Mclaren Flint

“Philip incarnati and donald kooy have a business relationship.”

“The sole member of this organization is mclaren health care corporation.”

“The member shall have the exclusive right to elect or appoint the directors of the corporation.”

“Decisions by the governing body are subject to the powers of the member.”

“The form 990 data is prepared internally and submitted to our auditing firm for return preparation. Once the returns have been completed, the forms are reviewed by the corporate director of budget, the corporate senior vice president and cfo of mclaren health care corporation (mhcc). Copies of the returns are made available to the mhcc board members, who serve as the overall governing board. Returns are available for all corporations of which mhcc is the sole member as well as other related entities of those corporations for review rather than having the local boards review the returns. The board of mhcc is the ultimate accountable organization for the system; as such it is the overall governing board of our system whose responsibilities includes but are not limited to: approving all subsidiary board members, financial budgets, and issuance of debt.”

“The corporate compliance department, in accordance with the mclaren health care (mhc) board conflict of interest policy, annually distributes the conflict of interest disclosure survey to all mhc corporate and subsidiary organization board members, executives and other leadership employees. The corporate compliance department, through the governance committee, compiles and analyzes survey data by organization, investigates, and reviews potential conflicts with the organization's ceo and board chair, and when necessary, recommends actions to be taken to resolve identified conflicts. A complete report of all corporate and subsidiary board member and executive disclosures, conflicts identified and actions taken is reviewed by the mhc governance committee and each subsidiary ceo and board chair receives a report specific to their organization's board members and executives. Conflicts are disclosed to the full board and board committees so appropriate actions can be taken. Actions may include prohibiting a board member from participating in deliberations involving transactions with a company with which they conduct financial transactions; board members failing to complete a disclosure survey or intentionally failing to report a known conflict of interest are asked to resign.”

“The compensation of the ceo is determined by the compensation committee of mclaren health care corporation based upon the performance of the ceo. The compensation of the ceo is within the salary ranges determined by the compensation committee of mclaren health care corporation. The process of the compensation committee is as follows: the compensation committee is appointed by the board of directors to review the performance and recommend the total compensation package of the corporation's ceo to the board. Further the committee establishes the salary ranges and prerequisites of the corporation's other most highly compensated officers (mhc vice-presidents and mhc hospital/subsidiary ceo's) to the board. The members of the committee must meet the independence requirements of the applicable provisions of section 4958 of the internal revenue code of 1986, as amended and final treasury regulations section 53.4956-6(c)(1)(iii). The committee retains the services of an independent firm with significant qualifications and experience to conduct a review of the corporation's executive compensation program. The retained firm utilizes appropriate compensation comparability data. The retained firm conducts analysis of the competitiveness of these programs and expresses an opinion as to the reasonableness of these compensation programs. All data utilized by the committee, deliberations of the committee, and final compensation decisions by the committee are documented in formal reports and minutes. The corporate compensation committee works under and annually reviews the mclaren health care corporation compensation committee charter and mclaren health care corporation compensation philosophy. The most recent time this process was undertaken was in 2013.”

“Documents are available upon request.”

“Temporary labor: program service expenses 3,614,216. Management and general expenses 36,581. Fundraising expenses 0. Total expenses 3,650,797. Purchased services: program service expenses 10,095,532. Management and general expenses 3,784,244. Fundraising expenses 0. Total expenses 13,879,776. Physician fees: program service expenses 4,219,264. Management and general expenses 2,839,794. Fundraising expenses 0. Total expenses 7,059,058. Consultants: program service expenses 9,741. Management and general expenses 459,058. Fundraising expenses 0. Total expenses 468,799. Janitorial/cleaning: program service expenses 609,603. Management and general expenses 26,065. Fundraising expenses 0. Total expenses 635,668. Contract labor: program service expenses 1,368,885. Management and general expenses 1,637,615. Fundraising expenses 0. Total expenses 3,006,500. Laboratory services: program service expenses 1,389,330. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,389,330. Security: program service expenses 1,105,463. Management and general expenses 6,907. Fundraising expenses 0. Total expenses 1,112,370. Transcription: program service expenses 1,379,938. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,379,938. Lawn services: program service expenses 262,140. Management and general expenses 616,471. Fundraising expenses 0. Total expenses 878,611. Billing: program service expenses 578,496. Management and general expenses 0. Fundraising expenses 0. Total expenses 578,496. Other: program service expenses 5,693,081. Management and general expenses 18,585,139. Fundraising expenses 0. Total expenses 24,278,220.”

“Minimum pension liability adjustment -33,937,095. Change in restricted funds -1,009,324. Unrealized gain/loss on investment in sub -398,493.”

“This process has not changed since prior year.”