2018-05-15T18:36:22-05:00 2017-06-30 GRANT THORNTON LLP 171 N CLARK ST SUITE 200 CHICAGO IL 60601 990 2016-07-01 510659139 Verity Business Services % MUKESH SANGHVI VERI 6505516700 2040 E Mariposa Avenue El Segundo CA 90245 DAVID SACHS cfo 4243670711 2018-05-15 true bridget t roche cpa P00666837 3128560200 2016 2022-09-23 18:48:47Z X Richard Adcock 2300 E Imperial Highway El Segundo CA 90245 13244504 false 6153 X N/A X 2007 CA VBS PROVIDES ESSENTIAL SERVICES FOR THE HOSPITALS OF VHS, INCLUDING PATIENT FINANCIAL SERVICES, ACCOUNTING FOR CHARITY CARE, PAYROLL, ACCOUNTS PAYABLE AND BUDGETING, AMONG OTHERS. 4 0 297 0 0 0 0 17019085 13244504 0 0 0 0 17019085 13244504 0 0 0 0 11637333 9590050 0 0 0 5381752 3654454 17019085 13244504 0 10279102 14208217 8155483 12084598 2123619 2123619 X VERITY BUSINESS SERVICES ("VBS") IS ORGANIZED TO SUPPORT THE PURPOSES OF VERITY BY (I) ARRANGING FOR THE PROVISION OF HEALTHCARE SERVICES, INCLUDING THE OPERATION AND MAINTENANCE OF AMBULATORY CARE CLINICS AND RELATED FACILITIES, (II) PROMOTING RESEARCH RELATED TO HEALTHCARE SERVICES, (III) PROVIDING HEALTHCARE SERVICES TO ALL PERSONS WITHOUT REGARD TO THEIR ABILITY TO PAY, (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 OTHER HEALTHCARE FACITLITIES AFFILIATED WITH VERITY. false false 13244504 0 13244504 VBS PROVIDES ESSENTIAL SERVICES FOR THE AFFILIATED HOSPITALS OF VERITY HEALTH SYSTEM, INCLUDING ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, SAINT LOUISE REGIONAL HOSPITAL, O'CONNOR HOSPITAL, AND SETON MEDICAL CENTER. THESE SERVICES INCLUDE: PATIENT FINANCIAL SERVICES (INCLUDING IMPLEMENTING THE FINANCIAL PROVISIONS OF THE HOSPITALS' CHARITY CARE POLICIES); ACCOUNTING FOR THE FINANCIAL VALUE OF THE COMMUNITY BENEFITS PROVIDE BY THE HOSPITALS; PROVIDING GENERAL ACCOUNTING SUPPORT; PAYROLL; ACCOUNTS PAYABLE; BUDGETING; DECISION SUPPORT AND FINANCIAL ANALYSIS; COST REPORT PREPARATION; AND SIMILAR SERVICES ESSENTIAL TO THE OPERATIONS OF THE HOSPITALS AFFILIATED WITH VERITY. 13244504 true false false false false false false false false false true false false true true true false true false false false false false false false false false false false true false false false false false false false false false false false false false true false false false true 311 297 true 297 true false false false false false false false false false false X 4 0 false true true false true true true true true false false true true true true true true true true false CA X MUKESH SANGHVI 6509915427 1500 SOUTHGATE AVE daly city CA 94015 Todd Schroeder Dir. Reimb. & Rev. Svcs & CFO 40.0 0.0 X X 240185 0 11834 Ty Conner Chair, Pres, CEO, & Treasurer 40.0 0.0 X X 86350 0 4552 Sarang Tatimatia VP Op Finance & Secretary 40.0 0.0 X X 101441 0 2583 Andrei Soran Board Member (Ex-officio) 1.0 7.0 X X 0 0 0 Tina Cordero Financial Reporting Dir & CRO 40.0 0.0 X 153787 0 24408 Juliana Wang Senior Manager, Accounting 40.0 0.0 X 111042 0 45493 Jonathan Vergara Reimbursement Manager 40.0 0.0 X 117394 0 24408 Yuelie Wu Manager, Accounting 40.0 0.0 X 117411 0 30818 wahid Choudhury controller 40.0 0.0 X 125000 0 0 paul houle temp. assistant controller 40.0 0.0 X 122000 0 6098 1174610 0 150194 19 false true false Jeffer Mangels Butler Mitchell LLC PO BOX 1263 PASADENA CA 91199 LEGAL SERVICE 134136 WIPFLI LLP PO BOX 3160 MILWAUKEE WI 53201 CONSULTING 242603 2 0 SUPPORT SERVICES 900099 13244504 13244504 13244504 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 13244504 13244504 0 0 0 0 757756 757756 0 6671860 6671860 266300 266300 1383305 1383305 510829 510829 556779 556779 110281 110281 0 0 0 0 365396 365396 0 219312 219312 54446 54446 0 1582472 1582472 63856 63856 0 0 0 0 96481 96481 12620 12620 PROPERTY TAXES 234226 234226 . 