2011-04-06T09:30:56-05:00 2010-06-30 ANDREWS HOOPER PAVLIK PLC 3333 DEPOSIT DR NE STE 310 GRAND RAPIDS MI 49546 990 2009-07-01 381359517 NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION NEWA 2319243300 212 SOUTH SULLIVAN FREMONT MI 49412 JOHN SELLA 2319243300 2011-03-02 true MICHELLE L DERIDDER 6169426440 2011-04-05 2009 2016-02-24 21:20:13Z SPECTRUM HEALTH GERBER MEMORIAL RANDALL STASIK CEO 212 SOUTH SULLIVAN FREMONT MI 49412 65095440 false X WWW.GERBERHOSPITAL.ORG X 1918 MI OUR MISSION IS TO PROVIDE COMPETENT AND COMPASSIONATE COMMUNITY HEALTH CARE. 15 13 692 191 0 856314 462721 61615845 63885816 159323 615394 788129 36058 63419611 64999989 0 0 32839933 34314152 0 0 31044281 33077841 63884214 67391993 -464603 -2392004 55731948 52823220 31160396 30744158 24571552 22079062 OUR MISSION IS TO PROVIDE COMPETENT AND COMPASSIONATE COMMUNITY HEALTH CARE. false false 40349969 53377034 HEALTH CARE PROGRAMS, GENERAL/OTHER: SPECTRUM HEALTH GERBER MEMORIAL PROVIDED 112,155 OUTPATIENT ANCILLARY VISITS, AS WELL AS 7,327 ADULT ACUTE AND 720 NEWBORN PATIENT DAYS OF CARE TO THE RESIDENTS OF NEWAYGO COUNTY AND THE SURROUNDING AREAS. 4043684 4358497 HOME HEALTH CARE: CONTINU-CARE, THE HOME HEALTH DEPARTMENT OF THE HOSPITAL PROVIDED 30,424 SKILLED NURSING, PHYSICAL THERAPY, OCCUPATIONAL THERAPY, SOCIAL WORK, HOME HEALTH AIDE, AND MSS/ISS SERVICE. 3977712 3230485 PHYSICIAN PRACTICES/RURAL HEALTH CLINICS: SEVERAL PHYSICIAN OFFICES PROVIDED 39,305 OFFICE VISITS. 2773111 1966611 WELLNESS PROGRAMMING AND COMMUNITY EDUCATION, AVAILABLE TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. 2773111 1966611 51144476 true true false false false false false false false true false true false false false false false false true false true false false true true false false false false false false false false false false false false false false true true true false false true 64 0 true 692 true false false false false false false false false false 15 13 false false true false true true true true true false false true true true true true true true true false X X JOHN SELLA VP OF FINANCE 2319243300 212 SOUTH SULLIVAN FREMONT MI 49412 MATTHEW VANVRANKEN 1.00 X 0 1138968 280010 MARC CHIRCOP 1.00 X 0 668959 164176 DOUGLAS JOHNSON MD 1.00 X 0 0 0 LARRY LETHORN 1.00 X 0 0 0 MIKE PUMFORD 1.00 X 0 0 0 DAVE ROBINSON 1.00 X 0 0 0 DON HENRY 1.00 X X 0 0 0 STEPHEN WELSH MD 1.00 X X 0 0 0 JOHN MELLEMA 1.00 X X 0 0 0 CAROLYN HUMMEL 1.00 X X 0 0 0 BRENT BECKMAN MD 1.00 X 0 0 0 TODD BLAKE 1.00 X 0 0 0 LAUREL BRUEKER 1.00 X 0 0 0 TRAVIS BULL 1.00 X 0 0 0 JANE DRAKE 1.00 X 0 0 0 RANDALL STASIK 40.00 X 248371 0 0 JOHN SELLA 40.00 X 119672 0 0 TED BRITTON 40.00 X 113486 0 0 DR JAMES PATENGE 40.00 X 310400 0 0 DR TAMI MICHELE 40.00 X 237462 0 0 DR MARK BYLAND 40.00 X 226035 0 0 MARCUS GARDENER 40.00 X 225497 0 0 DAVID POEL 40.00 X 222794 0 0 SUE NIEBOER 40.00 X 106104 0 0 1809821 1807927 444186 20 true true false TERRENCE A WESCOTT 609 PICKERAL LAKE DRIVE NEWAGO MI 49337 PHYS. THERAPIST 387428 AHSA LLC PO BOX 945 TRAVERSE CITY MI 49412 STAFFING SVCS 363486 PINE MEDICAL GROUP PC 230 WEST OAK STREET FREMONT MI 49412 MGT SERVICE 360825 PLANTE & MORAN PLLC 16060 COLLECTIONS CENTER CHICAGO IL 60693 AUDIT, CONSULT. 120631 BLUEWATER ASSOCIATES 2760 KEEPER HIGHWAY LYONS MI 48851 PHYSICIAN SVCS 115700 5 39699 423022 462721 NET PATIENT SERVICE REVENUE 622110 62917122 62917122 PHYSICIAN OFFICE RENT 531120 810674 810674 CAFETERIA 531120 158020 158020 722212 63885816 627468 627468 11702 23776 -12074 -12074 -12074 39699 12228 -12228 -12228 92228 59447 32781 32781 MEMBERSHIP DUES 900099 15505 15505 15505 64999989 62932627 1604641 481529 481529 149481 149481 26040690 21665214 4375476 1293632 1050807 242825 4436885 3604047 832838 1911935 1553050 358885 95217 95217 70401 70401 48504 48504 376829 90769 286060 16887961 11146748 5741213 138676 138676 158784 157508 1276 1426165 1426165 3568707 3033401 535306 373641 373641 BAD DEBT LESS RECOVERIES 5303103 5303103 PROFESSIONAL CONTRACT FEE 1847121 1594036 253085 EQUIPMENT RENTAL & MAIN. 1692391 1374884 317507 PHYSICIANS' FEES 1069031 432233 636798 CHARITABLE CONTRIBUTIONS 17741 17741 3569 3569 67391993 51144476 16247517 0 6544867 6125828 149336 593964 102024 2642615 3437538 1072033 1181707 1558025 721316 67542013 36923061 33056448 30618952 8851187 9441958 1263473 1193897 55731948 52823220 6122528 7797516 23050475 19473463 1987393 3473179 31160396 30744158 X 23452583 20960093 1093836 1093836 25133 25133 24571552 22079062 55731948 52823220 X false true true X false X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED false false false false false false false false false false 1866182 1866182 38038238 14748915 23289323 642867 522888 119979 25150493 21152073 3998420 1844233 499185 1345048 30618952 FAIR VALUE OF SWAP AGREEMENT 2347089 THIRD PARTY SETTLEMENTS 1126090 3473179 MI PACKER PINK OUT 26756 26756 500 5059 GOLF OUTING 12943 12943 250 1800 2877 1742 39699 39699 250 2300 2877 6801 12228 -12228 true true X true X true X true true true false true true 1362525 1362525 0.02020 9857061 4938480 4918581 0.07300 11219586 4938480 6281106 0.09320 4057907 2232878 1825029 0.02710 4057907 2232878 1825029 0.02710 15277493 7171358 8106135 0.12030 false 1943351 17768029 21342899 -3574870 X true false SPECTRUM HEALTH GERBER MEMORIAL

