2018-11-12T10:50:59-00:00 2017-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2017-01-01 263763656 Virginia Mason Institute VIRG 2063411600 1100 Ninth Avenue Seattle WA 98101 Gary Kaplan MD Chairman and CEO 2018-11-12 true Sue Robison 2069134000 2018-11-12 204.147.223.1 2018-11-12 17:45:44 PS P 3BF9F3C1D5421FE41D537B7E0F61F32192DE8497 3BF9F3C1D5421FE41D537B7E0F61F32192DE8497 2017 2019-02-21 02:37:17Z Gary Kaplan MD 1100 Ninth Avenue Seattle WA 98101 9071964 false X www.vmmc.org/vmi X 2008 WA Virginia Mason Institute has created a vision to become the primary resource and inspiration to transform health care and improvement of patient safety, patient experience and the quality and value of health care. 5 3 0 38 0 138 335 10442611 9032000 62109 25069 19751 14560 10524609 9071964 0 0 4925602 5178010 0 0 2175021 1850072 7100623 7028082 3423986 2043882 16882023 19680276 7524339 8278710 9357684 11401566 X Virginia Mason Institute, a nonprofit education and training organization, has created a vision to become the primary resource and inspiration for those who seek to transform health care and a mission to relentlessly pursue the improvement of patient safety, patient experience and the quality and value of health care. Continued on Schedule O. false false 770548 1666479 Education Services Through education services, Virginia Mason Institute delivers learning activities-in Seattle at the Institutes facility and onsite at other health care organizations internationally - that inspire, engage and motivate individuals to transform health care. Using case studies, hands-on exercises, panels featuring VMPS practitioners and health care providers, medical facility tours that showcase VMPS in action, simulations and coaching, the Institutes education services equip particpants with new skills, new ideas and continuing medical educatioin credits. Most significantly, participants learn how Virginia Mason consistently puts the patient first in everything it does, and they leave inspired to create their own patient-centered processes in their daily work with and for patients. In 2017, through education services, the institute delivered 145 days of training to 532 participants. 3348499 7241866 Transformation Services Through the provision of transformation services, Virginia Mason Institute educators work onsite within health care organizations to help them build organizational capability to create and sustain a culture of continuous improvement through the practical application and embedment of the tools and methods of Virginia Masons proprietary management method, the Virginia Mason Production System VMPS. In 2017, Virginia Mason Institute partnered with and provided transformation services to 26 health care organizations worldwide, with the services directly impacting and influencing employees and patients across all areas of those organizations. 57176 123655 Research and Clinical Value Stream Licensure Virginia Mason Institute researches best practices in evidence-based medicine to develop clinical value streams, which are standardized patient care pathways that offer patients rapid access to evidence-based care for clinical conditions. One method of developing the clinical value streams uses a marketplace collaborative model in which employers, providers and payers work together to redesign the health care delivery for defined conditions, with the specific goals of achieving same-day access to treatment, 100 patient satisfaction, rapid return to function, evidence-based care and affordable costs. Each clinical value stream includes urgent/emergent guidelines, standard work and other tools, patient education resources and evidence-based guidelines for recommended treatment. In 2017, Virginia Mason Institute shared its clinical value stream tools, procedures and knowledge within the Virginia Mason system and with one external health care organization. 273387 4449610 true false false true false false false false false false true false false false true true false true false false true false false false false false false false false true false false false false false false false false false false false false false false false false true false false false false true 0 0 0 false false false false false false false false false false false X 5 3 false true false false true true true true true false false true true true true true true true true false X MaryAnne Olmstead 2066257371 1100 Olive Way Suite 605 Seattle WA 98101 Carolyn Corvi Director 002.00 004.00 X 0 0 0 Gary S Kaplan MD Director, Chairman 002.00 053.00 X X 0 1127597 68995 Robert Lemon Director 002.00 004.00 X 0 0 0 James Orlikoff Director 002.00 004.00 X 0 0 0 James Young Director 002.00 002.00 X 0 0 0 Suzanne Anderson Secretary/Treasurer 002.00 052.00 X 0 648716 136326 Craig Goodrich Senior Vice President, CFO 002.00 052.00 X 0 333767 36934 Sarah Patterson Executive Director 025.00 025.00 X 0 335199 44945 Henry Otero MD Faculty Instructor 050.00 X 0 326793 39428 Celeste Derheimer Transformation Sensei 050.00 X 0 157701 29927 Susanna Garritano Account Executive 050.00 X 0 185523 7902 Gordon Sansaver Operations Director 050.00 X 0 168985 39123 Rhonda Stewart Transformation Sensei 050.00 X 0 153097 18079 Diane Miller Former Key