2014-05-12T10:51:45-00:00 2013-06-30 Plante & Moran PLLC 750 Trade Centre Way Portage MI 49002 990 2012-07-01 262957251 Sun Health Services SUNH 6238326616 PO Box 6030 Sun City West AZ 85376 William T Sellner 2014-05-12 true Carol LaLonde 2695674587 2014-05-12 2012 2015-11-30 17:44:51Z Ronald D Guziak PO Box 6030 Sun City West AZ 85376 56526559 false X www.sunhealth.org X 2008 AZ Sun Health Services supports and benefits Sun Health Foundation, Banner Health, and other charitable organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the greater Phoenix , Arizona, metropolitan area. 19 18 1 18 0 -119136 5037722 4193740 2560087 2698025 12208958 11126838 1003509 1479104 20810276 19497707 13148870 14968048 0 2751659 4305580 0 0 22505722 11462247 38406251 30735875 -17595975 -11238168 326434377 331794112 146076074 136414815 180358303 195379297 X Sun Health champions healthy living, research and superior health care with a vision of being the leading advocate for facilitating healthy living. false false 23825794 13468048 519099 Sun Health Services continues a Support and Maintenance Agreement with Banner Health whereby Sun Health and Affiliates agreed to support the capital and operating needs of the former Sun Health health care facilities. Banner Health agreed to certain capital and operating commitments in return for Sun Healths support. During fiscal year 2013, over 13,000,000 was committed to two community based medical centers and a locally based research institute, with emphasis on diseases of the aging. The primary functions of Sun Health Services includes monitoring and ensuring Banners compliance with the covenants set forth in the Support and Maintenance Agreement and oversight and monitoring of the investments portfolio and various parcels of real estate. In addition, certain affiliates of Sun Health Services operate three distinct continuing care retirement communities. See Schedule O for continuation of description. 3214566 1500000 2178926 Sun Health Senior Living offers the elderly population an array of living experiences including independent, assisted living, and skilled and rehabilitation nursing care via three Arizona retirement communities Grandview Terrace in Sun City West, La Loma Village in Litchfield Park, and The Colonnade in Sun City Grand. 689986 The Care Transitions program serves local medical center patients age fifty-five and up by giving individuals the support, guidance and resources to transition from the hospital setting and/or coping with chronic health issues. The program contributes to a significant reduction in hospital readmissions. 35350 27765696 true true false false false false false false false false true true false true true true false true false false false false false false false false false true false true false false false false false false false false false false false false true true true true false false true 51 0 true 1 true true true false false false false false false false false false X 19 18 false false false false false true false true true false false true true true true true true true true true true AZ X William T Sellner EVP-CFO 6238326616 PO Box 6030 Sun City West AZ 85376 X A Steven Charney MD 002.00 X X 0 0 0 Leonard F DeBaker 002.00 X 0 0 0 Sandra L Foell 002.00 005.00 X X 0 0 0 Frank E Joyce 002.00 X 0 0 0 L Birt Kellam 002.00 002.00 X 0 0 0 Richard V Livengood 002.00 X X 0 0 0 Dean L Strycker MD 002.00 X 0 0 0 Cathy Ross 002.00 002.00 X 0 0 0 Darl Bachmann 002.00 002.00 X 0 0 0 R Jack Stephenson 002.00 X X 0 0 0 Janis Ryan 002.00 002.00 X 0 0 0 Jon Jack Wohler 002.00 002.00 X X 0 0 0 Ronald D Guziak 028.00 022.00 X X 0 655285 12976 Larry D Baker 002.00 X 0 0 0 Patricia Lewis Finnell 002.00 005.00 X 0 0 0 Robert Carrier 002.00 X 0 0 0 Robert McMillan DDS 002.00 X 0 0 0 Herman Orcutt 002.00 X 0 0 0 Barbara Robey 002.00 X 0 0 0 William T Sellner 040.00 010.00 X 0 379069 36499 Leland Peterson - retired 122009 X X 599505 0 0 Sharon Grambow 005.00 045.00 X 0 232133 14122 Joseph La Rue 040.00 010.00 X 0 350071 13682 J Warren Tyler 046.00 004.00 X 0 122360 35258 Jennifer Drago 050.00 X 0 192033 4910 Coiya Tompkins 050.00 X 0 168521 5844 599505 2099472 123291 1 true true false Northern Trust 2398 E Camelback Rd Phx AZ 85016 Investment Management 377865 Creative Networks LLC 950 W Behrend Dr