2020-07-01T14:22:59-05:00 2019-06-30 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2018-07-01 912145484 Verity Health System of California Inc % TY CONNER VERI 6509915428 1500 Southgate Avenue Suite 102 Daly City CA 94015 RICHARD ADCOCK PRESIDENT & CEO 4243670630 2020-06-29 true Bridget T Roche P00666837 3128560200 24.145.64.142 36941220201835000005 2020-07-01 P 6DB882030B8256BA7CFFA5DD4EB72C401E7EE807 7007723B4BA24F9F598D85E011C2A5BCC7012F4F 2018 2021-01-29 14:40:06Z X Richard Adcock 1500 Southgate Avenue Daly City CA 94015 198563718 false 6153 X https://verity.org/ X 2001 CA VERITY HEALTH SYSTEM OF CALIFORNIA, INC. IS THE HEALTH SYSTEM'S PARENT ORGANIZATION, PROVIDING LEADERSHIP AND SUPPORT FOR THE ORGANIZATION'S AFFILIATES. 7 7 343 0 228970 0 0 0 181911237 168603268 1839275 18445204 6098690 4525279 189849202 191573751 46782774 45813508 0 0 36409718 50383230 0 0 0 159446921 133823984 242639413 230020722 -52790211 -38446971 942938461 1129323508 923248273 1151510327 19690188 -22186819 X VERITY HEALTH SYSTEM OF CALIFORNIA, INC. IS ORGANIZED AND OPERATED TO SUPPORT ITS AFFILIATED HEALTHCARE FACILITIES BY (I) MAINTAINING ACUTE CARE HOSPITALS, MEDICAL CLINICS, MEDICAL FOUNDATIONS AND RELATED FACILITIES AND ENTERPRISES. (CONTINUED ON SCHEDULE O) false false 155303488 45813508 168603268 VHS is a non-profit regional HEALTH CARE SYSTEM WITH approximately 1,680 INPATIENT BEDS, SIX ACTIVE EMERGENCY ROOMS, a trauma center, medical office buildings, AND A HOST OF MEDICAL SPECIALTIES, including tertiary and quaternary care. ON FEBRUARY 28, 2019, THE ASSETS OF TWO HOSPITALS WITHIN THE HEALTH SYSTEM SUPPORTED BY VHS WERE SOLD TO SANTA CLARA COUNTY. (CONTINUED ON SCHEDULE O) 155303488 true false false true false false false false false false true false false true true false false false false true true true false false false false false true false true true false false false false false false false false false false false false false false true true true true false false true 151 0 true 343 true true true true CJ false false false false false false false false false false X 7 7 true true false false false true false true true false true true true true true true true true true true true true CA X TY CONNER 6509915420 1500 SOUTHGATE AVENUE Daly City CA 94015 Jack Krouskup Chairman 1.0 0.0 X X 71183 0 0 James Pieri Secretary (THRU 7/18) 1.0 0.0 X X 0 0 0 Ernest Agatstein Board Member 1.0 0.0 X 45000 0 0 Terry Belmont SECRETARY (BEG 7/18) 1.0 0.0 X X 56250 0 0 Charles Patton Board Member 1.0 0.0 X 39375 0 0 Andrew Pines Vice Chairman 1.0 0.0 X X 56250 0 0 Christopher Selecky Board Member 1.0 0.0 X 56250 0 0 James Barber Board Member 1.0 0.0 X 45000 0 0 Richard Adcock CEO 40.0 7.0 X 385104 0 9292 David Sachs CFO (THRU 8/18) 40.0 0.0 X 0 0 0 Anita Chou CFO (BEG 8/18) 10.0 31.0 X 418644 84868 20955 Anthony Armada COO (BEG 8/18) 40.0 1.0 X 186124 0 8750 Tirso Del Junco Jr MD Chief Medical Officer 40.0 0.0 X 950445 0 750 Kate-Louise Gottfried Chief Compl Officr (THRU 4/19) 40.0 0.0 X 364677 0 41990 Roy Pascale-Sonia VP Assoc General Counsel 40.0 0.0 X 512722 0 56859 Patrick H Takahashi CMIO-VHS (2/19) 40.0 0.0 X 545719 0 33402 Ty Conner VP & Treasurer 20.0 20.0 X 338508 0 58456 Arthur Huber VP FDC (THRU 2/19) 40.0 0.0 X 334213 0 45366 Darren Skolnick VP Internal Audit (THRU 4/19) 40.0 0.0 X 339997 0 60435 Eleanor