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      <Description>SPARROW HOSPITAL HAS, SINCE ITS INCEPTION IN 1896, PROVIDED CARE TO PEOPLE REGARDLESS OF THEIR RACE, CREED, SEX, NATIONAL ORIGIN, HANDICAP, AGE, OR ABILITY TO PAY. SPARROW IS A NON-PROFIT, COMMUNITY-GOVERNED HOSPITAL AND THE FLAGSHIP OF THE SPARROW HEALTH SYSTEM, A COMPREHENSIVE INTEGRATED HEALTH DELIVERY SYSTEM COMMITTED WITHIN ITS RESOURCES TO IMPROVING THE HEALTH STATUS OF ALL PEOPLE THROUGHOUT THE MID-MICHIGAN REGION BY PROVIDING QUALITY, COMPASSIONATE CARE TO EVERYONE, EVERY TIME. SPARROW HOSPITAL IS A 676-BED, MAJOR TEACHING HOSPITAL (AFFILIATED WITH MICHIGAN STATE UNIVERSITY'S COLLEGES OF OSTEOPATHIC MEDICINE, HUMAN MEDICINE AND NURSING) AND THE MOST COMPREHENSIVE, ACUTE CARE CENTER IN MID-MICHIGAN. SPARROW IS THE REGIONAL MEDICAL CENTER FOR: PEDIATRICS, CANCER CARE INCLUDING RADIATION THERAPY, TRAUMA CARE, NEUROLOGICAL CARE, HIGH-RISK OBSTETRICS, NEONATAL INTENSIVE CARE, BEHAVIORAL HEALTH, AND CARDIOVASCULAR SERVICES. SPARROW TREATED MORE THAN 33,000 INPATIENTS, HAD MORE THAN 1.2 MILLION OUTPATIENT ENCOUNTERS, AND PROVIDED SERVICES TO ABOUT 123,000 EMERGENCY MEDICINE PATIENTS IN 2011. TODAY'S SPARROW HEALTH SYSTEM BLENDS THE KNOWLEDGE AND EXPERTISE OF OVER 900 PHYSICIANS, 7,500 CAREGIVERS AND APPROXIMATELY 2,000 VOLUNTEERS WITH THE MOST ADVANCED TECHNOLOGY, SERVING AS A COMPREHENSIVE HEALTH SYSTEM FOR AN EIGHT-COUNTY POPULATION. IN ADDITION, MORE PEOPLE CHOOSE SPARROW FOR THEIR MATERNITY NEEDS (MORE THAN 4,100 DELIVERIES ANNUALLY), REHABILITATION, AND EMERGENCY TREATMENT THAN ANY OTHER HOSPITAL IN MID-MICHIGAN. SPARROW HEALTH SYSTEM'S REACH EXTENDS FAR BEYOND THE ACUTE CARE SETTING OF THE HOSPITAL. THERE ARE MANY WAYS OUR STAFF PROACTIVELY SUPPORTS THE COMMUNITY, ESPECIALLY THOSE WHO HAVE THE GREATEST NEED. BECAUSE OF SPARROW'S COMMITMENT, THE PEOPLE OF MID-MICHIGAN HAVE ACCESS TO THE FULL RANGE OF COMPREHENSIVE ACUTE CARE SERVICES AND THE LATEST MEDICAL ADVANCES WITHOUT TRAVELING GREAT DISTANCES. THESE SERVICES ARE AVAILABLE TO ALL MID-MICHIGAN RESIDENTS, REGARDLESS OF THEIR ABILITY TO PAY. PROVIDING ACCESS TO PRIMARY CARE - SPARROW RECOGNIZES THAT IF WE ARE TO ACHIEVE OUR VISION OF BEING A NATIONALLY RECOGNIZED LEADER IN QUALITY AND THE PATIENT EXPERIENCE, WE HAVE A RESPONSIBILITY TO TAKE THE LEAD IN FUNDAMENTALLY TRANSFORMING HEALTH CARE IN MICHIGAN. IN ORDER TO ADDRESS THE CHALLENGES OF INCREASING PREVALENCE OF CHRONIC DISEASE AND AN AGING POPULATION, TO IMPROVE THE QUALITY OF CARE AND THE PATIENT EXPERIENCE WHILE ALSO ENSURING GREATER AFFORDABILITY FOR PAYORS, SPARROW NEEDS TO IMPLEMENT PROFOUND CHANGES IN HOW CARE IS PROVIDED. SPARROW IS COMMITTED TO SEEKING NEW WAYS TO PARTNER WITH QUALITY CARE PROVIDERS TO CREATE GREATER ALIGNMENT AROUND IMPROVED QUALITY AND PATIENT EXPERIENCE, WORK JOINTLY TO DEVELOP CLINICAL GUIDELINES TO ENSURE THE HIGHEST QUALITY OF CARE FOR PATIENTS WHO NEED TO BE TRANSFERRED TO DIFFERENT LEVELS OF CARE AND TO ENSURE THAT CARE IS ALWAYS DELIVERED IN THE BEST QUALITY AND MOST COST-ADVANTAGEOUS CLINICAL SETTING AS CLOSE TO THE PATIENTS HOME AS POSSIBLE. SPARROW WAS SELECTED TO BECOME A MEMBER OF THE MAYO CLINIC CARE NETWORK (IN 2012), SOLIDIFYING OUR DEDICATION TO MEETING OUR PATIENTS HEALTHCARE NEEDS RIGHT HERE IN MID- MICHIGAN. SPARROW ALSO HOLDS AFFILIATIONS WITH SPARROW CLINTON MEMORIAL HOSPITAL, SPARROW IONIA HOSPITAL, CARSON CITY HOSPITAL, AND HAYES GREEN BEACH HOSPITAL EXTENDING OUR REACH THROUGHOUT THE REGION. SPARROW COMMUNITY CARE - A NON-PROFIT ENTITY COMPRISING THE FORMER SPARROW MEDICAL SUPPLY AND SPARROW HOME CARE UNITS WITH SPARROW LABORATORIES AND SPARROW PHARMACY PLUS ROUND OUT SPARROW HEALTH SYSTEM'S NETWORK OF FACILITIES AND PRIMARY CARE SERVICES. THEY ARE DESIGNED TO PROVIDE QUALITY, CONVENIENT, COST EFFECTIVE HEALTH CARE TO THE PEOPLE OF MID-MICHIGAN. EMERGENCY PREPAREDNESS - SPARROW HAS DISTINGUISHED ITSELF AS A RECOGNIZED LEADER IN EMERGENCY PREPAREDNESS. THE HOSPITAL VIEWS PREPAREDNESS AS AN ONGOING PROCESS LED BY A MULTIDISCIPLINARY TEAM THAT INVOLVES ALL ASPECTS OF HOSPITAL OPERATIONS, INCLUDING MEDICAL AND NON-MEDICAL SERVICES. DRILLS ARE CONDUCTED YEAR-ROUND IN COLLABORATION WITH LOCAL, STATE AND FEDERAL AGENCIES TO ENSURE SPARROW IS PREPARED FOR ANY DISASTER, WHETHER IT IS THE RESULT OF A TERRORIST ACT OR A NATURAL DISASTER. SPARROW'S EMERGENCY PREPAREDNESS COMMITTEE REGULARLY TESTS THE HOSPITAL'S RESPONSE SKILLS INDEPENDENT OF ANY AGENCY OR GOVERNING BODY. THE HOSPITAL ALSO WORKS WITH LOCAL GOVERNMENT AGENCIES, INCLUDING THE POLICE DEPARTMENT, FIRE DEPARTMENT AND PUBLIC HEALTH DEPARTMENT TO COORDINATE A PLANNED RESPONSE IN THE EVENT OF A TRUE EMERGENCY. SUPPORTING OUR COMMUNITY AND NEIGHBORHOODS - SPARROW IS THE UNQUESTIONED LEADER IN MID-MICHIGAN IN PROVIDING HEALTHCARE SERVICES AND PROMOTING HEALTH-RELATED ACTIVITIES. SPARROW PROVIDES FIRST-AID SERVICES AT MANY SPECIAL EVENTS INCLUDING MICHIGAN STATE UNIVERSITY FOOTBALL GAMES, LANSING LUGNUTS BASEBALL GAMES AND THE CITY OF LANSING'S ANNUAL COMMON GROUND MUSIC FESTIVAL. SPARROW ALSO SPONSORS DOZENS OF HEALTH-RELATED ACTIVITIES, INCLUDING THE ANNUAL LANSING WOMEN'S EXPO, HIKE FOR HOSPICE, THE FEELIN' GOOD MILEAGE CLUB FOR ELEMENTARY SCHOOLS AND FITKIDS. SPARROW ALSO HAS A PARTNERSHIP WITH THE NATION'S LARGEST AND MOST EXPERIENCED PROVIDER OF AIR AMBULANCE SERVICES, LIFENET OF MICHIGAN. LIFENET PROVIDES 24-HOUR AIR MEDICAL TRANSPORT SERVICE FOR IMPROVED ACCESS TO PATIENTS WHO NEED CRITICAL CARE. AS A TEACHING HOSPITAL, SPARROW HAS CONTINUED TO STRENGTHEN ITS AFFILIATION WITH MICHIGAN STATE UNIVERSITY THROUGH A JOINT INITIATIVE, THE CENTER FOR INNOVATION, BY SUPPORTING FELLOWSHIPS AND RECRUITING ESTABLISHED RESEARCHERS TO DEVELOP, TEST, IMPLEMENT AND EVALUATE INNOVATIVE APPROACHES IN HEALTHCARE. SPARROW HAS MANY OTHER LONGSTANDING ARRANGEMENTS WITH MSU'S COLLEGES OF HUMAN MEDICINE, OSTEOPATHIC MEDICINE AND NURSING. SPARROW WORKS WITH MSU TO FACILITATE THE RECRUITMENT, TRAINING AND RETENTION OF CURRENT AND FUTURE GENERATIONS OF PHYSICIANS AND NURSES. SPARROW IS THE CLINICAL CENTER FOR A MULTITUDE OF HEALTH EDUCATION PROGRAMS, INCLUDING GRADUATE MEDICAL RESIDENCY AND NURSING INTERNSHIPS. SPARROW ALSO SPONSORS DOZENS OF HEALTH SCREENING PROGRAMS, WHICH ARE FREE TO THE PUBLIC. FREE DIABETES TESTING, PROSTATE SCREENING, BREAST EXAMS AND BLOOD PRESSURE CHECKS ARE BUT A FEW OF THE MANY SUCH PROGRAMS SPARROW PROVIDES TO THE COMMUNITY. SPARROW ALSO PROVIDES MEETING FACILITIES FOR MANY HEALTH EDUCATION AND SUPPORT GROUPS. AS INDIVIDUAL VOLUNTEERS, AND AS AN ORGANIZATION, SPARROW HEALTH SYSTEM SUPPORTED MORE THAN 200 COMMUNITY ORGANIZATIONS WITH SPONSORSHIPS, IN-KIND SERVICES, AND/OR VOLUNTEER SERVICE. AS MID-MICHIGAN'S LEADING HEALTH CARE SYSTEM, SPARROW HAS A RESPONSIBILITY TO DELIVER QUALITY, COMPASSIONATE CARE TO ALL PEOPLE. AS THE LEADING REGIONAL PROVIDER OF UNCOMPENSATED AND CHARITY CARE IN 2011, SPARROW PROVIDED APPROXIMATELY 59.8 MILLION IN CHARITY, BAD DEBT AND COMMUNITY BENEFITS AND ABSORBED THE COST OF MORE THAN 8.2 MILLION IN MEDICARE AND MEDICAID UNDER-FUNDING. 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        <NamePerson>CANDY PARKER</NamePerson>
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      </Form990PartVIISectionA>
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        <NamePerson>MICHAEL CLARK MD</NamePerson>
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        <NameOfContractor>
          <NameBusiness>
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        <ManagementAndGeneral>244162</ManagementAndGeneral>
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        <ProgramServices>34311769</ProgramServices>
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        <Description>SUPPLIES</Description>
        <Total>128544080</Total>
        <ProgramServices>125246938</ProgramServices>
        <ManagementAndGeneral>3297142</ManagementAndGeneral>
      </OtherExpenses>
      <OtherExpenses>
        <Description>BAD DEBT</Description>
        <Total>64725113</Total>
        <ProgramServices>64725113</ProgramServices>
      </OtherExpenses>
      <OtherExpenses>
        <Description>RENT &amp; REPAIRS</Description>
        <Total>21801868</Total>
        <ProgramServices>12189967</ProgramServices>
        <ManagementAndGeneral>9611901</ManagementAndGeneral>
      </OtherExpenses>
      <OtherExpenses>
        <Description>TELEPHONE</Description>
        <Total>1943969</Total>
        <ProgramServices>309979</ProgramServices>
        <ManagementAndGeneral>1633990</ManagementAndGeneral>
      </OtherExpenses>
      <AllOtherExpenses>
        <Total>712482</Total>
        <ProgramServices>481898</ProgramServices>
        <ManagementAndGeneral>230584</ManagementAndGeneral>
      </AllOtherExpenses>
      <TotalFunctionalExpenses>
        <Total>782913552</Total>
        <ProgramServices>675777521</ProgramServices>
        <ManagementAndGeneral>107136031</ManagementAndGeneral>
        <Fundraising>0</Fundraising>
      </TotalFunctionalExpenses>
      <CashNonInterestBearing>
        <BOY>28422151</BOY>
        <EOY>41569638</EOY>
      </CashNonInterestBearing>
      <SavingsAndTempCashInvestments>
        <BOY>260215796</BOY>
        <EOY>284522856</EOY>
      </SavingsAndTempCashInvestments>
      <AccountsReceivable>
        <BOY>109491832</BOY>
        <EOY>99471442</EOY>
      </AccountsReceivable>
      <InventoriesForSaleOrUse>
        <BOY>16064955</BOY>
        <EOY>16312456</EOY>
      </InventoriesForSaleOrUse>
      <PrepaidExpensesDeferredCharges>
        <BOY>5689592</BOY>
        <EOY>10319442</EOY>
      </PrepaidExpensesDeferredCharges>
      <LandBuildingsEquipmentBasis>926428462</LandBuildingsEquipmentBasis>
      <LandBldgEquipmentAccumDeprec>538015055</LandBldgEquipmentAccumDeprec>
      <LandBuildingsEquipmentBasisNet>
        <BOY>397135917</BOY>
        <EOY>388413407</EOY>
      </LandBuildingsEquipmentBasisNet>
      <OtherAssetsTotal>
        <BOY>19305519</BOY>
        <EOY>44483360</EOY>
      </OtherAssetsTotal>
      <TotalAssets>
        <BOY>836325762</BOY>
        <EOY>885092601</EOY>
      </TotalAssets>
      <AccountsPayableAccruedExpenses>
        <BOY>70563075</BOY>
        <EOY>81194586</EOY>
      </AccountsPayableAccruedExpenses>
      <TaxExemptBondLiabilities>
        <BOY>228950000</BOY>
        <EOY>222890000</EOY>
      </TaxExemptBondLiabilities>
      <MortNotesPyblSecuredInvestProp>
        <BOY>8094610</BOY>
        <EOY>8326880</EOY>
      </MortNotesPyblSecuredInvestProp>
