Sun Health Services

“The directors are ratified by Sun Health Foundations board of trustees.”

“The Form 990 is prepared by accounting personnel and reviewed by the Executive Vice President/Chief Financial Officer. A review is conducted by the organizations independent accountant, Plante Moran, PLLC. The return is then reviewed by the audit committee and provided to the board for comments prior to the filing deadline.”

“On an annual basis, board members and management staff are required to submit a conflict of interest questionaire for board and management review as appropriate. The questionaire provides specific instructions that the form must be updated if any situation arises during the year that might constitute a conflict. The audit committee has responsibility for intervening, if necessary, on conflict of interest matters. Any individual found to be in conflict will abstain from the decision making process.”

“The Board of Directors Management Review Committee, as provided in the organizations bylaws, has a responsibility for the compensation of all senior management. Annually, salaries of senior management are reviewed by the organizations board of directors. The deliberation and decision of compensation arrangements was contemporaneously substantiated in the organizations minutes. Sun Health Services retains an independent consultant, Findley Davis, in assessing its executive compensation policies and practices. The compensation process was last undertaken in 2017.”

“Governing documents and conflict of interest policies are generally not made available to the public. Financial statements historically have been made available at public meetings and upon reasonable request.”

“These individuals devote weekly time to the following organizations William T. Sellner, 40 hours Sun Health Services, 6 hours Sun Health Partners and 4 hours Sun Health Foundation Joseph La Rue, 40 hours Sun Health Services and 10 hours Sun Health Partners Ronald D. Guziak, 28 hours Sun Health Services, 20 hours Sun Health Foundation and 2 hours Sun Health Partners John W. Tyler, 46 hours Sun Health Services and 4 hours Sun Health Partners Jennifer Drago, 50 hours Sun Health Services Debra Richards, 50 hours Sun Health Services and Ronald Austerlade, 50 hours Sun Health Services. All of the individuals contribute time to Sun Health Senior Living and to Senior Living entities, including La Loma Senior Living, Sun Health Colonnade and Sun Health Grandview Terrace. Sharon Grambow devotes the majority of time to Senior Living entities as follows 15 hours to La Loma Senior Living 15 hours to Sun Health Colonnade 15 hours to Sun Health Grandview Terrace and 5 hours to Sun Health Services. The following board members devoted time to Sun Health Foundation, a related organization Herman L. Orcutt, 2 Michael Mandell, 2 L. Birt Kellam, 2 and Gerald S. Solomon, 2.”

“Program Service Expenses 14,355, Grants and allocations 0, Revenue 0 Medication Management is a comprehensive program that offers a suite of services to help manage the complexity associated with taking multiple medications and supplements. Participants over the age of thirteen have access to a free customized medication profile detailing their health and drug history. For a nominal fee, individuals have access to pharmacist reviews.”

“Program Service Expenses 919,795, Grants and allocations 0, Revenue 146,503 The Center for Health Wellbeing serves local medical center patients age fifty-five and up to evaluate and improve their overall health and wellness. In addition, the center specializes in providing education and support for those diagnosed with chronic heart and lung conditions, diabetes and pre-diabetes, or a memory impairment.”

“Program Service Expenses 1,136,757, Grants and allocations 1,136,757, Revenue 0 Sun Health in its role as a supporting organization, agreed to fund the administrative and fund raising costs of an affiliate public charity, Sun Health Foundation. This funding ensures that 100 percent of all donor contributions are utiized towards the donors designated purpose of supporting the delivery of quality health care to the residents of the West Valley of Maricopa County, Arizona.”

“During December 2016, Sun Health Services executed an amended and restated support and maintenance agreement with Banner Health the 2016 Agreement in part to modify the annual grants and to provide a termination date for the grant obligations, now August 2028. The 2016 Agreement provided an accelerated grant payment to Banner Health of 60,000,000 during the year ended June 30, 2017, remitted by Services, and a reduction in the annual grant payment from 12,500,000 to 3,500,000 through 2028. The funding of the revised annual grant remains designated for the benefit of the Banner Boswell and Del E. Webb Medical Centers and the Banner Sun Health Research Institute. In addition, Services committed to a 10,000,000 grant, payable over 12 years, to benefit the research efforts of the Banner Sun Health Research Institute. The 2016 Agreement also affirmed certain liabilities due to Banner Health from Services for certain identified projects under the previous support and maintenance agreement.”

“The executive and board leadership of Sun Health Services may from time to time assist Sun Health Foundation in its fund development activities and other charitable tax-exempt organizations engaged in promoting or enhancing the delivery of health care services within the West Valley of the Greater Phoenix, Arizona, metropolitan area.”

“Other changes in net assets and fund balance consist of the following change in swap value, 6,930,614 change in investment value, 6,654,012 and pension plan valuation adjustment, 2,458,000.”