2014-11-11T21:26:36-06:00 2013-12-31 ERNST & YOUNG US LLP TWO NORTH CENTRAL AVENUE STE 2300 PHOENIX AZ 85004 990 2013-01-01 900532831 BANNER MEDICAL GROUP COLORADO % Lisa Davis - Banner Health BANN 6027474000 1801 16TH STREET Suite GREELEY CO 80631 JAMES BRANNON PRESIDENT/CEO 2014-11-11 BRENDA D GRIESEMER P00264669 2013 2015-11-30 17:44:51Z JAMES BRANNON 1441 N 12TH STREET PHOENIX AZ 85006 123298107 false X WWW.BANNERHEALTH.COM X 2009 CO ASSIST BANNER HEALTH COMPLETE ITS MISSION TO MAKE A DIFFERENCE IN PEOPLE'S LIVES THROUGH EXCELLENT PATIENT CARE BY PROVIDING INTEGRATED & COORDINATED CARE & POPULATION HEALTH MGMNT. 7 0 1071 0 0 0 7242 1269 50037287 123116130 0 0 56439 180708 50100968 123298107 0 0 0 0 42068236 101623043 0 0 0 19452810 47152614 61521046 148775657 -11420078 -25477550 6026201 8556665 5364136 11803058 662065 -3246393 X ASSIST BANNER HEALTH COMPLETE ITS MISSION TO MAKE A DIFFERENCE IN PEOPLE'S LIVES THROUGH EXCELLENT PATIENT CARE BY PROVIDING INTEGRATED & COORDINATED CARE & POPULATION HEALTH MANAGEMENT. false false 126570353 0 123116130 PROVIDING INTEGRATED AND COORDINATED CARE AND POPULATION HEALTH MANAGEMENT. 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387882 0 0 0 GUSTAV DECKER MD VP/CHIEF MEDICAL OFFICER 0 422366 0 31735 0 61331 0 10200 0 26625 0 552257 0 0 PAMELA NENABER COO (THRU 7/2013) 0 325845 0 142316 0 55135 0 10200 0 19316 0 552812 0 0 MINDY SMITH COO (AS OF 11/2013) 0 45574 0 0 0 130955 0 0 0 1484 0 178013 0 0 MARK ROSENBLATT MD PHYSICIAN 625190 0 103677 0 23735 0 10200 0 27557 0 790359 0 0 0 DAVID BLATT MD PHYSICIAN 730864 0 0 0 19083 0 6969 0 22547 0 779463 0 0 0 AHMED SHARIF MD PHYSICIAN 647021 0 74750 0 805 0 10200 0 38958 0 771734 0 0 0 YAZAN ABU QWAIDER MD PHYSICIAN 637396 0 81338 0 765 0 7650 0 33797 0 760946 0 0 0 VICKI CALLAHAN MD PHYSICIAN 380628 0 312777 0 21796 0 10200 0 14228 0 739629 0 0 0 Form 990, Schedule J, Part I, Line 3 THE FILING ORGANIZATION, BANNER MEDICAL GROUP COLORADO (BMGC), DOES NOT COMPENSATE OR PROVIDE BENEFITS TO BMGC'S CEO. ALL COMPENSATION AND BENEFITS OF BMGC'S CEO ARE DETERMINED BY BANNER HEALTH AND PAID BY BANNNER MEDICAL GROUP, RELATED TAX-EXEMPT ORGANIZATIONS. SEE SCHEDULE O FOR FORM 990, PART VI, LINES 15A AND 15B FOR THE PROCESS USED BY THE RELATED ORGANIZATION TO DETERMINE COMPENSATION. FORM 990, SCHEDULE J, PART I, LINE 4A AND 4B SEVERANCE - LINE 4A TRACIE NEWMAN RECEIVED SEVERANCE PAY IN THE AMOUNT OF $187,788 DURING 2013. SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN - LINE 4B THE SERP II PLAN OF BANNER HEALTH, THE SOLE MEMBER OF THE ORGANIZATION, COVERS RONALD BUNNELL AND DAVID BIXBY. THIS SERP IS HELD IN A RABBI TRUST AT NORTHERN TRUST