2021-10-29T12:18:23-05:00 2020-12-31 910189318 MOSS ADAMS LLP 2707 COLBY AVENUE SUITE 801 EVERETT WA 98201 990 2020-01-01 454789950 CONFLUENCE HEALTH CONF 5096621511 1201 SOUTH MILLER STREET WENATCHEE WA 98801 PETER D RUTHERFORD MD CHIEF EXECUTIVE OFFICER 5096621511 2021-10-19 1 PETER RUTHERFORD MD 999009999 ROBERT GRANNUM P00355876 4252597227 2021-10-19 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z PETER D RUTHERFORD MD 1201 SOUTH MILLER STREET WENATCHEE WA 98801 241312796 0 X WWW.CONFLUENCEHEALTH.ORG X 2012 WA IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 15 15 1034 2 0 0 1211165 930453 221817649 240103196 170951 220149 -649257 -23420 222550508 241230378 829221 481234 0 0 68476123 69545202 0 0 0 151419409 154803866 220724753 224830302 1825755 16400076 54431988 82309157 52151090 63634917 2280898 18674240 X IMPROVING HEALTH BY PROVIDING HIGH-QUALITY CARE IN A COMPASSIONATE AND COST-EFFECTIVE MANNER. 0 1 183488795 481234 240103196 CONFLUENCE HEALTH PROVIDES THE ADMINISTRATIVE AND SHARED FUNCTIONS FOR THE HEALTH SYSTEM. IN ADDITION, THE PURPOSES OF THE SYSTEM ARE 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;D. 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. 183488795 1 1 0 1 0 0 0 0 0 0 1 0 0 1 0 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 53 0 1 1034 1 0 0 0 0 0 0 0 0 0 0 0 0 X 15 15 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X TOM LEGEL 5096621511 1201 SOUTH MILLER STREET WENATCHEE WA 98801 ABE SOROM MD SECRETARY 2.00 2.00 X X 9600 0 0 GUS HEINICKE TREASURER 2.00 2.00 X X 7200 0 0 PATRICIA WACHTEL CHAIR 2.00 2.00 X X 7200 0 0 DOUG SHAE VICE CHAIR 2.00 2.00 X X 3600 0 0 GAUTAM NAYAK MD BOARD OF DIRECTORS 1.00 2.00 X 9600 0 0 JAMES MURRAY MD BOARD OF DIRECTORS 1.00 2.00 X 9600 0 0 DAN BROWN MD BOARD OF DIRECTORS (FROM 02/20) 1.00 2.00 X 9600 0 0 CATHERINE RIDGEWAY MD BOARD OF DIRECTORS (FROM 02/20) 1.00 2.00 X 9600 0 0 MITCHELL GARRISON MD BOARD OF DIRECTORS 1.00 2.00 X 7200 0 0 GARN CHRISTENSEN BOARD OF DIRECTORS 1.00 2.00 X 7200 0 0 JENNY CRAVENS BOARD OF DIRECTORS 1.00 2.00 X 7200 0 0 ROBERT TRASK JR BOARD OF DIRECTORS 1.00 2.00 X 7200 0 0 SCOTT DUNCAN BOARD OF DIRECTORS 1.00 2.00 X 7200 0 0 VICKY SCHARLAU BOARD OF DIRECTORS (FROM 02/20) 1.00 2.00 X 6600 0 0 KRISTINE LOOMIS BOARD OF DIRECTORS (THRU 06/20) 1.00 2.00 X 3600 0 0 CORI BAUTISTA BOARD OF DIRECTORS (FROM 08/20) 1.00 2.00 X 3000 0 0 TOBY BOND MD BOARD OF DIRECTORS (THRU 01/20) 1.00 2.00 X 0 0 0 DOUG WILSON MD BOARD OF DIRECTORS (THRU 01/20) 1.00 2.00 X 0 0 0 PETER RUTHERFORD CHIEF EXECUTIVE OFFICER 20.00 30.00 X 635691 0 39616 JASON M LAKE MD CHIEF MEDICAL OFFICER - WVMG 20.00 30.00 X 562099 0 46620 GLENN W ADAMS CHIEF OPEARTING OFFICER 20.00 30.00 X 394770 0 45622 STUART D