2022-11-10T12:34:33-06:00 2021-12-31 946214841 ARMANINO LLP 12657 ALCOSTA BLVD STE 500 SAN RAMON CA 945834600 990 2021-01-01 943093623 PURCHASER BUSINESS GROUP ON HEALTH PURC 4152818660 275 BATTERY STREET 480 SAN FRANCISCO CA 94111 DENNIS RIZZO CFO & COO 4152818660 2022-11-09 1 DENNIS RIZZO 999009999 MATTHEW PETROSKI P00853132 9257902600 2022-11-09 3 AAL1 IAL1 2021 2022-09-23 18:48:47Z DENNIS RIZZO 275 BATTERY STREET 480 SAN FRANCISCO CA 94111 9162601 0 X WWW.PBGH.ORG X 1990 CA TO IMPROVE THE QUALITY AND AVAILABILITY OF HEALTH CARE WHILE MODERATING COST. 10 10 36 91 0 0 7011659 5398822 2011568 2391750 154905 400346 659084 567033 9837216 8757951 0 0 0 0 6125653 6889730 0 0 126666 4551197 4947578 10676850 11837308 -839634 -3079357 11364484 9788968 2739524 3286738 8624960 6502230 X TO BE A CHANGE AGENT CREATING INCREASED VALUE IN THE HEALTHCARE SYSTEM THROUGH PURCHASER COLLABORATION, INNOVATION, AND ACTION, AND THROUGH THE SPREAD OF BEST PRACTICES. 0 0 2697358 REDESIGN CARE:PBGH WORKS SIDE-BY-SIDE WITH PHYSICIANS AND OTHER PRACTITIONERS TO: FOSTER INNOVATIVE IDEAS; REDESIGN HOW CARE IS DELIVERED; ALIGN PAYMENT WITH OPTIMAL CARE DESIGN; AND SUPPORT PROVIDERS TO DELIVER OPTIMAL CARE EXPERIENCE AND PRICE. PBGH PROGRAMS INCLUDE: ONES THAT PROVIDE CARE MANAGEMENT FOR HIGH-NEED-COST PATIENTS (THOSE WITH MULTIPLE SERIOUS CHRONIC CONDITIONS); AND PROGRAMS THAT SPREAD BEST PRACTICES FOR COMMON CARE EPISODES (E.G. MATERNITY); PROGRAMS THAT TRAIN PHYSICIANS HIGH-QUALITY, PATIENT-CENTERED CARE, PREVENT PATIENTS FROM RECEIVING DUPLICATE SERVICES, AND REDUCE UNNECESSARY VISITS TO HOSPITALS AND EMERGENCY ROOMS. THE PROGRAMS AIM TO ENGAGE PATIENTS IN THEIR OWN CARE AN APPROACH THAT ACCELERATES PATIENT RECOVERY. 1035972 429269 INFLUENCE POLICY:PBGH REPRESENTS ITS MEMBER ORGANIZATIONS WITH A STRONG, UNIFIED VOICE IN WASHINGTON BY TESTIFYING IN CONGRESS, COMMUNICATING WITH WHITE HOUSE AND AGENCY STAFF, SERVING ON KEY ADVISORY BODIES, AND PUBLISHING WIDELY THROUGH ISSUE BRIEFS, BLOG POSTINGS AND OP-EDS. PBGH ADVOCACY FOCUSES ON THE "VALUE AGENDA" OF HEALTH REFORM, INCLUDING PAYMENT REFORM AND ALIGNMENT, USE OF MEASURES TO SUPPORT VALUE-PAYMENT SYSTEMS, DATA TRANSPARENCY AND THE FOSTERING OF COMPETITIVE MARKETS. 2743451 1962481 ACCELERATE TRANSPARENCY:PBGH SUPPORTS CHANGES TO COMMERCIAL PAYMENT MODELS THAT MOVE INCREMENTALLY AWAY FROM FEE-FOR-SERVICE AND TOWARD PAYING FOR VALUE. THESE INCLUDE BUNDLED PAYMENTS FOR MATERNITY CARE, ORTHOPEDIC SURGERIES AND OTHER HIGH-COST AND FREQUENT PROCEDURES. PBGH IS ALSO WORKING TO IMPLEMENT INNOVATIVE PRIMARY CARE CONTRACTING AND QUALITY FOCUSED CONTRACTS WITH ACCOUNTABLE CARE ORGANIZATIONS. THESE PAYMENT MODELS SUPPORT ALIGNED BENEFIT DESIGN CHANGES, SUCH AS REFERENCE PRICING, TIERED NETWORKS AND CENTERS OF EXCELLENCE. AT THE SAME TIME, PBGH IS ENCOURAGING MEDICARE AND OTHER PUBLIC PROGRAMS TO IMPLEMENT ALIGNED PAYMENT METHODOLOGIES SO THAT PROVIDERS RECEIVE CONSISTENT FINANCIAL SIGNALS FROM BOTH PRIVATE AND PUBLIC PURCHASERS. 