2015-11-13T17:55:57-06:00 2014-12-31 861065772 DELOITTE TAX LLP 200 RENAISSANCE CENTER SUITE 3900 DETROIT MI 48243 990 2014-01-01 382601965 OAKWOOD HEALTH PROMOTIONS INC OAKW 3135865052 16351 ROTUNDA DRIVE DEARBORN MI 48120 JOHN KEUTEN EVP AND CFO 3135865052 2015-11-13 1 SHAWNA M JIMENEZ P01222873 3133963000 2014 2016-03-07 17:11:31Z JOHN KEUTEN 16351 ROTUNDA DRIVE DEARBORN MI 48120 83657288 0 X WWW.OAKWOOD.ORG X 1985 MI PROVISION OF INDEPENDENT LIVING, ASSISTED LIVING, ALZHEIMER CARE, AND SKILLED NURSING CARE. 3 0 555 36 12150 -3551 80551 91456 32955373 33700265 2838503 3619268 9450 12150 35883877 37423139 0 0 0 0 17453556 17527059 0 0 0 15113823 15733622 32567379 33260681 3316498 4162458 90488059 93452652 45528546 45763792 44959513 47688860 OAKWOOD HEALTH PROMOTIONS' PRIMARY EXEMPT PURPOSE IS THE PROVISION OF FOUR DIFFERENT LEVELS OF ELDER CARE: INDEPENDENT LIVING, ASSISTED LIVING, ALZHEIMER CARE, AND SKILLED NURSING CARE. 0 0 18512463 22567640 OAKWOOD HEALTH PROMOTIONS PROVIDED OVER 62,000 DAYS OF NURSING HOME CARE. OVER 60% OF THE NURSING HOME RESIDENTS WERE MEDICARE OR MEDICAID PATIENTS. OAKWOOD HEALTH PROMOTIONS ALSO PROVIDED OVER $499,000 OF UNCOMPENSATED CARE. 7617843 11132625 OAKWOOD HEALTH PROMOTIONS ALSO PROVIDED SENIOR LIVING APARTMENTS FOR OVER 250 RESIDENTS DURING 2014, WHICH INCLUDED MEALS, ACTIVITIES, SECURITY SERVICES, TRANSPORTATION, FITNESS, ETC. 26130306 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 31 0 1 555 1 1 1 0 0 0 0 0 0 0 0 0 X 3 0 0 1 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 0 0 0 MI X DAVE KULEK 3132539606 16351 ROTUNDA DR DEARBORN MI 481201119 GOCH ELIZABETH LTC CHIEF ADMIN OFFICER-VICE CHAIR 38.00 2.00 X X 0 234934 45824 ELSEY MATTHEW SECRETARY/TREASURER 2.00 53.00 X X 0 300068 74857 CAMPBELL DAVID EVP, OPS - CHAIRMAN 1.00 51.00 X X 0 679591 194519 WELDAY DOUGLAS EVP THRU 3/14 0.00 52.00 X X 0 799054 391378 FERBER DAVID ALAN DIRECTOR, HR-POST ACUTE 40.00 0.00 X 106569 0 11388 COTTRILL CARL F ADMINISTRATOR, SNC DEARBORN 40.00 0.00 X 113130 0 25245 IWANIUSZ IRENE ANNA LICENSED PRACTICAL NURSE 40.00 0.00 X 108679 0 4136 MEDVEC BARBARA FORMER OFFICER THRU 10/13 0.00 50.00 X 0 395039 104999 328378 2408686 852346 3 1 1 0 MORRISON MANAGEMENT SPECIALISTS INC PO BOX 102289 ATLANTA GA 30368 FOOD SERVICES 3621288 HOLSBEKE 325 N AVENUE MT CLEMENS MI 30353 FACILITY REPAIR 234396 THERAPY STAFF PO BOX 538268 ATLANTA GA 30353 THERAPY SERVICES 176654 MASTERCRAFT 12870 INKSTER RD REDFORD MI 48239 CARPETING/FLOOR REPAIR 162868 GENERAL LINEN PO BOX 02728 DETROIT MI 48202 LAUNDRY 106349 5 91456 91456 NET PATIENT SERVICE 624100 22567640 22567640 APARTMENT RENTAL 623990 9929308 9929308 OTHER RESIDENT SERVICE 623000 1203317 1203317 33700265 1748437 1748437 