Form 990 for tax year 2024

Revenue

Part VIII, the statement of revenue.

• 1d · Related organizations

  $4,713,120

• 1e · Government grants (contributions)

  $13,126,339

• 1f · All other contributions, gifts and grants

  $712,312

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

  total $416,845,935 · related or exempt $416,845,935

• 2b · Program service revenue: PATIENT SERVICE REVENUE

  total $396,999,594 · related or exempt $396,999,594

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

  total $13,669,916 · related or exempt $13,669,916

• 2d · Program service revenue: MISC HEALTHCARE REVENUE

  total $4,089,295 · related or exempt $4,089,295

• 2e · Program service revenue: PROVIDER INCENTIVE

  total $322,209 · related or exempt $322,209

• 2f · All other program service revenue

  total $269,987 · related or exempt $240,870 · unrelated business $29,117

• 3 · Investment income

  total $4,739,678 · related or exempt $2,781,433 · excluded $1,958,245

• 6a · Gross rents

  real property $796,244

• 6c · Rental income or loss

  real property $796,244

• 6d · Net rental income or loss

  total $796,244 · excluded $796,244

• 7a · Gross sales of assets other than inventory

  other assets $656,171

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

  other assets $51,997

• 7c · Gain or loss

  other assets $604,174

• 7d · Net gain or loss

  total $604,174 · excluded $604,174

• 10a · Gross sales of inventory

  $14,975

• 10b · Cost of goods sold

  $14,484

• 10c · Net income from sales of inventory

  total $491 · unrelated business $491

• 11a · Other revenue: CAFETERIA SALES

  total $4,521,672 · excluded $4,521,672

• 11b · Other revenue: MISCELLANEOUS

  total $346,569 · excluded $346,569

• 11e · Other revenue, total

  $4,868,241

Functional expenses

Part IX, the statement of functional expenses.

• 1 · Grants to domestic organizations and governments

  total $286,773 · program services $286,773

• 2 · Grants to domestic individuals

  total $306,315 · program services $306,315

• 5 · Compensation of officers, directors and key employees

  total $1,173,445 · program services $438,754 · management and general $734,691

• 7 · Other salaries and wages

  total $267,609,483 · program services $265,320,848 · management and general $2,288,635

• 8 · Pension plan contributions

  total $12,100,166 · program services $12,036,803 · management and general $63,363

• 9 · Other employee benefits

  total $37,657,795 · program services $37,246,285 · management and general $411,510

• 10 · Payroll taxes

  total $12,906,590 · program services $12,764,851 · management and general $141,739

• 11b · Fees: legal

  total $3,104 · management and general $3,104

• 11c · Fees: accounting

  total $54,594 · management and general $54,594

• 11d · Fees: lobbying

  total $30,466 · management and general $30,466

• 11g · Fees: other

  total $83,874,385 · program services $83,713,899 · management and general $35,793 · fundraising $124,693

• 12 · Advertising and promotion

  total $6,277 · program services $6,277

• 13 · Office expenses

  total $2,952,714 · program services $2,784,400 · management and general $168,314

• 14 · Information technology

  total $11,694,691 · program services $11,652,022 · management and general $42,669

• 16 · Occupancy

  total $8,421,091 · program services $7,717,125 · management and general $703,966

• 17 · Travel

  total $425,952 · program services $405,476 · management and general $20,476

• 19 · Conferences, conventions and meetings

  total $629,838 · program services $623,355 · management and general $6,483

• 20 · Interest

  total $4,427,928 · program services $3,762,781 · management and general $665,147

• 22 · Depreciation, depletion and amortization

  total $25,250,370 · program services $21,459,577 · management and general $3,790,793

• 23 · Insurance

  total $3,567,682 · program services $2,849,118 · management and general $718,564

• 24a · Other expenses: MEDICAL SUPPLIES

  total $173,324,257 · program services $173,324,257

• 24b · Other expenses: SHARED SERVICES

  total $108,436,596 · program services -$3,878,129 · management and general $111,633,359 · fundraising $681,366

• 24c · Other expenses: QAAP TAXES

  total $33,891,806 · program services $33,891,806

• 24d · Other expenses: BAD DEBT

  total $21,084,157 · program services $21,084,157

• 24e · All other expenses

  total $5,830,329 · program services $5,583,686 · management and general $246,643

Balance sheet

Part X, book values.

• 1 · Cash, non-interest-bearing

  beginning of year $98,823 · end of year $112,203

• 2 · Savings and temporary cash investments

  beginning of year $9,229,972 · end of year $323,920

• 3 · Pledges and grants receivable

  beginning of year $2,228,571 · end of year $836,594

• 4 · Accounts receivable

  beginning of year $131,033,709 · end of year $146,041,937

• 7 · Other notes and loans receivable

  beginning of year $394,445 · end of year $942,724

• 8 · Inventories for sale or use

  beginning of year $18,599,123 · end of year $17,182,610

• 9 · Prepaid expenses and deferred charges

  beginning of year $3,607,423 · end of year $2,949,769

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

  $605,781,090

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

  $358,359,849

• 10c · Land, buildings and equipment, net

  beginning of year $258,275,032 · end of year $247,421,241

• 12 · Investments: other securities

  beginning of year $4,526,164 · end of year $3,981,641

• 14 · Intangible assets

  beginning of year $280,000 · end of year $280,000

• 15 · Other assets

  beginning of year $17,150,648 · end of year $23,320,742

• 17 · Accounts payable and accrued expenses

  beginning of year $73,463,841 · end of year $83,204,223

• 19 · Deferred revenue

  beginning of year $4,691,612 · end of year $4,358,063

• 25 · Other liabilities

  beginning of year $16,907,054 · end of year $19,558,961

• 27 · Net assets without donor restrictions

  beginning of year $350,361,403 · end of year $336,272,134

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 BUSINESS MEETINGS AND RETREATS.

SCHEDULE J, PAGE 1, PART I, LINE 4

EDWIN A. NESS 0 206,681 0 LAURA GLENN 0 68,251 0 PAUL KONOPACKI 0 57,121 0 JOE HURSHE 0 60,000 0 ELLEN SMITH 94,157 0 0 KATHLEEN LARAIA 0 18,364 0 TAMARA PUTNEY, RN 0 17,166 0 ROBERT RICHARDSON 0 16,610 0 BONNIE KRUSZKA 0 14,760 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, LINE 1, COLUMN B(III) CEO EDWIN NESS, A 25 YEAR EMPLOYEE, HAS BEGUN VESTING IN HIS SERP PLAN. IN 2024, THE TAXABLE AMOUNT WAS 1,086,251. THIS ONE-TIME TAXABLE AMOUNT IS REFLECTED IN HIS 2024 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 1,086,251 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 CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity

• SIXTH STREET DRUGS

  PHARMACY · MI · controlled entity

• MUNSON SERVICES INC

  PHARMACY · MI · controlled entity

• MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION

  REAL ESTAT · MI · controlled entity