2025-11-11T13:44:48-06:00 2024-12-31 991856619 GRANT THORNTON ADVISORS LLC 53 STATE STREET SUITE 1600 BOSTON MA 02109 990 2024-01-01 362179768 VERSITI ILLINOIS INC VERS 6308927055 1200 N HIGHLAND AVENUE AURORA IL 60506 CHRIS MISKEL PRESIDENT & CEO 4149335000 2025-11-11 1 0 ERIN COUTURE P01390592 6177237900 2024 2025-03-06 01:10:19Z CHRIS MISKEL 638 N 18TH STREET MILWAUKEE WI 532332121 90295388 0 X WWW.VERSITI.ORG X 1943 IL (SEE SCHEDULE O) 18 17 513 89 0 0 20827 18002 58846182 63758288 3929231 1200057 177164 213069 62973404 65189416 65867 90229 0 0 25343553 27335733 0 0 0 31116446 33273265 56525866 60699227 6447538 4490189 75130707 80358322 6800405 6297546 68330302 74060776 X VERSITI ILLINOIS, INC. (VERSITI) IS A BLOOD HEALTH INNOVATOR WHICH ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. 0 0 51320144 90229 63758288 VERSITI ILLINOIS RECRUITS VOLUNTEER BLOOD DONORS AND COLLECTS, PROCESSES, AND DISTRIBUTES BLOOD PRODUCTS AS PART OF ITS MISSION TO PROVIDE A SAFE AND RELIABLE BLOOD SUPPLY FOR HOSPITALS AND HEALTHCARE SYSTEMS ACROSS ILLINOIS. VERSITI'S COMPREHENSIVE BLOOD INVENTORY INCLUDES RED BLOOD CELLS, PLATELETS, PLASMA, AND SPECIALIZED PRODUCTS DESIGNED TO MEET PATIENT NEEDS. IN 2024, VERSITI ILLINOIS COLLECTED TOTAL RED BLOOD CELLS AND PLATELETS OF 142,921, SERVING 64 HOSPITALS. THE ORGANIZATION HOSTED 2,266 COMMUNITY BLOOD DRIVES, ENGAGING 55,745 VOLUNTEER DONORS WHO CONTRIBUTED TO VERSITI'S LIFESAVING MISSION. (CONTINUED IN SCHEDULE O) INNOVATION AND COMMUNITY PARTNERSHIPS: DURING 2024, VERSITI ILLINOIS PARTICIPATED IN THE WE GIVE BLOOD DRIVE PARTNERSHIP WITH ABBOTT AND THE BIG TEN CONFERENCE DURING THE 2024 FOOTBALL SEASON, ENCOURAGING BLOOD DONATIONS FROM UNIVERSITY SUPPORTERS THROUGHOUT ILLINOIS. COMMUNITY OUTREACH: AS A VITAL PARTNER IN PUBLIC HEALTH, VERSITI ILLINOIS ENGAGED COMMUNITIES THROUGH TARGETED OUTREACH INCLUDING THE ALPHA KAPPA SORORITY REGIONAL CONFERENCE AND BLOOD DRIVE, JUNETEENTH SUPPORT INITIATIVES, SICKLE CELL DISEASE ASSOCIATION OF ILLINOIS BIKE-A-THON, AND THE #KNOWSCD SICKLE CELL DISEASE AWARENESS CAMPAIGN. INFRASTRUCTURE AND OPERATIONS: VERSITI ILLINOIS OPERATES DONOR CENTERS AND MOBILE COLLECTION UNITS THROUGHOUT THE STATE TO BRING DONATION OPPORTUNITIES DIRECTLY TO COMMUNITIES. THROUGH DEDICATED VOLUNTEER DONORS AND STRATEGIC COMMUNITY PARTNERSHIPS, VERSITI ILLINOIS MAINTAINS A ROBUST BLOOD SUPPLY THAT ENABLES HOSPITALS TO PROVIDE CRITICAL CARE, EMERGENCY SERVICES, AND LIFESAVING TREATMENTS TO PATIENTS THROUGHOUT THE REGION. DIAGNOSTIC LABS: VERSITI SERVES PATIENTS, PHYSICIANS, AND HOSPITALS ACROSS THE STATE BY PROVIDING CLINICAL DIAGNOSTIC TESTING SERVICES, INCLUDING HEMATOLOGY, COAGULATION, IMMUNOHEMATOLOGY, INFECTIOUS DISEASE, MOLECULAR DIAGNOSTICS, FLOW CYTOMETRY, AND REFERENCE LABORATORY SERVICES. DURING 2024, VERSITI ILLINOIS CONDUCTED 23,497 DIAGNOSTIC TESTING SERVICES FOR HOSPITALS, PHYSICIAN OFFICES AND OTHER REFERENCE LABORATORIES. 