ALLIANCE FOR HEALTH - 2014 PROJECT EVALUATION STATUS REPORT AS OF SEPTEMBER 3, 2014 Project No. AFH MDCH Proposed Project Title Capital Cost Year 1 Incremental Revenue Expense Project Status $59,000 NA NA LOI 9/9/13 $0 NA NA NS LOI 9/9/13;LOI resubmitted 7/29/14 $44,500 NA NA LOI 1/6/14 $11,970,000 $11,498,005 $11,393,704 $107,000 NA NA LOI 4/7/14 $2,663,594 NA NA LOI 6/16/14; proposal 7/1/14 $123,984 NA NA LOI 6/22/14 $9,440,000 NA NA LOI 5/30/14; proposal 7/1/14 $110,000 NA NA LOI 5/22/14; proposal 7/25/14 $25,546,351 NA NA LOI 5/30/14; proposal 7/1/14 $810,000 NA NA LOI 7/17/14; proposal 8/15/14 PROJECTS PENDING 13-44 13-45 13-0321 Community Shores Dental – Dental CT Scanner (Muskegon) 12997 Mercy Health Partners – Add Lakeshore Campus to Mobile MRI Network #50 (Shelby) 14-01 14-0009 Jacob Lueder - Dental CT Scanner (Grand Rapids) 14-04 14-0026 Ciena Healthcare Management/Regency at Grand Haven - New 133-Bed Nursing Home (Grand Haven) 14-12 14-0095 Great Lakes Dental Excellence (Muskegon) - Purchase OP 300 2D/3/D Digital Panoramic Cone Beam CT Imaging System 14-13 14-0165 Spectrum Health Hospitals - Expand Hybrid OR/CCL capacity with addition of one (1) Hybrid OR/CCL on the 2nd floor of the Meijer Heart Center (Grand Rapids) 14-14 14-0200 Dr. Mark Powell - Dental CT Scanner (Jenison) 14-18 14-0122 14-15 14-0141 J. Todd Hunt DDS - Replace Dental CT Scanner (Muskegon) 14-17 14-0151 Spectrum Health Rehab and Nursing Center - Replace 165-Bed Nursing Home at Site (Grand Rapids) 14-20 14-0193 Metro Health Hospital - Replace Fixed MRI Unit with a Philips Achieva 16 Channel MRI Unit with Breast Coil 14-21 14-0214 CCRC CpCo - The Inn at Freedom Village - Renovate SNF $2,275,070 NA NA LOI 8/6/14 14-22 14-0211 Mercy Health Partners - Expand existing Mobile MRI Network #202 (Muskegon) $2,400,000 NA NA LOI 8/5/14 14-23 14-0210 $1,700,000 NA NA LOI 8/5/14 Oceana County Medical Care Facility - Renovate existing space and Replace 16 Nursing Home Beds into newly constructed addition Mercy Health Partners - Replace existing Mobile MRI Unit and Trailer Network #202 (Muskegon) Page 1 of 5 LOI 1/13/14; proposal 2/3/14; MDCH pending; 30-day extension given 6/16/14; 7/18/14 2nd 30-day extension ALLIANCE FOR HEALTH - 2014 PROJECT EVALUATION STATUS REPORT AS OF SEPTEMBER 3, 2014 14-24 Imaging Outreach of Michigan (West Michigan Imaging Partners, LLC) - Receive 14-0222 Mobile MRI Service from Alliance NHI, LLC on Mobile MRI Network #34. (Grand Rapids) 14-25 14-0214 The Inn at Freedom Village - SNF Bed Replacement (Holland) 14-26 13386 Holland Community Hospital - Relocate 1 Operating Room to Surgery Center of Western Michigan (Holland) 14-27 13387 Surgery Center of Western Michigan - Expand Surgical Services by Adding 1 Operating Room from Holland Hospital (Holland) SUBTOTAL - PENDING PROJECTS $0 $0 $0 LOI 8/12/14 $2,275,070 NA NA LOI 8/6/14 $0 $0 $0 LOI 8/27/14 $300,000 NA NA LOI 8/27/14 $59,824,569 $11,498,005 $11,393,704 SUBSTANTIVE PROJECTS ENDORSED 13-40 13-0297 Mercy Health Saint Mary’s – Replace 13 Operating Rooms into New Construction (Grand Rapids) $35,337,100 $3,701,185 $6,199,257 AH endorsed 12/1/13; MDCH approved 1/23/14 13-43 13-0313 Orthopaedic Associates of Michigan – Host Site on MRI Mobile