48104980 46141263 92886 1963717 -92886 1870831 1870831 PARKING GARAGE INCOME 812930 12150 12150 12150 37423139 33700265 12150 3619268 X 14182608 10740144 3442464 2308090 1747860 560230 1036361 784811 251550 8400 8400 3003 3003 47000 47000 194262 194262 5119460 4206086 913374 86834 26907 59927 568443 43996 524447 67492 35846 31646 1664855 1664855 52254 29312 22942 6856 250 6606 1245235 1245235 1472089 1472089 227328 223512 3816 CORPORATE ALLOCATIONS 1810982 1383378 427604 0 PHARMACEUTICALS 1343477 1343477 0 0 MEDICAL SUPPLIES 432025 432025 BAD DEBT 383889 383889 0 0 999738 366634 633104 33260681 26130306 7130375 0 10006889 13656104 1963669 2143117 38461 36648 108731 99876 52641827 24622970 28784297 28018857 49307861 49242184 278151 255866 90488059 93452652 2904909 3299152 605800 602450 13173900 14244169 28843937 27618021 45528546 45763792 X 44959513 47688860 0 0 44959513 47688860 90488059 93452652 4162458 -1433111 0 X 0 1 X 1 0 X 39688 50746 144644 80551 91456 407085 33857875 35458810 33653196 32955373 33700265 169625519 33897563 35509556 33797840 33035924 33791721 170032604 0 0 0 170032604 3719785 1337081 1884717 1303080 1748437 9993100 3719785 1337081 1884717 1303080 1748437 9993100 740 740 37618088 36846637 35682557 34339004 35540158 180026444 0.94450 0.92350 0.05550 0.07650 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 4051214 4051214 38647666 18343177 20304489 8408416 5574701 2833715 1534531 705092 829439 28018857 ALLOCATED PORTION OF OBLIGATED GROUP DEBT OBLIGATIONS 26954843 DUE TO AFFILIATES 663178 27618021 X 33789074 92886 92886 33696188 3726951 3726951 37423139 31074522 92886 92886 30981636 2279045 2279045 33260681 PART IV, LINE 2B: THE ESCROW ACCOUNT LIABILITY IS REFUNDABLE RESIDENT DEPOSITS. THESE DEPOSITS CONSIST OF INTEREST-BEARING INVESTMENTS HELD BY OAKWOOD HEALTHCARE PROMOTIONS ("OHP") IN ESCROW FOR CURRENT AND PROSPECTIVE RESIDENTS. INTEREST EARNED ON RESIDENT FUNDS IS AVAILABLE TO OHP; INTEREST EARNED ON FUNDS OF PROSPECTIVE RESIDENTS IS NOT CREDITED TO THEM UNTIL THEY ENTER THE FACILITY OR WITHDRAW THEIR APPLICATION. DEPOSITS ARE REFUNDED NO LATER THAN 90 DAYS FROM DATE THAT RESIDENTS PROVIDE NOTICE THAT THEY ARE LEAVING THE FACILITY, IN ACCORDANCE WITH DISCLOSURE STATEMENT CONTRACT. PART X, LINE 2: OHP ACCOUNTS FOR INCOME TAXES IN ACCORDANCE WITH ACCOUNTING STANDARDS CODIFICATION (ASC) 740, INCOME TAXES. ACCORDINGLY, OHP HAS REVIEWED ITS INCOME TAX POSITION, EVALUATED POTENTIAL EXPOSURE, AND FOUND IT TO NOT BE MATERIAL. PART XI, LINE 2D - OTHER ADJUSTMENTS: RECLASS GAIN/LOSS ON DISPOSAL OF FIXED ASSETS 92,886. PART XI, LINE 4B - OTHER ADJUSTMENTS: NET INVESTMENT INCOME/LOSS 3,712,154. RECLASS OF CONTRIBUTIONS 14,797. PART XII, LINE 2D - OTHER ADJUSTMENTS: RECLASS GAIN/LOSS ON DISPOSAL OF FIXED ASSETS 92,886. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET UNREALIZED GAIN/LOSS ON INVESTMENTS -1,433,111. NET INVESTMENT INCOME/LOSS 3,712,154. ROUNDING 2. 1 0 0 0 0 0 0 0 0 GOCH ELIZABETH LTC CHIEF ADMIN OFFICER-VICE CHAIR 0 170916 0 37171 0 26847 0 26465 0 19359 0 280758 0 0 ELSEY MATTHEW SECRETARY/TREASURER 0 217162 0 55673 0 27233 0 52981 0 21876 0 374925 0 0 CAMPBELL DAVID EVP, OPS - CHAIRMAN 0 444851 0 177528 0 57212 0 172821 0 21698 0 874110 0 0 WELDAY DOUGLAS EVP THRU 3/14 0 68107 0 276092 0 454855 0 388123 0 3255 0 1190432 0 141389 MEDVEC BARBARA FORMER OFFICER THRU 10/13 0 206580 0 128490 0 59969 0 100282 0 4717 0 500038 0 67422 PART I, LINE 3 OAKWOOD HEALTHCARE, INC., A RELATED TAX-EXEMPT ORGANIZATION OF OAKWOOD HEALTH PROMOTIONS, INC., USES THE FOLLOWING TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S TOP MANAGEMENT OFFICIAL: - COMPENSATION COMMITTEE - INDEPENDENT CONSULTANT - WRITTEN EMPLOYMENT CONTRACT - COMPENSATION SURVEY OR STUDY - APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE PART I, LINE 4A FOR SOME INDIVIDUALS, THE EMPLOYMENT AGREEMENT MAY PROVIDE THAT IF THE EMPLOYER TERMINATES THE AGREEMENT AND THE PARTIES SEPARATE OTHER THAN FOR CAUSE, THE EMPLOYEE MAY BE ENTITLED TO SEVERANCE PAY. THE TERMS AND CONDITIONS TO RECEIVE SEVERANCE PAYMENTS REQUIRE THE EMPLOYEE TO SIGN A RELEASE OF CLAIMS FORM THAT COVERS ALL SITUATIONS SURROUNDING THE EMPLOYEE'S EMPLOYMENT AND SEPARATION FROM THE COMPANY. SEVERANCE PAYMENTS MADE BY OAKWOOD HEALTHCARE, INC., A RELATED ORGANIZATION OF OAKWOOD HEALTH PROMOTIONS, INC., DURING 2014 INCLUDE PAYMENTS TO THE FOLLOWING: DOUGLAS WELDAY, FORMER OFFICER - $383,981. PART I, LINE 5A: OAKWOOD HEALTHCARE, INC. IS THE CORPORATE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC. OAKWOOD HEALTHCARE, INC. PAYS COMPENSATION ON BEHALF OF OAKWOOD HEALTH PROMOTIONS, INC. OAKWOOD HEALTHCARE, INC. HAS SHORT-TERM AND LONG-TERM INCENTIVE PLANS FOR EXECUTIVES. INCENTIVE AWARDS ARE CALCULATED BASED ON THE ACHIEVEMENT OF MULTIPLE TARGETS, INCLUDING THE ATTAINMENT OF OPERATING REVENUE TARGETS. PART I, LINE 5B: OAKWOOD HEALTHCARE, INC. IS THE CORPORATE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC. OAKWOOD HEALTHCARE, INC.'S OPERATING REVENUE TARGETS, USED FOR PURPOSES OF DETERMINING SHORT-TERM AND LONG-TERM INCENTIVE AWARDS FOR EXECUTIVES, INCLUDE THE REVENUES OF OAKWOOD HEALTHCARE, INC. AND ITS AFFILIATE ORGANIZATIONS. FORM 990, PART VI, SECTION A, LINE 3 OAKWOOD HEALTHCARE, INC., ON BEHALF OF OAKWOOD HEALTH PROMOTIONS, INC., HAS OUTSOURCED THE MANAGEMENT DUTIES OF DIETARY SERVICES, CLINICAL ENGINEERING, FACILITY SERVICES, ENVIRONMENTAL SERVICES AND LAUNDRY SERVICE. ALL COMPANIES ENGAGED TO PROVIDE