      <OtherLiabilities>
        <BOY>176786482</BOY>
        <EOY>215662728</EOY>
      </OtherLiabilities>
      <TotalLiabilities>
        <BOY>484394167</BOY>
        <EOY>528074194</EOY>
      </TotalLiabilities>
      <FollowSFAS117>X</FollowSFAS117>
      <UnrestrictedNetAssets>
        <BOY>351931595</BOY>
        <EOY>357018407</EOY>
      </UnrestrictedNetAssets>
      <TotalNetAssetsFundBalances>
        <BOY>351931595</BOY>
        <EOY>357018407</EOY>
      </TotalNetAssetsFundBalances>
      <TotalLiabNetAssetsFundBalances>
        <BOY>836325762</BOY>
        <EOY>885092601</EOY>
      </TotalLiabNetAssetsFundBalances>
      <InfoInScheduleOPartXI>X</InfoInScheduleOPartXI>
      <ReconcilationRevenueExpenses>39887806</ReconcilationRevenueExpenses>
      <ReconcilationOtherChanges>-34800994</ReconcilationOtherChanges>
      <MethodOfAccountingAccrual>X</MethodOfAccountingAccrual>
      <AccountantCompileOrReview>false</AccountantCompileOrReview>
      <FSAudited>true</FSAudited>
      <AuditCommittee>true</AuditCommittee>
      <FinancialStatementSeparate>X</FinancialStatementSeparate>
      <FederalGrantAuditRequired>false</FederalGrantAuditRequired>
    </IRS990>
    <IRS990ScheduleA documentId="RetDoc5">
      <Hospital170b1Aiii>X</Hospital170b1Aiii>
    </IRS990ScheduleA>
    <IRS990ScheduleB documentId="RetDoc1">
      <ContributorInfo>
        <ContributorNumber>RESTRICTED</ContributorNumber>
        <ContributorNameBusiness>
          <BusinessNameLine1>RESTRICTED</BusinessNameLine1>
        </ContributorNameBusiness>
        <ContributorAddressUS>
          <AddressLine1>RESTRICTED</AddressLine1>
          <AddressLine2>RESTRICTED</AddressLine2>
          <City>RESTRICTED</City>
          <State>RESTRICTED</State>
          <ZIPCode>RESTRICTED</ZIPCode>
        </ContributorAddressUS>
        <AggregateContributions>RESTRICTED</AggregateContributions>
      </ContributorInfo>
    </IRS990ScheduleB>
    <IRS990ScheduleC documentId="RetDoc6">
      <Form4720Filed4955Tax>false</Form4720Filed4955Tax>
      <CorrectionMade>false</CorrectionMade>
      <Form1120PolFiled>false</Form1120PolFiled>
      <Form4720Filed>false</Form4720Filed>
      <Volunteers>false</Volunteers>
      <PaidStaffOrManagement>true</PaidStaffOrManagement>
      <MediaAdvertisements>false</MediaAdvertisements>
      <MailingsMembers>false</MailingsMembers>
      <PublicationsOrBroadcast>false</PublicationsOrBroadcast>
      <GrantsOtherOrganizations>false</GrantsOtherOrganizations>
      <DirectContactLegislators>true</DirectContactLegislators>
      <DirectContactLegislatorsAmount>4913</DirectContactLegislatorsAmount>
      <RalliesDemonstrations>false</RalliesDemonstrations>
      <OtherActivities>false</OtherActivities>
      <TotalLobbyingExpendituresIIB>4913</TotalLobbyingExpendituresIIB>
      <NotDescribedIn501c3>false</NotDescribedIn501c3>
      <Form4720Filed4912Tax>false</Form4720Filed4912Tax>
      <SubstantiallyAllDuesNondeduct>false</SubstantiallyAllDuesNondeduct>
      <OnlyInHouseLobbying>false</OnlyInHouseLobbying>
      <AgreeToCarryoverPriorYear>false</AgreeToCarryoverPriorYear>
      <Form990ScheduleCPartIV>
        <Identifier>ADDITIONAL INFORMATION</Identifier>
        <ReturnReference>SCHEDULE C, PART IV</ReturnReference>
        <Explanation>SCHEDULE C, PART II-B, LINE 1G EMPLOYED GCSI TO REPRESENT THE ISSUES OF SPARROW HEALTH SYSTEM BEFORE PUBLIC OFFICIALS AND POLICY MAKERS IN THE STATE OF MICHIGAN.</Explanation>
      </Form990ScheduleCPartIV>
    </IRS990ScheduleC>
    <IRS990ScheduleD documentId="RetDoc7">
      <DisclosedOrgsLegalControl>false</DisclosedOrgsLegalControl>
      <DisclosedForCharitablePurposes>false</DisclosedForCharitablePurposes>
      <WrittenPolicyMonitoring>false</WrittenPolicyMonitoring>
      <Sect170hRequirementsSatisfied>false</Sect170hRequirementsSatisfied>
      <SolicitedAssetsForSale>false</SolicitedAssetsForSale>
      <AgentTrusteeEtc>false</AgentTrusteeEtc>
      <IncludedOnFS>false</IncludedOnFS>
      <CurrentYear>
        <BeginningOfYearBalance>1779759</BeginningOfYearBalance>
        <Contributions>796243</Contributions>
        <InvestmentEarningsOrLosses>97691</InvestmentEarningsOrLosses>
        <GrantsOrScholarships>30000</GrantsOrScholarships>
        <AdministrativeExpenses>1833</AdministrativeExpenses>
        <EndOfYearBalance>2641860</EndOfYearBalance>
      </CurrentYear>
      <CurrentYearMinus1Year>
        <BeginningOfYearBalance>1550687</BeginningOfYearBalance>
        <Contributions>163793</Contributions>
        <InvestmentEarningsOrLosses>65279</InvestmentEarningsOrLosses>
        <EndOfYearBalance>1779759</EndOfYearBalance>
      </CurrentYearMinus1Year>
      <CurrentYearMinus2Years>
        <BeginningOfYearBalance>1307182</BeginningOfYearBalance>
        <Contributions>134195</Contributions>
        <InvestmentEarningsOrLosses>109310</InvestmentEarningsOrLosses>
        <EndOfYearBalance>1550687</EndOfYearBalance>
      </CurrentYearMinus2Years>
      <PermanentEndowmentEOYBalance>1.00000</PermanentEndowmentEOYBalance>
      <EndowmentsHeldByUnrelatedOrgs>false</EndowmentsHeldByUnrelatedOrgs>
      <EndowmentsHeldByRelatedOrgs>true</EndowmentsHeldByRelatedOrgs>
      <AreRelatedOrgsListedScheduleR>true</AreRelatedOrgsListedScheduleR>
      <Land>
        <OtherCostOrOtherBasis>11663121</OtherCostOrOtherBasis>
        <BookValue>11663121</BookValue>
      </Land>
      <Buildings>
        <OtherCostOrOtherBasis>453553923</OtherCostOrOtherBasis>
        <Depreciation>177912555</Depreciation>
        <BookValue>275641368</BookValue>
      </Buildings>
      <LeaseholdImprovements>
        <OtherCostOrOtherBasis>12278307</OtherCostOrOtherBasis>
        <Depreciation>5345106</Depreciation>
        <BookValue>6933201</BookValue>
      </LeaseholdImprovements>
      <Equipment>
        <OtherCostOrOtherBasis>429397842</OtherCostOrOtherBasis>
        <Depreciation>354757394</Depreciation>
        <BookValue>74640448</BookValue>
      </Equipment>
      <OtherLandBuildings>
        <OtherCostOrOtherBasis>19535269</OtherCostOrOtherBasis>
        <BookValue>19535269</BookValue>
      </OtherLandBuildings>
      <TotalOfBookValueLandBuildings>388413407</TotalOfBookValueLandBuildings>
      <OtherAssets>
        <Description>OTHER ASSETS</Description>
        <BookValue>34618671</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>INVESTMENTS IN JOINT VENTURES</Description>
        <BookValue>6608302</BookValue>
      </OtherAssets>
      <OtherAssets>
        <Description>DEFERRED FINANCING COSTS</Description>
        <BookValue>3256387</BookValue>
      </OtherAssets>
      <TotalBookValueOtherAssets>44483360</TotalBookValueOtherAssets>
      <OtherLiabilities>
        <Description>UNFUNDED PENSION OBLIGATION</Description>
        <Amount>156695734</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>MEDICAL MALPRACTICE CLAIMS RESERVE</Description>
        <Amount>44951000</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>ASBESTOS ABATEMENT</Description>
        <Amount>4189405</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>PREMIUM ON 2007 BONDS</Description>
        <Amount>3855790</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>POST RETIREMENT BENEFITS PAYABLE</Description>
        <Amount>3464760</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>PREMIUM ON 2005 BONDS</Description>
        <Amount>2506039</Amount>
      </OtherLiabilities>
      <OtherLiabilities>
        <Description>PREMIUM ON 2001 BONDS</Description>
      </OtherLiabilities>
      <TotalOfAmounts>215662728</TotalOfAmounts>
      <Form990ScheduleDPartXIV>
        <Identifier>INTENDED USES FOR ENDOWMENT FUNDS</Identifier>
        <ReturnReference>SCHEDULE D, PAGE 2, PART V, LINE 4</ReturnReference>
        <Explanation>EDWARD W. SPARROW HOSPITAL DOES NOT HOLD ENDOWMENTS. THE ENDOWMENTS ARE HELD BY SPARROW FOUNDATION AND CLINTON MEMORIAL HOSPITAL. SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF EDWARD W. SPARROW HOSPITAL, CLINTON MEMORIAL HOSPITAL, AND SPARROW FOUNDATION. THE ENDOWMENTS ARE MAINTAINED TO PROVIDE A PERMANENT SOURCE OF INCOME WITH THE STIPULATION THE PRINCIPAL IS KEPT INTACT IN PERPETUITY AND THE INCOME GENERATED FROM INVESTMENTS OF THE ENDOWMENT FUNDS CAN BE USED FOR THE PURPOSE ESTABLISHED BY THE ENDOWMENT.</Explanation>
      </Form990ScheduleDPartXIV>
    </IRS990ScheduleD>
    <IRS990ScheduleH documentId="RetDoc9">
      <CharityCarePolicy>true</CharityCarePolicy>
      <WrittenPolicy>true</WrittenPolicy>
      <PolicyTailoredToIndHospitals>X</PolicyTailoredToIndHospitals>
      <FPGReferenceFreeCare>true</FPGReferenceFreeCare>
      <Pcent200>X</Pcent200>
      <FPGReferenceDiscountedCare>true</FPGReferenceDiscountedCare>
      <Pcent400>X</Pcent400>
      <FreeDiscCareMedicallyIndigent>true</FreeDiscCareMedicallyIndigent>
      <AmountsBudgetedForCharityCare>true</AmountsBudgetedForCharityCare>
      <ExpensesExceededBudget>true</ExpensesExceededBudget>
      <UnableToProvideCare>false</UnableToProvideCare>
      <AnnualCommunityBenefitReport>true</AnnualCommunityBenefitReport>
      <ReportPublicallyAvailable>true</ReportPublicallyAvailable>
      <CharityCareAtCost>
        <TotalCommunityBenefitExpense>11469297</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>374490</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>11094807</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.01420</PercentOfTotalExpense>
      </CharityCareAtCost>
      <UnreimbursedMedicaid>
        <TotalCommunityBenefitExpense>120560868</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>95943003</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>24617865</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.03140</PercentOfTotalExpense>
      </UnreimbursedMedicaid>
      <UnreimbursedCosts>
        <TotalCommunityBenefitExpense>2349272</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>1716960</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>632312</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00080</PercentOfTotalExpense>
      </UnreimbursedCosts>
      <TotalCharityCare>
        <TotalCommunityBenefitExpense>134379437</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>98034453</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>36344984</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.04640</PercentOfTotalExpense>
      </TotalCharityCare>
      <CommunityHealthServices>