FREED MD MED DIR PHY LDRSHIP DEVLP 20.00 30.00 X 398380 0 27527 CORY M FERARI-ZIMMERMAN INTERIM CFO (THRU 03/20) 20.00 30.00 X 365035 0 39283 ROBERT J PAGELER CHIEF INFORMATION OFFICER 20.00 30.00 X 360268 0 29804 THOMAS J LEGEL CHIEF FINANCIAL OFFICER (FROM 03/20) 20.00 30.00 X 348655 0 16071 JOHN R DOYLE CHIEF FINANCIAL OFFICER (THRU 05/20) 20.00 30.00 X 127365 0 5095 JEANINE M ALLEN SR VP CWH OUTPT SVCS (THRU 06/20) 20.00 30.00 X 378255 0 38793 TRACEY A KASNIC CNO, HOSPITAL ADMIN - CWH 20.00 30.00 X 379422 0 33108 SARAH A BATTIS JOHNSON SR VP QUAL CARE TRNSFRMTN 20.00 30.00 X 248367 0 27227 JOELLEN COLSON SR VP ANCILLARY SERVICES 20.00 30.00 X 257213 0 15767 JAY H JOHNSON SR VP NETWORK STRATEGY 20.00 30.00 X 243782 0 27559 STACI JONES SR VP SPECIALTY CARE 20.00 30.00 X 173063 0 31037 VIKKI L NOYES HOSPITAL ADMIN - CWH (THRU 7/20) 20.00 30.00 X 457004 0 34654 STEVEN R JACOBS VP FINANCE 20.00 30.00 X 314089 0 7740 KRIS A DEYERLE VP GENERAL COUNSEL 20.00 30.00 X 273832 0 33925 SARAH C BROWN VP RISK & REGULATORY 20.00 30.00 X 220157 0 35077 THOMAS K CHRISTENSEN VP HUMAN RESOURCES 20.00 30.00 X 199759 0 13603 JAMES B WOOD FORMER CHIEF ADMIN OFFICER 0.00 X 529269 0 0 FARAZ S AHMED FORMER VP SR PRIMARY CARE 0.00 X 216297 0 0 7197972 0 548128 70 1 1 1 MEDEFIS PO BOX 5066 NEW YORK NY 10087 TRAVELING NURSE SERVICES 4623560 EPIC HOSTING LLC BIN 88056 MILWAUKEE WI 53288 BILLING SYSTEM SERVICES 4583608 EPIC SYSTEMS CORPORATION BIN 88056 MILWAUKEE WI 53288 BILLING SYSTEM SERVICES 3344257 COMPUNET INC LB 410802 PO BOX 35143 SEATTLE WA 98124 MAINTENANCE SERVICES 792947 HEALTHCARE RESOURCE GROUP INC 12610 E MIRABEAU PKWY STE 800 SPOKANE VALLEY WA 99216 CONSULTING SERVICES 749614 30 807247 123206 930453 MANAGEMENT SERVICES 541610 120641534 120641534 MANAGED CARE 541610 116407704 116407704 OTHER OPERATING INCOME 900099 3053958 3053958 240103196 220149 220149 58998 82418 -23420 -23420 -23420 241230378 240103196 0 196729 370861 370861 110373 110373 5410693 4328554 1082139 745566 596453 149113 46197644 36958116 9239528 2488204 1990563 497641 10679984 8543987 2135997 4023111 3218489 804622 498794 498794 679919 679919 3751790 3001432 750358 822888 658310 164578 4847756 3878205 969551 13124317 10499454 2624863 2981421 2683279 298142 201227 160982 40245 555425 555425 5884464 5296018 588446 1029385 1029385 MANAGED CARE CLAIM EXPE 110843929 97647198 13196731 LEGAL SETTLEMENT 6591455 6591455 TAXES AND LICENSES 2433656 2433656 BAD DEBT EXPENSE 557440 557440 224830302 183488795 41341507 0 6451341 12564122 507921 18946007 0 194 5248119 4631797 60396341 28736537 34955727 31659804 0 20194 7268880 14487039 54431988 82309157 37956585 29848503 0 16880000 14194505 16906414 52151090 63634917 X 2280898 18674240 2280898 18674240 