| Form 990, Part III, Line 4a SPECTRUM HEALTH HOSPITAL GROUP, CONTINUED |
SPECTRUM HEALTH HOSPITAL GROUP SPECTRUM HEALTH HOSPITALS - GRAND RAPIDS ("SHH") CONSISTS OF BLODGETT HOSPITAL & BUTTERWORTH HOSPITAL (THE CAMPUS OF WHICH INCLUDES THE HELEN DEVOS CHILDREN'S HOSPITAL, THE FRED AND LENA MEIJER HEART CENTER, AND THE LEMMEN- HOLTON CANCER PAVILION) WITH APPROXIMATELY 1,170 LICENSED BEDS COMBINED. THE HOSPITALS ARE ACUTE CARE INPATIENT FACILITIES WHICH INCLUDE SPECIALTY CRITICAL CARE UNITS & OUTPATIENT SERVICES. BUTTERWORTH IS THE ONLY LEVEL I TRAUMA CENTER IN WEST MICHIGAN. BLODGETT IS HOME TO THE CENTER FOR ACUTE REHABILITATION, A 30-BED INPATIENT FACILITY HELPING PATIENTS REGAIN INDEPENDENCE. HELEN DEVOS CHILDREN'S HOSPITAL IS MICHIGAN'S LARGEST NEONATAL CENTER, CARING FOR MORE THAN 1,400 CRITICALLY ILL AND PREMATURE BABIES ANNUALLY. THE FRED AND LENA MEIJER HEART CENTER IS A LEADER IN HEART AND VASCULAR CARE IN THE REGION, STATE, AND NATION. LEMMEN-HOLTON CANCER PAVILION IS THE LARGEST CANCER SERVICES PROVIDER IN THE REGION. TOGETHER THESE RESOURCES PROVIDE A COORDINATED CONTINUUM OF HEALTH CARE SERVICES TO THE CITIZENS OF WEST MICHIGAN AND TREAT ALL PATIENTS REGARDLESS OF THEIR ABILITY TO PAY. NOTABLE HIGHLIGHTS FOR THE YEAR INCLUDE: - FOR THE SIXTH TIME, SPECTRUM HEALTH WAS NAMED ONE OF THE NATION'S 15 TOP HEALTH SYSTEMS-AND IN THE TOP FIVE AMONG THE LARGEST HEALTH SYSTEMS-IN 2017 BY TRUVEN HEALTH ANALYTICS. - SPECTRUM HEALTH WAS AWARDED THE 2016 FOSTER G. MCGAW PRIZE DURING FY2017 FOR EXCELLENCE IN COMMUNITY SERVICE AND RECEIVED $100,000 FOR PROGRAMS CREATING HEALTHIER AND STRONGER COMMUNITIES. THIS AWARD RECOGNIZES THE ACHIEVEMENTS OF HOSPITALS AND HEALTH SYSTEMS AND INSPIRES STRONG PARTNERSHIPS THAT SIGNIFICANTLY IMPROVE THE HEALTH AND WELL-BEING OF THEIR COMMUNITIES. SPECTRUM HEALTH HEALTHIER COMMUNITIES' PARTNERS WITH THE COMMUNITY TO FOCUS ON MATERNAL AND INFANT HEALTH, CHILDREN'S HEALTH, AND PREVENTING AND MANAGING CHRONIC DISEASE. - HELEN DEVOS CHILDREN'S HOSPITAL WAS NAMED ONE OF U.S. NEWS & WORLD REPORT'S 2017-18 BEST CHILDREN'S HOSPITALS IN SIX PEDIATRIC SPECIALTIES: CANCER, NEPHROLOGY, CARDIOLOGY & HEART SURGERY, ORTHOPEDICS, PULMONOLOGY AND UROLOGY. THIS WAS THE SIXTH CONSECUTIVE YEAR HELEN DEVOS CHILDREN'S HOSPITAL WAS RECOGNIZED. - BUTTERWORTH AND BLODGETT HOSPITALS RECEIVED THE HEALTHGRADES 2017 AMERICA'S 50 BEST HOSPITALS AWARD FOR A THIRD CONSECUTIVE YEAR (2015-2017). THIS DISTINCTION PLACES BUTTERWORTH AND BLODGETT IN THE TOP ONE PERCENT OF MORE THAN 4,500 HOSPITALS NATIONWIDE FOR THEIR CONSISTENT, YEAR-OVER-YEAR SUPERIOR CLINICAL PERFORMANCE AS MEASURED BY HEALTHGRADES. - BUTTERWORTH HOSPITAL RECEIVED THE HEALTHGRADES 2017 DISTINGUISHED HOSPITAL AWARD FOR CLINICAL EXCELLENCE FOR THE TENTH CONSECUTIVE YEAR IN JANUARY 2017 (2008-2017). ONLY 24 HOSPITALS NATIONWIDE HAVE EARNED THIS DISTINCTION FOR 10 YEARS IN A ROW. SPECTRUM HEALTH HOSPITAL GROUP - COMMUNITY HOSPITALS SPECTRUM HEALTH HOSPITAL GROUP INCLUDES EIGHT COMMUNITY HOSPITALS LOCATED ACROSS WESTERN MICHIGAN, ALL DEDICATED TO THE COMMUNITIES THEY SERVE, AS IDENTIFIED BELOW: -NEWAYGO COUNTY GENERAL HOSPITAL ASSOCIATION D/B/A SPECTRUM HEALTH GERBER MEMORIAL ("SHGM") -MEMORIAL MEDICAL CENTER OF WEST MICHIGAN D/B/A SPECTRUM HEALTH LUDINGTON HOSPITAL ("SHL") -MECOSTA COUNTY MEDICAL CENTER D/B/A SPECTRUM HEALTH BIG RAPIDS HOSPITAL ("SHBR") -REED CITY HOSPITAL CORPORATION D/B/A SPECTRUM HEALTH REED CITY HOSPITAL ("SHRC") -PENNOCK HOSPITAL D/B/A SPECTRUM HEALTH PENNOCK ("SHP") -SPECTRUM HEALTH UNITED ("SHU") -SPECTRUM HEALTH KELSEY ("SHK") -ZEELAND COMMUNITY HOSPITAL D/B/A SPECTRUM HEALTH ZEELAND COMMUNITY HOSPITAL ("SHZ") THE COMMUNITY HOSPITALS OF SPECTRUM HEALTH HOSPITAL GROUP PROVIDE APPROXIMATELY 470 LICENSED BEDS COMBINED AND OFFER A COMPLETE RANGE OF AWARD WINNING MEDICAL AND SURGICAL SERVICES, REGARDLESS OF A PATIENT'S ABILITY TO PAY, TO THE RESIDENTS AND VISITORS OF THE HOSPITALS' LOCAL COMMUNITIES. SERVICES OFFERED BY THE COMMUNITY HOSPITALS INCLUDE 24-HOUR EMERGENCY DEPARTMENTS, ACUTE INTENSIVE CARE, OBSTETRICS, SKILLED NURSING, AND OUTPATIENT SERVICES INCLUDING LAB, IMAGING, PHYSICAL THERAPY AND SPORTS MEDICINE. IN ORDER TO GIVE BACK TO THE COMMUNITIES IN WHICH THEY SERVE, THE COMMUNITY HOSPITALS OFFER SERVICES AND PROGRAMS AVAILABLE TO ALL MEMBERS OF THE COMMUNITY AND LOCAL SCHOOLS. EXAMPLES OF THESE SERVICES INCLUDE: FLU SHOT CLINICS, HEALTH FAIRS, CANCER SCREENINGS, LOW-COST SPORTS PHYSICALS, FIRST