2015-10-30T14:44:26-05:00 2014-12-31 381357951 PLANTE & MORAN PLLC 10 S RIVERSIDE PLAZA 9TH FLOOR CHICAGO IL 60606 990 2014-01-01 382418383 BRONSON HEALTHCARE GROUP BRON 2693416000 601 JOHN STREET KALAMAZOO MI 49007 REBECCA EAST SENIOR VP/CFO 2693416000 2015-10-27 1 DAVID LOWENTHAL P00378651 3122071040 2015-10-27 2014 2016-04-25 22:37:26Z FRANK SARDONE 601 JOHN STREET KALAMAZOO MI 49007 206328227 0 X BRONSONHEALTH.ORG X 1982 MI PROVIDE SUPPORT SERVICES FOR HEALTHCARE SUBSIDIARIES 21 16 717 8 7283683 1176978 26700000 28700000 141013354 165212938 2465454 10763810 2842329 1651479 173021137 206328227 682434 40389670 0 0 128779475 125936405 0 0 0 29396924 46211936 158858833 212538011 14162304 -6209784 346609443 374368946 188817605 299004036 157791838 75364910 TOGETHER, WE PROVIDE EXCELLENT HEALTHCARE. 0 0 144102478 158946291 BRONSON HEALTHCARE GROUP (BHG) PROVIDES SUPPORT SERVICES TO ITS SUBSIDIARIES. THE SUBSIDIARIES ARE ACTIVELY INVOLVED IN THE DELIVERY OF HEALTHCARE SERVICES AND PROVIDE SUBSTANTIAL BENEFITS TO THE COMMUNITIES THEY SERVE. 40389670 40389670 BRONSON HEALTHCARE GROUP (BHG) DONATES MONEY TO NOT FOR PROFIT COMPANIES IN THE COMMUNITY THAT PROMOTE HEALTH IN THE COMMUNITY. 184492148 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 167 0 1 717 1 1 1 0 0 0 0 0 0 0 0 0 X 21 16 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 1 1 MI X REBECCA EAST 2693416000 301 JOHN STREET KALAMAZOO MI 49007 RANDALL EBERTS VICE CHAIRPERSON 1.00 8.00 X X 1221 0 0 BARBARA JAMES CHAIRPERSON 1.00 8.00 X X 1221 0 0 GEOFFREY WARDWELL SECRETARY 1.00 8.00 X X 0 0 0 EILEEN WILSON-OYELARAN DIRECTOR 1.00 8.00 X 0 0 0 JAMES GUNDERSON DIRECTOR 1.00 8.00 X 1221 0 0 JAMES E GREENE DIRECTOR 1.00 8.00 X 1221 0 0 DONALD PARFET VICE CHAIRPERSON 1.00 8.00 X X 0 0 0 CHARLES ZELLER MD DIRECTOR 1.00 8.00 X 1221 0 0 SCOTT GIBSON MD DIRECTOR 1.00 8.00 X 1221 96172 0 MARK B ATKINSON MD IMMED. PAST CHIEF OF STAFF 1.00 8.00 X 900 0 0 WILLIAM RICHARDSON DIRECTOR 1.00 8.00 X 0 0 0 WILLIAM JOHNSTON DIRECTOR 1.00 8.00 X 0 0 0 FRANK J SARDONE PRESIDENT AND CEO 4.60 35.40 X X 1486096 0 366811 BERNARD ROEHR MD PAST CHIEF OF STAFF 1.00 8.00 X 0 622431 33640 BRENDA HUNT DIRECTOR 1.00 8.00 X 0 0 0 MAHESH C KARAMCHANDANI DIRECTOR 1.00 8.00 X 0 671799 26759 NELSON KARRE VICE CHAIRPERSON 1.00 8.00 X 0 0 0 STEVEN J LINS MD DIRECTOR 1.00 8.00 X 0 0 0 NEIL NYBERG DIRECTOR 1.00 8.00 X 0 0 0 LA JUNE MONTGOMERY TABRON TREASURER 1.00 8.00 X X 0 0 0 AARON LANE-DAVIES CHIEF OF STAFF 4.60 35.40 X 0 281780 36171 KENNETH L TAFT EXECUTIVE VICE PRESIDENT 4.60 35.40 X 1023154 0 217626 JAMES FALAHEE SR VP LEGAL & LEG. AFFAIRS 4.60 35.40 X 749594 0 143320 SCOTT LARSON MD SR VP MEDICAL AFFAIRS/CMO 4.60 35.40 X 673505 0 138374 JOHN HAYDEN SR. VP & CHIEF HR OFFICER 4.60 35.40 X 464380 0 116002 MARY M MEITZ SR. VICE PRESIDENT & CFO 4.60 35.40 X 395101 0 19597 KATHLEEN M HARRELSON SR VP, CLINICAL