51320144 1 0 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 0 0 513 1 0 0 0 0 0 0 0 0 0 0 1 0 X 18 17 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 IL X DAWN HENSE 4149335000 638 N 18TH ST MILWAUKEE WI 532332121 X CHRIS MISKEL PRESIDENT & CEO 9.00 46.00 X X 275842 1346754 57669 BART REUTER EVP & GENERAL COUNSEL 9.00 46.00 X 146473 715127 66046 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 9.00 46.00 X 138171 674594 53592 ANTHONY WATKINS EVP&CFO-THRU 3/24;BUS DEV-AS OF 3/24 9.00 46.00 X 127280 621431 29876 MICHAEL DEININGER MD EVP & CHIEF SCIENTIFIC OFFICER 1.00 54.00 X 0 670610 39231 BRADLEY PIETZ EVP & CHIEF LABORATORY OFFICER 9.00 46.00 X 102156 498759 65430 JAMES WEIDNER EVP & CHIEF HR OFFICER 9.00 46.00 X 97173 474429 56792 MATTHEW ANDERSON MD EVP & CHIEF MED. OFF. - AS OF 7/24 1.00 54.00 X 0 471868 65850 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 9.00 46.00 X 81918 399948 52622 DEREK TYUS EVP & CHIEF FINANCIAL OFF. - AS 3/24 9.00 46.00 X 76892 375412 48353 BARBARA BRYANT EVP & CHIEF MED. OFF. - THRU 8/24 1.00 54.00 X 0 447822 25848 GITESH DUBAL EVP & CHIEF MKTG. OFF. - THRU 4/24 9.00 46.00 X 69199 337861 23781 KEVIN HA HBC ASSOCIATE MEDICAL DIRECTOR 55.00 0.00 X 250686 0 53996 JESSICA DROUILLARD VP & CHIEF QUALITY OFFICER 9.00 46.00 X 46927 229110 18905 AMY SMITH DIRECTOR DONOR SERVICES 55.00 0.00 X 240685 0 47266 GRETCHEN JAMESON EVP & CHIEF MKTG. OFF. - AS OF 4/24 9.00 46.00 X 37470 182945 15013 JYOTHI PERLA MANAGER HRIS 55.00 0.00 X 140744 0 53263 SHELLEY WHITSEY-MITCHELL REGIONAL MGR DONOR SERVICES 55.00 0.00 X 139910 0 22987 JACK STEIN HBC ORACLE PROGRAMMER 55.00 0.00 X 115596 0 31975 FRED GEILFUSS CHAIR 1.00 5.00 X X 0 0 0 L ALAN WHALEY VICE CHAIR 1.00 4.00 X X 0 0 0 COREEN DICUS-JOHNSON JD SECRETARY 1.00 4.00 X X 0 0 0 RON MILLER TREASURER 1.00 4.00 X X 0 0 0 NICHOLAS BAUER BOARD MEMBER 1.00 4.00 X 0 0 0 DAVID GINSBURG MD BOARD MEMBER 1.00 4.00 X 0 0 0 CECELIA GORE BOARD MEMBER 1.00 4.00 X 0 0 0 GAIL HANSON BOARD MEMBER 1.00 4.00 X 0 0 0 THOMAS HAUSKE JR BOARD MEMBER 1.00 4.00 X 0 0 0 SHERRY HUSA BOARD MEMBER 1.00 4.00 X 0 0 0 DALE KENT BOARD MEMBER 1.00 4.00 X 0 0 0 ROBERT H MANEGOLD BOARD MEMBER 1.00 5.00 X 0 0 0 JEFFREY S MCDONALD BOARD MEMBER 1.00 4.00 X 0 0 0 MAGGEY