212 S SULLIVAN ST FREMONT MI 49412

X PINE MEDICAL

211 W PINE DRIVE NEWAYGO MI 49337

NEWAYGO CONTINUING CARE

231 W PINE LAKE DRIVE NEWAYGO MI 49337

GRANT MEDICAL

230 SOUTH MAPLE GRANT MI 49327

MEDICAL OFFICE BUILDING

230 W OAK ST FREMONT MI 49412

MEDICAL OFFICE BUILDING

78 N DIVISION ST HESPERIA MI 49421

FINANCE & MEDICAL OFFICE BUILDING

204 W MAIN ST FREMONT MI 49412

WELLNESS CENTER

1401 W MAIN ST FREMONT MI 49412

RESIDENTIAL HOUSE

333 W MAPLE ST FREMONT MI 49412

THE CONSOLIDATED HEALTH SYSTEM PUBLISHES THEIR COMMUNITY BENEFIT REPORT ON THEIR WEBSITE AT WWW.SPECTRUM-HEALTH.ORG (CLICK THE LINK TITLED "ABOUT US"). IN ADDITION, THE HEALTH SYSTEM HOLDS AN ANNUAL MEETING TO THE PUBLIC TO DISCUSS ITS COMMUNITY COMMITMENTS. SUBSIDIZED HEALTH SERVICES INCLUDE THE UNREIMBURSED COSTS OF PROVIDING FREE OR SUBSIDIZED HEALTH SERVICES AND/OR COMMUNITY CLINICS. CONSOLIDATED FINANCIAL STATEMENT FOOTNOTE EXTRACT RELATED TO UNCOLLECTIBLE ACCOUNTS THE PROVISION FOR UNCOLLECTIBLE ACCOUNTS IS BASED UPON MANAGEMENT'S ASSESSMENT OF HISTORICAL AND EXPECTED NET COLLECTIONS CONSIDERING BUSINESS AND GENERAL ECONOMIC CONDITIONS IN ITS SERVICE AREA, TRENDS IN HEALTH CARE COVERAGE, AND OTHER COLLECTION INDICATORS. PERIODICALLY, MANAGEMENT ASSESSES THE ADEQUACY OF THE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS BASED UPON ACCOUNTS RECEIVABLE PAYOR COMPOSITION AND AGING, AND HISTORICAL WRITE-OFF EXPERIENCE BY PAYOR CATEGORY AND OTHER FACTORS. THE RESULTS OF THIS REVIEW ARE THEN USED TO MAKE ANY MODIFICATIONS TO THE PROVISION FOR UNCOLLECTED ACCOUNTS TO ESTABLISH AN APPROPRIATE ALLOWANCE FOR UNCOLLECTIBLE ACCOUNTS. AFTER AMOUNTS DUE FROM THIRD-PARTY PAYORS ARE SATISFIED, AND REASONABLE EFFORTS TO COLLECT FROM THE PATIENT HAVE BEEN EXHAUSTED, THE SYSTEM FOLLOWS ESTABLISHED GUIDELINES FOR PLACING CERTAIN PAST-DUE PATIENT BALANCES WITH EXTERNAL COLLECTION AGENCIES. COSTING METHODOLOGY USED IN DETERMINING THE FIGURES REPORTED IN SCH. H, PART III, LINE 1 BAD DEBTS, AT COST, ARE DETERMINED BY USING AN OVERALL RATIO OF COSTS-TO-CHARGES APPLIED AGAINST BAD DEBT EXPENSES (AT CHARGES) IN THE STATEMENT OF ACTIVITIES. RATIONAL FOR INCLUDING BAD DEBTS (AT COST) IN SCH. H, PART III, LINE 2 BAD DEBTS, AT COST, REPRESENT AN UNREIMBURSED LIABILITY TO THE TAXPAYER AND FURTHER DEMONSTRATE HOW, BY ASSUMING THOSE COSTS, THE TAXPAYER PROVIDES AND FULFILLS A HEALTH NEED IN THE COMMUNITY. IN ADDITION, EMERGENCY CARE IS PROVIDED TO PATIENTS REGARDLESS OF THEIR ABILITY TO PAY FOR SERVICES. SOME OF THESE SERVICES ARE PROVIDED TO INDIVIDUALS WHO QUALIFY FOR FINANCIAL ASSISTANCE BUT, FOR PERSONAL OR OTHER PRIVATE REASONS, DON'T APPLY FOR FINANCIAL ASSISTANCE. USING THIS INFORMATIONAL TAX RETURN FOR ITS INTENDED PURPOSE, THE TAXPAYER CHOOSES TO BE FULLY TRANSPARENT AND SHARE ALL THE COSTS OF PROVIDING CHARITY CARE AND COMMUNITY BENEFITS TO THE COMMUNITIES WE SERVE, WHICH INCLUDES CHARITY CARE, THE COSTS OF FREE OR SUBSIDIZED COMMUNITY PROGRAMS, BAD DEBT EXPENSES REDUCED TO COST AND SHORTFALLS IN GOVERNMENT REIMBURSEMENTS (MEDICARE AND MEDICAID). RATIONAL FOR EXCLUDING (OR REPORTING ZERO) BAD DEBTS (AT COST) IN SCH. H, PART III, LINE 3 THE TAXPAYER HAS NOT IDENTIFIED THE AMOUNT OF BAD DEBT EXPENSES (AT COST) ATTRIBUTABLE TO PATIENTS ELIGIBLE FOR FREE OR DISCOUNTED SERVICES UNDER THE FINANCIAL ASSISTANCE POLICY. ALTHOUGH IT'S CERTAIN THAT A PORTION OF BAD DEBT EXPENSES (AT COST) RELATES TO PATIENTS WHO WOULD QUALIFY FOR CHARITY CARE (HAD THEY PROVIDED INFORMATION TO DETERMINE ELIGIBILITY FOR FINANCIAL ASSISTANCE), A REPORTABLE FIGURE CANNOT BE REASONABLY ESTIMATED. THE METHODOLOGY DESCRIBED IN THE INSTRUCTIONS