AID TENTS, EDUCATION AND NUTRITION CLASSES, AND FAMILY FUN NIGHTS. SPECTRUM HEALTH CONTINUING CARE SPECTRUM HEALTH CONTINUING CARE PROVIDES PATIENTS AND THEIR FAMILIES WITH A SEAMLESS CONTINUUM OF COMPREHENSIVE CARE, INCLUDING SKILLED NURSING, LONG-TERM ACUTE, REHABILITATION AND HOME CARE. SPECTRUM HEALTH CONTINUING CARE INCLUDES THE FOLLOWING ENTITIES: -SPECTRUM HEALTH CONTINUING CARE ("SHCC") -SPECTRUM HEALTH CONTINUING CARE CENTER ("SHCCC") -SPECTRUM HEALTH KENT COMMUNITY CAMPUS ("SHKCC") -SPECTRUM HEALTH WORTH SERVICES ("SHWS") -VISITING NURSE SERVICES OF WESTERN MICHIGAN ("VNS") SHCC PROVIDES LEADERSHIP, PLANNING, AND FUNDING TO ASSIST OUR POST-ACUTE CARE ORGANIZATIONS IN PROVIDING MEDICAL CARE TO PATIENTS, IN ORDER TO MEET THE COMMUNITY'S NEEDS. ADDITIONALLY, SHCC PROVIDES HOSPICE CARE THAT IS CENTERED ON COMFORT AND SUPPORTED BY COMPASSION FOR THOSE WHO ARE EXPERIENCING A LIFE-LIMITING ILLNESS AND A TERMINAL DIAGNOSIS. SHCCC PROVIDES LONG TERM CARE IN A NURSING HOME SETTING THAT ALLOWS PATIENTS TO EXPERIENCE THE BEST QUALITY OF LIFE, WHILE ENSURING THEY HAVE THE AROUND-THE-CLOCK CARE THEY NEED. SHKCC PROVIDES LONGER TERM ACUTE CARE TO MEET THE NEEDS OF PATIENTS WHO REQUIRE LONGER HEALING AND RECOVERY TIME FOR A SPECIFIC, MEDICALLY COMPLEX HEALTH NEED. SHKCC'S SPECIAL CARE HOSPITAL IS THE ONLY NON-PROFIT LONG TERM ACUTE CARE HOSPITAL IN GRAND RAPIDS, MICHIGAN. SHWS PROVIDES FOR THE CARE OF CHILDREN, ADULTS, AND SENIOR CITIZENS WHO NEED EXTRA HELP IN THEIR HOME FROM PRIVATE DUTY NURSES OR HOME HEALTH ASSISTANCE AS WELL AS CARE AND REHABILITATION SERVICES TO INDIVIDUALS WHO SUFFERED A BRAIN INJURY AND ARE ABLE TO LIVE INDEPENDENTLY BUT REQUIRE 24 HOUR SUPERVISION. VNS PROVIDES INTERMITTENT SKILLED HOME HEALTH CARE. UNDER THE DIRECTION OF A PRIMARY CARE PHYSICIAN, MEDICAL AND SURGICAL NURSES DELIVER PATIENT ASSESSMENTS, MEDICAL TREATMENTS (SUCH AS INFUSION THERAPY, WOUND CARE AND MEDICATION INSTRUCTION), AND DISEASE MANAGEMENT EDUCATION. |
| Form 990, Part III, Line 4b SPECTRUM HEALTH MEDICAL GROUP, CONTINUED |
SPECTRUM HEALTH PRIMARY CARE PARTNERS D/B/A SPECTRUM HEALTH MEDICAL GROUP ("SHMG") PROVIDES CLINICAL, TEACHING, RESEARCH AND ADMINISTRATIVE PHYSICIAN SERVICES. THESE SERVICES ARE PROVIDED IN AMBULATORY PRACTICES, INPATIENT SETTINGS, AND TEACHING ENVIRONMENTS. SHMG BRINGS TOGETHER THE FINEST PHYSICIANS AND MEDICAL RESOURCES TO GIVE PATIENTS THE BEST HEALTH OUTCOMES AND THE HIGHEST LEVEL OF SERVICE. WITH OVER 1,500 PROVIDERS, a broad range of MEDICAL SPECIALTIES AND SERVICE SITES across the region, SHMG IS THE REGION'S LARGEST MULTISPECIALTY MEDICAL GROUP. FROM FAMILY MEDICINE TO SPECIALIZED CARE, FROM ANNUAL HEALTH CHECKUPS TO COMPLEX SURGERY AND MEDICAL MANAGEMENT, SHMG OFFERS PATIENTS A MEDICAL HOME FOR A LIFETIME OF CARE AND WELLNESS. SHMG'S GOAL IS TO PROVIDE AN UNPARALLELED SYSTEM OF CARE THAT OFFERS FAMILY MEDICINE AND SPECIALIZED CARE, CLOSE CONVENIENT LOCATIONS AND HOURS, COORDINATED APPOINTMENTS AND MEDICAL RECORDS FOR EASE OF SCHEDULING, AND HIGH QUALITY CONSISTENT CARE. SHMG IS A GATEWAY TO SPECTRUM HEALTH'S MANY QUALIFIED AND HIGHLY SKILLED SPECIALISTS AND COMPREHENSIVE SERVICES. BY BRINGING PROVIDERS TOGETHER AS AN INTEGRATED TEAM, SHMG CREATES SEAMLESS ACCESS AND COORDINATED SERVICES TO PATIENTS. ADDITIONALLY, THE HIGH CALIBER MEDICAL PROFESSIONALS AT SHMG THRIVE ON COLLABORATIVE RESEARCH AND MEDICAL EDUCATION. SHMG IS DEEPLY COMMITTED TO ADVANCING PATIENT CARE AND BUILDING A SUSTAINABLE HEALTH CARE SYSTEM FOR CURRENT AND FUTURE GENERATIONS. |
| Form 990, Part III, Line 4c SPECTRUM HEALTH FOUNDATION, CONTINUED |
SPECTRUM HEALTH FOUNDATION ("SHF") ADVANCES THE HEALTH OF WEST MICHIGAN COMMUNITIES BY PHILANTHROPICALLY SUPPORTING THE HEALTH CARE, RESEARCH, AND EDUCATIONAL PROGRAMS OF THE SPECTRUM HEALTH INTEGRATED HEALTH SYSTEM. SHF PROVIDES FUNDING FOR PROGRAMS, RESEARCH AND EDUCATION, AND HELPS TO ADVANCE INNOVATION, PURCHASE NEW TECHNOLOGY AND BUILD STATE-OF-THE-ART FACILITIES. THE FOUNDATION EXISTS TO MEET THE NEEDS OF PATIENTS AND FAMILIES WITH FUNDS THAT SUPPLEMENT THE HEALTH SYSTEM RESOURCES. SHF CAREFULLY MATCHES PASSIONATE DONORS WITH IMMEDIATE AND EMERGING NEEDS THROUGHOUT THE HEALTH SYSTEM. THANKS TO THE GENEROSITY OF DONORS THE FOUNDATION IS ABLE TO HELP LAUNCH, EXPAND AND SUSTAIN IMPORTANT PROGRAMS AND SERVICES THAT PROMOTE HEALTH AND HEALING. IN FY2017, SHF PROVIDED OVER $18 MILLION IN GRANTS TO ORGANIZATIONS WITHIN THE HEALTH SYSTEM. |
