Civic Intelligence

Php Familycare

990 • Fiscal year 2016 • EIN 36-4497604

Jan 01, 2016 to Dec 31, 2016 • Filed on Nov 07, 2017

PO Box 30377Lansing, MI 48909

(517) 364-8400

Siviq Scores

Precomputed percentiles for this filing year versus similar nonprofits in the same peer cohort.

Liabilities / Assets

37th percentile

0.07x

Higher debt load relative to assets than 37% of similar nonprofits.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Source year 2016

Liabilities / Revenue

63rd percentile

0.58x

Higher debt load relative to revenue than 63% of similar nonprofits.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Source year 2016

Net Margin

80th percentile

33%

Higher net margin than 80% of similar nonprofits.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Source year 2016

Top Officer Pay

98th percentile

$1,544,259

Higher top officer pay than 98% of similar nonprofits.

Top officer pay equals 99.9% of source-year revenue.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Source year 2016

Asset Growth

1st percentile

-49%

Faster asset growth than 1% of similar nonprofits.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Annualized from 2015 to 2016

Revenue Growth

2nd percentile

-98%

Faster revenue growth than 2% of similar nonprofits.

2016 filings • 501(c)4 • $10M-$25M nonprofits • Annualized from 2015 to 2016

Assets

Down

$12,577,811

Down $12,212,756 (-49%) from 2015

Net Assets

Up

$11,685,995

Up $623,994 (+5.6%) from 2015

Liabilities

Down

$891,816

Down $12,836,750 (-94%) from 2015

Revenue

Down

$1,546,174

Down $93,381,137 (-98%) from 2015

Expenses

Down

$1,032,196

Down $91,001,095 (-99%) from 2015

Net Income

Down

$513,978

Down $2,380,042 (-82%) from 2015

Historical Trend

Balance Sheet Trend

The highlighted filing sits inside the broader history for assets, liabilities, and net assets.

$30M$20M$10M$0Assets 2010: $12,927,161Liabilities 2010: $6,286,141Net Assets 2010: $6,641,0202010Assets 2012: $14,030,458Liabilities 2012: $7,225,251Net Assets 2012: $6,805,2072012Assets 2013: $16,990,815Liabilities 2013: $9,087,682Net Assets 2013: $7,903,1332013Assets 2015: $24,790,567Liabilities 2015: $13,728,566Net Assets 2015: $11,062,0012015Assets 2016: $12,577,811Liabilities 2016: $891,816Net Assets 2016: $11,685,9952016Assets 2017: $0Liabilities 2017: $0Net Assets 2017: $02017

Highlighted filing

2016

Assets$12,577,811
Liabilities$891,816
Net Assets$11,685,995

Operations Trend

Revenue, expenses, and net income across loaded years, with this filing highlighted.

$100M$50M$0-$50MExpenses 2010: $56,553,6132010Expenses 2012: $56,420,7272012Revenue 2013: $58,016,298Expenses 2013: $57,218,068Net Income 2013: $798,2302013Revenue 2015: $94,927,311Expenses 2015: $92,033,291Net Income 2015: $2,894,0202015Revenue 2016: $1,546,174Expenses 2016: $1,032,196Net Income 2016: $513,9782016Revenue 2017: $22,571Expenses 2017: $25,898Net Income 2017: -$3,3272017

Highlighted filing

2016

Revenue$1,546,174
Expenses$1,032,196
Net Income$513,978
Jump To
Filing Snapshot
Filing Period
Jan 1, 2016 to Dec 31, 2016
Signed
Nov 7, 2017
Return Version
2016v3.0
Gross Receipts
$1,818,744
Mission and Program Overview

Mission

Sparrow php's mission is to improve the health status of its members by facilitating quality, compassionate, accessible, and cost effective healthcare.

Balance Sheet Detail
LineBeginningEndChange
Assets
Savings and Temporary Cash Investments$15,296,673$7,647,189▼ $7,649,484
Investments in Publicly Traded Securities$4,638,209$4,752,115▲ $113,906
Accounts Receivable$937,750$141,164▼ $796,586
Total Assets$24,790,567$12,577,811▼ $12,212,756
Other Assets Total$3,917,935$37,343▼ $3,880,592
Liabilities
Other Liabilities$1,116,373--
Accounts Payable and Accrued Expenses$12,612,193$891,816▼ $11,720,377
Total Liabilities$13,728,566$891,816▼ $12,836,750
Net Assets / Fund Balance
Unrestricted Net Assets$11,062,001$11,685,995▲ $623,994
Total Net Assets Fund Balance$11,062,001$11,685,995▲ $623,994
Total Liabilities and Net Assets / Fund Balance$24,790,567$12,577,811▼ $12,212,756

