Physicians Health Network

“Sparrow health system (sparrow) is the parent and sole member of physician health network and has 100% ownership.”

“The members of the board of directors of phn are ratified by the board of directors of sparrow health system.”

“The members of the board of directors of phn are ratified by the board of directors of sparrow health system. The decisions of the phn board of directors may be subject to the approval of the board of directors of sparrow health system.”

“Copies of the 2019 form 990 are reviewed by management. Once management completed its review of the form 990 copies were provided at the fall 2020 board meeting for all board members to review and comment on.”

“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).”

“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.”

“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.”

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

“All lines left blank are not applicable to the organization.”

“Physician health network (phn) is a non-profit health delivery network (hdn). In conjunction with its sister corporation physician health plan (php) healthcare services are delivered to its members using a primary care concept in an hdn structure. Php is a licensed health maintenance organizations (hmo) and 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. Phn and php are committed to development and delivery of quality managed care products at a reasonable cost for its members. Physician health network and physician health plan (php) are wholly owned by sparrow health system. Php is primarily a commercial hmo and also operates three subsidiaries, php insurance company (phpic), a commercial insurance company, php medicare (phpma), a michigan medicare plan, and php service company a third party administrator. All staffing functions and reporting are accomplished through the use of the same staff as php. Unless specifically noted, all references to php apply to php, phpic, tpa and phpma. Phps service area includes the michigan counties of ingham, eaton, clinton, shiawassee, montcalm, gratiot, ionia, jackson, hillsdale and portions of isabella, saginaw, washtenaw, and lenawee. Php ic offers products across michigan. As of december 31, 2019, there were approximately 33,000 enrollees in phps commercial hmo, 15,700 in tpa, 3,600 in php-ic, and 0 enrollees in phpma. Php contracts directly with physicians health network (phn), a wholly owned subsidiary of shs. The php network is approximately 848 primary care physicians, 1,368 specialty care physicians, 697 allied health professionals, 1,029 behavioral health providers and 509 organizational providers that include 34 hospitals. Php contracts with various hdns who provide healthcare services to members. Phps commitment is to develop and deliver quality managed care products at reasonable costs for its members. Phps 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 php to arrange for healthcare to patients covered by the state of michigans 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. Php members may also receive care for services from a nonparticipating provider if such referral is recommended by an hdn participating physician and the service required for treatment, as determined by hdn, is not available within the hdns network. Php offers a variety of healthcare programs, or products to groups and individuals. Php offers choices that provide coverage within the network of contracted hdn providers, limited coverage outside of the php network, various levels of deductibles, co-payments, and coverage limits, all of which are designed to be responsive to customer needs. 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. Hedis measures the health plan effectiveness data and information set (hedis) is a group of nationally recognized measures of health plans 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 screening, - use of beta-blockers after heart attacks, - child and adolescent immunizations, - cholesterol management, - controlling high blood pressure, - smoking cessation, - prenatal and postpartum care, and -”

“Dividend to stockholder -25,300,000”