OPLINGER BOARD MEMBER 1.00 4.00 X 0 0 0 JOHN PERRAS BOARD MEMBER 1.00 4.00 X 0 0 0 KATHY THORNTON-BIAS BOARD MEMBER - THRU 6/24 1.00 4.00 X 0 0 0 GREG WESLEY BOARD MEMBER 1.00 4.00 X 0 0 0 PETER ZIEGLER BOARD MEMBER 1.00 4.00 X 0 0 0 2087122 7446670 828495 17 0 1 0 CALL FLAWLESS INC 1010 CELEBRATION DRIVE AURORA IL 60604 CLEANING SERVICES 270693 INVITA HEALTHCARE TECHNOLOGIES 135 2ND AVE NORTH JACKSONVILLE FL 32250 SOFTWARE SUPPORT 267038 URBAN ELEVATOR SERVICE 54 EISENHOWER LN N LOMBARD IL 60148 ELEVATOR SERVICE 174160 ME BOCK INC 33280 N MILL RD GRAYSLAKE IL 60030 EQUIPMENT SERVICES 171058 F E MORAN INC MECHANICAL SERVICES 2283 CARLSON DRIVE NORTHBROOK IL 60062 FACILITY SERVICES 132034 10 18002 18002 BLOOD SERVICES 621991 60399956 60399956 0 0 DIAGNOSTIC LABORATORIE 621500 3358332 3358332 0 0 63758288 1135497 1135497 25127779 42753 25105972 0 21807 42753 64560 64560 AFFILIATE SERVICE FEES 900099 213034 213034 MISCELLANEOUS INCOME 900099 35 35 213069 65189416 63758288 0 1413126 42229 42229 48000 48000 1242696 260561 982135 39780 39780 19873739 18324710 1549029 1088374 988211 100163 3588146 3194377 393769 1502998 1327207 175791 140714 134289 6425 5541 5541 5292494 5242758 49736 216545 91224 125321 407847 381885 25962 299144 292703 6441 2452194 1430630 1021564 1363665 1262654 101011 123095 85973 37122 46575 36449 10126 1323195 762550 560645 23741 23741 COST OF IMPORTED PROD 7442048 7442048 MEDICAL LAB SUPPLIES 7415522 7415522 VERSITI SERVICES ALLOC 5558816 1678485 3880331 EQUIPMENT LEASE & MAINT 813357 626310 187047 348772 251369 97403 60699227 51320144 9379083 0 0 0 0 0 0 0 30876738 46686648 0 0 0 0 0 0 2006211 2009537 38155 43260 31011771 22672993 8403435 8338778 31563288 21328071 0 0 0 0 0 0 2242880 1952028 75130707 80358322 4116023 3194122 0 0 0 0 0 0 0 0 0 0 0 0 0 0 2684382 3103424 6800405 6297546 X 68330302 74060776 68330302 74060776 75130707 80358322 4490189 1240285 0 X 0 1 X 1 0 X 1009 26432 1411 20827 18002 67681 50570209 58574670 60144207 58846182 63758288 291893556 50571218 58601102 60145618 58867009 63776290 291961237 0 5985875 3224906 1781109 2072024 1520674 14584588 5985875 3224906 1781109 2072024 1520674 14584588 277376649 917031 958804 731046 1359929 1135497 5102307 22281 10505 32786 939312 969309 731046 1359929 1135497 5135093 18086 2938 177164 213069 411257 51528616 59573349 60876664 60404102 65124856 297507587 0.93230 0.91760 0.01730 0.01790 X SCHEDULE A, PART III, LINE 12, EXPLANATION OF OTHER INCOME: PATRONAGE DIVIDENDS - 2020 AMOUNT: $ 18,086. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 0. 