2024-02-16T12:40:56-06:00 2022-12-31 450250958 Eide Bailly LLP 800 Nicollet Mall Ste 1300 Minneapolis MN 554027033 990 2022-01-01 454789950 Confluence Health System CONF 5096644868 1201 S Miller St Wenatchee WA 98801 Thomas Legel Chief Financial Officer 5096644868 2024-02-16 1 Thomas Legel 999009999 1 Kim Hunwardsen CPA P00484560 6122536500 2024-02-16 0 AAL1 IAL1 2022 2023-04-26 12:10:37Z Thomas Legel 1201 S Miller St Wenatchee WA 98801 284240202 0 X www.confluencehealth.org X 2012 WA Improving health by providing high-quality care in a compassionate and cost-effective manner. 15 9 1220 120 0 0 1080986 730716 238917472 283375181 288318 67690 36241 -20822 240323017 284152765 564854 790901 0 0 76025826 89939920 0 0 0 178099438 187136440 254690118 277867261 -14367101 6285504 117607659 80488899 113268117 74550159 4339542 5938740 X Improving health by providing high-quality care in a compassionate and cost-effective manner. 0 0 241605885 790901 283375181 Confluence Health provides the administrative and shared functions as follows:A. Maintain the availability and access to high quality, cost-effective healthcare services for the North Central Washington (NCW) community;B. Improve coordination of limited health care resources and maximize the efficiency of the health care system to achieve the most cost-effective care that can be delivered;C. Preserve NCW community control over important care decisions and ensure NCW community involvement in the development of the medical infrastructure and oversight of the NCW community healthcare delivery system;Continued on Schedule OD. Enhance the patient-physician relationship and maintain the high quality of care and breadth of services the NCW community currently enjoys;E. Improve teamwork and integration across the continuum of care and ensure that physicians and other healthcare providers lead clinical designs and clinical decisions;F. Ensure that physicians and administrative leaders have a shared vision regarding the NCW community health care delivery system;G. Ensure that the NCW community economy, jobs, and business partners are preserved and can grow with the region in a responsible way;H. Develop a high performing integrated health care delivery system for the NCW community that could apply for and be successful with contracts from Medicare so that the newly created health system can be identified as an accountable care organization if so desired and position the health system so that it could contract for the overall system of care and be successful with a newly developed risk contracts being offered by commercial insurers;I. Establish, equip, operate and maintain benevolent and charitable institutions for the giving of medical and surgical care to the sick, wounded, and suffering irrespective of sex, marital status, disability, color, race, religious belief, sexual orientation, economic status, or pecuniary circumstances; andJ. Carry on any educational activities, related to the rendering of care to the sick and injured or the promotion of health which, in the opinion of the Board of Directors of the health system may be justified by the facilities, personnel, funds or other requirements that are or can be made available in accordance with the laws of the state of Washington. 241605885 1 1 0 1 0 0 0 0 0 0 1 0 1 1 1 1 0 1 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 1 1 1 0 0 1 112 0 1 1220 1 0 0 0 0 0 0 0 0 0 0 0 0 X 15 9 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X Thomas Legel 5096621511 1201 South Miller Street Wenatchee WA 98801 Doug Shae Chair 2.00 4.00 X X 6600 0 0 Jenny Cravens Vice Chair 2.00 4.00 X X 6600 0 0 Gus Heinicke Treasurer 2.00 4.00 X X 6600 0 0 Abe Sorom MD Secretary 2.00 4.00 X X 0 0 0 Dave Balcom Board Member 2.00 4.00 X 1200 0 0 Garn Christensen Board Member 2.00 4.00 X 6600 0 0 Vanessa Gutierrez Board Member 2.00 4.00 X 1800 0 0 Greg Hamilton Board Member 2.00 4.00 X 6600 0 0 Cori Bautista Board Member 2.00 4.00 X 6600 0 0 Vicky Sharlau Board Member 2.00 4.00 X 6600 0 0 Mitchell A Garrison MD Board Member 1.00 3.00 X 0 0 0 Jennifer Jorgensen MD Board Member 1.00 3.00 X 0 0 0 Catherine Ridgeway MD Board Member 1.00 3.00 X 0 0 0 Tom Tuszynski MD Board Member 1.00 3.00 X 0 0 0 Jim Murray MD Board Member 1.00 3.00 X 0 0 0 Robert Trask Jr Board Member (thru July) 1.00 3.00 X 0 0 0 Peter Rutherford MD Chief Executive Officer (thru May) 20.00 35.00 X 727143 0 36891 Thomas J Legel Chief