Ste 1 Phx AZ 85027 Home Health Care 208000 Drinker Biddle & Reath One Logan Sq 2000 Phila PA 19103 Legal 347471 Plante and Moran PLLC 16060 Collections Ctr Dr Chicago IL 60693 Audit 194975 CornerStone Partners 675 Peter Jefferson Pkwy Charlottesville VA 22911 Investment Management 466094 6 4193740 4193740 Life Care Communities Administration 561000 2178926 2178926 Land Rentals 531190 519099 519099 2698025 3871995 3871995 1658071 678967 979104 979104 979104 41762109 1842619 35657142 692743 6104967 1149876 7254843 7254843 Transaction Consideration 900099 500000 500000 500000 19497707 2698025 12605942 14968048 14968048 0 0 0 1518961 546826 972135 0 1956575 1848095 108480 0 656063 594181 61882 173981 159063 14918 73914 47305 26609 180556 14891 165665 124120 124120 0 843959 843959 228182 187316 40866 424271 281479 142792 218876 156681 62195 193590 127137 66453 0 414093 294782 119311 37105 26417 10688 0 71116 45514 25602 2761571 2678724 82847 0 318866 278787 40079 0 Taxes Licenses 172028 110450 61578 Medicare Contingency 5400000 5400000 0 30735875 27765696 2970179 0 932142 3201983 17138746 22766921 40702296 4394909 35252983 36307387 210435324 221383669 27516861 26355325 7689061 989515 27469260 20789312 326434377 331794112 8573007 12597381 27864060 25965879 21716894 21261831 77050386 66390748 10871727 10198976 146076074 136414815 X 167803204 183779737 12555099 11599560 180358303 195379297 326434377 331794112 X -11238168 16304724 9954438 X false true X true false X X X X false false false Sun Health Foundation 237107959 07 true true true 1500000 Banner Health 450233470 03 true true true 13468048 2 14968048 0.00000 0.00000 0.00000 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 29038086 29038086 9593192 4126041 5765651 542062 547099 353440 1528956 -139288 1150210 36307387 Financial derivatives and other financial products Closely-held equity interests JDM Partners Opportunity Fund I, LLC 7903314 F Sun Health Senior Living, LLC 1186933 F 203 Grand, LLC 42530 F CT Investors I, LLC 100000 F Rep Sun II, LLC 4017119 F Sun Health Colonnade 8000000 F La Loma Senior Living Services 5105429 F 26355325 Pledged Funds 18783333 Prepaid Expenses 91543 Receivables - Other 1914436 20789312 Federal income taxes Due to Banner 144596 Transaction Liability 1366064 N/P - La Loma 4369121 N/P - GVT Deferred Entrance Fees 3201192 Deferred Tax Liability 1118003 10198976 X X 2 Partners earnings are subject to federal and state income taxes. Deferred tax assets and liabilities are determined based on the differences between the financial reporting and tax basis of assets and liabilities using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is determined that it is more likely than not that some portion of all of a deferred tax asset will not be realized. X 2 Accounting principles generally accepted in the United States of America require management to evaluate tax positions taken by Sun Health and recognize a tax liabiity if uncertain positions are taken that more likely than not would not be sustained upon examination by the IRS or other applicable taxing authorities. Management has analyzed the tax positions of Sun Health and has concluded that as of June 30, 2013 and 2012, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the combined financial statements. Sun Health is subject to routine audits by taxing jurisdictions however, there are currently no audits for any tax periods in progress. Management believes it is no longer subject to income tax examination for years prior to June 30, 2010 for Sun Health Services, Sun Health Foundation and La Loma Senior Living and December 31. 2009 for Sun Health Partners, Grandview Terrace, Sun Health Colonnade and Sun Health Senior Living. true Banner Health 1441 N 12th St Phoenix AZ 85006 450233470 501c3 13468048 Health Care Funding Sun Health Foundation 14719 W Grand Ave Surprise AZ 85374 237107959 501c3 1500000 Health Care Funding 2 I 2 Grants to Banner Health and other organizations engaged in promoting or enhancing the delivery of health care will be subject to written agreements. The Organization will provide funds to Banner Health in fulfillment of the support obligations of the Sun Health Support Parties including Sun Health Foundation pursuant to the Support and Maintenance Agreement. X X X X X X true true false false false