COMPANY. EMPLOYER CONTRIBUTIONS TO SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (INCLUDED IN COL C AS DEFERRED COMPENSATION): RONALD BUNNELL $1,093,594 DAVID BIXBY $562,424 FORM 990, SCHEDULE J, PART I, LINE 7 - NONFIXED PAYMENTS 1. RONALD BUNNELL, DAVID BIXBY, JOHN HENSING, KATHY BOLLINGER AND JAMES BRANNON PARTICIPATE IN A LONG-TERM INCENTIVE PLAN (LTIP) COVERING A THREE-YEAR CYCLE FROM 2013-2015. THE LTIP WAS DESIGNED AT THE INITIATIVE OF THE BANNER BOARD OF DIRECTORS WITH THE ASSISTANCE OF TOWERS WATSON, AND ALL COMPONENTS WERE APPROVED BY THE BOARD. THE PLAN HAS THREE AREAS OF PERFORMANCE TARGETS: OPERATING MARGINS, ACCOUNTABLE CARE ORGANIZATION (ACO) QUALITY PERFORMANCE, AND COVERED LIVES (POPULATION HEALTH MANAGEMENT). AWARDS ARE CALCULATED AS A PERCENTAGE OF AVERAGE BASE SALARY DURING THE THREE-YEAR CYCLE, AND OPPORTUNITY VARIES BY POSITION LEVEL. THE PLAN REQUIRES A THRESHOLD LEVEL OF FINANCIAL PERFORMANCE BEFORE ANY AWARDS CAN BE MADE, AND THE AMOUNT OF THE AWARDS VARIES WITH THE DEGREE OF ACHIEVEMENT OF THE TARGETS. THE MAXIMUM LTIP PAYOUT OPPORTUNITY RANGES FROM 75% TO 45% OF THE AVERAGE THREE-YEAR BASE SALARY. AWARDS HAVE BEEN ACCRUED UNDER THE LTIP, BUT NO PAYMENTS ARE MADE UNTIL AFTER YEAR-END AND ACHIEVEMENT IS VERIFIED BY THE BANNER HEALTH BOARD COMPENSATION COMMITTEE AND APPROVED BY THE FULL BOARD OF DIRECTORS OF BANNER HEALTH. ALL LTIP COMPENSATION PAYMENTS ARE REPORTED IN THE INCENTIVE AND BONUS COMPENSATION SHOWN IN SCHEDULE J, PART II, COL B (II). 2. BANNER HEALTH HAS A MANAGEMENT INCENTIVE PLAN (MIP) WHICH IS BASED ON COMPANY ACHIEVEMENT OF BASE AND STRETCH TARGETS FOR SEVERAL FINANCIAL AND NON-FINANCIAL/CLINICAL QUALITY METRICS THAT ARE ESTABLISHED ANNUALLY BY THE BANNER HEALTH BOARD OF DIRECTORS. AWARDS ARE GRANTED AS A PERCENTAGE OF THE PARTICIPANT'S BASE SALARY AND VARY WITH THE POSITION LEVEL OF THE PARTICIPATING EMPLOYEE, RANGING FROM 24% TO 80% OF BASE SALARY. IN 2013, THERE WERE 780 MIP PARTICIPANTS. THE MIP WAS ACCRUED IN 2012 FOR THE 2013 MIP, AND PAYOUTS ON THE 2013 MIP WERE PAID IN 2014. MIP COMPENSATION IS INCLUDED IN SCHEDULE J, PART II, COL B (II). 3. CLINICAL PHYSICIANS EMPLOYED BY BANNER ARE TYPICALLY PAID ON THE BASIS OF A COMPENSATION SYSTEM THAT INCORPORATES A BASE SALARY AND A NON-FIXED PRODUCTIVITY COMPONENT THAT IS BASED UPON THE PHYSICIAN'S PRODUCTIVITY. ALL BONUS AND INCENTIVE COMPENSATION UNDER THIS PLAN IS INCLUDED IN SCHEDULE J, PART II, COL B(II). SCHEDULE J, PART II ADDITIONAL COMPENSATION NOTES 1) 457(F) CASHOUT THE EXECUTIVE EXEC 457(F) PLAN OF BANNER HEALTH COVERS SOME OF THE OFFICERS AND DIRECTORS LISTED ON FORM 990, PART VII, SECTION A, LINE 1A. THIS NONQUALIFIED