TO SCHEDULE H, PART III, SECTION B, LINE 6 DOES NOT TAKE INTO ACCOUNT ALL COSTS INCURRED BY THE HOSPITAL AND DOES NOT REPRESENT THE TOTAL COMMUNITY BENEFIT CONFERRED IN THIS AREA. REASONS WHY MEDICARE SHORTFALL SHOULD BE TREATED AS COMMUNITY BENEFIT ARE: (1) ABSENT THE MEDICARE PROGRAM, IT IS LIKELY MANY OF THE INDIVIDUALS WOULD QUALIFY FOR CHARITY CARE OR OTHER NEEDS-BASED GOVERNMENT PROGRAMS; (2) BY ACCEPTING PAYMENT BELOW COST TO TREAT THESE INDIVIDUALS, THE BURDENS OF GOVERNMENT ARE RELIEVED WITH RESPECT TO THESE INDIVIDUALS; (3) THERE IS A SIGNIFICANT POSSIBILITY THAT CONTINUED REDUCTION IN REIMBURSEMENT MAY ACTUALLY CREATE DIFFICULTIES IN ACCESS FOR THESE INDIVIDUALS; AND (4) THE AMOUNT SPENT TO COVER THE MEDICARE SHORTFALL IS MONEY NOT AVAILABLE TO COVER CHARITY CARE AND OTHER COMMUNITY BENEFIT NEEDS. IN DETERMINING MEDICARE SHORTFALLS THE TAXPAYER USES A RATIO OF COST TO CHARGES. IN DETERMINING THE RATIO OF COST TO CHARGES THE TAXPAYER ADJUSTS FOR BAD DEBT EXPENSES, NON-PATIENT CARE ACTIVITIES, MEDICAID PROVIDER TAXES AND COMMUNITY BENEFITS ACCOUNTED FOR AND OR REPORTED ELSEWHERE. THE RATIO OF COST TO CHARGES IS APPLIED TO MEDICARE CHARGES TO DETERMINE SHORTFALLS IN MEDICARE REIMBURSEMENTS. THE TAXPAYER COOPERATIVELY WORKS WITH PATIENTS HAVING SELF-PAY BALANCES TO DETERMINE ELIGIBILITY FOR FINANCIAL ASSISTANCE IN ACCORDANCE WITH THE FINANCIAL ASSISTANCE ELIGIBILITY POLICY. SCHEDULE H, PART I, LINE 3B THE TAXPAYER MAY PROVIDE DISCOUNTED CARE TO ELIGIBLE INDIVIDUALS WHOSE INCOME LEVEL EXCEEDS 500% OF THE FEDERAL POVERTY GUIDELINES. CONSOLIDATED CHARITY CARE AND COMMUNITY BENEFIT REPORTING SCHEDULE H OF THIS TAX RETURN ONLY DISCLOSES CHARITY CARE AND COMMUNITY BENEFIT INFORMATION PERTAINING TO THE REPORTING ENTITY. HOWEVER, FOR A FULL AND MORE ACCURATE UNDERSTANDING OF THE CHARITY CARE AND COMMUNITY BENEFITS PROVIDED BY THE CONSOLIDATED HEALTH SYSTEM PLEASE VISIT OUR WEBSITE AT WWW.SPECTRUM-HEALTH.ORG AND CLICK THE LINK TITLED "ABOUT US". PERIODICALLY THE TAXPAYER CONDUCTS A COMMUNITY NEEDS ASSESSMENT USING RESULTS FROM LOCAL, STATE AND NATIONAL SOURCES. THE LAST SUCH COMMUNITY NEEDS ASSESSMENT UTILIZED THE FOLLOWING SOURCES: 1)STATE AND PUBLIC HEALTH STATISTICS AVAILABLE ON LINE 2)NEWAYGO COUNTY HEALTH DEPARTMENT - HEALTHIER COMMUNITIES NEEDS ASSESSMENT 3)NEWAYGO COUNTY COMMUNITY CONSORTIUM DATA DASHBOARD TAXPAYER HAS A FINANCIAL COUNSELOR WHO WORKS WITH PATIENTS THAT EXPRESS ANY LEVEL OF CONCERN WITH PAYING THEIR BILL. IN ADDITION, THE TAXPAYER ALSO PROACTIVELY IDENTIFIES PATIENTS WHO HAVE QUALIFYING FACTORS FOR GOVERNMENTAL ASSISTANCE. IF THE NEED FOR ASSISTANCE IS NOT IDENTIFIED PRIOR TO BILLING, PATIENT CONCERNS THAT ARE RECEIVED AS A RESULT OF RECEIVING A BILL ARE ADDRESSED BY THE FINANCIAL COUNSELOR AT THAT TIME. THE TAXPAYER HAS IDENTIFIED A PRIMARY SERVICE AREA OF SEVERAL COUNTIES INCLUDING NEWAYGO COUNTY, EASTERN OCEANA COUNTY AND EASTERN MUSKEGON COUNTY AS PRIMARY AND NORTHERN KENT COUNTY AND SOUTHERN LAKE COUNTY AS SECONDARY. X X X X true true false false false false false false false MATTHEW VANVRANKEN 663894 458771 16303 186411 93599 1418978 279183 MARC CHIRCOP 373870 283501 11588 113177 50999 833135 211553 RANDALL STASIK 218576 20795 9000 248371 DR JAMES PATENGE 284520 25880 310400 DR TAMI MICHELE 211212 26250 237462 DR MARK BYLAND 201957 24078 226035 MARCUS GARDENER 225497 225497 DAVID POEL 222794 222794 SUE NIEBOER 106104 106104 SEVERANCE, NONQUALIFIED, AND EQUITY-BASED PAYMENTS SCHEDULE J, PAGE 1, PART I, LINE 4 SUE NIEBOER 43,377 0 0 OTHER ADDITIONAL INFORMATION SCHEDULE J, PART III SCHEDULE J, PART I, LINE 4A PER HER CONTRACT, THE FORMER CNO