2011-05-23T08:01:33-05:00 2010-06-30 Deloitte Tax LLP 50 South Sixth Street Suite 2800 Minneapolis MN 55402 990 2009-07-01 311527032 Sanford Health SANF 6053331000 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 Lisa Carlson 6053331000 2011-05-13 1 6123974000 2009 2016-02-24 21:20:13Z Kelby Krabbenhoft 1305 West 18th Street PO Box 5039 Sioux Falls SD 571175039 97908387 0 X www.sanfordhealth.org X 1997 SD "Dedicated to the Work of Health and Healing" 15 10 17 0 1375418 0 1833062 18942452 11629207 71876071 357258 4739729 101774 864574 13921301 96422826 815746 13903139 0 8941742 55481784 0 0 6959738 49472622 16717226 118857545 -2795925 -22434719 224858289 257700252 32448016 52733956 192410273 204966296 Sanford's mission is "Dedicated to the Work of Healing." Part of the Sanford Health System, Sanford is committed to the healthcare needs of communities throughout South Dakota, North Dakota, Minnesota and Iowa. Sanford provides a full range of primary and specialty health care services. 0 0 92533306 13903139 71876071 Sanford Health is a non-profit organization developed to promote the health of persons in its service area through planning and establishment of policy for coordination and oversight of Sanford Health's controlled organizations. Sanford Health supports its affiliated 501(c)(3) health care organizations through providing centralized services to its related organizations for such services as Human Resources, Information Technology, Payroll, Clinical Systems Improvement, Patient Financial Services, Accounts Payable, etc. 92533306 1 1 0 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 826 0 1 17 1 1 1 1 BH 0 0 0 0 0 0 0 0 15 10 1 0 1 0 1 1 1 1 1 0 1 1 0 1 1 1 1 1 1 1 1 0 X JoAnn Kunkel CFO Health Services 6053126549 1305 W 18th Street Sioux Falls SD 57105 Barbara Stork 0.50 X 0 0 0 Barry L Martin 0.50 X 0 0 0 Jim Entenman 0.50 X 0 0 0 John CVander Woude Jr 60.00 X 0 2134556 29404 Michael Olson MD 60.00 X 0 561750 53780 Ronald Moquist 0.50 X 0 0 0 Terry Baloun 0.50 X 0 0 0 Pamela Anderson 0.50 X 0 0 0 David Beito 0.50 X 0 0 0 Jerome Feder 0.50 X 0 0 0 Terrence Grimm MD 60.00 X 0 607209 41089 John Jambois 0.50 X 0 0 0 Lauris Molbert 0.50 X 0 0 0 Mark Paulson MD 60.00 X 0 225981 43832 Kelby K Krabbenhoft 60.00 X X 1123846 0 748719 Lisa Carlson 60.00 X 0 294054 49603 Becky Nelson 60.00 X 683920 0 231378 Bill Marlette 60.00 X 567500 0 275751 David Link 60.00 X 637030 0 377102 Paul Richard 60.00 X 0 286282 49603 Arlyn Broekhuis 60.00 X 350035 0 23296 Cecily Tucker 60.00 X 0 229585 25831 JoAnn Kunkel 60.00 X 352872 0 24852 Ruth Krystopolski 60.00 X 0 326948 28804 David Rossing 60.00 X 306270 0 22816 Evan Burkett 60.00 X 325827 0 23884 Mark Elliott 60.00 X 304490 0 28296 Kim Patrick 60.00 X 403448 0 61086 Rosemary Bour 60.00 X 331317 0 20613 5386555 4666365 2159739 16 0 1 0 Howalt-McDowell Insurance Inc PO Box 5113 Sioux Falls SD 57117 Insurance 5325663 Epic Systems Corp PO Box 88314 Milwaukee WI 53288 Software maintenance 4777682 Henry Carlson Co PO Box 84010 Sioux Falls SD 57118 Construction 4064236 WebMD 12186 Collections Center Dr Chicago IL 60693 Software agreement 2666667 Lawrence & Schiller Inc 3932 S Willow Avenue Sioux Falls SD 57105 Advertising 2572348 117 18873485 68967 18942452 Purch svcs allocations 541900 65367887 64258509 1109378 Occupancy 531390 5953358 5953358 Miscellaneous 900099 234272 49353 184919 Gain/Loss Joint Ventur 900099 200810 200810 Credentialing revenue 541900 119744 119744 71876071 4748003 84796 4663207 1330595 1477287 -146692 -146692 -146692 8274 -8274 -8274 -8274 Data processing/IT svc 518210 774270 774270 Educational class fees 611710 168499 168499 Architecture 541300 61500 61500 6997 6997 1011266 96422826 64508672 1375418 11596284 13903139 13903139 4145908 4145908 40092353 33929879 6162474 1179482 916900 262582 7185059 3941520 3243539 2878982 2401655 477327 1203213 1203213 119246 119246 97532 97532 7498486 3980783 3517703 5408305 4121243 1287062 4026362 3744398 281964 6271679 6268428 3251 6906141 6203284 702857 759723 196774 562949 258015 206742 51273 1889683 1319592 570091 11253936 9866036 1387900 272957 272957 Other direct expenses 3378400 1532933 1845467 Internal purch services 128944 128944 118857545 92533306 26324239 0 X 15278773 23880401 218043 1127972 2122814 2368081 6634391 3360501 193042577 49947858 128981929 143094719 53101163 57342603 9227402 10537662 5104283 8122060 4189491 7866253 224858289 257700252 6917017 11078889 817240 3435000 3260000 14671694 24388933 7424305 13188894 32448016 52733956 X 192410273 204966296 192410273 204966296 224858289 257700252 X 0 1 1 X 0 X X X 0 0 0 Sanford Medical Center 460227855 3 1 1 1 48446318 Sanford Home Health 460282134 7 1 1 1 307085 Sanford Clinic 460447693 3 1 1 1 29123176 Sanford Health Foundation 363297853 9 1 1 1 102932 4 77979511 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 1 0 0 0 1 72874 0 1 638113 710987 0 Part II-B, Line 1i: Explanation of Other Lobbying Activities: Sanford Health System employs certain individuals, and contracts with various lobbyists, to monitor legislative acts important to all Sanford entities on both state and national levels. Occasionally, Sanford employees send mailings to legislators on issues that may affect healthcare. 42172348 42172348 64553297 16364395 48188902 682497 145004 537493 76463365 33438459 43024906 9171070 9171070 143094719 Vested deferred compensation obligations 9159955 Deferred compensation 4028939 13188894 Part X, Line 2: Certain controlled organizations are subject to income taxes. Deferred income tax assets and liabilities are recognized for the differences between the financial and income tax reporting basis of assets and liabilities based on enacted tax rates and laws. A tax benefit from an uncertain tax position may be recognized when it is more likely than not that the position will be sustained upon examination. The deferred income tax provision or benefit generally reflects the net change in deferred income tax assets and liabilities during the year. The current income tax provision reflects the tax consequences of revenues and expenses currently taxable or deductible on various income tax returns for the year reported. Sanford Health did not have an income tax liability at June 30, 2010; some related organizations have established reserves. 1 AMERICAN HEART ASSOCIATION 208 S LaSalle St Ste 1500 Chicago IL 60604 135613797 501 (c) 3 8750 General support SD LIONS EYE BANK 1321 West 22nd St Sioux Falls SD 57105 460413527 501 (c) 3 7800 General support ALICK PROPERTIES 1400 West 17th St Sioux Falls SD 57104 460375953 7337 Make A Wish Foundation/office space rent SUSAN G KOMEN SD Affiliate / PO Box 90 Vermillion SD 57069 330487943 501 (c) 3 101088 General support CCHS 2501 W 26th St Sioux Falls SD 571052498 460233030 501 (c) 3 8000 General support SD SYMPHONY ORCHES 300 North Dakota Ave Ste 116 Sioux Falls SD 57104 466017026 501 (c) 3 24500 General support SDSU 815 Medary Ave PO Box 525 Brookings SD 57007 460273801 115 11500 General support UNIV OF SOUTH DAKOTA 1110 N Dakota Street PO Box 5555 Vermillion SD 570695555 466018891 115 2007237 General support AUGUSTANA COLLEGE 2001 S Summit Ave Sioux Falls SD 57197 460224588 115 635776 General support RONALD MCDONALD HOUSE 825 S Lake Ave Sioux Falls SD 571044635 460371152 501 (c) 3 75000 General support AMER DIABETES ASSOCIATION 14216 Dayton Circle Ste 6 Omaha NE 68137 131623888 501 (c) 3 9500 General support CHILDRENS HOME SOCFoundation 801 N Sycamore Ave PO Box 1749 Sioux Falls SD 571011749 460224542 501 (c) 3 6000 General support LINCOLN HIGH SCHOOL 201 E 38th Street Sioux Falls