Network #96 /(Wyoming) $5,773,000 $1,755,000 $1,181,364 AH endorsed 1/16/14; MDCH approved 3/3/14 13-46 13-0329 Mercy Health Saint Mary’s – Renovate 7th and 8th Floor Inpatient Units (Grand Rapids) $8,297,713 $306,695 $1,141,894 AH endorsed 12/1/13; MDCH approved 3/3/14 13-52 13-0336 Mary Free Bed Hospital – Relocate 39 Beds from Pennock Hospital (Grand Rapids) $5,000,000 $14,469,952 $12,392,023 AH endorsed 1/16/14; MDCH approved 3/20/14 14-02 14-0028 Metro Health Hospital - Host Site on Mobile Lithotripsy Network #167 at Metro Health Outpatient Surgical Center (Grand Rapids) $0 NA NA LOI 1/15/14, proposal 3/18/14;approved 4/18/14 14-05 14-0043 Carson City Hospital -Relocate 16 Psychiatric Beds to Pine Rest Christian Hospital (Grand Rapids) $0 NA NA LOI 2/5/14; proposal 4/1/14, MDCH approved 8/26/14 14-06 14-0044 Pine Rest Christian Hospital - Acquire 16 Adult Psychiatric Beds from Carson City Hospital (Grand Rapids)+A40 $5,250,000 NA NA LOI 2/5/14; proposal 4/1/14, MDCH approved 8/26/14 14-16 14-0150 The Inn at Freedom Village - Acquisition of licensed 39-Bed Nursing Home by CCRC OpCo-Holland, LLC, and obtain new 15-year lease (Holland) $6,725,985 $4,678,975 $4,457,784 $31,046,698 $21,210,622 $19,173,065 SUBTOTAL - SUBSTANTIVE PROJECTS ENDORSED NONSUBSTANTIVE PROJECTS ENDORSED Page 2 of 5 LOI 5/30/14; proposal 6/23/14; MDCH approved 8/18/14 ALLIANCE FOR HEALTH - 2014 PROJECT EVALUATION STATUS REPORT AS OF SEPTEMBER 3, 2014 William Robson, DDS – Dental CT Scanner at Associated Family Dentists (Grand Rapids) 13-41 13-0303 $136,000 $29,853 $17,760 AH endorsed, NS 2/3/14, MDCH approved 2/26/14 13-55 13-0371 DellaVecchia Dental Services – Dental CT Scanner (Douglas) $71,000 $88,176 $76,537 LOI 10/31/13, proposal 11/22/13, MDCH pending 5/2/14; approved 4/18/14 13-58 13-0369 $161,704 $130,128 $60,113 AH endorsed, NS, 2/12/14; MDCH pending 6/3/14 14-10 Spectrum Health Rehab & Nursing Center (Grand Rapids) - Relocate 17 licensed 14-0084 Nursing Home beds to Marywood Health Center (Grand Rapids); decreases licensed beds to 261 $0 NA NA LOI 3/28/14; proposal 5/1/14; MDCH approved 5/22/14 14-11 Marywood Health Center (Grand Rapids) - Acquire 17 licensed Nursing Home beds 14-0085 from Spectrum Health Rehab & Nursing Center (Grand Rapids); increases licensed bed capacity to 49 $0 NA NA LOI 3/28/14; proposal 5/1/14; MDCH approved 5/22/14 $368,704 $248,157 $154,410 West Shore Oral and Maxillofacial Surgery Association - Relocate Dental CT (Muskegon) SUBTOTAL - NONSUBSTANTIVE PROJECTS ENDORSED PROJECTS NOT ENDORSED 13-20 13-0138 Ciena Healthcare Management/Grand Haven Care Center – 15-Bed Addition to 47 – Bed Nursing Home (Grand Haven) $1,425,000 $1,211,805 $648,851 13-24 13-0160 Waterford Rehab Center III – 40-Bed Nursing Home (Jenison) COMPARATIVE WITH 13-20 AND 13-28 $9,750,000 $4,053,183 $3,272,312 AH NOT endorsed, 10/17/13, MDCH disapproved 1/21/14 13-27 13-0179 Ciena Healthcare Management/Regency at Grand Haven – 125-bed Nursing Home (Grand Haven) COMPARATIVE WITH 13-20 AND 13-24 $9,375,000 $9,732,725 $8,918,386 AH NOT endorsed 10/1713, MDCH disapproved 1/21/14 SUBTOTAL - PROJECTS NOT ENDORSED $20,550,000 $14,997,713 $12,839,549 AH NOT endorsed 1/16/14; withdrawn 2/18/14 FILES CLOSED 13-07 13-0052 