RECEIVED SEVERANCE PAY FOR ONE YEAR AFTER HER RESIGNATION. SCHEDULE J, PART I, LINE 4B IS ANSWERED "YES" BECAUSE CERTAIN INDIVIDUALS, WHOSE SALARY AND BENEFITS ARE PAID BY THE REPORTING ORGANIZATION OR A RELATED ORGANIZATION, DO "PARTICIPATE IN" A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN. HOWEVER, NONE OF THESE PARTICIPANTS "RECEIVED PAYMENT FROM" THESE PLANS DURING THE TAX YEAR. CITY OF FREMONT HOSPITAL FINANCE 383468654 357330AC3 2007-03-07 10800000 SEE SCH. O false false MICHIGAN STATE HOSPITAL FINANCE AUT 382889417 59465E7F4 2004-11-10 2700000 SEE SCH. O false false 10800000 2007 false false true true 2700000 2005 false false true true false true false false false true false false false false false true true true false false false false true true false false false false ALL OTHER ACHIEVEMENTS DESCRIPTION FORM 990, PAGE 2, PART III, LINE 4D WELLNESS PROGRAMMING AND COMMUNITY EDUCATION, AVAILABLE TO THE RESIDENTS OF NEWAYGO COUNTY AND SURROUNDING AREAS. SIGNIFICANT CHANGES TO ORGANIZATIONAL DOCUMENTS FORM 990, PAGE 6, PART VI, LINE 4 THERE WAS A CHANGE IN MANAGEMENT DURING THE YEAR, AS WE ARE NOW A SPECTRUM HEALTH HOSPITAL. WE HAVE MODIFIED BY-LAWS AS A RESULT OF THIS AFFILIATION TO REFLECT THE CHANGE IN MANAGEMENT AND TO STATE THAT SPECTRUM HEALTH IS ALLOWED TO ADD TWO BOARD MEMBERS OF THEIR CHOICE. THERE IS ALSO NOW A SPECTRUM HEALTH REPRESENTATION ON OUR BOARD. CLASSES OF MEMBERS OR STOCKHOLDERS FORM 990, PAGE 6, PART VI, LINE 6 THE MEMBERSHIP OF THE CORPORATION CONSISTS OF ONE CLASS, AND THE ONLY MEMBER OF THE CORPORATION SHALL BE SPECTRUM HEALTH SYSTEM (EIN 38-3382353), A MICHIGAN NONPROFIT CORPORATION. ELECTION OF MEMBERS AND THEIR RIGHTS FORM 990, PAGE 6, PART VI, LINE 7A THE MEMBER HAS THE POWER TO ADOPT, AMEND AND REPEAL THE BYLAWS OF THE CORPORATION, AND, EXCEPT AS PROVIDED IN THE BYLAWS, THE POWER TO ELECT ALL MEMBERS OF THE BOARD OF TRUSTEES OF THE CORPORATION IS RESERVED EXCLUSIVELY TO THE MEMBER. DECISIONS SUBJECT TO APPROVAL OF MEMBERS FORM 990, PAGE 6, PART VI, LINE 7B SUBJECT TO THE POWERS RESERVED TO THE MEMBER OF THE CORPORATION UNDER THE ARTICLES OF INCORPORATION OR THE BYLAWS OF THE CORPORATION, THE BOARD OF TRUSTEES OF THE CORPORATION SHALL HAVE CHARGE, CONTROL AND MANAGEMENT OF THE BUSINESS, PROPERTY, PERSONNEL AFFAIRS, AND FUNDS OF THE CORPORATION AND SHALL HAVE THE POWER AND THE AUTHORITY TO DO AND PERFORM ALL ACTS AND FUNCTIONS PERMITTED TO AN ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE CODE NOT INCONSISTENT WITH THESE AMENDED AND RESTATED ARTICLES OF INCORPORATION OR WITH THE LAWS OF THE STATE OF MICHIGAN, IN ADDITION TO, AND NOT IN LIMITATION OF, ALL POWERS, EXPRESS OR IMPLIED, NOW OR HEREAFTER CONFERRED UPON BOARDS OF DIRECTORS OF NONPROFIT CORPORATIONS, AND IN ADDITION TO THE POWERS MENTIONED IN AND IMPLIED FROM ARTICLE II, BUT SUBJECT TO APPROVAL OF THE MEMBER WHEN REQUIRED UNDER THE BYLAWS, THE BOARD OF TRUSTEES SHALL HAVE THE POWER TO BORROW OR RAISE MONEY FOR CORPORATE PURPOSES, TO ISSUE BONDS, NOTES, OR OTHER OBLIGATIONS, TO SECURE SUCH OBLIGATIONS BY MORTGAGE, SECURITY INTEREST OR OTHER LIEN UPON ANY OR ALL OF THE PROPERTY OF THE CORPORATION, WHETHER AT THE TIME OWNED OR THEREAFTER ACQUIRED, AND TO GUARANTEE THE DEBT OF ANY PARENT AFFILIATED OR SUBSIDIARY CORPORATION OR OTHER ENTITY; WHENEVER THE SAME SHALL BE IN THE BEST INTERESTS OF THE CORPORATION AND IN FURTHERANCE OF ITS PURPOSES. ORGANIZATION'S PROCESS USED TO REVIEW FORM 990 FORM 990, PAGE 6, PART VI, LINE 11 THE 990 IS REVIEWED BY THE FINANCE COMMITTEE INCLUDING DETAILED SCHEDULES. THE FORM IS THEN PROVIDED AND RECOMMENDED TO THE FULL BOARD FOR APPROVAL FOR FILING. THE REVIEW PROCESS FOR THIS FORM 990 IS AS FOLLOWS: 1. PREPARATION AND REVIEW OF THE RETURN IS PERFORMED BY AN EXTERNAL CPA FIRM WITH EXPERTISE IN TAX-EXEMPT RETURN PREPARATION. 