SD 57105 466002540 115 13600 General support CASA 415 N Dakota Ave PO Box 1901 Sioux Falls SD 571013001 460430647 501 (c) 3 8891 General support SOUTHEAST TECHNICAL 2320 N Career Ave Sioux Falls SD 57107 364112897 115 10000 General support SW INITIATIVE IE B 15 3rd Avenue NW Hutchinson MN 55350 411555592 501 (c) 3 6250 General support FELLOWSHIP OF CHRI 1101 W 22nd St Sioux Falls SD 57105 440610626 501 (c) 3 5000 General support NCC (Augustana) 2001 S Summit Ave Sioux Falls SD 57197 460224588 115 5000 General support NATIONAL MS SOCIETY 2508 S Carolyn Ave Sioux Falls SD 57106 450255544 501 (c) 3 17500 General support SD VOICES FOR CHILDREN PO Box 2196 Sioux Falls SD 571012196 460425502 501 (c) 3 10500 General support ALZHEIMERS ASSOCIATION 1000 N West Avenue Ste 250 Sioux Falls SD 57104 133039601 501 (c) 3 5300 General support GOVERNORS OFFICE 711 E Wells Ave Pierre SD 575013369 466000364 5500 Governor's Ag Development Summit and Governor's Hunt fundraising campaigns. LIBERTY CENTER 1721 W 51st Street Sioux Falls SD 57105 470692185 501 (c) 3 5000 General support SIOUX FALLS SCHOOLS 201 E 38th Street Sioux Falls SD 57105 466002586 115 21588 General support JUNIOR ACHIEVEMENT 1000 N West Ave 100 Sioux Falls SD 57104 460306352 501 (c) 3 19325 General support SF JAZZ & BLUES SOCIETY 123 S Main Ave Ste 204 Sioux Falls SD 57104 460418356 501 (c) 3 5000 General support FURNITURE MISSION 209 N Nesmith Sioux Falls SD 57103 810584500 501 (c) 3 9800 General support VOLUNTEERS OF AMERICA 1309 West 51st St PO Box 89306 Sioux Falls SD 571099306 237353508 501 (c) 3 30000 General support MARCH OF DIMES 1000 N West Ave Ste 230 Sioux Falls SD 57104 131846366 501 (c) 3 5000 General support BOYS & GIRLS CLUB 1111 1st Ave SE Aberdeen SD 57401 237062273 501 (c) 3 17500 General support VISION BROOKINGS 2 PO Box 431 Brookings SD 57006 364585401 501 (c) 3 5000 General support BRANDON VALLEY BOOSTER CLUB PO Box 572 Brandon SD 57005 466002577 501 (c) 6 7500 General support HANDI RIDERS INC PO Box 1604 Sioux Falls SD 57101 460378036 501 (c) 3 5000 General support SD SYNOD 2001 S Summit Ave Sioux Falls SD 57197 363512774 5000 Answer the Call fundraising campaign SIOUX FALLS SEMINARY 1525 S Grange Avenue Sioux Falls SD 57105 460237098 501 (c) 3 100000 General support FORWARD SIOUX FALLS PO Box 907 Sioux Falls SD 571010907 460396647 501 (c) 6 200000 General support SD HEALTHCARE WORK PO Box 296 Pierre SD 57501 460398115 501 (c) 3 35000 General support SD LAW ENFORCEMENT 5214 Sweetbriar Ct Sioux Falls SD 57108 460440378 115 5000 General support SPECIAL OLYMPICS 305 W 39th St Sioux Falls SD 57105 460359776 501 (c) 3 10000 General support SIOUX FALLS SPORTS 200 N Phillips Ave Ste 303 Sioux Falls SD 57104 205850491 501 (c) 3 50000 General support FAMILY CONNECTION 303 N Minnesota Ave PO Box 100 Sioux Falls SD 571010100 460435146 501 (c) 3 5000 General support DARE TO DREAM 3701 W 49th St Ste 102 Sioux Falls SD 57106 460385808 501 (c) 3 5000 General support UNIV OF WISCONSIN 600 Highland Ave Madison WI 53792 390743975 115 20000 General support RIVER CITY RACING PO Box 581 Chamberlain SD 57325 320200170 5000 Fundraiser for community of Chamberlain, SD DAKOTABILITIES 3600 S Duluth Ave Sioux Falls SD 57105 460306216 501 (c) 3 6000 General support VERMILLION NOW 116 Market St Ste 103 Vermillion SD 57069 270514271 501 (c) 3 5000 General support JUNIOR SIOUX WHEELERS 705 N West Ave Sioux Falls SD 57104 460366809 501 (c) 3 10000 General support ABERDEEN PUBLIC 1224 3rd Street South Aberdeen SD 57401 460423109 115 5000 General support MILITARY APPRECIATION PO Box 419 Sioux Falls SD 57104 261788233 501 (c) 3 13000 General support ARGUS LEADER Media Foundation 200 S Minnesota Ave Sioux Falls SD 571175034 061048875 501 (c) 3 5975 General support KILLIAN COMMUNITY 300 East 6th St Sioux