TY 2018 Form 990 Schedule R

efile Public Visual Render ObjectId: 202040719349301214 - Submission: 2020-03-11 TIN: 61-1740292

SCHEDULE R
(Form 990)

Department of the Treasury
Internal Revenue Service

Related Organizations and Unrelated Partnerships

Complete if the organization answered "Yes" on Form 990, Part IV, line 33, 34, 35b, 36, or 37.
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Attach to Form 990.
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Go to www.irs.gov/Form990 for instructions and the latest information.

OMB No. 1545-0047

2018

Open to Public Inspection

Name of the organization

Spectrum Health System Group Return

Employer identification number

61-1740292

Part I

Identification of Disregarded Entities Complete if the organization answered "Yes" on Form 990, Part IV, line 33.

(a) Name, address, and EIN (if applicable) of disregarded entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Total income	(e) End-of-year assets	(f) Direct controlling entity

Part II

Identification of Related Tax-Exempt Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related tax-exempt organizations during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	(g) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Exempt Code section	(e) Public charity status (if section 501(c)(3))	(f) Direct controlling entity	Yes	No
(1)SPECTRUM HEALTH SYSTEM 100 MICHIGAN ST NE MC 498 GRAND RAPIDS,MI49503 38-3382353	MANAGEMENT	MI	501(c)(3)	Type III-FI	na		No
(2)PRIORITY HEALTH 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 38-2715520	HMO	MI	501(c)(4)		SPECTRUM HEALTH SYSTEM		No
(3)TRINITY HEALTH PLANS 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 38-2663747	HMO MGMT	MI	501(c)(4)		PRIORITY HEALTH		No
(4)PRIORITY HEALTH CHOICE INC 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 32-0016523	HMO (MEDICAID)	MI	501(c)(3)	10	PRIORITY HEALTH		No
(5)KENT COMMUNITY HEALTH FOUNDATION 750 FULLER AVE NE GRAND RAPIDS,MI49503 38-3607110	PHILANTHROPY	MI	501(c)(3)	Type III-O	SPECTRUM HEALTH HOSPITALS	Yes
(6)SPECTRUM HEALTH - MSU ALLIANCE CORPORATION 100 MICHIGAN ST NE MC 498 GRAND RAPIDS,MI49503 76-0845329	RESEARCH	MI	501(c)(3)	Type I	SPECTRUM HEALTH HOSPITALS	Yes
(7)LAKESHORE AREA RADIATION ONCOLOGY CENTER 12642 RILEY ST HOLLAND,MI494249202 38-3067954	RADIATION SERVICES	MI	501(c)(3)	3	SPECTRUM HEALTH HOSPITALS	Yes
(8)LAKELAND REGIONAL HEALTH SYSTEM INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-2609624	PROVIDE A COMPREHENSIVE SYSTEM OF HEALTH CARE TO CITIZENS OF THE COMMUNITY	MI	501(c)(3)	Type III-FI	SPECTRUM HEALTH SYSTEM		No
(9)LAKELAND HOSPITALS AT NILES AND ST JOSEPH INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-2156872	PROVIDE A COMPREHENSIVE SYSTEM OF HEALTH CARE TO CITIZENS FOR THE COMMUNITY	MI	501(c)(3)	3	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(10)LAKELAND SPECIALTY HOSPITAL AT BERRIEN CENTER 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-3452303	LONGTERM HEALTHCARE/HEALING SERVICES	MI	501(c)(3)	3	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(11)LAKELAND HEALTH FOUNDATION BENTON HARBORST JOSEPH 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-2539929	PROMOTE AND ASSIST IN PROVIDING HEALTH CARE	MI	501(c)(3)	7	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(12)LAKELAND HEALTH FOUNDATION NILES 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-3130558	PROMOTE/ASSIST IN PROVIDING HEALTH CARE SERVICES IN SOUTHWESTERN MICHIGAN	MI	501(c)(3)	7	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(13)MERCY MEMORIAL HEALTH SERVICES INC 4368 CLEVELAND AVENUE STEVENSVILLE,MI49127 38-2748035	PROVIDE HOMECARE AND LONG-TERM HEALTHCARE TO PATIENTS IN SOUTHWEST MICHIGAN	MI	501(c)(3)	10	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(14)LAKELAND COMMUNITY HOSPITAL - WATERVLIET 400 MEDICAL PARK DRIVE WATERVLIET,MI49098 38-1368745	TO PROVIDE GENERAL HEALTH OF THE COMMUNITY THROUGH EDUCATION AND HEALTHCARE	MI	501(c)(3)	3	LAKELAND REGIONAL HEALTH SYSTEM INC		No
(15)HOSPICE AT HOME INC 4025 HEALTH PARK LANE ST JOSEPH,MI49085 38-2416086	TO PROVIDE HOSPICE AND PALLIATIVE CARE TO THE TERMINALLY ILL	MI	501(c)(3)	7	LAKELAND REGIONAL HEALTH SYSTEM INC		No

For Paperwork Reduction Act Notice, see the Instructions for Form 990.