Ramirez Chief Hospital Operations 20.0 21.0 X 759478 0 48284 Mary Eileen Dub Drees VP Communications/Philanthropy 40.0 4.0 X 345157 0 52526 Mukesh J Sanghvi VP Corp Contr (THRU 10/18) 40.0 0.0 X 214690 0 19109 Michael P Schweitzer Chief, Population Health 40.0 1.0 X 569008 0 29516 Mark Fratzke President & CEO Seton SMCC 1.0 41.0 X 493949 0 43943 Steven C Sharrer Chief Human Resource Officer 40.0 0.0 X 433862 0 8468 Elspeth Paul General Counsel 40.0 0.0 X 402722 0 16681 Margaret Pfeiffer VP, Program Development 30.0 11.0 X 340820 0 16186 Peter Wong VP Qual & Trans (THRU 9/18) 40.0 0.0 X 341179 0 14733 Lynne W Gentry VP Revenue Cycle 40.0 0.0 X 334876 0 17311 Eric Leader Chief Technology Officer 40.0 0.0 X 294171 0 37973 Randall Roisman Interim VP&CFO (THRU 4/19) 40.0 1.0 X 250944 0 47524 John Hennelly Pres & CEO SLRH (THRU 2/19) 20.0 21.0 X 239761 144141 41511 Todd Schroeder Director of Reimbursement 20.0 20.0 X 266704 0 39744 Manuel Chavira Dir Strat/Fin An (THRU 4/19) 40.0 0.0 X 289209 0 8468 Alan J Sedley Asso Gener Counsel (THRU 4/19) 40.0 0.0 X 364862 0 12140 Raja Zeitany Assi Int CEO SFMC (THRU 4/19) 40.0 0.0 X 296699 0 25052 Vincent Daniels Corp Dir, Imaging Services 40.0 0.0 X 277500 0 45699 John Ferrelli Pres & CEO SMC (THRU 11/17) 0.0 0.0 X 148606 0 0 Frank Cracolici Pres&CEO SVMC (THRU 9/17) 0.0 0.0 X 176680 0 0 Eric Marton Chief Strategy (THRU 4/18) 0.0 0.0 X 801057 0 8990 Gaynor B Rabin VP Managed Care (THRU 3/18) 0.0 0.0 X 273164 0 12969 Jordan Herget Pres/CEO OCH&SLRH (THRU 3/18) 0.0 0.0 X 214508 0 13190 Gerald Kozai Pres & CEO SFMC (THRU 3/18) 0.0 0.0 X 636978 0 25154 Jane Brust VP Mkt & Comm. (THRU 10/17) 0.0 0.0 X 152822 0 0 Kerin T Bashaw VP Quality (THRU 11/17) 0.0 0.0 X 145613 0 0 Roger Wiseman CFO VMF VPN (THRU 3/18) 0.0 0.0 X 105200 0 6969 Jill L Hirneisen VP Risk Mgmt (THRU 3/18) 0.0 0.0 X 198456 0 13726 14114136 229009 942121 173 true true true NTT DATA Services LLC PO Box 677956 DALLAS TX 752677956 IT Services 6321356 QUADRAMED CORPORATION PO BOX 74008556 CHICAGO IL 606748556 IT - SUPPORT 5343528 CDW GOVERNMENT INC 75 REMITTANCE DR STE 1515 CHICAGO IL 606751515 IT - EQUIPMENT 3866838 DELTA DENTAL CA PO BOX 44460 SAN FRANCISCO CA 941440460 EMPLOYEE BENEFITS 3787894 Allscripts LLC 24630 NETWORK PLACE CHICAGO IL 606731246 healthcare IT 3280509 114 0 REGIONAL LEADERSHIP AND ADMINISTRATION 551114 158795059 158795059 0 0 MEDICAL OFFICE BUILDING REVENUE 621112 9629098 9629098 0 0 HOSPITAL COUNCIL MANAGED CARE 620000 179111 179111 0 0 168603268 4601911 228970 4372941 0 0 2322986 2322986 0 0 0 18510274 4666981 13843293 13843293 13843293 0 0 0 0 0 0 0 0 0 TRANSITIONAL SERVICES AGREEMENT REVENUE 900099 4517225 0 0 4517225 . 0 0 0 0 . 0 0 0 0 8054 0 0 8054 4525279 191573751 168603268 228970 22741513 X 41559870 41559870 0 4253638 4253638 0 9634256 9634256 0 32296335 32296335 884816 884816 5088856 5088856 2478967 2478967 35491730 35491730 24001476 24001476 46429 46429 0 0 0 4148627 4148627 0 0 7760 5820 1940 8871628 7970680 900948 21236078 15927059 5309019 0 3014741 2261056 753685 416824 312618 104206 0 37799 37799 31976821 31976821 0 1123663 1056243 67420 59210 31973 27237 REORG. COST - BANKRUPTCY FEES 1065496 1065496 0 0 DUES AND SUBSCRIPTIONS 798469 798469 0 0 . 0 0 0 0 . 