Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $1,207,266

• 1e · Government grants (contributions)

  $285,748

• 2a · Program service revenue: PATIENT SERVICE REVENUE

  total $15,763,536 · related or exempt $15,763,536

• 2b · Program service revenue: MEDICARE AND MEDICAID PMTS

  total $10,550,078 · related or exempt $10,550,078

• 2c · Program service revenue: 340B PRESCRIPTION REVENUE

  total $236,297 · related or exempt $236,297

• 2d · Program service revenue: COMMUNITY FITNESS CENTER

  total $181,320 · related or exempt $181,320

• 2e · Program service revenue: QUALITY INCENTIVE PAYMENTS

  total $156,469 · related or exempt $156,469

• 2f · All other program service revenue

  total $233,873 · related or exempt $233,873

• 3 · Investment income

  total $1,502 · excluded $1,502

• 6a · Gross rents

  real property $8,490

• 6c · Rental income or loss

  real property $8,490

• 6d · Net rental income or loss

  total $8,490 · excluded $8,490

• 11a · Other revenue: CAFETERIA SALES

  total $41,087 · excluded $41,087

• 11b · Other revenue: MISCELLANEOUS

  total $5,621 · related or exempt $5,621

• 11e · Other revenue, total

  $46,708

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $243,081 · program services $243,081

• 7 · Other salaries and wages

  total $10,503,375 · program services $10,221,972 · management and general $281,403

• 8 · Pension plan contributions

  total $457,036 · program services $444,548 · management and general $12,488

• 9 · Other employee benefits

  total $1,132,954 · program services $1,102,603 · management and general $30,351

• 10 · Payroll taxes

  total $724,771 · program services $705,722 · management and general $19,049

• 11c · Fees: accounting

  total $18,260 · management and general $18,260

• 11d · Fees: lobbying

  total $3,487 · management and general $3,487

• 11g · Fees: other

  total $2,239,445 · program services $2,236,945 · management and general $2,500

• 13 · Office expenses

  total $201,552 · program services $161,712 · management and general $39,840

• 14 · Information technology

  total $358,507 · program services $358,507

• 16 · Occupancy

  total $722,076 · program services $720,813 · management and general $1,263

• 17 · Travel

  total $42,026 · program services $42,026

• 19 · Conferences, conventions and meetings

  total $27,354 · program services $27,354

• 20 · Interest

  total $142,248 · program services $117,877 · management and general $24,371

• 22 · Depreciation, depletion and amortization

  total $887,921 · program services $735,795 · management and general $152,126

• 23 · Insurance

  total $105,907 · program services $80,430 · management and general $25,477

• 24a · Other expenses: SHARED SERVICES

  total $3,833,345 · program services -$16,139 · management and general $3,823,008 · fundraising $26,476

• 24b · Other expenses: MEDICAL SUPPLIES

  total $2,271,182 · program services $2,271,182

• 24c · Other expenses: BAD DEBT

  total $981,734 · program services $981,734

• 24d · Other expenses: QAAP TAXES

  total $954,086 · program services $954,086

• 24e · All other expenses

  total $225,866 · program services $218,361 · management and general $7,505

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $1,250 · end of year $1,250

• 2 · Savings and temporary cash investments

  beginning of year $7,195,308 · end of year $9,605,807

• 4 · Accounts receivable

  beginning of year $3,352,846 · end of year $4,533,183

• 9 · Prepaid expenses and deferred charges

  beginning of year $104,341 · end of year $89,763

• 10a · Land, buildings and equipment: cost or other basis

  $26,336,052

• 10b · Land, buildings and equipment: accumulated depreciation

  $18,764,026

• 10c · Land, buildings and equipment, net

  beginning of year $7,896,847 · end of year $7,572,026

• 15 · Other assets

  beginning of year $593,801 · end of year $346,858

• 17 · Accounts payable and accrued expenses

  beginning of year $1,973,028 · end of year $2,124,939

• 25 · Other liabilities

  beginning of year $1,931,768 · end of year $2,189,277

• 27 · Net assets without donor restrictions

  beginning of year $15,239,597 · end of year $17,834,671

The filer's explanations (Part III)

SCHEDULE J, PAGE 1, PART I, LINE 1A

MUNSON HEALTHCARE MAINTAINS A SOCIAL MEMBERSHIP AT THE TRAVERSE CITY COUNTRY CLUB. A REQUIREMENT OF THE COUNTRY CLUB IS THAT A MEMBERSHIP BE IN AN INDIVIDUAL NAME AND NOT A CORPORATE NAME, SO EDWIN NESS IS LISTED AS THE INDIVIDUAL FOR THE MEMBERSHIP. MUNSON HEALTHCARE USES THE SOCIAL MEMBERSHIP TO CONDUCT OFF-SITE MEETINGS AND RETREATS.