2. THE RETURN IS REVIEWED BY THE FINANCE COMMITTEE AND SHARED WITH ALL MEMBERS OF THE BOARD OF DIRECTORS. 3. THE TAXPAYER'S VP OF FINANCE REVIEWS COMMENTS OR QUESTIONS RECEIVED BY MEMBERS OF THE BOARD OF DIRECTORS, IF ANY, TO ADDRESS OR TO INCORPORATE, AS APPROPRIATE, INTO THE RETURN PRIOR TO FILING. ENFORCEMENT OF CONFLICTS POLICY FORM 990, PAGE 6, PART VI, LINE 12C BOARD OF DIRECTORS 1.CONFLICTS OF INTEREST MUST BE DISCLOSED, BOTH VIA A DISCLOSURE FORM PROCESS AS WELL AS VERBALLY AT A BOARD MEETING PRIOR TO DISCUSSION OF ANY AGENDA ITEM WITH REGARD TO WHICH A BOARD MEMBER HAS A CONFLICT. 2.A PERSON HAVING A FINANCIAL INTEREST IN A PROPOSED TRANSACTION OR ARRANGEMENT MAY MAKE A PRESENTATION AT A MEETING OF THE BOARD OF DIRECTORS OR COMMITTEE CONSIDERING THAT TRANSACTION OR ARRANGEMENT, BUT AFTER THAT PRESENTATION HE OR SHE SHALL LEAVE THE MEETING DURING DISCUSSION AND VOTING ON THAT PROPOSED TRANSACTION OR ARRANGEMENT. THE PERSON HAVING THE FINANCIAL INTEREST SHALL NOT BE COUNTED IN DETERMINING WHETHER A QUORUM IS PRESENT. 3.THE CHAIRPERSON OF THE BOARD OF DIRECTORS OR COMMITTEE SHALL, IF APPROPRIATE, APPOINT A DISINTERESTED PERSON OR COMMITTEE (INCLUDING OUTSIDE ADVISORS) TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, AND TO ADVISE WHETHER THE PROPOSED TRANSACTION OR ARRANGEMENT IS IN SPECTRUM HEALTH GERBER MEMORIAL'S BEST INTEREST. 4.THE BOARD OF DIRECTORS OR COMMITTEE SHALL EXERCISE DUE DILIGENCE TO DETERMINE WHETHER SPECTRUM HEALTH GERBER MEMORIAL CAN, WITH REASONABLE EFFORTS, OBTAIN A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST. 5.IF A MORE ADVANTAGEOUS TRANSACTION OR ARRANGEMENT IS NOT REASONABLY ATTAINABLE UNDER CIRCUMSTANCES THAT WOULD NOT GIVE RISE TO A CONFLICT OF INTEREST, THE BOARD OF DIRECTORS OR COMMITTEE SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS AND MEMBERS WHETHER THE PROPOSED TRANSACTION OR ARRANGEMENT IS IN SPECTRUM HEALTH GERBER MEMORIAL'S BEST INTEREST AND FOR ITS OWN BENEFIT AND WHETHER THE TRANSACTION IS FAIR AND REASONABLE TO SPECTRUM HEALTH GERBER MEMORIAL, AND SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT IN CONFORMITY WITH SUCH DETERMINATION. 6.THE MINUTES OF THE MEETINGS OF THE BOARD OF DIRECTORS AND ALL SPECTRUM HEALTH GERBER MEMORIAL COMMITTEES SHALL SET FORTH: A)THE NAMES OF THE PERSONS WHO DISCLOSED A FINANCIAL INTEREST IN A PROPOSED TRANSACTION OR ARRANGEMENT INVOLVING SPECTRUM HEALTH GERBER MEMORIAL OR ANY OF ITS SUBSIDIARIES AND THE NATURE OF THE FINANCIAL INTEREST; AND B)THE NAMES OF THE PERSONS WHO WERE PRESENT FOR DISCUSSIONS AND VOTES RELATING TO SUCH TRANSACTION OR ARRANGEMENT, INCLUDING ANY DISCUSSION OF ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT, AND A RECORD OF ANY VOTES TAKEN IN CONNECTION WITH THAT MATTER. THE VOTES OF INDIVIDUAL MEMBERS NEED NOT BE RECORDED UNLESS OTHERWISE DIRECTED BY THE BOARD OF DIRECTORS OR COMMITTEE. MANAGEMENT 1.EACH MEMBER OF THE MANAGEMENT TEAM SHALL COMPLETE A CONFLICT OF INTEREST DISCLOSURE FORM UPON ACCEPTANCE OF AN EMPLOYMENT OFFER AND AT ANY POINT THEREAFTER IF A NEW POTENTIAL CONFLICT OF INTEREST HAS ARISEN. THE CONFLICT OF INTEREST DISCLOSURE FORM SHOULD BE FULLY COMPLETED AND SIGNED. IF THE STAFF MEMBER DISCLOSES ANY POTENTIAL CONFLICT OF INTEREST, THE FORM SHALL BE SUBMITTED IMMEDIATELY TO THE SYSTEM'S ORGANIZATIONAL INTEGRITY DEPARTMENT. A COPY OF THE COMPLETED FORM SHOULD BE MAINTAINED IN THE STAFF MEMBER'S PERSONNEL FILE. 2.EACH MEMBER OF THE MANAGEMENT TEAM SHALL COMPLETE AN ELECTRONIC CONFLICT OF INTEREST DISCLOSURE FORM ON AN ANNUAL BASIS. THE CONFLICT OF INTEREST DISCLOSURE FORM SHOULD BE COMPLETED AND ELECTRONICALLY SIGNED WITHIN THE GIVEN TIMEFRAME. THE SYSTEM'S ORGANIZATIONAL INTEGRITY DEPARTMENT WILL MANAGE THE ANNUAL PROCESS AND WILL MAINTAIN ELECTRONIC COPIES OF THE COMPLETED FORMS. 3.THE SYSTEM'S ORGANIZATIONAL INTEGRITY DEPARTMENT SHALL REVIEW EACH FORM THAT IS SUBMITTED. ADDITIONAL INFORMATION WILL BE GATHERED AS NEEDED. WHETHER ANY ITEMS DISCLOSED MAY BE PERCEIVED AS AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST WILL BE REVIEWED. IN ADDITION, STEPS THAT CAN BE TAKEN TO REDUCE THE RISK OF A CONFLICT OF INTEREST WILL BE IDENTIFIED. 4.IF THE SYSTEM'S ORGANIZATIONAL INTEGRITY DEPARTMENT BELIEVES THAT A DISCLOSURE HAS BEEN MADE THAT COMPRISES AN ACTUAL OR PERCEIVED CONFLICT OF INTEREST, THE SYSTEM CONFLICT OF INTEREST COMMITTEE OR MEMBERS THEREOF WILL BE CONSULTED AS NEEDED. THE STAFF MEMBER'S SUPERVISOR AND/OR HUMAN RESOURCES GENERALIST MAY BE CONSULTED AS WELL. REASONABLE STEPS SHOULD BE TAKEN AS NEEDED TO MINIMIZE THE RISK OF A CONFLICT OF INTEREST. A WRITTEN MEMO SUMMARIZING THESE STEPS SHOULD BE SENT TO THE STAFF MEMBER'S SUPERVISOR AND BE MAINTAINED IN THE STAFF MEMBER'S FILE. COMPENSATION PROCESS FOR TOP OFFICIAL FORM 990, PAGE 6, PART VI, LINE 15A COMPARATIVE DATA IS OBTAINED ANNUALLY BY HUMAN RESOURCES FROM THE MHA EXECUTIVE WAGE SURVEY. MHA COMPARES EXECUTIVE COMPENSATION FROM LIKE-SIZE HOSPITALS. IT PROVIDES A RANGE AND MIDPOINT BASED ON THOSE COMPARISONS. EXECUTIVES ARE PLACED IN THAT RANGE WITH CONSIDERATION FOR EXPERIENCE. THIS PROCESS IS REVIEWED AND APPROVED BY THE EXECUTIVE COMPENSATION COMMITTEE, COMPRISED OF SHGM BOARD MEMBERS. REVIEW OF THE DELIBERATION IS DOCUMENTED IN THE COMMITTEE MINUTES, WHICH ARE FILED IN THE COMPILED EXECUTIVE COMPENSATION REPORT, AND HELD IN HUMAN RESOURCES. COMPENSATION PROCESS FOR OFFICERS FORM 990, PAGE 6, PART VI, LINE 15B SEE EXPLANATION PROVIDED FOR FORM 990, PART VI, LINE 15A. GOVERNING DOCUMENTS DISCLOSURE EXPLANATION FORM 990, PAGE 6, PART VI, LINE 19 GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE TO THE PUBLIC UPON REQUEST. ADDITIONALLY, FINANCIAL INFORMATION IS MAILED TO THE PUBLIC IN THE ANNUAL REPORT. CHANGE IN FINANCIAL REVIEW PROCESS FORM 990, PAGE 11, PART XI, LINE 2C THE STATEMENTS ARE NOW PREPARED ON A CONSOLIDATED BASIS WITH SPECTRUM HEALTH. ADDITIONAL INFORMATION SCHEDULE O FORM 990, PART I, LINE 1 - ORGANIZATION'S MOST SIGNIFICANT ACTIVITIES WE PROVIDED HOSPITAL, HOMECARE, WELLNESS, AND PHYSICIAN HEALTHCARE SERVICES. FORM 990, PART I, LINE 5 AND FORM 990, PART V, LINE 2A - NUMBER OF EMPLOYEES TAXPAYER MAY HAVE INDIRECT EMPLOYEES. COMPENSATION FOR THESE EMPLOYEES IS PAID BY A RELATED ORGANIZATION. AN ALLOCATION OF AMOUNTS PAID FOR INDIRECT EMPLOYEES IS PURSUANT TO A MANAGEMENT SERVICES CONTRACT AND IS INCLUDED ON LINES 5-10 OF PART IX. FORM 990, PART IV, LINE 33 AND SCHEDULE R - IDENTIFICATION OF DISREGARDED ENTITIES THE ORGANIZATION DOES NOT OWN A WHOLLY OWNED DISREGARDED ENTITY. HOWEVER, THE HEALTH SYSTEM HAS WHOLLY OWNED DISREGARDED ENTITIES. THE ORGANIZATION IS REPORTING INDIRECT CONTROL FOLLOWING THE CONSTRUCTIVE OWNERSHIP RULES UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. OTHER ENTITIES REPORTED ON SCHEDULE R ARE REPORTED BASED ON THE SAME APPLICATION OF THE CONSTRUCTIVE OWNERSHIP RULES OF SECTION 318. FORM 990, PART VII, LINE 1A - COMPENSATION OF OFFICERS, DIRECTORS, TRUSTEES, KEY EMPLOYEES, HIGHEST COMPENSATED EMPLOYEES, AND INDEPENDENT CONTRACTORS CONSISTENT WITH PRIOR YEARS, THE COMPENSATION REPORTED