Falls SD 57103 460385443 501 (c) 3 5000 General support FAMILY VISITATION 311 E 14th St Sioux Falls SD 57104 263654937 501 (c) 3 5000 General support UW FOUNDATION COMP Comprehensive Cancer Center PO Box 8860 Madison WI 53791 390743975 501 (c) 3 10000 General support SUPPORT ORG FOR TRISOMY 2982 S Union St Rochester NY 14624 942781004 501 (c) 3 10000 General support LOS CABOS CHILDRENS FOUNDATION 3800 W 53rd St Sioux Falls SD 57106 202882711 501 (c) 3 45000 General support SALUTE TO THE TROOPS PO Box 419 Sioux Falls SD 57104 261788233 501 (c) 3 5000 General support CHAMBER OF COMMERCE PO Box 1425 Sioux Falls SD 571011425 460189300 501 (c) 6 7900 General support BURNHAM INSTITUTE FOR MEDICAL RESEARCH 10901 N Torrey Pines Road LaJolla CA 92037 510197108 501 (c) 3 4000000 General support CITY OF SIOUX FALLS 224 W 9th Street Sioux Falls SD 571046407 466000425 115 1858280 General support MERITCARE RED CROSS 2602 12th St N Fargo ND 58102 450280066 501 (c) 3 12500 General support SIOUX FALLS CHRISTIAN 6120 Charger Circle Sioux Falls SD 571091110 460340024 501 (c) 3 250000 General support UNIVERSITY OF SOUTH DAKOTA 1110 N Dakota Street PO Box 5555 Vermillion SD 570695555 466018891 115 500000 General support WASHINGTON PAVILION 301 S Main Ave PO Box 984 Sioux Falls SD 571010984 460435791 501 (c) 3 115000 General support LUTHERAN SOCIAL SERVICES 705 East 41st Street Ste 200 Sioux Falls SD 571056048 460224731 501 (c) 3 5000 General support ROOSEVELT HIGH SCHOOL 201 E 38th Street Sioux Falls SD 57105 466002586 115 13711 General support SF CATHOLIC SCHOOL 3100 W 41st St Sioux Falls SD 57105 460413591 501 (c) 3 253000 General support AMERICAN CANCER SOCIETY 4904 S Technopolis Dr Sioux Falls SD 57106 410724036 501 (c) 3 16000 General support UNITED WAY 1000 North West Ave 120 Sioux Falls SD 571041314 460233701 501 (c) 3 85000 General support SF AREA COMMUNITY 300 N Phillips Ave 102 Sioux Falls SD 57104 311748533 501 (c) 3 16000 General support YMCA 230 S Minnesota Ave Sioux Falls SD 57104 460225021 501 (c) 3 117984 General support 66 4 Procedure for Monitoring Grants in the U.S.: Part I, Line 2: Schedule I, Part I, Line 2: Sanford Health monitors grant funds to ensure grants are used for proper and intended use. On an annual basis, any organization receiving a cash donation of $20,000 or more must complete an update form; the form requires the recipient to provide an update on the event, project or program benefitting from the funds. The response includes a description of the project, it's progress, benefits, and overall rate of success. This form assists Sanford Health Public Affairs in ensuring the benefactor is accountable for proper usage of the granted funds. X X X X X 1 1 X X X X X 0 1 1 0 0 0 1 1 0 John CVander Woude Jr 0 1038461 0 0 0 1096095 0 7350 0 22054 0 2163960 0 920379 Michael Olson MD 0 535584 0 1456 0 24710 0 39748 0 14032 0 615530 0 15838 Terrence Grimm MD 0 497424 0 108201 0 1584 0 32720 0 8369 0 648298 0 0 Mark Paulson MD 0 180376 0 45053 0 552 0 28836 0 14996 0 269813 0 0 Kelby K Krabbenhoft 746924 0 0 0 376922 0 730587 0 18132 0 1872565 0 79234 0 Lisa Carlson 0 292197 0 0 0 1857 0 32720 0 16883 0 343657 0 0 Becky Nelson 482308 0 0 0 201612 0 218158 0 13220 0 915298 0 31279 0 Bill Marlette 409620 0 0 0 157880 0 274383 0 1368 0 843251 0 25619 0 David Link 466351 0 0 0 170679 0 356250 0 20852 0 1014132 0 25966 0 Paul Richard 0 285250 0 0 0 1032 0 32720 0 16883 0 335885 0 0 Arlyn Broekhuis 279192 0 0 0 70843 0 7350 0 15946 0 373331 0 16667 0 Cecily Tucker 0 194847 0 0 0 34738 0 6179 0 19652 0 255416 0 10532 JoAnn Kunkel 282345 0 0 0 70527 0 7350 0 17502 0 377724 0 14816 0 Ruth Krystopolski 0 269308 0 0 0 57640 0 7789 0 21015 0 355752 0 10348 David Rossing 239210 0 0 0 67060 0 7350 0 15466 0 329086 0 28629 0 Evan Burkett 268188 0 0 0 57639 