MANAGERIAL SERVICES FOR THE ORGANIZATION REPORT DIRECTLY TO SITE ADMINISTRATORS AND/OR CORPORATE DIRECTORS EMPLOYED BY OAKWOOD HEALTHCARE, INC. FORM 990, PART VI, SECTION A, LINE 4 EFFECTIVE SEPTEMBER 1, 2014, WILLIAM BEAUMONT HOSPITAL ("WBH"), OAKWOOD HEALTHCARE, INC. ("OAKWOOD"), AND ZIEGER HEALTHCARE CORPORATION, THE SOLE MEMBER OF BOTSFORD GENERAL HOSPITAL ("BOTSFORD"), CONSUMMATED THEIR AFFILIATION PURSUANT TO WHICH BEAUMONT HEALTH, A MICHIGAN NONPROFIT CORPORATION, WAS CREATED. AS PART OF THE AFFILIATION AGREEMENT, BEAUMONT HEALTH BECAME THE SOLE CORPORATE MEMBER OF WBH, OAKWOOD, AND BOTSFORD AND COMBINED THE OPERATIONS OF WBH, OAKWOOD, AND BOTSFORD, AND THEIR SUBSIDIARIES AND AFFILIATES, UNDER A NEW SYSTEM REFERRED TO AS BEAUMONT HEALTH. THE ARTICLES AND BYLAWS OF OAKWOOD HEALTH PROMOTIONS, INC. WERE AMENDED TO PROVIDE BEAUMONT HEALTH, AS THE PARENT CORPORATION AND OAKWOOD HEALTHCARE, INC., AS THE SOLE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC., WITH RESERVED POWERS TO TAKE SPECIFIC ACTIONS WITH RESPECT TO OAKWOOD HEALTH PROMOTIONS, INC. FORM 990, PART VI, SECTION A, LINE 6 OAKWOOD HEALTHCARE, INC. IS THE CORPORATE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC. FORM 990, PART VI, SECTION A, LINE 7A BEAUMONT HEALTH IS THE PARENT CORPORATION AND SOLE MEMBER OF OAKWOOD HEALTHCARE, INC., WHICH IS THE SOLE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC. OAKWOOD HEALTHCARE, INC., ACTING SOLELY AT THE DIRECTION OF THE PARENT, HAS THE RIGHT TO ELECT ONE OR MORE MEMBERS OF OAKWOOD HEALTH PROMOTIONS, INC.'S GOVERNING BODY. FORM 990, PART VI, SECTION A, LINE 7B BEAUMONT HEALTH, AS THE PARENT OF OAKWOOD HEALTHCARE, INC. AND OAKWOOD HEALTHCARE, INC., AS THE CORPORATE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC., HAVE DESIGNATED RESERVED POWERS OVER OAKWOOD HEALTH PROMOTIONS, INC.'S OPERATIONS, INCLUDING BUT NOT LIMITED TO BUDGET, ACQUISITIONS, CAPITAL PROJECTS AND PARTICIPATION IN JOINT VENTURES. FORM 990, PART VI, SECTION B, LINE 11 THE ORGANIZATION'S PROCESS FOR PREPARATION AND REVIEW OF FORM 990 INCLUDES PREPARATION BY AN OUTSIDE ACCOUNTING FIRM AND REVIEW BY LEADERSHIP WITHIN THE FINANCE DEPARTMENT. ADDITIONALLY, THE FORM 990 WAS REVIEWED AT A REGULARLY SCHEDULED MEETING OF THE ORGANIZATION'S BOARD OF TRUSTEES PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C OAKWOOD HEALTHCARE, INC., AS THE CORPORATE MEMBER OF OAKWOOD HEALTH PROMOTIONS, INC., REQUIRES OAKWOOD HEALTH PROMOTIONS, INC.'S GOVERNING BODY TO ADOPT OAKWOOD HEALTHCARE, INC.'S CONFLICT OF INTEREST POLICY AND PROCEDURES. AS SUCH, OAKWOOD HEALTH PROMOTIONS, INC. ANNUALLY REQUIRES ITS BOARD MEMBERS, EXECUTIVE LEADERSHIP (INCLUDING OFFICERS AND KEY EMPLOYEES) AND CERTAIN INDEPENDENT CONTRACTORS