Employee 040.00 010.00 X 0 84889 18011 Kirsten Turner Former Key Employee 050.00 X 0 95532 21803 3617799 461473 true true false Deloitte Consulting LLP PO Box 844717 Dallas TX 75284 Consulting Services 103039 1 335 335 Education Services 541610 1666479 1666479 Transformation Services 541610 7241866 7241866 Licensure 541610 123655 123655 9032000 25069 25069 14560 14560 9071964 9032000 39629 0 0 0 0 282398 282398 0 3818295 2617387 1200908 0 1077317 652389 424928 0 0 437 123 314 0 0 0 135069 51881 83188 220684 106930 113754 43631 36864 6767 72269 20376 51893 0 352212 220899 131313 404475 343976 60499 0 0 0 0 164138 100568 63570 0 Direct program costs 269524 118414 151110 Business licenses/taxes 173718 173571 147 Minor equipment 10685 5356 5329 3230 876 2354 7028082 4449610 2578472 0 4101055 2427388 11488060 359888 16484005 1265532 496649 933020 768883 16882023 19680276 7300007 8236710 224332 42000 7524339 8278710 X 9357684 11401566 9357684 11401566 16882023 19680276 2043882 X false true X true false X 0 0.00000 36 273 138 335 782 4218294 5551689 8433620 10442611 9032000 37678214 4218294 5551725 8433893 10442749 9032335 37678996 37678996 11839 41046 51694 81860 39629 226068 0 11839 41046 51694 81860 39629 226068 0 0 4230133 5592771 8485587 10524609 9071964 37905064 0.99400 0.99390 0.00600 0.00610 X X 175481 108767 284248 7028082 1586599943 7028082 1586884191 501404 1000000 125351 250000 1000000 1000000 1000000 1000000 4000000 6000000 138835 154766 275782 284248 853631 250000 250000 250000 250000 1000000 1500000 119335 108173 163134 175481 566123 false false false false false false false false false false false II-A A Virginia Mason Institute, EIN 26-3763656, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures, 0 Excess Lobbying Expenditures. II-A A continued Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Electing member. Grassroots Lobbying Expenditures 133,387 Direct Lobbying Expenditures 48,767. Excess Lobbying Expenditures 0. Tax year ending December 31, 1998 was the first year in which Virginia Mason Medical Center made the election under Section 501h. The election was not revoked before the start of the tax year ending December 31, 2017. II-A A continued Virginia Mason Health System, EIN 91-1351110, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0 II-A A continued Benaroya Research Institute at Virginia Mason, EIN 91-0653422, 1201 Ninth Avenue, Seattle, WA 98101. Non-electing member. 0 Lobbying Expenditures. Excess Lobbying Expenditures 0. II-A A continued Yakima Valley Memorial Hospital Association, EIN 91-0567263, 2811 Tieton Drive, Yakima, WA 98902. Non-electing member. 42,094 Grassroots Lobbying Expenditures 60,000 Direct Lobbying Expenditures. Excess Lobbying Expenditures 0. false 920562 341419 579143 344970 155230 189740 768883 Financial derivatives and other financial products Closely-held equity interests Federal income taxes X 9046721 9046721 25243 25243 9071964 5991609 5991609 1036473 1036473 7028082 X 2 U.S. GAAP require management to evaluate tax positions taken by the Institute and recognize a tax liability or asset if the Institute has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. Management has analyzed tax positions taken by the Institute and has concluded that as of December 31, 2017, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or asset or disclosure in the consolidated financial statements. The Institute is subject to routine audits by taxing jurisdiction however, there are currently no audits for any tax periods in progress. The Institutes management believes it is no longer subject to income tax examinations for years prior to 2014. XI 4b Additional revenues included on Virginia Mason Medical Centers books not reclassified to Virginia Mason Institutes books of 25,242. XII 4b Additional expenses included on Virginia Mason Medical Centers books not reclassified to Virginia Mason Institutes books of 1,036,473. Europe Program services Education 559834 East Asia and the Pacific Program services Education 28344 North America Program services Education 1615 589793 589793 false false false false false false Part I Line 3 Expenditures are actual expenses incurred for services provided outside of the United States based on individual expense reports and departmental expense tracking. false true false false false false false false false Gary S Kaplan MD Director, Chairman 1103978 285 23334 27255 41740 1196592 Suzanne Anderson Secretary/Treasurer 628038 98 20580 105470 30856 785042 Sarah Patterson Executive Director 318342 200 16656 14846 30100 380144 Diane Miller Former Key Employee 80398 4491 14846 3165 102900 Henry Otero MD Faculty Instructor 326500 293 38975 453 366221 Celeste Derheimer Transformation Sensei 157578 123 11899 18028 187628 Susanna Garritano Account Executive 129012 56511 7902 193425 Gordon Sansaver Operations Director 153715 15270 12862 26261 208108 Kirsten Turner Former Key Employee 88384 7148 7747 14056 117335 Craig Goodrich Senior Vice President, CFO 328675 132 4960 14846 22088 370701 Rhonda Stewart Transformation Sensei 152882 215 10957 7122 171176 Part I Line 3 The compensation for the Executive Director is paid by the Medical Center, a related organization. The Executive Directors compensation is approved by