0 7350 0 16534 0 349711 0 5311 0 Mark Elliott 249231 0 0 0 55259 0 7350 0 20946 0 332786 0 7374 0 Kim Patrick 298233 0 0 0 105215 0 44784 0 16302 0 464534 0 17587 0 Rosemary Bour 259832 0 0 0 71485 0 7350 0 13263 0 351930 0 17849 0 Part I, Line 1a On Part I, Questions Regarding Compensation, Sanford checked several of the items as provided to listed persons: First Class or Charter Travel - Charter travel for business purposes is provided for individuals as needed and as cost appropriate, in accordance with written policies. These costs are not included in the W-2's of the individuals as they are incurred for business purposes of Sanford Health. Travel for Companions - Limited travel for companions is required for certain annual meetings. These costs are not included in the W-2's of the individuals as they are incurred for business purposes of Sanford Health. Tax Indemnification and gross-up payments - Certain compensation may be grossed up to include appropriate tax amounts. Health or social club dues or initiation fees - All Sanford employees are eligible for discounted wellness memberships, a portion of these discounts and other club dues are included as fringe benefits, and taxed as such. Personal services - Individuals may have benefits which include tax preparation or planning, this benefit is included in income and taxed. Part 1, Line 3: The Sanford Board of Trustees directly engages a nationally recognized independent compensation consulting firm to annually review the total compensation of arrangements of the officers of the organization, and to report findings and recommendations to the Sanford Board of Trustees for deliberation and action. The most recent study was completed in 2010. Part I, Line 4a To be in compliance with the IRS regulatory environment, listed individuals compensation includes a one-time payment of deferred compensation; this compensation was earned over multiple periods, and should be treated as earned over that length of time in exchange for services provided. These amounts were already reported in previous years as compensation. Distributions were paid to the following individuals: Arlyn Broekhuis $16,667 Bill Marlette $25,619 Cecily Tucker $10,532 Evan Burkett $5,311 David Link $25,966 David Rossing $28,629 JoAnn Kunkel $14,816 Kelby Krabbenhoft $79,234 Kim Patrick $17,587 Mark Elliott $7,374 Michael Olson $15,838 Rebecca Nelson $31,279 Rosemary Bour $17,849 Ruth Krystopolski $10,348 Part I, Line 4b / Schedule J, Part II, Column C: In addition to employer contributions to pension plans, amounts representing increases and decreases in actuarial value (actuarial value factors include age, tenure and salary) of defined contribution and defined benefit SERP Plans are included in Column C. Participants and changes in values include: Bill Marlette $245,737 David Link $318,783 Kelby Krabbenhoft $706,194 Kim Patrick $37,434 Rebecca Nelson $193,222 Part 1, Line 4c - Several listed individuals received payment distributions from a benefit plan that falls within the definition of an "equity based" compensation plan. These amounts were deferred over multiple year periods, and were included in compensation in those periods. Distributions were paid to: John VanderWoude $920,379 Part I, Line 6 Sanford physicians are compensated based on the professional services they perform within the clinic in which they provide care. Generally, the model is revenues less expenses. Physicians listed that were paid on this model include: Michael Olson, MD. Part I, Line 7 Certain Executives are eligible for a discretionary incentive bonus, based on financial targets and other goals. Supplemental Information Part III Compensation reported on Schedule J includes: (B)(i) Base compensation - salaries are based on the experience and performance