0 . 0 . 0 358585 358585 13244504 13244504 0 0 0 0 53404 104439 0 0 394118 240912 0 0 0 0 0 0 0 0 151507 172608 3711145 3478596 293959 232549 0 0 0 0 0 0 0 0 9386114 13457709 10279102 14208217 1365692 1416016 0 0 479597 227084 0 0 0 0 0 0 0 0 0 0 6310194 10441498 8155483 12084598 X 2123619 2123619 0 0 0 0 2123619 2123619 10279102 14208217 0 X false true X true false X X 5 SETON MEDICAL CENTER 912154441 3 true 2781346 0 O'CONNOR HOSPITAL 912154436 3 true 2913791 0 ST VINCENT MEDICAL CENTER 912154438 3 true 2516456 0 SAINT LOUISE REGIONAL HOSPITAL 912154437 3 true 927115 0 ST FRANCIS MEDICAL CENTER 912154439 3 true 4105796 0 5 13244504 0 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 VERITY BUSINESS SERVICES IS APPOINTED BY VERITY HEALTH SYSTEM, ITS SOLE CORPORATE MEMBER. THE BOARD OF DIRECTORS OF ALL OF THE SUPPORTED ORGANIZATIONS OF VERITY BUSINESS SERVICES (ST. FRANCIS MEDICAL CENTER, ST. VINCENT MEDICAL CENTER, SAINT LOUISE REGIONAL HOSPITAL, O'CONNOR HOSPITAL, SETON MEDICAL CENTER) ARE ALSO APPOINTED BY VERITY HEALTH SYSTEM, THEIR SOLE CORPORATE MEMBER. 144061 142654 1407 373959 367339 6620 3193125 2968603 224522 232549 DUE FROM RELATED ORGANIZATIONS 13457709 13457709 0 DUE TO RELATED ORGANIZATIONS 10441498 10441498 X SCHEDULE D, PART X, LINE 2 Verity Health System and its affiliated not-for-profit entities have received favorable determination letters from the Internal Revenue Service, stating that they are exempt from federal income tax under the provisions of Section 501(a) of the Internal Revenue Code of 1986 (IRC) as organizations described in Sections 501(c)(3), except from income taxes pertaining to unrelated business income. Verity Heath System has for-profit partnerships and LLC entities. Income taxes by either the for-profit or not-for-profit entities are immaterial to the consolidated financial statements. Uncertain tax positions are recorded if the positions are more likely than not to be sustained on the basis of the technical merits of the positions. For the year-ended June 30, 2017, there are no material uncertain positions under Fin 48 (ASC 740) disclosed in the footnotes to the consolidated financial statements of Verity Health System OF California, inc. X X X X X false false false false false false false false false Tina Cordero Financial Reporting Dir & CRO 153787 0 0 0 0 0 0 0 24408 0 178195 0 0 0 Juliana Wang Senior Manager, Accounting 111042 0 0 0 0 0 0 0 45493 0 156535 0 0 0 Todd Schroeder Dir. Reimb. & Rev. Svcs & CFO 239488 0 0 0 697 0 7280 0 4554 0 252019 0 0 0 FORM 990, PART I, LINE 4 & FORM 990, PART VI, SECTION A, LINE 1B: THE BOARD MEMBERS OF VERITY BUSINESS SERVICES ARE NOT COMPENSATED FOR THEIR SERVICES AS BOARD MEMBERS, BUT ARE FULL-TIME EMPLOYEES OF THE SUPPORTED ORGANIZATIONS (OR THEIR SOLE CORPORATE MEMBER) AND SERVE AS BOARD MEMBERS AS A RESULT OF THEIR POSITIONS. ALL COMPENSATION RELATES TO SERVICES TO THE SUPPORTED ORGANIZATIONS (OR THEIR SOLE CORPORATE MEMBER). FORM 990, PART VI, SECTION A, LINE 3: THE ORGANIZATION 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 VERITY HEALTH SYSTEM OF CALIFORNIA, INC. ("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 THE ORGANIZATION. DURING