        <TotalCommunityBenefitExpense>25574718</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>11548760</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>14025958</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.01790</PercentOfTotalExpense>
      </CommunityHealthServices>
      <SubsidizedHealthServices>
        <TotalCommunityBenefitExpense>3748656</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>2705844</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>1042812</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.00130</PercentOfTotalExpense>
      </SubsidizedHealthServices>
      <TotalOtherBenefits>
        <TotalCommunityBenefitExpense>29323374</TotalCommunityBenefitExpense>
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        <NetCommunityBenefitExpense>15068770</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.01920</PercentOfTotalExpense>
      </TotalOtherBenefits>
      <TotalCommunityBenefits>
        <TotalCommunityBenefitExpense>163702811</TotalCommunityBenefitExpense>
        <DirectOffsettingRevenue>112289057</DirectOffsettingRevenue>
        <NetCommunityBenefitExpense>51413754</NetCommunityBenefitExpense>
        <PercentOfTotalExpense>0.06570</PercentOfTotalExpense>
      </TotalCommunityBenefits>
      <EconomicDevelopment>
        <TotalCommunityBuildingExpense>2639</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>2639</NetCommunityBuildingExpense>
      </EconomicDevelopment>
      <CommunitySupport>
        <TotalCommunityBuildingExpense>1684</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>1684</NetCommunityBuildingExpense>
      </CommunitySupport>
      <EnvironmentalImprovements>
        <TotalCommunityBuildingExpense>1175</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>1175</NetCommunityBuildingExpense>
      </EnvironmentalImprovements>
      <CoalitionBuilding>
        <TotalCommunityBuildingExpense>16233</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>16233</NetCommunityBuildingExpense>
      </CoalitionBuilding>
      <HealthImprovementAdvocacy>
        <TotalCommunityBuildingExpense>10220</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>10220</NetCommunityBuildingExpense>
      </HealthImprovementAdvocacy>
      <Total>
        <TotalCommunityBuildingExpense>31951</TotalCommunityBuildingExpense>
        <NetCommunityBuildingExpense>31951</NetCommunityBuildingExpense>
      </Total>
      <BadDebtExpenseReported>true</BadDebtExpenseReported>
      <BadDebtExpenseAmount>19049701</BadDebtExpenseAmount>
      <AmountAttributableTo>1029128</AmountAttributableTo>
      <AmountReimbursedByMedicare>205404137</AmountReimbursedByMedicare>
      <CostOfCareReimbursedByMedicare>213617242</CostOfCareReimbursedByMedicare>
      <MedicareSurplusOrShortfall>-8213105</MedicareSurplusOrShortfall>
      <CostingMethodologyUsed>
        <CostToChargeRatio>X</CostToChargeRatio>
      </CostingMethodologyUsed>
      <WrittenDebtCollectionPolicy>true</WrittenDebtCollectionPolicy>
      <ProvisionForCharityCare>true</ProvisionForCharityCare>
      <Form990ScheduleHPartIV>
        <NameOfEntity>
          <BusinessNameLine1>LANSING MED DENTAL</BusinessNameLine1>
        </NameOfEntity>
        <DescriptionEntPrimaryActivity>MEDICAL BUILDING OWNERSHIP</DescriptionEntPrimaryActivity>
        <OrganizationProfitOrOwnership>0.63000</OrganizationProfitOrOwnership>
        <PhysicansProfitOrOwnership>0.37000</PhysicansProfitOrOwnership>
      </Form990ScheduleHPartIV>
      <Form990ScheduleHPartIV>
        <NameOfEntity>
          <BusinessNameLine1>MID-MI REG DIALYSIS</BusinessNameLine1>
        </NameOfEntity>
        <DescriptionEntPrimaryActivity>RENTAL ACTIVITIES</DescriptionEntPrimaryActivity>
        <OrganizationProfitOrOwnership>0.37000</OrganizationProfitOrOwnership>
        <PhysicansProfitOrOwnership>0.25000</PhysicansProfitOrOwnership>
      </Form990ScheduleHPartIV>
      <NumberOfHospitalFacilities>2</NumberOfHospitalFacilities>
      <Form990ScheduleHPartVSectionA>
        <FacilityNumber>1</FacilityNumber>
        <Name>
          <BusinessNameLine1>EDWARD W SPARROW HOSPITAL</BusinessNameLine1>
          <BusinessNameLine2>MAIN CAMPUS</BusinessNameLine2>
        </Name>
        <Address>
          <AddressLine1>1215 E MICHIGAN AVE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <GeneralMedicalAndSurgical>X</GeneralMedicalAndSurgical>
        <TeachingHospital>X</TeachingHospital>
        <Er24Hours>X</Er24Hours>
        <ErOther>X</ErOther>
        <Other>URGENT CARE</Other>
      </Form990ScheduleHPartVSectionA>
      <Form990ScheduleHPartVSectionA>
        <FacilityNumber>2</FacilityNumber>
        <Name>
          <BusinessNameLine1>EDWARD W SPARROW HOSPITAL</BusinessNameLine1>
          <BusinessNameLine2>ST LAWRENCE CAMPUS</BusinessNameLine2>
        </Name>
        <Address>
          <AddressLine1>1210 W SAGINAW</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48915</ZIPCode>
        </Address>
        <LicensedHospital>X</LicensedHospital>
        <TeachingHospital>X</TeachingHospital>
        <Er24Hours>X</Er24Hours>
        <Other>BEHAVIORAL HLTH HOSPICE SR SVC</Other>
      </Form990ScheduleHPartVSectionA>
      <Form990ScheduleHPartVSectionB>
        <HospitalFacilityName>
          <BusinessNameLine1>EDWARD W SPARROW HOSPITAL</BusinessNameLine1>
        </HospitalFacilityName>
        <HospitalFacilityNumber>1</HospitalFacilityNumber>
        <EligibilityCriteriaExplained>true</EligibilityCriteriaExplained>
        <UsesFPGFree>true</UsesFPGFree>
        <FPGFreePercent>200.0</FPGFreePercent>
        <UsesFPGDiscounted>true</UsesFPGDiscounted>
        <FPGDiscountPercent>400.0</FPGDiscountPercent>
        <ExplainsBasis>true</ExplainsBasis>
        <IncomeLevel>X</IncomeLevel>
        <MedicalIndigency>X</MedicalIndigency>
        <InsuranceStatus>X</InsuranceStatus>
        <UninsuredDiscount>X</UninsuredDiscount>
        <ExplainsApplicationMethod>true</ExplainsApplicationMethod>
        <IncludesPublicityMeasures>true</IncludesPublicityMeasures>
        <PostedOnWebsite>X</PostedOnWebsite>
        <ProvidedOnAdmission>X</ProvidedOnAdmission>
        <AvailableOnRequest>X</AvailableOnRequest>
        <ActionsOnNonpayment>true</ActionsOnNonpayment>
        <CollectionActivities>false</CollectionActivities>
        <NotifyUponAdmission>X</NotifyUponAdmission>
        <NotifyBeforeDischarge>X</NotifyBeforeDischarge>
        <NotifiedAllPatients>X</NotifiedAllPatients>
        <DocumentedDetermination>X</DocumentedDetermination>
        <NondiscrimEmergencyCarePolicy>true</NondiscrimEmergencyCarePolicy>
        <UsedOtherMethod>X</UsedOtherMethod>
        <AmountsGenerallyBilled>false</AmountsGenerallyBilled>
        <GrossCharges>true</GrossCharges>
      </Form990ScheduleHPartVSectionB>
      <Form990ScheduleHPartVSectionB>
        <HospitalFacilityName>
          <BusinessNameLine1>EDWARD W SPARROW HOSPITAL</BusinessNameLine1>
        </HospitalFacilityName>
        <HospitalFacilityNumber>2</HospitalFacilityNumber>
        <EligibilityCriteriaExplained>true</EligibilityCriteriaExplained>
        <UsesFPGFree>true</UsesFPGFree>
        <FPGFreePercent>200.0</FPGFreePercent>
        <UsesFPGDiscounted>true</UsesFPGDiscounted>
        <FPGDiscountPercent>400.0</FPGDiscountPercent>
        <ExplainsBasis>true</ExplainsBasis>
        <IncomeLevel>X</IncomeLevel>
        <MedicalIndigency>X</MedicalIndigency>
        <InsuranceStatus>X</InsuranceStatus>
        <UninsuredDiscount>X</UninsuredDiscount>
        <ExplainsApplicationMethod>true</ExplainsApplicationMethod>
        <IncludesPublicityMeasures>true</IncludesPublicityMeasures>
        <PostedOnWebsite>X</PostedOnWebsite>
        <ProvidedOnAdmission>X</ProvidedOnAdmission>
        <AvailableOnRequest>X</AvailableOnRequest>
        <ActionsOnNonpayment>true</ActionsOnNonpayment>
        <CollectionActivities>false</CollectionActivities>
        <NotifyUponAdmission>X</NotifyUponAdmission>
        <NotifyBeforeDischarge>X</NotifyBeforeDischarge>
        <NotifiedAllPatients>X</NotifiedAllPatients>
        <DocumentedDetermination>X</DocumentedDetermination>
        <NondiscrimEmergencyCarePolicy>true</NondiscrimEmergencyCarePolicy>
        <UsedOtherMethod>X</UsedOtherMethod>
        <AmountsGenerallyBilled>false</AmountsGenerallyBilled>
        <GrossCharges>true</GrossCharges>
      </Form990ScheduleHPartVSectionB>
      <Form990ScheduleHPartVSectionC>
        <NumberOfOtherFacilities>27</NumberOfOtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH MEDICAL ARTS BUILDING</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1322 E MICHIGAN</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>OCC HEALTH WOUND CLINIC OB/GYN</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW PROF BUILDING</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1200 E MICHIGAN AVE</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>CLINICS PHARMACY REHAB</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH MED CENTER WEST</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1100 W SAGINAW</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>PHARMACY PLUS OB/GYN CLINIC</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH MASON COMMUNITY CENTER</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>800 E COLUMBIA</AddressLine1>
            <City>MASON</City>
            <State>MI</State>
            <ZIPCode>48854</ZIPCode>
          </Address>
          <FacilityType>URGENT CARE/FAMILY PRACTICE/RADIOLOGY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH LANSING OBGYN</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1600 W GRAND RIVER</AddressLine1>
            <City>OKEMOS</City>
            <State>MI</State>
            <ZIPCode>48864</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE OB/GYN LAB RADIOLOGY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REG LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>2035 ASHER CT STE 200</AddressLine1>
            <City>EAST LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SMG NORTH</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>2035 ASHER CT STE 200</AddressLine1>
            <City>EAST LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE PHYSICAL THERAPY RADIOLO</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH OP REHAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1288 W GRAND RIVER</AddressLine1>
            <City>WILLIAMSTON</City>
            <State>MI</State>
            <ZIPCode>48895</ZIPCode>
          </Address>