PLAN IS HELD AT FIDELITY INVESTMENTS. VESTING OCCURS UPON MEETING VESTING REQUIREMENTS (SUBJECT TO A SUBSTANTIAL RISK OF FORFEITURE) - EARLIER OF AGE 62, 5 YEARS FROM DATE OF DEPOSIT OR RULE OF 80. THE ONLY CONTRIBUTIONS ALLOWED ARE EMPLOYER CONTRIBUTIONS. PAYOUT AMOUNTS ARE TAXABLE AND INCLUDED IN SCHEDULE J, PART II, COL B(III): KATHY BOLLINGER $93,868 JOHN HENSING, MD $107,242 PAMELA NENABER $35,358 2) BONUS LIFE INSURANCE AS PART OF BANNER HEALTH'S EXECUTIVE SELECT BENEFIT PROGRAM (ESB), CERTAIN INDIVIDUALS PARTICIPATED IN THE BONUS LIFE INSURANCE PROGRAM (BLIP). ELIGIBLE EMPLOYEES COULD ELECT TO USE PART OF THEIR ESB ALLOWANCE TO PURCHASE BLIP THROUGH NORTHWESTERN MUTUAL. THE PARTICIPATING EMPLOYEE OWNS THE POLICY AND CAN ACCESS ITS CASH VALUE. THE ENTIRE AMOUNT PURCHASED IS REPORTED AS TAXABLE COMPENSATION IN COLUMN B(III) FOR THE FOLLOWING INDIVIDUALS: GUSTAV DECKER, MD $43,378 JAMES BRANNON $61,522 3) SHARE OPTION PLAN CERTAIN INDIVIDUALS PARTICIPATED IN BANNER'S SHARE OPTION PLAN WHICH ALLOWED THEM TO PURCHASE MUTUAL FUND SHARE OPTIONS OVER A SPECIFIED PERIOD OF TIME AT BELOW FAIR MARKET VALUE. THE VALUE OF MUTUAL FUNDS RECEIVED IS TAXABLE UPON EXERCISE OF THE OPTIONS. THE FOLLOWING INDIVIDUALS EXERCISED MUTUAL FUND SHARE OPTIONS AS PART OF THIS PLAN DURING 2013 THE VALUE OF WHICH IS INCLUDED IN SCHEDULE J, PART II, COLUMN (B)(III): RONALD BUNNELL $213,276 4) CARLSON, DECKER, EKSTRAND AND BAKER ARE STILL EMPLOYED WITHIN THE BANNER HEALTH SYSTEM BUT ARE NO LONGER OFFICERS THIS ENTITY. THEREFORE, THEY ARE MARKED AS FORMER ON THIS FORM 990. FORM 990, PART III, LINE 4 BMGC WAS FORMED FOR THE PURPOSES OF ENABLING THE BH SYSTEM TO PROVIDE INTEGRATED AND COORDINATED CARE AND POPULATION HEALTH MANAGEMENT, THEREBY FURTHERING BANNER'S EXEMPT PURPOSES BY ENABLING IT TO PROVIDE HIGHER QUALITY, MORE EFFICIENT (AND LESS DUPLICATIVE) AND LESS EXPENSIVE HEALTHCARE FOR THE COMMUNITIES IT SERVES. BY CONSOLIDATING PHYSICIAN EMPLOYMENT WITHIN A SINGLE ENTITY, BMGC IS ABLE TO COORDINATE AND INTEGRATE WITH BH IN ORDER TO IMPROVE TRANSPARENCY AND ACCOUNTABILITY IN THE PHYSICIAN OPERATIONS AND TO ALIGN THE PHYSICIAN OPERATIONS MORE FULLY AND CONSISTENTLY WITH THE EXEMPT PURPOSES AND OPERATIONS OF BH. THIS ALLOWS THE BH SYSTEM TO RESPOND TO CHANGES IN THE COMMUNITY HEALTHCARE SYSTEM ENCOURAGED BY THE PATIENT PROTECTION AND AFFORDABLE CARE ACT OF 2010. BMGC ACTIVITIES ARE PRIMARILY FUNDED THROUGH PROFESSIONAL REVENUE EARNED THROUGH THE ACTIVITIES OF THE EMPLOYED PHYSICIANS AND SUPPORT FROM BH. BMGC'S EMPLOYED PHYSICIANS PROVIDE THE FOLLOWING SERVICES: A. MOST OF THE PHYSICIANS ARE HOUSED IN BANNER HEALTH CLINICS LOCATED THROUGHOUT THE