the Medical Center Board of Directors Compensation and Benefits Committee. The Committee receives support and advice including appropriate market comparability data from an independent consultant with expertise in the health care industry and access to relevant market data. See Schedule O for further disclosure. Part I Line 4b The Medical Center has a Supplemental Executive Retirement Plan SERP. The SERP is a 457f nonqualified deferred compensation plan pursuant to which plan benefits are subject to a substantial risk of forfeiture. The plan was approved by the Boards Compensation and Benefits Committee, a committee composed of independent board members to whom the Board delegates the authority to approve compensation and benefits for the Medical Centers most senior executives. The Committee receives advice from an independent compensation consultant to ensure that compensation and benefits, including the SERP, are market competitive and reasonable. Supplemental Executive Retirement Plans such as this are customary for senior executives in the health care industry. Part I Line 4b Suzanne Anderson accrued benefits in a Supplemental Executive Retirement Plan of 90,625. Form 990, Part III, Line 1 continued To realize its goals the Institute prepares, guides and inspires health leaders, providers and staff to believe that the perfect patient experience is possible and empowers them to dramatically improve their patients lives. This is accomplished by educating other organizations, through the sharing of knowledge and experience, about the Virginia Mason Production System VMPS, which is Virginia Mason Medical Centers management methodology that focuses on delivering the highest quality products through the elimination of waste and defects. The Institutes educational activities are delivered by a team of experienced physicians, nurses and other health care leaders rigorously trained in the Virginia Mason Production System. These activities benefit patients and the community when health care providers use their new knowledge to eliminate unnecessary waste from processes, improve health care quality and reduce the cost of health care delivery to patients locally, nationally and internationally. Form 990, Part VI, Section A, Line 3 Virginia Mason Medical Center VMMC, a Washington nonprofit corporation qualified as tax exempt under Section 501a of the Internal Revenue Code as an organization described in Section 501c3, is the sole member of Virginia Mason Institute VMI. VMI contracts with VMMC pursuant to the terms of a Management Services Agreement for the provision of certain management services including leased personnel and operations support services. VMMC is the sole employer of all leased personnel and retains full control over the terms and conditions of employment. The VMI Executive Director is employed by VMMC as Executive Director and reports to the VMHS Chairman and Chief Executive Officer. The VMI Executive Director is responsible for the overall operations of VMI. Form 990, Part VI, Section A, Line 6, 7 Virginia Mason Medical Center VMMC is the sole corporate member of Virginia Mason Institute. VMMC as the sole member has the following approval rights a election or appointment of the Directors and Officers of the Board of Directors b removal of Directors and Officers of the Board of Directors c approval of all long-range plans proposed by the Board of Directors d approval of the annual capital and operating budgets proposed by the Board of Directors e approval of the borrowing of funds where the amount is in excess of Five Hundred Thousand Dollars 500,000 f approval of the sale, lease, exchange, mortgage, pledge or disposal of all or substantially all of the property and assets g approval of all amendments to the Articles of Incorporation or Bylaws and h all other rights and powers as specified in the Washington Nonprofit Corporation Act. Form 990, Part VI, Section B, Line 11b The Audit and Compliance Committee ACC, a committee composed of independent community members of the Medical Center Board of Directors is responsible for oversight of the annual VMI Form 990 preparation process including a selection, engagement, and performance of an independent tax preparer b review of the annual draft Form 990 tax return and c recommending the final Form 990 tax return for review to the VMI Board of Directors. At the ACC September meeting, management provides the ACC with an initial draft of the Form 990 and the tax preparer presented an overview of the Form 990 preparation process. In October, a revised draft of the Form 990 is provided to the ACC Chair for further review and comment. The final draft Form 990 is reviewed and approved by the ACC in November, followed by VMI Board review of the final Form 990 prior to filing. The final Form 990 tax return is provided to each member of the VMI Board of Directors via electronic delivery by posting on a secure website which allows online view of Board documents. Form 990, Part VI, Section B, Line 12c The Governance Committee of the VMMC Board has delegated accountability for oversight of the process for disclosure, evaluation and management of conflict of interest involving any member of the VMI Board, executive leadership or key