Michigan Health Corporation

“The regents of the university of michigan, a michigan constitutional corporation, is the sole member.”

“The regents of the university of michigan, as sole member, elects officers annually.”

“The regents of the university of michigan, as sole member, has the right to approve 1) amendments to the articles of incorporation, 2) the business plans, 3) the annual capital and operating budgets, 4) mergers, consolidations or sale of the corporation's assets, and 5) election of the corporation's officers.”

“The university of michigan tax director reviewed aspects of the form before presenting it to the board members. The tax director serves as an advisor, attends board meetings, and regularly provides updates to the board on tax issues as they arise. Updates include background material, technical points, governance and policy issues, and other areas of concern. A final copy was provided to the board of directors prior to signature and filing with the internal revenue service.”

“Each director, principal officer and member of a committee with board delegated powers must annually sign a statement which affirms that such person a) has received a copy of the conflicts of interest policy; b) has read and understands the policy; c) has agreed to comply with the policy; and d) understands that michigan health corporation is a charitable organization and that in order to maintain its federal tax exemption it must engage primarily in activities which accomplish one or more of its tax-exempt purposes. To ensure that michigan health corporation operates in a manner consistent with its charitable purposes and that those transactions or arrangements entered into do not benefit the private interest of an officer or director of mhc, periodic reviews are conducted. The reviews include the following subjects: a) whether compensation arrangements and benefits are reasonable and are the result of arm's-length bargaining; b) whether acquisitions of physician practices and other provider services result in inurement or impermissible private benefits; c) whether partnership and joint venture arrangements conform to written policies, are properly recorded, reflect reasonable payment for goods and services, further the mhc's charitable purposes, and do not result in inurement or impermissible private benefits; and d) whether agreements to provide health care and agreements with other health care providers, employees, and third party payors further the mhc's charitable purposes and do not result in inurement or impermissible private benefits.”

“The university of michigan, the related entity that compensates the individuals in part vii, is a governmental entity that is excluded from intermediate sanctions under irc 4958; however, it relies on the criteria to establish the rebuttable presumption in determining the compensation arrangements.”

“The university of michigan, the related entity that compensates the individuals in part vii, is a governmental entity that is excluded from intermediate sanctions under irc 4958; however, it relies on the criteria to establish the rebuttable presumption in determining the compensation arrangements.”

“The governing documents, conflict of interest policy and financial statements are available to the public upon request. Form 990, part iv, line 12a - audited financial statements michigan health corporation is included in the consolidated financial statements of the regents of the university of michigan and has been since it has been in existence. Form 990, part viii, line 11 - miscellaneous revenue mhc is filing its share of revenues from joint ventures and other partnerships using information provided from the respective schedules k-1. Additional information: the purpose of mhc is to invest in various ventures that will improve the delivery of healthcare services throughout the community, in which case, it serves as a parent organization of a consolidated group of healthcare entities. For instance, mhc is a member in three radiation oncology entities which are charitable entities under irc 501(c)(3), as well as a dialysis venture which is reported on schedule r. Mhc established an accountable care organization (aco) as provided under the patient protection and affordable care act. Please note that mhc and its affiliates are included in the annual consolidated financial report for the regents of the university of michigan which is issued by an independent accounting firm.”

“Income and contribution activity with other 687,173”