Mercy Health Hackley – Replace Mobile MRI Unit for Network #202 (Muskegon) $1,200,000 NA NA NS LOI 2/6/13; inactive; file closed 13-16 13-0080 Oceana County Medical Care Facility Expand Alzheimer’s Wing by 16 Beds (Hart) $5,082,325 NA NA LOI 2/21/13, inactive; file closed 13-56 14-0006 Ciena Healthcare Management/Grand Haven Care Center - 20-Bed Addition (Grand Haven) $1,900,000 NA NA LOI 12/12/13; file closed 13-53 13-0391 Spectrum Health Butterworth – Take 12 Beds from Spectrum Health United and 10 Beds from Spectrum Health Blodgett (Grand Rapids) $0 NA NA LOI 11/20/13, review waived, file closed; clarified 2/11/14 to also include 10 beds from Blodgett 14-03 14-0042 Holland Hospital - Renovate 5 West Inpatient Unit (Holland) $3,060,000 NA NA LOI 1/21/14, file closed 2/21/14 Page 3 of 5 ALLIANCE FOR HEALTH - 2014 PROJECT EVALUATION STATUS REPORT AS OF SEPTEMBER 3, 2014 14-07 14-0055 Spectrum Health Blodgett - Relocate 10 Beds to Helen DeVos Children's Hospital at Butterworth Hospital (Grand Rapids) $0 NA NA LOI 2/10/14, closed 3/7/14; waived/not reviewable 14-08 14-0094 Spectrum Health Gerber Memorial (Fremont)- Relocate 24 Acute Care Beds to Spectrum Health Blodgett Hospital (Grand Rapids) $0 NA NA LOI 3/21/14; waived, not reviewable; file closed 4/15/14 14-09 14-0093 Spectrum Health Blodgett Hospital (Grand Rapids) - Acquire 24 Licensed Beds from Spectrum Health Gerber Memorial Hospital (Fremont) $0 NA NA LOI 3/21/14; waived, not reviewable; file closed 4/15/14 14-19 14-0139 Holland Home /Breton Rehabilitation & Living Centre - Renovation and Rehab Center Addition (Grand Rapids) $1,685,000 NA NA LOI 5/20/14; waived, not reviewable; file closed 6/6/14 13-57 13-0286 Sheridan Community Hospital - Mobile MRI Host Site on Network #65 $0 NA NA LOI 8/8/13; file closed 8/8/14 $12,927,325 $0 $0 SUBTOTAL -FILES CLOSED PROJECT AMENDMENTS/STATUS UPDATES 10-0209 Pine Rest Christian Hospital – Add 6 High Occupancy Psychiatric Beds and Expand Mulder Center (Cutlerville) 11-56 12-0017 Mary Free Bed Rehabilitation Hospital – Replace 40 Beds in Newly Constructed Space (Grand Rapids) $48,387,025 12-34 12-0289 Spectrum Health Hospitals –Add 4 Operating Rooms to Butterworth Campus (Grand Rapids) $5,118,028 10-15 $5,168,071 KEY Page 4 of 5 $1,467,170 AH endorsed 9/15/11; MDCH approved 11/1/11; amended 3/25/14 to reflect increased cost of $1,370,121, new cost $6,538,192 $3,010,013 $2,874,502 AH endorsed 4/19/12; MDCH approved 6/20/12; Amended cost = $51,387,025; Amended 10/12/13 to cost $66,887,025; amended 3/19/14 to reflect revised site plans; MDCH approved 7/17/14 $892,245 $2,357,630 AH endorsed 1/17/13; MDCH approved 2/14/14; Amended 6/16/14 to reflect relocation to new site within Meijer Heart Center and reduction in cost $1,479,618 ALLIANCE FOR HEALTH - 2014 PROJECT EVALUATION STATUS REPORT AS OF SEPTEMBER 3, 2014 AH = Alliance for Health NS = Nonsubstantive C = Proposed Capital Expenses OE = 1st Year Operating Expense Increase (Decrease) OR = 1st Year Operating Revenue Increase (Decrease) CON Certificate of Need MDCH= Michigan Department of Community Health NA = Information Not Available LOI = Letter of Intent NRN = No Review Necessary Page 5 of 5
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