Financial Officer 20.00 35.00 X 627989 0 44146 Andrew Jones MD Chief Executive Officer (as of July) 20.00 35.00 X 413903 0 10290 Glenn W Adams Chief Operations Officer 20.00 35.00 X 580240 0 41236 Robert J Pagaler Chief Information Officer 20.00 35.00 X 449927 0 29643 Jason M Lake MD Chief Medical Officer 20.00 35.00 X 513771 0 46281 Tracy A Kasnic CNO, Hospital Administrator 20.00 20.00 X 462618 0 32519 JoEllen Colson VP, Ancillary Services 20.00 35.00 X 300083 0 0 Jay H Johnson VP, SR Network Strategy 20.00 35.00 X 373135 0 44146 Eric Caldwell VP Finance 20.00 35.00 X 168735 0 14406 Kris Deyerle VP, General Counsel 50.00 0.00 X 401994 0 39290 Thomas K Christensen VP of Human Resources 50.00 0.00 X 303170 0 18884 Sarah Brown VP Risk & Regulatory 50.00 0.00 X 262931 0 41618 Joshua Wood VP Revenue Cycle 50.00 0.00 X 257032 0 40711 Michael Sieg VP Strategy & Impact 50.00 0.00 X 246601 0 38294 6138472 0 478355 128 0 1 1 Kiwico LLC 122 N Raymond Rd Spokane Valley WA 99206 Advertising 280237 Change Healthcare Technology PO Box 572490 Murray UT 841572490 Healthcare Technology 196263 Rapid7 LLC PO Box 347377 Pittsburgh PA 152514377 Security data and analytic software solu 138459 Wenatchee Valley Medical Group 820 N Chelan Ave Wenatchee WA 98801 Physician Services 128457 Midwest Series Lockton Company LLC 15939 Collection Center Drive Chicago IL 60693 Consulting Services 115000 6 730716 730716 Managed Care Revenue 541610 142330607 142330607 Management Services 541610 134137864 134137864 Other Operating Income 900099 6906710 6906710 283375181 66615 87437 -20822 -20822 -20822 67690 0 67690 67690 67690 284152765 283375181 0 46868 X 527978 527978 262923 262923 5008069 2693946 2314123 408944 408944 62753222 62479990 273232 2235163 2222300 12863 13668001 13340990 327011 5866521 5690666 175855 1163532 1163532 133383 133383 151682305 150473271 1209034 2434606 121875 2312731 2311294 86722 2224572 3968531 132247 3836284 833425 833425 4867346 105084 4762262 1585679 1154023 431656 Maintenance and Repairs 15103989 727644 14376345 Taxes and Licenses 2873234 10 2873224 Medical Supplies 179116 13740 165376 277867261 241605885 36261376 0 3052922 45267781 24672 194 5506254 5751262 61793327 38840674 28018435 22952653 31096286 29811727 4665787 21948585 117607659 80488899 62574030 25948194 40000000 39981307 10694087 1454920 0 7165738 113268117 74550159 X 4339542 5938740 4339542 5938740 117607659 80488899 X 6285504 -736873 -3949433 X 0 1 X 1 1 1 X X X 2 Wenatchee Valley Hospital 455563741 3 1 34920342 0 Central Washington Health Services 910171250 3 1 99746922 0 2 134667264 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 X 1 1 Part IV, Section D, Line 3: The Health System shares the same board with the supported organizations and as such the board of the Healthsystem oversees all activities of the supported organizations including investment policies and use of the income and assets. Part IV, Section E, Lines 3a and 3b: The Health System is organized as a non-profit, tax exempt entity under Washington law. The Health System was created as a means to integrate its related hospitals, including Central Washington Hospital and Wenatchee Valley Hospital. The Health System is the sole member and manages all the organizations under a common governance structure consistent with the goals and objective of the parties. All the board members serve on all three boards. This entity provides all administrative and oversight functions by virtue of employing all management employees. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 164381 164381 0 Part II-B, Line 1: $91,781 was provided to Capitol Associates, Inc (CAI) who is a Washington-Based Bipartisan, Lobbying, Government Relations and Public Relations firm. The organization's work includes the preparation of congressional testimony and the planning and execution of briefings for members of congress and their staff. $72,600 was provided to Daniels-Brown Communications (DBC) who is a Washington-based media relations firm. The organization's work includes federal and state legislative advocacy services, crisis communications planning and management, political campaign consulting, and diplomatic relations with US and Foreign Embassies. 