OPERATIONS 4.60 35.40 X 423112 0 109921 JOHN L JONES JR SR VP COO BMG 4.60 35.40 X 387421 0 112716 MICHAEL S WAY SR. VP MAT. MGT. & FACILIT 4.60 35.40 X 267528 0 82992 AMY L BARNES VP OPERATIONS BRONSON AT HOME 1.00 40.00 X 183044 72325 74174 REBECCA EAST SR VP CFO 4.60 35.40 X 199454 0 36830 WILLIAM J MAYER VP CMIO & COMM HEALTH BHG 4.60 35.40 X 365194 0 83669 MARIJO SNYDER VP SYSTEM QUALITY & MED ST 1.00 40.00 X 325060 0 82974 DENISE J NEELY VP PAT CARE SVS CNO BMH/BHG 4.60 35.40 X 300965 0 80903 JAMES E MCKERNAN SR VICE PRESIDENT COO BBC 1.00 40.00 X 303593 0 89972 PAUL S PEABODY VP CIO 4.60 35.40 X 326749 0 90611 7882176 1744507 1943062 49 0 1 0 MILLER JOHNSON SNELL AND CUMMISKEY PLC ROSE STREET MARKET BUILDING 303 NOR KALAMAZOO MI 49007 LEGAL 2206513 CLIENT FINANCIAL SERVICES OF MICHIGAN 209 SOUTH ALLOY DR PO BOX 350 FENTON MI 48430 FINANCIAL 1132274 LYNN J LUKINS & SALLY LUKINS & BUCKFIRE 25800 NORTHWESTERN HWY STE SOUTHFIELD MI 48075 LEGAL 900000 THE CAMDEN GROUP 100 N SEPULVEDA BLVD SUITE 600 EL SEGUNDO CA 90245 LEGAL 629163 SMITH HAUGHEY RICE & ROEGGE 100 MONROE CENTE NW GRAND RAPIDS MI 49503 LEGAL 623618 88 28700000 28700000 MANAGEMENT SRVCS REVENUE 561000 165212938 158946291 6266647 165212938 10763810 10763810 OTHER REVENUE 900099 1651479 1017036 634443 1651479 206328227 158946291 7283683 11398253 40389670 40389670 7682720 7682720 33311531 29370777 3940754 1805780 1592156 213624 80490255 70968258 9521997 2646119 2333083 313036 936275 936275 528320 528320 8068813 7114272 954541 4055413 3575658 479755 3091525 2725798 365727 7057234 6222363 834871 1013210 893347 119863 316284 278868 37416 235039 207234 27805 3789467 3341173 448294 5251065 4629864 621201 BAD DEBT 3000000 3000000 DUES/SUBSCRIPTION EXPEN 970271 855488 114783 SPECIAL EVENTS/PROJECTS 936939 843151 93788 RECRUITMENT EXPENSES 687971 619105 68866 6274110 5531883 742227 212538011 184492148 28045863 0 21304380 27344443 8220585 2308565 4319547 3274981 120799353 92004727 7785517 28794626 53364704 56194132 250472437 255881429 1142273 570770 346609443 374368946 36149803 56255751 5189216 5088397 101138 203546 147377448 237456342 188817605 299004036 X 157791838 75364910 157791838 75364910 346609443 374368946 X -6209784 -626724 -75590420 X X 0 1 X 1 0 X X 8 BRONSON METHODIST HOSPITAL 381359087 3 1 0 0 BRONSON LAKEVIEW HOSPITAL 381359218 3 1 0 0 BRONSON NURSING & REHAB CENTER 382842451 9 1 0 318862 BRONSON HEALTH FOUNDATION 382415081 7 1 0 218114 VBEMS 382745910 9 1 0 0 BRONSON BATTLE CREEK HOSPITAL 382776791 3 1 0 0 BRONSON AT HOME 383298476 9 1 0 0 BRONSON HEALTHCARE MIDWEST 462134675 3 0 0 26000000 8 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 X 1 1 SCHEDULE A SECTION A LINE 1 ALL SUPPORTED ORGANIZATIONS EXCEPT FOR BRONSON AT HOME ARE LISTED IN THE GOVERNING DOCUMENTS. ANY SUPPORTED ORGANIZATION NOT LISTED IS SUPPORTED BECAUSE OF THEIR CONTINUING