0 0 0 0 1527233 1527233 230020722 155303488 74717234 0 0 0 14935720 78807794 0 0 2463584 4387081 0 0 0 0 0 0 0 0 10753387 6311349 103826829 66156918 41126443 37669911 0 0 84142 0 2210611 2211859 0 0 871364574 999935514 942938461 1129323508 129990583 180647447 0 0 27559000 27559000 451722531 451757889 0 0 0 0 60665067 134876328 39637417 40000000 213673675 316669663 923248273 1151510327 X 17531114 -22186819 2159074 0 0 0 19690188 -22186819 942938461 1129323508 X -38446971 -3430036 X X false false false X X X 6 O'CONNOR HOSPITAL 912154436 3 true 24441954 0 SAINT LOUISE REGIONAL HOSPITAL 912154437 3 true 7790619 0 SETON MEDICAL CENTER 912154441 3 true 35305777 0 ST FRANCIS MEDICAL CENTER 912154439 3 true 57227250 0 ST VINCENT MEDICAL CENTER 912154438 3 true 34332571 0 VERITY MEDICAL FOUNDATION 453691852 10 true 40009184 0 6 199107355 0 0.00000 true false false false false false false false false false false false false false false false SCHEDULE A, PART IV, Section C, Line 1 THE BOARD OF DIRECTORS OF ALL OF THE SUPPORTED ORGANIZATIONS OF VERITY HEALTH SYSTEM OF CALIFORNIA, INC. ("VHS") (O'CONNOR HOSPITAL, SAINT LOUISE REGIONAL HOSPITAL, SETON MEDICAL CENTER, ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, VERITY MEDICAL FOUNDATION AND VERITY BUSINESS SERVICES) ARE APPOINTED BY VHS, THEIR SOLE CORPORATE MEMBER. 228362786 228362786 1000000 250000 false 1000000 1000000 1000000 1000000 4000000 6000000 250000 250000 250000 250000 1000000 1500000 SCHEDULE C, PART II-A: VERITY HEALTH SYSTEM OF CALIFORNIA, INC. DID NOT INCUR ANY LOBBYING EXPENDITURES OR CONDUCT LOBBYING ACTIVITIES DURING THE TAX YEAR ENDING JUNE 30, 2019. SCHEDULE C IS BEING COMPLETED AS THE ORGANIZATION HAD AN IRC SECTION 501(H) ELECTION IN EFFECT DURING THE YEAR. 9120288 9120288 64246486 62275468 1971018 826316 149019 677297 5329484 3732431 1597053 24304255 0 24304255 37669911 DUE FROM RELATED ORGANIZATIONS 971950082 ASSETS LIMITED TO USE 24815706 DEPOSITS 1965159 OTHER ASSETS 1204567 999935514 0 DUE TO RELATED ORGANIZATIONS 270360320 PENSION LIABILITIES 17403000 GUARANTEE LIABILITY 14533333 TAXABLE BOND DEBT (SERIES 2015 C) 10000000 SELF-INSURED LIABILITIES 4373010 316669663 true Central America and the Caribbean 0 1 Investments 10644529 0 1 0 1 10644529 10644529 Central America and the Caribbean General Support 4253638 Wire 0 1 true false true false false false SCHEDULE F, PART I, LINE 2: OTHER ASSITANCE WAS DISBURSED TO ADVANCE OUR CHARITABLE PURPOSE AND FULFIL OUR INSURANCE OBLIGATIONS. SUCH ASSISTANCE WAS GIVEN TO MEET A SPECIFIC NEED AND QUANTIFIED THROUGH ACTUARIAL STUDY. SUCCESS WAS DOCUMENTED BY REVIEWING THE NEED AND ENSURING IT WAS FULFILLED BY OBTAING THE NECESSARY FINANCIAL INSTRUMENT. SCHEDULE F, PART I, LINE 3: Verity Health System of California, Inc. ("VHS") OWNS 100% OF MARILLAC INSURANCE COMPANY, LTD ("MARILLAC"), AN INSURANCE CAPTIVE DOMICILED IN THE CAYMAN ISLANDS. MARILLAC IS A LEGALLY SEPARATE ENTITY FROM VHS AND IS NOT REFLECTED AS AN INVESTMENT ON THE ORGANIZATION'S BALANCE SHEET AS OF JUNE 30, 2019. HOWEVER, THE NET ASSETS AT JUNE 30, 2019 OF MARILLAC ARE REFLECTED AS AN INVESTMENT ON SCHEDULE F, PART I, COLUMN (F). Schedule F, Part I, Line 3, column (F), AND PART II, LINE 1: Method used to account for investments The organization uses the accrual method to account for the investment amount. true Verity Medical Foundation 1500 Southgate Avenue Daily City CA 94015 453691852 501(C)(3) 41559870 0 General Support 1 