Form 990 for tax year 2023

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $240

• 2a · Program service revenue: MEDICARE AND MEDICAID PAYMENT

  total $3,891,221 · related or exempt $3,891,221

• 2b · Program service revenue: RENAL DIALYSIS SERVICES

  total $1,526,976 · related or exempt $1,526,976

• 3 · Investment income

  total $73 · excluded $73

• 11a · Other revenue: JOINT VENTURE INCOME

  total $8,730 · related or exempt $8,730

• 11b · Other revenue: MISCELLANEOUS

  total $73 · related or exempt $73

• 11e · Other revenue, total

  $8,803

Functional expenses

Part IX, the statement of functional expenses.

• 7 · Other salaries and wages

  total $2,001,571 · program services $1,607,868 · management and general $393,703

• 8 · Pension plan contributions

  total $88,960 · program services $71,462 · management and general $17,498

• 9 · Other employee benefits

  total $206,949 · program services $166,243 · management and general $40,706

• 10 · Payroll taxes

  total $144,435 · program services $116,025 · management and general $28,410

• 11g · Fees: other

  total $304,429 · program services $304,429

• 13 · Office expenses

  total $14,739 · program services $14,739

• 14 · Information technology

  total $43,194 · program services $43,194

• 16 · Occupancy

  total $284,327 · program services $284,327

• 17 · Travel

  total $11,351 · program services $11,201 · management and general $150

• 22 · Depreciation, depletion and amortization

  total $153,914 · program services $124,988 · management and general $28,926

• 23 · Insurance

  total $28,358 · program services $21,536 · management and general $6,822

• 24a · Other expenses: MEDICAL SUPPLIES

  total $1,838,944 · program services $1,838,944

• 24b · Other expenses: SHARED SERVICES

  total $342,053 · program services -$187,840 · management and general $523,982 · fundraising $5,911

• 24c · Other expenses: BAD DEBT

  total $59,202 · program services $59,202

• 24d · Other expenses: COMMUNITY SUPPORT

  total $23,112 · program services $23,112

• 24e · All other expenses

  total $22,469 · program services $22,149 · management and general $320

Balance sheet

Part X, book values.

• 2 · Savings and temporary cash investments

  beginning of year $3,625,619 · end of year $3,177,994

• 4 · Accounts receivable

  beginning of year $843,529 · end of year $1,127,849

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

  $3,422,690

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

  $2,918,631

• 10c · Land, buildings and equipment, net

  beginning of year $519,560 · end of year $504,059

• 15 · Other assets

  beginning of year $166,850 · end of year $284,328

• 17 · Accounts payable and accrued expenses

  beginning of year $195,338 · end of year $274,704

• 25 · Other liabilities

  beginning of year $78,484 · end of year $78,484

• 27 · Net assets without donor restrictions

  beginning of year $4,881,736 · end of year $4,741,042

The filer's explanations (Part III)

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

PAUL KONOPACKI 0 56,002 0 PETER MARINOFF 0 33,001 0 SHARI WILSON 0 26,000 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 4B EXECUTIVE SUPPLEMENTAL 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 OF MUNSON HEALTHCARE, A COMPETITIVE BENEFIT PACKAGE IS OFFERED WHICH INCLUDES PARTICIPATION IN A SUPPLEMENTAL RETIREMENT PLAN. ANNUAL CONTRIBUTIONS, AT MUNSON'S DISCRETION, ARE MADE TO THE PLAN IN ORDER TO ACHIEVE THE TARGETED RETIREMENT BENEFIT LEVEL. THESE RETIREMENT FUNDS ARE AVAILABLE TO THE PARTICIPANTS UPON THEIR RETIREMENT 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.

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.

• MUNSON SERVICES INC

  PHARMACY · MI · controlled entity

• MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity

• SIXTH STREET DRUGS INC

  PHARMACY · MI · controlled entity

• MEDICAL OFFICE CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity