Civic Intelligence

Sparrow Carson Hospital

990 • Fiscal year 2020 • EIN 38-1490180

Jan 01, 2020 to Dec 31, 2020 • Filed on Nov 05, 2021

406 E Elm Street PO Box 879Carson City, MI 48811

(989) 584-3971

Siviq Scores

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

Liabilities / Assets

89th percentile

0.88x

Higher debt load relative to assets than 89% of similar nonprofits.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2020

Liabilities / Revenue

68th percentile

0.68x

Higher debt load relative to revenue than 68% of similar nonprofits.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2020

Net Margin

24th percentile

-4.0%

Higher net margin than 24% of similar nonprofits.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2020

Top Officer Pay

89th percentile

$653,533

Higher top officer pay than 89% of similar nonprofits.

Top officer pay equals 1.4% of source-year revenue.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Source year 2020

Asset Growth

23rd percentile

-0.6%

Faster asset growth than 23% of similar nonprofits.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2019 to 2020

Revenue Growth

54th percentile

4.5%

Faster revenue growth than 54% of similar nonprofits.

2020 filings • 501(c)3 • $25M-$50M nonprofits • Annualized from 2019 to 2020

Assets

Down

$35,994,682

Down $211,553 (-0.6%) from 2019

Net Assets

Down

$4,274,097

Down $998,663 (-19%) from 2019

Liabilities

Up

$31,720,585

Up $787,110 (+2.5%) from 2019

Revenue

Up

$46,702,548

Up $2,025,201 (+4.5%) from 2019

Expenses

Down

$48,583,521

Down $2,277,001 (-4.5%) from 2019

Net Income

Up

-$1,880,973

Up $4,302,202 (+70%) from 2019

Historical Trend

Balance Sheet Trend

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

$60M$40M$20M$0-$20MAssets 2010: $46,633,993Liabilities 2010: $23,285,826Net Assets 2010: $23,348,1672010Assets 2011: $46,428,348Liabilities 2011: $23,228,049Net Assets 2011: $23,200,2992011Assets 2012: $45,594,758Liabilities 2012: $25,177,381Net Assets 2012: $20,417,3772012Assets 2013: $43,059,007Liabilities 2013: $27,110,571Net Assets 2013: $15,948,4362013Assets 2014: $39,334,883Liabilities 2014: $24,057,136Net Assets 2014: $15,277,7472014Assets 2015: $53,975,771Liabilities 2015: $20,890,971Net Assets 2015: $33,084,8002015Assets 2016: $56,872,392Liabilities 2016: $24,304,642Net Assets 2016: $32,567,7502016Assets 2017: $53,593,075Liabilities 2017: $26,612,233Net Assets 2017: $26,980,8422017Assets 2018: $37,620,945Liabilities 2018: $29,756,568Net Assets 2018: $7,864,3772018Assets 2019: $36,206,235Liabilities 2019: $30,933,475Net Assets 2019: $5,272,7602019Assets 2020: $35,994,682Liabilities 2020: $31,720,585Net Assets 2020: $4,274,0972020Assets 2021: $33,968,594Liabilities 2021: $31,704,480Net Assets 2021: $2,264,1142021Assets 2022: $32,663,001Liabilities 2022: $35,453,160Net Assets 2022: -$2,790,1592022Assets 2023: $31,994,581Liabilities 2023: $35,274,439Net Assets 2023: -$3,279,8582023Assets 2024: $35,868,961Liabilities 2024: $38,956,665Net Assets 2024: -$3,087,7042024

Highlighted filing

2020

Assets$35,994,682
Liabilities$31,720,585
Net Assets$4,274,097

Operations Trend

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

$80M$60M$40M$20M$0-$20MExpenses 2010: $55,779,8992010Expenses 2011: $60,070,9972011Revenue 2012: $60,166,965Expenses 2012: $60,801,220Net Income 2012: -$634,2552012Revenue 2013: $63,057,034Expenses 2013: $68,499,654Net Income 2013: -$5,442,6202013Revenue 2014: $58,504,514Expenses 2014: $57,449,146Net Income 2014: $1,055,3682014Revenue 2015: $57,377,496Expenses 2015: $56,035,781Net Income 2015: $1,341,7152015Revenue 2016: $54,865,655Expenses 2016: $55,568,811Net Income 2016: -$703,1562016Revenue 2017: $49,354,698Expenses 2017: $60,031,958Net Income 2017: -$10,677,2602017Revenue 2018: $47,019,183Expenses 2018: $53,908,886Net Income 2018: -$6,889,7032018Revenue 2019: $44,677,347Expenses 2019: $50,860,522Net Income 2019: -$6,183,1752019Revenue 2020: $46,702,548Expenses 2020: $48,583,521Net Income 2020: -$1,880,9732020Revenue 2021: $46,073,007Expenses 2021: $48,890,776Net Income 2021: -$2,817,7692021Revenue 2022: $46,658,036Expenses 2022: $49,822,654Net Income 2022: -$3,164,6182022Revenue 2023: $22,272,013Expenses 2023: $24,961,794Net Income 2023: -$2,689,7812023Revenue 2024: $51,549,182Expenses 2024: $51,812,532Net Income 2024: -$263,3502024

Highlighted filing

2020

Revenue$46,702,548
Expenses$48,583,521
Net Income-$1,880,973
Jump To
Filing Snapshot
Filing Period
Jan 1, 2020 to Dec 31, 2020
Signed
Nov 5, 2021
Return Version
2020v4.0
Gross Receipts
$46,702,548
Mission and Program Overview

Mission

The mission of sparrow carson hospital (scch) is to provide high quality & accessible health care services to communities we serve. Scch provides charity care to patients who meet certain criteria.

Balance Sheet Detail
LineBeginningEndChange
Assets
Land, Buildings, and Equipment, Net$18,529,516$16,852,324▼ $1,677,192
Investments in Publicly Traded Securities$8,088,541$8,932,275▲ $843,734
Accounts Receivable$4,981,066$4,895,981▼ $85,085
Savings and Temporary Cash Investments$720,145$1,718,895▲ $998,750
Inventories for Sale or Use$1,280,979$1,285,830▲ $4,851
Prepaid Expenses and Deferred Charges$181,202$196,660▲ $15,458
Cash and Non-Interest-Bearing Accounts$1,152--
Total Assets$36,206,235$35,994,682▼ $211,553
Other Assets Total$2,423,634$2,112,717▼ $310,917
Liabilities
Accounts Payable and Accrued Expenses$28,048,901$28,347,440▲ $298,539
Mortgage Notes Payable Secured by Investment Property$2,324,574$2,593,145▲ $268,571
Other Liabilities$560,000$780,000▲ $220,000
Total Liabilities$30,933,475$31,720,585▲ $787,110
Net Assets / Fund Balance
Net Assets Without Donor Restrictions$5,272,760$4,274,097▼ $998,663
Total Net Assets Fund Balance$5,272,760$4,274,097▼ $998,663
Total Liabilities and Net Assets / Fund Balance$36,206,235$35,994,682▼ $211,553

Asset Categories

AssetBook ValueDepreciationBasis
Equipment$6,059,306$12,308,172$18,367,478
Buildings$10,129,228$5,372,071$15,501,299
Land$615,000-$615,000
Leasehold Improvements$75$69,595$69,670
Other Land Buildings$48,715-$48,715
Other Assets Org$314,210--

Endowment Activity

PeriodBeginningContrib.Gain/LossOther UsesEnd
2020$4,912,247$237,860▲ $456,214-$5,606,321
2019$4,700,296$39,943▲ $172,008-$4,912,247
2018$3,236,464$314,065▲ $55,042-$3,605,571
2017$3,070,379$114,433▲ $51,652-$3,236,464
2016$2,839,263$191,313▲ $39,803-$3,070,379
Compensation and Service Providers

Employees

NameTitleFull / Part TimeBaseOtherTotal
Mark BrettFormer Board--$653,533$653,533
Paula ReichleSr VP - CFO--$632,321$632,321
Mark BrettFormer Board Member-$473,946$111,239$585,185
Christopher E Herald MdFormer BoardFT$480,540$56,204$536,744
Paula ReichleSr VP - CFO - Shs-$462,463$74,281$536,744
Parutappa Bhimalli MdPhysicianFT$346,285$156,482$502,767
Christopher E Herald MdFormer Board Member-$463,233$50,799$497,136
Michelle BecherPhysicianFT$420,138$126,002$493,809
Thomas OstranderFormer Board--$437,139$437,139
Susan OttPhysicianFT$345,069$36,433$375,352
David J Freestone MdBoard Mbr/phFT$308,254$45,806$354,060
Michael Racine MdPhysicianFT$236,788$87,912$354,060
William HoweFormer Board--$318,533$318,533
Kira Carter-robertsonBoard Member-$231,640$76,505$276,130
Linda ReetzFormer Offic--$274,896$274,896
Douglas Poff DoFormer BoardFT$230,462$43,706$274,168
Thomas OstranderFormer Board Member-$187,397$46,904$274,168
Janet EngPhysicianFT$197,683$30,801$266,649
Nancy WeaverFormer OfficFT-$139,505$139,505
Gary ReetzBoard Member--$32,670$32,670
Roderick CoySecretary-$658-$658

Board Members and Trustees

NameTitle
Richard SchroederChair
Carol Priebe WilesVice Chair
David J Freestone MdBoard Mbr/physician
Brent WilsonBoard Member
Christopher CoppBoard Member
Daniyel McalveyBoard Member
Jean SouthwardBoard Member
Russell Anderson DoBoard Member
Douglas Poff DoFormer Board Member
William HoweFormer Board Member
Mark BrisboeCFO
Linda ReetzFormer Officer
Nancy WeaverFormer Officer

Highest Paid Contractors

ContractorServicesLocationCompensation
Physician Anesthesia Srv PCStaffing Servcs1200 E MICHIGAN AVE STE 370, Lansing, MI 48912-1897$192,514
Revenue and Support

Revenue Composition

Contributions and Grants
$5,650,067
Program Service Revenue
$39,096,482
Investment Income
$0
Other Revenue
$1,955,999
Change in Net Assets
$-1,880,973
Expenses and Functional Allocation

Major Expense Lines

Line ItemAmount
Salaries, Compensation, and Employee Benefits$27,090,648
Other Expenses$21,492,873
Grants and Similar Amounts Paid$0
Professional Fundraising Fees$0
Total Fundraising Expense$0

Functional Expense Allocation

Line ItemProgramManagementFundraisingTotal
Other Salaries and Wages$19,495,037$1,628,354-$21,123,391
Payments to Affiliates$3,555,739--$3,555,739
Other Employee Benefits$2,941,940--$2,941,940
Depreciation Depletion$2,927,936--$2,927,936
Payroll Taxes$1,248,829$1,499,699-$2,748,528
Fees for Services Management$1,886,030$6,123-$1,892,153
Occupancy$821,297$302,482-$1,123,779
Other Expenses$244,200$642,308-$886,508
Insurance$87,178$535,208-$622,386
Current Officers, Directors, Trustees, and Key Employees-$276,789-$276,789
All Other Expenses$273,964--$273,964
Interest-$141,589-$141,589
Conferences and Meetings$72,748$8,198-$80,946
Office Expenses$52,375$10,221-$62,596
Advertising$756$42,024-$42,780
Fees for Service Investment Mgmnt Fees$15,042--$15,042
Fees for Services Accounting$1,782$-30,310-$-28,528
Total Functional Expenses$43,469,239$5,114,282$0$48,583,521
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
Lobbying activity
No
Subject to proxy tax
No
Insider Transactions and Loans

Interested-Person Transactions

Interested PartyRelationshipDescriptionShared RevenueAmount
Jasse AkinFamilyEmployeeNo$61,575
Debt and Bond Financing

Other Reported Liabilities

LiabilityAmount
Professional Liability Claims Reserv$780,000
Governance and Compliance

Governance Checklist

Compiled or reviewed by an accountant
No
Annual disclosure for covered persons
Yes
Audit committee
Yes
Backup withholding compliance
Yes
Business relationship with 35% controlled entity
No
Business relationship with family members
Yes
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

Sparrow health system is the sole member of sparrow carson hospital and has 100% ownership.