| Form 990, Part IV, Line 12a Audited Financial Statements |
The "No" response to this question relates to the fact that none of the organizations included in the group return obtained separate, independent financial statements for the tax year. All organizations included in the group return were part of the same consolidated audit. |
| Form 990, Part V, Line 3a UNRELATED GROSS BUSINESS INCOME |
THE FOLLOWING ORGANIZATIONS INCLUDED IN THE GROUP RETURN HAVE UNRELATED BUSINESS GROSS INCOME OR LOSS OF $1,000 OR MORE DURING THE YEAR. THE UNRELATED BUSINESS INCOME OF THESE ORGANIZATIONS IS REPORTED ON FORM 990-T. SPECTRUM HEALTH HOSPITALS (EIN 38-1360529) SPECTRUM HEALTH GERBER MEMORIAL (EIN 38-1359517) SPECTRUM HEALTH PENNOCK (EIN 38-1360562) |
| Form 990, Part V, Line 7a DEDUCTIBLE CONTRIBUTIONS |
THE FOLLOWING ORGANIZATIONS INCLUDED IN THE GROUP RETURN RECEIVED A PAYMENT IN EXCESS OF $75 MADE PARTLY AS A CONTRIBUTION AND PARTLY FOR GOODS AND SERVICES PROVIDED TO THE PAYOR. SPECTRUM HEALTH LUDINGTON (EIN 38-1359266) SPECTRUM HEALTH FOUNDATION (EIN 38-2752328) |
| Form 990, Part VI, Line 16a JOINT VENTURES |
THE FOLLOWING ORGANIZATIONS INCLUDED IN THE GROUP RETURN PARTICIPATE IN JOINT VENTURES WITH TAXABLE ENTITIES: SPECTRUM HEALTH HOSPITALS (EIN 38-1360529) |
| Form 990, Part VI, Line 2 BUSINESS RELATIONSHIPS |
THE ORGANIZATION HAS BOARD MEMBERS AND OFFICERS THAT SERVE TOGETHER ON THE BOARDS OF TAX-EXEMPT ORGANIZATION ACROSS SPECTRUM HEALTH SYSTEM. |
| Form 990, Part VI, Line 2 Family/business relationships amongst interested persons |
SHH - Mr. Richard Breon and Ms. Joan Budden - Business relationship, SHH - DR. ROBERT CONNORS AND DR. SETH WOLK - Business relationship, SHMG - Ms. Pauline Krywanski, Mr. Thomas McGraw and Dr. Seth Wolk - Business relationship, SHMG - MR. RICHARD BREON, MS. JOAN BUDDEN, DR. SETH WOLK, MS. CHRISTINA FREESE-DECKER - Business relationship, SHMG - DR. SETH WOLK AND DOUGLAS APPLE - Business relationship |
| Form 990, Part VI, Line 4 Significant changes to organizational documents |
Duties of the organizations' officers and/or role of the membership in governance: 1. Spectrum Health Hospital Group ("SHHG") - permit a designee of the System President and CEO to exercise fully authority of the SHHG board with respect to hiring, discharge and evaluation of the SHHG President. 2. SHHG - addition of a Governance Committee. 3. Spectrum Health Primary Care Partners d/b/a Spectrum Health Medical Group ("SHMG") - to permit a designee of the System President and CEO to exercise the full authority of the SHMG board with regard to: (1) hiring, discharge and evaluation of its President; (2) elimination of an existing division; (3) reduction of governance group representation and appointment of non-voting governance group appointees; (4) approval of alternative arrangements whereby department and/or division management is modified as part of a shared management or governance arrangement; and (5) determination of decision-making jurisdiction and resolution of conflicts between in such shared management or governance arrangement. Number, composition, authority, or duties of the governing body's voting members, voting approval requirements of the governing body: 1. SHMG - establish voting directors who do not represent its Governance Groups and reduced its Governance Group representatives and allow for appointment of board members at any meeting, not just the annual System meeting. |
| Form 990, Part VI, Line 6 Classes of members or stockholders |
SPECTRUM HEALTH SYSTEM (EIN 38-3382353), A MICHIGAN NONPROFIT CORPORATION, IS THE ULTIMATE SOLE MEMBER FOR ALL OF THE SUBORDINATES INCLUDED IN THE GROUP FILING. |
| Form 990, Part VI, Line 7a Members or stockholders electing members of governing body |
SPECTRUM HEALTH SYSTEM (EIN 38-3382353), THE ULTIMATE SOLE MEMBER FOR ALL OF THE SUBORDINATES INCLUDED IN THE GROUP FILING, APPOINTS THE MEMBERS OF THE BOARD FOR EACH RESPECTIVE ORGANIZATION. |
| Form 990, Part VI, Line 7b Decisions requiring approval by members or stockholders |