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2016$3,707,924$191,313▲ $102,555-$3,986,792
2015$3,411,165$361,583▼ $49,824-$3,707,924
2014$3,184,706$200,567▲ $40,893-$3,411,165
2013$2,926,676$82,387▲ $187,643-$3,184,706
2012$2,641,860$147,795▲ $149,021-$2,926,676
Compensation and Service Providers

Employees

NameTitleFull / Part TimeOtherTotal
Dennis SwanPres/CEO - S-$1,544,259$1,544,259
Dennis ReesePresident/cePT$446,084$446,084
George SchneiderCFO/COO - PhPT$353,299$353,299
Linda DickinsonDirector of Med RPT$185,712$185,712
Ann Hunt-fugate RphMgr ClinicalPT$179,359$179,359
Paula HowardSenior SalesPT$164,522$164,522
Joy WahawisanClinical PhaPT$154,759$154,759
James Butler IiiDirector-$1,350$1,350

Board Members and Trustees

NameTitle
Dennis ReesePresident/CEO - Php
Linda DickinsonDirector of Med Res Mgmt
George SchneiderCFO/COO - Php
Joy WahawisanClinical Pharmacist
Ann Hunt-fugate RphMgr Clinical Pharm
Dennis SwanPres/CEO - Shs
Paula HowardSenior Sales Rep
Kevin KaplanVP Sales
Revenue and Support

Revenue Composition

Contributions and Grants
$0
Program Service Revenue
$847,726
Investment Income
$284,896
Other Revenue
$413,552
Change in Net Assets
$513,978

Audited Revenue Reconciliation

Revenue per Audited Statements
$1,453,018
Revenue Not Reported on Financial Statements
$93,156
Revenue Not Reported on Form 990
$110,016
Other Revenue Adjustments
$93,156
Total Revenue per Audited Statements
$1,563,034
Total Revenue per Form 990
$1,546,174
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Other Expenses$878,821
Salaries, Compensation, and Employee Benefits$23,197
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Benefits to Members$130,178--$130,178
Other Salaries and Wages$17,457$5,604-$23,061
Other Expenses$20,892$22,628-$22,628
Fees for Service Investment Mgmnt Fees-$22,312-$22,312
Office Expenses$700$225-$925
Payroll Taxes$103$33-$136
Total Functional Expenses$974,688$57,508$0$1,032,196

Audited Expense Reconciliation

Line ItemAmount
Total Expenses per Form 990$1,032,196
Expenses per Audited Statements$939,040
Total Expenses per Audited Statements$939,040
Expenses Not Reported on Financial Statements$93,156
Other Expense Adjustments$93,156
Fundraising, Events, and Gaming
Fundraising activities
No
Gaming activities
No
Professional fundraiser used
No

Fundraising and Gaming Totals

Line ItemAmount
Professional Fundraising Fees$0
Political and Lobbying Activity
Political campaign activity
No
Subject to proxy tax
No
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Business relationship with family members
No
Business relationship with organization members
No
Material changes to governing documents
No
Compensation from other sources disclosed
No
CEO compensation reviewed
Yes
Other officer compensation reviewed
Yes
Conflict-of-interest policy
Yes
Audited financial statements prepared
Yes
Key decisions subject to board approval
Yes
Management duties delegated
No

Governance Explanations

Form 990, Page 6, Part VI, Line 6

Php is the sole member of sphp and sparrow is the parent and sole member of php. The board members elected by the board of directors are ratified by the sparrow board of directors. Decisions of the sphp board of directors may be subject to approval by the sparrow board of directors.

Form 990, Page 6, Part VI, Line 7A

Php is the sole member of sphp and sparrow is the parent and sole member of php. The board members elected by the board of directors are ratified by the sparrow board of directors. Decisions of the sphp board of directors may be subject to approval by the sparrow board of directors.

Form 990, Page 6, Part VI, Line 7B

Php is the sole member of sphp and sparrow is the parent and sole member of php. The board members elected by the board of directors are ratified by the sparrow board of directors. Decisions of the sphp board of directors may be subject to approval by the sparrow board of directors.

Form 990, Page 6, Part VI, Line 11B

Copies of the 2016 form 990 are reviewed by management. Once management completed its review of the form 990 copies were provided at the october 2017 board meeting for all board members to review and comment on.

Form 990, Page 6, Part VI, Line 12C

1) corporate compliance sends out the conflict of interest policy and questionnaires to all voting board members and the executive team annually. 2) all disclosures are received and reviewed by corporate compliance. 3) all disclosures are given a resolution code and presented to the ceo and governance committee of the board. 4) all board/committee level disclosures are provided to the respective board chair and executive liaison to ensure issues can be addressed on a transactional level (i.e. If a vote is required on a transaction involving an interested person).

Form 990, Page 6, Part VI, Line 15A

The process for determining compensation for the ceo of the organization involved the following: utilizing the compensation committee, using independent consultants, reviewing other similar organizations' 990s, compensation surveys, and final approval by the sparrow board of directors, as well as finalizing the salary package with a written employment contract.

