2018-11-13T18:13:12-06:00 2017-12-31 ERNST & YOUNG US LLP 560 MISSION ST STE 1600 SAN FRANCISCO CA 94105 990 2017-01-01 941156581 SUTTER BAY MEDICAL FOUNDATION % CARLA WHITE-SNYDER SUTT 9162866665 C/O SH TAX 2200 RIVER PLAZA DRIVE SACRAMENTO CA 95833 JOHN GATES CFO 2018-11-07 true EVA NITTA P01286320 4158948000 164.57.159.253 68127220183175000023 2018-11-13 P 856506003E7717BB4C5FA0BAF50AAA2B61E0405F C8EB7D7F4A43AD7C11A3CC780D94EAED606DA475 2017 2019-02-21 02:37:17Z JEFF GERARD C/O SH TAX 2200 RIVER PLAZA DR MOUNTAIN VIEW CA 94040 2351820667 false X WWW.SUTTERHEALTH.ORG X 1948 CA SEE SCHEDULE O 25 21 9011 213 137282 99311 26406446 12863055 2052360289 2333293210 2424278 4263713 404852 509799 2081595865 2350929777 3662887 5012324 0 0 559181732 663101478 0 0 3816571 1373133167 1609357884 1935977786 2277471686 145618079 73458091 1660807582 1608618203 850778626 865169260 810028956 743448943 X SEE SCHEDULE O true false 2039197234 5012324 2333293210 SEE SCHEDULE O 2039197234 true true false false false false false true false true true false false false true true false true false false false false false false true false false true true true true false false false false false false false false false true true false false false false true true true false false true 474 0 true 9011 true true true false false false false true true false false false false X 25 21 false false true false true true true true true false false true true true true true true true true true true CA X CARLA WHITE-SNYDER 9162866665 9100 FOOTHILLS BLVD ROSEVILLE CA 95747 X CHRISTOPHER BECNEL Trustee 2.0 8.0 X 0 0 0 DIANA BELL Trustee 2.0 8.0 X 0 0 0 DAVID BLACK MD Trustee 2.0 8.0 X 0 0 0 WILLIAM BRUNETTI Trustee 2.0 8.0 X 0 0 0 RICHARD CARY HILL MD Trustee 2.0 8.0 X 0 0 0 THEODORE DEIKEL Trustee 2.0 8.0 X 0 0 0 EMIL ROY EISENHARDT Trustee 2.0 8.0 X 0 0 0 EDWARD EISLER MD Trustee, Chief of Staff, CPMC 2.0 28.0 X 0 65663 0 ERIC FLOWERS Trustee 2.0 8.0 X 0 0 0 OWEN GARRICK MD Trustee 2.0 8.0 X 0 0 0 MICHAEL GAULKE Trustee SH Board 2.0 18.0 X 0 27500 0 JEFF GERARD President SH Bay Area 2.0 40.0 X X 0 1773130 415629 VINITA GUPTA Trustee SH Board 2.0 15.0 X 0 27500 0 KATHERINE HSIAO MD Trustee, Chief Gyn. Div CPMC 2.0 8.0 X 0 37971 0 STEVEN KATZNELSON MD Trustee 2.0 8.0 X 0 0 0 SARAH KREVANS Pres & CEO SH, Asst Sec SBMF 2.0 40.0 X X 0 4314787 1951858 JOSEPH LACY MD Trustee 2.0 8.0 X 0 0 0 RICHARD LEVY PHD Chair Finance & Planning 2.0 17.0 X X 0 0 0 DENNIS O'CONNELL Trustee 2.0 8.0 X 0 0 0 STEVEN OLIVER Trustee 2.0 8.0 X 0 0 0 UMESH PADVAL Trustee 2.0 4.0 X 0 0 0 JOHN RYAN Trustee 2.0 8.0 X 0 0 0 RON SINHA MD Trustee 2.0 8.0 X 0 0 0 MARGARET TAYLOR Trustee 2.0 9.0 X 0 0 0 ANTHONY WAGNER Chair 2.0 12.0 X X 0 0 0 JOHN GATES CFO Bay Area 1.0 40.0 X 0 1166413 182158 KAREN HALL Chief Legal Officer, SH Bay 1.0 40.0 X 0 735005 121239 ROGER LARSEN CFO, Bay Area Fnd/Interim CEO 40.0 0.0 X 0 848889 73317 ANNE D BARR VP, Info & Ops Integration, SH 1.0 40.0 X 0 660173 107941 TONI BRAYER MD FNDTN AREA CEO, NORTH BAY 40.0 0.0 X 20570 1115691 209108 LAWRENCE DEGHETALDI FNDTN AREA CEO, SANTA CRUZ 40.0 0.0 X 0 876336 163635 LI-MIN J HU FNDTN AREA CEO, EAST BAY 40.0 0.0 X 0 839486 128800 BENJAMIN MASER Foundation Area CEO, Peninsula 40.0 0.0 X 0 669052 62774 DAVID QUINCY MD FNDTN AREA CEO, SOUTH BAY 40.0 0.0 X 0 702208 139989 ELIZABETH VILARDO-MORGAN MD CEO, Bay Area Foundations 40.0 0.0 X 0 1404389 210878 RAUL A GOROSPE CFO Fndtn - PAMF 40.0 0.0 X 0 458732 63967 MARC LAMONICA CFO Fndtn - SEBMF & SPMF 40.0 0.0 X 0 472613 77526 HAROLD LUFT Director, Research Institute 40.0 0.0 X 591111 0 27642 HARLY NEUMANN PHD VP, HR Foundations, Bay Area 40.0 0.0 X 0 464353 74253 BRIAN C ROACH MD Division President San Mateo 40.0 0.0 X 0 944719 31117 FRANCIS MARZONI Former Division President PAMF 0.0 0.0 X 0 248332 438 RICHARD SLAVIN MD FORMER PRESIDENT & CEO, PAMF 0.0 0.0 X 0 607469 438 611681 18460411 4042707 1601 true true false BRILLIANT GENERAL MAINTENANCE 954 CHESTNUT ST SAN JOSE CA 951101504 MAINTENANCE SERVICES 6641049 RIGHTSOURCING INC PO BOX 515743 LOS ANGELES CA 900515118 STAFFING SERVICES 6020993 EXCEL SPORTS MEDICINE 3825 EL CAMINO REAL PALO ALTO CA 94306 REHAB SERVICES 5450747 QUEST DIAGNOSTICS INC 3924 COLLECTION CENTER DR CHICAGO IL 606930039 LAB SERVICES 5289049 AUXILIO INC PO BOX 388 PALO ALTO CA 94302 CONSULTING SERVICES 3605039 130 13705 94853 559470 2698894 9496133 1784813 12863055 PATIENT SERVICE REVENUE 621110 2328851657 2328851657 HEALTHCARE RELATED JV INCOME 621990 4188662 4188662 RENTAL TO AFFILIATES 532420 252891 252891 2333293210 3940860 64768 3876092 0 0 992444 585341 407103 0 407103 407103 554347 231494 322853 322853 322853 90657 94853 74035 16622 16622 13580 20 13560 13560 0 0 0 UBI - HEALTH MGMT RESOURCES 454110 72514 72514 72514 2350929777 2333293210 137282 4636230 X 4903029 4903029 109295 109295 0 0 8233235 8233235 0 414544815 377945173 35339232 1260410 34553798 30889591 3664207 168034483 150215514 17062628 756341 37735147 33733579 4001568 5514707 5496207 18500 1121281 1121281 96968 96968 0 0 417666 417666 846527897 806313710 40214187 28092 28092 19527301 13394454 5663939 468908 53109186 32725583 20383603 0 67808963 59428134 8380829 1268402 881646 375296 11460 0 364673 204124 157596 2953 20935208 20935208 0 98503290 90175962 8327276 52 3568076 1730627 1837449 MEDICAL SUPPLIES 192594540 192594540 PURCHASED SERVICES 114491660 94526515 19724492 240653 CAPITATED SERVICES 71332384 71332384 SUTTER CHARGEBACKS 83492641 45853174 36741028 898439 28654949 10183711 18312383 158855 2277471686 2039197234 234457881 3816571 0 0 208753004 141227123 3710339 3613333 137632998 174547007 0 0 0 0 0 0 4452542 4044599 2445766 1941947 1847416523 694062917 1127064472 1153353606 90527564 66070125 0 0 8161175 15813600 8436884 17250884 69622838 30755979 1660807582 1608618203 209600957 248179700 0 0 0 0 630631207 602285767 0 0 0 0 0 0 0 0 10546462 14703793 850778626 865169260 X 744403093 677082758 55482500 56053478 10143363 10312707 810028956 743448943 1660807582 1608618203 X 73458091 3705308 -143743412 X false true X true true true X 1367961 X false 18024525 15350 2393878 345859 20087894 17741314 46837 523294 286920 18024525 18979234 -438254 -472413 327253 17741314 18935679 95403 534462 586310 18979234 17272952 94443 1920423 352139 18935679 0.18400 0.51340 0.30260 false false 187522206 187522206 1006779353 304036228 702743125 222412037 97608658 124803379 400113185 289684067 110429118 30589742 2733964 27855778 1153353606 0 INSURANCE LIABILITIES 1923697 SELF-INSURANCE LIABILITY 12780096 14703793 X SCHEDULE D, PART III, LINE 4 DESCRIPTION OF THE ORGANIZATION'S COLLECTIONS: THE ORGANIZATION HAS ARTWORK BEING DISPLAYED IN PUBLIC PLACES