SCHEDULE O
(Form 990 or 990-EZ)

Department of the Treasury
Internal Revenue Service
Supplemental Information to Form 990 or 990-EZ

Complete to provide information for responses to specific questions on
Form 990 or 990-EZ or to provide any additional information.
MediumBullet Attach to Form 990 or 990-EZ.
MediumBullet Information about Schedule O (Form 990 or 990-EZ) and its instructions is at
www.irs.gov/form990.
OMB No. 1545-0047
2016
Open to Public
Inspection
Name of the organization
SPARROW HEALTH SYSTEM
 
Employer identification number

38-2542859
Return Reference Explanation
FORM 990 ALL LINES LEFT BLANK ARE NOT APPLICABLE TO THE ORGANIZATION. PART IV, QUESTION 4 - THE ORGANIZATION DOES NOT ENGAGE IN DIRECT LOBBYING ACTIVITIES. THE ORGANIZATION DOES HAVE MEMBERSHIPS IN VARIOUS TRADE ASSOCIATIONS THAT USE A PORTION OF THE DUES PAID TO THE 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 CLINIC CARE NETWORK, A NON-OWNERSHIP COLLABORATIVE ARRANGEMENT. SHS IS A MICHIGAN NON STOCK, NONPROFIT TAX-EXEMPT CORPORATION, AND IS THE PARENT CORPORATION OF THE FOLLOWING TAX-EXEMPT, 501(C)(3) ENTITIES: EDWARD W. SPARROW HOSPITAL ASSOCIATION (SPARROW HOSPITAL), SPARROW CLINTON (CLINTON MEMORIAL HOSPITAL), SPARROW IONIA (IONIA COUNTY MEMORIAL HOSPITAL), SPARROW CARSON (CARSON CITY HOSPITAL), SPARROW SPECIALTY HOSPITAL, SPARROW COMMUNITY CARE, AND SPARROW FOUNDATION. SPARROW FOUNDATION SERVES AS THE FUNDRAISING ARM OF SHS. EACH OF THESE ENTITIES FILE THEIR OWN 990 RETURN. SHS IS ALSO THE PARENT CORPORATION OF PHYSICIANS HEALTH PLAN (PHP), A MICHIGAN NONPROFIT, TAX-EXEMPT HEALTH MAINTENANCE ORGANIZATION, AS WELL AS PHYSICIANS HEALTH NETWORK (PHN), A MICHIGAN NONPROFIT, TAX-EXEMPT CORPORATION. BOTH OF THESE COMPANIES ARE TAX-EXEMPT UNDER IRS CODE 501(C) (4). BOTH OF THESE ENTITIES FILE THEIR OWN 990 RETURN. LASTLY, SHS IS THE PARENT CORPORATION OF SPARROW DEVELOPMENT, INC. (SDI), A MICHIGAN STOCK, FOR-PROFIT CORPORATION. SDI INCLUDES, AS MENTIONED ABOVE, THE MICHIGAN ATHLETIC CLUB (MAC), AS WELL AS THE MAC RESTAURANT, AND ST. LAWRENCE OR MANAGEMENT COMPANY, LLC.
FORM 990, PAGE 6, PART VI, LINE 7A THE PRESIDENT OF THE EDWARD W. SPARROW HOSPITAL MEDICAL STAFF IS A BOARD MEMBER OF THE SPARROW HEALTH SYSTEM BOARD. THE EDWARD W. SPARROW HOSPITAL MEDICAL STAFF PRESIDENT IS ELECTED BY THE MEDICAL STAFF OF THE HOSPITAL.
FORM 990, PAGE 6, PART VI, LINE 11B COPIES OF THE 2016 FORM 990 ARE REVIEWED BY MANAGEMENT. THE FORM 990 COPIES WERE PROVIDED AT THE SEPTEMBER 2017 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 OF THE ORGANIZATION INVOLVED THE FOLLOWING: UTILIZING THE COMPENSATION COMMITTEE, INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE 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, INDEPENDENT CONSULTANTS, REVIEWING OTHER SIMILAR ORGANIZATIONS' 990S, COMPENSATION SURVEYS, AND FINAL APPROVAL BY THE 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 AUDITED FINANCIAL STATEMENTS ARE ON SEVERAL INTERNET WEBSITES, INCLUDING THE EMMA.MSRB AND MHA WEBSITES, AS WELL AS AVAILABLE UPON REQUEST. THE GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE UPON REQUEST.
FORM 990, PART VII PART VII, SECTION A, COLUMN (E) REPORTABLE COMPENSATION FROM RELATED ORGANIZATIONS - PAYMENTS TO GREG BROGAN FOR BROKER'S SALES COMMISSIONS FOR PHP INSURANCE COMPANY (633,592).
FORM 990, PART XI, LINE 9 AFFILIATE NET INCOME 62,950,721
For Paperwork Reduction Act Notice, see the Instructions for Form 990 or 990-EZ.
Cat. No. 51056K
Schedule O (Form 990 or 990-EZ) 2016


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