Cat. No. 50135Y

Schedule R (Form 990) 2018

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Schedule R (Form 990) 2018

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Part III

Identification of Related Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a partnership during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Part IV

Identification of Related Organizations Taxable as a Corporation or Trust Complete if the organization answered "Yes" on Form 990, Part IV, line 34 because it had one or more related organizations treated as a corporation or trust during the tax year.

(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets	(h) Percentage ownership	(i) Section 512(b)(13) controlled entity?
(a) Name, address, and EIN of related organization	(b) Primary activity	(c) Legal domicile (state or foreign country)	(d) Direct controlling entity	(e) Type of entity (C corp, S corp, or trust)	(f) Share of total income	(g) Share of end-of-year assets		Yes	No
(1) HELEN DEVOS WOMEN'S AND CHILDREN'S HEALTH PAVILION ASSOCIATION 330 BARCLAY NE GRAND RAPIDS,MI49503 38-3264184	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	443,213	410,961	86.96 %	Yes
(2) THE FRED AND LENA MEIJER HEART CENTER CONDOMINIUM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS,MI49503 83-0464302	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	2,025,686	1,395,174	98.81 %	Yes
(3) CAMPUS TOWN CENTRE CONDO ASSC 4868 LAKE MICHIGAN DRIVE ALLENDALE,MI49401 38-2910067	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	23,065	0	90 %	Yes
(4) PRIORITY HEALTH INSURANCE COMPANY 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 20-1529553	INSURANCE	MI	NA	C Corporation					No
(5) PRIORITY HEALTH MANAGED BENEFITS 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 38-3085182	THIRD PARTY ADMINISTRATOR	MI	NA	C Corporation					No
(6) WEST MICHIGAN HEART 1840 WEALTHY STREET SE GRAND RAPIDS,MI49506 38-2125186	PHYSICIANS	MI	NA	C Corporation					No
(7) SPECTRUM HEALTH PHYSICIAN ALLIANCE 100 MICHIGAN ST NE GRAND RAPIDS,MI49503 37-1655728	PHYSICIANS	MI	NA	C Corporation					No
(8) 35 MICHIGAN STREET CONDOMINIUM ASSOCIATION 35 MICHIGAN ST NE GRAND RAPIDS,MI49503 27-2193084	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	1,008,480	207,581	100 %	Yes
(9) LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION 145 MICHIGAN ST NE GRAND RAPIDS,MI49503 16-1734150	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	2,472,868	1,177,473	84.36 %	Yes
(10) MUSCULOSKELETAL CENTER CONDOMINIUM ASSOCIATION 230 MICHIGAN NE GRAND RAPIDS,MI49503 38-3180086	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	174,044	153,090	89.54 %	Yes
(11) 25 MICHIGAN STREET CONDOMINUIM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS,MI49503 16-1734157	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	667,611	410,436	82.51 %	Yes
(12) THE MICHIGAN STREET PARKING CONDOMINUIM ASSOCIATION 100 MICHIGAN ST NE GRAND RAPIDS,MI49503 16-1734145	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	392,117	972,229	69.13 %	Yes
(13) PENNOCK VENTURES INC 1009 WEST GREEN STREET HASTINGS,MI49058 38-2712819	HEALTH CARE	MI	Pennock Hospital	C Corporation	868,394	907,595	100 %	Yes
(14) PENNOCK PHARMACY INC 1009 WEST GREEN STREET HASTINGS,MI49058 38-2750680	HEALTH CARE	MI	Pennock Hospital	C Corporation	0	0	100 %	Yes
(15) MEMORIAL MEDICAL CENTER MEDICAL OFFICE BUILDING CONDOMINIUM ASSOCIATION 5 N ATKINSON DRIVE LUDINGTON,MI49431 81-3322057	MGMT	MI	MEMORIAL MEDICAL CENTER OF WEST MICHIGAN	C Corporation	147,742	47,370	95.29 %	Yes
(16) LAKELAND HEALTH ENTERPRISES INC 31 NORTH ST JOSEPH AVENUE NILES,MI49120 38-2669798	ACCOUNTING AND BILLING	MI	LAKELAND REGIONAL HEALTH SYSTEM INC	C Corporation					No
(17) PHARMACY SHOPPE INC DBA LAKELAND PHARMACY SHOPPE INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 38-2929090	PHARMACEUTICALS	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(18) LAKELAND MEDICAL PRACTICES 1234 NAPIER AVENUE ST JOSEPH,MI49085 27-0381199	MEDICAL ADMINISTRATIVE SERVICES	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(19) SOUTHWESTERN MEDICAL CLINIC PHYSICIANS INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 27-2589359	PHYSICIAN OFFICE	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(20) FOUR FLAGS PROPERTIES INC 122 GRANT STREET NILES,MI49120 36-4501639	PROPERTY MANAGEMENT/RENTAL	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(21) LAKELAND HEALTH VENTURES INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 27-2313790	HOLDING COMPANY	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(22) LAKELAND PHYSICIAN CARE NETWORK 1234 NAPIER AVENUE ST JOSEPH,MI49085 20-8513031	MEDICAL SERVICES	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(23) LAKELAND PERSONAL CARE SERVICES INC 1234 NAPIER AVENUE ST JOSEPH,MI49085 27-2990797	HEALTHCARE SERVICES	MI	LAKELAND HEALTH ENTERPRISES INC	C Corporation					No
(24) PENNOCK PROFESSIONAL BUILDING CONDOMINIUM ASSOCIATION 1009 W GREEN ST HASTINGS,MI49058 38-4056359	MGMT	MI	PENNOCK HOSPITAL	C Corporation	159,286	26,960	89.29 %	Yes
(25) 1697 MICHIGAN STREET PROPERTY 100 MICHIGAN STREET NE GRAND RAPIDS,MI49503 83-1721239	MGMT	MI	SPECTRUM HEALTH HOSPITALS	C Corporation	0	0	100 %	Yes
(26) PHMB CAMADS TRUST 1231 EAST BELTLINE NE GRAND RAPIDS,MI49525 84-6496888	TRUST	MI	PRIORITY HEALTH MANAGED BENEFITS INC	Trust					No

