2019-05-14T12:35:59-05:00 2018-06-30 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2017-07-01 912145484 Verity Health System of California Inc % ANDREW FIERRO-PERETTI VERI 4243670711 2040 E MARIPOSA AVENUE El SEGUNDO CA 90245 ANITA CHOU CFO 6509915427 2019-05-15 true BRIDGET T ROCHE P00666837 3128560200 2019-05-15 65.229.28.136 36941220191345000001 2019-05-14 P 9FF02605DDB28011F037B2D6F18B6026DAFD1911 26467613D5A281C133413C0D1F51320A6E78BD0A 2017 2019-02-21 02:37:17Z Richard Adcock 2040 E Mariposa El SEGUNDO CA 90245 192318591 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. 8 8 174 0 -2575733 -2534917 60367500 0 193927238 181911237 1664152 1839275 0 6098690 255958890 189849202 0 46782774 0 0 27513703 36409718 0 0 0 168535074 159446921 196048777 242639413 59910113 -52790211 695650463 942938461 631140993 923248273 64509470 19690188 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, (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. false false 141734432 46782774 181911237 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. 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. 141734432 true false false true false false false false false false true false false true true false false false false true true false 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 12 0 174 true true true true CJ false false false false false false false false X 8 8 true true false false false true false true true false true true true true true true true true true true true true CA X ANDREW FIERRO-PERETTI 6509915428 1500 SOUTHGATE AVENUE DALY CITY CA 94015 Jack Krouskup Chairman 1.0 0.0 X X 101520 0 0 James Pieri Secretary 1.0 0.0 X X 0 0 0 Ernest Agatstein Board Member 1.0 0.0 X 58125 0 0 James Barber Board Member 1.0 0.0 X 58125 0 0 Terry Belmont Board Member 1.0 0.0 X 73125 0 0 Jeffrey Flocken Board Member (Thru 12/2017) 1.0 0.0 X 75000 0 0 Charles Patton Board Member 1.0 0.0 X 52500 0 0 Andrew Pines Vice Chairman 1.0 0.0 X X 67500 0 0 Christobel Selecky Board Member 1.0 0.0 X 63750 0 0 Andrei Soran President & CEO (THRU 07/2017) 7.0 1.0 X 0 0 0 Stephen Forney CFO (Thru 08/2017) 40.0 0.0 X 0 0 0 Patrick Soon-Shiong Interim CEO (THRU 12/2017) 40.0 0.0 X 0 0 0 Richard Adcock CEO (BEG 12/2017) 40.0 0.0 X 0 0 0 David Sachs CFO (BEG 07/2017) 40.0 0.0 X 0 0 0 Tirso Del Junco Jr MD CHIEF MED. OFFICER (BEG 9/17) 40.0 0.0 X 153094 492956 180 Eric Marton chief strat/ceo vmf(Thru 4/18) 40.0 0.0 X 862849 0 780 Michael Katz chief hum resources(Thru 7/17) 40.0 0.0 X 546671 0 18390 Kate-Louise Gottfried CHIEF COMPL/CORP RESPON OFFICR 40.0 0.0 X 342377 0 28157 Roy Pascale-Sonia VP ASSOC GENERAL COUNSEL 40.0 0.0 X 443079 0 32880 Gaynor B Rabin VP MANAGED CARE (Thru 03/18) 40.0 0.0 X 357253 0 25433 Michelle Leone VP REVENUE CYCLE (Thru 4/17) 40.0 0.0 X 300874 0 12020 Jane Brust vp marketing & comm(Thru 10/17 40.0 0.0 X 311105 0 630 JOHN FERRELLI pres & ceo SMC (Thru 11/17) 40.0 0.0 X 727769 0 26100 JORDAN R HERGET pres & ceo OCH/SLRH (thru 3/18 40.0 0.0 X 678572 0 19388 GERALD T KOZAI PRES. & CEO SFMC (Thru 3/18) 40.0 0.0 X 619168 0 32100 PATRICK H TAKAHASHI CHIEF MED INFO OFFICER- VERITY 40.0 0.0 X 458813 0 0 FRANK CRACOLICI pres & CEO SVMC (thru 9/17) 40.0 0.0 X 377991 0 24000 TY CONNER VP & TREASURER 40.0 0.0 X 317382 0 18000 ROGER D WISEMAN CFO VMF VPN (thru 03/18) 40.0 0.0 X 316534 0 0 ARTHUR HUBER VP FACILITY DESIGN CONSTR. 