of each executive and bench-marked using independent compensation survey information. (B)(ii) - Bonus & incentive compensation - as part of executive compensation, individuals may be eligible for incentive performance compensation, however if the organization does not meet its financial targets, incentive payments are not paid, regardless of performance. (B)(iii) Other Reportable Compensation - generally includes taxable executive benefits. It also includes the one-time payout of previously deferred compensation (which was also reported as compensation in the earned period). To be in compliance with the IRS regulatory environment, listed individuals compensation includes a one-time payment of deferred compensation; this compensation was earned over multiple periods, and should be treated as earned over that length of time in exchange for services provided. (C) Deferred Compensation includes employer contributions to pension plans and the increase (or decrease) in the actuarial value (actuarial value factors include age, tenure and salary) of the benefit plans. (D) Nontaxable Benefits generally includes health insurance premiums. The Sanford Board of Trustees is comprised of 15 members, including 10 volunteer community members, 4 physicians and the CEO. Compensation paid to any trustee is for full-time professional responsibilities as physicians or administrators of the organization. A memo regarding executive compensation, written by the Chairman of the Sanford Board of Trustees, is on file and available upon request. The total compensation paid to Kelby Krabbenhoft of $1,123,846 is comprised of Base salary of $746,924, the one-time payment of previously deferred compensation of $79,234 (see also explanation above) and Other Taxable Earning of $297,688. Form 990, Part VI, Section A, line 2 Lisa Carlson and Pamela Anderson have a business relationship. Becky Nelson and David Rossing have a business relationship. Form 990, Part VI, Section A, line 4 Sanford Health had significant changes to its organizational documents in its current year. Sanford Health established Sanford (f/k/a Sanford Health-MeritCare) as its sole corporate member. The Board of Trustees for Sanford Health consists of the same individuals who serve from time to time as the Board of Trustees of Sanford. Sanford Health also granted reserve powers to SHM MeritCare and SHM Sanford for the advance approval of the following: Amendments to the Articles of Incorporation or Bylaws; mergers with another entity that is not a subsidiary of Sanford or a merger in which the corporation is the surviving entity; consolidation of the corporation with another entity or dissolution of the corporation; sale of all or substantially all of its assets; or any name changes of the corporation. In addition, Sanford Health changed its fiscal year end from April 30 to June 30. Form 990, Part VI, Section A, line 6 Sanford, a tax exempt 501(c)(3) Corporation, is the sole corporate member of Sanford Health. Sanford's members are its Trustees. As Sanford Health's sole member, the Trustees of Sanford are also the Trustees of Sanford Health and as such, approve the actions of both organizations. Form 990, Part VI, Section A, line 7a The Trustees of Sanford are also the Trustees of Sanford Health and approve the actions of both organizations. Form 990, Part VI, Section A, line 7b The Trustees of Sanford approve the actions of Sanford Health. Form 990, Part VI, Section B, line 11 The Form 990 is prepared internally by the finance department and reviewed by executive management, including both the System CEO and CFO. An external accounting firm reviews the return prior to filing and presents return highlights and key disclosures to the Board of Trustees at the meeting immediately following the return filing