false false false false Leland Peterson - retired 122009 599505 599505 William T Sellner 268810 60726 49533 32251 4248 415568 Joseph La Rue 247297 55650 47124 9734 3948 363753 J Warren Tyler 119966 1826 568 31011 4248 157619 Ronald D Guziak 412882 124368 118035 10000 2976 668261 Jennifer Drago 137407 19761 34865 4910 196943 Coiya Tompkins 123099 19873 25549 5724 120 174365 Sharon Grambow 188942 37118 6073 8970 5152 246255 I 4a In connection with the Banner Health transaction, the following individual received change-in-control/serverance payments during the calendar year 2012 Mr. Leland Peterson. The severance agreement associated with the change-in-control was subject to an independent consultants review with oversight by the Board of Directors through the Management Review Committee. Mr. Petersons change-in-control/severance payments concluded during the 2012 calendar year. I 4b Mr. William Sellner, Mr. Joseph LaRue, Mr. Ronald Guziak, Ms. Jennifer Drago and Ms. Sharon Grambow participate in a board endorsed 457b plan. Each participant deferred 17,000 into the plan with the exception of Sharon Grambow who contributed 5,376. A non-qualified 457f plan is board endorsed for certain executives. This plan carries a substantial risk of forfeiture in that vesting only occurs the earlier of 5 years from the date of deposit, age 62 or Rule of 80 age and service equals 80 or more. Mr. Ronald Guziak received a 457f payment of 45,162. All deposits are employer contributions. Should a participant voluntarily terminate employment prior to a deposit vesting, the deposit is forfeited. All deposits are paid out and taxed upon vesting. II Effective 9/2/08, the compensation for officers and key employees with the exception of Mr. Leland Peterson was paid by Banner Health through an agreement between Banner Health and Sun Health Services. Banner Health is a separate related 501c3 organization. Sun Health Services reimburses Banner Health for the amounts paid. II The salary and benefits information disclosed on Schedule J, Part II, represents the aggregate compensation to individuals for their services to Sun Health Services, Sun Health Foundation, Sun Health Partners, Sun Health Senior Living, La Loma Senior Living, The Colonnade and Grandview Terrace the latter three being three distinct continuing care retirement communities. II See Schedule O for a disclosure of hours devoted to related organizations. Form 990, Part III, Line 4d Program Service Expenses 35,350, Grants and allocations 0, Revenue 0 Medication Management is a comprehensive program that offers a suite of services to help manage the complexity associated with taking multiple medications and supplements. Participants over the age of thirteen have access to a free customized medication profile detailing their health and drug history. For a nominal fee, individuals have access to pharmacist reviews and/or a special pill box that monitors their medication usage electronically. Form 990 Part III Line 4a The executive and board leadership of Sun Health Services may from time to time assist Sun Health Foundation in its fund development activities and other charitable tax-exempt organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the Greater Phoenix, Arizona, metropolitan area. Form 990 Part VI Section A Line 7a The Directors are ratified by Sun Health Foundations Board of Trustees. Form 990 Part VI Section B Line 11b The Form 990 is prepared by accounting personnel and reviewed by the Executive Vice President/Chief Financial Officer. A review is then conducted by the organizations independent accountant, Plante Moran, PLLC. The return is then reviewed by the Audit Committee and provided to the Board for comments prior to the filing deadline. Form 990 Part VI Section B Line 12c On an annual basis board members and management staff are required to submit a conflict of interest questionaire for Board and management review as appropriate. The questionaire provides specific instructions that the form must be updated if any situation arises during the year that might constitute a conflict. The Audit Committee has responsibility for intervening if necessary on conflict of interest matters. Any individual found to be in conflict will abstain from the decision making process. Form 990 Part VI Section B Line 