RELATIONSHIP WITH BHG. SCHEDULE A SECTION E LINE 3A BRONSON HEALTHCARE GROUP IS THE SOLE MEMBER OF THE SUPPORTED ORGANIZATIONS AND HAS RESERVED POWERS OVER THE ACTIONS OF THE SUPPORTED ORGANIZATIONS THAT INCLUDE ELECTING A MAJORITY OF THE SUPPORTED ORGANIZATION'S BOARD MEMBER'S. SCHEDULE A SECTION E LINE 3B BRONSON HEALTHCARE GROUP IS THE SOLE MEMBER OF THE SUPPORTED ORGANIZATIONS AND HAS RESERVED POWERS OVER THE ACTIONS OF THE SUPPORTED ORGANIZATIONS THAT INCLUDE: - ADOPTION OF ALL OPERATING AND CAPITAL BUDGETS. -INCUR OPERATING OR CAPITAL EXPENDITURES WHICH CAUSE AGGREGATE OPERATING OR CAPITAL EXPENDITURES TO EXCEED BUDGETED AGGREGATES AND/OR THE DOLLAR AMOUNT SPECIFIED BY BHG. -SECURE BORROWINGS, WITH THE EXCEPTION OF EQUIPMENT LEASES AND PURCHASE MONEY SECURITY INTERESTS APPROVED AS A PART OF A BUDGET. -CHANGE THE MISSION STATEMENT, PURPOSES, OR STRATEGIC GOALS OF THE HOSPITAL. -ANY SIGNIFICANT CHANGE IN THE SCOPE OF SERVICES OR PROGRAMS. -APPOINTMENT, REMOVAL OR COMPENSATION OF THE PRESIDENT OR ANY DIRECTOR OR OFFICER. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 1 0 0 1 16618 0 0 16618 0 PART II-B, LINE 1: EXPENSES INCURRED RELATED TO DIRECT CONTACT WITH LEGISLATURES, SEMINARS, CONVENTIONS, SPEECHES, LECTURES OR ANY OTHER MEANS. 204194 204194 12685836 6033072 6652764 99761439 85971655 13789784 8147884 8147884 28794626 BRONSON PROPERTIES CORPORATION 34142800 F HOSPITAL NETWORK INCORPORATED 7533641 F BRONSON MANAGEMENT SERVICES CORPORATION 103112245 F BARS 2688685 F BRONSON BATTLE CREEK HOSPITAL 68657482 F BRONSON AT HOME 16293819 F SURGERY CENTER OF KALAMAZOO 1286152 F KALAMAZOO ENDOSCOPY CENTER 445000 F WEST MICHIGAN AIR CARE 589020 F BRONSON HEALTHCARE MIDWEST 21132585 F 255881429 POST RETIREMENT BENEFITS 59056811 MINIMUM PENSION LIABILITY 84134531 TAXABLE BONDS 94265000 237456342 X PART X, LINE 2: THE GROUP ADOPTED ACCOUNTING STANDARDS RELATED TO UNCERTAIN TAX POSITIONS AND, ACCORDINGLY, REVIEWED ALL TAX POSITIONS. THE EVALUATED POTENTIAL EXPOSURE RELATED TO UNCERTAIN TAX POSITIONS WAS FOUND TO BE IMMATERIAL. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES BRONSON HEALTHCARE GROUP PAYS INSURANCE PREMIUMS TO A FOREIGN INSURANCE COMPANY 992275 0 0 0 0 0 0 992275 0 992275 0 0 0 0 0 0 1 GILMORE FESTIVAL 359 S KALAMAZOO MALL SUITE 101 KALAMAZOO MI 49007 382868071 501(C)(3) 25000 GILMORE FESTIVAL BRONSON HEALTH FOUNDATION 301 JOHN STREET KALAMAZOO MI 49007 382415081 501(C)(3) 218111 GENERAL SUPPORT MINISTRY WITH COMMUNITY 440 N CHURCH STREET KALAMAZOO MI 49007 382596981 501(C)(3) 11000 PLEDGED PAYMENT KALAMAZOO SYMPHONY ORCHESTRA 359 S KALAMAZOO MALL SUITE 100 KALAMAZOO MI 49007 386005710 501(C)(3) 5000 KSO SPONSORSHIP LAKEVIEW FOUNDATION PO BOX 508 PAW PAW MI 49079 382648600 501(C)(3) 28195 PLEDGED PAYMENT SOUTHWEST MICHIGAN FIRST PO BOX 50827 KALAMAZOO MI 49007 382853785 501(C)(3) 75000 PLEDGED PAYMENT UNITED WAY