225088 225088 3966829 909224 3057605 18206331 13993429 4212902 39395079 23938021 15457058 22952653 Series 2020 Revenue Bond 23420908 C Investment in Health Alliance NW 6390819 C 29811727 Right of Use Assets 4908596 Intercompany Receivables 17039989 21948585 Due to Affiliates - WVMG 25130 Lease Liabilities 5147369 Overdrawn Cash 1993239 7165738 X Part X, Line 2: Confluence Health believes that it has appropriate support for any tax positions taken affecting its annual filing requirements, and as such, does not have any uncertain tax positions that are material to the consolidated financial statements. Confluence Health would recognize future accrued interest and penalties related to unrecognized tax benefits and liabilities in income tax expense if such interest and penalties are incurred. 1 Community Foundation of NCW 9 S Wenatchee Ave Wenatchee WA 98801 911349486 501(c)(3) 329978 0 General Support Wenatchee Valley YMCA 217 Orondo St Wenatchee WA 98801 910578224 501(c)(3) 100000 0 General Support Wenatchee Valley College 1300 Fifth St Wenatchee WA 98801 910817705 501(c)(3) 56000 0 General Support People for People 302 W Lincoln Ave Yakima WA 98802 910783225 501(c)(3) 42000 0 General Support 4 0 Breast, Cervical, and Colon Cancer Screening Program 1217 226646 HIV Prevention and Care Program 90 36277 Part I, Line 2: Outside organizations submit requests to the organization throughout the year. The requests are separated based on the monetary value requested. Each request requires support from the requesting organization as to the purpose/use of the funds and whether the request benefits the community. Two committees review the requests based on the monetary value of the request. X 1 1 X X 0 0 0 0 0 0 0 0 0 Peter Rutherford MD Chief Executive Officer (thru May) 539133 0 188010 0 0 0 19450 0 20741 0 767334 0 0 0 Thomas J Legel Chief Financial Officer 488864 0 139125 0 0 0 19450 0 27996 0 675435 0 0 0 Glenn W Adams Chief Operations Officer 447295 0 132945 0 0 0 19450 0 25086 0 624776 0 0 0 Jason M Lake MD Chief Medical Officer 513771 0 0 0 0 0 23800 0 25781 0 563352 0 0 0 Tracy A Kasnic CNO, Hospital Administrator 359671 0 102947 0 0 0 19450 0 16369 0 498437 0 0 0 Robert J Pagaler Chief Information Officer 348324 0 101603 0 0 0 19450 0 13493 0 482870 0 0 0 Kris Deyerle VP, General Counsel 336303 0 65691 0 0 0 19450 0 23096 0 444540 0 0 0 Andrew Jones MD Chief Executive Officer (as of July) 413828 0 75 0 0 0 0 0 11677 0 425580 0 0 0 Jay H Johnson VP, SR Network Strategy 306273 0 66862 0 0 0 19450 0 28026 0 420611 0 0 0 Thomas K Christensen VP of Human Resources 257775 0 45395 0 0 0 18261 0 3288 0 324719 0 0 0 Sarah Brown VP Risk & Regulatory 219035 0 43896 0 0 0 16922 0 27330 0 307183 0 0 0 JoEllen Colson VP, Ancillary Services 160958 0 139125 0 0 0 0 0 3014 0 303097 0 0 0 Joshua Wood VP Revenue Cycle 218487 0 38545 0 0 0 16016 0 27027 0 300075 0 0 0 Michael Sieg VP Strategy & Impact 212809 0 33792 0 0 0 16508 0 22469 0 285578 0 0 0 Eric Caldwell VP Finance 143660 0 75 0 25000 0 0 0 15877 0 184612 0 0 0 Part I, Line 1a Managers and above receive a $50 monthly stipend for a gym membership. Schedule J, Part II: Compensation of $640,227 was paid for Dr. Jason Lake by an unrelated third party, Wenatchee Valley Medical Group, LLC, for services performed for Confluence Health. A Washington Health Care Facilities Authority 911108929 000000000 2020-02-27 40000000 Construction/Remodel of healthcare facility; medical equipment 0 0 0 A 40000000 488031 39511969 2020 0 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 0 0 0 0 0 0 0 1 A 1 Ivy Murray Family Member of Director 114309 Employment 0 Malinda Garrison Family Member of Director 59914 Employment 0 Ashley Garrison Family Member of Director 132589 Employment 0 Carole Johnson Family Member of Director 62802 Employment 0 Saxton Sykes Family Member of Director 39331 Employment 0 Form 990, Part VI, Section A, line 1a Any committee, to the extent provided in the resolution of the Board, will have and may exercise any of the powers and authority of the Board, except that committees shall not have any power or authority as to the following: (i) electing, appointing, or removing any member of any such committee or any Board Member or officer of the Health System; (ii) amending, altering or repealing of the Bylaws; (iii) amending, altering or repealing of the articles of ncorporation; (iv) adopting a plan of merger or adopting a plan of consolidation with another corporation; (v) uthorizing the sale, lease, or exchange of all or substantially all of Confluence's or the Health System's property and assets not in the ordinary course of