Form 990, Page 6, Part VI, Line 15B

The process for determining compensation for officers or key employees of the organization involved the following: utilizing the compensation committee, using independent consultants, reviewing other similar organizations' 990s, using compensation surveys, and final approval by the sparrow board of directors, as well as finalizing the salary package with a written employment contract.

Form 990, Page 6, Part VI, Line 19

The governing documents, conflict of interest policy and financial statements are made available to the public as follows: the governing documents of sphp are submitted to department of insurance and financial services (difs). Those are publicly available to interested parties. The conflict of interest is available through sparrow by request to the sparrow compliance officer.

Filing and Contact Details

Filer

Filer Name
Sparrow Php
EIN
36-4497604
Phone
5173648400
Address
PO BOX 30377, LANSING, MI 48909

Signing Officer

Name
Dennis Reese
Title
President/CEO - Php
Phone
5173648400
Signed
2017-11-07
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Dennis Swan
Formed
2002
Legal Domicile
Mi
Voting Board Members
2
Independent Board Members
1
Employees
0

Preparer

Firm
Andrews Hooper Pavlik Plc
Address
4295 OKEMOS RD STE 200, OKEMOS, MI 48864-6201
Preparer
Mark E Hooper
Phone
5177060800
Supplemental Narrative

Additional Explanations

Form 990

All lines left blank are not applicable to the organization.

Form 990, Page 2, Part III, Line 3

During the year ended december 31, 2015 sparrow php was not recommended by the state of michigan as an approved carrier of michigan medicaid insurance for the prosperity region in which the company operates. As a result effective december 31, 2015, sparrow php sold 100 percent of the membership to an unaffiliated health plan. The membership was sold for an agreed upon sum that was collected subsequent to year end. Effective april 30, 2017 sparrow php was merged into physicians health plan after approval by the board of directors and the commissioner of the department of insurance and financial services (difs). The activity reported on the 2016 form 990 is winding down of operations for sparrow php.

Form 990, Page 2, Part III, Line 4A

Sphp's success in managing health care is due in part to the extensive network of participating providers in the hdn network. The hmo/hdn contractual arrangements allow sphp to arrange for healthcare to patients covered by the state of michigan's medicaid benefit plan. This arrangement allows the members to access a wide variety of independent providers within each hdn including physicians, hospitals, pharmacies, skilled nursing facilities, and allied health professionals. Sphp members may also receive care for services from a nonparticipating provider if such referral is recommended by a hdn participating physician and the service required for treatment, as determined by the hdn, is not available within the hdn's network. Sphp offers a variety of health care programs. Sphp offers choices that provide coverage within the network of contracted hdn providers, limited coverage outside of the sphp network, various levels of deductibles, co- payments, and coverage limits, all of which are designed to be responsive to payor needs. Sphp is owned by physician health plan (php). Physicians health plan (php) is owned by sparrow health system (sparrow) and holds a certificate of authority as an hmo in the state of michigan. Php is primarily a commercial hmo and also operates three subsidiaries, php insurance company (phpic), a commercial insurance company, sphp, and php service company (tpa) a third party administrator. All staffing functions and reporting are accomplished through the use of the same staff as php. Effective december 31, 2015 sparrow php sold 100 percent of its membership to an unaffiliated health plan. Php gained approval form the board of directors and commissioner of the department of insurance and financial services to merge sparrow php into php effective april 2017. Unless specifically noted, all references to php apply to php, phpic, sphp, and tpa. Php's service area includes the michigan counties of ingham, eaton, clinton, shiawassee, montcalm, gratiot, ionia, jackson, hillsdale, portions of isabella, saginaw, washtenaw, and lenawee. Phpic offers products across michigan. For the years ended december 31, 2015 and prior the sphp product was available to medicaid enrollees in eaton, clinton, ingham, ionia, montcalm, isabella, and shiawassee counties. As of december 31, 2016, there were approximately 36,000 enrollees in php's commercial hmo, 15,700 in tpa, 5,500 in phpic, and 0 enrollees in sphp. One hundred percent of sphp's membership was sold to an unrelated health plan effective december 30, 2015. Php and sphp contract directly with physicians health network (phn), a wholly owned subsidiary of sparrow. The php network is approximately 684 primary care physicians, 1,085 specialty care physicians, 532 allied health professionals, and 572 organizational providers that include 31 hospitals. Php measures the quality of care provided to its enrollees through annual review of indicators such as: - disease management program participation and outcomes, - quality of care concerns, and - hedis measures: the health plan effectiveness data and information set (hedis) is a group of nationally recognized measures of health plan performance in a variety of clinical and non-clinical areas. Php uses the effectiveness of care measures to determine progress and improvement in areas such as: diabetes, asthma, depression and follow-up after mental health admissions, breast and cervical cancer screenings, use of beta- blockers after heart attacks, child and adolescent immunizations, cholesterol management, controlling high blood pressure, smoking cessation, prenatal and postpartum care, and treatment of childhood respiratory infections. Php measures the quality of service provided to its enrollees by the review of performance measures related to: - access and availability of providers, - enrollee complaints and appeals, - customer service telephone access performance, and - member assessment: the consumer assessment of healthcare provi