Schedule R (Form 990) 2018

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Schedule R (Form 990) 2018

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Part V

Transactions With Related Organizations Complete if the organization answered "Yes" on Form 990, Part IV, line 34, 35b, or 36.

Note. Complete line 1 if any entity is listed in Parts II, III, or IV of this schedule.

Yes

1 During the tax year, did the orgranization engage in any of the following transactions with one or more related organizations listed in Parts II-IV?

a Receipt of (i) interest, (ii) annuities, (iii) royalties, or (iv) rent from a controlled entity .....................

b Gift, grant, or capital contribution to related organization(s) ............................

Yes

c Gift, grant, or capital contribution from related organization(s) ............................

Yes

d Loans or loan guarantees to or for related organization(s) ............................

e Loans or loan guarantees by related organization(s) ............................

f Dividends from related organization(s) ............................

g Sale of assets to related organization(s) ............................

h Purchase of assets from related organization(s) ............................

Yes

i Exchange of assets with related organization(s) ............................

j Lease of facilities, equipment, or other assets to related organization(s) .......................

Yes

k Lease of facilities, equipment, or other assets from related organization(s) ......................

Yes

l Performance of services or membership or fundraising solicitations for related organization(s) .....................

Yes

m Performance of services or membership or fundraising solicitations by related organization(s) .................

Yes

n Sharing of facilities, equipment, mailing lists, or other assets with related organization(s) ...................

o Sharing of paid employees with related organization(s) ............................

p Reimbursement paid to related organization(s) for expenses ............................

Yes

q Reimbursement paid by related organization(s) for expenses ............................

Yes

r Other transfer of cash or property to related organization(s) ............................

Yes

s Other transfer of cash or property from related organization(s) ............................

Yes

If the answer to any of the above is "Yes," see the instructions for information on who must complete this line, including covered relationships and transaction thresholds.