OF KALAMAZOO 709 SOUTH WESTNEDGE AVE KALAMAZOO MI 49007 381359193 501(C)(3) 285000 SPONSORSHIP WESTERN MICHIGAN UNIVERSITY 1903 W MICHIGAN AVE KALAMAZOO MI 49008 386007327 501(C)(3) 21000 PLEDGED CONTRIBUTION KALAMAZOO NEIGHBORHOOD HOUSING 802 S WESTNEDGE KALAMAZOO MI 49008 382391442 501(C)(3) 60000 HOUSING PROGRAM BRONSON HEALTHCARE MIDWEST 301 JOHN STREET KALAMAZOO MI 49007 462134675 501(C)(3) 26000000 HEALTHCARE SERVICES BRONSON METHODIST HOSPITAL 601 JOHN STREET KALAMAZOO MI 49079 381359087 501(C)(3) 13623000 HOSPITAL SERVICES 11 PART I, LINE 2: THERE IS NO FORMAL PROCEDURE. GENERALLY GRANTS ARE UNRESTRICTED. X 1 1 X X X X 0 1 0 0 0 0 0 0 0 FRANK J SARDONE PRESIDENT AND CEO 747633 0 279121 0 459342 0 351004 0 15807 0 1852907 0 240993 0 BERNARD ROEHR MD PAST CHIEF OF STAFF 0 595391 0 24738 0 2302 0 13000 0 20640 0 656071 0 0 MAHESH C KARAMCHANDANI DIRECTOR 0 655084 0 11963 0 4752 0 13000 0 13759 0 698558 0 0 AARON LANE-DAVIES CHIEF OF STAFF 0 193235 0 67294 0 21251 0 16546 0 19625 0 317951 0 0 KENNETH L TAFT EXECUTIVE VICE PRESIDENT 488266 0 133815 0 401073 0 197114 0 20512 0 1240780 0 299760 0 JAMES FALAHEE SR VP LEGAL & LEG. AFFAIRS 363062 0 91891 0 294641 0 123026 0 20294 0 892914 0 234808 0 SCOTT LARSON MD SR VP MEDICAL AFFAIRS/CMO 414500 0 103749 0 155256 0 123071 0 15303 0 811879 0 82763 0 JOHN HAYDEN SR. VP & CHIEF HR OFFICER 296873 0 78669 0 88838 0 105984 0 10018 0 580382 0 35106 0 MARY M MEITZ SR. VICE PRESIDENT & CFO 167463 0 54709 0 172929 0 5359 0 14238 0 414698 0 0 0 KATHLEEN M HARRELSON SR VP, CLINICAL OPERATIONS 338851 0 66011 0 18250 0 96526 0 13395 0 533033 0 0 0 JOHN L JONES JR SR VP COO BMG 305732 0 62150 0 19539 0 92450 0 20266 0 500137 0 0 0 MICHAEL S WAY SR. VP MAT. MGT. & FACILIT 205252 0 43312 0 18964 0 69919 0 13073 0 350520 0 0 0 AMY L BARNES VP OPERATIONS BRONSON AT HOME 154901 72292 28001 0 142 33 54193 0 16097 3884 253334 76209 0 0 REBECCA EAST SR VP CFO 155333 0 12257 0 31864 0 23924 0 12906 0 236284 0 0 0 WILLIAM J MAYER VP CMIO & COMM HEALTH BHG 300976 0 45762 0 18456 0 63499 0 20170 0 448863 0 0 0 MARIJO SNYDER VP SYSTEM QUALITY & MED ST 281042 0 42758 0 1260 0 69626 0 13348 0 408034 0 0 0 DENISE J NEELY VP PAT CARE SVS CNO BMH/BHG 250302 0 41294 0 9369 0 66066 0 14837 0 381868 0 0 0 JAMES E MCKERNAN SR VICE PRESIDENT COO BBC 267434 0 18854 0 17305 0 69840 0 20132 0 393565 0 0 0 PAUL S PEABODY VP CIO 294996 0 12128 0 19625 0 75920 0 14691 0 417360 0 0 0 PART I, LINE 1A HEALTH CLUB DUES ARE AVAILABLE FOR BOARD OF DIRECTORS (ATKINSON, EBERTS, GIBSON, GREENE, GUNDERSON, JAMES, KARAMCHANDANI, LINS, MONTGOMERY TABRON, NYBERG, RICHARDSON, ROEHR, WARDWELL AND ZELLER). ALL TREATED AS TAXABLE FRINGE BENEFITS 1099S SENT. PART I, LINE 4B TAFT,KENNETH L $299,760 SERP DISTRIBUTION TAFT,KENNETH L $77,089 SERP CONTRIBUTION FALAHEE JR.,JAMES B $234,808 SERP DISTRIBUTION FALAHEE JR.,JAMES B $57,717 SERP