2024 AMOUNT: $ 0. MISCELLANEOUS REVENUE - 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 2,938. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 0. 2024 AMOUNT: $ 35. AFFILIATE SERVICE FEES - 2020 AMOUNT: $ 0. 2021 AMOUNT: $ 0. 2022 AMOUNT: $ 0. 2023 AMOUNT: $ 177,164. 2024 AMOUNT: $ 213,034. 1 1 0 0 0 0 0 0 0 0 0 PART II-B, LINE 1: PAID STAFF OR MANAGEMENT GENERAL COUNSEL PROVIDES LOBBYING SERVICES TO THE FILING ORGANIZATION. HOWEVER, SUCH EXPENSES ARE PAID FOR BY VERSITI, INC., THE FILING ORGANIZATION'S PARENT. 104985040 784199 12490658 4744538 113515359 94766972 671355 14059961 4513248 104985040 112901289 848275 -13361785 5620807 94766972 99612019 1371435 16077669 4159834 112901289 89992682 4494881 9457908 4333452 99612019 0.98030 0.01970 0 1 1 425219 425219 15702409 12225636 3476773 800011 393962 406049 10333564 8396090 1937474 3750568 1657305 2093263 8338778 LEASE LIABILITY 2948282 LONG TERM RETIREMENT LIABILITIES 155142 3103424 X 66381407 1240285 1240285 65141122 5541 42753 48294 65189416 60650933 -42753 -42753 60693686 5541 5541 60699227 PART V, LINE 4: ENDOWMENTS THE FILING ORGANIZATION IS A BENEFICIARY OF THE VERSITI BLOOD RESEARCH INSTITUTE FOUNDATION'S ("VBRIF") ENDOWMENT AS A SUPPORTED ORGANIZATION. THE BOARD DESIGNATED ENDOWMENT FUNDS ARE DESIGNATED BY THE BOARD AS ENDOWMENT FUNDS TO ENSURE THE CONTINUING AVAILABILITY OF FUNDS FOR RESEARCH PURPOSES. PART X, LINE 2: INCOME TAXES VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION HAVE ALL RECEIVED TAX DETERMINATION LETTERS CONFIRMING THAT THE ORGANIZATIONS QUALIFY AS TAX-EXEMPT ORGANIZATIONS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). THE ORGANIZATION FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN, INCLUDING ISSUES RELATING TO FINANCIAL STATEMENT RECOGNITION AND MEASUREMENT. THIS GUIDANCE PROVIDES THAT THE TAX EFFECTS FROM AN UNCERTAIN TAX POSITION CAN ONLY BE RECOGNIZED IN THE FINANCIAL STATEMENTS IF THE POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED IF THE POSITION WERE TO BE CHALLENGED BY A TAXING AUTHORITY. THE ASSESSMENT OF THE TAX POSITION IS BASED SOLELY ON THE TECHNICAL MERITS OF THE POSITION, WITHOUT REGARD TO THE LIKELIHOOD THAT THE TAX POSITION MAY BE CHALLENGED. VERSITI, WISCONSIN, ILLINOIS, MICHIGAN, INDIANA AND THE FOUNDATION ARE EXEMPT FROM FEDERAL INCOME TAX UNDER IRC SECTION 501(C)(3), THOUGH THEYARE SUBJECT TO TAX ON INCOME UNRELATED TO THEIR EXEMPT PURPOSES, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE IRC. THE ORGANIZATION HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; TO DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND TO IDENTIFY AND EVALUATE OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. THE ORGANIZATION FILES FEDERAL AND STATE INCOME TAX RETURNS TO REPORT UNRELATED BUSINESS INCOME WHERE APPLICABLE, AND WITH FEW EXCEPTIONS, THOSE PERIODS GENERALLY REMAIN OPEN THREE YEARS FOR FEDERAL PURPOSES AND FOUR YEARS FOR STATE PURPOSES. THE STATUTE OF LIMITATIONS WILL REMAIN OPEN FOR ANY YEARS WHERE RETURNS WERE NOT FILED. THE ORGANIZATION HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. THE ORGANIZATION RECOGNIZES, IF NECESSARY, INTEREST AND PENALTIES RELATED TO UNRECOGNIZED TAX BENEFITS IN THE PROVISION FOR INCOME TAXES. THERE WERE NO MATERIAL INTEREST OR PENALTIES RELATED TO INCOME TAXES THAT HAVE BEEN ACCRUED OR RECOGNIZED AS OF AND FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON DISPOSITION OF FIXED ASSETS 30,615. GAIN ON FINANCE LEASES 12,138. PART XII, LINE 2D - OTHER ADJUSTMENTS: GAIN ON DISPOSITION OF FIXED ASSETS -30,615. GAIN ON FINANCE LEASES -12,138. 1 SCHOLARSHIPS 16 48000 FMV PART I, LINE 2: PROCEDURE FOR MONITORING USE OF GRANT FUNDS INSIDE U.S. FROM TIME TO TIME, VERSITI ILLINOIS PROVIDES GRANT ASSISTANCE TO VERSITI WISCONSIN, INC. AND OTHER ORGANIZATIONS. THESE FUNDS WILL SUPPORT FUTURE BLOOD RESEARCH AND OTHER INITIATIVES TO SERVE MORE PATIENTS AND REDUCE OVERALL COSTS. MONITORING THE INVESTMENT OF THESE FUNDS, THE DISTRIBUTIONS AND WHAT THESE FUNDS ARE USED FOR IS COMPLETED BY THE LEADERSHIP OF VERSITI. ADDITIONALLY, THE FILING ORGANIZATION OFFERS SCHOLARSHIPS TO EMPLOYEES AND COMMUNITY MEMBERS IF CERTAIN CRITERIA ARE MET. THE SCHOLARSHIPS ARE SENT TO THE COLLEGE OR UNIVERSITY WHERE THE STUDENT IS ENROLLED. X X X X X 0 0 0 1 1 1 1 1 0 CHRIS MISKEL PRESIDENT & CEO 135507 661591 136120 664584 4215 20579 4106 20045 5698 27820 285646 1394619 0 0 BART REUTER EVP & GENERAL COUNSEL 73193 357352 68920 336490 4360 21285 4106 20045 7123 34772 157702 769944 0 0 BRIAN BAUTISTA EVP & CHIEF OPERATING OFFICER 79179 386578 55273 269863 3719 18153 3122 15244 5989 29237 147282 719075 0 0 ANTHONY WATKINS EVP&CFO-THRU 3/24;BUS DEV-AS OF 3/24 55637 271645 60265 294235 11378 55551 4106 20045 973 4752 132359 646228 0 0 MICHAEL DEININGER MD EVP & CHIEF SCIENTIFIC OFFICER 0 523564 0 118100 0 28946 0 15884 0 23347 0 709841 0 0 BRADLEY PIETZ EVP & CHIEF LABORATORY OFFICER 52260 255150 45514 222216 4382 21393 4072 19879 7051 34428 113279 553066 0 0 JAMES WEIDNER EVP & CHIEF HR OFFICER 54168 264467 38697 188930 4308 21032 4106 20045 5550 27091 106829 521565 0 0 MATTHEW ANDERSON MD EVP & CHIEF MED. OFF. - AS OF 7/24 0 403926 0 65100 0 2842 0 24150 0 