OF THE MEDICAL FACILITY FOR DECORATIVE PURPOSES. SCHEDULE D, PART V, LINE 4 INTENDED USES OF THE ORGANIZATION'S ENDOWMENT FUNDS: SHOCKLEY ENDOWMENT - UNRESTRICTED INVESTMENT INCOME (USED BY SBMF FOR GENERAL PURPOSES) IN TEMP RESTRICTED EARNINGS UNTIL APPROPRIATED FOR EXPENDITURE. REALIZED AND UNREALIZED GAIN/LOSS GOES BACK INTO THE ENDOWMENT CORPUS. ELY ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT THE SALARY AND BENEFITS OF THE RESEARCH INSTITUTE DIRECTOR. COMMUNITY HEALTH CARE ENDOWMENT - TEMP RESTRICTED EARNINGS TO HELP MEET THE NEEDS OF THE UNDERSERVED (MENTAL AND PHYSICAL) WITHIN THE SBMF SERVICE AREA. GEORGE DICK ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT STUDYING THE AGING PROCESS OF ELDERLY INDIVIDUALS. DOHRMANN FAMILY ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT RESEARCH. HEALTH CARE ENDOWMENT - TEMP RESTRICTED EARNINGS TO FUND HEALTH CARE PROJECTS FOR THE PALO ALTO DIVISION AND MEET THE NEEDS OF THE UNDERSERVED WITHIN THE PALO ALTO DIVISION. KILBANE ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT CANCER RESEARCH AND CANCER PROGRAMS IN RADIATION ONCOLOGY AND MEDICAL ONCOLOGY. MILO FELLOWSHIP ENDOWMENT - TEMP RESTRICTED EARNINGS WILL BE USED BY THE FOUNDATION TO PROVIDE GRANTS IN AID AND SUPPORT PROMISING POST DOCTORAL SCIENTISTS ENGAGED IN RESEARCH RELATING TO THE CAUSE, DIAGNOSIS, TREATMENT AND CURE OF CANCER. EACH GRANT SHALL BE KNOWN AS THE EDITH J MILO MEMORIAL FELLOWSHIP IN THE RESEARCH ON CANCER. THOMAS R MITCHELL ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT THE ESTABLISHMENT AND MAINTENANCE OF THE COMPUTERIZED ONCOLOGY DATABASE ALLOWING PHYSICIANS MORE ACCESS FROM OFF-SITE LOCATIONS. RESEARCH INSTITUTE ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT RESEARCH. PEDIATRIC ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT PEDIATRICS. RUSSELL ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT PROGRAMS AND SERVICES OF THE CLARK-DAVIS PEDIATRIC CENTER. SAIER ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT THE PURCHASE OF EQUIPMENT, SUPPLIES AND OTHER EXPENSES DIRECTLY RELATED TO SUPPORT OF THE MEDICAL RESEARCH MISSION OF THE RESEARCH INSTITUTE. STEVENS MEMORIAL ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT STUDYING THE AGING PROCESS OF ELDERLY INDIVIDUALS. NURSING SCHOLARSHIP ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT NURSING EDUCATION SCHOLARSHIPS. THE BLAIR STRATFORD NURSING ENDOWMENT WAS ESTABLISHED BY BLAIR STRATFORD IN HONOR OF DR. RICHARD BABB TO FUND NURSING EDUCATION THROUGH SCHOLARSHIPS FOR QUALIFIED SBMF CANDIDATES IN THE PALO ALTO, CAMINO, SANTA CRUZ, AND PALOMARES DIVISIONS. DUSTERBERRY ENDOWMENT - TEMP RESTRICTED EARNINGS TO BENEFIT CHILDREN IN THE GEOGRAPHIC AREA OF THE TRI-CITIES AND THE FREMONT UNIFIED SCHOOL DISTRICT AND TO FUND SCHOOL CONFERENCES, NEW PROGRAMS, STUDENT TUITION, AND SCHOLARSHIPS. PHYSICIAN ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT THE RECRUITMENT AND RETENTION OF PHYSICIANS. BRIAN T. PAASO SCHOLARSHIP ENDOWMENT - TEMP RESTRICTED EARNINGS TO SUPPORT MEDICAL SCHOLARSHIPS. SCHEUDLE D, PART X, LINE 2 ASC 740 FOOTNOTE FROM AUDIT: THIS ORGANIZATION WAS PART OF A CONSOLIDATED FINANCIAL SYSTEM AUDIT. THE ASC 740 AUDIT FOOTNOTE DISCLOSURE FOR THE SUTTER SYSTEM IS AS FOLLOWS: SUTTER HEALTH, THE LEGAL ENTITY, AND MANY AFFILIATES HAVE BEEN DETERMINED TO BE EXEMPT ORGANIZATIONS BY THE INTERNAL REVENUE SERVICE AND THE CALIFORNIA FRANCHISE TAX BOARD AND GENERALLY ARE NOT SUBJECT TO TAXES ON INCOME. CERTAIN ACTIVITIES OF SUTTER ARE SUBJECT TO INCOME TAXES; HOWEVER, SUCH ACTIVITIES ARE NOT SIGNIFICANT TO THE CONSOLIDATED FINANCIAL STATEMENTS. WITH RESPECT TO ITS TAXABLE ACTIVITIES, SUTTER RECORDS INCOME TAXES USING THE LIABILITY METHOD, UNDER WHICH DEFERRED TAX ASSETS AND LIABILITIES ARE DETERMINED BASED ON THE DIFFERENCES BETWEEN THE FINANCIAL ACCOUNTING AND TAX BASES OF ASSETS AND LIABILITIES. DEFERRED TAX ASSETS OR LIABILITIES AT THE END OF EACH PERIOD ARE DETERMINED USING THE CURRENTLY ENACTED TAX RATE EXPECTED TO APPLY TO TAXABLE INCOME IN THE PERIODS THAT THE DEFERRED TAX ASSET OR LIABILITY IS EXPECTED TO BE REALIZED OR SETTLED. SUTTER RECOGNIZES THE TAX BENEFIT FROM UNCERTAIN TAX POSITIONS, ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITIONS WILL BE SUSTAINED ON EXAMINATION BY THE TAX AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFIT IS MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE STATUTE OF LIMITATIONS FOR TAX YEARS 2014 THROUGH 2016 REMAIN OPEN IN U.S. TAX JURISDICTIONS IN WHICH SUTTER AND ITS AFFILIATES ARE SUBJECT TO TAXATION. SUTTER RECOGNIZES INTEREST AND PENALTIES RELATED TO INCOME TAX MATTERS IN OPERATING EXPENSES. AT DECEMBER 31, 2017 AND 2016, THERE WERE NO SUCH UNCERTAIN TAX POSITIONS. THE TAX CUTS AND JOBS ACT (TAX ACT) WAS ENACTED ON DECEMBER 22, 2017. THE TAX ACT REDUCES THE US FEDERAL CORPORATE TAX RATE FROM 35% TO 21%, REQUIRES COMPANIES TO PAY A ONE-TIME TRANSITION TAX ON EARNINGS OF CERTAIN FOREIGN SUBSIDIARIES THAT WERE PREVIOUSLY TAX DEFERRED, CREATES NEW TAXES ON CERTAIN FOREIGN SOURCED EARNINGS, PROVIDES FOR A NEW EXCISE TAX ON CERTAIN COMPENSATION OF EXEMPT ORGANIZATIONS OVER $1 MILLION, AND REQUIRES THE SEPARATE CALCULATION OF UNRELATED BUSINESS TAXABLE INCOME FOR EACH TRADE OR BUSINESS CARRIED ON. AS OF DECEMBER 31, 2017, WE HAVE NOT COMPLETED OUR ACCOUNTING FOR THE TAX EFFECTS OF ENACTING THE TAX ACT, THEREFORE WE CONTINUE TO ACCOUNT FOR THOSE ITEMS BASED ON OUR EXISTING ACCOUNTING UNDER ASC 740, INCOME TAXES, AND THE PROVISIONS OF THE TAX LAWS THAT WERE IN EFFECT IMMEDIATELY PRIOR TO ENACTMENT. WE WILL CONTINUE TO MAKE AND REFINE OUR CALCULATIONS AS ADDITIONAL ANALYSIS IS COMPLETED. IN ADDITION, OUR ESTIMATES MAY ALSO BE AFFECTED AS WE GAIN A MORE THOROUGH UNDERSTANDING OF THE TAX LAW AS WELL AS RECEIVING GUIDANCE FROM THE INTERNAL REVENUE SERVICE ON HOW THESE PROVISIONS APPLY TO TAX-EXEMPT ORGANIZATIONS AND TAXABLE AFFILIATES. 