SPECTRUM HEALTH SYSTEM, AS THE ULTIMATE SOLE MEMBER FOR ALL OF THE SUBORDINATES INCLUDED IN THE GROUP FILING, HAS RETAINED CERTAIN RESERVED POWERS IN THE ORGANIZATION EXCLUSIVELY, WHICH SHALL NOT BE DEEMED AUTHORIZED UNLESS AND UNTIL APPROVED BY THE SOLE MEMBER OF ORGANIZATION: - ELECTION AND/OR REMOVAL OF THE MEMBERS OF THE ORGANIZATION'S BOARD OF DIRECTORS AND THE ORGANIZATION'S CHAIR OF THE BOARD; - APPROVAL OF ALL ORGANIZATION'S (OR AN ENTITY DIRECTLY OR INDIRECTLY CONTROLLED BY THE ORGANIZATION ("SUBSIDIARY")) CAPITAL EXPENDITURES IN EXCESS OF THE AMOUNT SPECIFIED IN THE AUTHORITY MATRIX, ADOPTED BY THE SOLE MEMBER OF ORGANIZATION AND AS AMENDED BY THE SOLE MEMBER OF ORGANIZATION FROM TIME TO TIME ("AUTHORITY MATRIX AMOUNT"); - APPROVAL OF ALL BORROWING BY THE ORGANIZATION OR A SUBSIDIARY FOR CAPITAL OR OPERATING PURPOSES, AND ALL GUARANTEES OF INDEBTEDNESS, INCLUDING ANY OPERATING LEASE IN AN AMOUNT GREATER THAN ONE MILLION DOLLARS ($1,000,000) DURING THE INITIAL LEASE TERM, NOT INCLUDING RENEWALS AND/OR EXTENSIONS; - APPROVAL OF ALL LOANS IN EXCESS OF THE AUTHORITY MATRIX AMOUNT BY THE ORGANIZATION OR A SUBSIDIARY TO PERSONS OR ENTITIES OTHER THAN THE SOLE MEMBER OF ORGANIZATION OR AN ENTITY CONTROLLED BY THE SOLE MEMBER OF ORGANIZATION; - THE CREATION OF ANY ENTITY CONTROLLED, DIRECTLY OR INDIRECTLY, BY THE ORGANIZATION; AND - THE ORGANIZATION'S OR ANY SUBSIDIARY'S INVESTMENTS OF CASH AND/OR RESERVES, WHETHER ON AN INDIVIDUAL BASIS OR AS PART OF A POOLED INVESTMENT STRATEGY. - HIRING, DISCHARGE, AND EVALUATION OF THE ORGANIZATION'S PRESIDENT AND/OR CEO AS DELEGATED BY THE SOLE MEMBER OF ORGANIZATION'S BOARD OF DIRECTORS TO THE SOLE MEMBER OF ORGANIZATION'S CHIEF EXECUTIVE OFFICER (OR DESIGNEE) OR SHHG'S PRESIDENT; - THE ADOPTION OF THE ANNUAL OPERATING AND CAPITAL BUDGETS OF THE ORGANIZATION, AND ANY AMENDMENTS TO SUCH BUDGETS IN EXCESS OF THE AUTHORITY MATRIX AMOUNT; - THE ADOPTION OF THE ORGANIZATION'S STRATEGIC PLANS; - THE ADOPTION OF AMENDMENTS TO THE ARTICLES OF INCORPORATION OR BYLAWS OF THE ORGANIZATION; - MERGER OR CONSOLIDATION OF THE ORGANIZATION OR A SUBSIDIARY, ANY OTHER CHANGE IN CONTROL, OWNERSHIP PERCENTAGES OR CAPITAL STRUCTURE OF THE ORGANIZATION OR A SUBSIDIARY; - SALE OR TRANSFER OF MORE THAN TEN PERCENT (10%) OF THE ASSETS OF THE ORGANIZATION OR A SUBSIDIARY TO ANY PERSON OR ENTITY NOT CONTROLLED BY THE SOLE MEMBER OF ORGANIZATION; - DISSOLUTION OF THE ORGANIZATION; - THE SELECTION AND RETENTION OF AUDITORS FOR THE ORGANIZATION OR A SUBSIDIARY; AND - ANY OTHER APPROVAL FOR WHICH THE SOLE MEMBER OF ORGANIZATION'S APPROVAL IS REQUIRED BY LAW. |
| Form 990, Part VI, Line 11b Review of form 990 by governing body |
A copy of the Form 990 is provided to the Board of Directors prior to filing. The review process for this Form 990 is as follows: 1. Preparation of the return is supervised and reviewed by the Organization's Corporate Tax Manager. 2. A second review is performed by an external CPA firm with expertise in tax-exempt return preparation. 3. The return is reviewed by the Organization's finance and legal departments (including the Chief Financial Officer, Chief Legal Officer and Corporate Controller) and shared with the members of the Finance and audit Committee and Board of Directors. 4. The Organization's Chief Financial Officer 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. |
| Form 990, Part VI, Line 12c Conflict of interest policy |
BOARD OF DIRECTORS 1. Conflicts of interest must be disclosed, BOTH VIA AN ANNUAL ELECTRONIC DISCLOSURE 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 the organization's best interest. 4. The Board of Directors or committee shall exercise due diligence to determine whether the organization 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 the organization's best interest and for its own benefit and whether the transaction is fair and reasonable to the organization, 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 of the organization's committees shall set forth: a)The names of the persons who disclosed a financial interest in a proposed transaction or arrangement involving the organization 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. 7. There is an ongoing requirement that members of the board of directors complete another disclosure questionnaire at any point during his/her tenure on the board of directors when a new potential conflict of interest arises. If a member of the board of directors completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments for review. MANAGEMENT 1. Upon acceptance of an employment offer, each member of management completes a conflict of interest disclosure questionnaire. A copy of the member of management's disclosure questionnaire is sent to the organization's organizational integrity department. A copy of the member of management's disclosure is reviewed by the organization's COI coordinator and escalated to the COI Committee if necessary. 