Form 990 for tax year 2022

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $735,228

• 1e · Government grants (contributions)

  $3,859,662

• 1f · All other contributions, gifts and grants

  $183,107

• 2a · Program service revenue: PATIENT SERVICES

  total $301,170,693 · related or exempt $301,170,693

• 2b · Program service revenue: MEDICAID QAAP TAX PAYMENTS

  total $18,106,830 · related or exempt $18,106,830

• 2c · Program service revenue: RELATED-PARTY RENT

  total $716,107 · related or exempt $716,107

• 2d · Program service revenue: INCOME FROM JOINT VENTURES

  total -$1,087,330 · related or exempt -$1,087,330

• 3 · Investment income

  total $2,652,120 · excluded $2,652,120

• 6a · Gross rents

  real property $1,131,927

• 6b · Less rental expenses

  real property $1,325,777

• 6c · Rental income or loss

  real property -$193,850

• 6d · Net rental income or loss

  total -$193,850 · excluded -$193,850

• 7a · Gross sales of assets other than inventory

  other assets $88,696

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

  other assets $87,961

• 7c · Gain or loss

  other assets $735

• 7d · Net gain or loss

  total $735 · excluded $735

• 11a · Other revenue: CAFETERIA

  total $812,918 · excluded $812,918

• 11b · Other revenue: LIFEELINE REVENUE

  total $220,638 · excluded $220,638

• 11c · Other revenue: NONPATIENT LAB SERVICES

  total $178,735 · unrelated business $178,735

• 11e · Other revenue, total

  $1,212,291

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $94,045 · program services $94,045

• 5 · Compensation of officers, directors and key employees

  total $1,253,035 · management and general $1,253,035

• 7 · Other salaries and wages

  total $132,580,043 · program services $96,292,885 · management and general $36,287,158

• 8 · Pension plan contributions

  total $4,168,161 · program services $3,027,335 · management and general $1,140,826

• 9 · Other employee benefits

  total $17,768,920 · program services $12,905,567 · management and general $4,863,353

• 10 · Payroll taxes

  total $8,019,689 · program services $5,824,700 · management and general $2,194,989

• 11a · Fees: management

  total $1,645,643 · management and general $1,645,643

• 11b · Fees: legal

  total $120,086 · management and general $120,086

• 11c · Fees: accounting

  total $72,236 · management and general $72,236

• 11d · Fees: lobbying

  total $5,370 · management and general $5,370

• 11g · Fees: other

  total $40,986,343 · program services $29,772,281 · management and general $11,214,062

• 12 · Advertising and promotion

  total $295,184 · program services $214,392 · management and general $80,792

• 13 · Office expenses

  total $1,291,564 · program services $938,063 · management and general $353,501

• 16 · Occupancy

  total $8,892,028 · program services $6,458,280 · management and general $2,433,748

• 17 · Travel

  total $275,679 · program services $200,226 · management and general $75,453

• 19 · Conferences, conventions and meetings

  total $175,487 · program services $127,456 · management and general $48,031

• 20 · Interest

  total $1,864,014 · program services $1,353,833 · management and general $510,181

• 22 · Depreciation, depletion and amortization

  total $12,716,814 · program services $9,236,222 · management and general $3,480,592

• 23 · Insurance

  total $3,579,714 · program services $2,599,946 · management and general $979,768

• 24a · Other expenses: MEDICAL SUPPLIES & DRUG

  total $80,268,768 · program services $80,268,768

• 24b · Other expenses: BAD DEBT EXPENSE

  total $10,335,421 · program services $10,335,421

• 24c · Other expenses: QAAP TAX

  total $8,877,972 · program services $6,448,071 · management and general $2,429,901

• 24d · Other expenses: CORPORATE OVERHEAD

  total $3,515,317 · program services $2,553,175 · management and general $962,142

• 24e · All other expenses

  total $7,597,320 · program services $5,747,498 · management and general $1,849,822

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year -$14,617,641 · end of year $3,471,203

• 4 · Accounts receivable

  beginning of year $30,900,564 · end of year $26,195,191

• 7 · Other notes and loans receivable

  beginning of year $9,535,459 · end of year $7,202,415

• 8 · Inventories for sale or use

  beginning of year $8,079,597 · end of year $7,600,053

• 9 · Prepaid expenses and deferred charges

  beginning of year $961,195 · end of year $986,092

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

  $335,276,148

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

  $204,909,984

• 10c · Land, buildings and equipment, net

  beginning of year $119,639,696 · end of year $130,366,164

• 11 · Investments: publicly traded securities

  beginning of year $223,442,239 · end of year $202,698,216

• 12 · Investments: other securities

  beginning of year $6,317,122 · end of year $6,942,869

• 15 · Other assets

  beginning of year $33,049,199 · end of year $16,469,651

• 17 · Accounts payable and accrued expenses

  beginning of year $38,196,561 · end of year $10,415,881

• 19 · Deferred revenue

  beginning of year $3,248,387 · end of year $1,004,871

• 23 · Secured mortgages and notes payable

  beginning of year $2,704,089 · end of year $1,924,843

• 25 · Other liabilities

  beginning of year $70,313,917 · end of year $79,811,115

• 27 · Net assets without donor restrictions

  beginning of year $302,338,493 · end of year $308,269,176

• 28 · Net assets with donor restrictions

  beginning of year $505,983 · end of year $505,968

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 OR DEBITED TO THEIR ACCOUNTS. THE BENEFIT UNDER THE NEW SERP IS EQUAL TO THE PARTICIPANT'S ACCOUNT BALANCE, AND THE BENEFIT IS PAID IN A SINGLE SUM WITHIN 60 DAYS OF THE PARTICIPANT'S TERMINATION DATE. BENEFITS UNDER BOTH SERPS ARE PROVIDED ON A TAX-NEUTRAL BASIS. BOTH SERPS ARE DESIGNED TO COMPLY WITH INTERNAL REVENUE CODE SECTIONS 457(F) AND 409A.

PART I, LINE 7

MCLAREN HEALTH CARE (MHC) HAS A LEADERSHIP INCENTIVE PROGRAM FOR LEADERS OF THE CORPORATION, SUBSIDIARY EXECUTIVES AND DIRECTORS, MANAGERS AND SUPERVISORS. 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 MHC SERVES, AND (C) PROTECTING MHC'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

  RENTAL REAL ESTATE · OH

• CLARKSTON ASC PARTNERS LLC

  SURGERY CENTER · MI · general or managing partner

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 · controlled entity

• 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