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BURLINGAME CA 94010 942722072 501(c)(3) 20000 Program Support CABRILLO COLLEGE FOUNDATION 6500 SOQUEL DR APTOS CA 95003 946121953 GOVT 20000 Program Support SILICON VALLEY LEADERSHIP GROUP FOUNDATION 2001 GATEWAY PL STE 101E SAN JOSE CA 95110 912140464 501(c)(3) 19000 Program Support BAY AREA WOMENS SPORTS INITIATIVE 1922 THE ALAMEDA STE 420 SAN JOSE CA 95126 550897084 501(c)(3) 17500 Program Support MAITRI 234 E GISH RD STE 200 SAN JOSE CA 95112 943132087 501(c)(3) 17500 Program Support W VALLEY COMMUNITY SVCS OF SANTA CLARA CTY 10104 VISTA DR CUPERTINO CA 95014 942211685 501(c)(3) 17500 Program Support SOCIAL GOOD FUND INC 2138 DUNN AVE RICHMOND CA 94801 461323531 501(c)(3) 17000 Program Support ACTERRA 3921 E BAYSHORE RD PALO ALTO CA 94303 237064937 501(c)(3) 15000 Program Support AMERICAN NATIONAL RED CROSS 2025 E ST NW WASHINGTON DC 20006 530196605 501(c)(3) 15000 Program Support CHILDRENS HEALTH COUNCIL 650 CLARK WY PALO ALTO CA 94304 941312311 501(c)(3) 15000 Program Support REGENTS OF THE UNIV OF CA UC BERKELEY 250 SPROUL HALL STE 1960 BERKELEY CA 94720 946002123 GOVT 14750 Program Support ABODE SERVICES 40849 FREMONT BLVD FREMONT CA 94538 943087060 501(c)(3) 12500 Program Support COASTAL KIDS HOME CARE 1172 SO MAIN ST STE 125 SALINAS CA 93901 202549984 501(c)(3) 12500 Program Support AMERICAN CANCER SOCIETY INC 250 WILLIAMS ST NW STE 400 ATLANTA GA 30303 131788491 501(c)(3) 10000 Program Support BOOMERANG FOUNDATION PO BOX 1853 SOQUEL CA 95073 270524692 501(c)(3) 10000 Program Support BOYS AND GIRLS CLUBS OF THE PENINSULA 401 PIERCE RD MENLO PARK CA 94025 941552134 501(c)(3) 10000 Program Support BRING CHANGE 2 MIND 155 SANSOME ST STE 530 SAN FRANCISCO CA 94104 010974537 501(c)(3) 10000 Program Support CARDIAC THERAPY FND OF THE MIDPENINSULA 4000 MIDDLEFIELD RD STE G8 PALO ALTO CA 94303 770336212 501(c)(3) 10000 Program Support COMMUNITY OVERCOMING RELATIONSHIP ABUSE PO BOX 4245 BURLINGAME CA 94011 942481188 501(c)(3) 10000 Program Support DIENTES COMMUNITY DENTAL CARE 1830 COMMERCIAL WY SANTA CRUZ CA 95065 770311752 501(c)(3) 10000 Program Support HEALTH CONNECTED 480 JAMES AVE REDWOOD CITY CA 94062 943227947 501(c)(3) 10000 Program Support JDRF INTERNATIONAL 26 BROADWAY FLR 15 NEW YORK NY 10004 231907729 501(c)(3) 10000 Program Support PATHWAYS HOSPICE FOUNDATION 201 SAN ANTONIO CIR STE 104 MOUNTAIN VIEW CA 94040 770280660 501(c)(3) 10000 Program Support PLANNED PARENTHOOD MAR MONTE 1746 THE ALAMEDA SAN JOSE CA 95126 941583439 501(c)(3) 10000 Program Support RONALD MCDONALD HOUSE AT STANFORD 520 SAND HILL RD PALO ALTO CA 94304 942538615 501(c)(3) 10000 Program Support SAFE ALTERNATIVES TO VIOLENT ENVIRONMENTS 1900 MOWRY AVE STE 204 FREMONT CA 94539 942520559 501(c)(3) 10000 Program Support SENIOR NETWORK SERVICES 1777-A CAPITOLA RD SANTA CRUZ CA 95062 942259716 501(c)(3) 10000 Program Support SHANES INSPIRATION 15213 BURBANK BLVD SHERMAN OAKS CA 91411 954760497 501(c)(3) 10000 Program Support SUNNYVALE COMMUNITY SERVICES 725 KIFER RD SUNNYVALE CA 94086 941713897 501(c)(3) 10000 Program Support UNAMESA ASSOCIATION 654 GILMAN ST PALO ALTO CA 94301 205643483 501(c)(3) 10000 Program Support WASHINGTON HOSPITAL HEALTHCARE FOUNDATION 2000 MOWRY AVE FREMONT CA 94538 942886219 501(c)(3) 10000 Program Support CALIFORNIA UNIV OF LOS ANGELES BOX 951429 1105 MURPHY HALL LOS ANGELES CA 90095 952830293 501(c)(3) 9500 Program Support DRIVERS FOR SURVIVORS INC 39270 PASEO PADRE PKWY STE 355 FREMONT CA 94538 454906163 501(c)(3) 9500 Program Support ADOLESCENT COUNSELING SERVICES 1717 EMBARCADERO RD STE 4000 PALO ALTO CA 94303 510192551 501(c)(3) 7500 Program Support CAMP OPPORTUNITY INC 34050 PASEO PADRE PKWY FREMONT CA 94555 770219669 501(c)(3) 7500 Program Support COUNSELING AND SUPPORT SERVICES FOR YOUTH 555 BRYANT ST STE 126 PALO ALTO CA 94301 264655116 501(c)(3) 7500 Program Support FRIENDS OF CHILDREN WITH SPECIAL NEEDS 2300 PERALTA BLVD FREMONT CA 94536 770446853 501(c)(3) 7500 Program Support LEGAL AID SOCIETY OF SAN MATEO COUNTY 521 E 5TH AVE SAN MATEO CA 94402 941451894 501(c)(3) 7500 Program Support NATL ALLIANCE ON MENTAL ILLNESS SANTA CRUZ PO BOX 360 SANTA CRUZ CA 95061 770002878 501(c)(3) 7500 Program Support NEXT DOOR SOLUTIONS TO DOMESTIC VIOLENCE 234 E GISH RD STE 200 SAN JOSE CA 95112 942420708 501(c)(3) 7500 Program Support PENINSULA HUMANE SOCIETY AND SPCA 1450 ROLLINS RD BURLINGAME CA 94010 941243665 501(c)(3) 7500 Program Support RAPE TRAUMA SERVICES 1860 EL CAMINO REAL STE 406 BURLINGAME CA 94010 943215045 501(c)(3) 7500 Program Support POMONA COLLEGE 550 NO COLLEGE AVE CLAREMONT CA 91711 951664112 501(c)(3) 6500 Program Support REGENTS OF THE UNIV OF CA SANTA CRUZ 1156 HIGH ST SANTA CRUZ CA 95064 941539563 501(c)(3) 6000 Program Support TRUSTEES OF THE UNIVERSITY OF PENNSYLVANIA PO BOX 785541 PHILADELPHIA PA 19178 231352685 501(c)(3) 6000 Program Support CATHOLIC CHARITIES CYO OF ARCHDIOCESE OF SF 990 EDDY ST SAN FRANCISCO CA 94109 941498472 501(c)(3) 5500 Program Support HOMELESS SERVICES CENTER 115 CORAL ST STE B SANTA CRUZ CA 95060 770126783 501(c)(3) 5500 Program Support 63 SCHOLARSHIPS 23 99300 PATIENT ASSISTANCE 16 9283 712 FMV PATIENT NEEDS SCHEDULE I, PART I, LINE 2 IN ORDER TO CLOSELY MONITOR EFFICIENCY AND EFFECTIVENESS, THE COMMUNITY BENEFIT FUNCTION OUTLINES MEASURABLE REPORTING (QUARTERLY, SIX-MONTH AND/OR YEAR-END), PROGRAM AND FUNDING REQUIREMENTS IN A MEMORANDUM OF UNDERSTANDING (MOU), BUSINESS SERVICES AGREEMENT (BSA), OR JOINT VENTURE AGREEMENT FOR EACH INVESTMENT MADE WITH A COMMUNITY PARTNER. WHERE IT IS DETERMINED NECESSARY, ADDITIONAL EFFORTS ARE MADE TO MONITOR EFFECTIVENESS AND EFFICIENCY OF INVESTMENTS, WHICH COULD INCLUDE: - QUARTERLY MEETINGS WITH COMMUNITY PARTNERS - E-MAIL AND TELEPHONIC COMMUNICATIONS WITH COMMUNITY PARTNERS - CONTINUED DIALOGUE WITH INVOLVED HOSPITAL STAFF AND COMMUNITY PARTNERS THROUGHOUT DURATION OF PROGRAM - SITE VISITS WITH COMMUNITY PARTNERS - BI-ANNUAL "OUTCOMES" SURVEY (6-MONTH AND YEAR-END OUTCOMES) - REVIEW OF HOSPITAL USAGE AND PATIENT LEVEL DATA - COLLECTION OF PATIENT STORIES AND NARRATIVES - COLLABORATIVE DISCUSSIONS AROUND AD-HOC SUCCESSES AND CHALLENGES THAT ARISE - REPORTING TO INCLUDE YEAR-END FINANCIAL SUMMARY THAT COMPARES ACTUAL EXPENDITURES TO THE FUNDED PROJECT'S BUDGET, INDICATING ANY UNUSED AMOUNT OF GRANT FUNDS. AT THE END OF EACH YEAR/REPORTING PERIOD, COMMUNITY BENEFIT ANALYZES FULL-YEAR DATA TO ENSURE COMMUNITY PARTNERS MET THE OBJECTIVES OUTLINED IN THE MOU OR BAA. IF THE COMMUNITY PARTNERS DID NOT REACH THE ANTICIPATED OUTCOMES, COMMUNITY BENEFIT WORKS TO UNDERSTAND WHAT CIRCUMSTANCES PREVENTED THE ORGANIZATION FROM MEETING THE GOALS TO HELP IDENTIFY WAYS TO IMPROVE OR PERHAPS RE-EVALUATE WHAT SUCCESS OF THIS PROGRAM LOOKS LIKE, AND MAKES THE DETERMINATION TO CONTINUE OR TERMINATE FUNDING. X true true X X X X true true false false false false false true false ANNE D BARR VP, Info & Ops Integration, SH 0 361728 0 276500 0 21945 0 89703 0 18238 0 768114 0 138284 TONI BRAYER MD FNDTN AREA CEO, NORTH BAY 0 517910 0 520929 20570 76852 0 182053 0 27055 20570 1324799 0 322285 LAWRENCE DEGHETALDI FNDTN AREA CEO, SANTA CRUZ 0 422494 0 400097 0 53745 0 141503 0 22132 0 1039971 0 231090 JOHN GATES CFO Bay Area 0 649068 0 445307 0 72038 0 163503 0 18655 0 1348571 0 275667 JEFF GERARD President SH Bay Area 0 805712 0 829693 0 137725 0 396353 0 19276 0 2188759 0 