41700 0 537718 0 0 LYNNE BRIGGS VP & CHIEF INFORMATION OFFICER 54547 266316 26181 127825 1190 5807 4480 21873 4466 21803 90864 443624 0 0 DEREK TYUS EVP & CHIEF FINANCIAL OFF. - AS 3/24 55972 273275 20400 99600 520 2537 4028 19665 4192 20468 85112 415545 0 0 BARBARA BRYANT EVP & CHIEF MED. OFF. - THRU 8/24 0 328620 0 101700 0 17502 0 23946 0 1902 0 473670 0 0 GITESH DUBAL EVP & CHIEF MKTG. OFF. - THRU 4/24 21888 106870 43920 214434 3391 16557 1797 8774 2245 10965 73241 357600 0 0 KEVIN HA HBC ASSOCIATE MEDICAL DIRECTOR 237621 0 12600 0 465 0 17133 0 36863 0 304682 0 0 0 JESSICA DROUILLARD VP & CHIEF QUALITY OFFICER 33539 163750 9418 45982 3970 19378 2618 12782 595 2910 50140 244802 0 0 AMY SMITH DIRECTOR DONOR SERVICES 191164 0 47700 0 1821 0 8133 0 39133 0 287951 0 0 0 GRETCHEN JAMESON EVP & CHIEF MKTG. OFF. - AS OF 4/24 37269 181963 0 0 201 982 2334 11397 218 1064 40022 195406 0 0 JYOTHI PERLA MANAGER HRIS 116440 0 0 0 24304 0 10686 0 42577 0 194007 0 0 0 SHELLEY WHITSEY-MITCHELL REGIONAL MGR DONOR SERVICES 97437 0 40734 0 1739 0 9961 0 13026 0 162897 0 0 0 PART I, LINE 3 TOP MANAGEMENT'S COMPENSATION THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR THE FILING ORGANIZATION. OTHER THAN THE VERSITI PRESIDENT AND CHIEF EXECUTIVE OFFICER, THE EXECUTIVE COMMITTEE DOES NOT INCLUDE MEMBERS OF MANAGEMENT. TO ENSURE THAT THE COMMITTEE IS COMPRISED OF INDIVIDUALS WHO DO NOT HAVE A CONFLICT OF INTEREST WITH RESPECT TO VERSITI COMPENSATION ARRANGEMENTS, THE VERSITI PRESIDENT AND CHIEF EXECUTIVE OFFICER RECUSES HER/HIMSELF FROM ALL DISCUSSIONS AND APPROVALS RELATED TO HER/HIS COMPENSATION. THE EXECUTIVE COMMITTEE REVIEWS EXECUTIVE COMPENSATION ARRANGEMENTS TO ENSURE SUCH ARRANGEMENTS ARE FAIR, REASONABLE, AND NOT EXCESSIVE WHEN COMPARED TO SIMILARLY-SITUATED EXECUTIVES. EXECUTIVE COMPENSATION ARRANGEMENTS ARE REVIEWED FOR REASONABLENESS AND APPROVED BY THE EXECUTIVE COMMITTEE ANNUALLY IN ACCORDANCE WITH THE VERSITI REASONABLENESS REVIEW POLICY. IN ORDER TO ASSESS THE REASONABLENESS OF EXECUTIVE COMPENSATION ARRANGEMENTS, THE EXECUTIVE COMMITTEE OBTAINS AND REVIEWS APPROPRIATE COMPARABILITY DATA COLLECTED BY THE HUMAN RESOURCE DEPARTMENT AND/OR AN INDEPENDENT COMPENSATION CONSULTANT. THE EXECUTIVE COMMITTEE ENGAGES A QUALIFIED INDEPENDENT COMPENSATION CONSULTANT ANNUALLY. THE INDEPENDENT CONSULTANT PERFORMS AN ANALYSIS OF COMPENSATION LEVELS AT REGIONAL AND NATIONAL ORGANIZATIONS OF COMPARABLE SIZE, SCOPE AND STRUCTURE AND PROVIDES THE COMMITTEE WITH COMPREHENSIVE DATA ON THE AVAILABILITY OF SIMILAR SERVICES WITHIN THE GEOGRAPHIC AREA, COMPENSATION