FOR THESE INDIVIDUALS IS NOT FOR SERVICES IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS BUT FOR SERVICES AS EMPLOYEES OF THE ORGANIZATION OR A RELATED ORGANIZATION. CONSISTENT WITH PRIOR YEARS, COMPENSATION AND BENEFITS ARE REPORTED USING THE MOST RECENT CALENDAR YEAR COMPENSATION DATA. THE COMPENSATION FIGURES REPORTED IN THESE SECTIONS IS FOR THE YEAR ENDED DECEMBER 31, 2009. INDIVIDUALS WITH COMPENSATION REPORTED IN PART VII WORK A COMBINED AVERAGE OF 40 HOURS PER WEEK FOR THE REPORTING ORGANIZATION AND/OR A RELATED TAX-EXEMPT ORGANIZATION. SCHEDULE K - SUPPLEMENTAL INFORMATION ON TAX-EXEMPT BONDS THE TAX-EXEMPT BONDS ARE USED FOR EQUIPPING, CONSTRUCTING, AND RENOVATING HEALTHCARE FACILITIES. SCHEDULE R - DIRECT CONTROLLING ENTITY PART IV THE FORM 990 LIMITS THIS COLUMN TO TEN CHARACTERS AND THEREFORE ACRONYMS ARE USED TO DEFINE THE CONTROLLING ENTITY. THESE ACRONYMS ARE DEFINED AS FOLLOWS: NA - NOT APPLICABLE MMPC - MICHIGAN MEDICAL PATIENT CARE PH - PRIORITY HEALTH SHCC - SPECTRUM HEALTH CONTINUING CARE SHH - SPECTRUM HEALTH HOSPITALS SHI - SPECTRUM HEALTH INNOVATIONS, LLC SHS - SPECTRUM HEALTH SYSTEM SHU - SPECTRUM HEALTH UNITED WMH - WEST MICHIGAN HEART PHMB PROPERTIES LLC PHMB PROPERTIES LLC-1231 EAST BELT 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 PROP. MGMT MI 5062443 PH PH WEST MICHIGAN CVCT LLC WEST MICHIGAN CVCT LLC-2900 BRADFO 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 DORMANT MI WMH WMH MMPC REAL ESTATE LLC MMPC REAL ESTATE LLC-4100 LAKE DR 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49525 382851295 DORMANT MI MMPC MMPC SPECTRUM HEALTH INNOVATIONS LLC SPECTRUM HEALTH INNOVATIONS LLC-10 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 272868213 IP DEVELOP MI SHS SHS SPECTRUM HEALTH SYSTEM SPECTRUM HEALTH SYSTEM 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 383382353 MANAGEMENT MI 501 11C NA N/A SPECTRUM HEALTH HOSPITALS SPECTRUM HEALTH HOSPITALS 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 381360529 HEALTHCARE MI 501 3 SHS SHS SPECTRUM HEALTH PRIMARY CARE PTNRS SPECTRUM HEALTH PRIMARY CARE PTNRS 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 381358164 HEALTHCARE MI 501 3 SHS SHS WEST MICHIGAN REGIONAL LABORATORY WEST MICHIGAN REGIONAL LABORATORY 1726 KNOLLCREST CIRCLE SE 1726 KNOLLCREST CIRCLE SE GRAND RAPIDS MI 49546 383414862 TEACH/RSCH MI 501 9 SHH SHH SH-SM SHARED TECHNOLOGY SERVICES SH-SM SHARED TECHNOLOGY SERVICES 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 364528474 MED. SVCS MI 501 9 SHH SHH SPECTRUM HEALTH FOUNDATION SPECTRUM HEALTH FOUNDATION 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 382752328 PHILANTHRO MI 501 7 SHS SHS SPECTRUM HEALTH CONTINUING CARE SPECTRUM HEALTH CONTINUING CARE 750 FULLER AVE NE 750 FULLER AVE NE GRAND RAPIDS MI 49503 383242232 REHAB/CARE MI 501 11B SHS SHS SH CONTINUING CARE CENTER SH CONTINUING CARE CENTER 750 FULLER AVE NE 750 FULLER AVE NE GRAND RAPIDS MI 49503 382415333 REHAB/NRS MI 501 9 SHCC SHCC SH KENT COMMUNITY CAMPUS SH KENT COMMUNITY CAMPUS 750 FULLER AVE NE 750 FULLER AVE NE GRAND RAPIDS MI 49503 383472677 HEALTHCARE MI 501 3 SHCC SHCC SPECTRUM HEALTH WORTH SERVICES SPECTRUM HEALTH WORTH SERVICES 750 FULLER AVE NE 750 FULLER AVE NE GRAND RAPIDS MI 49503 382786617 HEALTHCARE MI 501 9 SHCC SHCC VISITING NURSE SERVICES OF WEST MI VISITING NURSE SERVICES OF WEST MI 750 FULLER AVE NE 750 FULLER AVE NE GRAND RAPIDS MI 49503 381359195 HEALTHCARE MI 501 9 SHCC SHCC PRIORITY HEALTH PRIORITY HEALTH 1231 EAST BELTLINE NE 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382715520 HMO MI 501 SHS SHS TRINITY HEALTH PLANS TRINITY