TO REVIEW THE ORGANIZATION'S CONFLICT OF INTEREST POLICY. CONFLICTS EDUCATION IS PROVIDED ANNUALLY TO BOARD MEMBERS AND OTHER PERSONS WHO ATTEND THE BOARD MEETING WHERE SUCH EDUCATION IS PROVIDED. BOARD MEMBERS, EXECUTIVE LEADERS AND KEY INDEPENDENT CONTRACTORS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST ON AN ANNUAL BASIS BY COMPLETING A WRITTEN QUESTIONNAIRE. OAKWOOD HEALTHCARE, INC.'S DIRECTOR OF BOARD RELATIONS IS RESPONSIBLE FOR ENSURING COMPLIANCE WITH THE DISCLOSURE PROCESS AND ANY POTENTIAL CONFLICT IS CLEARED BY THE DIRECTOR OF BOARD RELATIONS PURSUANT TO THE CONFLICT OF INTEREST POLICY. FAILURE TO COMPLY WITH THE REQUEST FOR DISCLOSURE COULD RESULT IN REMOVAL FROM THE BOARD. ANNUAL CONFLICT DISCLOSURE STATEMENTS, INCLUDING RESPONSES REQUIRED FOR FORM 990 DISCLOSURE PURPOSES, ARE REVIEWED BY THE OAKWOOD HEALTHCARE, INC. BUSINESS PRACTICES OFFICER (COMPLIANCE OFFICER), THE DIRECTOR OF BOARD RELATIONS, THE SR VP OF ORGANIZATIONAL EXCELLENCE, ACCREDITATION & COMPLIANCE, THE PRESIDENT & CEO, THE BOARD CHAIRPERSONS AND GENERAL COUNSEL. PERSONS REVIEWING THE DISCLOSURES ADDRESS ANY QUESTIONS TO THE RESPONDENT TO ENSURE COMPLETENESS OF RESPONSE. BOARD MEMBERS, EXECUTIVES, OTHER EMPLOYEES AND PARTIES INVOLVED IN TRANSACTIONS WITH THE REPORTING ORGANIZATION ARE REQUIRED TO DECLARE POTENTIAL CONFLICTS VIA THE WRITTEN RESPONSE. IF A POTENTIAL CONFLICT ARISES AFTER SUBMISSION OF THE WRITTEN RESPONSE, THE PARTY MUST AFFIRMATIVELY DISCLOSE SUCH POTENTIAL AS OUTLINED IN THE CONFLICTS STATEMENT. THIS POLICY IS OUTLINED IN THE COVER LETTER THAT IS SENT WITH THE REQUEST FOR WRITTEN RESPONSE TO THE CONFLICT OF INTEREST POLICY. THE RECIPIENT IS DIRECTED TO REPORT A CONFLICT THAT ARISES AT ANY TIME IMMEDIATELY TO THE PRESIDENT AND CEO OR DIRECTOR OF BOARD RELATIONS. IN THE EVENT A POTENTIAL CONFLICT IS RAISED IN THE WRITTEN RESPONSE AND THE INDIVIDUAL HAS NOT PREVIOUSLY RAISED THE POTENTIAL CONFLICT WITH APPROPRIATE PERSONS, THE POTENTIAL CONFLICT WILL BE RAISED EITHER BY THE BOARD CHAIR, GENERAL COUNSEL, THE DIRECTOR OF BOARD RELATIONS OR ANY OTHER MEMBER OR MEETING PARTICIPANT. IN THE EVENT IT IS DETERMINED THAT A CONFLICT IN FACT EXISTS, THE CONFLICTED PARTY IS RESTRICTED TO COMMUNICATING FACTUAL INFORMATION REGARDING THE TRANSACTION OR DECISION AND IS NOT PERMITTED TO PARTICIPATE IN BOARD DELIBERATIONS OR VOTING ON THAT MATTER. POTENTIAL AND ACTUAL CONFLICTS THAT ARE REPORTED AS PART OF THE ANNUAL WRITTEN STATEMENT OR OTHERWISE BROUGHT TO THE BOARD'S ATTENTION ARE RECORDED IN THE BOARD MINUTES, ALONG WITH THE BOARD'S ACTION TAKEN IN RESPONSE TO THE CONFLICT. FORM 990, PART VI, SECTION B, LINE 15 OAKWOOD HEALTHCARE, INC., AS THE EMPLOYER, DETERMINES OR APPROVES THE COMPENSATION OF ALL OFFICERS, TRUSTEES, KEY EMPLOYEES AND HIGHEST PAID EMPLOYEES. ON AN ANNUAL BASIS, AN INDEPENDENT CONSULTANT IS ENGAGED BY THE EXECUTIVE COMMITTEE OF THE BOARD AND EVALUATES THE COMPENSATION PACKAGES OF THE PRESIDENT, CEO AND OTHER SENIOR EXECUTIVES. THE CONSULTANT REVIEWS THE COMPETITIVENESS OF THESE EXECUTIVES' COMPENSATION RELATIVE TO MARKET COMPENSATION LEVELS AND ENSURES THAT SHORT- AND LONG-TERM INCENTIVE PLAN PAYMENTS ARE COMMENSURATE WITH ACTUAL BUSINESS PERFORMANCE. IN ITS ANNUAL REVIEWS, THE CONSULTANT UTILIZES MULTIPLE PUBLISHED COMPENSATION SURVEYS TO COMPARE THE BASE SALARY LEVELS AND SHORT- AND LONG-TERM INCENTIVE AWARD OPPORTUNITIES OF THE PRESIDENT AND CEO AND OTHER SENIOR EXECUTIVES RELATIVE TO COMPARABLE EXECUTIVE POSITIONS AT OTHER HEALTHCARE ORGANIZATIONS ACROSS THE COUNTRY WITH APPROXIMATELY $1.0B IN ANNUAL NET REVENUE. THE ANNUAL REVIEW MEETS THE REQUIREMENTS FOR OBTAINING AN INDEPENDENT COMPENSATION STUDY FOR PURPOSES OF THE REBUTTABLE PRESUMPTION OF REASONABLENESS FOR EXECUTIVE COMPENSATION. IN GATHERING RELEVANT MARKET COMPENSATION DATA FOR ITS EVALUATION, THE CONSULTANT FOLLOWS ITS STANDARD AND GENERALLY ACCEPTED METHODOLOGY FOR STUDIES OF EXECUTIVE COMPENSATION IN TAX-EXEMPT ORGANIZATIONS, INCLUDING THE FOLLOWING STEPS: A) RESEARCHING THE FACTS AND CIRCUMSTANCES SPECIFIC TO OAKWOOD HEALTHCARE, INC. AND SUBSIDIARIES (I.E., ORGANIZATIONAL STRUCTURE, BUSINESS GOALS, FINANCIAL PERFORMANCE, AND OTHER RELEVANT FACTORS ABOUT THE ORGANIZATION); B) UNDERSTANDING THE DUTIES AND SCOPE OF RESPONSIBILITIES OF THE EXECUTIVE POSITIONS IN ORDER TO MATCH THE POSITIONS TO SIMILAR POSITIONS USING RELEVANT SURVEY SOURCES; AND C) ANALYZING MARKET DATA TO DERIVE AN ASSESSMENT OF THE COMPETITIVE RANGE OF MARKET PRACTICE FOR TOTAL COMPENSATION FOR EACH EXECUTIVE POSITION. FOLLOWING THE COMPLETION OF ITS ANNUAL COMPENSATION EVALUATIONS, THE CONSULTANT CONSULTS WITH THE PRESIDENT AND CEO REGARDING THE COMPENSATION OF OTHER SENIOR EXECUTIVES. SIMILARLY, THE CONSULTANT CONSULTS DIRECTLY WITH OAKWOOD HEALTHCARE, INC.'S EXECUTIVE COMMITTEE OF THE BOARD TO DEVELOP RECOMMENDATIONS REGARDING THE COMPENSATION OF THE PRESIDENT AND CEO, ABSENT THE PRESENCE OF THE PRESIDENT AND CEO FOR THESE DISCUSSIONS. IN SUMMARY, OAKWOOD HEALTHCARE, INC. AND THE CONSULTANT FOLLOW THESE GUIDELINES IN REVIEWING AND FINALIZING THE PAY OF SENIOR EXECUTIVES: A) THE COMPENSATION ARRANGEMENTS ARE APPROVED BY THE INDEPENDENT MEMBERS OF THE BOARD EXECUTIVE COMMITTEE; B) THE EXECUTIVE COMMITTEE OBTAINS AND RELIES UPON APPROPRIATE DATA AS TO COMPARABILITY (I.E., COMPENSATION PAID BY SIMILARLY-SITUATED ORGANIZATIONS FOR POSITIONS WITH SIMILAR SCOPES OF RESPONSIBILITY); AND C) THE COMMITTEE DOCUMENTS THE BASIS FOR ITS