40.0 0.0 X 312878 0 31244 KERIN T BASHAW VP QUALITY (Thru 11/17) 40.0 0.0 X 302666 0 20729 DARREN SKOLNICK VP INTERNAL AUDIT 40.0 0.0 X 301033 0 23259 SARANG TATIMATLA VP OPERATIONAL FINANCE 40.0 0.0 X 276615 0 3780 JILL L HIRNEISEN VP RISK MANAGEMENT (Thru 3/18) 40.0 0.0 X 277371 0 24780 ELEANOR RAMIREZ CHIEF HOSPITAL OPERATIONS 40.0 0.0 X 263209 0 0 MARY EILEEN DREES VP COMMUNICATIONS/PHILANTHROPY 40.0 0.0 X 256452 0 26394 MUKESH J SANGHVI VP CORPORATE CONTROLLER 40.0 0.0 X 196510 0 12000 CONRAD BAND VP, IT OPERATIONS (Thru 9/17) 40.0 0.0 X 159203 0 540 Anita Chou SVP Hospital Finance (BEG 2/18 0.0 0.0 X 0 333582 26509 Glenn Marshak CMO 40.0 0.0 X 0 0 0 Berge Badalian COO (Thru 07/2017) 40.0 0.0 X 0 0 0 Anthony Armada COO (BEG 07/2017) 40.0 0.0 X 0 0 0 Mitchell Creem CAO (Thru 07/2017) 40.0 0.0 X 0 0 0 MICHAEL FAYFEL DIR. BUSINESS DEV. (Thru 6/18) 40.0 0.0 X 256224 0 780 TODD SCHROEDER DIRECTOR OF REIMBURSEMENT 40.0 0.0 X 244182 0 25302 MARIA KWOK COUNSEL DEPUTY GENERAL 40.0 0.0 X 235417 0 20065 MANUEL CHAVIRA DIRECTOR STRATEGY/FIN ANALYSIS 40.0 0.0 X 228824 0 1860 Manish Patel Chief MED Info Officer VMF 20.0 22.0 X 107013 148934 30934 Robert Minkin President & CEO (Thru 09/2016) 0.0 0.0 X 278634 0 0 11059407 975472 486234 57 true true true Integrity Healthcare LLC 103 Carnegie Center PRINCETON NJ 08540 Management Services 23487164 NTT DATA Services LLC PO Box 677956 DALLAS TX 752677956 IT Services 9640503 Munger Tolles and Olson LLP PO Box 515065 LOS ANGELES CA 900515065 Legal Services 4525809 Conifer Revenue Cycle Solutions LL PO Box 655025 DALLAS TX 752655025 Rev. Cycle Consult 4329699 Deloitte Touche LLP PO Box 844708 DALLAS TX 752844708 Consult. & Mgmt Fees 2796476 52 0 REGIONAL LEADERSHIP AND ADMINISTRATION 900099 172686744 172686744 MEDICAL OFFICE BUILDING REVENUE 532000 9224493 9224493 181911237 -13641336 -2575733 -11065603 0 0 1098690 0 0 1098690 1098690 1098690 17950000 2469389 15480611 15480611 15480611 0 0 0 0 0 0 0 0 0 OTHER REVENUE - SETTLEMENTS 900099 5000000 5000000 5000000 189849202 181911237 -2575733 10513698 46782774 46782774 0 0 0 1155927 1155927 0 0 0 30801050 30801050 746738 746738 1684812 1684812 2021191 2021191 67557829 67557829 5678550 5678550 685761 685761 0 0 0 8720733 8720733 137940 103455 34485 5557063 4870832 686231 42661688 31996266 10665422 0 3152471 2364353 788118 996947 747710 249237 0 134680 134680 20012548 20012548 0 1511171 1420501 90670 0 DUES AND SUBSCRIPTIONS 889129 889129 0 0 . 0 0 0 0 . 0 0 0 0 . 0 1750411 1750411 242639413 141734432 100904981 0 0 0 3742085 14935720 0 0 3871460 2463584 0 0 0 0 1296803 0 0 0 4138645 10753387 135648252 94521809 20017133 41126443 0 0 0 84142 7314400 2210611 0 0 655269937 871364574 695650463 942938461 89407803 129990583 0 0 27559000 27559000 416417962 451722531 0 0 0 0 0 60665067 0 39637417 97756228 213673675 631140993 923248273 X 64509470 17531114 0 2159074 0 0 64509470 19690188 695650463 942938461 X -52790211 2221767 3418533 2330629 X X false false false X X X 7 O'CONNOR HOSPITAL 912154436 3 true 44714071 0 SAINT LOUISE REGIONAL HOSPITAL 912154437 3 true 12848195 0 SETON MEDICAL CENTER 912154441 3 true 39974340 0 ST FRANCIS MEDICAL CENTER 912154439 3 true 60774315 0 ST VINCENT MEDICAL CENTER 912154438 3 true 37545718 0 VERITY MEDICAL FOUNDATION 453691852 3 true 46782774 0 VERITY BUSINESS SERVICES 510659139 3 true 0 0 7 242639413 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. 