Form 990, Part XI, Line 9

Statutory reclass from revenue to expense -70,844 investment expenses -22,312 statutory reclass from revenue to expense 70,844 investment expenses 22,312

Financial Statement Notes

Schedule D, Page 2, Part V, Line 4

Sparrow php does not hold endowments. The endowments are held by sparrow clinton hospital and sparrow foundation. Sparrow health system is the sole member of physicians health plan, sparrow clinton hospital and sparrow foundation. Physicians health plan is the sole member of sparrow php. The endowments are maintained to provide a permanent source of income with the stipulation the principal is kept intact in perpetuity and the income generated from investments of the endowment funds can be used for the purpose established by the endowment.

Schedule D, Page 4, Part XI, Line 4B

Statutory reclass from revenue to expense 70,844 investment expenses 22,312

Schedule D, Page 4, Part XII, Line 4B

Statutory reclass from revenue to expense 70,844 investment expenses 22,312

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This appendix keeps the raw XML leaves available for debugging and edge-case review. The human report above is the primary experience.

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IRS990/ActivityOrMissionDesc0SPARROW PHP'S MISSION IS TO IMPROVE THE HEALTH STATUS OF ITS MEMBERS BY FACILITATING QUALITY, COMPASSIONATE, ACCESSIBLE, AND COST EFFECTIVE HEALTHCARE.
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IRS990/Desc0SPARROW PHP (SPHP)IS A NON-PROFIT HEALTH MAINTENANCE ORGANIZATION (HMO). SPHP USES A PRIMARY CARE CONCEPT FOR DELIVERING HEALTH CARE IN A HEALTH DELIVERY NETWORK (HDN) STRUCTURE. IT ARRANGES FOR THE PROVISION OF COMPREHENSIVE OUTPATIENT AND INPATIENT MEDICAL AND SURGICAL SERVICES TO MEMBERS AND THEIR QUALIFIED DEPENDENTS ON THE BASIS OF A FIXED PREPAID SUM WITHOUT REGARD TO THE FREQUENCY OR EXTENT OF SERVICES FURNISHED TO ANY PARTICULAR MEMBER OR QUALIFIED DEPENDENT. SPHP CONTRACTS WITH VARIOUS HDNS WHO PROVIDE HEALTHCARE SERVICES TO MEMBERS. SPHP'S COMMITMENT IS TO DEVELOP AND DELIVER QUALITY MANAGED CARE PRODUCTS AT A REASONABLE COST FOR ITS MEMBERS. SPHP'S SUCCESS IN MANAGING HEALTH CARE IS DUE IN PART TO THE EXTENSIVE NETWORK OF PARTICIPATING PROVIDERS IN THE HDN NETWORK. THE HMO/HDN CONTRACTUAL ARRANGEMENTS ALLOW SPHP TO ARRANGE FOR HEALTHCARE TO PATIENTS COVERED BY THE STATE OF MICHIGAN'S MEDICAID BENEFIT PLAN. THIS ARRANGEMENT ALLOWS THE MEMBERS TO ACCESS A WIDE VARIETY OF INDEPENDENT PROVIDERS WITHIN EACH HDN INCLUDING PHYSICIANS, HOSPITALS, PHARMACIES, SKILLED NURSING FACILITIES, AND ALLIED HEALTH PROFESSIONALS. SPHP MEMBERS MAY ALSO RECEIVE CARE FOR SERVICES FROM A NONPARTICIPATING PROVIDER IF SUCH REFERRAL IS RECOMMENDED BY A HDN PARTICIPATING PHYSICIAN AND THE SERVICE REQUIRED FOR TREATMENT, AS DETERMINED BY THE HDN, IS NOT AVAILABLE WITHIN THE HDN'S NETWORK. SPHP OFFERS A VARIETY OF HEALTH CARE PROGRAMS. SPHP OFFERS CHOICES THAT PROVIDE COVERAGE WITHIN THE NETWORK OF CONTRACTED HDN PROVIDERS, LIMITED COVERAGE OUTSIDE OF THE SPHP NETWORK, VARIOUS LEVELS OF DEDUCTIBLES, CO- PAYMENTS, AND COVERAGE LIMITS, ALL OF WHICH ARE DESIGNED TO BE RESPONSIVE TO PAYOR NEEDS. SPHP IS OWNED BY PHYSICIAN HEALTH PLAN (PHP). PHYSICIANS HEALTH PLAN (PHP) IS OWNED BY SPARROW HEALTH SYSTEM (SPARROW) AND HOLDS A CERTIFICATE OF AUTHORITY AS AN HMO IN THE STATE OF MICHIGAN. PHP IS PRIMARILY A COMMERCIAL HMO AND ALSO OPERATES