383520 RAUL A GOROSPE CFO Fndtn - PAMF 0 294252 0 140545 0 23935 0 56153 0 7814 0 522699 0 74746 KAREN HALL Chief Legal Officer, SH Bay 0 412695 0 294719 0 27591 0 102003 0 19236 0 856244 0 144061 LI-MIN J HU FNDTN AREA CEO, EAST BAY 0 460049 0 332253 0 47184 0 112903 0 15897 0 968286 0 180864 SARAH KREVANS Pres & CEO SH, Asst Sec SBMF 0 1681729 0 2410475 0 222583 0 1926153 0 25705 0 6266645 0 1297143 MARC LAMONICA CFO Fndtn - SEBMF & SPMF 0 316831 0 137655 0 18127 0 59453 0 18073 0 550139 0 72470 ROGER LARSEN CFO, Bay Area Fnd/Interim CEO 0 368167 0 398113 0 82609 0 57753 0 15564 0 922206 0 228547 HAROLD LUFT Director, Research Institute 549351 0 39478 0 2282 0 16153 0 11489 0 618753 0 0 0 FRANCIS MARZONI Former Division President PAMF 0 0 0 214020 0 34312 0 0 0 438 0 248770 0 142680 BENJAMIN MASER Foundation Area CEO, Peninsula 0 426930 0 200523 0 41599 0 43553 0 19221 0 731826 0 65640 HARLY NEUMANN PHD VP, HR Foundations, Bay Area 0 290310 0 159137 0 14906 0 57053 0 17200 0 538606 0 83576 DAVID QUINCY MD FNDTN AREA CEO, SOUTH BAY 0 462029 0 231720 0 8459 0 123603 0 16386 0 842197 0 71880 BRIAN C ROACH MD Division President San Mateo 0 48835 0 338035 0 557849 0 28346 0 2771 0 975836 0 143640 RICHARD SLAVIN MD FORMER PRESIDENT & CEO, PAMF 0 0 0 256860 0 350609 0 0 0 438 0 607907 0 171240 ELIZABETH VILARDO-MORGAN MD CEO, Bay Area Foundations 0 671989 0 551875 0 180525 0 186953 0 23925 0 1615267 0 427933 SCHEDULE J, PART I, LINE 1A TAX INDEMNIFICATION: STANDARD POLICY FOR ALL SUTTER HEALTH EMPLOYEES IS THAT NON-CASH GIFTS AND AWARDS ARE GROSSED-UP FOR TAX PURPOSES. THE AMOUNT OF THE GROSS-UP IS ADDED TO THE EMPLOYEES WAGES AND TAXED ACCORDINGLY. SCHEDULE J, PART I, LINE 3 SUPPLEMENTAL COMPENSATION INFORMATION: THE CEO OF THIS ORGANIZATION IS AN EMPLOYEE OF SUTTER HEALTH, A RELATED TAX-EXEMPT ORGANIZATION. THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTERS EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATIONS OVERALL MISSION. SEE SCHEDULE O NARRATIVE FOR PART VI, LINE 15 FOR A FULL DESCRIPTION OF THE COMPENSATION APPROVAL PROCESS COMPLETED BY SUTTER HEALTH. SCHEDULE J, PART I, LINE 4A SEVERANCE PAYMENTS: FRANCIS MARZONI RECEIVED SEVERANCE PAYMENTS OF $34,312 BRIAN C. ROACH, MD RECEIVED SEVERANCE PAYMENTS OF $399,528 RICHARD SLAVIN, MD RECEIVED SEVERANCE PAYMENTS OF $350,609 SCHEDULE J, PART I, LINE 4B NONQUALIFIED RETIREMENT PLAN: THE PURPOSE OF THE NONQUALIFIED RETIREMENT PLAN IS TO PROVIDE SUTTER HEALTH EXECUTIVES WITH A COMPETITIVE RETIREMENT BENEFIT CONSISTENT WITH SUTTER HEALTHS OVERALL COMPENSATION PHILOSOPHY FOR ALL EMPLOYEES. CONTRIBUTIONS ARE DESIGNED TAKING INTO CONSIDERATION LOST RETIREMENT BENEFITS THAT WOULD OTHERWISE BE OBTAINED THROUGH THE QUALIFIED PENSION PLAN. SUTTERS PLANS ARE DESIGNED CONSISTENT WITH COMPETITIVE INDUSTRY PRACTICES. THE RETIREMENT PLAN FOR SUTTER HEALTH EMPLOYEES IS A COMBINATION OF 403(B) EMPLOYER MATCH CONTRIBUTIONS AND QUALIFIED PENSION PLAN BENEFITS. SUTTER HEALTH EXECUTIVES ARE GENERALLY INELIGIBLE FOR EMPLOYER MATCH CONTRIBUTIONS. TO ENSURE A COMPETITIVE RETIREMENT BENEFIT AND TO ADDRESS THE SHORTFALLS DESCRIBED ABOVE, SUTTER HEALTH MAKES AN ANNUAL CONTRIBUTION TO A NON-QUALIFIED 457(F) PLAN FOR ITS EXECUTIVES. THE FORMULA HAS TWO PARTS: (1) 4% TO 7% OF BASE SALARY (COMMENSURATE WITH MANAGEMENT LEVEL), PLUS (2) A CONTRIBUTION STARTING AT 5% (BASED UPON TENURE) FOR ELIGIBLE EARNINGS BEYOND THE IRS DEFINITION OF INCLUDIBLE COMPENSATION ("PENSION PAY CAP"). THE LATTER OF WHICH IS DESIGNED TO HELP RESTORE LOST PENSION BENEFITS FORFEITED UNDER THE QUALIFIED PENSION PLAN FOR EARNINGS OVER THE PENSION PAY CAP LIMIT. CONTRIBUTIONS ARE ALSO MADE FOR A SMALL GROUP OF SENIOR LEVEL EXECUTIVES WHOSE ESTIMATED RETIREMENT BENEFIT (SOCIAL SECURITY PLUS QUALIFIED PLAN BENEFITS PLUS 457(F)) FALLS BELOW 50% - 65% OF FINAL 4-YEAR AVERAGE BASE SALARY WHEN RETIRING AT AGE 65 WITH 22.5 YEARS OF SERVICE. TARGET BENEFIT LEVELS ARE DISCOUNTED FOR YEARS OF SERVICE LESS THAN 22.5 AT AGE 65. UNLIKE SUTTER HEALTHS QUALIFIED PENSION PLAN WHERE EMPLOYEE BENEFITS ARE GUARANTEED (I.E., A DEFINED BENEFIT), SUTTERS NON-QUALIFIED PLAN BENEFITS ARE NOT GUARANTEED BY SUTTER HEALTH. INVESTMENT RISK IS BORNE BY PARTICIPANTS AND BENEFITS ARE NOT PROTECTED SHOULD SUTTER HEALTH BECOME INSOLVENT. THE FOLLOWING INDIVIDUALS RECEIVED 457(F) NON-QUALIFIED PAYMENTS DURING THE YEAR: JEFF GERARD - $127,706 BRIAN C. ROACH - $149,346 SCHEDULE J, PART I, LINE 7 NON-FIXED PAYMENTS SPOT AWARDS ARE INFREQUENTLY USED TO REWARD EMPLOYEES. THERE ARE NO SPECIFIC GUIDELINES FOR THE AMOUNT OF THE SPOT AWARD BUT THE AMOUNT TENDS TO NOT EXCEED 5% TO 10% OF GROSS ANNUAL SALARY. ANNUAL INCENTIVE PLAN (AIP) THE PURPOSE OF THE PLAN IS TO FOCUS EXECUTIVES ON SPECIFIC, SHORTER-TERM GOALS THAT ARE CRITICAL TO THE ACHIEVEMENT OF AFFILIATE, OPERATING UNIT AND SYSTEM-WIDE OBJECTIVES THAT DRIVE OVERALL ORGANIZATION PERFORMANCE. A PORTION OF THE PLAN AWARD IS DISCRETIONARY IN THAT THE SUPERVISOR MAY ADD UP TO 5% TO THE AWARD PROVIDED THE TOTAL AWARD (FORMULA PORTION PLUS DISCRETIONARY) DOES NOT EXCEED THE MAXIMUM ESTABLISHED FOR ANY GIVEN EXECUTIVE. LONG TERM PERFORMANCE PLANS SUTTER HEALTH ALSO EMPLOYS A LONG TERM PERFORMANCE PLAN WHICH IS DESIGNED TO FOCUS ON LONGER TERM STRATEGIC OBJECTIVES OF THE ORGANIZATION. SUTTERS LONG TERM PERFORMANCE PLAN APPROACH IS A COMBINATION OF BOTH LONGER TERM MEASURES OF ORGANIZATION SUCCESS AND KEY ORGANIZATION STRATEGIES WHICH REQUIRE THE COMBINED EFFORT OF ALL LEADERSHIP TO ACHIEVE SUCCESS. SUTTER USES A COMMON FATE APPROACH IN THAT ALL LONG TERM PERFORMANCE PLAN PARTICIPANTS ARE MEASURED AGAINST THE SAME, ORGANIZATION-WIDE CRITERIA VS. INDIVIDUAL EFFORTS. THIS FOSTERS A COMMON PURPOSE ACROSS LEADERSHIP AND A SHARED SENSE OF ACCOUNTABILITY FOR THE OVERALL SUCCESS OF SUTTER HEALTH. TO ENSURE THAT EXTRAORDINARY EFFORTS BY INDIVIDUALS CAN BE RECOGNIZED AND THAT ACTIONS OF LEADERSHIP ARE CONSISTENT WITH SUPPORTING SUTTER HEALTHS OVERALL MISSION, VISION, AND VALUES, SUTTERS LONG TERM PERFORMANCE PLAN APPROACH ALSO INCORPORATES A COMBINATION OF CEO AND SUTTER HEALTH COMPENSATION COMMITTEE DISCRETION. IN SOME CASES, THE SUTTER HEALTH COMPENSATION COMMITTEE HAS DELEGATED AUTHORITY TO THE PRESIDENT & CEO TO MODIFY INDIVIDUAL AWARDS WITHIN LIMITS THAT HAVE BEEN PRE-APPROVED BY THE SUTTER HEALTH COMPENSATION COMMITTEE. THIS INCLUDES BOTH THE REDUCTION AND INCREASE OF AWARD AMOUNTS. SUCH MODIFICATIONS GENERALLY DO NOT EXCEED +/- 20% AND ARE EMPLOYED JUDICIOUSLY. IN ALL CASES, THE COMPENSATION COMMITTEE OF THE BOARD DETERMINES ACHIEVEMENT OF ORGANIZATION GOALS AND MAKES FINAL AWARD DETERMINATION WHICH MAY RESULT IN A REDUCTION OF AWARD IF APPROPRIATE. ALL