242639413 242639413 1000000 250000 false 1000000 1000000 1000000 1000000 4000000 6000000 0 0 250000 250000 250000 250000 1000000 1500000 0 0 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, 2018. SCHEDULE C IS BEING COMPLETED AS THE ORGANIZATION HAD AN IRC SECTION 501(H) ELECTION IN EFFECT DURING THE YEAR. 11015232 11015232 94294153 89612193 4681960 666335 72112 594223 6218130 4837504 1380626 23454402 23454402 41126443 DUE FROM RELATED ORGANIZATIONS 842406215 ASSETS LIMITED TO USE 24694096 OTHER RESTRICTED ASSETS 2159074 DEPOSITS 1483864 OTHER ASSETS 621325 871364574 0 DUE TO RELATED ORGANIZATIONS 168795543 PENSION LIABILITIES 14678000 GUARANTEE LIABILITY 14533333 TAXABLE BOND DEBT (SERIES 2015 C) 10000000 SELF-INSURED LIABILITIES 4635976 DEFERRED RENT 1030823 213673675 Central America and the Caribbean 1 Investments 5231240 1 1 5231240 5231240 true false true false false false 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, 2018. HOWEVER, THE NET ASSETS AT JUNE 30, 2018 OF MARILLAC ARE REFLECTED AS AN INVESTMENT ON SCHEDULE F, PART I, COLUMN (F). Schedule F, Part I, Line 3, column (F): Method used to account for investments The organization uses the accrual method to account for the investment amount. true Verity Medical Foundation 400 Race Street San Jose CA 95126 453691852 501(c)(3) 46782774 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, 2018 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 X true false false false false false false false false Tirso Del Junco Jr MD CHIEF MED. OFFICER (BEG 9/17) 150325 492956 0 0 2769 0 0 0 180 0 153274 492956 0 0 Eric Marton chief strat/ceo vmf(Thru 4/18) 700349 0 162500 0 0 0 0 0 780 0 863629 0 0 0 Michael Katz chief hum resources(Thru 7/17) 216671 0 30000 0 300000 0 18000 0 390 0 565061 0 0 0 Kate-Louise Gottfried CHIEF COMPL/CORP RESPON OFFICR 318998 0 0 0 23379 0 27377 0 780 0 370534 0 0 0 Roy Pascale-Sonia VP ASSOC GENERAL COUNSEL 443079 0 0 0 0 0 32100 0 780 0 475959 0 0 0 Gaynor B Rabin VP MANAGED CARE (Thru 03/18) 345253 0 0 0 12000 0 25433 0 0 0 382686 0 0 0 Michelle Leone VP REVENUE CYCLE (Thru 4/17) 120251 0 0 0 180623 0 12020 0 0 0 312894 0 0 0 Jane Brust vp marketing & comm(Thru 10/17 253490 0 0 0 57615 0 0 0 630 0 311735 0 0 0 MICHAEL FAYFEL DIR. BUSINESS DEV. (Thru 6/18) 256224 0 0 0 0 0 0 0 780 0 257004 0 0 0 TODD SCHROEDER DIRECTOR OF REIMBURSEMENT 244182 0 0 0 0 0 25302 0 0 0 269484 0 0 0 JOHN FERRELLI pres & ceo SMC (Thru 11/17) 429665 0 0 0 298104 0 26100 0 0 0 753869 0 0 0 JORDAN R HERGET pres & ceo OCH/SLRH (thru 3/18 484264 0 180000 0 14308 0 19388 0 0 0 697960 0 0 0 GERALD T KOZAI PRES. & CEO SFMC (Thru 3/18) 607168 0 0 0 12000 0 32100 0 0 0 651268 0 0 0 PATRICK H TAKAHASHI CHIEF MED INFO OFFICER- VERITY 458813 0 0 0 0 0 0 0 0 458813 0 0 0 FRANK CRACOLICI pres & CEO SVMC (thru 9/17) 363931 0 0 0 14060 0 24000 0 0 0 401991 0 0 0 TY CONNER VP & TREASURER 301361 0 16021 0 0 0 18000 0 0 0 335382 0 0 0 ROGER D WISEMAN CFO VMF VPN (thru 03/18) 296534 0 15000 0 5000 0 0 0 0 0 316534 0 0 0 ARTHUR HUBER VP FACILITY DESIGN CONSTR. 