business; (vi) authorizing Confluence's or the Health System's voluntary dissolution or revoking proceedings therefor; (vii) adopting a plan for the distribution of Confluence's or the Health System's assets; (viii) amending, altering, or repealing any Board resolution which by its terms provides that it shall not be amended, altered, or repealed by such committee; (ix) the fixing of Board Members' compensation; or (x) action on matters committed by the Bylaws or by Board resolution to another Board committee. The standing committees of the Board of Directors (the "Standing Committees") shall include a Finance Committee, a Quality Enhancement and Safety Committee, an Audit and Enterprise Risk Management Committee, a Governance and Strategic Planning Committee, and a Human Capital and Compensation Committee having such powers and duties delegated by the Board that are not inconsistent with Section 3 hereof or any existing delegation of powers to a committee of Board Members. Standing Committees shall have at least one Clinic Member and one Community Member. Form 990, Part VI, Section A, line 2 Confluence Health and Affiliates share the same board as part of the operating structure. As such, all board members serve with each other in a similar capacity on related organizations. Additionally, some board members are minority owners in an entity that has a professional services agreement with Confluence Health. Form 990, Part VI, Section B, line 11b A copy of the Form 990 is reviewed by the Chief Financial Officer and Vice President of Finance. Subsequent to this review the Form 990 is reviewed by the governing board before being filed with the IRS. Form 990, Part VI, Section B, line 12c Board members, executive team members, and directors are required to review the current conflict of interest policy and complete an annual questionnaire. The nominating committee of the board reviews questionnaires of existing and new members for potential conflicts of interest. Any potential conflicts of interest are resolved by the nominating committee. The executive team reviews questionnaires submitted by the executive team members and directors for potential conflicts of interest. Potential conflicts of interest are resolved by the executive team in collaboration with the corporate compliance officer. Review of all conflict of interest statements is noted within the board minutes. Form 990, Part VI, Section B, line 15 The compensation committee of the governing board annually reviews independent salary survey information and recommends a salary and/or a salary increase for the CEO to the governing board. The other officers receive an annual percent increase which non-contractual employees receive unless the CEO awards a different percentage. The amount is, typically, based on current CPI, market and salary survey information. Form 990, Part VI, Section C, line 19 Confluence Health's governing documents, conflict of interest policy, and audited financial statements are available to the public upon request. Form 990, Part IX, line 11g Contract Labor: Program service expenses 259,087. Management and general expenses 0. Fundraising expenses 0. Total expenses 259,087. Professional Fees: Program service expenses 3,564,098. Management and general expenses 76,804. Fundraising expenses 0. Total expenses 3,640,902. Professional Fees - Managed Care: Program service expenses 136,505,842. Management and general expenses 0. Fundraising expenses 0. Total expenses 136,505,842. Professional Fees - PSA's: Program service expenses 0. Management and general expenses 113,157. Fundraising expenses 0. Total expenses 113,157. Professional Fees - ACO: Program service expenses 413,327. Management and general expenses 0. Fundraising expenses 0. Total expenses 413,327. Purchased Services: Program service expenses 9,730,917. Management and general expenses 1,019,073. Fundraising expenses 0. Total expenses 10,749,990. Form 990, Part XI, line 9: Adjustment due to financial statement restatement -3,949,433. Central Washington Health Services Association 1201 S Miller St Wenatchee WA 98801 910171250 Hospital WA 501(c)(3) Line 3 Confluence Health 1 Wenatchee Valley Hospital 820 N Chelan Ave Wenatchee WA 98801 455563741 Hospital WA 501(c)(3) Line 3 Confluence Health 1 0 0 0 0 0 0 0 1 0 0 0 1 0 1 1 0 1 0 0 Central Washington Health Services Association L 99746922 Cost Allocation Wenatchee Valley Hospital L 34920342 Cost Allocation