15 The Management Review Committee, as provided in the organizations by-laws, has a responsibility for the compensation of all senior management. Annually, salaries of senior management are reviewed by the organizations Board of Directors. The deliberation and decision of compensation arrangements was contemporaneously substantiated in the organizations minutes. An independent compensation consultant is retained by the organization periodically to assist with the determination of the compensation and benefits program for all senior management. The compensation process was last undertaken in 2013. Form 990 Part VI Section C Line 19 Governing documents and conflict of interest policies are generally not made available to the public. Financial statements historically have been made available at public meetings and upon reasonable request. Form 990 Part VII Section A Line 1a These individuals devote weekly time to the following organizations William T. Sellner, 40 hours Sun Health Services, 6 hours Sun Health Partners and 4 hours Sun Health Foundation Joseph LaRue, 40 hours Sun Health Services and 10 hours Sun Health Partners Ronald D. Guziak, 28 hours Sun Health Services, 20 hours Sun Health Foundation and 2 hours Sun Health Partners J. Warren Tyler, 46 hours Sun Health Services and 4 hours Sun Health Partners Jennifer Drago, 50 hours Sun Health Services and Coiya Tompkins, 50 Hours Sun Health Services. All of the individuals contribute time to Sun Health Senior Living and to Senior Living entities, including La Loma Senior Living, The Colonnade and Grandview Terrace. Sharon Grambow devotes the majority of time to Senior Living entities as follows 15 hours to La Loma Senior Living Services, 15 hours to Sun Health Colonnade, 15 hours to Sun Health Grandview Terrace and 5 hours to Sun Health Services. The following board members devoted time to Sun Health Foundation, a related organization Patricia Lewis Finnell, 5 hours Sandra L. Foell, 5 hours Darl Bachmann, 2 hours L. Birt Kellam, 2 hours Cathy E. Ross, 2 hours Janis Ryan, 2 hours and Jon Wohler, 2 hours. Form 990 Part XI Line 9 Other changes in net assets and fund balance consist of the following Change in swap value of 7,671,760 change in investment value of 5,943 and pension plan valuation adjustment of 2,276,735. Sun Health Senior Living LLC PO Box 6030 Sun City West AZ 85376 455456931 Administration AZ 2183635 806539 Sun Health Services Sun Health Foundation PO Box 6030 Sun City West AZ 85376 237107959 Fundraising AZ 501c3 7 N/A false Banner Health 1441 N 12th St Phoenix AZ 85006 450233470 Hospital Operator AZ 501c3 3 N/A false La Loma Senior Living Services Inc 14154 Denny Boulevard Litchfield Park AZ 85340 861028348 Senior Living AZ 501c3 9 Sun Health Svcs true Sun Health Colonnade 19116 Colonnade Way Surprise AZ 85374 453137352 Senior Living AZ 501c3 9 Sun Health Svcs true Sun Health Grandview Terrace LLP PO Box 6030 Sun City West AZ 85376 860795477 Senior Community AZ Sun Health Services Related 62797 20324815 false true 0.50000 Sun Health Partners PO Box 6030 Sun City West AZ 85376 860796950 Investments AZ Sun Health Services C Corp 348643 5334951 1.00000 true false true true true false false false false false true true true true true true true false false false La Loma Senior Living Services Inc d 42028000 Actual Debt Sun Health Foundation c 4193740 Cash Banner Health b 13468048 Cash Banner Health p 3726974 Cash Sun Health Grandview Terrace LLP j 474099 Cash Sun Health Grandview Terrace LLP p 77000 Cash Sun Health Grandview Terrace LLP d 13021487 Actual Debt Sun Health Grandview Terrace LLP d 1504740 Actual Debt La Loma Senior Living Services Inc j 240092 In-kind La Loma Senior Living Services Inc d 4565470 Negotiated Sun Health Colonnade d 6065000 Actual Debt Sun Health Foundation b 1500000 Cash La Loma Senior Living Services Inc l 546977 Actual Incurred La Loma Senior Living Services Inc o 5709908 Actual Incurred Sun Health Colonnade l 116298 Actual Incurred Sun Health Colonnade o 1290873 Actual Incurred Sun Health Grandview Terrace LLP l 945351 Actual Incurred Sun Health Grandview Terrace LLP o 9059205 Actual Incurred V 1d In connection with Sun Health Services becoming sole member of La Loma Senior Living Services, Inc., Sun Health Services agreed to serve as a guarantor of the debt.