Schedule I, Part I, Line 2: Verity Health System of California, Inc. is a part of a group of related tax-exempt organizations, which includes Verity Medical Foundation. During the June 30, 2019 fiscal year, VHS made equity transfers to Verity Medical Foundation. Proper use of transferred amounts is monitored through common control throughout the health system. X X X X true false false false false false false true false Richard Adcock CEO 385104 0 0 0 0 0 0 0 9292 0 394396 0 0 0 Tirso Del Junco Jr MD Chief Medical Officer 653285 0 290237 0 6923 0 0 0 750 0 951195 0 0 0 Eric Marton Chief Strategy (THRU 4/18) 222449 0 384493 0 194115 0 0 0 8990 0 810047 0 0 0 Kate-Louise Gottfried Chief Compl Officr (THRU 4/19) 324450 0 40227 0 0 0 32742 0 9248 0 406667 0 0 0 Roy Pascale-Sonia VP Assoc General Counsel 448745 0 63977 0 0 0 29860 0 26999 0 569581 0 0 0 Gaynor B Rabin VP Managed Care (THRU 3/18) 80415 0 48355 0 144394 0 6000 0 6969 0 286133 0 0 0 Jordan Herget Pres/CEO OCH&SLRH (THRU 3/18) 106272 0 105467 0 2769 0 6221 0 6969 0 227698 0 0 0 Gerald Kozai Pres & CEO SFMC (THRU 3/18) 165608 0 238898 0 232472 0 20709 0 4445 0 662132 0 0 0 Patrick H Takahashi CMIO-VHS (2/19) 477279 0 68440 0 0 0 32742 0 660 0 579121 0 0 0 Ty Conner VP & Treasurer 305834 0 32674 0 0 0 32207 0 26249 0 396964 0 0 0 Arthur Huber VP FDC (THRU 2/19) 298641 0 35572 0 0 0 24952 0 20414 0 379579 0 0 0 Darren Skolnick VP Internal Audit (THRU 4/19) 305738 0 34259 0 0 0 32558 0 27877 0 400432 0 0 0 Eleanor Ramirez Chief Hospital Operations 714478 0 45000 0 0 0 29400 0 18884 0 807762 0 0 0 Mary Eileen Dub Drees VP Communications/Philanthropy 320529 0 17705 0 6923 0 30719 0 21807 0 397683 0 0 0 Mukesh J Sanghvi VP Corp Contr (THRU 10/18) 214690 0 0 0 0 0 19109 0 0 0 233799 0 0 0 Anita Chou CFO (BEG 8/18) 418644 44372 0 40496 0 0 0 4659 16070 226 434714 89753 0 0 Anthony Armada COO (BEG 8/18) 186124 0 0 0 0 0 0 0 8750 0 194874 0 0 0 Todd Schroeder Director of Reimbursement 248824 0 17880 0 0 0 30751 0 8993 0 306448 0 0 0 Manuel Chavira Dir Strat/Fin An (THRU 4/19) 204628 0 84581 0 0 0 0 0 8468 0 297677 0 0 0 Michael P Schweitzer Chief, Population Health 383054 0 159819 0 26135 0 18500 0 11016 0 598524 0 0 0 Mark Fratzke President & CEO Seton SMCC 481449 0 12500 0 0 0 26145 0 17798 0 537892 0 0 0 Steven C Sharrer Chief Human Resource Officer 419044 0 0 0 14818 0 0 0 8468 0 442330 0 0 0 Elspeth Paul General Counsel 352722 0 50000 0 0 0 0 0 16681 0 419403 0 0 0 Alan J Sedley Asso Gener Counsel (THRU 4/19) 364862 0 0 0 0 0 0 0 12140 0 377002 0 0 0 Margaret Pfeiffer VP, Program Development 340820 0 0 0 0 0 0 0 16186 0 357006 0 0 0 Peter Wong VP Qual & Trans (THRU 9/18) 324352 0 12500 0 4327 0 0 0 14733 0 355912 0 0 0 Lynne W Gentry VP Revenue Cycle 324876 0 10000 0 0 0 0 0 17311 0 352187 0 0 0 Raja Zeitany Assi Int CEO SFMC (THRU 4/19) 296699 0 0 0 0 0 19057 0 5995 0 321751 0 0 0 Eric Leader Chief Technology Officer 256671 0 37500 0 0 0 19089 0 18884 0 332144 0 0 0 Vincent Daniels Corp Dir, Imaging Services 260000 0 17500 0 0 0 19450 0 26249 0 323199 0 0 0 Randall Roisman Interim VP&CFO (THRU 4/19) 250944 0 0 0 0 0 19077 0 28447 0 298468 0 0 0 John Hennelly Pres & CEO SLRH (THRU 2/19) 239761 110546 0 33595 0 0 0 13634 27877 0 267638 157775 0 0 Jane Brust VP Mkt & Comm. (THRU 10/17) 0 0 0 0 152822 0 0 0 0 0 152822 0 0 0 Kerin T Bashaw VP Quality (THRU 11/17) 0 0 0 0 145613 0 0 0 0 0 145613 0 0 0 Roger Wiseman CFO VMF VPN (THRU 3/18) 105200 0 0 0 0 0 0 0 6969 0 112169 0 0 0 John Ferrelli Pres & CEO SMC (THRU 11/17) 0 0 0 0 148606 0 0 0 0 0 148606 0 0 0 Frank Cracolici Pres&CEO SVMC (THRU 9/17) 0 0 0 0 176680 0 0 0 0 0 176680 0 0 0 Jill L Hirneisen VP Risk Mgmt (THRU 3/18) 59576 0 30086 0 108794 0 6637 0 7089 0 212182 0 0 0 SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT FROM THE ORGANIZATION DURING THE 2018 CALENDAR YEAR, WHICH IS REPORTED AS TAXABLE COMPENSATION ON FORM 990, PART VII AND SCHEDULE J, PART II, COLUMN (B)(III): Gerald Kozai $229,241 Eric Marton $194,115 Gaynor Rabin $141,625 Jill Hirneisen $106,962 JANE BRUST $152,822 KERIN T. BASHAW $145,613 JOHN FERRELLI $148,606 FRANK CRACOLICI $176,680 NONFIXED PAYMENTS SCHEDULE J, PART I, LINE 7 AS MENTIONED EARLIER, A PORTION OF THE COMPENSATION UNDER THE MIP AGREEMENT WAS BASED ON ACHIEVEMENT OF INDIVIDUAL GOALS. ACCORDING TO THE PLAN, THESE INDIVIDUAL MEASURES WERE AWARDED AND PAID OUT AT THE DISCRETION OF THE PARTICIPANT'S IMMEDIATE MANAGER. IT WAS INTENDED TO RECOGNIZE EXCEPTIONAL PERFORMANCE BEYOND EXPECTATIONS TIED TO ORGANIZATIONAL RESULTS OR CRITICAL PROJECT AND INITIATIVE OUTCOMES. SINCE THESE AWARDS WERE DISCRETIONARY, THE CEO HAD THE DISCRETION TO DENY OR ALTER ANY INDIVIDUAL AWARD MEASURE IF THERE WERE FACTS OR CIRCUMSTANCES THAT MERITED A REDUCTION OR ELIMINATION. THEREFORE, THESE PAYMENTS WERE CONSIDERED TO BE NON-FIXED. A CALIFORNIA PUBLIC FINANCE AUTHORITY 474447476 13057EAD6 2015-12-14 150000000 refund prior notes/working capital false false false B CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTH 680164610 130911C57 2016-05-11 278680000 REFUND 2005 BONDS false false false C California Public Finance Authority 474447476 2017-09-15 21000000 Working Capital false false false D California Public Finance Authority 474447476 2017-12-28 21000000 Working Capital false false false A 0 0 150000000 0 0 0 987912 0 101101450 0 47910638 0 2016 true false true true B 0 0 255526203 23153797 0 0 0 0 0 0 278680000 0 2005 true false true true C 0 0 21000000 0 0 0 400000 0 20600000 0 0 0 2017 false false true true D 0 0 21000000 0 0 0 400000 0 20600000 0 0 0 2018 false false true true A false false false false 0 false false false true B false false false false 0 false false false true C false false false false 0 false false false true D false false false false 0 false false false true A false true false false false false 0 false 0 false true B false true true false false false 0 false 0 false true C false true false false false false 0 false 0 false true D false true false false false false 0 false 0 false true A true B true C true D true . Schedule K, General THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY AND THE CALIFORNIA PUBLIC FINANCE AUTHORITY ISSUED TAX EXEMPT BONDS AND NOTES FOR THE BENEFIT OF VERITY HEALTH SYSTEM OF CALIFORNIA, INC. AND CERTAIN OTHER OBLIGATED GROUP MEMBERS OVER SEVERAL YEARS. THE TAX-EXEMPT DEBT WAS ALLOCATED TO OBLIGATED GROUP MEMBERS WITHIN VERITY'S OBLIGATED GROUP, BUT IS REPORTED FOR TAX PURPOSES ON VERITY'S FORM 990 AND SCHEDULE K. SCHEDULE K, PART I, COLUMN F Proceeds of the bond issued on 3/18/2005 were used to (1) refund a certain bond issued on 12/31/2001, (2) acquire property, plant, and equipment for certain hospitals