2757465 PURCHASER VALUE:PBGH PARTNERS WITH EMPLOYERS WHO PURCHASE HEALTH CARE FOR THEIR EMPLOYEES TO CREATE MEASUREABLE PROGRESS TOWARD A MORE EFFICIENT AND EFFECTIVE HEALTH CARE SYSTEM. PBGH SUPPORTS HEALTH CARE PURCHASERS AND MEMBERS, BY PROVIDING SERVICES INCLUDING: TECHNICAL ASSISTANCE, ACCESS TO NETWORKING OPPORTUNITIES AND PARTNERSHIPS. 2757465 9234246 1 1 0 1 0 0 0 0 0 0 1 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 84 0 1 36 1 0 0 0 0 0 0 0 0 0 0 0 0 X 10 10 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X DENNIS RIZZO 4152818660 275 BATTERY STREET 480 SAN FRANCISCO CA 94111 LISA WOODS CHAIR 1.00 X X 0 0 0 DOUG MCKEEVER SECRETARY 1.00 X X 0 0 0 JEFF WHITE TREASURER 1.00 X X 0 0 0 SUE BIRCH DIRECTOR 1.00 X 0 0 0 BILL DINGER DIRECTOR (LEFT 01/21) 1.00 X 0 0 0 ALDY DUFFIELD DIRECTOR 1.00 X 0 0 0 MILT EZZARD DIRECTOR (START 05/21) 1.00 X 0 0 0 ROB PACZKOWSKI DIRECTOR 1.00 X 0 0 0 MELISSA REAL DIRECTOR (START 05/21) 1.00 X 0 0 0 LESLIE SCHLAEGEL DIRECTOR (LEFT 06/21) 1.00 X 0 0 0 PASCALE THOMAS DIRECTOR (START 05/21) 1.00 X 0 0 0 JULEE WELLER DIRECTOR (START 05/21) 1.00 X 0 0 0 TERESA WOLOWNIK DIRECTOR (LEFT 02/21) 1.00 X 0 0 0 ELIZABETH MITCHELL PRESIDENT & CEO 40.00 3.00 X 742501 18400 49565 SUSAN AU CHIEF FINANCIAL OFFICER (LEFT 08/21) 40.00 X 197139 0 23777 MARYBETH SHARPE COO & DIR. OF STRATEGY 40.00 X 343631 0 59148 RACHEL BRODIE SENIOR DIR. MEASUREMENT AND ACCOUNTANT 40.00 X 233704 0 53298 EMMA HOO DIRECTOR, VALUE BASED PURCHASING 40.00 X 228408 0 35412 WILLIAM KRAMER EXECUTIVE DIRECTOR, HEALTH POLICY 40.00 X 136002 0 16108 LISA STEINHART-ZAMOSKY CHIEF COMMUNICATIONS OFFICER 40.00 X 242582 0 37711 CRYSTAL EUBANKS SENIOR DIRECTOR, CARE REDESIGN 40.00 X 224794 0 51162 2348761 18400 326181 22 0 1 0 CENTER FOR THE STUDY OF SERVICES 1625 K STREET NW 8TH FLOOR WASHINGTON DC 20006 SURVEY SERVICES 1194134 ROBERT HALF INTERNATIONAL INC PO BOX 743295 LOS ANGELES CA 90074 TEMPORARY STAFFING 166096 NEETEK SYSTEMS INTEGRATION INC 1700 MONTGOMERY ST STE 209 SAN FRANCISCO CA 94111 IT SUPPORT 165489 RAND CORPORATION PO BOX 2138 SANTA MONICA CA 90407 CONSULTING ON TESTING DATA ANALYSES 127100 4 1124500 2322749 1951573 5398822 HEALTH PLAN FEES 541610 1962481 1962481 CONTRACT REVENUE 541610 429269 429269 2391750 113267 113267 691729 404650 287079 287079 287079 OTHER INCOME 900099 567033 567033 567033 8757951 2391750 0 967379 X 1434161 1093299 317207 23655 4304833 3287770 944076 72987 240998 177868 58717 4413 587745 455869 122936 8940 321993 237418 80931 3644 352498 148668 203830 47301 36059 10462 780 3657851 3201186 452402 4263 20983 15066 5917 193680 130853 61432 1395 421905 301672 116411 3822 8173 3972 2560 1641 33210 31089 1101 1020 -2340 -3565 1225 58584 -631 59215 DUES & SUBSCRIPTIONS 150794 114103 36619 72 TAX & LICENSES 4006 2632 