THE JUNE 30, 2017 FISCAL YEAR, THE OFFICER POSITIONS (AS DEFINED BY THE FORM 990 INSTRUCTIONS AND BYLAWS OF THE ORGANIZATION) OF THE CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER WERE PROVIDED BY INTEGRITY HEALTHCARE, LLC FOR THE FULL FISCAL YEAR. IN ADDITION, THE KEY EMPLOYEE POSITIONS (AS DEFINED BY THE FORM 990 INSTRUCTIONS) OF CHIEF OPERATING OFFICER AND CHIEF MEDICAL OFFICER WERE ALSO PROVIDED BY INTEGRITY HEALTHCARE, LLC. -ANDREI SORAN, EX-OFFICIO OF VMF $1,875,229 FORM 990, PART VI, SECTION A, LINE 4: During the year ended June 30, 2017, the following changes were made to the VBS Bylaws: -Modified the language establishing the rights and powers of the corporate member (the corporate member must approve of the formation, merger or dissolution of affiliates) -Added language restricting the percentage of board members who can be Blue Mountain affiliates or Verity board members -Removed dissolution language, which is explained in the Articles of Incorporation -Some committee descriptions were deleted or modified FORM 990, PART VI, SECTION A, LINE 6: PRIOR TO DECEMBER 15, 2015, VERITY BUSINESS SERVICES (THEN KNOWN AS CARITAS BUSINESS SERVICES) HAD ONE CLASS A MEMBER AND THREE CLASS B MEMBERS, ALL OF WHICH ARE CALIFORNIA NONPROFIT CORPORATIONS. THEREAFTER AND GOING FORWARD, VERITY BUSINESS SERVICES HAS ONE MEMBER, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. FORM 990, PART VI, SECTION A, LINE 7A: EFFECTIVE DECEMBER 15, 2015, THE ORGANIZATION'S SOLE MEMBER, VERITY HEALTH SYSTEM OF CALIFORNIA, INC. ("VHS") HAS THE POWER TO FIX THE NUMBER AND APPOINT AND REMOVE THE TRUSTEES OF VERITY BUSINESS SERVICES. FORM 990, PART VI, SECTION A, LINE 7B: PRIOR TO DECEMBER 15, 2015, THE CLASS A MEMBER HAD THE POWER TO: (I) AMEND THE BYLAWS AND ARTICLES OF INCORPORATION, AND APPROVE, INTERPRET, AND CHANGE ANY STATEMENT OF MISSION, PHILOSOPHY, ROLE OR PURPOSE OF THE ORGANIZATION; (II) APPROVE ANY MERGER, DISSOLUTION, CONSOLIDATION OR REORGANIZATION OF THE ORGANIZATION; AND (III) APPROVE DEBT AUTHORIZED BY THE BOARD OF DIRECTORS AND APPROVE THE DISPOSITION OF THE ASSETS OF THE ORGANIZATION AT THE TIME OF ITS DISSOLUTION. THE CLASS B MEMBERS HAD THE RIGHT TO: (I) APPROVE CAPITAL AND OPERATING BUDGETS, LONG-RANGE FINANCIAL AND STRATEGIC PLANS, AND INTERNAL AUDITING PROGRAMS OF THE ORGANIZATION, AND (II) APPROVE THE PROCESS AND CRITERIA FOR THE EVALUATION OF THE EXECUTIVE DIRECTOR OF THE CORPORATION. EFFECTIVE DECEMBER 15, 2015, AS THE SOLE MEMBER OF VERITY BUSINESS SERVICES, VERITY HEALTH SYSTEM OF CALIFORNIA, INC., HAS THE POWER TO TAKE OR APPROVE THE FOLLOWING ACTIONS AS IT RELATES TO VERITY BUSINESS SERVICE: (1) APPROVE OR CHANGE THE MISSION, ROLE, AND PURPOSE OF THIS ORGANIZATION; (2) AMEND THE BYLAWS AND ARTICLES OF INCORPORATION (OR AUTHORIZE THE BOARD OF TRUSTEE TO DO SO); (3) APPROVE THE FORMATION, MERGER, DISSOLUTION, CONSOLIDATION, DIVESTITURE, CLOSURE, CHANGE IN CORPORATE MEMBERSHIP OR CONTROL AND REORGANIZATION OF EACH DIRECT AFFILIATE OF THIS CORPORATION; (4) FIX THE NUMBER AND APPOINT AND REMOVE THE TRUSTEES OF THIS CORPORATION; (5) APPOINT AND REMOVE THE CHAIRPERSON OF THE BOARD AND PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS CORPORATION AND OF EACH DIRECT AFFILIATE OR SUBSIDIARY OF THIS CORPORATION; (6) APPROVE THE MERGER, CONSOLIDATION, REORGANIZATION, DISSOLUTION, OR DISPOSITION OF ASSETS OF THIS CORPORATION OR ANY DIRECT AFFILIATE OF THIS CORPORATION; (7) APPROVE THE