          <FacilityType>PHYSICAL THERAPY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SMG MASON</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>230 TEMPLE ST STE 3</AddressLine1>
            <City>MASON</City>
            <State>MI</State>
            <ZIPCode>48854</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SMG WEST</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>7335 WESTSHIRE DR STE 10</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48912</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REGIONAL LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>11615 HARTEL</AddressLine1>
            <City>GRAND LEDGE</City>
            <State>MI</State>
            <ZIPCode>48837</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SMG POTTERVILLE</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>113 E LANSING RD</AddressLine1>
            <City>POTTERVILLE</City>
            <State>MI</State>
            <ZIPCode>48876</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH RAMBLEWOOD IMG CENTER</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1575 RAMBLEWOOD DR</AddressLine1>
            <City>EAST LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>RADIOLOGY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REGIONAL LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>2199 JOLLY ROAD STE 120</AddressLine1>
            <City>OKEMOS</City>
            <State>MI</State>
            <ZIPCode>48864</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REGIONAL LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1650 RAMBLEWOOD DR</AddressLine1>
            <City>EAST LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH OKEMOS URGENT CARE</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>2248 MOUNT HOPE</AddressLine1>
            <City>OKEMOS</City>
            <State>MI</State>
            <ZIPCode>48864</ZIPCode>
          </Address>
          <FacilityType>URGENT CARE</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REGIONAL LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>6254 W SAGINAW</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48912</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW REGIONAL LAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>6030 S PENNSYLVANIA</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48913</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>11653 HARTEL STE 1000</AddressLine1>
            <City>GRAND LEDGE</City>
            <State>MI</State>
            <ZIPCode>48837</ZIPCode>
          </Address>
          <FacilityType>PHYSICAL THERAPY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH OUTPATIENT REHAB</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>13105 SCHAVEY ROAD</AddressLine1>
            <City>DEWITT</City>
            <State>MI</State>
            <ZIPCode>48820</ZIPCode>
          </Address>
          <FacilityType>PHYSICAL THERAPY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>SOUTHPOINT MALL STE A14-A17</AddressLine1>
            <City>ST JOHNS</City>
            <State>MI</State>
            <ZIPCode>48879</ZIPCode>
          </Address>
          <FacilityType>PHYSICAL THERAPY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SMG DEWITT</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>13191 SCHAVEY RD</AddressLine1>
            <City>DEWITT</City>
            <State>MI</State>
            <ZIPCode>48820</ZIPCode>
          </Address>
          <FacilityType>FAMILY PRACTICE LAB RADIOLOGY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>138 SERVICE ROAD</AddressLine1>
            <City>EAST LANSING</City>
            <State>MI</State>
            <ZIPCode>48823</ZIPCode>
          </Address>
          <FacilityType>LABORATORY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW PHARMACY PLUS</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>129 S PUTNAM</AddressLine1>
            <City>WILLIAMSTON</City>
            <State>MI</State>
            <ZIPCode>48895</ZIPCode>
          </Address>
          <FacilityType>PHARMACY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW PHARMACY PLUS</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>508 S CLINTON</AddressLine1>
            <City>GRAND LEDGE</City>
            <State>MI</State>
            <ZIPCode>48837</ZIPCode>
          </Address>
          <FacilityType>PHARMACY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW PHARMACY PLUS</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>915 E MICHIGAN</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48912</ZIPCode>
          </Address>
          <FacilityType>PHARMACY</FacilityType>
        </OtherFacilities>
        <OtherFacilities>
          <Name>
            <BusinessNameLine1>EWSH SPARROW PHARMACY PLUS</BusinessNameLine1>
          </Name>
          <Address>
            <AddressLine1>1200 E MICHIGAN STE 310</AddressLine1>
            <City>LANSING</City>
            <State>MI</State>
            <ZIPCode>48912</ZIPCode>
          </Address>
          <FacilityType>PHARMACY</FacilityType>
        </OtherFacilities>
      </Form990ScheduleHPartVSectionC>
      <Form990ScheduleHPartVI>
        <Identifier>COMMUNITY BUILDING ACTIVITIES</Identifier>
        <ReturnReference>PART II</ReturnReference>
        <Explanation>SPARROW HEALTH SYSTEMS REACH EXTENDS FAR BEYOND THE ACUTE CARE SETTING OF THE HOSPITAL THERE ARE MANY WAYS OUR STAFF PROACTIVELY SUPPORTS THE COMMUNITY ESPECIALLY THOSE WHO HAVE THE GREATEST NEED WHETHER THROUGH CHARITABLE CARE SUBSIDIZED HOSPITAL PROGRAMS AND SERVICES MEDICAL EDUCATION OR COMMUNITY HEALTH EDUCATION SPARROW STRIVES TO RESPOND TO THE REGIONS MOST PRESSING HEALTH NEEDS FOR MORE THAN 114 YEARS SPARROW HAS BEEN DISTINGUISHED BY ITS PASSIONATE COMMITMENT TO CARE FOR ALL REGARDLESS OF THEIR ABILITY TO PAY FINANCIAL ASSISTANCE IS AVAILABLE TO PATIENTS WHO MEET CERTAIN QUALIFICATIONS SPARROW ALSO PROVIDES SUBSIDIZED HEALTH SERVICES THESE ARE SERVICES THAT ARE OFFERED DESPITE FINANCIAL LOSS BECAUSE THE COMMUNITY NEEDS THEM BECAUSE OTHER PROVIDERS ARE NOT WILLING TO OFFER THEM OR BECAUSE THE SERVICES WOULD OTHERWISE NOT BE ABLE TO MEET PATIENT DEMAND THESE SERVICES INCLUDE HOSPICE AND PALLIATIVE CARE MENTAL HEALTH SERVICES SUBSTANCE ABUSE SERVICES NEONATAL INTENSIVE CARE OBSTETRICS REHABILITATION EMERGENCY AND TRAUMA SERVICES GERIATRICS CLINICS AND PEDIATRIC CLINICS</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>BAD DEBT EXPENSE EXPLANATION</Identifier>
        <ReturnReference>PART III LINE 4</ReturnReference>
        <Explanation>THE PROVISION FOR BAD DEBTS IS BASED UPON MANAGEMENTS ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND ECONOMIC CONDITIONS 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 WRITEOFF EXPERIENCE AND CURRENT MARKET CONDITIONS THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR BAD DEBTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE RECEIVABLES AFTER SATISFACTION OF AMOUNTS DUE FROM INSURANCE THE HEALTH SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PAST DUE PATIENT BALANCES WITH COLLECTION AGENCIES THE COST TO CHARGE RATIO IS USED IN DETERMINING BAD DEBT INFORMATION</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>MEDICARE EXPLANATION</Identifier>
        <ReturnReference>PART III LINE 8</ReturnReference>
        <Explanation>THE COST TO CHARGE RATIO IS USED</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>COLLECTION PRACTICES EXPLANATION</Identifier>
        <ReturnReference>PART III LINE 9B</ReturnReference>
        <Explanation>PATIENTS WHO QUALIFY FOR CHARITY CARE OR FINANCIAL ASSISTANCE ARE SECLUDED FROM THE COLLECTION PROCESS AND THE CHARITY CARE POLICY IS FOLLOWED</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>NEEDS ASSESSMENT</Identifier>
        <ReturnReference>PART VI</ReturnReference>
        <Explanation>THROUGH CONTINUAL ANALYSIS OF OUR ANNUAL CASE MIX AND COLLABORATION WITH COMMUNITY PARTNERS SPARROW IS ABLE TO MAKE ACCURATE ASSESSMENTS OF THE HEALTH CARE NEEDS OF THE REGION IT SERVES FOR EXAMPLE OUR REGIONAL COLLABORATION OF AREA HEALTH PARTNERS WHICH INCLUDES SPARROW MICHIGAN STATE UNIVERSITY INGHAM REGIONAL MEDICAL CENTER LANSING COMMUNITY COLLEGE THE MICHIGAN STATE AND INGHAM COUNTY MEDICAL SOCIETIES THE INGHAM COUNTY HEALTH DEPARTMENT THE LANSING SCHOOL DISTRICT THE ACCIDENT FUND THE CAPITAL AREA HEALTH ALLIANCE AND OTHER ORGANIZATIONS RECENTLY ADOPTED A NEW GOAL OF DEVELOPING THE HEALTH PLAN CHAPTER FOR THE GREATER LANSING NEXT INITIATIVE ASSESSING THE REGIONS HEALTH CARE NEEDS IS A KEY COMPONENT OF THIS STRATEGIC PLAN WHICH IS FOCUSED ON ECONOMIC DEVELOPMENT FOR THE REGION</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>PATIENT EDUCATION OF ELIGIBILITY FOR ASSISTANCE</Identifier>
        <ReturnReference>PART VI</ReturnReference>
        <Explanation>SPARROW HOSPITAL EMPLOYS SEVERAL METHODS TO COMMUNICATE ELIGIBILITY FOR ASSISTANCE TO PATIENTS ALL UNINSURED INPATIENTS ARE DIRECTLY SCREENED FOR POTENTIAL MEDICAID ELIGIBILITY AND ANY OTHER GOVERNMENT PROGRAMS COBRA BENEFITS ETC SIGNAGE IS POSTED IN OUR PATIENT REGISTRATION AREAS REGARDING AVAILABILITY OF SPARROW COMMUNITY FINANCIAL AID CFA PROGRAM CHARITY CARE ALL PATIENT BILLING STATEMENTS HAVE A NOTE REGARDING THE CFA PROGRAM AND OUR WEBSITE CONTAINS LINKS TO OUR CFA POLICY AND APPLICATION</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>COMMUNITY INFORMATION</Identifier>
        <ReturnReference>PART VI</ReturnReference>
        <Explanation>SPARROW SERVES THE MIDMICHIGAN REGION WHICH CONSISTS OF THE GREATER LANSING AREA A POPULATION OF APPROXIMATELY 450000 STRATEGICALLY LOCATED IN THE HEART OF MICHIGAN SPARROW IS LOCATED WITHIN 90 MINUTES OF 90 PERCENT OF THE STATES POPULATION OF APPROXIMATELY 10 MILLION PEOPLE THE STATE CAPITAL MICHIGAN STATE UNIVERSITY AND TWO GENERAL MOTORS ASSEMBLY FACILITIES MAKE THE LANSING REGION AMONG THE MOST STABLE AND DIVERSE ECONOMIES IN MICHIGAN THE REGION IS EVOLVING AS A LEADING ECONOMIC FORCE IN RESEARCH AND DEVELOPMENT WAREHOUSING AND DISTRIBUTION INFORMATION TECHNOLOGY BIOTECHNOLOGY HEALTHCARE INSURANCE AND FINANCIAL SERVICES</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>HEALTH OF COMMUNITY IN RELATION TO EXEMPT PURPOSE</Identifier>
        <ReturnReference>PART VI</ReturnReference>
        <Explanation>AS NOTED ABOVE THE ORGANIZATIONS COMMUNITY BUILDING ACTIVITIES PROMOTE THE HEALTH OF THE COMMUNITIES THE ORGANIZATION SERVES THESE SERVICES ARE PROVIDED UNDER THE MISSION OF THE ORGANIZATION IMPROVING THE HEALTH OF THE PEOPLE IN OUR COMMUNITIES BY PROVIDING QUALITY COMPASSIONATE CARE TO EVERYONE EVERY TIME</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>AFFILIATED HEALTH CARE INFORMATION</Identifier>