THREE SUBSIDIARIES, PHP INSURANCE COMPANY (PHPIC), A COMMERCIAL INSURANCE COMPANY, SPHP, AND PHP SERVICE COMPANY (TPA) A THIRD PARTY ADMINISTRATOR. ALL STAFFING FUNCTIONS AND REPORTING ARE ACCOMPLISHED THROUGH THE USE OF THE SAME STAFF AS PHP. EFFECTIVE DECEMBER 31, 2015 SPARROW PHP SOLD 100 PERCENT OF ITS MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. PHP GAINED APPROVAL FORM THE BOARD OF DIRECTORS AND COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES TO MERGE SPARROW PHP INTO PHP EFFECTIVE APRIL 2017. UNLESS SPECIFICALLY NOTED, ALL REFERENCES TO PHP APPLY TO PHP, PHPIC, SPHP, AND TPA. PHP'S SERVICE AREA INCLUDES THE MICHIGAN COUNTIES OF INGHAM, EATON, CLINTON, SHIAWASSEE, MONTCALM, GRATIOT, IONIA, JACKSON, HILLSDALE, PORTIONS OF ISABELLA, SAGINAW, WASHTENAW, AND LENAWEE. PHPIC OFFERS PRODUCTS ACROSS MICHIGAN. FOR THE YEARS ENDED DECEMBER 31, 2015 AND PRIOR THE SPHP PRODUCT WAS AVAILABLE TO MEDICAID ENROLLEES IN EATON, CLINTON, INGHAM, IONIA, MONTCALM, ISABELLA, AND SHIAWASSEE COUNTIES. AS OF DECEMBER 31, 2016, THERE WERE APPROXIMATELY 36,000 ENROLLEES IN PHP'S COMMERCIAL HMO, 15,700 IN TPA, 5,500 IN PHPIC, AND 0 ENROLLEES IN SPHP. ONE HUNDRED PERCENT OF SPHP'S MEMBERSHIP WAS SOLD TO AN UNRELATED HEALTH PLAN EFFECTIVE DECEMBER 30, 2015. PHP AND SPHP CONTRACT DIRECTLY WITH PHYSICIANS HEALTH NETWORK (PHN), A WHOLLY OWNED SUBSIDIARY OF SPARROW. THE PHP NETWORK IS APPROXIMATELY 684 PRIMARY CARE PHYSICIANS, 1,085 SPECIALTY CARE PHYSICIANS, 532 ALLIED HEALTH PROFESSIONALS, AND 572 ORGANIZATIONAL PROVIDERS THAT INCLUDE 31 HOSPITALS. PHP MEASURES THE QUALITY OF CARE PROVIDED TO ITS ENROLLEES THROUGH ANNUAL REVIEW OF INDICATORS SUCH AS: - DISEASE MANAGEMENT PROGRAM PARTICIPATION AND OUTCOMES, - QUALITY OF CARE CONCERNS, AND - HEDIS MEASURES: THE HEALTH PLAN EFFECTIVENESS DATA AND INFORMATION SET (HEDIS) IS A GROUP OF NATIONALLY RECOGNIZED MEASURES OF HEALTH PLAN PERFORMANCE IN A VARIETY OF CLINICAL AND NON-CLINICAL AREAS. PHP USES THE EFFECTIVENESS OF CARE MEASURES TO DETERMINE PROGRESS AND IMPROVEMENT IN AREAS SU
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IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt0SPARROW PHP DOES NOT HOLD ENDOWMENTS. THE ENDOWMENTS ARE HELD BY SPARROW CLINTON HOSPITAL AND SPARROW FOUNDATION. SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF PHYSICIANS HEALTH PLAN, SPARROW CLINTON HOSPITAL AND SPARROW FOUNDATION. PHYSICIANS HEALTH PLAN IS THE SOLE MEMBER OF SPARROW PHP. THE ENDOWMENTS ARE MAINTAINED TO PROVIDE A PERMANENT SOURCE OF INCOME WITH THE STIPULATION THE PRINCIPAL IS KEPT INTACT IN PERPETUITY AND THE INCOME GENERATED FROM INVESTMENTS OF THE ENDOWMENT FUNDS CAN BE USED FOR THE PURPOSE ESTABLISHED BY THE ENDOWMENT.
IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt1STATUTORY RECLASS FROM REVENUE TO EXPENSE 70,844 INVESTMENT EXPENSES 22,312
IRS990ScheduleD/SupplementalInformationDetail/ExplanationTxt2STATUTORY RECLASS FROM REVENUE TO EXPENSE 70,844 INVESTMENT EXPENSES 22,312
IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE D, PAGE 2, PART V, LINE 4
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IRS990ScheduleD/SupplementalInformationDetail/FormAndLineReferenceDesc2SCHEDULE D, PAGE 4, PART XII, LINE 4B
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IRS990ScheduleJ/RltdOrgOfficerTrstKeyEmplGrp/TitleTxt0PRESIDENT/CEO - PHP