owned by Verity Health System of California, Inc. or its affiliates, (3) fund certain routine capital expenditures, and (4) pay the cost of insuring the bonds. As a result of certain amendments to the terms of the 2005 bonds, all the then outstanding bonds were reissued pursuant to treasury regulations 1.1001-3 on 5/11/2016. Proceeds of the notes issued on 12/14/2015 were used to refund notes issued on 7/30/2014 and 8/27/2014 and provide additional working capital. Proceeds of the notes issued on 9/15/2017 and 12/28/2017 were used to provide additional working capital. Schedule K, Part II, Column B, Line 4 Gross proceeds of the 2005 bond issue were deposited in a reasonably required reserve fund. When the then outstanding principal amount of the 2005 bond issue was reissued for federal income tax purposes on May 11, 2016 (as noted above), these amounts became transferred proceeds of the 2016 bond issue and are reflected on Line 4. ORGANIZATION'S MISSION FORM 990, PART III, LINE 1 (II) Promoting scientific research related to healthcare services, (III) maintaining healthcare enterprises using systems designed to maximize benefits to the communities served, (IV) promoting the general health of the communities served by Verity and its affiliated healthcare facilities, and (V) providing financial and other forms of assistance for the benefit of its affiliated healthcare facilities and the communities they serve. PROGRAM SERVICE FORM 990, PART III, LINE 4A VHS is committed to providing community benefit through a variety of community based outreach and wellness activities. Through its accounting, finance, and patient financial services departments, the organization provides leadership for the health system and support for its affiliates. This support includes providing strategic and financial planning, information reporting, negotiating and managing certain system-wide contracts with vendors to reduce costs, insurance verification, and customer service for patients with billing questions. MEMBERS OR STOCKHOLDERS WITH POWER TO APPOINT FORM 990, PART VI, SECTION A, LINE 2 Richard Adcock, David Sachs, and Anthony Armada have a business relationship due to their prior employment with Integrity Healthcare, LLC. MANAGEMENT DUTIES FORM 990, PART VI, SECTION A, LINE 3 VHS WAS A PARTY TO A MANAGEMENT AGREEMENT WITH INTEGRITY HEALTHCARE, LLC DURING THE JUNE 30, 2019 FISCAL YEAR. THE MANAGEMENT AGREEMENT PROVIDED THAT, SUBJECT TO THE SUPERVISION OF THE BOARD OF DIRECTORS, VHS EXCLUSIVELY DESIGNATED AND APPOINTED INTEGRITY HEALTHCARE, LLC AS ITS SOLE AND EXCLUSIVE AGENT TO PROVIDE AND ASSUME RESPONSIBILITY FOR THE MANAGEMENT AND ADMINISTRATIVE AND SUPPORT SERVICES OF VHS AND ITS AFFILIATES. THE MANAGEMENT AGREEMENT WAS TERMINATED EFFECTIVE AS OF AUGUST 31, 2018. DURING THE JUNE 30, 2019 FISCAL YEAR, PRIOR TO THE TERMINATION OF THE MANAGEMENT AGREEMENT, THE INDIVIDUALS SERVING IN THE OFFICER POSITIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER WERE PROVIDED BY INTEGRITY HEALTHCARE, LLC. IN ADDITION, DURING THE PERIOD PRIOR TO THE TERMINATION OF THE MANAGEMENT AGREEMENT, THE KEY EMPLOYEE POSITION (AS DEFINED BY THE FORM 990 INSTRUCTIONS) OF CHIEF OPERATING OFFICER WAS ALSO PROVIDED BY INTEGRITY HEALTHCARE, LLC. ON AUGUST 31, 2018, THE CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER PREVIOUSLY