54431988 82309157 X 16400076 423156 -429890 X X 0 1 X 1 1 0 X X X 2 WENATCHEE VALLEY HOSPITAL 455563741 3 1 31827501 0 CENTRAL WASHINGTON HEALTH SERVICES 910171250 3 1 88814033 0 2 120641534 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 0 X 1 1 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 IS A MEANS TO INTEGRATE ITS RELATED HOSPITALS, INCLUDING CENTRAL WASHINGTON HOSPITAL AND WENATCHEE VALLEY HOSPITAL, THAT A BOARD OF DIRECTORS OF THE HEALTH SYSTEM HAVE AUTHORIZED TO BE INCORPORATED, OF WHICH THE HEALTH SYSTEM SHALL BE A SOLE MEMBER AND MANAGED ORGANIZATIONS UNDER A COMMON GOVERNANCE STRUCTURE CONSISTENT WITH THE GOALS AND OBJECTIVE OF THE PARTIES. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 176469 176469 0 PART II-B, LINE 1: $109,848 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. $66,621 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 U.S. AND FOREIGN EMBASSIES. 225088 225088 2230689 505957 1724732 16447890 11777849 4670041 41492674 16452731 25039943 31659804 INVESTMENT IN HEALTH ALLIANCE NW 2666747 INVESTMENT IN GX GREENHEALTH EXCHANGE 150000 HEALTH ALLIANCE NW NOTE RECEIVABLE 5095289 UNAMORTIZED BOND COST 149295 RIGHT OF USE ASSETS 6425708 14487039 X PART X, LINE 2: THE HEALTH SYSTEM IS FORMED AS THREE SEPARATE NOT-FOR-PROFIT CORPORATIONS, WHICH HAVE BEEN RECOGNIZED AS TAX-EXEMPT PURSUANT TO SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THE HEALTH SYSTEM IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE EXCEPT TO THE EXTENT OF UNRELATED BUSINESS TAXABLE INCOME AS DEFINED UNDER IRC SECTIONS 511 THROUGH 515. ANY UNRELATED BUSINESS INCOME GENERATED IS NOT SIGNIFICANT; THEREFORE, NO PROVISION FOR INCOME TAXES HAS BEEN RECORDED. THE HEALTH SYSTEM HAS ADOPTED ACCOUNTING FOR UNCERTAIN TAX POSITIONS. THE ACCOUNTING STANDARD PRESCRIBES A RECOGNITION THRESHOLD AND MEASUREMENT PROCESS FOR UNCERTAIN TAX POSITIONS. AS OF DECEMBER 31, 2020 AND 2019, THE HEALTH SYSTEM HAD NO UNCERTAIN TAX POSITIONS REQUIRING ACCRUAL. 1 CHELAN-DOUGLAS LAND TRUST 18 N WENATCHEE AVE WENATCHEE WA 98801 911331348 501(C)(3) 12000 GENERAL SUPPORT COMMUNITY FOUNDATION OF NORTH CENTRAL WASHINGTON 9 S WENATCHEE AVE WENATCHEE WA 98801 911349486 501(C)(3) 110944 GENERAL SUPPORT EASTMONT PARKS AND RECREATION 255 N GEORGIA AVE EAST WENATCHEE WA 98802 CITY OF E. WEN 20000 GENERAL SUPPORT GARDEN TERRACE 500 N EMERSON AVE WENATCHEE WA 98801 916087782 501(C)(3) 12000 GENERAL SUPPORT GWATA 114 N WENATCHEE AVE SUITE 114 WENATCHEE WA 98801 912112603 501(C)(3) 15000 GENERAL SUPPORT KITTITAS INTERACTIVE MANAGEMENT 119 W 5TH AVE 204 ELLENSBURG WA 98926 911985091 501(C)(3) 53750 GENERAL SUPPORT MOSES LAKE BUSINESS ASSOCIATION 124 E 3RD AVE 212 MOSES LAKE WA 98837 911606986 501(C)(6) 25000 