date. After the return is filed, a complete copy is made available to the current trustees. Form 990, Part VI, Section B, line 12c The annual Conflict of Interest disclosure process is managed by the Chief Compliance Officer (CCO). The CCO is responsible for assuring that all completed forms are returned in a timely and complete manner. Conflict of Interest questionnaires are sent to Sanford Trustees, members of the governing boards of subsidiary entities, officers, and key employees. The disclosures are summarized for review by the executive committee of the Board of Trustees, pursuant to policy. This review allows: 1) The Board to acquire an awareness of financial relationships of board members and key management employees and can invoke the recusal process on a case-by-case basis when potential conflicts are implicated in Board decisions and deliberations, and, 2) Gives the Board the opportunity to seek additional information and clarification about disclosures to determine potential conflicts of interest, and how to manage such. Form 990, Part VI, Section B, line 15 The Sanford Health Board of Trustees directly engages a nationally recognized independent compensation consulting firm to annually review the total compensation arrangements of the officers and operating unit executives of the organization, including the CEO, and to report the findings and recommendations to them for deliberation and action. The deliberations and actions are recorded in the minutes of the Sanford Health Board of Trustees. The most recent study was completed in 2010. Additionally, Sanford Health periodically engages an independent compensation consultant to review and issue a report regarding the reasonableness of the total compensation arrangements of all physicians employed by the organization. The most recent study of physician total compensation arrangements was completed in 2009. Form 990, Part VI, Section C, line 19 Although the organization does not maintain a website where the public can access these documents, it would respond individually to any requests or inquiries from the public for these documents. Form 990, Part VII Form 990, Part VII: Sanford Trustees provide services to Sanford and its subsidiaries. Hours reported for each individual reflect the time spent on work related to either the filing organization or a related organization. Sanford Board of Trustees has ultimate governance responsibilities for each entity within the Sanford system. In addition, a Board of Directors is established for each entity, which has specific delegated responsibilities from the Board of Trustees related to the oversight of day to day operations of that entity. Schedule R, Part V Transactions between related organizations are computed using a cost method. Lincoln County Real Estate Trust 100 S Phillips Ave Sioux Falls SD 57104 466126929 Real Estate SD 2 586467 Sanford Health PPK Family Trust 100 S Phillips Ave Sioux Falls SD 57104 207317570 Rental Real Estate SD -4731 93 Sanford Health Lynx Trust PO Box 5186 Sioux Falls SD 57117 266167201 Investment SD 2 1 Sanford Health National Student Housing Trust-SD PO Box 5186 Sioux Falls SD 57117 206831968 Investment SD 0 440 Sanford Health Sanford ResearchUSD 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 460450378 Research SD 501(c)(3) 3 Sanford Health Sanford USD Medical Center 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 460227855 Hospital SD 501(c)(3) 3 Sanford Health Sanford Clinic 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 460447693 Clinical Services SD 501(c)(3) 3 Sanford Health Sanford Health Network 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 460388596 Hospitals/Clinics SD 501(c)(3) 11-I Sanford Health Sanford Home Health 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 