PROVIDED BY INTEGRITY HEALTHCARE, LLC, WERE DIRECTLY HIRED BY VHS. WHILE THE ORGANIZATION DID NOT DIRECTLY COMPENSATE THESE INDIVIDUALS (LISTED BELOW) PRIOR TO THEIR HIRE DATE OF AUGUST 31, 2018, THEY WERE COMPENSATED AS PART OF THE AFOREMENTIONED MANAGEMENT AGREEMENT FOR SERVICES AS OFFICERS OF VHS, DURING THE JUNE 30, 2019 FISCAL YEAR. RICHARD ADCOCK, CEO OF VHS - $870,193 (INTEGRITY HEALTHCARE, LLC, CALENDAR YEAR 2018 COMPENSATION ONLY) DAVID SACHS, CFO OF VHS - $766,429 GLENN MARSHAK, CMO OF VHS - $1,126,183 ANTHONY ARMADA, COO OF VHS - $637,317 (INTEGRITY HEALTHCARE, LLC, CALENDAR YEAR 2018 COMPENSATION ONLY) MEMBERS OR STOCKHOLDERS WITH POWER TO APPOINT FORM 990, PART VI, SECTION A, LINE 7A DURING FISCAL YEAR ENDING JUNE 30, 2019, BLUEMOUNTAIN CAPITAL MANAGEMENT, LLC, WHICH PROVIDED VHS WITH FINANCING IN EXCHANGE FOR AN OPTION TO BUY THE ASSETS OF VHS, HAD THE RIGHT TO APPOINT NOT MORE THAN TWENTY PERCENT OF THE NUMBER OF DIRECTORS CONSTITUTING THE BOARD OF DIRECTORS AT ANY TIME DURING THE PERIOD OF TIME THAT ITS AFFILIATE, INTEGRITY HEALTHCARE, LLC IS PROVIDING MANAGEMENT SERVICES TO THE CORPORATION PURSUANT TO A MANAGEMENT SERVICES AGREEMENT. THE MANAGEMENT AGREEMENT BETWEEN VHS AND INTEGRITY HEALTHCARE, LLC WAS TERMINATED EFFECTIVE AS OF AUGUST 31, 2018. FORM 990 REVIEW PROCESS FORM 990, PART VI, SECTION B, LINE 11B THE ORGANIZATION'S INDEPENDENT TAX PREPARERS AND FINANCE STAFF WORK TOGETHER TO GATHER THE REQUIRED INFORMATION NECESSARY TO COMPLETE THE FORM 990. THE INITIAL DRAFT FORM 990 IS REVIEWED BY THE ORGANIZATION'S FINANCE AND LEGAL DEPARTMENTS. AFTER THE FORM 990 IS REVIEWED, RECOMMENDED CHANGES ARE DISCUSSED AND A FINAL FORM 990 IS PREPARED. PRIOR TO FILING WITH THE INTERNAL REVENUE SERVICE, THE FINAL FORM 990 IS DISTRIBUTED TO THE ORGANIZATION'S BOARD OF DIRECTORS FOR REVIEW. CONFLICT OF INTEREST POLICY FORM 990, PART VI, SECTION B, LINE 12C VHS HAS A CONFLICT OF INTEREST POLICY THAT COVERS VHS AND ALL OF ITS AFFILIATES. THE POLICY PROVIDES FOR A SYSTEMATIC AND ONGOING METHOD OF REQUIRING INDIVIDUALS WHO HAVE DECISION MAKING RESPONSIBILITIES TO DISCLOSE AND ADDRESS POTENTIAL AND ACTUAL CONFLICTS OF INTEREST. COVERED INDIVIDUALS ARE REQUIRED TO COMPLETE AN ANNUAL STATEMENT DISCLOSING ANY CONFLICTS OF INTEREST AND HAVE A DUTY TO UPDATE THE DISCLOSURE FOR ANY POTENTIAL CONFLICTS OF INTEREST THAT ARISE DURING THE YEAR. THE PRESIDENT & CEO OF EACH INDIVIDUAL AFFILIATE WITHIN THE HEALTH SYSTEM REPORTS THE CONFLICT OF INTEREST FINDINGS AND RESOLUTIONS TO THEIR RESPECTIVE BOARD OF DIRECTORS. THIS POLICY IS REVIEWED ANNUALLY FOR COMPLIANCE BY VHS' CORPORATE RESPONSIBILITY OFFICER. PROCESS FOR DETERMINING COMPENSATION FORM 990, PART VI, SECTION B, LINES 15A AND 15B THE VHS COMPENSATION PROGRAMS COVER VHS AND ALL OF ITS AFFILIATES. THE PRESIDENT & CEO OF EACH HOSPITAL AND VERITY MEDICAL FOUNDATION ARE EMPLOYED BY VHS. THE VHS COMPENSATION PROGRAMS ARE DESIGNED TO RECRUIT, RETAIN, AND MOTIVATE QUALIFIED EXECUTIVES. THE PROGRAMS ARE DESIGNED FOR POSITIONS THAT HAVE A SIGNIFICANT IMPACT ON THE HIGH-LEVEL STRATEGIC AND POLICY DIRECTION OF VHS AND ITS AFFILIATED HOSPITALS. VHS UTILIZED A BENEFITS COMMITTEE TO REVIEW COMPENSATION AND BENEFITS. THE VHS BOARD OF DIRECTORS REVIEWS AND APPROVES COMPENSATION RECOMMENDED BY THE BENEFITS COMMITTEE, AND DOCUMENTS ITS CONCLUSION THAT THE PROPOSED COMPENSATION