SPARROW HEALTH SYSTEM

SPARROW HEALTH SYSTEM (SHS), PART OF UNIVERSITY OF MICHIGAN HEALTH, IS A FULLY INTEGRATED HEALTHCARE SYSTEM HEADQUARTERED IN LANSING, MICH. SERVING A CORE EIGHT-COUNTY REGION IN MID-MICHIGAN. SHS INCLUDES SIX HOSPITALS ENCOMPASSING 845 LICENSED HOSPITAL BEDS, 36 HOSPICE BEDS, MORE THAN 150 AMBULATORY/OUTPATIENT LOCATIONS, HUNDREDS OF EMPLOYED PHYSICIANS, A HEALTH PLAN, AND A POST-ACUTE CARE NETWORK CONSISTING OF OUTREACH LABORATORY, HOMECARE, HOSPICE, PHARMACY, AND DME SERVICES. SHS ALSO OWNS AND OPERATES THE MICHIGAN ATHLETIC CLUB, THE LARGEST HOSPITAL-OWNED FITNESS CLUB IN THE UNITED STATES. SHS IS A MICHIGAN NON STOCK, NON PROFIT TAX-EXEMPT CORPORATION, AND IS THE PARENT CORPORATION OF THE FOLLOWING TAX-EXEMPT, 501(C)(3) ENTITIES: EDWARD W. SPARROW HOSPITAL ASSOCIATION (E. W. SPARROW HOSPITAL), SPARROW CARSON HOSPITAL, SPARROW CLINTON HOSPITAL, SPARROW EATON HOSPITAL, SPARROW IONIA 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. 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. ON APRIL 1, 2023, SPARROW HEALTH SYSTEM, THE REGENTS OF THE UNIVERSITY OF MICHIGAN, AND UM HEALTH CONSUMMATED THEIR AFFILIATION PURSUANT TO AN AFFILIATION AGREEMENT DATED DECEMBER 8, 2022. AS A RESULT OF THE TRANSACTION, UM HEALTH BECAME THE SOLE MEMBER OF SPARROW AND RECEIVED AN ASSIGNMENT OF SPARROW'S MEMBERSHIP INTEREST IN PHP HOLDINGS, LLC. PHP HOLDINGS IS THE SOLE MEMBER OF CERTAIN JOINT VENTURES, INCLUDING PHYSICIANS HEALTH PLAN, A PROVIDER-SPONSORED HEALTH PLAN. THE PARTNERSHIP, STRUCTURED AS A MEMBERSHIP SUBSTITUTION, BETWEEN UM HEALTH AND SPARROW HEALTH SYSTEM IS AIMED AT EXPANDING SERVICES TO MID-MICHIGAN RESIDENTS, PROVIDING INCREASED ACCESS TO THE HIGHEST LEVEL OF CARE, AND IMPROVING FACILITIES AND TECHNOLOGIES. SPARROW HEALTH WILL PLAY A KEY ROLE IN UM HEALTH ESTABLISHING A STATEWIDE SYSTEM OF CARE. THIS PARTNERSHIP IS A DEFINITIVE STEP FORWARD TO POSITION THE COMBINED ORGANIZATION AND TEAMS FOR CONTINUED GROWTH AND LONG-TERM SUCCESS. BY COMING TOGETHER, THE COMBINED ORGANIZATION IS CREATING A CLINICAL CARE NETWORK THAT BUILDS UPON THE STRENGTHS OF THE WORLD-CLASS UM HEALTH ACADEMIC MEDICAL CENTER AND SPARROW HEALTH'S SUCCESSFUL COMMUNITY-BASED HEALTH SYSTEM. JOINING UM HEALTH ENABLES SPARROW TO ACCELERATE THE EXPANSION OF SERVICES, BUILD GREATER BREADTH AND DEPTH OF CLINICAL EXPERTISE, AND SEAMLESSLY INTEGRATE LEADING-EDGE TECHNOLOGY AND OTHER UPDATES INTO FACILITIES.