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

Sparrow health system has the right to elect members of the sparrow carson hospital board. The president of the medical staff, which is a member of the governing body, is elected by the medical staff of sparrow carson hospital.

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

Sparrow health system has the right to elect, replace, and remove directors of sparrow carson hospital board. Sparrow health system also has the authority to approve decisions of the sparrow carson hospital board when it is deemed necessary.

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

Copies of the 2020 form 990 are reviewed by management. Once management completed its review of form 990 copies were provided at the fall 2021 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 involved the following: utilizing the compensation committee, using independent consultants, reviewing other similar organizations' 990s, using compensation surveys, and final approval by the shs 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 shs board of directors, as well as finalizing the salary package with a written employment contract.

Form 990, Page 6, Part VI, Line 19

The organization's governing documents, conflict of interest policy, and audited financial statements are available upon request.

Form 990, Part VII

Sparrow health system is an integrated non-profit organization and is the parent corporation of sparrow carson hospital and other related entities. Paula reichle is the vice president & chief financial officer of sparrow health system and thereby has ultimate responsibility for managing the financial operations of the system and therefore is the signature officer of the health system.

Filing and Contact Details

Filer

Filer Name
Sparrow Carson Hospital
EIN
38-1490180
Phone
9895843971
Address
406 E ELM STREET PO BOX 879, CARSON CITY, MI 48811

Signing Officer

Name
Paula Reichle
Title
Sr VP - CFO - Shs
Phone
9895843971
Signed
2021-11-05
Discuss with paid preparer
Yes

Organization Details

Principal Officer
Kira Carter-robertson
Formed
1938
Legal Domicile
Mi
Voting Board Members
13
Independent Board Members
7
Employees
368
Volunteers
35

Preparer

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

Additional Explanations

Form 990

All lines left blank are not applicable to the organization. Part iv, question 4 - the organization has memberships in various trade associations for lobbying activities on behalf of the applicable trade association industries, thus indirectly benefiting the organization. The percentage of dues allocated to this industry-wide lobbying activity is minor and is not considered by the organization as lobbying activities required for disclosure on schedule c, part ii.

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

Sparrow carson hospital (scch) is a 61-bed, acute care hospital located in central michigan. It is the oldest osteopathic hospital in michigan, founded in 1936 by emmett binkert, do. Since this time, scch has been committed to serving the residents in a four-county area. Scch currently operates a short-term, acute-care facility and several satellite clinics offering inpatient and outpatient healthcare services, physician services, and home health care, primarily to patients in the carson city, michigan area, including gratiot, montcalm, clinton, and ionia counties. Scch provides care to patients who meet certain criteria under its charity care policy without charge or at amounts less than established rates. Because scch does not pursue collection of amounts determined to qualify as charity care, they are not reported as revenue under arrangements with various governmental insurance programs. Scch provides significant care to the local indigent population for which reimbursement for services rendered is generally, less than the cost of providing such services as part of its obligation to the local community. Scch also provides services to indigent patients under the medicaid program at payment amounts less than the cost of the services provided. For the year ended december 31, 2020, scch provided over 2 million in uncompensated care. The estimated annual total local economic impact is 30,000,000.

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

Other program services include the operation of the physical rehabilitation center and the following sparrow medical group (smg) facilities including: smg carson general surgery,smg carson orthopedics, smg carson obgyn, smg ashley, smg carson, smg fowler, smg greenville, smg ithaca, smg pediatrics carson city, and smg stanton.

Financial Statement Notes

Schedule D, Page 2, Part V, Line 4

Sparrow carson hospital does not hold endowments. The endowments are held by sparrow foundation, carson foundation inc, and sparrow eaton hospital. Sparrow health system is the sole member of sparrow carson hospital, carson foundation inc, sparrow foundation, and sparrow eaton hospital. 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.