CONTRIBUTION SARDONE,FRANK J $240,993 SERP DISTRIBUTION SARDONE,FRANK J $182,943 SERP CONTRIBUTION LARSON,SCOTT D $82,763 SERP DISTRIBUTION LARSON,SCOTT D $67,449 SERP CONTRIBUTION HAYDEN,JOHN T $34,028 SERP CONTRIBUTION HAYDEN,JOHN T $35,106 SERP DISTRIBUTION INCLUDED IN PART II, COLUMN (B) (III) AND (F) ARE AMOUNTS THAT WERE PAID TO THE EXECUTIVE UNDER THE BRONSON HEALTHCARE GROUP, INC. SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP). THESE AMOUNTS WERE CREDITED TO AN ACCOUNT FOR THE EXECUTIVE IN PRIOR YEARS AND WERE PREVIOUSLY REPORTED IN COLUMN C IN THE PRIOR YEAR, BUT THE EXECUTIVE WAS REQUIRED TO REMAIN EMPLOYED UNTIL THE YEAR FOR WHICH THIS FORM IS BEING FILED IN ORDER TO BECOME VESTED IN HIS OR HER ACCOUNT. AMOUNTS HAVE BEEN CREDITED TO THESE EXECUTIVES' ACCOUNTS EACH YEAR SINCE THE SERP WAS ADOPTED IN 1994, AND THE ACCOUNTS HAVE ALSO BEEN ADJUSTED FOR GAINS AND LOSSES SINCE THAT TIME. THEREFORE, THESE AMOUNTS SHOULD BE VIEWED AS HAVING BEEN EARNED OVER THE EXECUTIVE'S ENTIRE PERIOD OF EMPLOYMENT AS AN EXECUTIVE OF BRONSON. THE AMOUNT CREDITED TO EACH EXECUTIVE'S ACCOUNT IN THE SERP EACH YEAR AND EACH EXECUTIVE'S TOTAL COMPENSATION PACKAGE WAS APPROVED BY AN INDEPENDENT CONSULTANT TO ENSURE THAT THESE AMOUNTS ARE COMPARABLE TO OR LESS THAN THE AMOUNTS AWARDED TO EXECUTIVES OF COMPARABLE HEALTH CARE ORGANIZATIONS. CLARIFICATION IN 2014 IN PART VII, SECTION A. OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, AND HIGHEST COMPENSATED EMPLOYEES, CHANGES CLARIFY THAT REPORTABLE COMPENSATION SHOULD NOT BE TREATED AS DEFERRED IF DEFERRED FROM THE CALENDAR YEAR ENDING WITH OR WITHIN THE TAX YEAR TO A DATE THAT IS NOT MORE THAN 2 & 1/2 MONTHS AFTER THE END OF THE CALENDAR YEAR ENDING WITH OR WITHIN THE TAX YEAR IF SUCH COMPENSATION IS CURRENTLY REPORTED AS REPORTABLE COMPENSATION. IN PRIOR YEARS WE HAVE NOT REPORTED INCENTIVE PAYMENTS PAID IN THE FOLLOWING YEAR MORE THAN 2 & 1/2 MONTHS AFTER THE END OF THE CALENDAR YEAR OF THE CURRENT 990. FOR THE 2014 990, WE REPORTED THE INCENTIVE PAYMENTS (RELATED TO 2014 INCENTIVES) PAID OUT IN MAY 2015 AS DEFERRED COMPENSATION ON THE 990. PART I, LINE 3: EXPLANATION: PART I, LINE 3: BRONSON HEALTHCARE GROUP USES A COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, COMPENSATION SURVEY AND/OR STUDY AND APPROVAL BY BOARD AND/OR COMPENSATION COMMITTEE TO ESTABLISH THE COMPENSATION OF THE ORGANIZATIONS CEO/EXECUTIVE DIRECTOR. A CITY OF KALAMAZOO HOSPITAL FINANCE AUTHORITY 386004627 483233NF5 2011-11-03 5433646 SEE SUPPLEMENTAL INFO - ACQUISITION 0 0 0 A 250437 5433646 104982 5328664 2011 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 A 0 PART I LINE E THE TOTAL ISSUE PRICE WAS $22,564,973. BRONSON HEALTH GROUP, INC. HAS BEEN ALLOCATED $5,433,646 OF SUCH AMOUNT. THIS IS FOR ACQUISITION OF CAPITAL ASSETS OF LIFESPAN, INC. BRONSON NURSING & REHABILITATION CENTER HAS BEEN