SENIOR EXECUTIVE AWARDS ARE REVIEWED FOR COMPENSATION REASONABLENESS AND APPROVED BY THE COMPENSATION COMMITTEE PRIOR TO PAYMENT. A CHFFA 2013A 521643828 13033LW52 2013-04-24 487683000 CONSTRUCT & EQUIP FACILITY false false false B CHFFA 2015A 521643828 13032UAR9 2015-11-12 204061105 REFUND 2005A & 1995 CERTIFICATES false false false C CHFFA 2016B 521643828 13032UDW5 2016-08-17 901627093 REFUND 2005BC & 2003AB & 2007A true false false D CHFFA 2017A 521643828 13032UNY0 2017-07-06 496319743 REFUND 2004CD, 2008A (PARTIAL), 20 true false false A 0 0 497320472 0 0 0 0 0 0 483919445 0 13401027 2014 false false true true B 0 0 204061105 0 0 0 0 0 0 0 204061105 0 true false true true C 0 0 902923938 0 0 0 0 0 0 0 902923938 0 false true true true D 0 0 496319743 0 0 0 0 0 0 0 496319743 0 false true true true A false false true true false 0 false false false true B false true true true false 0.00250 0.00000 0.00250 false false 0.00000 false true C false true true true false 0.00380 0.00000 0.00380 false false false true D false true true true false 0.01580 0.00380 0.01960 false false 0.00000 false true A false true false false false false 0 false 0 false true B false true false 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 REPORTING THE ORGANIZATIONS SOLE CORPORATE MEMBER IS A CONDUIT BORROWER OF TAX-EXEMPT BOND ISSUES THAT ALLOCATES PORTIONS OF EACH ISSUE TO CERTAIN SUBSIDIARY ORGANIZATIONS, INCLUDING THE ORGANIZATION. THE OUTSTANDING BOND LIABILITY ALLOCATED TO THIS ORGANIZATION IS REPORTED ON FORM 990, PART X, BALANCE SHEET, AND PART VI HEREIN. WITH THE EXCEPTION OF THIS PORTION OF PART VI, THE SCHEDULE K FOR THIS ORGANIZATION IS REPORTING INFORMATION FOR THE ENTIRE BOND ISSUE. SCHEDULE K, PART I, COLUMN E THE ORGANIZATION RECEIVED BOND PROCEEDS IN THE AMOUNTS OF: $300,000,000 FROM THE 2013A ISSUE; $128,145,770 FROM THE 2015A ISSUE AND $28,573,250 FROM THE 2016B ISSUE; $96,964,091 FROM THE 2017A. THE DIFFERENCE BETWEEN THE ISSUE PRICE REPORTED IN PART I, COLUMN (E) AND THE PROCEEDS OF ISSUE IN PART II, LINE 3 IS DUE TO INVESTMENT EARNINGS. SCHEDULE K, PART II, LINE 7 ISSUANCE COSTS WERE FUNDED THROUGH EQUITY CONTRIBUTIONS. SUBSTANTIAL CONTRIBUTOR SUBSTANTIAL CONTRIBUTOR 320476 SERVICES false SUBSTANTIAL CONTRIBUTOR SUBSTANTIAL CONTRIBUTOR 210330 SERVICES false X 32 399063 FMV OF STOCK false true false SCHEDULE M, PART I, COLUMN (B) COLUMN (B) REPRESENTS THE NUMBER OF CONTRIBUTIONS RECEIVED. FORM 990, PART I, LINE 1 AND PART III, LINE 1 MISSION STATEMENT: WE ENHANCE THE WELL-BEING OF THE PEOPLE IN OUR COMMUNITIES THROUGH COMPASSION, EXCELLENCE AND INNOVATION IN HEALTH CARE SERVICE, RESEARCH AND EDUCATION. FORM 990, PART III, LINE 2 MERGER INFORMATION AUGUST 1, 2017: SUTTER EAST BAY MEDICAL FOUNDATION AND SUTTER WEST BAY MEDICAL FOUNDATION, RELATED 501(C)(3) ORGANIZATIONS, MERGED INTO SBMF. FORM 990, PART III, LINE 4A PROGRAM SERVICE ACCOMPLISHMENTS: SUTTER BAY MEDICAL FOUNDATION (SBMF) IS A NOT-FOR-PROFIT HEALTH CARE ORGANIZATION THAT IS A PIONEER IN BOTH MULTISPECIALTY GROUP PRACTICE OF MEDICINE AND OUTPATIENT MEDICINE. SERVING COMMUNITIES THROUGHOUT NORTHERN CALIFORNIA, SUTTER HEALTH IS A REGIONAL LEADER IN CARDIAC CARE AS WELL AS CARE OF WOMEN AND CHILDREN, AND IS A PIONEER IN ADVANCED PATIENT SAFETY TECHNOLOGY. IN 1993, PALO ALTO MEDICAL FOUNDATION (PAMF) AFFILIATED WITH SUTTER HEALTH, A FAMILY OF NOT-FOR-PROFIT HOSPITALS AND PHYSICIAN ORGANIZATIONS THAT SHARE RESOURCES AND EXPERTISE TO ADVANCE HEALTH CARE QUALITY. IN 2009, PAMF, MILLS-PENINSULA HEALTH SERVICES (MPHS), SUTTER MATERNITY AND SURGERY CENTER AND MENLO PARK SURGICAL HOSPITAL CAME TOGETHER TO FORM SUTTER HEALTHS PENINSULA COASTAL REGION. IN 2016, SUTTER BEGAN THE PROCESS OF MERGING BAY AREA MEDICAL FOUNDATIONS TO FORM SBMF. IN AUGUST 2017, SUTTER WEST BAY MEDICAL FOUNDATION (SWBMF) AND SUTTER EAST BAY MEDICAL FOUNDATION (SEBMF) MERGED INTO SBMF. IN 2008, THE PHYSICIANS OF THE FORMER CAMINO MEDICAL GROUP, PALO ALTO MEDICAL CLINIC AND SANTA CRUZ MEDICAL CLINIC MERGED INTO A SINGLE PHYSICIAN GROUP CALLED THE PALO ALTO FOUNDATION MEDICAL GROUP (PAFMG) TO CONTRACT WITH SBMF TO PROVIDE PHYSICIAN SERVICES AND IN 2010, A NEW MULTISPECIALTY PHYSICIAN GROUP, PENINSULA MEDICAL CLINIC (PMC), WAS FORMED. IN 2017 PMC MERGED INTO PAFMG, CREATING A SINGLE PHYSICIAN GROUP. IN ADDITION, IN 2017 AS PART OF THE MERGER OF SWBMF AND SEBMF INTO SBMF, EAST BAY PHYSICIANS MEDICAL GROUP (EBPMG), SUTTER MEDICAL GROUP OF THE REDWOODS, INC, PHYSICIAN FOUNDATION MEDICAL ASSOCIATES, INC. AND MARIN HEADLANDS MEDICAL GROUP, INC. CONTRACT WITH SBMF TO PROVIDE PHYSICIAN SERVICES. IN 2017, SBMFS 1,502 AFFILIATED PHYSICIANS AND 6,456 EMPLOYEES SERVED 907,462 PATIENTS THROUGH 4,210,899 PATIENT VISITS, OUTPATIENT SURGERIES, AND URGENT CARE VISITS. SBMF'S MISSION IS TO ENHANCE THE WELL-BEING OF THE PEOPLE IN OUR COMMUNITIES THROUGH COMPASSION, EXCELLENCE AND INNOVATION IN HEALTH CARE SERVICES, RESEARCH AND EDUCATION. SBMF HAS THREE DIVISIONS: 1. HEALTH CARE 2. EDUCATION 3. RESEARCH HEALTH CARE DIVISION SBMF'S HEALTH CARE DIVISION CONSISTS OF FIVE SERVICE AREAS: 1. PENINSULA AREA, SERVING SAN MATEO, SANTA CLARA COUNTIES 2. SOUTH BAY AREA, SERVING SANTA CLARA COUNTY 3. SANTA CRUZ AREA , SERVING SANTA CRUZ COUNTY 4. EAST BAY AREA, SERVING ALAMEDA AND CONTRA COSTA COUNTIES 5. SONOMA AND SAN FRANCISCO AREA, SERVING SONOMA, MARIN AND SAN FRANCISCO COUNTIES THESE SERVICE AREAS OFFER MORE THAN 45 MEDICAL SPECIALTIES, A FULL RANGE OF MEDICAL SERVICES, AND STATE-OF-THE-ART TECHNOLOGY. THIS TECHNOLOGY INCLUDES THE MOST ADVANCED DIAGNOSTIC IMAGING AND TREATMENT DEVICES, AN ELECTRONIC HEALTH RECORD SYSTEM, THREE LICENSED ACUTE-CARE FACILITIES, AND ONE ACCREDITED HOME HEALTH AGENCY. SBMF'S ADVANCED CAPABILITIES AND EMPHASIS ON OUTPATIENT CARE ALLOW PHYSICIANS AND STAFF TO MINIMIZE HOSPITALIZATION OF PATIENTS, REDUCING THE OVERALL COST OF MEDICAL CARE SIGNIFICANTLY WHILE MAINTAINING THE HIGHEST QUALITY OF CARE FOR PATIENTS. AS PART OF ITS COMMITMENT TO SERVING ITS COMMUNITY, SBMF PROVIDES CARE TO MEDICALLY INDIGENT PATIENTS AND THOSE ENROLLED IN MEDICARE, MEDI-CAL, AND OTHER GOVERNMENT PROGRAMS WHOSE REIMBURSEMENTS FALL SHORT OF COVERING THE COST OF PROVIDING CARE. THERE ARE A TOTAL OF 198 CLINICS ACROSS SBMFS SERVICE AREAS TO FURTHER ITS COMMITMENT TO SERVING ITS COMMUNITY, 21 WITHIN PENINSULA, 24 WITHIN SOUTH BAY, 18 WITHIN SANTA CRUZ, 17 WITHIN EAST BAY AND 105 WITHIN SONOMA AND SAN FRANCISCO. RECENT ACHIEVEMENTS - CALIFORNIAS OFFICE OF THE PATIENT ADVOCATE (OPA) AWARDS THEIR TOP RATING (4 STARS) TO PAMF-PAFMG FOR QUALITY AND PATIENT EXPERIENCE IN ALL 4 COUNTIES THAT WE SERVE. WE ARE THE ONLY NON-KAISER PROVIDER GROUP IN OUR GEOGRAPHY TO