HEALTH PLANS 1231 EAST BELTLINE NE 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 382663747 HMO MGMT MI 501 PH PH PH GOVERNMENT PROGRAMS INC PH GOVERNMENT PROGRAMS INC 1231 EAST BELTLINE NE 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 320016523 HMO MI 501 9 PH PH SPECTRUM HEALTH UNITED SPECTRUM HEALTH UNITED 615 S BOWER 615 S BOWER GREENVILLE MI 48838 381358412 HEALTHCARE MI 501 3 SHS SHS SH UNITED MEMORIAL FOUNDATION SH UNITED MEMORIAL FOUNDATION 615 S BOWER 615 S BOWER GREENVILLE MI 48838 382990574 PHILANTHRO MI 501 11A SHU SHU AMBULATORY UNITED AMBULATORY UNITED 407 S NELSON 407 S NELSON GREENVILLE MI 48838 383170488 HEALTHCARE MI 501 11A SHU SHU UNITED LIFESTYLES UNITED LIFESTYLES 615 S BOWER 615 S BOWER GREENVILLE MI 48838 383589727 WELLNESS MI 501 3 SHU SHU SPECTRUM HEALTH KELSEY SPECTRUM HEALTH KELSEY 300 N PATTERSON RD 300 N PATTERSON RD REED CITY MI 49677 381297435 HEALTHCARE MI 501 3 SHU SHU REED CITY HOSPITAL CORPORATION REED CITY HOSPITAL CORPORATION 225 N STATE STREET 225 N STATE STREET REED CITY MI 49677 382770076 HEALTHCARE MI 501 3 SHS SHS WEST MICHIGAN IMAGING CENTER WEST MICHIGAN IMAGING CENTER PO BOX 1009 PO BOX 1009 JENISON MI 49428 382730326 HEALTHCARE MI 501 11C SHH SHH NEWAYGO COUNTY GENERAL HOSPITAL ASS NEWAYGO COUNTY GENERAL HOSPITAL ASS 212 S SULLIVAN AVENUE 212 S SULLIVAN AVENUE FREMONT MI 49412 381359517 HEALTHCARE MI 501 3 SHS HELEN DEVOS WOMEN'S AND CHILDREN'S HELEN DEVOS WOMEN'S AND CHILDREN'S 1840 WEALTHY ST SE 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383264184 MGMT MI SHH SHH C CORP 609249 424826 0.86960 PARTNERSHIP FOR CHILDREN'S HEALTH PARTNERSHIP FOR CHILDREN'S HEALTH 1840 WEALTHY ST SE 1840 WEALTHY ST SE GRAND RAPIDS MI 49506 383364676 MGED CARE MI SHH SHH C CORP 1.00000 THE FRED AND LENA MEIJER HEART CENT THE FRED AND LENA MEIJER HEART CENT 100 MICHIGAN ST NE 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 830464302 MGMT MI SHH SHH C CORP 2365205 1043237 0.98270 HDVC - CHC HDVC - CHC 100 MICHIGAN ST NE 100 MICHIGAN ST NE GRAND RAPIDS MI 49503 383417270 MED. SVCS MI SHH SHH C CORP 388481 9443961 1.00000 CAMPUS TOWNE CENTER CONDO ASSC CAMPUS TOWNE CENTER CONDO ASSC 4868 LAKE MICHIGAN DRIVE 4868 LAKE MICHIGAN DRIVE ALLENDALE MI 49401 382910067 MGMT MI SHH SHH C CORP 19081 20334 0.75000 PRIORITY HEALTH INSURANCE COMPANY PRIORITY HEALTH INSURANCE COMPANY 1231 EAST BELTLINE NE 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 201529553 INSURANCE MI PH PH C CORP 130757283 41936138 1.00000 PRIORITY HEALTH MANAGED BENEFITS PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE 1231 EAST BELTLINE NE GRAND RAPIDS MI 49525 383085182 ADMIN MI SHS SHS C CORP 114304478 25950943 1.00000 MONTCALM PRIMARY CARE PHYSICIANS MONTCALM PRIMARY CARE PHYSICIANS 615 S BOWER 615 S BOWER GREENVILLE MI 48838 202544762 MED. SVCS MI SHU SHU C CORP 1.00000 BLODGETT ASSURANCE COMPANY BLODGETT ASSURANCE COMPANY 100 MICHIGAN AVE NE 100 MICHIGAN AVE NE GRAND RAPIDS MI 49503 INSURANCE CJ SHS SHS C CORP 1.00000 MICHIGAN MEDICAL PATIENT CARE MICHIGAN MEDICAL PATIENT CARE 4100 LAKE DR SE STE 300 4100 LAKE DR SE STE 300 GRAND RAPIDS MI 49546 382851295 MEDICAL MI SHS SHS C CORP 160318069 59260928 1.00000 WEST MICHIGAN HEART WEST MICHIGAN HEART 2900 BRADFORD STREET NE 2900 BRADFORD STREET NE GRAND RAPIDS MI 49525 382125186 PHYSICIANS MI SHS SHS C CORP 42634602 9048196 1.00000 MHEALTH INNOVATIONS INC MHEALTH INNOVATIONS INC 425 NORTH MAIN STREET 425 NORTH MAIN STREET ANN ARBOR MI 48104 611613614 PROD DEVL MI SHI SHI C CORP 0.99000 false false false false false false false false false false false false false false false false false false