ALLOCATED THE REMAINING $17,131,328 ON THEIR BOOKS FOR THE CONSTRUCTION, FURNISHING AND EQUIPPING OF A NEW 75,000 SQ. FOOT NURSING HOME. PART V WE HAVE GENERAL WRITTEN PROCEDURES THAT WE WILL COMPLY WITH ALL TAX LAWS. PART I LINE F ACQUISITION OF CAPITAL ASSETS OF LIFESPAN, INC. FORM 990, PART VI, SECTION A, LINE 2 KENNETH TAFT, FRANK SARDONE, STEVEN J. LINS, M.D. AND SCOTT C. GIBSON, M.D. HAVE A BUSINESS RELATIONSHIP. ALL BOARD MEMBERS HAVE A BUSINESS RELATIONSHIP WITH ALL BRONSON SUBSIDIARES DUE TO BEING ON THE BRONSON HEALTHCARE GROUP BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 11 THE SR VP/CFO & CONTROLLER REVIEWS THE 990S. THE SR VP/CFO MET WITH THE FINANCE COMMITTEE CHAIRPERSON AND THE PREVIOUS FINANCE COMMITTEE CHAIRPERSON ON OCTOBER 9, 2015 TO REVIEW THE PREPARED FORM 990 AND SCHEDULES. THE FINANCE COMMITTEE OF THE BOARD REVIEWED THE PREPARED FORM 990 AT ITS REGULARLY SCHEDULED MEETING ON OCTOBER 19, 2015. THE REVIEW WAS LED BY THE SR VP/CFO AND PLANTE MORAN. THE MEMBERS OF THE ORGANIZATION'S GOVERNING BODY WERE PROVIDED THE PREPARED FORM 990 FOR REVIEW. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION REGULARLY AND CONSISTENTLY MONITORS AND ENFORCES COMPLIANCE WITH THE CONFLICT OF INTEREST POLICY. THE CONFLICT OF INTEREST POLICY AND ITS ACCOMPANYING QUESTIONNAIRE ARE REVIEWED, AND REVISED, IF NECESSARY, ON AN ANNUAL BASIS BY THE ORGANIZATION'S GENERAL COUNSEL/CORPORATE COMPLIANCE OFFICER AND THE BOARDS EXECUTIVE COMMITTEE. ALL BOARD MEMBERS AND ALL EMPLOYEES HOLDING THE TITLE OF VICE PRESIDENT AND ABOVE ARE COVERED BY THE CONFLICT OF INTEREST POLICY AND ANNUALLY COMPLETE THE CONFLICT OF INTEREST QUESTIONNAIRE. ALL COMPLETED CONFLICT OF INTEREST QUESTIONNAIRES ARE REVIEWED BY THE ORGANIZATION'S GENERAL COUNSEL/CORPORATE COMPLIANCE OFFICER AND THE EXECUTIVE COMMITTEE. DETERMINATIONS AS TO WHETHER A CONFLICT EXISTS ARE MADE BY THE GENERAL COUNSEL/CORPORATE COMPLIANCE OFFICER AND THE EXECUTIVE COMMITTEE. ACTUAL CONFLICTS ARE REVIEWED BY THE GENERAL COUNSEL/CORPORATE COMPLIANCE OFFICER AND THE EXECUTIVE COMMITTEE. PERSONS WITH A CONFLICT ARE PROHIBITED FROM PARTICIPATING IN THE GOVERNING BODYS DELIBERATIONS AND DECISION ON THE TRANSACTION IN QUESTION. FORM 990, PART VI, SECTION B, LINE 15 FOR THE CEO, OFFICERS AND OTHER KEY EMPLOYEES, THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, WHICH FUNCTIONS AS THE COMPENSATION COMMITTEE FOR BRONSON HEALTHCARE GROUP, RETAINS THE SERVICES OF AN EXTERNAL EXECUTIVE COMPENSATION CONSULTANT (SULLIVAN, COTTER AND ASSOCIATES) WHO CONDUCTS A THOROUGH COMPENSATION AND BENEFIT SURVEY PROCESS THAT IS USED TO DETERMINE THE APPROPRIATE ADJUSTMENT IN CASH COMPENSATION AND BENEFITS PROVIDED. THIS PROCESS WAS UNDER TAKEN IN 2013. THE CONSULTANT USES THREE TO FIVE NATIONAL HEALTHCARE-BASED SURVEYS FOR COMPARABILITY DATA, EACH ONE OF LIKE REVENUE SIZED HEALTHCARE SYSTEMS TO THE