2. Annually, each member of management completes a conflict of interest disclosure questionnaire electronically. The disclosure questionnaire is reviewed by the legal, organizational integrity, internal audit, and human resources departments. 3. There is an ongoing requirement that members of management complete another disclosure questionnaire at any point during his/her employment when a new potential conflict of interest arises. If a member of management completes a disclosure questionnaire as a result of a new potential conflict of interest, that disclosure questionnaire is submitted to the legal, organizational integrity, internal audit, and human resources departments. 4. The legal, organizational integrity, internal audit, and human resources departments, in consultation with executive management, determine how any reported conflicts should be managed. Management of a conflict may take a variety of different forms from implementation of a management plan to requiring that the member of management cease the activity creating the conflict or, in extreme cases, leave the organization's employment. Management is determined on an individual basis based upon the facts and circumstances surrounding the disclosure. The purpose of conflict management is to provide transparency within the organization and to ensure that the organization's employees are always acting in the best interest of the organization. |
| Form 990, Part VI, Line 15a Process to establish compensation of top management official |
The Spectrum Health System Board of Directors (through its Executive Committee) uses the following process for determining compensation of the top management official, other officers, and key employees at Spectrum Health. Labor market data reflecting comparable organizations and jobs (prepared by independent firms) are relied upon. Competitive assessment reports are provided to the Executive Committee in advance of meetings. The competitive assessment report is prepared by a nationally known independent executive compensation firm. For FY 2017 (7/1/16-6/30/17), four health care executive compensation surveys, three medical group surveys, two pediatric hospital surveys and one health plan survey prepared by independent firms were the primary sources referenced to obtain market data for the review: * American Medical Group Association: 2015 Medical Group Compensation & Financial Survey * Integrated Healthcare Strategies: 2015 Children's Hospitals Executive Compensation Survey * Integrated Healthcare Strategies: 2015 Health Care Executive Compensation Survey * Mercer Human Resources Consulting: 2015 Integrated Health Networks Compensation Survey * Medical Group Management Association: 2015 Management Compensation Survey * Sullivan, Cotter and Associates: 2015 Survey of Manager and Executive Compensation in Hospitals and Health Systems * Sullivan, Cotter and Associates: 2015 Custom Survey of Manager and Executive Compensation in Children's Hospitals * Sullivan, Cotter and Associates: 2015 Physician Compensation and Productivity Survey Report * Towers Watson: 2015 Hospital and Health Care Management Compensation Survey Report * Warren: Fall 2015 HMO Salary Survey In addition, one retirement community survey and four general industry surveys were referenced: * Rodeghero Consulting Group, Inc.: 2015 AAHA-CEMO Leadership Compensation Survey * Mercer: 2015 Executive Compensation Survey * Mercer: 2015 Information Technology Survey * Mercer: 2015 Human Resources Survey * Towers Watson: 2015 Top Management Compensation Report In addition to the above data sources, the Executive Committee approved the creation of a custom peer group of high performing integrated health systems to ensure robust data and a relevant comparator universe. The peer group organizations are approved by the Executive Committee and consist of double A bond rated and / or Truven top quintile organizations. Data for the peer group organizations is compiled by the independent executive compensation firm. Compensation adjustments are approved by Executive Committee members, consistent with the Spectrum Health compensation philosophy described below. Minutes of Committee discussions and decisions are prepared to memorialize Executive Committee decisions based upon the above data. Cash compensation data relied upon by the Executive Committee