SURVEYS, WRITTEN OFFERS FROM SIMILAR INSTITUTIONS, AND OTHER INFORMATION RELEVANT TO COMPARABILITY OF COMPENSATION. THE EXECUTIVE COMMITTEE'S REVIEW, RECOMMENDATIONS AND APPROVALS ARE DOCUMENTED CONCURRENTLY IN THE COMMITTEE MINUTES, WHICH ARE SUBSEQUENTLY REVIEWED AND APPROVED BY THE EXECUTIVE COMMITTEE AS REASONABLE, ACCURATE AND COMPLETE. THE COMMITTEE CHAIR VERBALLY COMMUNICATES TO THE VERSITI BOARD OF DIRECTORS A CONFIRMATION OF COMPENSATION REASONABLENESS AND THE OVERALL DUE DILIGENCE PROCESS. VERSITI ILLINOIS HAS INCENTIVE PROGRAMS FOR THE CHIEF EXECUTIVE OFFICER AND OTHER CORPORATE OFFICERS DESCRIBED IN DETAILED WRITTEN POLICIES APPROVED BY THE EXECUTIVE COMMITTEE ANNUALLY. EVALUATION AND COMPENSATION REVIEW -CEO - EACH YEAR, THE EXECUTIVE COMMITTEE EVALUATES THE CEO'S PERFORMANCE AGAINST ESTABLISHED OBJECTIVES, DETERMINES INCENTIVE PAYMENT AND MERIT INCREASE BASED UPON PERFORMANCE AND MARKET DATA PROVIDED BY THE THIRD PARTY COMPENSATION CONSULTANT, AND WORKS WITH THE CEO TO ESTABLISH OBJECTIVES FOR THE NEXT YEAR. -OTHER CORPORATE OFFICERS - THE BOARD OF DIRECTORS HAS DELAGATED TO THE CEO THE PERFORMANCE ASSESSMENT AND COMPENSATION DECISIONS FOR HIS/HER TEAM AND LEADERS ELIGIBLE FOR THE VERSITI LEADERSHIP INCENTIVE PLAN. DURING THE MAY MEETING, THE EXECUTIVE COMMITTEE REVIEWS THE INCENTIVES (SHORT AND LONG-TERM) PAYOUTS AND MERIT INCREASES ASSIGNED TO THE EXECUTIVE TEAM AS PART OF THE ANNUAL COMPENSATION REASONABILITY REVIEW CONDUCTED BY AON CONSULTANTS. THE EXECUTIVE COMMITTEE REVIEWS AND APPROVES THE SALARY INCREASES AND INCENTIVE PAYOUTS OF THE CEO BEFORE PAYMENT. CORPORATE OFFICERS ARE POSITIONED WITHIN THE APPROPRIATE SALARY RANGE BASED UPON: -EXECUTIVE'S KNOWLEDGE, COMPETENCIES, AND EXPERIENCE, -PERFORMANCE OF THE EXECUTIVE'S AREAS OF RESPONSIBILITY, -THE EXECUTIVE'S CONTRIBUTION TO OVERALL PERFORMANCE, -THE IMPORTANCE OF RETAINING THE EXECUTIVE, -INTERNAL EQUITY CONSIDERATIONS, -THE FINANCIAL RESOURCES AVAILABLE, AND -EXECUTIVE BASE SALARY INCREASES PROVIDED IN THE COMPETITIVE MARKET PART I, LINE 5A, 5B, 6A, 6B AND 7: NON-FIXED PAYMENTS INCENTIVE PAYOUT OPPORTUNITIES, BASED ON PERCENTAGE OF BASE PAY RATE, ARE AVAILABLE TO CERTAIN EMPLOYEES OF THE FILING ORGANIZATION. WHILE LEVELS OF THE INCENTIVE PAYOUT OPPORTUNITY ARE FIXED AND DETERMINED PERCENTAGES OF BASE COMPENSATION; THE INCENTIVE PAYOUT IS DETRMINED; IN PART, ON THE CONSOLIDATED REVENUE AND NET EARNINGS OF OPERATING DIVISIONS. THE INCENTIVE PAYOUT IS SUBJECT TO THE REVIEW OF ACCOMPLISHMENTS/OBJECTIVES AND THE ULTIMATE DETERMINATION OF INCENTIVE COMPENSATION IS SUBJECT TO PRESIDENT/CEO AND EXECUTIVE COMMITTEE OF THE BOARD APPROVAL. FORM 990, PART I, LINE 1 VERSITI ILLINOIS, INC. (VERSITI ILLINOIS) IS A BLOOD HEALTH INNOVATOR WHICH ENHANCES LIVES THROUGH DISCOVERY, DIAGNOSIS AND TREATMENT. VERSITI EXPANDS THE FRONTIERS OF PATIENT HEALTH THROUGH THE INTEGRATION OF SCIENCE, MEDICINE AND SERVICE. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS VERSITI, INC. (A 501(C)(3) ORGANIZATION) IS THE SOLE CORPORATE MEMBER. FORM 990, PART VI, SECTION A, LINE 7A MEMBER OR STOCKHOLDER POWERS VERSITI, INC. HAS RESERVE POWERS; INCLUDING THE ABILITY TO ELECT A MAJORITY OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B REFER TO NARRATIVE LISTED IN LINE 7A. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW VERSITI ILLINOIS UTILIZES GRANT THORNTON TO COMPLETE THE IRS FORM 990 AND RELATED SCHEDULES. FOLLOWING COMPLETION, THEY ARE REVIEWED BY THE ORGANIZATION'S MANAGEMENT. THE DRAFT FORMS ARE THEN REVIEWED BY THE AUDIT AND COMPLIANCE COMMITTEE PRIOR TO SUBMISSION TO THE IRS. THE FULL BOARD IS PROVIDED A COPY OF THE FORM 990 PRIOR TO FILING. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY VERSITI ILLINOIS MAINTAINS A WRITTEN CONFLICT OF INTEREST POLICY. ON AN ANNUAL BASIS, CURRENT DIRECTORS AND OFFICERS ARE ASKED TO COMPLETE A DISCLOSURE FORM BASED ON IRS REQUIREMENTS THAT INCLUDES THE FOLLOWING: WHETHER THEY HAVE ANY DIRECT OR INDIRECT RELATIONSHIP EITHER THROUGH BUSINESS OR FAMILY MEMBER WITH THE ORGANIZATION. WHETHER THEY RECEIVED COMPENSATION FROM ANY ORGANIZATION THAT SHARES COMMON OWNERSHIP OR CONTROL WITH THE ORGANIZATION. WHETHER THEY HAVE SERVED AS AN OFFICER, DIRECTOR, KEY EMPLOYEE, PARTNER OR MEMBER OF AN ENTITY (OR SHAREHOLDER OF A PROFESSIONAL CORPORATION) DOING BUSINESS WITH THE ORGANIZATION. THESE ANSWERS ARE ACCUMULATED, SUMMARIZED AND EVALUATED BY MANAGEMENT TO DETERMINE IF ANY CONFLICTS EXIST. IDENTIFIED CONFLICTS ARE ADDRESSED IN ACCORDANCE WITH THE WRITTEN POLICY. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION PROCESS THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS, ACTING IN ITS CAPACITY AS THE COMPENSATION COMMITTEE, SETS AND MONITORS THE COMPENSATION PHILOSOPHY FOR THE FILING ORGANIZATION. FORM 990, PART VI, SECTION C, LINE 19 ORGANIZATION'S DOCUMENTS OPEN TO THE PUBLIC THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE UPON REQUEST DURING NORMAL BUSINESS HOURS AND AT THE ORGANIZATION'S LOCATION. PART VII: AVERAGE HOURS THE HOURS LISTED ON FORM 990, PART VII ARE REPRESENTATIVE OF AN AVERAGE FOR THE OFFICERS AND EXECUITVE TEAM. 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