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IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt0SPARROW HEALTH SYSTEM IS THE SOLE MEMBER OF PHYSICIAN HEALTH PLAN, AND PHP IS THE SOLE MEMBER OF SPARROW PHP. SPARROW HEALTH SYSTEM IS AN INTEGRATED NON-PROFIT ORGRANIZATION THAT INCLUDES A NUMBER OF NON-PROFIT ENTITIES. THE METHODS SELECTED FOR DETERMINING THE COMPENSATION OF THE CEO/EXECUTIVE DIRECTOR ARE METHODS WHICH ARE BEING USED BY ALL SPARROW HEALTH SYSTEM RELATED ENTITIES.
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt1THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WILL BE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES.
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt2THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WILL BE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt3THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WILL BE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt4THE 2016 INCENTIVE COMPENSATION PLAN PAYMENTS WERE ACCRUED IN 2016 AND WILL BE PAID IN 2017. THE INCENTIVE COMPENSATION PLAN IS BASED, IN PART, ON THE OPERATING MARGIN OF SPARROW HEALTH SYSTEM AS WELL AS AFFILIATED COMPANIES
IRS990ScheduleJ/SupplementalInformationDetail/ExplanationTxt5DENNIS SWAN IS A FORMER BOARD MEMBER OF SPARROW PHP. MR. SWAN IS BEING COMPENSATED BY SPARROW HEALTH SYSTEM AND AFFILIATES FOR SERVICES PROVIDED TO SPARROW HEALTH SYSTEM AND AFFILIATES IN A POSITION OTHER THAN AS A BOARD MEMBER OF SPARROW PHP. THE BOARD MEMBER IS NOT BEING COMPENSATED FOR ANY PAST SERVICES PROVIDED TO SPARROW PHP.
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc0SCHEDULE J, PAGE 1, PART I, LINE 3
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc1SCHEDULE J, PAGE 1, PART I, LINE 5A
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc2SCHEDULE J, PAGE 1, PART I, LINE 5B
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc3SCHEDULE J, PAGE 1, PART I, LINE 6A
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc4SCHEDULE J, PAGE 1, PART I, LINE 6B
IRS990ScheduleJ/SupplementalInformationDetail/FormAndLineReferenceDesc5SCHEDULE J, PART III
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IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt0ALL LINES LEFT BLANK ARE NOT APPLICABLE TO THE ORGANIZATION.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt1DURING THE YEAR ENDED DECEMBER 31, 2015 SPARROW PHP WAS NOT RECOMMENDED BY THE STATE OF MICHIGAN AS AN APPROVED CARRIER OF MICHIGAN MEDICAID INSURANCE FOR THE PROSPERITY REGION IN WHICH THE COMPANY OPERATES. AS A RESULT EFFECTIVE DECEMBER 31, 2015, SPARROW PHP SOLD 100 PERCENT OF THE MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. THE MEMBERSHIP WAS SOLD FOR AN AGREED UPON SUM THAT WAS COLLECTED SUBSEQUENT TO YEAR END. EFFECTIVE APRIL 30, 2017 SPARROW PHP WAS MERGED INTO PHYSICIANS HEALTH PLAN AFTER APPROVAL BY THE BOARD OF DIRECTORS AND THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS). THE ACTIVITY REPORTED ON THE 2016 FORM 990 IS WINDING DOWN OF OPERATIONS FOR SPARROW PHP.