorial Hospital Corporation, included a review and approval by independent persons, comparability data and contemporaneous substantiation of the deliberation and decision. The Compensation Committee reviewed and approved the compensation. In the review of the compensation, the CEO was compared to individuals at other organizations in the area who hold the same title. During the review and approval of the compensation, documentation of the decision was recorded in the committee minutes. The individual was not present when her compensation was decided. In determining the compensation of the other officer of the organization, the process, performed by Borgess Medical Center, a related organization of Lee Memorial Hospital Corporation, included a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision. The Executive/Compensation committee reviewed and approved the compensation. In the review of the compensation, the other officer of the organization was compared to individuals at other organizations in the area who hold the same title. During the review and approval of the compensation, documentation of the decision was recorded in the board minutes. Form 990, Part VI, Section C, line 19 The organization will provide any documents open to public inspection upon request. Form 990, Part VII, Section A: Compensation paid to Marcus Free, M.D.: Marcus Free, M.D., receives his compensation for Chief of Staff services at Lee Memorial Hospital Corporation and not for his role as trustee for Lee Memorial Hospital Corporation. Form 990, Part VII, Section B: Compensation paid to Ibid County Electric: Amounts paid to Ibid County Electric represent amounts paid for materials and services. These amounts cannot be separated. Form 990, Part XI, line 9: Deferred Pensions Cost - FAS 158 817,006. Transfer from Affiliates 176,098. Ascension Health Alliance PO Box 45998 St Louis MO 63145 453358926 National Health System MO Section 501(c)(3) Schedule A, Line 11a N/A 0 Ascension Health PO Box 45998 St Louis MO 63134 311662309 National Health System MO Section 501(c)(3) Schedule A, Line 11a Ascension Health Alliance 0 Borgess Health Alliance Inc 1521 Gull Road Kalamazoo MI 49048 382335286 Health System Parent MI Section 501(c)(3) Schedule A, Line 11c Ascension Health 0 Borgess Medical Center 1521 Gull Road Kalamazoo MI 49048 381360526 Healthcare Services MI Section 501(c)(3) Schedule A, Line 3 Borgess Health Alliance Inc 1 Borgess Ambulatory Care Corporation 1521 Gull Road Kalamazoo MI 49048 382468823 Holding Company MI Section 501(c)(3) Schedule A, Line 3 Borgess Health Alliance Inc 1 Borgess Foundation 1521 Gull Road Kalamazoo MI 49048 237222558 Fundraising MI Section 501(c)(3) Schedule A, Line 11c Borgess Health Alliance Inc 1 Borgess Nursing Home 3057 Gull Road Kalamazoo MI 490481281 382555589 Residential Care MI Section 501(c)(3) Schedule A, Line 3 Borgess Health Alliance Inc 1 Lee Memorial Foundation 420 West High Street Dowagiac MI 49047 382860459 Fundraising MI Section 501(c)(3) Schedule A, Line 11c Borgess Health Alliance Inc 1 ProMed Healthcare 1521 Gull Road Kalamazoo MI 49048 383193801 Healthcare Services MI Section 501(c)(3) Schedule A, Line 9 Borgess Health Alliance Inc 1 Visiting Nurses Home Care DBA Borgess VNA Home Care 348 North Burdick Kalamazoo MI 49007 382717691 Home Healthcare Services MI Section 501(c)(3) Schedule A, Line 9 Borgess Health Alliance Inc 1 Textile Systems Inc 817 Walbridge Kalamazoo MI 49007 382705047 Laundry Services MI N/A C 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 Borgess Medical Center P 18432166 Actual Amount Paid Borgess Medical Center R 23172390 Actual Amount Paid Lee Memorial Foundation S 176908 Actual Amount Paid