SERVICE AREA OF BH'S ACUTE CARE HOSPITALS. THESE PHYSICIANS INCLUDE PRIMARY CARE PROVIDERS AND SPECIALISTS WHO MEET THE HEALTHCARE NEEDS OF THE AREA BY PROVIDING HIGH-QUALITY HEALTHCARE IN A CONVENIENT AND PATIENT-FRIENDLY ENVIRONMENT. A NUMBER OF THESE PHYSICIANS WILL EVENTUALLY BE GROUPED INTO LARGER BANNER HEALTH CENTERS WHICH WILL PROVIDE A VARIETY OF PRIMARY AND SPECIALIST PHYSICIAN SERVICES AND ANCILLARY SERVICES SUCH AS CLINICAL LABORATORY, IMAGING, PHYSICAL THERAPY, AMBULATORY SURGERY, AND OTHER SERVICES FOUND IN MULTI-SPECIALTY PHYSICIAN CLINIC SITES. B. ANOTHER GROUP OF BMGC'S PHYSICIANS ARE WORKING, AND WILL CONTINUE TO WORK, PRIMARILY IN BH'S ACUTE CARE HOSPITALS TO PROVIDE SPECIALTY PROCEDURE-BASED CARE, SUCH AS CARDIOLOGY, GASTROENTEROLOGY, UROLOGY, RADIOLOGY, CARDIOVASCULAR SURGERY, BARIATRIC SURGERY, ORTHOPEDIC SURGERY AND GENERAL SURGERY. THIS GROUP OF PHYSICIANS ALSO INCLUDES HOSPITALISTS, WHO PROVIDE 24/7 CARE FOR PATIENTS ADMITTED TO BH'S ACUTE CARE HOSPITALS, AND INTENSIVISTS, WHO PROVIDE CARE FOR PATIENTS ADMITTED TO BH'S INTENSIVE CARE UNITS, INCLUDING INTENSIVISTS WHO ARE EMPLOYED IN BH'S E-ICU, A REMOTE ICU MONITORING SYSTEM THAT ENABLES HIGHLY TRAINED AND EXPERIENCED INTENSIVISTS HOUSED IN REMOTE MONITORING CENTERS TO OBSERVE AND MONITOR ICU PATIENTS ON A 24/7 BASIS, INCLUDING PATIENTS ADMITTED TO ICU'S IN BH'S SMALLER, RURAL HOSPITALS. C. ANOTHER COMPONENT OF BMGC'S PHYSICIANS AND ALLIED HEALTH PROVIDERS PROVIDE OCCUPATIONAL HEALTH SERVICES IN BH'S OCCUPATIONAL HEALTH CLINICS. THESE CLINICS PROVIDE TRADITIONAL WORKERS COMPENSATION, EMPLOYEE HEALTH EVALUATIONS AND SIMILAR SERVICES, BOTH FOR BH'S SUBSTANTIAL WORKFORCE AND FOR EMPLOYERS IN THE COMMUNITIES SERVED BY BH'S HOSPITALS. FORM 990, PART VI, LINE 1a BMGC's executive committee consists of at least 3 members of the board of directors and shall include the Chairman. The executive committee meets as needed between scheduled Board meetings and has the duty and delegated responsibility to take action as required on behalf of, and in place of, the board. All such actions shall be reported to the board at the next regularly scheduled board meeting. FORM 990, PART VI, LINE 6 BANNER MEDICAL GROUP COLORADO'S (BMGC) SOLE MEMBER IS BANNER HEALTH (BH), AN ARIZONA NON-PROFIT CORPORATION, WHICH IS ALSO EXEMPT UNDER SECTION 501(C)(3). Form 990, Part VI, Line 7a THE BOARD OF DIRECTORS OF BANNER HEALTH, THE SOLE MEMBER, ELECTS THE BOARD OF DIRECTORS OF BANNER MEDICAL GROUP COLORADO. A MAJORITY OF THE MEMBERS OF THE BOARD OF DIRECTORS ARE REQUIRED TO BE PHYSICIANS WHO ARE EMPLOYED BY BANNER MEDICAL GROUP COLORADO OR AN AFFILIATE OF BANNER MEDICAL GROUP COLORADO FOR