SCHEDULE J, PAGE 1, PART I, LINE 3

THE PROCESS FOR DETERMINING APPROPRIATE LEVELS OF PAY FOR EXECUTIVE POSITIONS WITHIN MUNSON HEALTHCARE SYSTEM IS CAREFULLY AND THOUGHTFULLY DIRECTED BY THE MUNSON HEALTHCARE BOARD OF DIRECTORS, THROUGH THE COMPENSATION AND EXECUTIVE LEADERSHIP DEVELOPMENT COMMITTEE. THE COMMITTEE UTILIZES "BEST PRACTICES" METHODS OF DETERMINING COMPENSATION AND, AS SUCH, IS COMPOSED OF SEVEN MEMBERS WHOSE VOTING MEMBERS ARE INDEPENDENT. THE COMMITTEE IS CHARGED WITH ENSURING THAT EXECUTIVE COMPENSATION IS DESIGNED TO ATTRACT AND RETAIN HIGH QUALITY, PROFESSIONAL LEADERSHIP WHILE MAINTAINING STRONG STEWARDSHIP FOR THE ORGANIZATION. COMPENSATION LEVELS REFLECT THE SCOPE OF EACH EXECUTIVE'S RESPONSIBILITIES, EDUCATIONAL BACKGROUND, EXPERIENCE, AND INDUSTRY STANDING AS WELL AS INDIVIDUAL AND ORGANIZATIONAL PERFORMANCE. ANNUALLY, THE COMMITTEE RETAINS A NATIONAL INDEPENDENT CONSULTANT TO ENSURE MUNSON HEALTHCARE'S COMPENSATION PRACTICES AND LEVELS ARE INDEPENDENTLY REVIEWED WHILE BEING COMPETITIVE AND REASONABLE. THE MUNSON HEALTHCARE CONFLICT, VALUATION AND COMPLIANCE ("CVC") COMMITTEE ALSO REVIEWS THE SURVEY INFORMATION TO EVALUATE THE REASONABLENESS OF EXECUTIVE COMPENSATION. THAT ANALYSIS OCCURS EACH NOVEMBER. THE COMPENSATION AND EXECUTIVE LEADERSHIP DEVELOPMENT COMMITTEE USES THE FOLLOWING METHODS TO ESTABLISH THE COMPENSATION OF THE ORGANIZATION'S PRESIDENT: COMPENSATION COMMITTEE INDEPENDENT COMPENSATION CONSULTANT COMPENSATION SURVEY OR STUDY APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE

SCHEDULE J, PAGE 1, PART I, LINE 4

EDWIN A. NESS 0 206,681 0 LAURA GLENN 0 65,000 0 PAUL KONOPACKI 0 56,002 0 ELLEN SMITH 0 40,000 0 PETER MARINOFF 0 33,001 0 BRIAN MCCOMB, DO 0 18,540 0 KELLY TOMASZEWSKI 0 27,498 0 KATHLEEN LARAIA 0 17,471 0 ROBERT RICHARDSON 0 14,520 0 KRISTINE JOHNSON 0 10,025 0 CASEY KANDOW 114,566 0 0

SCHEDULE J, PAGE 1, PART I, LINE 7

MUNSON HEALTHCARE EXECUTIVES ARE ELIGIBLE FOR AN ANNUAL BONUS BASED ON MEETING ORGANIZATIONAL GOALS, WHICH ARE SET IN ADVANCE AND APPROVED BY THE COMPENSATION COMMITTEE OF THE MUNSON HEALTHCARE BOARD. THE GOALS INCLUDE A COMBINATION OF FINANCIAL TARGETS, STRATEGIC TARGETS AND OPERATIONAL TARGETS INCLUDING QUALITY HEALTHCARE DELIVERY, DISEASE MANAGEMENT, PATIENT SATISFACTION, EMPLOYEE SAFETY, AND EMPLOYEE ENGAGEMENT. AT THE END OF EACH FISCAL YEAR, THE COMPENSATION COMMITTEE OF THE MUNSON HEALTHCARE BOARD IS CHARGED WITH REVIEWING AND APPROVING EXECUTIVE BONUSES BASED ON PROGRESS TOWARD MEETING ORGANIZATIONAL GOALS.

