Munson Medical Center

“Munson medical center is organized on a nonstock membership basis. The sole member is munson healthcare, an irs section 501(c)(3) tax-exempt organization. In the event of dissolution, munson medical center's net assets would be distributed to munson healthcare.”

“Munson healthcare, as the sole member, elects the trustees for all subsidiary entities, including munson medical center. Nominations to munson healthcare for subsidiary trustees are considered and recommended by the munson healthcare governance committee. Four trustees of munson medical center also are directors of munson healthcare.”

“Certain decisions of the munson medical center (mmc) trustees are approved by the munson healthcare board of directors including: adoption, amendment, restatement or repeal of the articles of incorporation or bylaws of mmc; adoption, execution, revocation or abandonment of a plan of dissolution, merger, consolidation, or reorganization involving mmc; sale, lease, exchange or other disposition of all or substantially all of the property and assets of mmc; acquisition of or the establishment of any subsidiary or affiliate of mmc; adoption of all operating budgets and capital expenditure budgets for mmc; incurrence of operating or capital expenditures by mmc which cause the aggregate operating or capital expenditures to exceed budgeted aggregates by more than five percent (5%) in any fiscal year; incurrence of secured borrowings of mmc, with the exception of equipment leases and purchase money security interests approved as part of mmc's budget; adoption or change in the mission statement, purposes or the strategic goals of mmc; changing substantially the scope of mmc's clinical services and programs offered by mmc; and appointment or removal the president of mmc.”

“The munson medical center board is committed to the accuracy and thoroughness of the form 990 reporting. Munson medical center belongs to the munson healthcare system. Munson healthcare is the parent company in the munson healthcare system, which undergoes an audit by an external audit firm. At the corporate level, the responsible individuals from the finance, administration, patient financial services, legal, human resources, public relations, and fund development departments prepare and review portions of the form 990. The compensation and leadership development committee reviews the compensation information contained in the core form as well as the schedule j information. The conflict, valuation and compliance committee oversees the conflict of interest disclosure process for board members and key employees to ensure compliance with the conflict of interest policy. The audit committee oversees the form 990 preparation process by ensuring proper controls, policies, people and resources are in place to produce an accurate return.”

“The munson healthcare board of directors (the system parent organization) has a standing conflict, valuation and compliance ("cvc") committee. The cvc committee is composed of independent board and community members. The cvc committee is delegated authority by the board to review and approve the reasonableness/fair market value of financial transactions/arrangements with disqualified persons. Annually, each board member of munson healthcare and all of its subsidiary/controlled entities and all munson executives are required to complete a conflict of interest disclosure/questionnaire. The responses to the disclosure/questionnaire are reviewed by the munson legal department. Any financial arrangements/potential conflicts identified through the disclosure/questionnaires are presented to the cvc committee for its review and determination as to the reasonableness/fair market value. When an action item is considered by a board which involves a potential conflict by a board member, the conflict is disclosed and a board member will abstain from a vote on the action item, and, in addition, the board chair has the discretion/authority to request that the conflicted board member be excused from the meeting for an opportunity for the board to discuss the matter without the presence of the conflicted board member.”

“The process for determining appropriate levels of pay for executive positions within munson healthcare is carefully and thoughtfully directed by the 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. Annually, the committee retains a national independent consultant to ensure that 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. Compensation levels reflect the scope of each executive's responsibilities, educational background, experience, and industry standing as well as individual and organizational performance. Annual compensation for munson executives is determined in part by measurable progress toward the organization's goals including continued improvement in clinical quality, community health, and operational efficiencies. Munson healthcare's intent for executive base compensation is to be at the median when compared to like-size non-profit hospitals and healthcare systems.”

“Compensation of other key employees is consistent with that of the top executives for munson medical center.”

“The munson medical center articles of incorporation are available to the public on the michigan department of treasury website. Munson medical center does not make the bylaws or conflict of interest policy available to the public. Annually, munson healthcare, parent corporation, submits its annual consolidated financial statements to the msrb in compliance with bond disclosure requirements. Additionally, munson medical center prepares and distributes an annual report to the community, which contains financial as well as program data.”

“Purchased services 33,419,983 50,321,579 1,652,351 professional fees 35,815,983 194,299 0 total 69,235,966 50,515,878 1,652,351”

“Invest in munson healthcare foundation contributio -1,829,423 pension and post retirement changes 24,255,260 transfers from affiliates 750,000 transfers to affiliates -27,000,000 total -3,824,163”