EARN TOP 4-STAR RANKING FOR CONSECUTIVE YEARS. - PALO ALTO FOUNDATION MEDICAL GROUP RECEIVED A TOP 5-STAR RATING FOR ITS OVERALL 2016 CARE OF MEDICARE ADVANTAGE (MA) PATIENTS, AS PUBLICLY REPORTED ON THE INTEGRATED HEALTHCARE ASSOCIATIONS (IHA) WEBSITE PROGRAM. WE ARE ONLY 1 OF 10 PROVIDER ORGANIZATIONS AMONG 186 IN THE STATE TO EARN 5 STARS. - PAMF IS THE HIGHEST RATED MEDICAL GROUP IN THE SUTTER SYSTEM IN THE CMS GPRO PROGRAM, WHICH MEASURES QUALITY OUTCOMES FOR MEDICARE FEE FOR SERVICE PATIENTS FOR MEASUREMENT YEAR 2016. - PAMF HONORED AS A TOP TEN PERCENT ORGANIZATION IN CLINICAL QUALITY BY INTEGRATED HEALTH ASSOCIATION VALUE BASED PAY FOR PERFORMANCE PROGRAM (IHA VBP4P) FOR OUR 2016 MEASUREMENT YEAR PERFORMANCE. - PAMF HONORED AS A TOP TEN PERCENT ORGANIZATION IN PATIENT EXPERIENCE BY INTEGRATED HEALTH ASSOCIATION VALUE BASED PAY FOR PERFORMANCE PROGRAM (IHA VBP4P) FOR OUR 2016 MEASUREMENT YEAR PERFORMANCE. - PAMF AWARDED ELITE STATUS FOR THE 2017 CAPG (CALIFORNIA ASSOCIATION OF PHYSICIAN GROUPS) STANDARDS OF EXCELLENCE SURVEY FOR STRUCTURAL QUALITY AND CAPABILITIES TO DELIVER HIGH VALUE CARE. - PAMF SCORES IN TOP 2 PERCENT FOR MULTIPLE DOMAINS IN THE STATE FOR PATIENT SATISFACTION ACCORDING TO OUR 2017 PATIENT ASSESSMENT SURVEY. RESULTS ADMINISTERED BY CHPI. BENCHMARKS ARE HMO PROVIDER GROUPS IN THE WESTERN US. - PAMF RECEIVES SUTTER HEALTH DASHBOARD AWARD FOR TOP PERFORMANCE IN QUALITY. - PAMF RECEIVES SUTTER HEALTH DASHBOARD AWARD FOR TOP PERFORMANCE IN PATIENT EXPERIENCE. - UNITED HEALTHCARE AWARDED ITS HONORARY JEFFREY MASON M.D. ALLIANCE QUALITY IMPROVEMENT AWARD TO PAMF IN RECOGNITION OF OUR TOP QUALITY PERFORMANCE BETWEEN THE YEARS 2014 AND 2015. - PAMF EXCEEDS THE 2016 SUTTER FULL PERFORMANCE TARGET ON QUALITY BY ACHIEVING 55% MEASURES ABOVE THE 90TH PERCENTILE (P90). 31.25% MEASURES ABOVE P90 IS THE FULL PERFORMANCE TARGET. RESEARCH DIVISION PAMF'S RESEARCH PROGRAMS ARE NATIONALLY KNOWN AND CONTRIBUTED SIGNIFICANTLY TO IDENTIFYING WAYS TO IMPROVE THE DELIVERY OF HEALTHCARE. IN 2017, PAMFRI PARTICIPATED IN 57 CLINICAL TRIALS AND 47 EXTERNALLY-FUNDED AWARDS OR CONTRACTS WITH FEDERAL AGENCIES, FOUNDATIONS, AND PRIVATE SOURCES. PAMFRI'S INVESTIGATORS PUBLISHED 35 MANUSCRIPTS DURING THIS PERIOD. THE CLINICAL STUDIES PERTAINED TO A WIDE RANGE OF HEALTH ISSUES WITH THE MAJORITY FOCUSING ON ONCOLOGY, CARDIOVASCULAR, AND PULMONARY DISEASES. THE AWARDS AND CONTRACTS FOCUSED ON ISSUES INCLUDING PRE- AND DIABETES MANAGEMENT, LUNG AND BREAST CANCER, PHYSICIAN-PATIENT COMMUNICATION, LEAN MANAGEMENT, AND PHYSICIAN WELLBEING. MANY OF THE RESEARCH ENDEAVORS INCLUDE PATIENTS, CAREGIVERS, AND CLINICIANS IN THE DISCOVERY AND DISSEMINATION OF RESULTS. PAMFRI RECEIVED SPONSORSHIPS AND FUNDING FROM NUMEROUS PROMINENT ORGANIZATIONS INCLUDING: - NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES - NATIONAL HEART, LUNG, AND BLOOD INSTITUTE - NATIONAL CANCER INSTITUTE - NATIONAL CENTER FOR ADVANCING TRANSLATIONAL SCIENCES - PATIENT-CENTERED OUTCOMES RESEARCH INSTITUTE - AGENCY FOR HEALTHCARE RESEARCH AND QUALITY - PALO ALTO MEDICAL FOUNDATION - SUTTER HEALTH - TOBACCO-RELATED DISEASE RESEARCH PROGRAM (UNIVERSITY OF CALIFORNIA) EDUCATION DIVISION SBMF'S EDUCATION DIVISION PROVIDES HEALTH EDUCATION THROUGH HEALTH PROMOTION CLASSES, SUPPORT GROUPS AND COMMUNITY OUTREACH. IT PROVIDES FINANCIAL SUPPORT TO COMMUNITY ORGANIZATIONS, PROJECTS RELATED TO HEALTH CARE, IN-KIND ASSISTANCE THROUGH DONATIONS OF MEDICAL EQUIPMENT, AND HEALTH FAIRS AND PROGRAMS. SBMF'S HEALTH EDUCATION PROGRAMS FOCUS ON WELLNESS, PRENATAL/POSTPARTUM CARE AND DISEASE MANAGEMENT. SBMF ALSO OFFERS NEED-BASED SCHOLARSHIPS FOR EDUCATION CLASSES. IN ADDITION, THE EDUCATION DIVISION OFFERS FREE COMMUNITY LECTURES, HEALTH RESOURCE CENTERS, SUPPORT GROUPS, AND PROVIDES RELIABLE HEALTH INFORMATION TO THE PUBLIC THROUGH SBMF'S WEBSITE, WWW.PAMF.ORG. SEPARATE WEB SITES FOR PRETEENS, TEENS AND PARENTS OFFER MEDICALLY ACCURATE AND AGE-APPROPRIATE INFORMATION FOR THOSE IN THE COMMUNITY AND AROUND THE WORLD. THE TEEN AND PRE-TEEN SITES HAVE RECEIVED MILLIONS OF VISITS EACH FROM AROUND THE WORLD SINCE IT LAUNCHED IN 2001 AND 2004, RESPECTIVELY. SBMF IS COMMITTED TO BEING AN ACTIVE MEMBER OF THE COMMUNITIES IT SERVES, AND SUPPORTS VARIOUS COMMUNITY PROGRAMS AND SERVICES SUCH AS PROJECTS AND EDUCATIONAL ACTIVITIES WITH LOCAL SCHOOL DISTRICTS, AND PARTNERSHIPS WITH COMMUNITY ORGANIZATIONS, INCLUDING CLOSE PARTNERSHIPS WITH COMMUNITY CLINICS IN UNDERSERVED AREAS. SBMF'S PHYSICIANS AND STAFF MEMBERS ALSO DONATE HUNDREDS OF HOURS TO COMMUNITY SERVICE. FORM 990, PART III, LINE 4A (CONTINUED) COMMUNITY BENEFIT IN 2017, SBMF PROVIDED OVER $53.8 MILLION IN SERVICES FOR THE POOR AND UNDERSERVED AND NEARLY $15.2 MILLION IN COMMUNITY BENEFITS FOR THE BROADER COMMUNITY. IN ADDITION, EACH YEAR PAMF PHYSICIANS AND STAFF DONATE HUNDREDS OF HOURS TO COMMUNITY SERVICE. SBMF'S COMMUNITY BENEFIT EFFORTS INCLUDE MYRIAD PROGRAMS AND BENEFITS FOR THE BROADER COMMUNITY, INCLUDING BUT NOT LIMITED TO: - MONETARY DONATIONS AND IN-KIND SUPPORT TO LOCAL COMMUNITY GROUPS AND ORGANIZATIONS - HEALTH EDUCATION CLASSES, LECTURES AND PRESENTATION TO THE COMMUNITY - ON-SITE CLINICAL EDUCATION PROGRAMS AND PRECEPTORSHIPS FOR MEDICAL STUDENTS, MEDICAL RESIDENTS, MEDICAL FELLOWS, NURSING STUDENTS, LABORATORY TECHNOLOGISTS, RADIOLOGY TECHNOLOGISTS, PHARMACY STUDENTS - COMMUNITY ORGANIZATION BOARD MEMBERSHIPS - SCHOOL-BASED HEALTH AND WELLNESS PROGRAMS - CHILDHOOD NUTRITION PROGRAMS IN LOCAL SCHOOLS - HEALTH EDUCATION PRESENTATIONS IN LOCAL ORGANIZATIONS WITH AT-RISK POPULATIONS, ETHNICALLY DIVERSE POPULATIONS, AGE-FOCUSED HEALTH AND WELLNESS - DISEASE SPECIFIC PROGRAMS FOR REQUESTING COMMUNITY ORGANIZATIONS AND ON-SITE PROGRAMS WHICH ARE FREE AND OPEN TO ALL COMMUNITY MEMBERS - SENIOR FAIRS - TEEN MENTAL HEALTH OUTREACH AND COLLABORATIONS - DISEASE SPECIFIC SUPPORT GROUPS - COMMUNITY HEALTH RESOURCE CENTERS AVAILABLE TO PATIENTS AND COMMUNITY MEMBERS FOR ASSISTANCE WITH HEALTH AND WELLNESS RESOURCES, DISEASE SPECIFIC RESOURCES AND COMMUNITY RESOURCES - FREE MAMMOGRAPHY PROJECT WITH RAVENSWOOD FAMILY HEALTH CENTER (PROVIDING HUNDREDS OF FREE MAMMOGRAPHIES AND BREAST HEALTH COUNSELING TO LOW INCOME WOMEN) - FREE HIGH SCHOOL SPORTS PHYSICALS IN SANTA CRUZ COUNTY - PHYSICIANS STAFFING PENINSULA HEALTHCARE CONNECTION IN PALO ALTO - SUPPORT OF THE HEALTHY KIDS PROGRAMS IN SANTA CLARA COUNTIES - MONETARY SUPPORT TO COMMUNITY CLINICS IN ALAMEDA, SANTA CLARA AND SAN MATEO COUNTIES FOR ACCESS TO CARE INITIATIVES PALO ALTO MEDICAL FOUNDATION SERVES THE COMMUNITY BY ENCOURAGING FINANCIAL SUPPORT FROM THE COMMUNITY AND CORPORATIONS TO ENHANCE THE QUALITY OF HEALTHCARE