SCHEDULE J, PART III

PART I, LINE 4A EXECUTIVE SEVERANCE PLAN: SUBJECT TO REVIEW AND APPROVAL BY THE BOARD COMPENSATION AND EXECUTIVE LEADERSHIP COMMITTEE, IN ORDER TO RECRUIT AND MAINTAIN QUALIFIED EXECUTIVES, A COMPETITIVE BENEFIT PACKAGE IS OFFERED TO THE PRESIDENT AND VICE-PRESIDENTS, WHICH INCLUDES A SEVERANCE PLAN. MUNSON HAS A SEVERANCE PLAN FOR THE PRESIDENT AND VICE-PRESIDENT/EXECUTIVE LEVEL POSITIONS, WHICH PROVIDES FOR THE PRESIDENT UP TO TWO YEARS OF PAY IN THE EVENT EMPLOYMENT ENDS UNDER CERTAIN CONDITIONS AND FOR VICE-PRESIDENTS, UP TO ONE-YEAR OF PAY IN THE EVENT EMPLOYMENT ENDS UNDER CERTAIN CONDITIONS. THE PLAN PROVIDES FOR A 50% OFFSET FOR SUBSEQUENT EMPLOYMENT DURING THE SEVERANCE PERIOD. MEDICAL BENEFITS ARE PROVIDED DURING THE SEVERANCE PERIOD. PART I, LINE 4B SUPPLEMENTAL EXECUTIVE RETIREMENT PLANS: SUBJECT TO REVIEW AND APPROVAL BY THE BOARD COMPENSATION AND EXECUTIVE LEADERSHIP COMMITTEE, IN ORDER TO RECRUIT AND MAINTAIN QUALIFIED EXECUTIVES, INCLUDING THE PRESIDENT AND VICE-PRESIDENTS, A COMPETITIVE BENEFIT PACKAGE IS OFFERED WHICH INCLUDES PARTICIPATION IN A NON-QUALIFIED SUPPLEMENTAL RETIREMENT PLAN. FOR THE PRESIDENT, THE PLAN PROVIDES A TARGETED BENEFIT AT AGE 62. ANNUAL CONTRIBUTIONS, AT MUNSON'S DISCRETION, ARE MADE TO THE PLAN IN ORDER TO ACHIEVE THE TARGETED RETIREMENT BENEFIT LEVEL. VICE-PRESIDENTS ARE ELIGIBLE TO PARTICIPATE IN AN AMOUNT NOT TO EXCEED 6% OF BASE COMPENSATION, FUNDED ANNUALLY, AT THE SOLE DISCRETION OF MUNSON. THESE FUNDS ARE AVAILABLE TO VESTED PARTICIPANTS UPON SEPARATION OF EMPLOYMENT FROM MUNSON. PART II, COLUMN B(III) IN JULY 2023, MUNSON HEALTHCARE TRANSITIONED EXECUTIVE PTO FROM AN ACCRUAL PLAN TO AN UP FRONT ANNUAL ALLOTMENT PLAN WITH A USE-IT-OR-LOSE-IT BALANCE DISPOSITION. CURRENT EXECUTIVES ON THE PTO ACCRUAL PLAN WERE PAID OUT THEIR EXISTING BALANCES IN JULY 2023. THE FIRST 80 HOURS OF ACCRUED PTO WAS PAID AT 90% OF VALUE AND THE BALANCE WAS PAID AT 80% OF VALUE. THIS PAYOUT IS LESS FAVORABLE THAN EXISTING POLICY, WHICH PAYS OUT ACCRUED PTO AT 100% UPON SEPARATION OF EMPLOYMENT. THIS ONE-TIME PAYOUT IS INCLUDED IN COLUMN B(III) OF SCHEDULE J. PART II, LINE 1, COLUMN B(III) CEO EDWIN NESS, A 25 YEAR EMPLOYEE, HAS BEGUN VESTING IN HIS SERP PLAN. IN 2023, THE TAXABLE AMOUNT WAS 834,836. THIS ONE-TIME TAXABLE AMOUNT IS REFLECTED IN HIS 2023 COMPENSATION IN COLUMN B(III) OF SCHEULE J. OF THE AMOUNT REPORTED IN THE CURRENT FORM 990 SCHEDULE J, SERP PLAN CONTRIBUTIONS IN THE AMOUNT OF 834,836 WERE PREVIOUSLY REPORTED AS BENEFITS IN PRIOR YEAR FORMS 990.

Related partnerships

Part III: related organizations taxable as a partnership, with the filer's share.

• NORTHERN MICHIGAN SUPPLY ALLIANCE

  PURCHASING · MI

Related corporations and trusts

Part IV: related organizations taxable as a corporation or trust.

• MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity

• MEDICAL OFFICE CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity

• MUNSON SERVICES INC

  PHARMACY · MI · controlled entity

• SIXTH STREET DRUGS INC

  PHARMACY · MI · controlled entity