Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $234,559

• 1e · Government grants (contributions)

  $599,238

• 2a · Program service revenue: CORPORATE SERVICE REVENUE

  total $193,472,825 · related or exempt $193,472,825

• 2b · Program service revenue: PROVIDER INCENTIVE

  total $2,759,419 · related or exempt $2,759,419

• 2c · Program service revenue: SERVICES TO OTHER ORGANIZATIO

  total $2,595,928 · related or exempt $2,595,928

• 2d · Program service revenue: HEALTH SERVICE REVENUE

  total $138,593 · related or exempt $138,593

• 2e · Program service revenue: CONTRACT REVENUES

  total $98,689 · unrelated business $98,689

• 3 · Investment income

  total $22,628,644 · excluded $22,628,644

• 6a · Gross rents

  real property $7,200

• 6c · Rental income or loss

  real property $7,200

• 6d · Net rental income or loss

  total $7,200 · related or exempt $7,200

• 7a · Gross sales of assets other than inventory

  securities $413,258,967 · other assets $13,446

• 7b · Less cost or other basis and sales expenses

  securities $391,009,815 · other assets $565

• 7c · Gain or loss

  securities $22,249,152 · other assets $12,881

• 7d · Net gain or loss

  total $22,262,033 · related or exempt $12,881 · excluded $22,249,152

• 11a · Other revenue: MISCELLANEOUS INCOME

  total $159,535 · related or exempt $159,535

• 11e · Other revenue, total

  $159,535

Functional expenses

Part IX, the statement of functional expenses.

• 5 · Compensation of officers, directors and key employees

  total $6,147,515 · program services $4,672,063 · management and general $1,232,532 · fundraising $242,920

• 7 · Other salaries and wages

  total $100,987,182 · program services $86,305,891 · management and general $14,681,291

• 8 · Pension plan contributions

  total $2,349,886 · program services $2,026,629 · management and general $323,257

• 9 · Other employee benefits

  total $6,575,235 · program services $5,627,301 · management and general $947,934

• 10 · Payroll taxes

  total $4,605,539 · program services $3,926,810 · management and general $678,729

• 11b · Fees: legal

  total $715,711 · management and general $715,711

• 11c · Fees: accounting

  total $384,900 · management and general $384,900

• 11d · Fees: lobbying

  total $144,559 · management and general $144,559

• 11f · Fees: investment management

  total $2,471,449 · management and general $2,471,449

• 11g · Fees: other

  total $28,142,401 · program services $22,877,960 · management and general $5,264,441

• 12 · Advertising and promotion

  total $1,281,457 · program services $1,119,993 · management and general $161,464

• 13 · Office expenses

  total $3,663,367 · program services $3,198,915 · management and general $464,452

• 14 · Information technology

  total $39,885,285 · program services $34,858,254 · management and general $5,027,031

• 16 · Occupancy

  total $1,026,556 · program services $596,462 · management and general $430,094

• 17 · Travel

  total $292,101 · program services $251,980 · management and general $40,121

• 19 · Conferences, conventions and meetings

  total $338,332 · program services $293,399 · management and general $44,933

• 20 · Interest

  total $887,478 · program services $716,334 · management and general $171,144

• 22 · Depreciation, depletion and amortization

  total $9,385,465 · program services $7,575,542 · management and general $1,809,923

• 23 · Insurance

  total $7,410,665 · management and general $7,410,665

• 24a · Other expenses: DUES AND SUBSCRIPTIONS

  total $1,094,085 · program services $990,425 · management and general $103,660

• 24b · Other expenses: BANK FEES

  total $864,169 · management and general $864,169

• 24c · Other expenses: SUPPLIES

  total $479,752 · program services $418,355 · management and general $61,397

• 24d · Other expenses: LICENSES & TAXES

  total $339,165 · program services $209,864 · management and general $129,301

• 24e · All other expenses

  total $764,959 · program services $502,146 · management and general $262,813

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $240,639,502 · end of year $242,605,496

• 4 · Accounts receivable

  beginning of year $3,752,440 · end of year $3,362,023

• 9 · Prepaid expenses and deferred charges

  beginning of year $9,636,180 · end of year $14,331,045

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

  $193,843,237

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

  $119,292,055

• 10c · Land, buildings and equipment, net

  beginning of year $46,516,677 · end of year $74,551,182

• 11 · Investments: publicly traded securities

  beginning of year $615,514,326 · end of year $631,356,855

• 12 · Investments: other securities

  beginning of year $31,985,551 · end of year $36,895,361

• 15 · Other assets

  beginning of year $8,291,229 · end of year $37,446,956

• 17 · Accounts payable and accrued expenses

  beginning of year $70,140,175 · end of year $70,875,540

• 20 · Tax-exempt bond liabilities

  beginning of year $255,324,220 · end of year $249,594,887

• 23 · Secured mortgages and notes payable

  beginning of year $1,774,525 · end of year $1,667,443

• 25 · Other liabilities

  beginning of year $16,427,074 · end of year $14,103,344

• 27 · Net assets without donor restrictions

  beginning of year $612,669,911 · end of year $704,307,704

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 4

EDWIN A. NESS 0 206,681 0 LAURA GLENN 0 65,000 0 CHRISTINE NEFCY, MD 115,291 0 0 PAUL KONOPACKI 0 56,002 0 CHRISTOPHER PODGES 306,835 0 0 SHELLY SPENCER 0 24,000 0 RACHEL ROE 0 21,330 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.

Disregarded entities

Part I: entities that legally are the filer and file no return of their own.

• MUNSON CIN LLC

  IMP HEALTH · MI · income $2,765,867 · assets $1,643,678

  Directly controlled by MUNSON HC

Related partnerships

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

• NORTHERN MICHIGAN SUPPLY ALLIANCE

  RELATED · SUPPLY PUR · MI · 67.75% owned · share of income $7,254,114 · share of assets $3,355,982 · general or managing partner

  Directly controlled by MUNSON HEA MUNSON HEALTHCARE

Related corporations and trusts

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

• MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity

• MUNSON SERVICES INC

  PHARMACY · MI · controlled entity

• SIXTH STREET DRUGS INC

  PHARMACY · MI · controlled entity

• MEDICAL OFFICE CONDOMINIUM ASSOCATION

  REAL ESTAT · MI · controlled entity