IS REASONABLE. IN EVALUATING AND FINALIZING ITS DETERMINATION OF BASE PAY AND TOTAL COMPENSATION FOR COMPARABLE POSITIONS AT COMPARABLE ORGANIZATIONS IN COMPARABLE MARKETS, VHS UTILIZES AVAILABLE MARKET DATA ANALYSES WHICH INCLUDES INDEPENDENT COMPENSATION CONSULTANTS, FORM 990S OF OTHER ORGANIZATIONS, WRITTEN EMPLOYMENT CONTRACTS, COMPENSATION SURVEYS OR STUDIES, AND RECOMMENDATIONS FROM THE BENEFITS COMMITTEE AND APPROVAL BY THE VHS BOARD OF DIRECTORS. COMPENSATION IS CONTEMPORANEOUSLY DOCUMENTED IN THE MINUTES. THIS PROCESS WAS LAST COMPLETED DURING FY19. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, SECTION C, LINE 19 NO DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC. FEES FOR SERVICES FORM 990, PART IX, LINE 11A AND 11B LINE 11A AND 11B INCLUDE BANKRUPTCY RELATED REORGANIZATION AND MANAGEMENT EXPENSES. CHANGES IN NET ASSETS OR FUND BALANCES FORM 990, PART XI, LINE 9 CHANGE IN THE FUNDED STATUS OF PENSION PLANS - ($2,331,000) PENSION OTHER COMPREHENSIVE INCOME - ($1,099,036) ------------ TOTAL - ($3,430,036) ============ FINANCIAL STATEMENTS AND REPORTING FORM 990, PART XII ON AUGUST 31, 2018, VHS AND 16 OF ITS AFFILIATED COMPANIES EACH FILED VOLUNTARY PETITIONS FOR RELIEF UNDER CHAPTER 11 OF THE UNITED STATES BANKRUPTCY CODE. THE BANKRUPTCY CASES ARE JOINTLY ADMINISTERED UNDER CASE NO. 18-20151 IN THE UNITED STATES BANKRUPTCY COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA. COURT FILINGS ARE AVAILABLE AT KCCLLC.NET/VERITYHEALTH. De Paul Ventures LLC 1500 Southgate Avenue Daly City CA 94015 273340398 Investing CA 361 3612396 VHS De Paul Ventures-San Jose ASC LLC 1500 Southgate Avenue Daly City CA 94015 273340453 Investing CA Depaul Vent De Paul Ventures-San Jose Dialysis LLC 1500 Southgate Avenue Daly City CA 94015 371732430 Investing CA Depaul Vent Verity Holdings LLC 1500 Southgate Avenue Daly City CA 94015 813038177 Property Hldg CA 28215512 110628622 VHS Vholdings Mob LLC 1500 Southgate Avenue Daly City CA 94015 611812110 Inactive CA VERITY HLDGS Robert F Kennedy Medical Center Found 1500 Southgate Avenue Daly City CA 94015 953745227 Inactive CA 501(c)(3) 07 VHS false St Francis Medical Cntr of Lynwood Fdn 1500 Southgate Avenue Daly City CA 94015 953190773 Hosp Support CA 501(c)(3) 12-I VHS false St Vincent Foundation 1500 Southgate Avenue Daly City CA 94015 953922511 Hosp Support CA 501(c)(3) 12-I VHS false Basm Holdco LLC 1871 Martin Ave SC Santa Clara CA 95050 814359207 MGMT Activity CA VHS UNRELATED 190280 false 190280 false 0.51000 Marillac Insurance Company Ltd PO Box 69 Grand Cayman CJ KY1-1102 980417930 Captive InsurANCE CJ VHS C Corp 13325711 59656440 1.00000 true Robert F Kennedy Medical Center 1500 Southgate Avenue Daly City CA 94015 912154440 Inactive CA VHS C Corp 0 0 1.00000 true false true false true true false false false true true true false true true true true true true O'Connor Hospital b 24441954 FMV Saint Louise Regional Hospital b 7790619 FMV Seton Medical Center b 35305777 FMV St Vincent Medical Center b 34332571 FMV St Francis Medical Center b 57227250 FMV Verity Medical Foundation b 41559870 FMV Schedule R, Part V, Line 2 VHS transacts business with the listed related organizations in the manner identified in column 2(B). VHS has chosen to reflect these transactions combined for purposes of disclosure on Schedule R, Part V, Line 2.