(a) Name of related organization	(b) Transaction type (a-s)	(c) Amount involved	(d) Method of determining amount involved
(1) Priority Health	L	709,172,440	CASH, GAAP, OR FMV
(2) Priority Health	M	201,258,529	CASH, GAAP, OR FMV
(3) Spectrum Health Worth Services	L	2,775,060	CASH, GAAP, OR FMV
(4) Spectrum Health Continuing Care Campus	L	2,726,592	CASH, GAAP, OR FMV
(5) Spectrum Health Kelsey	L	2,495,041	CASH, GAAP, OR FMV
(6) Visiting Nurse Services of Western Michigan	L	1,887,756	CASH, GAAP, OR FMV
(7) Lemmen-Holton Cancer Pavilion Condominium Association	Q	2,945,312	CASH, GAAP, OR FMV
(8) The Fred and Lena Meijer Heart Center Condominium	Q	2,096,304	CASH, GAAP, OR FMV
(9) 35 Michigan Condominium Association	Q	1,072,633	CASH, GAAP, OR FMV
(10) 25 Michigan Condominium Association	Q	729,895	CASH, GAAP, OR FMV
(11) Michigan Street Parking Condominium Association	Q	577,518	CASH, GAAP, OR FMV
(12) Helen DeVos Women and Children's Health Pavilion Association	Q	516,715	CASH, GAAP, OR FMV
(13) Musculoskeletal Center Condominium Association	Q	201,821	CASH, GAAP, OR FMV
(14) Pennock Professional Building Condominium Association	Q	172,359	CASH, GAAP, OR FMV
(15) Memorial Medical center medical Office Building Condominium Association	Q	168,138	CASH, GAAP, OR FMV

Schedule R (Form 990) 2018

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Schedule R (Form 990) 2018

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Part VI

Unrelated Organizations Taxable as a Partnership Complete if the organization answered "Yes" on Form 990, Part IV, line 37.

Provide the following information for each entity taxed as a partnership through which the organization conducted more than five percent of its activities (measured by total assets or gross revenue) that was not a related organization. See instructions regarding exclusion for certain investment partnerships.

(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	(e) Are all partners section 501(c)(3) organizations?		(f) Share of total income	(g) Share of end-of-year assets	(h) Disproprtionate allocations?		(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	(j) General or managing partner?
(a) Name, address, and EIN of entity	(b) Primary activity	(c) Legal domicile (state or foreign country)	Yes	No	(f) Share of total income	(g) Share of end-of-year assets	Yes	No	(i) Code V-UBI amount in box 20 of Schedule K-1 (Form 1065)	Yes	No

Schedule R (Form 990) 2018

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Schedule R (Form 990) 2018

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Part VII

Supplemental Information

Provide additional information for responses to questions on Schedule R (see instructions).

Return Reference	Explanation
Schedule R, Part IV IDENTIFICATION OF RELATED ORGANIZATIONS	35 MICHIGAN STREET CONDOMINIUM ASSOCIATION AND LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION ARE INCLUDED ON SCHEDULE R, PART IV AS THE VOTING POWER IS CONTROLLING UNDER THE CONSTRUCTIVE OWNERSHIP RULES OF UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. SCHEDULE R, PART IV, COLUMNS (F) SHARE OF TOTAL INCOME AND (G) SHARE OF END-OF-YEAR ASSETS ARE REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER. SCHEDULE R, PART IV, COLUMN (H) IS REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER.
Schedule R, Part V, Line 2 TRANSACTIONS WITH RELATED ORGANIZATIONS	THE AMOUNTS LISTED IN PART V, LINE 2, TRANSACTION TYPE L & M FOR PRIORITY HEALTH REPRESENT THE AGGREGATE AMOUNT OF TRANSACTIONS AMONG ALL ORGANIZATIONS INCLUDED IN THE GROUP RETURN.

Return Reference

Explanation

Schedule R, Part IV IDENTIFICATION OF RELATED ORGANIZATIONS

35 MICHIGAN STREET CONDOMINIUM ASSOCIATION AND LEMMEN-HOLTON CANCER PAVILION CONDOMINIUM ASSOCIATION ARE INCLUDED ON SCHEDULE R, PART IV AS THE VOTING POWER IS CONTROLLING UNDER THE CONSTRUCTIVE OWNERSHIP RULES OF UNDER SECTION 318 OF THE INTERNAL REVENUE CODE. SCHEDULE R, PART IV, COLUMNS (F) SHARE OF TOTAL INCOME AND (G) SHARE OF END-OF-YEAR ASSETS ARE REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER. SCHEDULE R, PART IV, COLUMN (H) IS REPORTED BASED ON THE GREATER OF OWNERSHIP OR VOTING POWER.

Schedule R, Part V, Line 2 TRANSACTIONS WITH RELATED ORGANIZATIONS

THE AMOUNTS LISTED IN PART V, LINE 2, TRANSACTION TYPE L & M FOR PRIORITY HEALTH REPRESENT THE AGGREGATE AMOUNT OF TRANSACTIONS AMONG ALL ORGANIZATIONS INCLUDED IN THE GROUP RETURN.

Schedule R (Form 990) 2018

Additional Data

Software ID:	18007697
Software Version:	2018v3.1