THE PRIMARY PURPOSE OF PROVIDING CLINIC SERVICES. ANY DIRECTOR MAY BE REMOVED BY BANNER HEALTH AT ANY TIME, WITH OR WITHOUT CAUSE. Form 990, Part VI, Line 7b BANNER HEALTH, THE SOLE MEMBER, SHALL HAVE AND EXERCISE THOSE POWERS HEREAFTER DESCRIBED: (A) APPOINT OR REMOVE THE PRESIDENT, THE CHIEF FINANCIAL OFFICER, THE CHIEF MEDICAL OFFICER, AND OTHER EXECUTIVE EMPLOYEES OF THE CORPORATION; (B) EVALUATE THE PERFORMANCE OF, AND ESTABLISH THE COMPENSATION OF, THE PRESIDENT; (C) REVIEW AND APPROVE THE COMPENSATION OF THE CHIEF FINANCIAL OFFICER, THE CHIEF MEDICAL OFFICER, AND OTHER EXECUTIVE EMPLOYEES OF THE CORPORATION; (D) APPOINT OR REMOVE ALL MEMBERS OF THE BOARD OF DIRECTORS OF THE CORPORATION, WHICH SHALL BE DONE BY VOTE OF THE BOARD OF DIRECTORS OF THE MEMBER; (E) REVIEW AND APPROVE MISSION STATEMENTS AND STRATEGIC PLANS; (F) APPROVE THE ESTABLISHMENT OF ALL NEW CORPORATE OR PARTNERSHIP ENTITIES CREATED OR JOINED BY THE CORPORATION; (G) REVIEW AND APPROVE OPERATING AND CAPITAL BUDGETS OF THE CORPORATION; (H) APPROVE ALL UNBUDGETED EXPENDITURES OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE MEMBER; (I) APPROVE THE PURCHASE OR SALE OF ANY ASSET OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE VOTING MEMBER, OR THE MERGER OR CONSOLIDATION OF THE CORPORATION WITH OR INTO ANY OTHER ENTITY; (J) APPROVE MAJOR CONTRACTS OF A NATURE AND SIZE AS DETERMINED BY POLICY AND SIGNATURE AUTHORITY OF THE MEMBER; (K) APPROVE ALL DEBT AND GUARANTIES OF THE CORPORATION OF TYPES AND LIMITS OVER THRESHOLDS AND SIGNATURE AUTHORITY AS ESTABLISHED BY POLICY OF THE MEMBER; (L) APPROVE THE INFORMATION TECHNOLOGY INFRASTRUCTURE OF THE CORPORATION; (M) APPROVAL OF THE COMPENSATION PHILOSOPHY, MODELS AND METHODOLOGY FOR CLINICAL PHYSICIANS EMPLOYED BY THE CORPORATION; (N) APPROVAL OF THE PATIENT FINANCIAL ASSISTANCE POLICIES APPLICABLE TO SERVICES PROVIDED BY THE CLINICAL PHYSICIANS AND OTHER HEALTH PROFESSIONALS EMPLOYED BY THE CORPORATION; AND (O) APPROVAL OF ANY ACTION, OR THE PROHIBITION OF ANY ACTION, IN EACH AS IS REASONABLY NECESSARY TO PRESERVE THE STATUS OF THE MEMBER AND OF THE CORPORATION AS ORGANIZATIONS DESCRIBED IN SECTION 501(C)(3) OF THE CODE. Form 990, Part VI, Line 11b THE 990 IS REVIEWED BY BANNER HEALTH'S LEGAL DEPARTMENT, TAX DEPARTMENT, INTERNAL AUDIT DEPARTMENT AND CERTAIN BANNER MEDICAL GROUP COLORADO OFFICERS. A MEETING IS HELD WITH THE TAX PREPARER AND A LINE-BY-LINE REVIEW IS DONE PRIOR TO THE FILING OF THE RETURN. THE FORM 990 WILL BE MADE AVAILABLE TO THE GOVERNING BODY AT THE NEXT REGULARLY SCHEDULED BOARD MEETING AFTER FILING. Form 990, Part VI, Line 12c BANNER MEDICAL GROUP COLORADO HAS ADOPTED THE BANNER