1340 34 MISCELLANEOUS 933 918 15 11837308 9234246 2476396 126666 3028822 2873335 2787788 1189888 69078 68814 346049 193569 211695 152480 5202150 5123752 64951 380699 11364484 9788968 1229805 2088097 1509719 1198641 2739524 3286738 X 4347444 3600196 4277516 2902034 8624960 6502230 11364484 9788968 -3079357 -77013 1033640 0 X X 0 1 X 1 1 1 X 11174957 8979151 15674995 7450754 5398822 48678679 11174957 8979151 15674995 7450754 5398822 48678679 7089745 41588934 240397 213008 179689 91967 113267 838328 101633 18265 42266 659084 567033 1388281 50905288 8888587 0.81700 0.82740 X PART II, LINE 1 COLUMNS (C) AND (D) PER THE AUDIT REPORT, THERE WAS A PRIOR PERIOD RESTATEMENT DUE TO ERRORS IN THE ORGANIZATION'S ACCOUNTING FOR CONTRIBUTION REVENUE. THERE WERE CONTRIBUTIONS THAT SHOULD HAVE BEEN RECOGNIZED IN YEARS 2019 AND 2020. TO ADJUST FOR THIS, $595,545 WAS ADDED TO SCHEDULE A, PART II, LINE 1 COLUMN (C) FOR 2019, AND $439,095 WAS ADDED TO SCHEDULE A, PART II, LINE 1 COLUMN (D) FOR 2020. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 6442 0 0 6442 0 PART II-B, LINE 1: CEO AND POLICY TEAM SPENT MOSTLY HALF HOUR MEETINGS WITH VARIOUS FEDERAL AND STATE LEGISLATORS IN 2021 TO DISCUSS CA AB1130, LOWER HEALTH CARE COSTS ACT, DRUG PRICE LIMITS, CA OFFICE OF HEALTH CARE AFFORDABILITY, COST CONTAINMENT, AND OTHER PBGH PRIORITIES. 311002 180527 130475 35047 13042 22005 152480 X 8680938 -77013 -77013 8757951 0 8757951 11837308 0 11837308 0 11837308 PART X, LINE 2: PACIFIC BUSINESS GROUP ON HEALTH HAS BEEN GRANTED TAX-EXEMPT STATUS UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND UNDER SECTION 23701D OF THE CALIFORNIA FRANCHISE TAX BOARD. THE NEGOTIATING ALLIANCE IS A CALIFORNIA NONPROFIT MUTUAL BENEFIT CORPORATION THAT IS SUBJECT TO FEDERAL INCOME AND STATE FRANCHISE TAXES, HOWEVER, NEGOTIATING ALLIANCE ACTIVITIES ARE NOT SIGNIFICANT TO THE CONSOLIDATED FINANCIAL STATEMENTS. ACCORDINGLY, SINCE THE PRIMARY OPERATIONS OF PBGH ARE IN MANAGEMENT'S JUDGMENT EXEMPT FROM FEDERAL INCOME AND STATE FRANCHISE TAXES, NO PROVISION FOR INCOME TAXES HAS BEEN REFLECTED IN THESE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020. PBGH HAS EVALUATED CURRENT TAX POSITIONS AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2021 AND 2020, PBGH DOES NOT HAVE ANY UNCERTAIN TAX POSITIONS FOR WHICH A RESERVE WOULD BE NECESSARY. PBGH FILES U.S. FEDERAL, AND U.S. STATE RETURNS AS APPLICABLE. X 1 1 X X X X 0 0 1 0 0 0 0 1 0 ELIZABETH MITCHELL PRESIDENT & CEO 570901 0 171600 0 0 18400 31342 0 18223 0 792066 18400 0 0 MARYBETH SHARPE COO & DIR. OF STRATEGY 293151 0 50000 0 480 0 32097 0 27051 0 402779 0 0 0 RACHEL BRODIE SENIOR DIR. MEASUREMENT AND ACCOUNTA 233224 0 0 0 480 0 26308 0 26990 0 287002 0 0 0 LISA STEINHART-ZAMOSKY CHIEF COMMUNICATIONS OFFICER 242102 0 0 0 480 0 21419 0 16292 0 280293 0 0 0 CRYSTAL EUBANKS SENIOR DIRECTOR, CARE REDESIGN 224314 0 0 0 480 0 