DETERMINATIONS (I.E., THE RECORDS INCLUDE THE ELEMENTS OF COMPENSATION CONSIDERED, THE DECISIONS MADE, AND THE RATIONALE FOR THE DECISIONS). FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION WILL PROVIDE ANY DOCUMENTS THAT ARE REQUIRED TO BE OPEN FOR PUBLIC INSPECTION TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G CONTRACT LABOR: PROGRAM SERVICE EXPENSES 361,959. MANAGEMENT AND GENERAL EXPENSES 122,767. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 484,726. CONTRACT LABOR - RN: PROGRAM SERVICE EXPENSES 49,347. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 49,347. CONTRACT LABOR - LPN: PROGRAM SERVICE EXPENSES 120,980. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 120,980. PHYSICIAN FEES: PROGRAM SERVICE EXPENSES 21,000. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 21,000. OTHER PURCHASED SERVICES: PROGRAM SERVICE EXPENSES 3,652,800. MANAGEMENT AND GENERAL EXPENSES 556,824. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,209,624. CONTRACT MANAGEMENT FEES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 233,735. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 233,735. LANGUAGE SERVICES: PROGRAM SERVICE EXPENSES 0. MANAGEMENT AND GENERAL EXPENSES 48. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 48. BEAUMONT HEALTH 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 465718220 PARENT COMPANY OF THE HEALTH SYTEM MI 501(C)(3) 11C, III-FI N/A 0 BEAUMONT MEDICAL TRANSPORTATION SERVICE 950 W MAPLE SUITE C TROY MI 48084 260203703 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 9 WILLIAM BEAUMONT HOSPITAL 1 BOTSFORD CONTINUING CARE CORPORATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 382549505 LONG TERM NURSING CARE MI 501(C)(3) 9 BOTSFORD GENERAL HOSPITAL 1 BOTSFORD GENERAL HOSPITAL 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 381426919 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 COMMUNITY EMERGENCY MEDICAL SERVICE INC 25400 W EIGHT MILE ROAD SOUTHFIELD MI 48033 382410823 EMERGENCY MEDICAL SERVICES MI 501(C)(3) 9 BOTSFORD GENERAL HOSPITAL 1 HEALTHLINK MEDICAL TRANSPORTATION SERVICES INC 26150 NORTHLINE ROAD TAYLOR MI 48180 383338298 MEDICAL TRANSPORTATION SERVICES MI 501(C)(3) 9 COMMUNITY EMERGENCY MEDICAL SERVICE INC 1 MICHIGAN MOBILE PET IMAGING 15500 LUNDY PARKWAY DEARBORN MI 48126 331086165 MOBILE PET SCANNING MI 501(C)(3) 11A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTHCARE INC 15500 LUNDY PARKWAY DEARBORN MI 48126 381405141 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 OAKWOOD UNITED HOSPITALS INC 15500 LUNDY PARKWAY DEARBORN MI 48126 382837961 FACILITY LEASING MI 501(C)(3) 11A, I OAKWOOD HEALTHCARE INC 1 OAKWOOD HOME CARE SERVICES 1633 FAIRLANE CIRCLE NO 100 ALLEN PARK MI 