        <ReturnReference>PART VI</ReturnReference>
        <Explanation>EDWARD W SPARROW HOSPITAL IS A WHOLLYOWNED SUBSIDIARY OF SPARROW HEALTH SYSTEM SPARROW HEALTH SYSTEM IS A NONPROFIT COMMUNITY GOVERNED INTEGRATED HEALTH DELIVERY AND FINANCING SYSTEM SERVING MIDMICHIGAN SPARROW HEALTH SYSTEM PROVIDES SERVICES TO THE COMMUNITIES IT SERVES THROUGH ITS WHOLLY OWNED AND CONTROLLED SUBSIDIARIES PHYSICIAN HEALTH PLAN PHYSICIAN HEALTH NETWORK EDWARD W SPARROW HOSPITAL CLINTON MEMORIAL HOSPITAL SPARROW SPECIALTY HOSPITAL SPARROW DEVELOPMENT INC SPARROW COMMUNITY CARE IONIA COUNTY MEMORIAL HOSPITAL AND SPARROW FOUNDATION</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>EDWARD W SPARROW HOSPITAL LINE NUMBER 1 PART V LINE 19D</Identifier>
        <ReturnReference>PART V LINE 19D</ReturnReference>
        <Explanation>ALL PATIENTS AND INSURANCES ARE CHARGED THE SAME GROSS CHARGE FROM OUR FEE SCHEDULE DISCOUNTS ARE THEN PROVIDED TO UNINSURED PATIENTS BASED ON OUR FINANCIAL ASSISTANCE POLICY ANDOR INDIVIDUAL CIRCUMSTANCES</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>EDWARD W SPARROW HOSPITAL LINE NUMBER 1 PART V LINE 21</Identifier>
        <ReturnReference>PART V LINE 21</ReturnReference>
        <Explanation>ALL PATIENTS AND INSURANCES ARE CHARGED THE SAME GROSS CHARGE FROM OUR FEE SCHEDULE DISCOUNTS ARE THEN PROVIDED TO UNINSURED PATIENTS BASED ON OUR FINANCIAL ASSISTANCE POLICY ANDOR INDIVIDUAL CIRCUMSTANCES</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>EDWARD W SPARROW HOSPITAL LINE NUMBER 2 PART V LINE 19D</Identifier>
        <ReturnReference>PART V LINE 19D</ReturnReference>
        <Explanation>ALL PATIENTS AND INSURANCES ARE CHARGED THE SAME GROSS CHARGE FROM OUR FEE SCHEDULE DISCOUNTS ARE THEN PROVIDED TO UNINSURED PATIENTS BASED ON OUR FINANCIAL ASSISTANCE POLICY ANDOR INDIVIDUAL CIRCUMSTANCES</Explanation>
      </Form990ScheduleHPartVI>
      <Form990ScheduleHPartVI>
        <Identifier>EDWARD W SPARROW HOSPITAL LINE NUMBER 2 PART V LINE 21</Identifier>
        <ReturnReference>PART V LINE 21</ReturnReference>
        <Explanation>ALL PATIENTS ARE INSURANCES ARE CHARGED THE SAME GROSS CHARGE FROM OUR FEE SCHEDULE DISCOUNTS ARE THEN PROVIDED TO UNINSURED PATIENTS BASED ON OUR FINANCIAL ASSISTANCE POLICY ANDOR INDIVIDUAL CIRCUMSTANCES</Explanation>
      </Form990ScheduleHPartVI>
    </IRS990ScheduleH>
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        <NamePerson>LARRY RAWSTHORNE MD</NamePerson>
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        <NamePerson>ELIZABETH HENRY</NamePerson>
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        <NamePerson>THOMAS OSTRANDER</NamePerson>
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      <Form990ScheduleJPartII>
        <NamePerson>DAVE KRUGER</NamePerson>
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        <NamePerson>PETER GRAHAM MD</NamePerson>
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        <BonusFilingOrg>18340</BonusFilingOrg>
        <OtherCompensationFilingOrg>7393</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>4189</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>387</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>289082</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>CAROL DWYER</NamePerson>
        <BaseCompensationFilingOrg>239240</BaseCompensationFilingOrg>
        <BonusFilingOrg>15015</BonusFilingOrg>
        <OtherCompensationFilingOrg>970</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14041</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>6408</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>275674</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>IRA GINSBURG</NamePerson>
        <BaseCompensationFilingOrg>198909</BaseCompensationFilingOrg>
        <BonusFilingOrg>26400</BonusFilingOrg>
        <OtherCompensationFilingOrg>3643</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>16942</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>14009</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>259903</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>LARRY WILHITE</NamePerson>
        <BaseCompensationFilingOrg>213116</BaseCompensationFilingOrg>
        <BonusFilingOrg>14036</BonusFilingOrg>
        <OtherCompensationFilingOrg>1416</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>16914</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>6868</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>252350</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>STELLA CASH</NamePerson>
        <BaseCompensationFilingOrg>211748</BaseCompensationFilingOrg>
        <BonusFilingOrg>12864</BonusFilingOrg>
        <OtherCompensationFilingOrg>3050</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>7117</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>1244</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>236023</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>RICHARD FELLOWS</NamePerson>
        <BaseCompensationFilingOrg>164877</BaseCompensationFilingOrg>
        <BonusFilingOrg>21496</BonusFilingOrg>
        <OtherCompensationFilingOrg>599</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>13836</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>6484</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>207292</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>ANDREA KOSLOSKI</NamePerson>
        <BaseCompensationFilingOrg>167203</BaseCompensationFilingOrg>
        <BonusFilingOrg>15344</BonusFilingOrg>
        <OtherCompensationFilingOrg>1486</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>10674</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>16005</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>210712</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>JOEL COHN MD</NamePerson>
        <BaseCompensationFilingOrg>711675</BaseCompensationFilingOrg>
        <BonusFilingOrg>35218</BonusFilingOrg>
        <OtherCompensationFilingOrg>840</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>16158</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>778591</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DARYL MELVIN MD</NamePerson>
        <BaseCompensationFilingOrg>701254</BaseCompensationFilingOrg>
        <BonusFilingOrg>35218</BonusFilingOrg>
        <OtherCompensationFilingOrg>2369</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>17824</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>771365</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>TODD HICKOX DO</NamePerson>
        <BaseCompensationFilingOrg>701254</BaseCompensationFilingOrg>
        <BonusFilingOrg>35218</BonusFilingOrg>
        <OtherCompensationFilingOrg>1680</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>17824</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>770676</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>CHRISTOPHER D'HAEM DO</NamePerson>
        <BaseCompensationFilingOrg>694802</BaseCompensationFilingOrg>
        <BonusFilingOrg>34491</BonusFilingOrg>
        <OtherCompensationFilingOrg>1080</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>15857</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>760930</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>KIRK LAMAN DO</NamePerson>
        <BaseCompensationFilingOrg>671111</BaseCompensationFilingOrg>
        <BonusFilingOrg>32310</BonusFilingOrg>
        <OtherCompensationFilingOrg>2435</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>14700</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>16158</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>736714</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>STEPHEN GUERTIN MD</NamePerson>
        <BaseCompensationFilingOrg>368536</BaseCompensationFilingOrg>
        <OtherCompensationFilingOrg>3318</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>27517</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>14339</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>413710</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>GARY REETZ</NamePerson>
        <BaseCompensationFilingOrg>189087</BaseCompensationFilingOrg>
        <BonusFilingOrg>16499</BonusFilingOrg>
        <OtherCompensationFilingOrg>1703</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>15339</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>1201</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>223829</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>DAWN SPRINGER MD</NamePerson>
        <BaseCompensationFilingOrg>163703</BaseCompensationFilingOrg>
        <BonusFilingOrg>15000</BonusFilingOrg>
        <OtherCompensationFilingOrg>3720</OtherCompensationFilingOrg>
        <DeferredCompFilingOrg>13499</DeferredCompFilingOrg>
        <NontaxableBenefitsFilingOrg>750</NontaxableBenefitsFilingOrg>
        <TotalCompensationFilingOrg>196672</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartII>
        <NamePerson>MIKE WALL</NamePerson>
        <BaseCompensationFilingOrg>7958</BaseCompensationFilingOrg>
        <TotalCompensationFilingOrg>7958</TotalCompensationFilingOrg>
      </Form990ScheduleJPartII>
      <Form990ScheduleJPartIII>
        <Identifier>FRINGE OR EXPENSE EXPLANATION</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 1A</ReturnReference>
        <Explanation>PRESIDENT/CEO DENNIS SWAN RECEIVED A LIFE INSURANCE GROSS-UP PAYMENT OF 10,342. CERTAIN BOARD MEMBERS' AND EXECUTIVES' MICHIGAN ATHLETIC CLUB DUES ARE PAID BY EDWARD W. SPARROW HOSPITAL. THESE AMOUNTS ARE CONSIDERED TAXABLE COMPENSATION.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 4</ReturnReference>
        <Explanation>MIKE WALL 14,400 0 0</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>COMPENSATION CONTINGENT UPON REVENUES OF ORGANIZATION</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 5A</ReturnReference>
        <Explanation>THE 2011 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2011 AND WILL BE PAID IN 2012. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM, WHICH INCLUDES EDWARD W. SPARROW HOSPITAL AS WELL AS AFFILIATED COMPANIES.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>COMPENSATION CONTINGENT UPON REVENUES OF RELATED ORG</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 5B</ReturnReference>