24321 0 26841 0 275956 0 0 0 EMMA HOO DIRECTOR, VALUE BASED PURCHASING 227928 0 0 0 480 0 25262 0 10150 0 263820 0 0 0 SUSAN AU CHIEF FINANCIAL OFFICER (LEFT 08/21) 177139 0 20000 0 0 0 16868 0 6909 0 220916 0 0 0 WILLIAM KRAMER EXECUTIVE DIRECTOR, HEALTH POLICY 133864 0 1658 0 480 0 15709 0 399 0 152110 0 0 0 PART I, LINE 1A PROVIDED UP TO $40.00 PER MONTH PER EMPLOYEE FOR REIMBURSEMENT OF HEALTH CLUB COSTS. THE REIMBURSEMENT OF HEALTH CLUB COSTS HAS BEEN INCLUDED IN THE EMPLOYEES' TAXABLE WAGES. PART I, LINE 4C ELIZABETH MITCHELL, PRESIDENT AND CEO WAS AWARDED STOCK IN EMSANA INC'S STOCK (A RELATED CORPORATION) IN THE AMOUNT OF $18,400. THIS AMOUNT IS REPORTED IN SCHEDULE J, PART II, COLUMN (B)(III) OTHER TAXABLE INCOME. PART I, LINE 7 THE POTENTIAL AND CRITERIA FOR COMPENSATION CHANGES AND BONUSES FOR OFFICERS ARE PRE-DETERMINED PERCENT AMOUNTS BASED UPON PERFORMANCE ON 8 ORGANIZATION-WIDE OBJECTIVE, 5-7 INDIVIDUAL OBJECTIVES, AND COMPETENCY ASSESSMENTS. THE PRESIDENT & CEO'S COMPENSATION IS DETERMINED BY THE BOARD OF DIRECTORS COMPENSATION COMMITTEE AND INCLUDES COMPARABILITY DATA FROM OTHER ORGANIZATIONS. COMPENSATION/BONUS IS NOT A PERCENTAGE OF NET INCOME OR REVENUE, BUT ARE DETERMINED THROUGH A PERIODIC COMPENSATION REVIEW OF PRESIDENT & CEO COMPENSATION BY AN EXTERNAL FIRM AND PERIODIC REVIEW OF EXTERNAL BENCHMARKING DATA. COMPENSATION DETERMINATIONS ARE CONTEMPORANEOUSLY DOCUMENTED IN WRITING. PBGH DIRECTORS ARE NOT COMPENSATED. FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION'S BYLAWS WERE UPDATED ON APRIL 2021. THE ROLE VICE-CHAIR/CHAIR-ELECT BOARD OFFICER WAS DELETED. FORM 990, PART VI, SECTION B, LINE 11B INITIALLY REVIEWED BY THE PRESIDENT, CEO, COO & DIRECTOR OF FINANCE. SUBSEQUENTLY REVIEWED BY THE AUDIT COMMITTEE, ACTING ON BEHALF OF THE BOARD. FOLLOWING THESE REVIEWS AND PRIOR TO FILING THE RETURN WITH THE INTERNAL REVENUE SERVICE, COPIES OF THE FORM 990 WILL BE EMAILED TO ALL BOARD MEMBERS. FORM 990, PART VI, SECTION B, LINE 12C THE POLICY COVERS BOARD MEMBERS, OFFICERS, AND KEY EMPLOYEES WHO ARE REQUIRED TO ANNUALLY DISCLOSE ANY POTENTIAL CONFLICTS. DISCLOSURES ARE COLLECTED AND REVIEWED BY THE DIRECTOR OF FINANCE WHO REPORTS TO THE COO ON ANY POTENTIAL CONFLICTS. THE BOARD OF DIRECTORS DECIDES IF ANY ADDITIONAL ACTION IS NECESSARY SUCH AS RECUSAL OR REMOVAL OF THE CONFLICTED INDIVIDUAL. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION, COMPENSATION INCREASES, AND INCENTIVE PAYMENTS FOR THE PRESIDENT & CEO ARE BASED UPON A PERFORMANCE REVIEW CONDUCTED BY THE COMPENSATION COMMITTEE OF THE BOARD. THE COMPENSATION DETERMINATIONS ARE BASED UPON INDUSTRY-SPECIFIC BENCHMARK STUDIES CONDUCTED BY HUMAN RESOURCES PERIODICALLY AND INCLUDES COMPARABILITY DATA FROM OTHER ORGANIZATIONS. COMPENSATION DETERMINATIONS FOR THE PRESIDENT & CEO ARE CONTEMPORANEOUSLY DOCUMENTED IN WRITING. COMPENSATION FOR OFFICERS AND KEY