48101 382877338 HOME HEALTH SERVICES MI 501(C)(3) 9 OAKWOOD HEALTHCARE INC 1 OAKWOOD HEALTHCARE FOUNDATION 15500 LUNDY PARKWAY DEARBORN MI 48126 383432073 FOUNDATION MI 501(C)(3) 11A, I OAKWOOD HEALTHCARE INC 1 WILLIAM BEAUMONT HOSPITAL 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 381459362 HOSPITAL MI 501(C)(3) 3 BEAUMONT HEALTH 1 ZIEGER HEALTH CARE CORPORATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 382500428 CENTRALIZED GOVERNANCE AND MANAGEMENT MI 501(C)(3) 9 N/A 0 BEAUMONT KIDNEY SPECIALTY SERVICES LLC 26400 WEST TWELVE MILE ROAD SOUTHFIELD MI 48034 262200439 DIALYSIS SERVICES MI WILLIAM BEAUMONT HOSPITAL RELATED 150402 -865595 0 0 0.55900 BOTSFORD CARE PARTNERS LLC 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 454854213 HEALTHCARE SERVICES MI BOTSFORD GENERAL HOSPITAL RELATED -6964 16734 1 0 0.50000 DEARBORN SCHAEFFER OFFICE COMPANY LLC ONE TOWNE SQUARE SUITE 1600 SOUTHFIELD MI 48076 262448025 REAL ESTATE MI OAKWOOD HEALTHCARE INC RELATED 745789 38452952 0 -229920 0 0.99000 OAKMED LLC 1938 WOODSLEE DRIVE TROY MI 48083 461459737 PRIVATE DUTY NURSING MI OAKWOOD HEALTHCARE INC RELATED 72162 425926 0 0 0.60000 BEAUMONT INDEMNITY COMPANY LTD 23 LIME TREE BAY AVENUE GRAND CAYMAN GRAND CAYMAN CJ 980512415 PREMIUM DEPOSITS CJ WILLIAM BEAUMONT HOSPITAL C 59512532 1.00000 1 BEAUMONT NURSING HOME SERVICES INC 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 382799842 ASSISTED CARE LIVING MI WILLIAM BEAUMONT HOSPITAL C 5185242 7090558 1.00000 1 BEAUMONT PHYSICIANS INSURANCE COMPANY INC 16500 WEST TWELVE MILE ROAD SOUTHFIELD MI 48076 274261262 PROFESSIONAL INSURANCE MI WILLIAM BEAUMONT HOSPITAL C 52236 3380921 1.00000 1 BOTSFORD COMMONS PROPERTY ASSOCIATION 28050 GRAND RIVER AVENUE FARMINGTON HILLS MI 48336 383203663 PROPERTY MANAGEMENT MI BOTSFORD CONTINUING CARE CORPORATION C 81428 1.00000 1 CAPITAL RISK SOLUTIONS PO BOX 1109GT STRATHVALE HOUSE GEORGETOWN GRAND CAYMAN CJ 381426919 CAPTIVE INSURANCE (CELL) CJ BOTSFORD GENERAL HOSPITAL C 144138 5816495 1.00000 1 OAKWOOD AFFILIATED VENTURES INC AND SUBSIDIARIES 15500 LUNDY PARKWAY DEARBORN MI 48126 371753159 OFFICE OF PHYSICIANS/NON-RESIDENTIAL RENTAL MI OAKWOOD HEALTHCARE INC C -4090639 37613630 1.00000 1 OAKWOOD ASSURANCE COMPANY LTD BARCLAYS HOUSE 3RD FLOOR SHEDDEN GEORGETOWN GRAND CAYMAN CJ 980128325 REINSURANCE CJ OAKWOOD HEALTHCARE INC C 48695841 1.00000 1 PARASTAR EMERGENCY SYSTEMS INC 25250 W EIGHT MILE ROAD SOUTHFIELD MI 48034 382755982 MANAGEMENT AND DISPATCH SERVICES MI COMMUNITY EMERGENCY MEDICAL SERVICE INC C -2032627 4791931 1.00000 1 0 0 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 OAKWOOD HEALTHCARE INC P 7118828 FMV OAKWOOD HEALTHCARE INC J 155764 FMV OAKWOOD HEALTHCARE FOUNDATION C 91456 FMV