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt2SPHP'S SUCCESS IN MANAGING HEALTH CARE IS DUE IN PART TO THE EXTENSIVE NETWORK OF PARTICIPATING PROVIDERS IN THE HDN NETWORK. THE HMO/HDN CONTRACTUAL ARRANGEMENTS ALLOW SPHP TO ARRANGE FOR HEALTHCARE TO PATIENTS COVERED BY THE STATE OF MICHIGAN'S MEDICAID BENEFIT PLAN. THIS ARRANGEMENT ALLOWS THE MEMBERS TO ACCESS A WIDE VARIETY OF INDEPENDENT PROVIDERS WITHIN EACH HDN INCLUDING PHYSICIANS, HOSPITALS, PHARMACIES, SKILLED NURSING FACILITIES, AND ALLIED HEALTH PROFESSIONALS. SPHP MEMBERS MAY ALSO RECEIVE CARE FOR SERVICES FROM A NONPARTICIPATING PROVIDER IF SUCH REFERRAL IS RECOMMENDED BY A HDN PARTICIPATING PHYSICIAN AND THE SERVICE REQUIRED FOR TREATMENT, AS DETERMINED BY THE HDN, IS NOT AVAILABLE WITHIN THE HDN'S NETWORK. SPHP OFFERS A VARIETY OF HEALTH CARE PROGRAMS. SPHP OFFERS CHOICES THAT PROVIDE COVERAGE WITHIN THE NETWORK OF CONTRACTED HDN PROVIDERS, LIMITED COVERAGE OUTSIDE OF THE SPHP NETWORK, VARIOUS LEVELS OF DEDUCTIBLES, CO- PAYMENTS, AND COVERAGE LIMITS, ALL OF WHICH ARE DESIGNED TO BE RESPONSIVE TO PAYOR NEEDS. SPHP IS OWNED BY PHYSICIAN HEALTH PLAN (PHP). PHYSICIANS HEALTH PLAN (PHP) IS OWNED BY SPARROW HEALTH SYSTEM (SPARROW) AND HOLDS A CERTIFICATE OF AUTHORITY AS AN HMO IN THE STATE OF MICHIGAN. PHP IS PRIMARILY A COMMERCIAL HMO AND ALSO OPERATES THREE SUBSIDIARIES, PHP INSURANCE COMPANY (PHPIC), A COMMERCIAL INSURANCE COMPANY, SPHP, AND PHP SERVICE COMPANY (TPA) A THIRD PARTY ADMINISTRATOR. ALL STAFFING FUNCTIONS AND REPORTING ARE ACCOMPLISHED THROUGH THE USE OF THE SAME STAFF AS PHP. EFFECTIVE DECEMBER 31, 2015 SPARROW PHP SOLD 100 PERCENT OF ITS MEMBERSHIP TO AN UNAFFILIATED HEALTH PLAN. PHP GAINED APPROVAL FORM THE BOARD OF DIRECTORS AND COMMISSIONER OF THE DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES TO MERGE SPARROW PHP INTO PHP EFFECTIVE APRIL 2017. UNLESS SPECIFICALLY NOTED, ALL REFERENCES TO PHP APPLY TO PHP, PHPIC, SPHP, AND TPA. PHP'S SERVICE AREA INCLUDES THE MICHIGAN COUNTIES OF INGHAM, EATON, CLINTON, SHIAWASSEE, MONTCALM, GRATIOT, IONIA, JACKSON, HILLSDALE, PORTIONS OF ISABELLA, SAGINAW, WASHTENAW, AND LENAWEE. PHPIC OFFERS PRODUCTS ACROSS MICHIGAN. FOR THE YEARS ENDED DECEMBER 31, 2015 AND PRIOR THE SPHP PRODUCT WAS AVAILABLE TO MEDICAID ENROLLEES IN EATON, CLINTON, INGHAM, IONIA, MONTCALM, ISABELLA, AND SHIAWASSEE COUNTIES. AS OF DECEMBER 31, 2016, THERE WERE APPROXIMATELY 36,000 ENROLLEES IN PHP'S COMMERCIAL HMO, 15,700 IN TPA, 5,500 IN PHPIC, AND 0 ENROLLEES IN SPHP. ONE HUNDRED PERCENT OF SPHP'S MEMBERSHIP WAS SOLD TO AN UNRELATED HEALTH PLAN EFFECTIVE DECEMBER 30, 2015. PHP AND SPHP CONTRACT DIRECTLY WITH PHYSICIANS HEALTH NETWORK (PHN), A WHOLLY OWNED SUBSIDIARY OF SPARROW. THE PHP NETWORK IS APPROXIMATELY 684 PRIMARY CARE PHYSICIANS, 1,085 SPECIALTY CARE PHYSICIANS, 532 ALLIED HEALTH PROFESSIONALS, AND 572 ORGANIZATIONAL PROVIDERS THAT INCLUDE 31 HOSPITALS. PHP MEASURES THE QUALITY OF CARE PROVIDED TO ITS ENROLLEES THROUGH ANNUAL REVIEW OF INDICATORS SUCH AS: - DISEASE MANAGEMENT PROGRAM PARTICIPATION AND OUTCOMES, - QUALITY OF CARE CONCERNS, AND - HEDIS MEASURES: THE HEALTH PLAN EFFECTIVENESS DATA AND INFORMATION SET (HEDIS) IS A GROUP OF NATIONALLY RECOGNIZED MEASURES OF HEALTH PLAN PERFORMANCE IN A VARIETY OF CLINICAL AND NON-CLINICAL AREAS. PHP USES THE EFFECTIVENESS OF CARE MEASURES TO DETERMINE PROGRESS AND IMPROVEMENT IN AREAS SUCH AS: DIABETES, ASTHMA, DEPRESSION AND FOLLOW-UP AFTER MENTAL HEALTH ADMISSIONS, BREAST AND CERVICAL CANCER SCREENINGS, USE OF BETA- BLOCKERS AFTER HEART ATTACKS, CHILD AND ADOLESCENT IMMUNIZATIONS, CHOLESTEROL MANAGEMENT, CONTROLLING HIGH BLOOD PRESSURE, SMOKING CESSATION, PRENATAL AND POSTPARTUM CARE, AND TREATMENT OF CHILDHOOD RESPIRATORY INFECTIONS. PHP MEASURES THE QUALITY OF SERVICE PROVIDED TO ITS ENROLLEES BY THE REVIEW OF PERFORMANCE MEASURES RELATED TO: - ACCESS AND AVAILABILITY OF PROVIDERS, - ENROLLEE COMPLAINTS AND APPEALS, - CUSTOMER SERVICE TELEPHONE ACCESS PERFORMANCE, AND - MEMBER ASSESSMENT: THE CONSUMER ASSESSMENT OF HEALTHCARE PROVI
