Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 2a · Program service revenue: CAPITATION PAYMENTS - MEDICAID

  total $1,118,416,756 · related or exempt $1,118,416,756

• 2b · Program service revenue: CAPITATION PAYMENTS - MEDICARE AD

  total $6,744,034 · related or exempt $6,744,034

• 3 · Investment income

  total $5,974,750 · excluded $5,974,750

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $15,836,565 · program services $8,967,630 · management and general $6,868,935

• 8 · Pension plan contributions

  total $813,106 · program services $746,983 · management and general $66,123

• 9 · Other employee benefits

  total $3,808,378 · program services $3,235,002 · management and general $573,376

• 10 · Payroll taxes

  total $966,903 · program services $750,457 · management and general $216,446

• 11b · Fees: legal

  total $14,721 · management and general $14,721

• 11c · Fees: accounting

  total $203,391 · management and general $203,391

• 11f · Fees: investment management

  total $1,767,440 · management and general $1,767,440

• 11g · Fees: other

  total $420,062,549 · program services $419,901,371 · management and general $161,178

• 12 · Advertising and promotion

  total $3,215,381 · program services $3,215,381

• 13 · Office expenses

  total $2,294,421 · program services $1,689,112 · management and general $605,309

• 14 · Information technology

  total $3,978,959 · program services $1,034,529 · management and general $2,944,430

• 16 · Occupancy

  total $537,998 · management and general $537,998

• 17 · Travel

  total $43,564 · program services $37,983 · management and general $5,581

• 19 · Conferences, conventions and meetings

  total $831 · management and general $831

• 20 · Interest

  total $95,649 · program services $83,396 · management and general $12,253

• 22 · Depreciation, depletion and amortization

  total $727,355 · program services $727,355

• 23 · Insurance

  total $269,814 · management and general $269,814

• 24a · Other expenses: PHARMACY

  total $288,532,471 · program services $288,532,471

• 24b · Other expenses: SPECIALTY CARE POOL

  total $246,492,587 · program services $246,492,587

• 24c · Other expenses: HEALTH PLAN ADMINISTRAT

  total $73,603,250 · program services $2,236,087 · management and general $71,367,163

• 24d · Other expenses: PRIMARY CARE POOL

  total $6,355,018 · program services $6,355,018

• 24e · All other expenses

  total $2,512,431 · program services $2,512,431

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  end of year $1

• 2 · Savings and temporary cash investments

  beginning of year $300,860,720 · end of year $188,047,950

• 4 · Accounts receivable

  beginning of year $37,477,822 · end of year $32,296,470

• 9 · Prepaid expenses and deferred charges

  beginning of year $1,707 · end of year $84,866

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

  $28,095,701

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

  $26,140,689

• 10c · Land, buildings and equipment, net

  beginning of year $2,256,498 · end of year $1,955,012

• 11 · Investments: publicly traded securities

  beginning of year $75,813,590 · end of year $167,206,853

• 12 · Investments: other securities

  beginning of year $33,349,968 · end of year $44,610,789

• 15 · Other assets

  beginning of year $423,171 · end of year $573,657

• 17 · Accounts payable and accrued expenses

  beginning of year $25,951,839 · end of year $30,874,773

• 19 · Deferred revenue

  beginning of year $32,127,650 · end of year $31,735,479

• 25 · Other liabilities

  beginning of year $154,741,596 · end of year $98,455,845

• 29 · Capital stock, trust principal or current funds

  beginning of year $0 · end of year $0

• 30 · Paid-in or capital surplus, or land, building or equipment fund

  beginning of year $1,140,000 · end of year $1,140,000

• 31 · Retained earnings, endowment or other funds

  beginning of year $236,222,391 · end of year $272,569,501

The filer's explanations (Part III)

PART I, LINE 1A

THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 1 BOXES HAVE BEEN CHECKED. THE CORPORATE CEO, SUBSIDIARY CEOS AND CORPORATE EXECUTIVE & SENIOR VICE-PRESIDENTS IN SOME INSTANCES HAVE RECEIVED TAX INDEMNIFICATION FOR THE FOLLOWING BENEFITS: VEHICLE COSTS, GROUP TERM LIFE INSURANCE, SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS, AND HEALTH CLUB OR SOCIAL DUES. THESE BENEFITS HAVE BEEN INCLUDED IN TAXABLE COMPENSATION.

PART I, LINE 3

THE CEO/EXECUTIVE DIRECTOR WAS COMPENSATED BY A RELATED ORGANIZATION, AND THEREFORE NONE OF THE LINE 3 BOXES HAVE BEEN CHECKED. THE RELATED ORGANIZATION USED THE FOLLOWING METHODOLOGIES TO ESTABLISH THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR OF THE FILING ORGANIZATION: COMPENSATION COMMITTEE, INDEPENDENT COMPENSATION CONSULTANT, FORM 990 OF OTHER ORGANIZATIONS, COMPENSATION SURVEY OR STUDY, AND APPROVAL BY THE BOARD OR COMPENSATION COMMITTEE.

