Official Seal, Everything Is Broken (2026)

Everything Is Broken

Report No. 1 · Nonprofit Hospital Executive Pay vs Charity Care · Annual Report, 2026 edition

Michigan · Ranked 595 of 1033 by CEO pay.

Mclaren Lapeer Region

Tim Vargas, President And CEO. Fiscal year ending 2025-09.

$623,817
CEO total compensation
Form 990 Part VII, columns D+E+F
2.32%
of expenses spent on charity care
Schedule H Part I line 7a
17.9%
CEO pay as a share of all charity care
Tim Vargas’s pay of $623,817 equals 17.9 percent of the $3,488,142 the system spent on charity care in the same year.

Most of the reported compensation ($587,929 of $623,817) came from a related organization (Part VII column E) and was reported on this filing.

§1The filing

Total revenue
$170,251,567
Total expenses
$150,648,242
Net assets
$147,448,765
Employees
1,046
Hospitals covered
1 facilities across 1 filing
Charity care, net
$3,488,142
Bad debt
$5,728,620
Medicare surplus (shortfall), as filed
$5,454,767
CEO pay from the organization (Part VII col. D)
$0
From related organizations (col. E)
$587,929
Other compensation, including deferred pay and nontaxable benefits (col. F)
$35,888
CEO total compensation (D+E+F)
$623,817 to Tim Vargas

Medicare surplus (shortfall) is Schedule H Part III line 7: Medicare revenue minus the cost of Medicare care. A figure in parentheses is a shortfall. Like bad debt, it is not community benefit on the IRS form.

Source: Form 990, Mclaren Lapeer Region, EIN 38-2689033, fiscal year ending 2025-09, as published by the IRS. CEO identification: ceo title.

§2Community benefit versus charity care

What the system reported as total community benefit (Schedule H line 7k)$4.7M Of which charity care to patients who could not pay (line 7a)$3.5M (74%)

The rest of line 7k is Medicaid shortfall, medical education, research, subsidized services and contributions. Bad debt ($5.7M) and Medicare shortfall are reported separately by the IRS and are not community benefit on the form.

Every number on this page was copied from the filing linked above. If a figure is wrong, send the filing that contradicts it and the correction runs at the top of this page.

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Mclaren Lapeer Region: CEO pay $623,817, charity care 2.32% of expenses