BRONSON HEALTHCARE GROUP. THE CONSULTANT PREPARES A DETAILED REPORT WITH RECOMMENDATIONS FOR PAY AND/OR BENEFIT ADJUSTMENTS, AND PRESENTS THE INFORMATION TO THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS (WHEN THE CEOS SURVEY DATA AND RECOMMENDATIONS ARE PRESENTED, THE CEO AND STAFF ARE EXCUSED FROM THE DELIBERATIONS). AFTER ALL QUESTIONS OF THE BOARD MEMBERS ARE ANSWERED, FORMAL MOTIONS ARE PROPOSED, SECONDED AND VOTED ON (FOR ANY PAY ADJUSTMENTS AND FOR RECEIPT OF THE CONSULTANTS REPORT). AT THE SUBSEQUENT MEETING OF THE FULL BOARD OF DIRECTORS, THE CHAIR PRESENTS RECOMMENDATIONS OF THE EXECUTIVE COMMITTEE, AND THE FULL BOARD ACTS ON A FORMAL MOTION THAT IS SECONDED AND VOTED ON. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY AVAILABLE TO THE PUBLIC BY POSTING THEM ON THE ORGANIZATION'S WEBSITE AND PROVIDING COPIES ON REQUEST. THE ORGANIZATION'S FINANCIAL STATEMENTS, OTHER THAN THE FORM 990, ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART XI, LINE 9: MINIMUM PENSION LIABILITY ADJUSTMENT -67,288,350. RETIREE HEALTH ADJUSTMENT -12,338,196. GAIN ON JOINT VENTURES 4,036,126. PART XII, LINE 2C BRONSON HEALTHCARE GROUP HAS AN AUDIT COMMITTEE THAT ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT AND SELECTION OF AN INDEPENDENT ACCOUNTING FIRM. THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. BRONSON METHODIST HOSPITAL 601 JOHN STREET KALAMAZOO MI 49007 381359087 HOSPITAL MI 501(C)(3) LINE 3 BRONSON HEALTHCARE GROUP 1 BRONSON HEALTH FOUNDATION 601 JOHN STREET KALAMAZOO MI 49007 382415081 SUPPORTS HEALTH ORGANIZATION MI 501(C)(3) LINE 9 BRONSON HEALTHCARE GROUP 1 BRONSON COMMONS 601 JOHN STREET KALAMAZOO MI 49007 382842451 SKILLED NURSING FACILITY MI 501(C)(3) LINE 9 BRONSON HEALTHCARE GROUP 1 BRONSON BATTLE CREEK HOSPITAL 300 NORTH AVE BATTLE CREEK MI 49016 382776791 HOSPITAL MI 501(C)(3) LINE 3 BRONSON HEALTHCARE GROUP 1 VBEMS 601 JOHN STREET KALAMAZOO MI 49007 382745910 AMBULANCE SERVICES MI 501(C)(3) LINE 9 BRONSON HEALTHCARE GROUP 1 BRONSON AT HOME 166 GOODALE BATTLE CREEK MI 49037 383298476 NURSING, HOSPICE, EQUIPMENT SALES MI 501(C)(3) LINE 9 BRONSON HEALTHCARE GROUP 1 BRONSON PROPERTIES CORP 601 JOHN STREET KALAMAZOO MI 49007 386052573 PROVIDE SUPPORT FOR HEALTHCARE SUBSIDIARIES MI 501(C)(3) LINE 11B, II BRONSON HEALTHCARE GROUP 1 BRONSON LAKEVIEW HOSPITAL 601 JOHN STREET KALAMAZOO MI 49007 381359218 HOSPITAL MI 501(C)(3) LINE 3 BRONSON HEALTHCARE GROUP 1 BRONSON HEALTHCARE MIDWEST 601 JOHN STREET KALAMAZOO MI 49007 462134675 PHYSICIAN SERVICES MI 501(C)(3) LINE 3 BRONSON HEALTHCARE GROUP 1 HOSPITAL LEASING INC 6212 AMERICAN AVE PORTAGE MI 49002 383638430 SUPPORT SERVICES MI BRONSON HEALTHCARE GROUP RELATED 93671 1391298 0 0 0.55000 HOSPITAL NETWORK VENTUES LLC 6212 AMERICAN AVE PORTAGE MI 49002 263302979 SUPPORT SERVICES MI BRONSON HEALTHCARE GROUP RELATED 996740 7764560 0 0 0.55000 