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IRS990/Desc0SPARROW CARSON HOSPITAL (SCCH) IS A 61-BED, ACUTE CARE HOSPITAL LOCATED IN CENTRAL MICHIGAN. IT IS THE OLDEST OSTEOPATHIC HOSPITAL IN MICHIGAN, FOUNDED IN 1936 BY EMMETT BINKERT, DO. SINCE THIS TIME, SCCH HAS BEEN COMMITTED TO SERVING THE RESIDENTS IN A FOUR-COUNTY AREA. SCCH CURRENTLY OPERATES A SHORT-TERM, ACUTE-CARE FACILITY AND SEVERAL SATELLITE CLINICS OFFERING INPATIENT AND OUTPATIENT HEALTHCARE SERVICES, PHYSICIAN SERVICES, AND HOME HEALTH CARE, PRIMARILY TO PATIENTS IN THE CARSON CITY, MICHIGAN AREA, INCLUDING GRATIOT, MONTCALM, CLINTON, AND IONIA COUNTIES. SCCH PROVIDES CARE TO PATIENTS WHO MEET CERTAIN CRITERIA UNDER ITS CHARITY CARE POLICY WITHOUT CHARGE OR AT AMOUNTS LESS THAN ESTABLISHED RATES. BECAUSE SCCH DOES NOT PURSUE COLLECTION OF AMOUNTS DETERMINED TO QUALIFY AS CHARITY CARE, THEY ARE NOT REPORTED AS REVENUE UNDER ARRANGEMENTS WITH VARIOUS GOVERNMENTAL INSURANCE PROGRAMS. SCCH PROVIDES SIGNIFICANT CARE TO THE LOCAL INDIGENT POPULATION FOR WHICH REIMBURSEMENT FOR SERVICES RENDERED IS GENERALLY, LESS THAN THE COST OF PROVIDING SUCH SERVICES AS PART OF ITS OBLIGATION TO THE LOCAL COMMUNITY. SCCH ALSO PROVIDES SERVICES TO INDIGENT PATIENTS UNDER THE MEDICAID PROGRAM AT PAYMENT AMOUNTS LESS THAN THE COST OF THE SERVICES PROVIDED. FOR THE YEAR ENDED DECEMBER 31, 2020, SCCH PROVIDED OVER 2 MILLION IN UNCOMPENSATED CARE. THE ESTIMATED ANNUAL TOTAL LOCAL ECONOMIC IMPACT IS 30,000,000.
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Document Assets

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Filings

Balance SheetOperations
YearAssetsLiabilitiesNet AssetsRevenueExpensesNet Income
2024Detailed filing. Detailed filing data is available for this year.$35.9$39.0$3.09$51.5$51.8$0.26
2023Detailed filing. Detailed filing data is available for this year.$32.0$35.3$3.28$22.3$25.0$2.69
2022Detailed filing. Detailed filing data is available for this year.$32.7$35.5$2.79$46.7$49.8$3.16
2021Detailed filing. Detailed filing data is available for this year.$34.0$31.7$2.26$46.1$48.9$2.82
2020Detailed filing. Detailed filing data is available for this year.$36.0$31.7$4.27$46.7$48.6$1.88
2019Detailed filing. Detailed filing data is available for this year.$36.2$30.9$5.27$44.7$50.9$6.18
2018Detailed filing. Detailed filing data is available for this year.$37.6$29.8$7.86$47.0$53.9$6.89
2017Detailed filing. Detailed filing data is available for this year.$53.6$26.6$27.0$49.4$60.0$10.7
2016Detailed filing. Detailed filing data is available for this year.$56.9$24.3$32.6$54.9$55.6$0.70
2015Summary only. Only limited summary data is available for this year.$54.0$20.9$33.1$57.4$56.0$1.34
2014Detailed filing. Detailed filing data is available for this year.$39.3$24.1$15.3$58.5$57.4$1.06
2013Detailed filing. Detailed filing data is available for this year.$43.1$27.1$15.9$63.1$68.5$5.44
2012Summary only. Only limited summary data is available for this year.$45.6$25.2$20.4$60.2$60.8$0.63
2011Facts available. Structured filing facts are available, but richer extracted sections are limited.$46.4$23.2$23.2$60.1
2010Facts available. Structured filing facts are available, but richer extracted sections are limited.$46.6$23.3$23.3$55.8