PART I, LINE 4B

MCLAREN MAINTAINS TWO SUPPLEMENTAL NONQUALIFIED RETIREMENT PLANS FOR A SELECT GROUP OF MANAGEMENT OR HIGHLY COMPENSATED EMPLOYEES (THE "SERPS"). THE OLD SERP WAS CLOSED TO NEW PARTICIPANTS ON OCTOBER 1, 2006, AND THE NEW SERP BECAME EFFECTIVE AS OF JANUARY 1, 2007. NO EMPLOYEE MAY PARTICIPATE IN BOTH OF THE SERPS. THE OLD SERP IS STRUCTURED AS A DEFINED BENEFIT PLAN THAT ESSENTIALLY REPLACES THE BENEFITS THE PARTICIPANT IS NOT PERMITTED TO RECEIVE UNDER MCLAREN'S QUALIFIED RETIREMENT PLAN DUE TO IRS LIMITATIONS APPLICABLE TO QUALIFIED PLANS. THE BENEFIT UNDER THE OLD SERP IS PAYABLE IN EITHER THE FORM OF A LUMP SUM DISTRIBUTION OR IN MONTHLY PAYMENTS EQUAL TO THE ACTUARIAL EQUIVALENT OF THE PARTICIPANT'S ACCRUED BENEFIT. THE BENEFIT IS PAID AT AGE 55, AND IF THE PARTICIPANT REMAINS EMPLOYED, THE BENEFIT IS PAID UPON TERMINATION OF EMPLOYMENT, REDUCED TO TAKE INTO ACCOUNT THE BENEFIT PREVIOUSLY PAID. THE NEW SERP IS STRUCTURED AS A DEFINED CONTRIBUTION PLAN, AND MCLAREN CONTRIBUTES 15 PERCENT OF EACH PARTICIPANT'S COMPENSATION TO THE PLAN EACH YEAR FOR ALLOCATION TO THE PARTICIPANT'S ACCOUNT. PARTICIPANTS IN THE NEW SERP BECOME VESTED IN THEIR ACCOUNTS UPON THE EARLIER OF FIVE YEARS OF PARTICIPATION IN THE PLAN OR ATTAINMENT OF AGE 60. PARTICIPANTS IN THE NEW SERP SELF-DIRECT THE INVESTMENT OF THEIR ACCOUNTS AND HAVE THE ACTUAL INVESTMENT RETURN CREDITED THE PARTICIPANT'S ACCOUNT BALANCE, AND THE BENEFIT IS PAID IN A SINGLE SUM SERPS ARE PROVIDED ON A TAX-NEUTRAL BASIS. BOTH SERPS ARE DESIGNED TO OR DEBITED TO THEIR ACCOUNTS. THE BENEFIT UNDER THE NEW SERP IS EQUAL TO WITHIN 60 DAYS OF THE PARTICIPANT'S TERMINATION DATE. BENEFITS UNDER BOTH COMPLY WITH INTERNAL REVENUE CODE SECTIONS 457(F) AND 409A.

PART I, LINE 7

MCLAREN HEALTH CARE CORPORATION (MHCC) HAS A LEADERSHIP INCENTIVE PROGRAM FOR LEADERS OF THE CORPORATION, SUBSIDIARY EXECUTIVES AND DIRECTORS, AND MANAGERS. THE PURPOSE OF THE PLAN IS TO ENHANCE THE ORGANIZATION'S ABILITY TO ACHIEVE ITS GOALS BY PROVIDING TOP OFFICIALS AND THE BOARD OF DIRECTORS WITH A TOOL FOR (A) CLEARLY COMMUNICATING PERFORMANCE ON THE PART OF KEY LEADERS, (B) STIMULATING AND REWARDING SUPERIOR LEVELS OF PERFORMANCE ON THE PART OF KEY LEADERS WHICH WILL ULTIMATELY BENEFIT THE COMMUNITIES MHCC SERVES, AND (C) PROTECTING MHCC'S ABILITY TO COMPETE WITH OTHER EMPLOYERS FOR HIGH-TALENT LEADERS.

Related partnerships

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

• MCLAREN - NORTHERN EQUITIES CANCER CENTER PROJECT LLC

  RENTAL REAL ESTATE · MI · general or managing partner

• MOUNT CLEMENS REGIONAL HEALTH BUILDING HEALTH PARTNERS

  BUILDING MANAGEMENT · MI · general or managing partner

• SOUTH VAN DYKE MEDICAL COMPLEX-A

  VARIOUS HEALTHCARE ACTIVITIES · MI · general or managing partner

• WATERVILLE MEDICAL CENTER LLC

  RELATED · RENTAL REAL ESTATE · OH · 70% owned · general or managing partner

  Directly controlled by ST LUKE'S HOSPITAL

• ST LUKES HOSPITAL PAIN MANAGEMENT LLC

  RELATED · PAIN MANAGEMENT · OH · 51% owned

  Directly controlled by ST LUKE'S HOSPITAL

Related corporations and trusts

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

• CLARKSTON PROPERTY ASSOCIATES

  C · REAL ESTATE · MI · controlled entity

• DELPHINUS INVESTMENT INC

  C · HOLD PASSIVE INVESTMENT · MI · controlled entity

• HEALTH ADVANTAGE INC

  C · INSURANCE · MI · 100% owned · share of income $700,137 · share of assets $21,930,356 · controlled entity

  Directly controlled by MCLAREN HEALTH PLAN

• MCLAREN INSURANCE COMPANY LTD

  C · INSURANCE · CJ · controlled entity

• MID-MICHIGAN PHYSICIANS PC

  C · PHYSICIAN PRACTICE · MI · controlled entity

• MCLAREN PHYSICIAN PARTNERS

  C · MANAGED CARE · MI · controlled entity

• VITALCARE HOME MEDICAL EQUIPMENT INC

  C · SALE AND RENTAL OF DURABLE MEDICAL EQUIPMENT · MI · controlled entity

• HURON CLINIC CONDOMINIUMS OWNERS

  C · VARIOUS HEALTHCARE ACTIVITIES · MI · controlled entity