        <Explanation>THE 2011 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2011 AND WILL BE PAID IN 2012. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM, WHICH INCLUDES EDWARD W. SPARROW HOSPITAL AS WELL AS AFFILIATED COMPANIES.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>COMPENSATION CONTINGENT UPON NET EARNINGS OF ORGANIZATION</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 6A</ReturnReference>
        <Explanation>THE 2011 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2011 AND WILL BE PAID IN 2012. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM, WHICH INCLUDES EDWARD W. SPARROW HOSPITAL AS WELL AS AFFILIATED COMPANIES.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>COMPENSATION CONTINGENT UPON NET EARNINGS OF RELATED ORG</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 6B</ReturnReference>
        <Explanation>THE 2011 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2011 AND WILL BE PAID IN 2012. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM, WHICH INCLUDES EDWARD W. SPARROW HOSPITAL AS WELL AS AFFILIATED COMPANIES.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>NON-FIXED PAYMENTS PROVIDED</Identifier>
        <ReturnReference>SCHEDULE J, PAGE 1, PART I, LINE 7</ReturnReference>
        <Explanation>COMPENSATION INCLUDES BOTH BASE AND VARIABLE COMPENSATION (NON-FIXED PAYMENTS). IN ACCORDANCE WITH ITS POLICIES, ALL ELEMENTS (BASE, VARIABLE, BENEFITS AND PERQUISITES) ARE COMPARED TO MARKET.</Explanation>
      </Form990ScheduleJPartIII>
      <Form990ScheduleJPartIII>
        <Identifier>OTHER ADDITIONAL INFORMATION</Identifier>
        <ReturnReference>SCHEDULE J, PART III</ReturnReference>
        <Explanation>SCHEDULE J, PART I, LINE 4A: MIKE WALL AND EDWARD W. SPARROW HOSPITAL REACHED A SEPARATION AGREEMENT IN 2010. THE PAYMENTS REFERENCED ON FORM 990 PART VII, SECTION A, LINE 1A REFLECT THE TERMS OF THIS AGREEMENTS. GARY REETZ IS A FORMER OFFICER AND STEPHEN GUERTIN AND DAWN SPRINGER ARE FORMER BOARD MEMBERS OF EDWARD W. SPARROW HOSPITAL. THESE FORMER OFFICER AND BOARD MEMBERS ARE BEING COMPENSATED BY SPARROW HEALTH SYSTEM AND AFFILIATES FOR SERVICES PROVIDED TO SPARROW HEALTH SYSTEM AND AFFILIATES IN POSITIONS OTHER THAN OFFICER OR BOARD MEMBER. THE FORMER OFFICER AND BOARD MEMBERS ARE NOT BEING COMPENSATED FOR ANY PAST SERVICES PROVIDED TO EDWARD W. SPARROW HOSPITAL AS FORMER OFFICER OR BOARD MEMBERS.</Explanation>
      </Form990ScheduleJPartIII>
    </IRS990ScheduleJ>
    <IRS990ScheduleK documentId="RetDoc11">
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>MICHIGAN STATE HOSPITAL FINANCE AUT</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>382889417</IssuerEIN>
        <CUSIPNumber>59465HAC0</CUSIPNumber>
        <DateIssued>2005-04-26</DateIssued>
        <IssuePrice>92941319</IssuePrice>
        <DescriptionOfPurpose>10-STRY ADD. TO HOSP.</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartI>
        <IssuerName>
          <BusinessNameLine1>MICHIGAN STATE HOSPITAL FINANCE AUT</BusinessNameLine1>
        </IssuerName>
        <IssuerEIN>382889417</IssuerEIN>
        <CUSIPNumber>59465HEQ5</CUSIPNumber>
        <DateIssued>2007-04-01</DateIssued>
        <IssuePrice>140209630</IssuePrice>
        <DescriptionOfPurpose>FINISH 10-STRY ADD.</DescriptionOfPurpose>
        <Defeased>false</Defeased>
        <OnBehalfOfIssuer>false</OnBehalfOfIssuer>
        <PoolFinancing>false</PoolFinancing>
      </Form990ScheduleKPartI>
      <Form990ScheduleKPartII>
        <TotalProceeds>92941319</TotalProceeds>
        <RefundingEscrow>40072062</RefundingEscrow>
        <IssuanceCostsFromProceeds>2868252</IssuanceCostsFromProceeds>
        <CapitalExpenditures>50001005</CapitalExpenditures>
        <YearOfSubstCompletion>2006</YearOfSubstCompletion>
        <CurrentRefunding>true</CurrentRefunding>
        <AdvanceRefunding>false</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartII>
        <TotalProceeds>140209630</TotalProceeds>
        <RefundingEscrow>41432241</RefundingEscrow>
        <IssuanceCostsFromProceeds>1203994</IssuanceCostsFromProceeds>
        <CapitalExpenditures>97573395</CapitalExpenditures>
        <YearOfSubstCompletion>2008</YearOfSubstCompletion>
        <CurrentRefunding>false</CurrentRefunding>
        <AdvanceRefunding>true</AdvanceRefunding>
        <FinalAllocationMade>true</FinalAllocationMade>
        <AdequateBooksAndRecdsMaintaind>true</AdequateBooksAndRecdsMaintaind>
      </Form990ScheduleKPartII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <EngageBondCounselContracts>false</EngageBondCounselContracts>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <EngageBondCounselResearch>false</EngageBondCounselResearch>
        <PostIssuanceComplianceProcdrs>true</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIII>
        <OwningBondFinancedProperty>false</OwningBondFinancedProperty>
        <AnyLeaseArrangements>false</AnyLeaseArrangements>
        <MngmentCntrctBondFinancdPrprty>false</MngmentCntrctBondFinancdPrprty>
        <EngageBondCounselContracts>false</EngageBondCounselContracts>
        <AnyResearchAgreements>false</AnyResearchAgreements>
        <EngageBondCounselResearch>false</EngageBondCounselResearch>
        <PostIssuanceComplianceProcdrs>true</PostIssuanceComplianceProcdrs>
      </Form990ScheduleKPartIII>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>false</Form8038TFiled>
        <VariableRateIssue>false</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>true</GrossProceedsInvestedInGIC>
        <NameOfGICProvider>
          <BusinessNameLine1>MORGANSTANLEY &amp;</BusinessNameLine1>
          <BusinessNameLine2>CO INCORPORATED</BusinessNameLine2>
        </NameOfGICProvider>
        <TermOfGIC>2.7</TermOfGIC>
        <RegulatorySafeHarborSatisfied>true</RegulatorySafeHarborSatisfied>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <ExceptionToRebate>true</ExceptionToRebate>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartIV>
        <Form8038TFiled>false</Form8038TFiled>
        <VariableRateIssue>false</VariableRateIssue>
        <HedgeIdentifiedInBooksAndRecds>false</HedgeIdentifiedInBooksAndRecds>
        <GrossProceedsInvestedInGIC>true</GrossProceedsInvestedInGIC>
        <NameOfGICProvider>
          <BusinessNameLine1>HYPO PUBLIC FIN</BusinessNameLine1>
          <BusinessNameLine2>BANK</BusinessNameLine2>
        </NameOfGICProvider>
        <TermOfGIC>2.7</TermOfGIC>
        <RegulatorySafeHarborSatisfied>true</RegulatorySafeHarborSatisfied>
        <GrossProceedsInvested>false</GrossProceedsInvested>
        <ExceptionToRebate>true</ExceptionToRebate>
      </Form990ScheduleKPartIV>
      <Form990ScheduleKPartVI>
        <Identifier>ADDITIONAL INFORMATION</Identifier>
        <ReturnReference>SCHEDULE K</ReturnReference>
        <Explanation>MICHIGAN STATE HOSPITAL FINANCE AUT THE ISSUE PRICE FOR THE MICHIGAN STATE HOSPITAL FINANCE AUTHORITY CUSIP 59465HAC0 REPORTED ON FORM 8038 WAS XXX-XX-XXXX THIS TAXEXEMPT BOND IS BEING ALLOCATED BETWEEN EDWARD W SPARROW HOSPITAL AND CLINTON MEMORIAL HOSPITAL THE AMOUNT OF THE ISSUE PRICE REPORTED ON EDWARD W SPARROW HOSPITAL IS XXX-XX-XXXX AND THE AMOUNT REPORTED ON CLINTON MEMORIAL HOSPITAL IS 4148209 SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF BOTH EDWARD W SPARROW HOSPITAL AND CLINTON MEMORIAL HOSPITAL</Explanation>
      </Form990ScheduleKPartVI>
    </IRS990ScheduleK>
    <IRS990ScheduleL documentId="RetDoc12">
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>MAUREEN FELLOWS</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>FAMILY MEMBER</Relationship>
        <AmountOfTransaction>49739</AmountOfTransaction>
        <DescriptionOfTransaction>EMPLOYMENT</DescriptionOfTransaction>
        <SharingOfRevenues>false</SharingOfRevenues>
      </Form990ScheduleLPartIV>
      <Form990ScheduleLPartIV>
        <NameOfInterestedPerson>
          <NamePerson>DEBORAH GINSBURG</NamePerson>
        </NameOfInterestedPerson>
        <Relationship>FAMILY MEMBER</Relationship>
        <AmountOfTransaction>28373</AmountOfTransaction>
        <DescriptionOfTransaction>EMPLOYMENT</DescriptionOfTransaction>
        <SharingOfRevenues>false</SharingOfRevenues>
      </Form990ScheduleLPartIV>
    </IRS990ScheduleL>
    <IRS990ScheduleO documentId="RetDoc13">
      <GeneralExplanation>
        <Identifier>ADDITIONAL INFORMATION</Identifier>
        <ReturnReference>FORM 990</ReturnReference>
        <Explanation>ALL LINES LEFT BLANK ARE NOT APPLICABLE TO THE ORGANIZATION. PART IV, QUESTION 4 - THE ORGANIZATION HAS MEMBERSHIPS IN VARIOUS TRADE ASSOCIATIONS THAT USE A PORTION OF DUES PAID TO THE TRADE ASSOCIATIONS FOR LOBBYING ACTIVITIES ON BEHALF OF THE APPLICABLE TRADE ASSOCIATION INDUSTRIES, THUS INDIRECTLY BENEFITING THE ORGANIZATION. THE PERCENTAGE OF DUES ALLOCATED TO THIS INDUSTRY-WIDE LOBBYING ACTIVITY IS MINOR AND IS NOT CONSIDERED BY THE ORGANIZATION AS LOBBYING ACTIVITIES REQUIRED FOR DISCLOSURE ON SCHEDULE C, PART II.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>FIRST ACCOMPLISHMENT DESCRIPTION</Identifier>
        <ReturnReference>FORM 990, PAGE 2, PART III, LINE 4A</ReturnReference>