employees Covered Person. Pursuant to the Conflict of Interest Policy, an annual conflict of interest questionnaire is distributed to all Covered Persons. In addition, a Covered Person has an on-going duty to disclose the existence of a conflict of interest at any time an actual or potential conflict arises. Each Covered Person is required upon appointment and annually thereafter to attest to a statement that affirms that such person has a received a copy of the Conflict of Interest Policy b has read and understands the Policy c has agreed to comply with the Policy and d understands that Virginia Mason is a charitable organization and that in order to maintain its federal tax exemption must engage primarily in activities that accomplish its tax-exempt purposes. Written disclosures are reviewed by the Governance Committee to determine if an actual or potential conflict of interest exists and if so, how it should be managed. The Covered Person is informed in writing regarding the determination the Conflict of Interest Management Plan. No Covered Person with an actual or potential conflict of interest shall engage in an activity on Virginia Mason Institutes behalf related to the disclosed actual or potential Conflict of Interest unless such activity is permitted by the Conflict of Interest Management Plan or until the Covered Person has undertaken all steps set forth in the Management Plan to manage, reduce or eliminate the conflict. All Covered Persons have a duty to disclose the existence of any actual or potential conflict of interest with respect to meeting agenda items. The Conflict of Interest Policy requires that copies of the Conflict of Interest Questionnaires completed annually by each Covered Person and by Conflict of Interest Management Plan be maintained. In addition, the minutes of the board and all committees with board-delegated powers shall document the disclosure and resolutions of any actual or potential conflict of interest disclosed at such meeting. Form 990, Part VI, Section B, Line 15 The VMHS Compensation and Benefits Board Committee CBC, a committee composed solely of independent directors none of whom have a conflict of interest, has been delegated responsibility for setting reasonable total compensation packages for each executive, including the VMI Executive Director, officers and key employees Executive consistent with Virginia Masons philosophy and principles. The Board develops and approves annual goals and performance criteria which are used in determining merit increases and variable compensation opportunities for the Executives. The CBC assesses performance against these goals. The CBC selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefit packages to the Executives. The CBC as part of its analysis obtains from the compensation consultant appropriate comparability data including total compensation paid by similarly situated for profit and nonprofit organizations for positions that are functionally comparable to each of the Executives. With respect to those Executives below the level of Virginia Mason Medical Center Chair/Chief Executive Officer, the CBC requests that the Chair/Chief Executive Officer work with the compensation consultants to formulate a compensation recommendation for each such Executive, consistent with Virginia Masons compensation philosophy and principles. The CBC will consider the significant terms of the agreement with each Executive including the total compensation to be paid and the employees duties and responsibilities. Consistent with Virginia Masons compensation philosophy and principles, the CBC approves total compensation packages for each of the Executives based on information presented to the CBC, reasonableness and the best interest of Virginia Mason. The CBCs decisions regarding compensation for each Executive are documented in written resolutions and minutes of the CBC. The CBC promptly reports its action to the Board which reports are reflected in the Boards minutes. The Executives that were reviewed in 2017 included the VMI Executive Director, all officers and all key employees. Form 990, Part VI, Section C, Line 19 The organizations Articlels, Bylaws, Conflict of Interest Policy, and Financial Statements are made available upon request. Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 Health Care WA 501c3 3-Hospital VMHS false Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7-Support General N/A true Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 Research WA 501c3 4-Research VMHS false Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 Health Care WA 501c3 3-Hospital VMHS false false false false false false false false false false false false false false true true false false false false Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 7028082 7028082 4429 1107 0 0 0 Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 X 133387 48767 182154 1029259579 1029441733 648719 162180 0 0 0 Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 0 0 0 12576341 12576341 7925 1981 0 0 0 Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 0 0 0 71612353 71612353 45128 11282 0 0 0 Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 42094 60000 102094 466123588 466225682 293799 73450 0 0 0