GENERAL SUPPORT PEOPLE FOR PEOPLE 302 LINCOLN WAY YAKIMA WA 98902 910783225 501(C)(3) 36000 GENERAL SUPPORT RELAY FOR LIFE AMERICAN CANCER SOCIETY 250 WILLIAM ST NW ATLANTA GA 30303 131788491 501(C)(3) 7500 GENERAL SUPPORT UNITED WAY 105 S MISSION ST WENATCHEE WA 98801 910657766 501(C)(3) 6667 GENERAL SUPPORT UNIVERSITY OF WASHINGTON 1400 NE CAMPUS PARKWAY SEATTLE WA 981954550 916001537 501(C)(3) 9000 GENERAL SUPPORT WASHINGTON STATE UNIVERSITY PO BOX 641067 PULLMAN WA 99164 916001108 501(C)(3) 6000 GENERAL SUPPORT WELLNESS PLACE 609 OKANOGAN AVE WENATCHEE WA 98801 911891688 501(C)(3) 20000 GENERAL SUPPORT WENATCHEE DOWNTOWN ASSOCIATION 103 PALOUSE ST SUITE 35 WENATCHEE WA 98801 910823589 501(C)(3) 7500 GENERAL SUPPORT WENATCHEE VALLEY COLLEGE FOUNDATION 1300 FIFTH ST WENATCHEE WA 98801 237319272 501(C)(3) 7000 GENERAL SUPPORT YMCA 217 ORONDO ST WENATCHEE WA 98801 910578224 501(C)(3) 7500 GENERAL SUPPORT CONFLUENCE HEALTH FOUNDATION 518 N CHELAN AVE WENATCHEE WA 98801 911075950 501(C)(3) 8699 GENERAL SUPPORT 16 1 HIV PREVENTION AND CARE PROGRAM 80 102234 PALLIATIVE CARE - HONORING CHOICES 654 8139 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 X X 1 0 0 0 0 1 1 0 0 PETER RUTHERFORD CHIEF EXECUTIVE OFFICER 549507 0 62080 0 24104 0 20990 0 18626 0 675307 0 0 0 JASON M LAKE MD CHIEF MEDICAL OFFICER - WVMG 538091 0 24008 0 0 0 22018 0 24602 0 608719 0 0 0 GLENN W ADAMS CHIEF OPEARTING OFFICER 356739 0 29762 0 8269 0 18935 0 26687 0 440392 0 0 0 STUART D FREED MD MED DIR PHY LDRSHIP DEVLP 349556 0 48824 0 0 0 12870 0 14657 0 425907 0 0 0 CORY M FERARI-ZIMMERMAN INTERIM CFO (THRU 03/20) 253081 0 111954 0 0 0 16096 0 23187 0 404318 0 0 0 ROBERT J PAGELER CHIEF INFORMATION OFFICER 328787 0 31481 0 0 0 16880 0 12924 0 390072 0 0 0 THOMAS J LEGEL CHIEF FINANCIAL OFFICER (FROM 03/20) 348578 0 77 0 0 0 0 0 16071 0 364726 0 0 0 JEANINE M ALLEN SR VP CWH OUTPT SVCS (THRU 06/20) 332854 0 32668 0 12733 0 20990 0 17803 0 417048 0 0 0 TRACEY A KASNIC CNO, HOSPITAL ADMIN - CWH 334721 0 31896 0 12805 0 20990 0 12118 0 412530 0 0 0 SARAH A BATTIS JOHNSON SR VP QUAL CARE TRNSFRMTN 217866 0 15068 0 15433 0 15109 0 12118 0 275594 0 0 0 JOELLEN COLSON SR VP ANCILLARY SERVICES 229373 0 21848 0 5992 0 15767 0 0 0 272980 0 0 0 JAY H JOHNSON SR VP NETWORK STRATEGY 218340 0 21193 0 4249 0 15441 0 12118 0 271341 0 0 0 STACI JONES SR VP SPECIALTY CARE 114861 0 22994 0 35208 0 15077 0 15960 0 204100 0 0 0 VIKKI L NOYES HOSPITAL ADMIN - CWH (THRU 7/20) 396773 0 41147 0 19084 0 16880 0 17774 0 491658 0 0 0 STEVEN R JACOBS VP FINANCE 280874 0 33215 0 0 0 7740 0 0 0 321829 0 0 0 KRIS A DEYERLE VP GENERAL COUNSEL 261222 0 12610 0 0 0 16122 0 17803 0 307757 0 0 0 SARAH C BROWN VP RISK & REGULATORY 205823 0 10243 0 4091 0 