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt3PHP IS THE SOLE MEMBER OF SPHP AND SPARROW IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS MAY BE SUBJECT TO APPROVAL BY THE SPARROW BOARD OF DIRECTORS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt4PHP IS THE SOLE MEMBER OF SPHP AND SPARROW IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS MAY BE SUBJECT TO APPROVAL BY THE SPARROW BOARD OF DIRECTORS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt5PHP IS THE SOLE MEMBER OF SPHP AND SPARROW IS THE PARENT AND SOLE MEMBER OF PHP. THE BOARD MEMBERS ELECTED BY THE BOARD OF DIRECTORS ARE RATIFIED BY THE SPARROW BOARD OF DIRECTORS. DECISIONS OF THE SPHP BOARD OF DIRECTORS MAY BE SUBJECT TO APPROVAL BY THE SPARROW BOARD OF DIRECTORS.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt6COPIES OF THE 2016 FORM 990 ARE REVIEWED BY MANAGEMENT. ONCE MANAGEMENT COMPLETED ITS REVIEW OF THE FORM 990 COPIES WERE PROVIDED AT THE OCTOBER 2017 BOARD MEETING FOR ALL BOARD MEMBERS TO REVIEW AND COMMENT ON.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt71) CORPORATE COMPLIANCE SENDS OUT THE CONFLICT OF INTEREST POLICY AND QUESTIONNAIRES TO ALL VOTING BOARD MEMBERS AND THE EXECUTIVE TEAM ANNUALLY. 2) ALL DISCLOSURES ARE RECEIVED AND REVIEWED BY CORPORATE COMPLIANCE. 3) ALL DISCLOSURES ARE GIVEN A RESOLUTION CODE AND PRESENTED TO THE CEO AND GOVERNANCE COMMITTEE OF THE BOARD. 4) ALL BOARD/COMMITTEE LEVEL DISCLOSURES ARE PROVIDED TO THE RESPECTIVE BOARD CHAIR AND EXECUTIVE LIAISON TO ENSURE ISSUES CAN BE ADDRESSED ON A TRANSACTIONAL LEVEL (I.E. IF A VOTE IS REQUIRED ON A TRANSACTION INVOLVING AN INTERESTED PERSON).
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt8THE PROCESS FOR DETERMINING COMPENSATION FOR THE CEO OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, USING INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE SPARROW BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt9THE PROCESS FOR DETERMINING COMPENSATION FOR OFFICERS OR KEY EMPLOYEES OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, USING INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, USING COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE SPARROW BOARD OF DIRECTORS, AS WELL AS FINALIZING THE SALARY PACKAGE WITH A WRITTEN EMPLOYMENT CONTRACT.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt10THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE MADE AVAILABLE TO THE PUBLIC AS FOLLOWS: THE GOVERNING DOCUMENTS OF SPHP ARE SUBMITTED TO DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES (DIFS). THOSE ARE PUBLICLY AVAILABLE TO INTERESTED PARTIES. THE CONFLICT OF INTEREST IS AVAILABLE THROUGH SPARROW BY REQUEST TO THE SPARROW COMPLIANCE OFFICER.
IRS990ScheduleO/SupplementalInformationDetail/ExplanationTxt11STATUTORY RECLASS FROM REVENUE TO EXPENSE -70,844 INVESTMENT EXPENSES -22,312 STATUTORY RECLASS FROM REVENUE TO EXPENSE 70,844 INVESTMENT EXPENSES 22,312
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc0FORM 990
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc1FORM 990, PAGE 2, PART III, LINE 3
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc2FORM 990, PAGE 2, PART III, LINE 4A
IRS990ScheduleO/SupplementalInformationDetail/FormAndLineReferenceDesc3FORM 990, PAGE 6, PART VI, LINE 6

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