is national and reflects the compensation paid to executives in comparable jobs in comparably-sized health care and / or health insurance organizations. Spectrum Health recruits nationally for its executives. Benefits data reflect national health care / health insurance market practices. Geographic pay differential and cost of living data indicates consistency with national data. This process is intended to assist Spectrum Health in qualifying for the rebuttable presumption of reasonableness (Intermediate Sanctions Regulations) and complying with the potential Spectrum Health Excess Benefit Transaction Policy for those individuals in the group who are disqualified persons. The opinion submitted from the third party independent consulting firm is in accordance with the provisions of Treasury Regulations Section 53.4958-6(c)(2) and is also intended to satisfy the professional advice requirement of Treasury Regulations Section 53.4958-1(d)(4)(iii). |
| Form 990, Part VI, Line 15b Process to establish compensation of other employees |
See explanation provided for Form 990, Part VI, Line 15A. |
| Form 990, Part VI, Line 19 Required documents available to the public |
The organization's Articles of Incorporation have been provided to the State of Michigan and are available to the public on the State's website. The organization's Bylaws and internal policies are generally not made available to the public. The overall system consolidated financial statements are provided at www.spectrumhealth.org in the section titled "About Us". |
| Form 990, Part VII, Section A Reported Compensation and Hours |
THE COMPENSATION REPORTED FOR EMPLOYEES OF THE ORGANIZATION IS NOT FOR SERVICES IN THEIR CAPACITY AS MEMBERS OF THE BOARD OF DIRECTORS BUT FOR SERVICES AS EMPLOYEES OF THE Health System. CERTAIN DIRECTORS WERE PAID REASONABLE COMPENSATION FOR THEIR SERVICES AS MEMBERS OF THE BOARD. CONSISTENT WITH PRIOR YEARS, COMPENSATION AND BENEFITS ARE REPORTED USING THE MOST RECENT CALENDAR YEAR COMPENSATION DATA. THE COMPENSATION FIGURES REPORTED IN THESE SECTIONS ARE FOR THE YEAR ENDED DECEMBER 31, 2016. EMPLOYEES WITH COMPENSATION REPORTED IN PART VII WORK A COMBINED AVERAGE OF 50 HOURS PER WEEK FOR THE Health System. |
| Form 990, Part VII, Section A Compensation of Directors |
Based on external opinion by Sullivan Cotter and Associates, Inc., Spectrum Health System compensates board members in a manner that is reasonable in relation to market data. Board of directors compensation is continually reviewed to confirm compensation falls within reasonable limits. Any compensation amount is treated as taxable to the board member and is reported and provided to them on Form 1099. |
| Form 990, Part VII, Section A Wilson, Mark ADDITIONAL POSITIONS HELD |
Organization Name: Zeeland Community Hospital, Title: Chair, SHZ, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Hospitals, Title: Treasurer, SHH, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Freese-Decker, Christina ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: President, SHH - Part Year, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Kelsey, Title: Former President, SHK, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health United, Title: Former President, SHU, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Primary Care Partners , Title: Director, SHMG, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Hospitals, Title: Director, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Holmquist, Charles ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: Director, SHH, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Mecosta County Medical Center, Title: Chair, SHBR, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Reed City Hospital Corporation, Title: Chair, SHRC, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Mack, David ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health United, Title: Vice Chair, SHU - Part Year, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Kelsey, Title: Vice Chair, SHK - Part Year, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Hospitals, Title: Director, SHH, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Chircop, Marc ADDITIONAL POSITIONS HELD |