IN THE REGION. IN 2017, DONORS CONTRIBUTED MORE THAN $31 MILLION TO FUND CUTTING-EDGE RESEARCH AND IMPLEMENT PROGRAMS THAT FALL OUTSIDE OF OUR ANNUAL OPERATIONS BUDGET. IN AN INNOVATIVE PROGRAM, GRANTS AND DISBURSEMENTS, CLINICIANS AND STAFF PRESENT IDEAS TO BE FUNDED THROUGH UNRESTRICTED PHILANTHROPY GIFTS. IN 2017, PHILANTHROPY RELEASED $1.2 MILLION FOR 9 PROJECTS INCLUDING VISION SCREENING TECHNOLOGY FOR ALL PAMF PEDIATRIC CLINICS, AN OPIOID ASSESSMENT SERVICE, AND A VIDEO INTERPRETATION PROGRAM IMPROVING ACCESS TO PATIENTS SPEAKING AMERICAN SIGN LANGUAGE AND 30 OTHER LANGUAGES. DONOR SUPPORT ALSO FUNDS OTHER CAPITAL REQUESTS, VARIOUS SCHOLARSHIPS, ENDOWMENTS AND COMMUNITY PROGRAMS WHICH ENHANCE THE LEVEL OF CARE THROUGHOUT THE COMMUNITIES WE SERVE. PHILANTHROPY ENABLES TRAILBLAZING RESEARCH, PROVIDES ACCESS TO CUTTING-EDGE TECHNOLOGIES AND ENGENDERS A STARTUP ENVIRONMENT WITHIN A NATIONALLY ACCLAIMED HEALTHCARE NETWORK. A $20 MILLION ENDOWMENT WAS CREATED TO ESTABLISH THE MICHAEL AND JUDITH GAULKE INNOVATION HATCHERY ENDOWMENT FUND TO ACCELERATE THE PACE OF TESTING NEW HEALTHCARE PILOTS AND $1 MILLION GIFT WAS EARMARKED TO FUND STUDENT SCHOLARSHIPS FOR THOSE PURSUING CAREERS IN HEALTHCARE. SINCE 2013, EIGHT ASPIRING MEDICAL STUDENTS HAVE RECEIVED $200,000 IN TUITION ASSISTANCE AND MENTORSHIP THROUGH THE PAMF SCHOLARS PROGRAM. OTHER AREAS OF IMPACT FROM PHILANTHROPY DONATIONS INCLUDED: - THE PURCHASE OF 2 URONAV FUSION BIOPSY SYSTEMS IN 2017 (FOR PALO ALTO AND SANTA CRUZ). PROSTATE CANCER IS THE SECOND MOST COMMON CANCER FOR MEN IN THE U.S. AND THE THIRD DEADLIEST. URONAV COMBINES THE MRI AND ULTRASOUND TECHNOLOGIES FOR BIOPSIES, ENABLING EARLIER, MORE ACCURATE DIAGNOSES. - FOR CANCER CARE, PAMF PROVIDED 1,793 ULTRASOUND SCREENINGS AND 25 BIOPSIES USING THE NEW BREAST ULTRASOUND. THE UPGRADE TO DBT ENABLED SANTA CRUZ TO PERFORM AN ADDITIONAL 1,700 SCREENINGS IN 2017. - IN GERIATRIC AND PALLIATIVE CARE, THE GUZIK CENTER WELCOMED 630 NEW PATIENTS FOR GERIATRIC ASSESSMENTS AND PALLIATIVE CARE SERVICES, AND PROVIDED ON-SITE CARE FOR 572 MEDICALLY COMPLEX AND POST-SURGICAL PATIENTS AT LOCAL NURSING HOMES. - MILLIONS MORE HAVE BEEN EARMARKED TO SUPPORT OUR CARDIOVASCULAR SERVICE LINE, TO MAKE OUR SERVICES A NATIONAL DESTINATION OF CHOICE WITH ABOVE NATIONAL AVERAGE OUTCOMES FOR OUR TREATMENT MODALITIES. THESE GIFTS ALSO ALLOW US TO BRING IN THE VERY LATEST IMAGING TECHNOLOGIES AND NON-INVASIVE TREATMENTS TO CARE FOR OUR PATIENTS. PHILANTHROPY CONTINUES TO SUPPORT THE WOMENS HEALTH PROGRAMS THROUGHOUT OUR SERVICE AREA INCLUDING CENTERING PREGNANCY AND CENTERING PARENTING PROGRAMS IN SANTA CRUZ, THE INTEGRATION OF PRIMARY CARE CLINICIANS IN IDENTIFYING BEHAVIORAL HEALTH ISSUES THROUGH ADOLESCENT BEHAVIORAL HEALTH AND ADULT BEHAVIORAL HEALTH PROGRAMS, THE RESEARCH INSTITUTE, AND HEALTH EDUCATION THROUGHOUT THE COMMUNITY. FORM 990, PART VI, LINE 4 SIGNIFICANT CHANGES TO BYLAWS: MERGER INFORMATION AUGUST 1, 2017: SUTTER EAST BAY MEDICAL FOUNDATION AND SUTTER WEST BAY MEDICAL FOUNDATION MERGED INTO SBMF. FORM 990, PART VI, LINES 6 & 7A CLASSES OF PERSONS AND THE NATURE OF THEIR RIGHTS: THIS CORPORATION IS AN AFFILIATE OF SUTTER HEALTH, A CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION. SUTTER HEALTH IS THE SOLE MEMBER WITH THE RIGHT TO ELECT AT LEAST A MAJORITY OF THE MEMBERS OF THE BOARD OF DIRECTORS. FORM 990, PART VI, LINE 7B CLASSES OF PERSONS, DECISIONS REQUIRING APPROVAL & TYPE OF VOTING RIGHTS: SUTTER HEALTH AS THE SOLE MEMBER OF THE ORGANIZATION IS ENTITLED TO EXERCISE FULLY ALL RIGHTS AND PRIVILEGES OF MEMBERS OF NONPROFIT CORPORATIONS UNDER THE CALIFORNIA NONPROFIT PUBLIC BENEFIT CORPORATION LAW, AND ALL OTHER APPLICABLE LAWS. THE MEMBER HAS THE RIGHTS AND POWERS TO APPOINT (AND REMOVE) MEMBERS OF THE CORPORATION'S BOARD OF DIRECTORS, SUBJECT TO THE PROVISIONS OF THE BYLAWS. IN ADDITION, THE MEMBER HAS THE RIGHT TO APPROVE THE FOLLOWING ACTIONS OF THE CORPORATION'S BOARD OF DIRECTORS: (A) MERGER, CONSOLIDATION, REORGANIZATION OR DISSOLUTION OF THE CORPORATION OR ANY AFFILIATED ENTITY; (B) AMENDMENT OR RESTATEMENT OF THE ARTICLES OF INCORPORATION OR THE BYLAWS OF THE CORPORATION OR ANY AFFILIATED ENTITY; (C) ADOPTION OF OPERATING BUDGETS OF THE CORPORATION OR ANY AFFILIATED ENTITY, INCLUDING CONSOLIDATED OR COMBINED BUDGETS OF THE CORPORATION AND ALL SUBSIDIARY ORGANIZATIONS OF THE CORPORATION; (D) ADOPTION OF CAPITAL BUDGETS OF THE CORPORATION OR ANY AFFILIATED ENTITY; (E) AGGREGATE OPERATING OR CAPITAL EXPENDITURES THAT EITHER EXCEED PREVIOUSLY APPROVED OPERATING OR CAPITAL BUDGETS, OR ARE UNBUDGETED, IF THE AMOUNT IN EXCESS OR THE UNBUDGETED EXPENDITURE IS HIGHER THAN THE SIGNATURE AUTHORITY OF THE PRESIDENT AND CEO OF THE GENERAL MEMBER; (F) LONG-TERM OR MATERIAL AGREEMENTS OF THE CORPORATION OR ANY AFFILIATED ENTITY INCLUDING, BUT NOT LIMITED TO, BORROWINGS, EQUITY FINANCINGS, CAPITALIZED LEASES AND INSTALLMENT CONTRACTS; AND PURCHASE, SALE, LEASE, DISPOSITION, HYPOTHECATION, EXCHANGE, GIFT, PLEDGE, OR ENCUMBRANCE OF ANY ASSET, REAL OR PERSONAL, WITH A FAIR MARKET VALUE IN EXCESS OF THE SIGNATURE AUTHORITY OF THE PRESIDENT AND CEO OF THE GENERAL MEMBER; (G) APPOINTMENT OF AN INDEPENDENT AUDITOR BY THE CORPORATION OR ANY AFFILIATED ENTITY; (H) THE HIRING OF INDEPENDENT COUNSEL BY THE CORPORATION OR ANY AFFILIATED ENTITY, UNLESS AT LEAST TWO-THIRDS (2/3) OF THE BOARD IN OFFICE ON THE DAY OF A VOTE DETERMINE THAT A MATERIAL CONFLICT OF INTEREST EXISTS BETWEEN THE CORPORATION AND THE GENERAL MEMBER AND, THEREFORE, THE BOARD MUST ENGAGE INDEPENDENT COUNSEL TO ASSIST IN EXERCISING THE BOARDS FIDUCIARY DUTIES. TO PRESERVE THE INDEPENDENCE OF COUNSEL RETAINED PURSUANT TO THIS PROVISION, THE GENERAL MEMBER SHALL NOT CLAIM THAT ANY COMMUNICATION BETWEEN SUCH INDEPENDENT COUNSEL AND ANY PERSON ACTING ON BEHALF OF THE CORPORATION, EVEN IF THAT PERSON IS ALSO AN EMPLOYEE, OFFICER OR AGENT OF THE GENERAL MEMBER, CONSTITUTES A WAIVER OF THE ATTORNEY-CLIENT PRIVILEGE OR WORK-PRODUCT PROTECTION; (I) THE CREATION OR ACQUISITION OF ANY SUBSIDIARY OR AFFILIATE AS THAT TERM IS DEFINED IN CALIFORNIA CORPORATIONS CODE SECTION 150; (J) CONTRACTING WITH ANY THIRD PARTY FOR ALL OR SUBSTANTIALLY ALL OF THE MANAGEMENT OF THE ASSETS OR OPERATIONS OF THE CORPORATION OR ANY AFFILIATED ENTITY; (K) APPROVAL OF BUSINESS PLANS TO DEVELOP MAJOR PROGRAMS AND CLINICAL SERVICES OF THE CORPORATION OR ANY AFFILIATED ENTITY. MAJOR NEW PROGRAMS AND CLINICAL SERVICES SHALL INCLUDE, BUT NOT BE LIMITED TO: (I) ANY NEW PROGRAMS OR SERVICES THAT REQUIRE APPROVAL AND/OR ADDITIONAL LICENSURE FROM ANY REGULATORY AGENCY, OR (II) ANY OTHER PROGRAMS OR SERVICES THE GENERAL MEMBER DEEMS