ACQUISITION, SALE, LEASE, MORTGAGE, TRANSFER OR OTHER ALIENATION OF REAL OR PERSONAL PROPERTY OF THIS CORPORATION; (8) APPROVE THE CAPITAL AND OPERATING BUDGETS; (9) APPROVE THE INCURRENCE OF DEBT OR GUARANTIES; (10) ESTABLISH POLICY AND PROCEDURES CONCERNING FINANCE AND RESOURCES; (11) ESTABLISH CRITERIA FOR THE LONG-RANGE FINANCIAL AND STRATEGIC PLANS OF THE CORPORATION; (12) ESTABLISH AN INTERNAL AUDITING PROGRAM AND APPROVE ANY MATERIAL ELEMENT OF THE INTERNAL AUDITING PROGRAM; (13) APPROVE CAPITAL EXPENDITURES; (14) APPROVE THE TRANSFER OF FUNDS, BY GIFT OR LOAN, BETWEEN THIS CORPORATION AND ONE OR MORE OTHER AFFILIATES OF VERITY HEALTH SYSTEM OF CALIFORNIA, INC.; AND (15) APPROVE ANY OTHER ACTION BY THIS CORPORATION OR FOR ANY AFFILIATE CONTROLLED BY THIS CORPORATION THAT HAS BEEN ESTABLISHED BY RESOLUTION OF THE CORPORATE MEMBER AS REQUIRING ITS APPROVAL, INCLUDING, BUT NOT LIMITED TO, ANY APPROVALS OF AUTHORITY NECESSARY TO ENSURE COMPLIANCE WITH ANY CREDIT AGREEMENT, MASTER INDENTURE OR LOAN AGREEMENT TO WHICH THIS CORPORATION IS A PARTY. FORM 990, PART VI, SECTION B, LINE 11B: THE ORGANIZATIONS 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 ORGANIZATIONS 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 VERSION FORM 990 IS DISTRIBUTED TO THE ORGANIZATIONS BOARD OF DIRECTORS FOR REVIEW. 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 CONFLICT 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 & CEOS OF THE INDIVIDUAL AFFILIATES WITHIN THE HEALTH SYSTEM REPORT THE CONFLICT OF INTEREST FINDINGS AND RESOLUTIONS TO THEIR RESPECTIVE BOARD OF DIRECTORS. THIS POLICY IS REVIEWED ANNUALLY FOR COMPLIANCE BY VHS'S CORPORATE RESPONSIBILITY OFFICER. FORM 990, PART VI, SECTION B, LINES 15A AND 15B: Verity Medical Foundation is paid through a common paymaster, Verity Health System (VHS), the president and CEO of each hospital is 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, including Verity Medical Foundation. MARKET DATA ANALYSES ARE MADE OF COMPARABLE ORGANIZATIONS WITHIN THE INDUSTRY AND WITHIN THE REGION. TOTAL COMPENSATION IS ESTABLISHED FOR ALL EXECUTIVE POSITIONS TO TARGET SIMILAR TOTAL COMPENSATION OF COMPARABLE ORGANIZATIONS MARKET COMPENSATION. BASE PAY IS ESTABLISHED FOR ALL EXECUTIVE POSITIONS TO TARGET THE MEDIAN RAGE OF COMPARABLE ORGANIZATION MARKET COMPENSATION. 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. FORM 990, PART VI, SECTION C, LINE 19: THE AUDITED FINANCIAL STATEMENTS AND FORM 1023 ARE MADE AVAILABLE TO THE PUBLIC UPON REQUEST. THE ARTICLES OF INCORPORATION, BYLAWS, AND CONFLICT OF INTEREST POLICY ARE NOT MADE AVAILABLE TO THE PUBLIC. Robert F Kennedy Medical Center Found 2040 E Mariposa Avenue El Segundo CA 90245 953745227 Inactive CA 501(c)(3) 12-I VHS false ST FRANCIS MEDICAL CENTER FOUNDATION 2300 E IMPERIAL HWY 5TH FL EL SEGUNDO CA 90245 953190773 HOSP SUPPORT CA 501(C)(3) 12-I VHS false ST VINCENT FOUNDATION 2300 E IMPERIAL HWY 5TH FL EL SEGUNDO CA 90245 953922511 HOSP SUPPORT CA 501(C)(3) 12-I VHS false Marillac Insurance Company LTD PO Box 69 Grand Cayman CJ KY1-1102 980417930 Insurance CJ VHS C Corp false ROBERT F KENNEDY MEDICAL CENTER 2040 E Mariposa Avenue el segundo CA 90245 912154440 INACTIVE CA VHS C Corp false St Vincent De Paul Ethics Corporation 2040 E Mariposa Avenue el segundo CA 90245 954426405 inactive CA VHS c corp false false false false true true false false false false false false true false false false false false false false