HEALTH CONFLICT OF INTEREST POLICY. THIS POLICY REQUIRES THE INTERNAL AUDIT DEPARTMENT OF BANNER HEALTH TO PROVIDE EACH PARTY WITH A DISCLOSURE QUESTIONNAIRE. THE INTERNAL AUDIT DEPARTMENT PREPARES A SUMMARY FOR THE TAX DEPARTMENT. THIS SUMMARY IS ALSO PRESENTED TO THE AUDIT COMMITTEE. THE TAX DEPARTMENT PREPARES THE FORM 990 DISCLOSURE. THIS DISCLOSURE IS PRESENTED TO THE LEGAL DEPARTMENT FOR REVIEW. PURSUANT TO BANNER HEALTH'S CONFLICT OF INTEREST POLICY, ALL BOARD MEMBERS, OFFICERS AND THE DIRECTOR OF AUDIT SERVICES MUST DISCLOSE THE EXISTENCE OF ANY FINANCIAL INTEREST THAT MAY GIVE RISE TO A CONFLICT OF INTEREST. Form 990, Part VI, Line 15 PART VI, LINE 15A WAS ANSWERED "NO" IN ACCORDANCE WITH FORM 990 INSTRUCTIONS BECAUSE THE FILING ENTITY DOES NOT DETERMINE COMPENSATION. THE COMPENSATION OF THE BANNER MEDICAL GROUP COLORADO CEO IS DETERMINED BY THE BANNER HEALTH EXECUTIVE VICE-PRESIDENT/CHIEF MEDICAL OFFICER AND IS SUBJECT TO OVERSIGHT BY THE BANNER HEALTH BOARD OF DIRECTORS COMPENSATION COMMITTEE IN THE SAME MANNER AS SUCH OVERSIGHT IS EXERCISED OVER OTHER VICE PRESIDENTS AND HIGHER EXECUTIVES OF BANNER HEALTH. THE COMPENSATION OF OTHER OFFICERS OF BANNER MEDICAL GROUP COLORADO IS ESTABLISHED BY THE BANNER MEDICAL GROUP COLORADO CEO, IF THEY ARE EMPLOYEES OF BANNER MEDICAL GROUP COLORADO, OR BY BANNER HEALTH, IF THEY ARE EMPLOYEES OF BANNER HEALTH, IN EACH CASE WITHIN COMPENSATION RANGES SET BY THE BANNER HEALTH COMPENSATION AND BENEFITS DEPARTMENT BASED ON MARKET DATA. BANNER HEALTH'S PROCESS TO DETERMINE THE COMPENSATION OF BANNER MEDICAL GROUP COLORADO IS AS FOLLOWS: BANNER HEALTH UTILIZES A COMPENSATION COMMITTEE THAT EXERCISES OVERSIGHT OVER ALL ASPECTS OF THE COMPENSATION PAID TO OR FOR THE BENEFIT OF THE CEO AND ALL OTHER SENIOR EXECUTIVES OF BANNER HEALTH AND ANY OF ITS AFFILIATES, INCLUDING BANNER MEDICAL GROUP COLORADO CEO, AND ALL OTHER PERSONS WHO CONSTITUTE "DISQUALIFIED PERSONS" WITH RESPECT TO BANNER HEALTH UNDER CODE SECTION 4958. THE COMMITTEE ANNUALLY REVIEWS AND DETERMINES THE EXECUTIVE TOTAL COMPENSATION PHILOSOPHY OF BANNER HEALTH; ESTABLISHES THE PERMISSIBLE RANGES OF COMPENSATION FOR SENIOR EXECUTIVES AND DISQUALIFIED PERSONS, INCLUDING THE BANNER MEDICAL GROUP COLORADO CEO; REVIEWS AND APPROVES THE DESIGN OF THE COMPONENTS OF COMPENSATION FOR SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS; MONITORS COMPLIANCE OF BANNER HEALTH AND AFFILIATES WITH THE PHILOSOPHY AND DESIGN COMPONENTS OF EXECUTIVE COMPENSATION; RECEIVES THE BANNER HEALTH CEO'S REPORT CONCERNING THE OVERALL PERFORMANCE AND DEVELOPMENT ASSESSMENT OF THE SENIOR EXECUTIVES, INCLUDING THE BANNER MEDICAL GROUP COLORADO CEO; ACTS