MAJOR; (L) APPROVAL OF STRATEGIC PLANS OF THE CORPORATION OR ANY AFFILIATED ENTITY; (M) ADOPTION OF QUALITY IMPROVEMENT POLICIES NOT IN CONFORMITY WITH POLICIES ESTABLISHED BY THE GENERAL MEMBER; (N) ANY SELF-DEALING TRANSACTION BETWEEN A DIRECTOR OF THE CORPORATION AND THE CORPORATION OR A SUBSIDIARY OF THE CORPORATION; OR (O) REHIRING, CONTRACTING WITH, OR OTHERWISE COMPENSATING A SUTTER HEALTH EXECUTIVE, OR ANY OFFICER OR MEMBER OF MANAGEMENT OF THE CORPORATION OR ANY AFFILIATED ENTITY AFTER THEIR EMPLOYMENT HAS ENDED. FORM 990, PART VI, LINE 11B PROCESS USED BY MANAGEMENT &/OR GOVERNING BODY TO REVIEW FORM 990: SUTTER HEALTH HAS A CENTRALIZED TAX DEPARTMENT RESPONSIBLE FOR THE PREPARATION OF THE FORM 990. ANNUALLY THE TAX DEPARTMENT PROVIDES TRAINING AND EDUCATION TO AFFILIATE PERSONNEL WHO ASSIST THE TAX DEPARTMENT IN COLLECTING AND REVIEWING DATA TO BE REPORTED ON THE FORM 990. THE PREPARATION MATERIAL IS REVIEWED BY VARIOUS DEPARTMENTS INCLUDING TAX, FINANCE, LEGAL, AND HUMAN RESOURCES. A NATIONAL ACCOUNTING FIRM PREPARES AND/OR REVIEWS THE RETURN. A COMPLETED RETURN IS THEN REVIEWED BY THE TAX DEPARTMENT, THE AFFILIATE, AND THE CFO BEFORE THE RETURN IS FILED. FORM 990, PART VI, LINE 12 PROCESS TO MONITOR TRANSACTIONS FOR CONFLICTS OF INTEREST: EMPLOYEES ARE EDUCATED ON THE CONFLICT OF INTEREST POLICY AND THE NEED TO MAKE DISCLOSURE AS PART OF ANNUAL COMPLIANCE EDUCATION. IN ADDITION, ANNUALLY A DISCLOSURE STATEMENT IS COMPLETED BY ALL DIRECTORS, OFFICERS AND KEY EMPLOYEES THAT INCLUDES AN ACKNOWLEDGEMENT THAT THEY HAVE READ THE CONFLICT OF INTEREST POLICY. ON THIS STATEMENT THE INDIVIDUAL WILL LIST A WIDE RANGE OF INFORMATION WHICH INCLUDES BUSINESS RELATIONSHIPS, EMPLOYMENT RELATIONSHIPS, PROPERTY INTERESTS, AND THOSE OF RELATED PARTIES. THE BOARD MAY CONSULT WITH THE OFFICE OF THE GENERAL COUNSEL AS NECESSARY. IF THERE IS A POTENTIAL CONFLICT OF INTEREST RELATED TO A PARTICULAR TRANSACTION, THE INTERESTED INDIVIDUAL MUST DISCLOSE THE EXISTENCE AND NATURE OF THE RELATIONSHIP. THE BOARD CHAIR MAY APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE THE CONFLICT. UNTIL THE POTENTIAL CONFLICT IS RESOLVED, THE BOARD CHAIR (OR COMMITTEE CHAIR AS APPLICABLE) MAY REQUEST THE INDIVIDUAL TO NOT PARTICIPATE DURING RELATED PRESENTATIONS AND DISCUSSIONS. IN ALL CIRCUMSTANCES INVOLVING AN ACTUAL CONFLICT, THE INTERESTED INDIVIDUAL SHALL LEAVE THE ROOM PRIOR TO THE BOARD'S FINAL DISCUSSION AND VOTE. FORM 990, PART VI, LINES 15A & 15B PROCESS FOR DETERMINING COMPENSATION: THE COMPENSATION COMMITTEE OF THE SUTTER HEALTH BOARD OF DIRECTORS RETAINS ULTIMATE DISCRETIONARY AUTHORITY OVER ALL ELEMENTS OF COMPENSATION TO ASSURE THAT ORGANIZATIONAL PURPOSES ARE APPROPRIATELY BEING SERVED. THE COMPENSATION COMMITTEE USES CREDIBLE DATA SOURCES AND MAINTAINS AN OBJECTIVE "ARMS LENGTH" DECISION-MAKING PROCESS, ENSURING THE INTEGRITY OF SUTTERS EXECUTIVE PROGRAMS AND CONSISTENCY WITH THE ORGANIZATIONS OVERALL MISSION. IN ORDER TO ENSURE EXTERNAL COMPETITIVENESS, NATIONAL, CALIFORNIA AND LOCAL MARKET AREA COMPENSATION DATA COMPARISONS ARE REVIEWED. COMPETITIVE ANALYSIS INCLUDES: (A) BASE SALARY, (B) TOTAL CASH (BASE SALARY + ANNUAL INCENTIVE), (C) TOTAL DIRECT CASH (BASE SALARY + ANNUAL INCENTIVE + LONG TERM INCENTIVE) AND (D) TOTAL REMUNERATION (BASE SALARY + ANNUAL INCENTIVE + BENEFITS AND LONG TERM INCENTIVE). THIS ANALYSIS INCLUDES COMPARABLE ORGANIZATIONS AND GEOGRAPHIC CONSIDERATIONS. FOR THE MOST SENIOR EXECUTIVE POSITIONS, NATIONAL COMPARISONS FOR ORGANIZATIONS SIMILAR IN SIZE, SCOPE AND COMPLEXITY AS SUTTER HEALTH ARE MOST APPROPRIATE SINCE IT IS A NATIONAL MARKETPLACE IN WHICH SUTTER COMPETES FOR EXECUTIVE TALENT. ON THE OTHER HAND, BECAUSE CALIFORNIAS UNDERLYING COMPENSATION STRUCTURE IS HIGHER THAN NATIONAL DATA (ESPECIALLY IN THE BAY AREA), REGIONAL PAY ADJUSTMENTS MAY BE MADE. OFFICERS AND KEY EMPLOYEES OF THIS ORGANIZATION UNDERGO A REVIEW AND COMPENSATION COMMITTEE APPROVAL ANNUALLY, AND SUCH APPROVAL IS RECORDED IN THE MINUTES. EXECUTIVE COMPENSATION REVIEW WAS LAST COMPLETED IN DECEMBER 2017. FORM 990, PART VI, LINE 19 AVAILABILITY OF GOVERNING DOCUMENTS, COI POLICY & FINANCIAL STATEMENTS: THE SUTTER HEALTH SYSTEM POSTS ITS CURRENT AND PAST AUDITED FINANCIAL STATEMENTS AT SUTTERHEALTH.ORG. OTHER DOCUMENTS ARE ALSO LOCATED AT THIS WEBSITE INCLUDING THE ANNUAL REPORT, MISSION STATEMENT, HISTORY, AND LINKS TO AFFILIATE WEBSITES. THE GOVERNING DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC AT THIS TIME. FORM 990, PART VII, SECTION A COMPENSATION OF BOARD MEMBERS: THE FOLLOWING BOARD MEMBERS OF THE ORGANIZATION ARE FULL-TIME EMPLOYEES (40 HOURS PER WEEK) OF SUTTER HEALTH AND THEIR SUTTER HEALTH SALARY IS REPORTED HEREIN. THIS INDIVIDUAL RECEIVES NO COMPENSATION FOR THEIR SERVICE AS A BOARD MEMBER OF THIS ORGANIZATION. - JEFF GERARD - SARAH KREVANS EDWARD EISLER AND KATHERINE HSIAO'S COMPENSATION WAS FOR SERVICES PROVIDED AS AN INDEPENDENT CONTRACTOR AND NOT FOR SERVICES PROVIDED AS A BOARD MEMBER OF SBMF. FORM 990, PAXT XI, LINE 9 EQUITY TRANSFERS (NET) $ (322,739,691) K-1 ACTIVITY $ (4,254,398) PARTNERSHIP INCOME ON BOOKS $ 4,180,642 ANNUITY TRUE-UP $ (214,408) CHANGE IN SPLIT INTEREST $ (22,928) TRANSFER FROM SEBMF - MERGER $ 69,995,837 TRANSFER FROM SWBMF - MERGER $ 109,311,534 ------------------ TOTAL $ (143,743,412) =================== FORM 990 PART IX LINE 11G DESCRIPTION:MEDICAL GROUP COMPENSATION TOTAL FEES:XXX-XX-XXXX FORM 990 PART IX LINE 11G DESCRIPTION:THERAPIST/OTHER MEDICAL TOTAL FEES:7412089 FORM 990 PART IX LINE 11G DESCRIPTION:PROFESSIONAL FEE - PHYSICIAN TOTAL FEES:1527957 FORM 990 PART IX LINE 11G DESCRIPTION:NURSE REGISTRY FEES TOTAL FEES:1448759 FORM 990 PART IX LINE 11G DESCRIPTION:NON-PHYSICIAN MEDICAL TOTAL FEES:37029 FORM 990 PART IX LINE 11G DESCRIPTION:CONTRACTED- AIDES TOTAL FEES:1391 ADOLESCENT TREATMENT CENTERS INC C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 680088443 HEALTHCARE CA 501(C)(3) 3 SUTTER EBH true BETTER HEALTH EAST BAY FOUNDATION C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 510160184 FUNDRAISING CA 501(C)(3) 7 SUTTER EBH true CALIFORNIA PACIFIC MEDICAL CTR FOUND C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942728423 FUNDRAISING CA 501(C)(3) 7 SUTTER BH true EAST BAY PERINATAL CENTER C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 510172285 HEALTHCARE CA 501(C)(3) 3 SUTTER EBH true EDEN MEDICAL CENTER C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942948100 HEALTHCARE CA 501(C)(3) 10 SUTTER HLTH true MEMORIAL HOSPITAL FOUNDATION C/O SH TAX 2200 RIVER PLAZA DR SACRAMENTO CA 95833 942290244 FUNDRAISING CA 501(C)(3) 12A - 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