292878 0 20000 0 0 0 27000 0 4244 0 344122 0 0 0 KERIN T BASHAW VP QUALITY (Thru 11/17) 265824 0 0 0 36842 0 20729 0 0 0 323395 0 0 DARREN SKOLNICK VP INTERNAL AUDIT 301033 0 0 0 0 0 23259 0 0 0 324292 0 0 0 SARANG TATIMATLA VP OPERATIONAL FINANCE 253618 0 0 0 22997 0 0 0 3780 0 280395 0 0 0 JILL L HIRNEISEN VP RISK MANAGEMENT (Thru 3/18) 271612 0 0 0 5759 0 24000 0 780 0 302151 0 0 0 ELEANOR RAMIREZ CHIEF HOSPITAL OPERATIONS 163209 0 100000 0 0 0 0 0 0 0 263209 0 0 0 MARY EILEEN DREES VP COMMUNICATIONS/PHILANTHROPY 244452 0 0 0 12000 0 25614 0 780 0 282846 0 0 0 MUKESH J SANGHVI VP CORPORATE CONTROLLER 196510 0 0 0 0 0 12000 0 0 0 208510 0 0 0 MARIA KWOK COUNSEL DEPUTY GENERAL 223017 0 10000 0 2400 0 20065 0 0 0 255482 0 0 0 MANUEL CHAVIRA DIRECTOR STRATEGY/FIN ANALYSIS 196845 0 10000 0 21979 0 0 0 1860 0 230684 0 0 0 CONRAD BAND VP, IT OPERATIONS (Thru 9/17) 159203 0 0 0 0 0 0 0 540 0 159743 0 0 0 Robert Minkin President & CEO (Thru 09/2016) 0 0 0 278634 0 0 0 0 0 278634 0 0 0 Manish Patel Chief MED Info Officer VMF 107013 143604 0 1482 0 3848 27207 3716 0 11 134220 152661 Anita Chou SVP Hospital Finance (BEG 2/18 0 333582 0 0 0 0 0 25154 0 1355 0 360091 Glenn Marshak CMO 0 0 0 0 0 0 0 0 0 0 0 0 Berge Badalian COO (Thru 07/2017) 0 0 0 0 0 0 0 0 0 0 0 0 Anthony Armada COO (BEG 07/2017) 0 0 0 0 0 0 0 0 0 0 0 0 Mitchell Creem CAO (Thru 07/2017) 0 0 0 0 0 0 0 0 0 0 0 0 SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A THE FOLLOWING INDIVIDUALS RECEIVED A SEVERANCE PAYMENT FROM THE ORGANIZATION DURING THE 2017 CALENDAR YEAR, WHICH IS REPORTED AS TAXABLE COMPENSATION ON FORM 990, PART VII AND SCHEDULE J, PART II, COLUMN (B)(III): Michael Katz $300,000 Robert Minkin $278,634 John Ferrelli $247,846 MICHELLE LEONE $176,931 JANE BRUST $ 47,923 KERIN T. BASHAW $ 36,842 A CALIFORNIA PUBLIC FINANCE AUTHORITY 474447476 13057EAD6 2015-12-14 150000000 refund prior bonds/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 bonds issued on 12/14/2015 were used to refund bonds issued on 7/30/2014 and 8/27/2014 and provide additional working capital. PROCEEDS OF THE bonds 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. BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 2 Richard Adcock Business Relationship Patrick Soon-Shiong - Business Relationship Andrei Soran Business Relationship David Sachs - Business Relationship Stephen Forney - Business Relationship MANAGEMENT DUTIES FORM 990, PART VI, SECTION A, LINE 3 VHS ENTERED INTO A MANAGEMENT AGREEMENT WITH INTEGRITY HEALTHCARE, LLC, A WHOLLY-OWNED SUBSIDIARY OF BLUEMOUNTAIN CAPITAL MANAGEMENT, LLC (WHICH PROVIDED FINANCING IN EXCHANGE FOR AN OPTION TO PURCHASE THE ASSETS OF VHS), EFFECTIVE ON DECEMBER 14, 2015. THE MANAGEMENT AGREEMENT PROVIDES THAT, SUBJECT TO THE SUPERVISION OF THE BOARD OF DIRECTORS, VHS EXCLUSIVELY DESIGNATES AND APPOINTS 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. DURING THE JUNE 30, 