FOR THE BOARD IN THE APPOINTMENT, ESTABLISHMENT OF COMPENSATION AND DIRECT OVERSIGHT OF EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS ENGAGED TO PROVIDE ADVICE AND INFORMATION WITH RESPECT TO THE REASONABLENESS AND COMPETITIVENESS OF THE COMPENSATION PAID TO THE CEO, SENIOR EXECUTIVES AND ANY OTHER DISQUALIFIED PERSONS, WHICH CONSULTANT REPORTS DIRECTLY TO THE COMMITTEE; AND PERFORMS SUCH OTHER DUTIES AND DELEGATED RESPONSIBILITIES AS THE BOARD MAY ASSIGN TO THE COMMITTEE FROM TIME TO TIME. IN ADDITION, THE COMMITTEE HAS ADOPTED THE FOLLOWING BEST PRACTICES WITH RESPECT TO ITS EXECUTIVE COMPENSATION OVERSIGHT FUNCTION: RECEIVES THE REPORT OF THE VICE PRESIDENT, TOTAL COMPENSATION, REGARDING ALL MATERIAL INCENTIVE PLANS, BENEFIT PLANS AND PROGRAMS THAT APPLY TO EMPLOYEES AND PHYSICIANS GENERALLY; APPROVES THE BANNER HEALTH CEO'S RECOMMENDATIONS AS TO THE COMPENSATION OF SENIOR EXECUTIVES. THE COMPENSATION COMMITTEE MAY RETAIN EXTERNAL INDEPENDENT COMPENSATION CONSULTANTS TO THE EXTENT THE COMMITTEE DEEMS NECESSARY OR APPROPRIATE TO CARRY OUT ITS RESPONSIBILITIES. IF SO ENGAGED, THE COMMITTEE HAS RESPONSIBILITY FOR APPROVING THE FEES AND THE TERMS OF ENGAGEMENT FOR THE CONSULTANTS, AS WELL AS TERMINATION OF SUCH ENGAGEMENT. TYPICALLY, THE COMMITTEE HAS ENGAGED A CONSULTANT ANNUALLY TO REVIEW AND OPINE AS TO THE REASONABLENESS OF THE CEO'S COMPENSATION PACKAGE AND HAS ENGAGED A CONSULTANT APPROXIMATELY ONCE EVERY THREE YEARS TO REVIEW AND OPINE AS TO THE REASONABLENESS OF SENIOR EXECUTIVE AND OTHER EXECUTIVE MANAGEMENT COMPENSATION, INCLUDING THAT OF THE BANNER MEDICAL GROUP COLORADO CEO. THE COMMITTEE PERIODICALLY REVIEWS THE RELATIONSHIP BETWEEN BANNER HEALTH AND EACH CONSULTANT TO ENSURE THE CONSULTANT'S INDEPENDENCE. IN CONNECTION WITH EACH SUCH EVALUATION, THE COMMITTEE REQUESTS A WRITTEN CERTIFICATION FROM EACH CONSULTANT THAT: INCLUDES AN INDEPENDENCE ATTESTATION AFFIRMING THAT THE CONSULTANT HAS CONDUCTED ITS OWN INTERNAL ASSESSMENT AND, BASED ON SUCH ASSESSMENT AND ITS INTERNAL CONTROLS, CONCLUDED THAT IT HAS PERFORMED ITS SERVICES FOR THE COMMITTEE IN AN INDEPENDENT MANNER AND IS INDEPENDENT AS DEFINED IN THE INTERMEDIATE SANCTION REGULATIONS UNDER CODE SECTION 4958; CONFIRMS THAT THE CONSULTANT REPORTS TO THE COMMITTEE THROUGH THE CHAIR OF THE COMMITTEE AND THAT ALL CONSULTING ACTIVITY FOR BANNER HEALTH CONDUCTED BY SUCH CONSULTANT DURING THE PRECEDING YEAR WAS CONDUCTED WITH THE KNOWLEDGE AND CONSENT OF THE CHAIR OF THE COMMITTEE; AND DETAILS THE AMOUNTS PAID BY BANNER HEALTH TO THE CONSULTANT IN ITS CAPACITY AS AN EXTERNAL COMPENSATION CONSULTANT TO THE COMMITTEE, AND THE AMOUNTS PAID BY BANNER HEALTH, IF