Organization Name: Newaygo County General Hospital Association, Title: Director, SHGM, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Reed City Hospital Corporation, Title: Director, SHRC, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health United, Title: Director, SHU, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Kelsey, Title: Director, SHK, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Continuing Care, Title: Chair, SHCC, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Hospitals, Title: SVP, Regional Relations, SHH, AverageHours: 40.000; Officer Organization Name: Zeeland Community Hospital, Title: Director, SHZ, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Memorial Medical Center of West Michigan, Title: Director, SHL, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Mecosta County Medical Center, Title: Director, SHBR, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Pennock Hospital, Title: Director, SHP, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Welday, Douglas ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: SVP, Finance, SHH, AverageHours: 49.000; Officer Organization Name: Spectrum Health Continuing Care, Title: Treasurer, SHCC, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Tuttle, Chad ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Continuing Care, Title: President / Secretary, SHCC, AverageHours: 42.000; IndividualTrusteeOrDirectorOfficer Organization Name: Visiting Nurse Services of Western Michigan, Title: President / Chair, VNS, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Continuing Care Center, Title: President / Chair, SHCCC, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Worth Services, Title: President / Chair, SHWS, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health- Kent Community Campus, Title: President / Chair, SHKCC, AverageHours: 2.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Smith, Kevin ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Continuing Care, Title: Controller, SHCC, AverageHours: 46.000; Officer Organization Name: Visiting Nurse Services of Western Michigan, Title: Director, VNS, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Continuing Care Center, Title: Secretary / Treasurer, SHCCC, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Worth Services, Title: Director, SHWS, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health- Kent Community Campus, Title: Secretary / Treasurer, SHKCC, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Pakkala, Karen ADDITIONAL POSITIONS HELD |
Organization Name: Visiting Nurse Services of Western Michigan, Title: Secretary / Treasurer, VNS, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Continuing Care Center, Title: Director, SHCCC, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Worth Services, Title: Secretary / Treasurer, SHWS, AverageHours: 1.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Continuing Care, Title: Chief Operating Officer - SHCC, AverageHours: 46.000; Officer Organization Name: Spectrum Health- Kent Community Campus, Title: Director, SHKCC, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Slaikeu, Jason, MD ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Primary Care Partners , Title: Chair, SHMG, AverageHours: 49.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Hospitals, Title: Director, SHH, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Wolk, Seth, MD ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: Director, SHH - Part Year, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Primary Care Partners , Title: President, SHMG - Part Year, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Breon, Richard ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Primary Care Partners , Title: Director, SHMG - Part Year, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Foundation, Title: Director, SHF, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Hospitals, Title: Director, SHH - Part Year, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A BUDDEN, Joan A. ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: Director, SHH, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Primary Care Partners , Title: Director, SHMG, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Ottenbaker, David, MD ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Primary Care Partners , Title: For Compensation Reporting only, AverageHours: 48.000; Organization Name: Newaygo County General Hospital Association, Title: Director, SHGM - Part Year, AverageHours: 0.000; IndividualTrusteeOrDirector Organization Name: Pennock Hospital, Title: Director, SHP, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Zeeland Community Hospital, Title: Director, SHZ, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Murray, Stephanie ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Continuing Care, Title: For Compensation Reporting only, AverageHours: 46.000; Organization Name: Visiting Nurse Services of Western Michigan, Title: Director, VNS, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Continuing Care Center, Title: Director, SHCCC, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health Worth Services, Title: Director, SHWS, AverageHours: 1.000; IndividualTrusteeOrDirector Organization Name: Spectrum Health- Kent Community Campus, Title: Director, SHKCC, AverageHours: 1.000; IndividualTrusteeOrDirector |
| Form 990, Part VII, Section A Weller, Deidre ADDITIONAL POSITIONS HELD |
Organization Name: Newaygo County General Hospital Association, Title: Former VP, Finance, SHGM , AverageHours: 0.000; Officer Organization Name: Pennock Hospital, Title: Controller, SHP - Part Year, AverageHours: 50.000; Officer |
| Form 990, Part VII, Section A Scallen, Joseph ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Continuing Care, Title: Former Director / Treasurer, SHCC, AverageHours: 0.000; Officer Organization Name: Spectrum Health Primary Care Partners , Title: VP, Finance, SHMG, AverageHours: 50.000; Officer |
| Form 990, Part VII, Section A Knaus, Ronald ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals(Former), Title: Former VP, Finance, SHH, AverageHours: 0.000; Officer Organization Name: Spectrum Health Continuing Care(Former), Title: Former Treasurer, SHCC , AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Davidson, James ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: For Compensation Reporting only, AverageHours: 50.000; Organization Name: Spectrum Health Continuing Care(Former), Title: Former Treasurer, SHCC, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VII, Section A Guzicki, Mark ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Worth Services(Former), Title: Former Secretary, SHWS, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer Organization Name: Visiting Nurse Services of Western Michigan(Former), Title: Former Secretary, VNS, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer Organization Name: Spectrum Health Continuing Care(Former), Title: Former Key Employee, SHCC, AverageHours: 0.000; KeyEmployee |
| Form 990, Part VII, Section A Fawcett, Kenneth, Jr., MD ADDITIONAL POSITIONS HELD |
Organization Name: Spectrum Health Hospitals, Title: For Compensation Reporting Only, AverageHours: 50.000; Organization Name: Spectrum Health Primary Care Partners (Former), Title: Former Interim President, SHMG, AverageHours: 0.000; IndividualTrusteeOrDirectorOfficer |
| Form 990, Part VIII, Line 2f Other Program Service Revenue |
- Total Revenue: 40553314, Related or Exempt Function Revenue: 36804765, Unrelated Business Revenue: 648280, Revenue Excluded from Tax Under Sections 512, 513, or 514: 3100269; |
| Form 990, Part XI, Line 9 Other changes in net assets or fund balances |
Minimum Pension Liability - 1497092; Uncollectable Pledges - -275787; OTHER - 2201375; Funds Transfer to Supporting Organization - -13701707; |
| Form 990, Part XII, Line 2b AUDITED FINANCIAL STATEMENTS |
THE ORGANIZATIONS INCLUDED IN THE GROUP RETURN ARE ALL AUDITED ON A CONSOLIDATED BASIS. |
| Form 990, Part XII, Line 2c Oversight of the Audit |
The financial statements of the organization were audited by an independent auditor as part of the consolidated audit of Spectrum Health System (EIN 38-3382353). The oversight of that audit is being assumed by Spectrum Health System, the ultimate controlling member of the organizations included in the group exemption. |
| Schedule B Contributions |
All organizations included in the group return are covered by the general rule for determining contributions reportable on Schedule B except for Spectrum Health Foundation (EIN 38-2752328). Spectrum Health Foundation is a Section 501(c)(3) organization that met the 33 1/3 % support test of the regulations under sections 509(a)(1) and 170(b)(1)(A)(vi). Pursuant to the Form 990 Schedule B Instructions contributions from any contributor that exceed the greater of (1) $5,000 or (2) 2% of the amount of total contributions, gifts, grants and other similar amounts received by the organization are reportable. |
Attach to Form 990 or 990-EZ.