13085 0 21992 0 255234 0 0 0 THOMAS K CHRISTENSEN VP HUMAN RESOURCES 190827 0 3712 0 5220 0 13060 0 543 0 213362 0 0 0 JAMES B WOOD FORMER CHIEF ADMIN OFFICER 0 0 0 0 529269 0 0 0 0 0 529269 0 0 0 FARAZ S AHMED FORMER VP SR PRIMARY CARE 0 0 0 0 216297 0 0 0 0 0 216297 0 0 0 PART I, LINE 4A SEVERANCE PAYMENT TO FARAZ S. AHMED: $216,297 SEVERANCE PAYMENT TO JAMES B. WOOD: $529,269 SEVERANCE PAYMENT TO VICKI L. NOYES: $161,239 PART I, LINE 6 EVERY PAY PERIOD, THE EMPLOYER CONTRIBUTES THE MATCH PERCENTAGE PER THE PLAN DOCUMENT INTO THE EMPLOYEES' RETIREMENT ACCOUNT. ANNUALLY, THE BOARD DETERMINES BASED ON FINANCIAL RESULTS IF AN ADDITIONAL (OR DISCRETIONARY) AMOUNT WILL BE CONTRIBUTED TO THE EMPLOYEES' ACCOUNTS. THE PERCENTAGE IS BASED ON EMPLOYEE CLASSIFICATION AND LENGTH OF SERVICE. THE DECISION IS BASED ON MEETING ORGANIZATIONAL GOALS, AND ONE OF THOSE GOALS IS THE COMBINED OPERATING MARGIN OF THE THREE CONFLUENCE HEALTH SYSTEM ORGANIZATIONS: CONFLUENCE HEALTH, CENTRAL WASHINGTON HEALTH SERVICES ASSOCIATION, AND WENATCHEE VALLEY HOSPITAL. PART II: COMPENSATION FOR DR. STUART FREED AND DR. JASON LAKE IS REVIEWED, APPROVED, AND PAID BY AN UNRELATED THIRD PARTY, WENATCHEE VALLEY MEDICAL GROUP, FOR SERVICES PERFORMED FOR CONFLUENCE HEALTH. COMPENSATION PAID TO DR. STUART FREED IN 2020 WAS $425,907. COMPENSATION PAID TO DR. JASON LAKE IN 2020 WAS $608,719. A WASHINGTON HEALTH CARE FACILITIES AUTHORITY 911108929 2020-02-27 40000000 CONSTRUCTION/REMODEL OF HEALTHCARE FACILITY; MEDICAL EQUIPMENT 0 0 0 A 40000000 488031 39511969 2020 0 0 0 1 A 0 0 0 0 0 0 1 A 0 1 0 0 0 0 0 0 1 A 1 DUSTIN ALLEN FAMILY MEMBER OF KEY EMPLOYEE 60901 EMPLOYMENT 0 FORM 990, PART III, LINE 3 THE COVID-19 PANDEMIC HAS HAD A SIGNIFICANT IMPACT ON RESULTS FOR THE YEAR ENDED DECEMBER 31, 2020. THE ORGANIZATION RECEIVED THE FIRST POSITIVE TEST RESULT ON MARCH 1, 2020. EFFECTIVE MARCH 17, 2020 THE ORGANIZATION BEGAN POSTPONING ALL ELECTIVE SURGERIES AND PROCEDURES BASED ON GUIDANCE FROM THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC) AND THE STATE OF WASHINGTON DUE TO THE EMERGENCE OF COVID-19 WITHIN WASHINGTON STATE. THE STATE OF WASHINGTON ALSO PUT IN PLACE SOCIAL DISTANCING GUIDELINES AND A STATEWIDE STAY-AT-HOME ORDER ON MARCH 23, 2020; HOWEVER, THE ORGANIZATION IMPLEMENTED A WORK-FROM-HOME STRATEGY FOR OUR STAFF DURING MARCH 2020. ELECTIVE SURGERIES AND PROCEDURES RESUMED ON APPROXIMATELY MAY 18, 2020. AS THE COVID-19 PANDEMIC CONTINUES, THE ORGANIZATION HAS IMPLEMENTED COST CONTAINMENT STRATEGIES AND CONTINUES TO EXPLORE OPPORTUNITIES FOR COST CONTAINMENT. THE ORGANIZATION APPLIED FOR, AND RECEIVED, IN AVAILABLE GOVERNMENT ASSISTANCE THROUGH VARIOUS COMPONENTS OF THE CORONAVIRUS AID, RELIEF AND ECONOMIC SECURITY (CARES) ACT AND HAS SUBMITTED A PRELIMINARY REQUEST THROUGH THE FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA). COST CONTAINMENT STRATEGIES INCLUDED PARTICIPATING IN THE STATE OF WASHINGTON'S SHARED WORK PROGRAM, STRICT MANAGEMENT OF CONSULTING AND OTHER FORMS OF DISCRETIONARY SPENDING, RESTRICTIONS ON TRAVEL, RESTRICTING CAPITAL SPENDING FOR ONLY CRITICAL PROJECTS, FLEXING STAFFING LEVELS TO VOLUMES (IN ADDITION TO THE SHARED WORK PROGRAM) AND ENCOURAGING EMPLOYEES TO USE PAID TIME OFF. THE ORGANIZATION HAS RECEIVED, AS OF DECEMBER 31, 2020, $35,639,288 IN CARES ACT FUNDS AND AN ADDITIONAL $72,223,930 IN MEDICARE ADVANCE PAYMENTS. NO RESERVE HAS BEEN PLACED ON THE CARES ACT FUNDS WHILE THE MEDICARE ADVANCE PAYMENTS ARE RECORDED AS DEFERRED REVENUE. FINAL DETERMINATION OF NECESSARY RESERVES WERE MADE PRIOR TO THE FISCAL YEAR END YET MANAGEMENT BELIEVES ALL MONIES RECEIVED WILL ULTIMATELY BE SUPPORTED AND EARNED; GIVEN THE EVOLVING NATURE OF CARES ACT REQUIREMENTS. THE ORGANIZATION CONTINUES TO MONITOR AND ASSESS OTHER COVID-19 SUPPORT FUNDING OPPORTUNITIES AS THEY BECOME AVAILABLE. WITH VOLUMES RISING CLOSER TO NORMAL LEVELS TOWARDS YEAR END, FINANCIAL PROJECTIONS FOR THE LATTER HALF OF 2020 STABILIZED AND SHOWED BETTER THAN BREAK EVEN PERFORMANCE. WHILE THE VOLATILITY THAT SUBSEQUENT SURGES OF COVID-19, OR THE FLU SEASON, CANNOT BE KNOWN, IF THE PANDEMIC LEVELS REMAIN STABLE OR IMPROVE THE ORGANIZATION EXPECTS TO GENERATE AN OPERATING MARGIN BETWEEN 2.50% AND 3.00% FOR 2020 BASED ON CURRENT FINANCIAL MODELING, WHICH INCLUDES FUNDING RECEIVED FROM THE CARES ACT FUNDS. THE RANGE OF PERFORMANCE WILL BE AFFECTED BY THE NUMBER AND MAGNITUDE OF PATIENT SURGES, LIMITATION ON BED CAPACITY, ACCESS TO TESTING SUPPLIES, PPE REPLENISHMENT CHALLENGES AND EROSION IN NET PATIENT SERVICE REVENUE DUE TO SHIFTS IN PAYOR MIX CAUSED BY THE PANDEMIC. AMIDST THE ONGOING COVID-19 PANDEMIC MANAGEMENT IS FOCUSED ON ENSURING ITS FACILITIES AND TEAM REMAIN PREPARED TO MEET THE COMMUNITIES NEEDS. THE ORGANIZATION CONTINUES TO USE ITS DISASTER PLAN TO MANAGE ALL COVID-19 MATTERS AS WELL AS PLAN FOR A SURGE RELATED TO THE FLU SEASON. THE HOSPITAL INCIDENT COMMAND SYSTEM (HICS) TRIAGES MATTERS PERTAINING TO ITS PATIENTS, WORKFORCE, AND HEALTH CARE OPERATIONS AND ENSURES THAT FEDERAL AND STATE INFORMATION AND GUIDELINES ARE DISSEMINATED THROUGHOUT THE SYSTEM. THE HICS TEAM COORDINATES CLOSELY WITH THE LOCAL HEALTH DISTRICTS IN RESPONDING TO ADDITIONAL NEEDS IDENTIFIED BY THE HEALTH DISTRICTS IN THE COMMUNITIES SERVED. THE HICS TEAM IS ALSO RESPONSIBLE FOR ENSURING THE COORDINATION OF COVID-19 POLICIES, PROCEDURES, CLINICAL PRACTICES, STAFFING, LOGISTICS AND COMMUNICATIONS ACROSS THE SYSTEM ENABLING THE ORGANIZATION