        <Explanation>MID-MICHIGAN. SPARROW IS THE REGIONAL MEDICAL CENTER FOR: PEDIATRICS, CANCER CARE INCLUDING RADIATION THERAPY, TRAUMA CARE, NEUROLOGICAL CARE, HIGH-RISK OBSTETRICS, NEONATAL INTENSIVE CARE, BEHAVIORAL HEALTH, AND CARDIOVASCULAR SERVICES. SPARROW TREATED MORE THAN 33,000 INPATIENTS, HAD MORE THAN 1.2 MILLION OUTPATIENT ENCOUNTERS, AND PROVIDED SERVICES TO ABOUT 123,000 EMERGENCY MEDICINE PATIENTS IN 2011. TODAY'S SPARROW HEALTH SYSTEM BLENDS THE KNOWLEDGE AND EXPERTISE OF OVER 900 PHYSICIANS, 7,500 CAREGIVERS AND APPROXIMATELY 2,000 VOLUNTEERS WITH THE MOST ADVANCED TECHNOLOGY, SERVING AS A COMPREHENSIVE HEALTH SYSTEM FOR AN EIGHT-COUNTY POPULATION. IN ADDITION, MORE PEOPLE CHOOSE SPARROW FOR THEIR MATERNITY NEEDS (MORE THAN 4,100 DELIVERIES ANNUALLY), REHABILITATION, AND EMERGENCY TREATMENT THAN ANY OTHER HOSPITAL IN MID-MICHIGAN. SPARROW HEALTH SYSTEM'S REACH EXTENDS FAR BEYOND THE ACUTE CARE SETTING OF THE HOSPITAL. THERE ARE MANY WAYS OUR STAFF PROACTIVELY SUPPORTS THE COMMUNITY, ESPECIALLY THOSE WHO HAVE THE GREATEST NEED. BECAUSE OF SPARROW'S COMMITMENT, THE PEOPLE OF MID-MICHIGAN HAVE ACCESS TO THE FULL RANGE OF COMPREHENSIVE ACUTE CARE SERVICES AND THE LATEST MEDICAL ADVANCES WITHOUT TRAVELING GREAT DISTANCES. THESE SERVICES ARE AVAILABLE TO ALL MID-MICHIGAN RESIDENTS, REGARDLESS OF THEIR ABILITY TO PAY. PROVIDING ACCESS TO PRIMARY CARE - SPARROW RECOGNIZES THAT IF WE ARE TO ACHIEVE OUR VISION OF BEING A NATIONALLY RECOGNIZED LEADER IN QUALITY AND THE PATIENT EXPERIENCE, WE HAVE A RESPONSIBILITY TO TAKE THE LEAD IN FUNDAMENTALLY TRANSFORMING HEALTH CARE IN MICHIGAN. IN ORDER TO ADDRESS THE CHALLENGES OF INCREASING PREVALENCE OF CHRONIC DISEASE AND AN AGING POPULATION, TO IMPROVE THE QUALITY OF CARE AND THE PATIENT EXPERIENCE WHILE ALSO ENSURING GREATER AFFORDABILITY FOR PAYORS, SPARROW NEEDS TO IMPLEMENT PROFOUND CHANGES IN HOW CARE IS PROVIDED. SPARROW IS COMMITTED TO SEEKING NEW WAYS TO PARTNER WITH QUALITY CARE PROVIDERS TO CREATE GREATER ALIGNMENT AROUND IMPROVED QUALITY AND PATIENT EXPERIENCE, WORK JOINTLY TO DEVELOP CLINICAL GUIDELINES TO ENSURE THE HIGHEST QUALITY OF CARE FOR PATIENTS WHO NEED TO BE TRANSFERRED TO DIFFERENT LEVELS OF CARE AND TO ENSURE THAT CARE IS ALWAYS DELIVERED IN THE BEST QUALITY AND MOST COST-ADVANTAGEOUS CLINICAL SETTING AS CLOSE TO THE PATIENTS HOME AS POSSIBLE. SPARROW WAS SELECTED TO BECOME A MEMBER OF THE MAYO CLINIC CARE NETWORK (IN 2012), SOLIDIFYING OUR DEDICATION TO MEETING OUR PATIENTS HEALTHCARE NEEDS RIGHT HERE IN MID- MICHIGAN. SPARROW ALSO HOLDS AFFILIATIONS WITH SPARROW CLINTON MEMORIAL HOSPITAL, SPARROW IONIA HOSPITAL, CARSON CITY HOSPITAL, AND HAYES GREEN BEACH HOSPITAL EXTENDING OUR REACH THROUGHOUT THE REGION. SPARROW COMMUNITY CARE - A NON-PROFIT ENTITY COMPRISING THE FORMER SPARROW MEDICAL SUPPLY AND SPARROW HOME CARE UNITS WITH SPARROW LABORATORIES AND SPARROW PHARMACY PLUS ROUND OUT SPARROW HEALTH SYSTEM'S NETWORK OF FACILITIES AND PRIMARY CARE SERVICES. THEY ARE DESIGNED TO PROVIDE QUALITY, CONVENIENT, COST EFFECTIVE HEALTH CARE TO THE PEOPLE OF MID-MICHIGAN. EMERGENCY PREPAREDNESS - SPARROW HAS DISTINGUISHED ITSELF AS A RECOGNIZED LEADER IN EMERGENCY PREPAREDNESS. THE HOSPITAL VIEWS PREPAREDNESS AS AN ONGOING PROCESS LED BY A MULTIDISCIPLINARY TEAM THAT INVOLVES ALL ASPECTS OF HOSPITAL OPERATIONS, INCLUDING MEDICAL AND NON-MEDICAL SERVICES. DRILLS ARE CONDUCTED YEAR-ROUND IN COLLABORATION WITH LOCAL, STATE AND FEDERAL AGENCIES TO ENSURE SPARROW IS PREPARED FOR ANY DISASTER, WHETHER IT IS THE RESULT OF A TERRORIST ACT OR A NATURAL DISASTER. SPARROW'S EMERGENCY PREPAREDNESS COMMITTEE REGULARLY TESTS THE HOSPITAL'S RESPONSE SKILLS INDEPENDENT OF ANY AGENCY OR GOVERNING BODY. THE HOSPITAL ALSO WORKS WITH LOCAL GOVERNMENT AGENCIES, INCLUDING THE POLICE DEPARTMENT, FIRE DEPARTMENT AND PUBLIC HEALTH DEPARTMENT TO COORDINATE A PLANNED RESPONSE IN THE EVENT OF A TRUE EMERGENCY. SUPPORTING OUR COMMUNITY AND NEIGHBORHOODS - SPARROW IS THE UNQUESTIONED LEADER IN MID-MICHIGAN IN PROVIDING HEALTHCARE SERVICES AND PROMOTING HEALTH-RELATED ACTIVITIES. SPARROW PROVIDES FIRST-AID SERVICES AT MANY SPECIAL EVENTS INCLUDING MICHIGAN STATE UNIVERSITY FOOTBALL GAMES, LANSING LUGNUTS BASEBALL GAMES AND THE CITY OF LANSING'S ANNUAL COMMON GROUND MUSIC FESTIVAL. SPARROW ALSO SPONSORS DOZENS OF HEALTH-RELATED ACTIVITIES, INCLUDING THE ANNUAL LANSING WOMEN'S EXPO, HIKE FOR HOSPICE, THE FEELIN' GOOD MILEAGE CLUB FOR ELEMENTARY SCHOOLS AND FITKIDS. SPARROW ALSO HAS A PARTNERSHIP WITH THE NATION'S LARGEST AND MOST EXPERIENCED PROVIDER OF AIR AMBULANCE SERVICES, LIFENET OF MICHIGAN. LIFENET PROVIDES 24-HOUR AIR MEDICAL TRANSPORT SERVICE FOR IMPROVED ACCESS TO PATIENTS WHO NEED CRITICAL CARE. AS A TEACHING HOSPITAL, SPARROW HAS CONTINUED TO STRENGTHEN ITS AFFILIATION WITH MICHIGAN STATE UNIVERSITY THROUGH A JOINT INITIATIVE, THE CENTER FOR INNOVATION, BY SUPPORTING FELLOWSHIPS AND RECRUITING ESTABLISHED RESEARCHERS TO DEVELOP, TEST, IMPLEMENT AND EVALUATE INNOVATIVE APPROACHES IN HEALTHCARE. SPARROW HAS MANY OTHER LONGSTANDING ARRANGEMENTS WITH MSU'S COLLEGES OF HUMAN MEDICINE, OSTEOPATHIC MEDICINE AND NURSING. SPARROW WORKS WITH MSU TO FACILITATE THE RECRUITMENT, TRAINING AND RETENTION OF CURRENT AND FUTURE GENERATIONS OF PHYSICIANS AND NURSES. SPARROW IS THE CLINICAL CENTER FOR A MULTITUDE OF HEALTH EDUCATION PROGRAMS, INCLUDING GRADUATE MEDICAL RESIDENCY AND NURSING INTERNSHIPS. SPARROW ALSO SPONSORS DOZENS OF HEALTH SCREENING PROGRAMS, WHICH ARE FREE TO THE PUBLIC. FREE DIABETES TESTING, PROSTATE SCREENING, BREAST EXAMS AND BLOOD PRESSURE CHECKS ARE BUT A FEW OF THE MANY SUCH PROGRAMS SPARROW PROVIDES TO THE COMMUNITY. SPARROW ALSO PROVIDES MEETING FACILITIES FOR MANY HEALTH EDUCATION AND SUPPORT GROUPS. AS INDIVIDUAL VOLUNTEERS, AND AS AN ORGANIZATION, SPARROW HEALTH SYSTEM SUPPORTED MORE THAN 200 COMMUNITY ORGANIZATIONS WITH SPONSORSHIPS, IN-KIND SERVICES, AND/OR VOLUNTEER SERVICE. AS MID-MICHIGAN'S LEADING HEALTH CARE SYSTEM, SPARROW HAS A RESPONSIBILITY TO DELIVER QUALITY, COMPASSIONATE CARE TO ALL PEOPLE. AS THE LEADING REGIONAL PROVIDER OF UNCOMPENSATED AND CHARITY CARE IN 2011, SPARROW PROVIDED APPROXIMATELY 59.8 MILLION IN CHARITY, BAD DEBT AND COMMUNITY BENEFITS AND ABSORBED THE COST OF MORE THAN 8.2 MILLION IN MEDICARE AND MEDICAID UNDER-FUNDING. A BRIEF FINANCIAL SUMMARY OF THE ABOVE ACCOMPLISHMENTS IS: CHARITY AND BAD DEBTS 30,532,167, COMMUNITY BENEFITS (SUBSIDIZED PROGRAMS AND COMMUNITY OUTREACH) 29,291,424, AND MEDICARE AND MEDICAID UNDER-FUNDING 8,213,105.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>CLASSES OF MEMBERS OR STOCKHOLDERS</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 6</ReturnReference>
        <Explanation>SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF EDWARD W. SPARROW HOSPITAL AND HAS 100% OWNERSHIP.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ELECTION OF MEMBERS AND THEIR RIGHTS</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 7A</ReturnReference>
        <Explanation>SPARROW HEALTH SYSTEM CAN ELECT MEMBERS OF THE EDWARD W. SPARROW HOSPITAL BOARD. THE PRESIDENT OF THE MEDICAL STAFF, WHICH IS A MEMBER OF THE GOVERNING BODY, IS ELECTED BY THE MEDICAL STAFF OF EDWARD W. SPARROW HOSPITAL.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>DECISIONS SUBJECT TO APPROVAL OF MEMBERS</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 7B</ReturnReference>
        <Explanation>SPARROW HEALTH SYSTEM HAS THE RIGHT TO ELECT, REPLACE, AND REMOVE DIRECTORS OF EDWARD W. SPARROW HOSPITAL. SPARROW HEALTH SYSTEM ALSO HAS THE AUTHORITY TO APPROVE DECISIONS OF THE EDWARD W. SPARROW HOSPITAL BOARD WHEN IT IS DEEMED NECESSARY.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ORGANIZATION'S PROCESS USED TO REVIEW FORM 990</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 11B</ReturnReference>
        <Explanation>COPIES OF THE 2011 FORM 990 WHICH WAS REVIEWED BY MANAGEMENT WAS PROVIDED AT THE SEPTEMBER 2012 AUDIT COMMITTEE AND BOARD MEETINGS FOR ALL MEMBERS TO REVIEW AND COMMENT ON. THE AUDIT COMMITTEE IS THE GOVERNING BODY WITH THE AUTHORITY TO REVIEW AND COMMENT ON THE 990.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>ENFORCEMENT OF CONFLICTS POLICY</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 12C</ReturnReference>
        <Explanation>1) CORPORATE COMPLIANCE SENDS OUT CONFLICT OF INTEREST POLICY AND QUESTIONNAIRES TO ALL VOTING BOARD MEMBERS AND THE EXECUTIVE TEAM ANNUALLY 2) ALL DISCLOSURES ARE RECEIVED AND REVIEWED BY CORPORATE COMPLIANCE 3) ALL DISCLOSURES ARE GIVEN A RESOLUTION CODE AND PRESENTED TO THE CEO AND GOVERNANCE COMMITTEE OF THE BOARD 4) ALL BOARD/COMMITTEE LEVEL DISCLOSURES ARE PROVIDED TO THE RESPECTIVE BOARD CHAIR AND EXECUTIVE LIAISON TO ENSURE ISSUES CAN BE ADDRESSED ON A TRANSACTION LEVEL (I.E. IF A VOTE IS REQUIRED ON A TRANSACTION INVOLVING AN INTERESTED PERSON)</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMPENSATION PROCESS FOR TOP OFFICIAL</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 15A</ReturnReference>
        <Explanation>THE PROCESS FOR DETERMINING COMPENSATION FOR THE CEO OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>COMPENSATION PROCESS FOR OFFICERS</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 15B</ReturnReference>
        <Explanation>THE PROCESS FOR DETERMINING COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>GOVERNING DOCUMENTS DISCLOSURE EXPLANATION</Identifier>
        <ReturnReference>FORM 990, PAGE 6, PART VI, LINE 19</ReturnReference>
        <Explanation>THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS ARE AVAILABLE ON SEVERAL INTERNET WEBSITES, INCLUDING NMSIR AND MSHFA WEBSITES, AS WELL AS AVAILABLE UPON REQUEST. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST.</Explanation>
      </GeneralExplanation>
      <GeneralExplanation>
        <Identifier>OTHER CHANGES IN NET ASSETS EXPLANATION</Identifier>
        <ReturnReference>FORM 990, PART XI, LINE 5</ReturnReference>
        <Explanation>CHANGES IN NET ASSETS: CHANGE IN UNFUNDED PENSION OBLIGATION -39,094,775 CHANGE IN UNFUNDED POSTRETIREMENT OBLIGATION -94,240 TRANSFERS FROM AFFILIATES 11,833,823 UNREALIZED GAIN/LOSS ON INVESTMENTS -7,445,802 ------------- TOTAL CHANGE IN NET ASSETS -34,800,994</Explanation>
      </GeneralExplanation>
    </IRS990ScheduleO>
    <IRS990ScheduleR documentId="RetDoc14">
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SPARROW HEALTH SYSTEM</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1215 EAST MICHIGAN AVENUE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>382542859</EIN>
        <PrimaryActivities>PARENT</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>11A</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>NA</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>false</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SPARROW COMMUNITY CARE</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>2909 EAST GRAND RIVER</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>382543305</EIN>
        <PrimaryActivities>HOME HLTH</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>9</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>PHYSICIANS HEALTH PLAN</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1400 EAST MICHIGAN AVENUE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>382356288</EIN>
        <PrimaryActivities>INSURANCE</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C4</ExemptCodeSection>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>PHP FAMILYCARE</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1400 EAST MICHIGAN AVENUE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>364497604</EIN>
        <PrimaryActivities>HMO</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C4</ExemptCodeSection>
        <DirectControllingEntityName>
          <BusinessNameLine1>PHPMM</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>PHYSICIANS HEALTH NETWORK</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1400 EAST MICHIGAN AVENUE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>382594856</EIN>