ANY, TO THE CONSULTANT AND ITS AFFILIATES FOR ANY OTHER ENGAGEMENTS. THE COMMITTEE MAY ALSO REQUIRE THE CONSULTANT TO VERIFY THAT IT MEETS THE DEFINITION OF "INDEPENDENCE" AS DESCRIBED IN THE FORM 990 INSTRUCTIONS. COMPENSATION SURVEYS AND STUDIES ARE UTILIZED BY INDEPENDENT CONSULTANTS THAT THE COMMITTEE MAY ENGAGE FROM TIME TO TIME. Form 990, Part VI, Line 19 THE ORGANIZATION'S GOVERNING DOCUMENTS, AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, AND TAX RETURNS ARE AVAILABLE UPON REQUEST. COPIES ARE MAINTAINED AT EACH ADMINISTRATIVE OFFICE AND IN THE LEGAL AND TAX DEPARTMENTS. FORM 990, PART XI, LINE 9 INTERCOMPANY TRANSFERS 21,569,092 BANNER URGENT CARE - COLORADO LLC 1801 16TH STREET GREELEY CO 80631 900733287 MEDICAL SVS CO 0 0 BMGC BANNER HEALTH PHYSICIANS - COLORADO LLC 1801 16TH STREET GREELEY CO 80631 900733283 MEDICAL SVS CO 81892805 7904358 BMGC BANNER OCCUPATIONAL HLTH - COLORADO LLC 1801 16TH STREET GREELEY CO 80631 900733286 MEDICAL SVS CO 3263550 239043 BMGC BANNER HOSPITAL BASED PHYSICIANS-CO LLC 1801 16TH STREET GREELEY CO 80631 900733285 MEDICAL SVS CO 4479415 379613 BMGC BANNER ANESTHESIOLOGISTS - COLORADO LLC 1801 16TH STREET GREELEY CO 80631 900933809 MEDICAL SVS CO 0 0 BMGC BANNER ALZHEIMER'S FOUNDATION 1441 N 12TH STREET PHOENIX AZ 85006 204862361 SUPPORT AZ 501(c)(3) 7 BANNER HLTH true BANNER HEALTH 1441 N 12TH STREET PHOENIX AZ 85006 450233470 HOSPITAL AZ 501(c)(3) 3 NA false GOOD SAMARITAN COMMUNITY FOUNDATION 1441 N 12TH STREET PHOENIX AZ 85006 866306490 SUPPORT AZ 501(c)(3) 509A(3)(II) BANNER HLTH true BANNER MEDICAL GROUP 1441 N 12TH STREET PHOENIX AZ 85006 900532830 MEDICAL SVS AZ 501(c)(3) 3 BANNER HLTH true BANNER HEALTH FOUNDATION 1441 N 12TH STREET PHOENIX AZ 85006 942545356 SUPPORT AZ 501(c)(3) 7 BANNER HLTH true ALZHEIMER RESEARCH FORUM Fdn(THRU 1213) 2025 N 3RD STREET SUITE 250 PHOENIX AZ 85004 043382717 SUPPORT DE 501(C)(3) PF BANNER HLTH true PARTNERS IN INTEGRATED HEALTH 1441 N 12TH ST PHOENIX AZ 85006 611700965 INACTIVE AZ N/A BANNER PLAN ADMINISTRATION INC 525 W BROWN ROAD 7TH FLOOR MESA AZ 85201 860800246 THIRD PARTY ADMIN AZ NA C Corp true BANNER HEALTH TANANA VALLEY MEDICAL-SUR 1001 NOBLE STREET FAIRBANKS AK 99701 920049930 MEDICAL SERVICES AK NA C Corp true BANNER INDEMNITY LTD PO BOX 1051 GRAND CAYMAN BWI CJ 450233470 INVESTMENTS CJ NA FOREIGN CORP. true BANNER HEALTH NETWORK 1441 N 12TH ST PHOENIX AZ 85006 900750689 ACCTBLE CARE ORG AZ NA C-CORP true false false false false false false false false false false true true true true true true false false true SCHEDULE R, PART III PARTNERS IN INTEGRATED HEALTH, LLC EIN: 61-1700969 ADDRESS: 1441 N. 12TH STREET, PHOENIX, AZ 85006