2018 FISCAL YEAR, THE officer POSITIONs OF CHIEF EXECUTIVE OFFICER and CHIEF financial OFFICER Were DESIGNATED PURSUANT TO THE BYLAWS OF VHS. THE INDIVIDUALS SERVING IN THIS POSITION WERE PROVIDED BY INTEGRITY HEALTHCARE, LLC. IN ADDITION, THE KEY EMPLOYEE POSITIONS (AS DEFINED BY THE FORM 990 INSTRUCTIONS) OF CHIEF OPERATING OFFICER, CHIEF MEDICAL OFFICER, and CHIEF administrative OFFICER WERE ALSO PROVIDED BY INTEGRITY HEALTHCARE, LLC. WHILE the organization did not DIRECTLY COMPENSATE THESE INDIVIDUALS (LISTED BELOW), THEY WERE COMPENSATED AS PART OF THE AFOREMENTIONED MANAGEMENT AGREEMENT FOR SERVICES AS OFFICERS OF VHS, DURING the June 30, 2018 Fiscal Year. RICHard ADCOCK, CEO of VHS $795,699 Andrei Soran, President & CEO of VHS $7,093,797 Stephen Forney, CFO of VHS $3,140,839 Glenn Marshak, CMO of VHS $5,346,374 Berge Badalian, COO of VHS $3,609,097 Mitchell Creem, CAO of VHS $6,201,272 MEMBERS OR STOCKHOLDERS WITH POWER TO APPOINT FORM 990, PART VI, SECTION A, LINE 7A DURING FISCAL YEAR ENDING JUNE 30, 2018, 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. 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 DEPARTMENT. 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. HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC FORM 990, PART VI, SECTION C, LINE 19 No documents available to the public. CHANGES IN NET ASSETS OR FUND BALANCES FORM 990, PART XI, LINE 9 CHANGE IN THE FUNDED STATUS OF PENSION PLANS - $ 1,864,445 OTHER CHANGES RELATED TO PARTNERSHIP INVESTMENTS - $ 466,184 ------------ TOTAL - $2,330,629 ============ 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 2040 E MARIPOSA AVENUE El Segundo CA 90245 273340398 Investing CA 1756 3534291 VHS De Paul Ventures-San Jose ASC LLC 2040 E MARIPOSA AVENUE El Segundo CA 90245 273340453 Investing CA 0 0 DePaul Vent De Paul Ventures-San Jose Dialysis LLC 2040 E MARIPOSA AVENUE El Segundo CA 90245 371732430 Investing CA 0 0 DePaul Vent Verity Holdings LLC 2040 E MARIPOSA AVENUE El Segundo CA 90245 813038177 Property Hldg CA 13643677 106725699 VHS Vholdings MOB LLC 2040 E Mariposa Avenue El Segundo CA 90245 611812110 INACTIVE CA 0 0 Verity Hldgs Robert F Kennedy Medical Center Found 2040 E MARIPOSA AVENUE El Segundo CA 90245 953745227 Inactive CA 501(c)(3) 07 VHS false St Francis Medical Cntr of Lynwood Fdn 3630 E Imperial Highway Lynwood CA 90262 953190773 Hosp Support CA 501(c)(3) 12-I VHS false St Vincent Foundation 2131 West Third Street Los Angeles CA 90057 953922511 Hosp Support CA 501(c)(3) 12-I VHS false BASM Holdco LLC 1871 Martin Ave SC CA 95050 814359207 MGMT Company CA VHS UNRELATED -2605185 84142 false -2605185 false 0.51000 Marillac Insurance Company LTD PO Box 69 Grand Cayman CJ KY1-1102 980417930 CAPTIVE INSURANCE CJ VHS C Corp 12640213 52171533 1.00000 true Robert F Kennedy Medical Center 2040 E MARIPOSA AVENUE El Segundo CA 90245 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 L 44714071 FMV SAINT LOUISE REGIONAL HOSPITAL L 12848195 FMV SETON MEDICAL CENTER L 39974340 FMV ST VINCENT MEDICAL CENTER L 37545718 FMV St Francis Medical Center L 60774315 FMV Verity Medical Foundation B 46782774 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.