460282134 Home Health Services SD 501(c)(3) 9 Sanford Health Sanford Health Foundation 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 363297853 Support of related entities SD 501(c)(3) 11-I Sanford Health Sanford World Clinics 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 262707628 Healthcare SD 501(c)(3) 3 Sanford Health Sanford 801 Broadway Drive Fargo ND 58122 271218956 Supporting Organization ND 501(c)(3) 11-II SHM-Sanford 1305 W 18th St PO Box 5039 Sioux Falls SD 571175039 271213769 Supporting Organization SD 501(c)(3) 11-II SHM-MeritCare 801 Broadway Drive Fargo ND 58122 271213717 Supporting Organization ND 501(c)(3) 11-II Sanford North PO Box 2010 Fargo ND 58122 450385890 Support services to healthcare organizations ND 501(c)(3) 11-II Sanford Sanford Medical Center Fargo PO Box 2010 Fargo ND 58122 450226909 Hospital ND 501(c)(3) 3 Sanford North Sanford Clinic North PO Box 2010 Fargo ND 58122 911770748 Clinical Services ND 501(c)(3) 9 Sanford North Sanford Health Network North PO Box 2010 Fargo ND 58122 450409348 Hospitals/Clinics ND 501(c)(3) 11-II Sanford North Sanford Medical Center Wheaton 401 12th Street North Wheaton MN 56296 272042143 Hospital/Clinic MN 501(c)(3) 3 Sanford North Sanford Health Foundation North PO Box 2010 Fargo ND 58122 450398104 Support of related entities ND 501(c)(3) 11-II Sanford North Sanford Medical Center Thief River Falls 120 Labree Ave S Thief River Falls MN 56701 410709579 Hospital MN 501(c)(3) 3 Sanford North Sanford Medical Center Mayville 42 6th Ave SE Mayville ND 58257 450228899 Hospital ND 501(c)(3) 3 Sanford North MeritCare Minnesota 1720 South Highway 59 Thief River Falls MN 56701 261530302 Promotion of health MN 501(c)(3) 3 Sanford North Agassiz Assurance Company 100 Bank Street Suite No 610 Burlington VT 05401 743121855 Malpractice insurance VT 501(c)(3) 11-II Sanford North MeritCare Health Enterprises PO Box 2010 Fargo ND 58122 450359785 Sale of prescription drugs ND 501(c)(4) Sanford North F-M Ambulance Service 2215 18 St South Fargo ND 58103 450344371 Emergency Medical Transport Service ND 501(c)(4) Sanford North National Student Housing-South Dakota LLC 100 S Phillips Ave Sioux Falls SD 57104 202129839 Investment SD Sanford Health Related -72068 4427163 0 0 RAC Rentals LLC 100 S Phillips Ave Sioux Falls SD 57104 261961077 Investment SD Sanford Health Related 21107 2862955 0 0 Heart Partners at Sanford 1305 West 18th Street Sioux Falls SD 57117 460449572 Healthcare SD Sanford Health C 170080 6275980 1.00000 Sanford Home Medical Equipment 2710 W 12th Street Sioux Falls SD 57105 460388597 Healthcare Equipment SD Sanford Health C -644544 9920849 1.00000 Sanford Health Plan 1305 West 18th Street Sioux Falls SD 57117 911842494 Insurance SD Sanford Health C -438195 24420315 1.00000 Sanford Health Plan of Minnesota 1305 West 18th Street Sioux Falls SD 57117 460445852 Insurance MN Sanford Health C -290830 2268604 1.00000 Healthcare Environmental Services Inc 1420 40th St NW Fargo ND 58102 450336598 Laundry and Incineration Services ND Sanford North C 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 Sanford Medical Center Q 399746059 Sanford Medical Center B 2163445 Sanford Health Foundation Q 2092739 Sanford Health Plan Q 18773718 Sanford Health Plan R 18773718 Sanford Health Plan of MN Q 295474 Sanford Health Plan of MN R 295474 Sanford Clinic Q 204980245 Sanford Clinic B 109449 Sanford Home Medical Equipment Q 11152070 Sanford Home Medical Equipment R 11152070 Sanford Home Medical Equipment A 84796 Sanford Home Health Q 5607317 Sanford Home Health B 202040 Sanford Health Network Q 167691403 Sanford Health Network B 2500 Sanford Research USD Q 16358329 Sanford Research USD R 16358329 Sanford Health Foundation C 18221635 Sanford Research USD B 180807 Sanford Medical Center C 651849