TO ACTIVELY MANAGE CURRENT PATIENT VOLUMES AND TO REMAIN PREPARED FOR SURGE NEEDS SHOULD THEY OCCUR. THE ORGANIZATION CANNOT PREDICT WHETHER THESE MEASURES WILL BE SUFFICIENT OVER THE LONG-TERM TO MITIGATE THE NEGATIVE EFFECTS OF THE COVID-19 PANDEMIC ON ITS FINANCES AND OPERATIONS. HOWEVER, THE ORGANIZATIONS MANAGEMENT TEAM WILL CONTINUE TO ASSESS AND IMPLEMENT INITIATIVES TO MANAGE COSTS AND ADJUST OPERATIONS TO KEEP ITS FACILITIES AND TEAMS SAFE AND EFFICIENT IN RESPONDING TO THE ONGOING CHANGES AS A RESULT OF THE COVID-19 PANDEMIC. 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 SERVICE AGREEMENT WITH THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 4 THE FIDUCIARY STANDARD WAS UPDATED TO INCLUDE THAT THE ORGANIZATION ACTS AS PART OF THE HEALTH SYSTEM AND FOR THE COMMON PURPOSES OF THE HEALTH SYSTEM AS A WHOLE. THE CONFLICT OF INTEREST SECTION WAS UPDATED TO INCLUDE THAT DISCLOSURE SHALL REFLECT INFORMATION AS TO THE HEALTH SYSTEM AS A WHOLE. THE AMENDMENT PROCESS WAS UPDATED TO INCLUDE THAT ANY PROPOSED AMENDMENTS TO THE BYLAWS WILL NOW BE REVIEWED BY LEGAL COUNSEL PRIOR TO ADOPTION TO ENSURE CHANGES ARE CONSISTENT WITH APPLICABLE LAWS AND STANDARDS. THE COMPOSITION OF THE GOVERNING BODY WAS UPDATED TO REFLECT THE FOLLOWING CHANGES: - CHIEF MEDICAL OFFICER FOR CH SHALL ALSO SERVE AS THE CMO FOR CWH AND WVH. - CHIEF OPERATING OFFICER WAS REPLACED WITH THE TITLE HOSPITAL ADMINISTRATOR. - HOSPITAL ADMINISTRATORS FOR EACH ENTITY WILL SERVE AS THE "CHIEF EXECUTIVE OFFICER" OF THEIR RESPECTIVE HOSPITALS. - CHIEF NURSING OFFICER WAS UPDATED TO HAVE OVERSIGHT OF THE HEALTH SYSTEM AS A WHOLE. - CHIEF ADMINISTRATIVE OFFICER WAS REMOVED FROM THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B A COPY OF THE FORM 990 AND SCHEDULE B, IF ANY, IS REVIEWED BY THE CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF FINANCE. SUBSEQUENT TO THIS REVIEW THE FORM 990 AND SCHEDULE B 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 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 FINANCIAL STATEMENTS ARE AVAILABLE ON REQUEST. FORM 990, PART XI, LINE 9: CUMULATIVE EFFECT OF ACCOUNTING CHANGE -429,890. FORM 990, PART XII, LINE 3B: CONFLUENCE HEALTH IS IN THE PROCESS OF COMPLETING THE REQUIRED A-133 AUDIT FOR THE YEAR ENDED DECEMBER 31, 2020. THE EXTENDED DUE DATE FOR COMPLETION IS MARCH 31, 2022. CENTRAL WASHINGTON HEALTH SERVICES ASSOCIATION 1201 S MILLER STREET 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 1 1 0 0 0 1 0 1 1 0 1 0 0 CENTRAL WASHINGTON HEALTH SERVICES ASSOCIATION L 88814033 COST ALLOCATION WENATCHEE VALLEY HOSPITAL L 31827501 COST ALLOCATION WENATCHEE VALLEY HOSPITAL H 342370 COST BASIS CENTRAL WASHINGTON HEALTH SERVICES ASSOCIATION H 333407 COST BASIS