BRONSON MANAGEMENT SERVICES CORPORATION 601 JOHN STREET KALAMAZOO MI 49007 382415032 OTHER MEDICAL SERVICES MI BRONSON HEALTHCARE GROUP C -286992 101428517 1.00000 1 BRONSON PRACTICE MANAGEMENT 601 JOHN STREET KALAMAZOO MI 49007 382511179 OTHER MEDICAL SERVICES MI BRONSON HEALTHCARE GROUP C -2876718 27533369 1.00000 1 BRONSON LIFESTYLE IMPROVEMENT & RESEARCH CENTER 601 JOHN STREET KALAMAZOO MI 49007 383552556 REHABILITATION SERVICES MI BRONSON HEALTHCARE GROUP C 266440 15470010 1.00000 1 BRONSON STAFFING SERVICE 601 JOHN STREET KALAMAZOO MI 49007 383277697 HOME HEALTH CARE MI BRONSON HEALTHCARE GROUP C 55043 1.00000 1 WESTLEY DEVELOPMENT COMPANY 301 JOHN STREET KALAMAZOO MI 49007 383619232 REAL ESTATE OWNERSHIP MI BRONSON HEALTHCARE GROUP C 1.00000 1 0 1 1 1 0 0 0 0 1 0 0 1 1 0 1 0 0 0 0 BRONSON METHODIST HOSPITAL M 9620959 METHOD BASED ON ACTUAL COST BRONSON PRACTICE MANAGEMENT O 3815904 METHOD BASED ON ACTUAL COST BRONSON PROPERTIES CORPORATION M 997397 METHOD BASED ON ACTUAL COST BRONSON LAKEVIEW HOSPITAL M 144097 METHOD BASED ON ACTUAL COST BRONSON METHODIST HOSPITAL B 13623000 CASH TRANSFER BRONSON METHODIST HOSPITAL L 42363649 METHOD BASED ON ACTUAL COST BRONSON METHODIST HOSPITAL O 77287520 METHOD BASED ON ACTUAL COST BRONSON METHODIST HOSPITAL C 24700000 CASH TRANSFER BRONSON LAKEVIEW HOSPITAL C 4000000 CASH TRANSFER BRONSON PRACTICE MANAGEMENT L 2666668 METHOD BASED ON ACTUAL COST BRONSON PROPERTIES CORPORATION L 264546 METHOD BASED ON ACTUAL COST BRONSON STAFFING SERVICES L 243515 METHOD BASED ON ACTUAL COST BRONSON BATTLE CREEK HOSPITAL L 29191786 METHOD BASED ON ACTUAL COST BRONSON AT HOME L 1860587 METHOD BASED ON ACTUAL COST BRONSON AT HOME O 64181 METHOD BASED ON ACTUAL COST BRONSON LAKEVIEW HOSPITAL L 9142381 METHOD BASED ON ACTUAL COST BRONSON HEALTH FOUNDATION O 245721 METHOD BASED ON ACTUAL COST VBEMS L 368140 METHOD BASED ON ACTUAL COST BRONSON COMMONS L 2631290 METHOD BASED ON ACTUAL COST BRONSON COMMONS O 349397 METHOD BASED ON ACTUAL COST BRONSON HEALTH FOUNDATION L 223478 METHOD BASED ON ACTUAL COST BRONSON HEALTH FOUNDATION B 218111 CASH TRANSFER BRONSON HEALTHCARE MIDWEST M 212548 METHOD BASED ON ACTUAL COST BRONSON HEALTHCARE MIDWEST L 11418824 METHOD BASED ON ACTUAL COST BRONSON HEALTHCARE MIDWEST O 1797221 METHOD BASED ON ACTUAL COST BRONSON BATTLE CREEK HOSPITAL O 300335 METHOD BASED ON ACTUAL COST BRONSON LIFESTYLE IMPROVEMENT RESEARCH CENTER O 108398 METHOD BASED ON ACTUAL COST BRONSON LIFESTYLE IMPROVEMENT RESEARCH CENTER L 532806 METHOD BASED ON ACTUAL COST BRONSON METHODIST HOSPITAL I 13402104 METHOD BASED ON ACTUAL COST BRONSON PRACTICE MANAGEMENT M 1779502 METHOD BASED ON ACTUAL COST BRONSON HEALTHCARE MIDWEST B 26000000 CASH TRANSFER BRONSON COMMONS D 318862 CASH TRANSFER BRONSON BATTLE CREEK HOSPITAL M 1480461 METHOD BASED ON ACTUAL COST BRONSON PROPERTIES CORPORATION B 3000000 CASH TRANSFER