        <PrimaryActivities>HMO</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C4</ExemptCodeSection>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SPARROW FOUNDATION</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1110 EAST MICHIGAN AVENUE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>386100687</EIN>
        <PrimaryActivities>FUNDRAISE</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>11B</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>CLINTON MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>805 SOUTH OAKLAND</AddressLine1>
          <City>ST JOHNS</City>
          <State>MI</State>
          <ZIPCode>48879</ZIPCode>
        </AddressUS>
        <EIN>381358172</EIN>
        <PrimaryActivities>HLTH CARE</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>SPARROW SPECIALTY HOSPITAL</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>1210 WEST SAGINAW</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48915</ZIPCode>
        </AddressUS>
        <EIN>141885340</EIN>
        <PrimaryActivities>LT ACUTE C</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartII>
        <NameOfDisregardedEntity>
          <BusinessNameLine1>IONIA COUNTY MEMORIAL HOSPITAL CORP</BusinessNameLine1>
        </NameOfDisregardedEntity>
        <AddressUS>
          <AddressLine1>479 LAFAYETTE STREET</AddressLine1>
          <City>IONIA</City>
          <State>MI</State>
          <ZIPCode>48846</ZIPCode>
        </AddressUS>
        <EIN>383218134</EIN>
        <PrimaryActivities>HLTH CARE</PrimaryActivities>
        <LegalDomicileState>MI</LegalDomicileState>
        <ExemptCodeSection>501C3</ExemptCodeSection>
        <PublicCharityStatus>3</PublicCharityStatus>
        <DirectControllingEntityName>
          <BusinessNameLine1>SHS</BusinessNameLine1>
        </DirectControllingEntityName>
        <ControlledOrg>true</ControlledOrg>
      </Form990ScheduleRPartII>
      <Form990ScheduleRPartIII>
        <NameOfRelatedOrg>
          <BusinessNameLine1>LANSING MEDICAL DENTAL BUILDING</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>2909 EAST GRAND RIVER</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48909</ZIPCode>
        </AddressUS>
        <EIN>382566150</EIN>
        <PrimaryActivity>RENTAL PRO</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>EWSH</BusinessNameLine1>
        </DirectControllingEntityName>
        <PredominantIncomeType>EXCLUDED</PredominantIncomeType>
        <ShareOfTotalIncome>27941</ShareOfTotalIncome>
        <ShareOfEOYAssets>568212</ShareOfEOYAssets>
        <DisproportionateAllocations>false</DisproportionateAllocations>
        <CodeVAmount>135</CodeVAmount>
        <GeneralOrManagingPartner>false</GeneralOrManagingPartner>
        <PercentageOwnership>0.68420</PercentageOwnership>
      </Form990ScheduleRPartIII>
      <Form990ScheduleRPartIII>
        <NameOfRelatedOrg>
          <BusinessNameLine1>LANSING MEDICAL DENTAL BUILDING</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>2909 EAST GRAND RIVER</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48909</ZIPCode>
        </AddressUS>
        <EIN>382566150</EIN>
        <PrimaryActivity>RENTAL PRO</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>EWSH</BusinessNameLine1>
        </DirectControllingEntityName>
        <PredominantIncomeType>EXCLUDED</PredominantIncomeType>
        <ShareOfTotalIncome>27941</ShareOfTotalIncome>
        <ShareOfEOYAssets>568212</ShareOfEOYAssets>
        <DisproportionateAllocations>false</DisproportionateAllocations>
        <CodeVAmount>135</CodeVAmount>
        <GeneralOrManagingPartner>false</GeneralOrManagingPartner>
        <PercentageOwnership>0.68420</PercentageOwnership>
      </Form990ScheduleRPartIII>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>SPARROW DEVELOPMENT INC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1210 WEST SAGINAW ST</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48915</ZIPCode>
        </AddressUS>
        <EIN>382595963</EIN>
        <PrimaryActivity>MED SUPPLY</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>MEDICAL CENTER WEST CONDO ASSOC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1100 WEST SAGINAW ST</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48915</ZIPCode>
        </AddressUS>
        <EIN>382635630</EIN>
        <PrimaryActivity>CONDO ASSO</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityName>
          <BusinessNameLine1>EWSH</BusinessNameLine1>
        </DirectControllingEntityName>
        <TypeOfEntity>C CORP</TypeOfEntity>
        <ShareOfTotalIncome>33369</ShareOfTotalIncome>
        <ShareOfEOYAssets>224919</ShareOfEOYAssets>
        <PercentageOwnership>0.94610</PercentageOwnership>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>PHP INSURANCE COMPANY</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>PO BOX 30377</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48909</ZIPCode>
        </AddressUS>
        <EIN>205565219</EIN>
        <PrimaryActivity>INSURANCE</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>PHP SERVICE COMPANY</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1400 EAST MICHIGAN AVE</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48912</ZIPCode>
        </AddressUS>
        <EIN>383344741</EIN>
        <PrimaryActivity>MED SERV</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>EAST LANSING ATHLETIC CLUB</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>2900 HANNAH BLVD</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48823</ZIPCode>
        </AddressUS>
        <EIN>382886420</EIN>
        <PrimaryActivity>HLTH CLUB</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>MAC RESTAURANT LLC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>2900 HANNAH BLVD</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48823</ZIPCode>
        </AddressUS>
        <EIN>205120690</EIN>
        <PrimaryActivity>RESTAURANT</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>CLINTON SERVICE CORPORATION</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>805 SOUTH OAKLAND</AddressLine1>
          <City>ST JOHNS</City>
          <State>MI</State>
          <ZIPCode>48879</ZIPCode>
        </AddressUS>
        <EIN>382494110</EIN>
        <PrimaryActivity>SERVICES</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>SPARROW DEVELOPMENT INC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1210 WEST SAGINAW ST</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
          <ZIPCode>48915</ZIPCode>
        </AddressUS>
        <EIN>382595963</EIN>
        <PrimaryActivity>MED SUPPLY</PrimaryActivity>
        <LegalDomicileState>MI</LegalDomicileState>
        <DirectControllingEntityNA>N/A</DirectControllingEntityNA>
      </Form990ScheduleRPartIV>
      <Form990ScheduleRPartIV>
        <NameOfRelatedOrg>
          <BusinessNameLine1>MEDICAL CENTER WEST CONDO ASSOC</BusinessNameLine1>
        </NameOfRelatedOrg>
        <AddressUS>
          <AddressLine1>1100 WEST SAGINAW ST</AddressLine1>
          <City>LANSING</City>
          <State>MI</State>
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          <BusinessNameLine1>SPARROW DEVELOPMENT INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>A</TransactionType>
        <AmountInvolved>18946</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW SPECIALTY HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>A</TransactionType>
        <AmountInvolved>273516</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW COMMUNITY CARE</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>A</TransactionType>
        <AmountInvolved>109721</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW REGIONAL MEDICAL CENTER</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>A</TransactionType>
        <AmountInvolved>54027</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>C</TransactionType>
        <AmountInvolved>1342649</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>IONIA COUNTY MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>D</TransactionType>
        <AmountInvolved>209340</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CLINTON MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>G</TransactionType>
        <AmountInvolved>718212</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW DEVELOPMENT INC</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>J</TransactionType>
        <AmountInvolved>285671</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW SPECIALTY HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>K</TransactionType>
        <AmountInvolved>1346571</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>IONIA COUNTY MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>K</TransactionType>
        <AmountInvolved>1051391</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CLINTON MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>K</TransactionType>
        <AmountInvolved>1585392</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CLINTON MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>L</TransactionType>
        <AmountInvolved>73594</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>CLINTON MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>89677</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>PHYSICIANS HEALTH PLAN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>213199</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>IONIA COUNTY MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>N</TransactionType>
        <AmountInvolved>715366</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>PHYSICIANS HEALTH PLAN</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>10923280</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW SPECIALTY HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>1014562</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>IONIA COUNTY MEMORIAL HOSPITAL</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>P</TransactionType>
        <AmountInvolved>916744</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
      <TransactionsRelatedOrgsTable>
        <NameOfOtherOrganization>
          <BusinessNameLine1>SPARROW FOUNDATION</BusinessNameLine1>
        </NameOfOtherOrganization>
        <TransactionType>Q</TransactionType>
        <AmountInvolved>66177</AmountInvolved>
        <MethodOfAmtDetermination>COST</MethodOfAmtDetermination>
      </TransactionsRelatedOrgsTable>
    </IRS990ScheduleR>
  </ReturnData>
</Return>