EMPLOYEES IS BASED UPON INDUSTRY-SPECIFIC BENCHMARK STUDIES CONDUCTED BY HUMAN RESOURCES PERIODICALLY AND INCLUDES COMPARABILITY DATA FROM OTHER ORGANIZATIONS. THE BENCHMARK STUDIES ARE THEN PROVIDED TO THE COMPENSATION COMMITTEE TO ASSESS PRESIDENT & CEO COMPENSATION. THE PRESIDENT & CEO ALSO RECEIVES COPIES OF THE BENCHMARK STUDIES TO ASSESS COMPENSATION FOR KEY EMPLOYEES. COMPENSATION DETERMINATIONS FOR OFFICERS AND KEY EMPLOYEES ARE CONTEMPORANEOUSLY DOCUMENTED IN WRITING. FORM 990, PART VI, SECTION C, LINE 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND FINANCIAL STATEMENTS ARE ALL AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CONSULTANTS: PROGRAM SERVICE EXPENSES 3,201,186. MANAGEMENT AND GENERAL EXPENSES 452,402. FUNDRAISING EXPENSES 4,263. TOTAL EXPENSES 3,657,851. FORM 990, PART XII, LINE 2 & PART IV, LINE 12 ALTHOUGH THE ORGANIZATION'S AUDITED FINANCIAL STATEMENTS WERE PREPARED ON A CONSOLIDATED BASIS, SUPPLEMENTAL SCHEDULES WERE PREPARED AS PART OF THE AUDIT THAT PROVIDED SEPARATE FINANCIAL INFORMATION FOR THIS ORGANIZATION. THE FINANCIAL INFORMATION FROM THE SEPARATELY PREPARED SUPPLEMENTAL SCHEDULES HAS BEEN USED TO PREPARED PARTS XI, XII AND XIII OF SCHEDULE D. FORM 990, PART XII, LINE 2C THIS PROCESS HAS NOT CHANGED FROM THE PRIOR YEAR. FORM 990, PART XI, LINE 8 PER THE AUDIT REPORT, THE ORGANIZATION IDENTIFIED ERRORS IN THE ACCOUNTING FOR CONTRIBUTION REVENUE. PBGH RECEIVED UNCONDITIONAL DONOR-RESTRICTED CONTRIBUTIONS DURING 2019 AND 2020 THAT SHOULD HAVE BEEN RECOGNIZED AS REVENUES IN EACH RESPECTIVE YEAR. THE FINANCIAL STATEMENTS HAVE BEEN RESTATED FOR THE YEAR ENDED DECEMBER 31, 2020 TO CORRECT THE ERRORS. A PRIOR PERIOD ADJUSTMENT OF $1,033,640 HAS BEEN INCLUDED ON FORM 990, PART XI, LINE 8 TO ACCOUNT FOR THE ADJUSTMENTS MADE. THE PURCHASER BUSINESS GROUP ON HEALTH NEGOTIATING ALLIANCE 275 BATTERY STREET SUITE 480 SAN FRANCISCO CA 94111 943219430 HEALTHCARE IMPROVEMENT - NEGOTIATE LOWER HEALTHCARE COSTS CA PURCHASER BUSINESS GROUP ON HEALTH C 99255 196847 1.00000 1 EMSANA HEALTH INC 275 BATTERY STREET SUITE 480 SAN FRANCISCO CA 94111 861602754 PURCHASING SERVICES SPECIALIZING IN HEALTHCARE AND PHARMACY PRODUCTS CA PURCHASER BUSINESS GROUP ON HEALTH C -480348 1206571 0.56000 1 EMSANACARE INC 275 BATTERY STREET SUITE 480 SAN FRANCISCO CA 94111 862544683 PURCHASING SERVICES SPECIALIZING IN LEADING PROVIDERS TO IMPROVE HEALTH OUTC CA PURCHASER BUSINESS GROUP ON HEALTH C -27013 217823 0.50400 1 EMSANARX INC 275 BATTERY STREET SUITE 480 SAN FRANCISCO CA 94111 862807587 PURCHASING SERVICES SPECIALIZING TO IMPROVE HEALTH CARE OUTCOMES CA PURCHASER BUSINESS GROUP ON HEALTH C -456175 706294 0.50400 1 0 0 0 1 0 0 0 0 0 0 0 1 0 1 1 1 1 0 0 THE PURCHASER BUSINESS GROUP ON HEALTH NEGOTIATING ALLIANCE Q 97223 FMV EMSANA HEALTH INC P 1004288 FMV EMSANA HEALTH INC D 283442 FMV EMSANACARE INC Q 53597 FMV EMSANARX INC Q 569316 FMV