2018-09-17T16:25:31-05:00 2017-10-31 390859910 Baker Tilly Virchow Krause LLP 225 S 6th St 2300 Minneapolis MN 55402 990 2016-11-01 840563230 Vail Clinic Inc % VHH ACCOUNTING DEPARTMENT VAIL 9704797238 PO Box 40000 Vail CO 81658 HAROLD DUPPER CFO 9704797238 2018-09-17 1 Lawrence H Mohr CPA P00447603 6128764500 2018-09-17 38.88.188.75 2018-09-17 14:36:58 CD P 8E7B4B2323D592AC89F362C47B54D669E291C402 167182DFA60A41E45EAE2F4EF9C72CA9A698CA21 2016 2018-06-14 16:35:46Z Vail Health Hospital DORIS KIRCHNER PO Box 40000 Vail CO 81658 393761222 0 X www.vailhealth.org X 1965 CO VHH IS AN ACUTE CARE, GENERAL HOSPITAL AND ORTHOPEDIC REFERRAL CENTER. ITS PRIMARY MISSION IS TO PROVIDE SUPERIOR HEALTH SERVICES WITH COMPASSION AND EXCEPTIONAL OUTCOMES TO CITIZENS OF THE LOCAL COMMUNITY AND REGION. 10 8 1098 90 4988248 -467938 3198635 2937462 198146199 217158793 11871479 23998208 3199144 2261242 216415457 246355705 8943330 13680421 0 0 65867293 68047694 240335 7243 1812126 90855444 99835418 165906402 181570776 50509055 64784929 578918593 653337199 152753406 152144829 426165187 501192370 X VHH IS AN ACUTE CARE, GENERAL HOSPITAL AND ORTHOPEDIC REFERRAL CENTER. ITS PRIMARY MISSION IS TO PROVIDE SUPERIOR HEALTH SERVICES WITH COMPASSION AND EXCEPTIONAL OUTCOMES TO CITIZENS OF THE LOCAL COMMUNITY AND REGION. 0 0 130231514 13680421 213155758 SEE SCHEDULE O. 130231514 1 1 0 1 0 0 0 0 0 1 1 0 0 0 1 1 0 1 0 0 1 0 0 0 0 0 1 1 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 144 0 1098 1 1 1 0 0 0 0 0 0 0 0 0 X 10 8 0 0 0 0 1 1 1 1 1 0 0 1 1 0 1 1 1 1 1 1 0 X VHH Accounting Department 9704797238 PO Box 40000 Vail CO 81658 DORIS KIRCHNER PRESIDENT, CEO AND BOARD MEMBER 40.00 4.00 X X 694435 0 35738 ART KELTON CHAIRMAN OF THE BOARD 1.00 0.00 X X 0 0 0 JERRY GREENBERG MD BOARD MEMBER & PHYSICIAN 1.00 40.00 X 664670 0 54249 DICK CLEVELAND BOARD MEMBER 1.00 0.00 X 0 0 0 CHRIS JARNOT BOARD MEMBER 1.00 0.00 X 0 0 0 JEFF SHROLL BOARD MEMBER 1.00 0.00 X 0 0 0 WAYNE WENZEL MD BOARD MEMBER 1.00 0.00 X 0 0 0 ELLEN MORITZ BOARD MEMBER 1.00 0.00 X 0 0 0 HARRY FRAMPTON BOARD MEMBER 1.00 0.00 X 0 0 0 CHARLIE L'ESPERANCE BOARD MEMBER 1.00 0.00 X 0 0 0 FREDERICK SMITH CHIEF ADMINISTRATIVE OFFICER 40.00 0.00 X 291546 0 49456 TED SIROTTA CHIEF FINANCIAL OFFICER AND ASST TREASURER 40.00 3.00 X 336040 0 32989 HAROLD DUPPER CFO AND ASST TREASURER 1.00 43.00 X 0 0 0 PATRICIA HARDENBERGH MD PHYSICIAN 40.00 0.00 X 662772 0 46425 LAWRENCE GAUL MD PHYSICIAN 0.00 40.00 X 365245 0 29713 ALEXANDER URQUHART MD PHYSICIAN 40.00 0.00 X 457536 0 45899 JEFFREY RESNICK MD PHYSICIAN 0.00 40.00 X 356314 0 33337 NELSON PRAGER MD PHYSICIAN 0.00 40.00 X 637829 0 5370 CHARLES CREVLING FORMER CFO AND ASST TREASURER 0.00 0.00 X 300000 0 0 4766387 0 333176 133 1 1 0 GE JOHNSON CONSTRUCTION CO 40800 HIGHWAY 6 STE 8 AVON CO 81620 CONSTRUCTION 27993371 VAIL VALLEY EMERGENCY PHYSICIANS PC 27 MAIN STREET SUITE C301 EDWARDS CO 81632 PHYSICIAN SERVICES 4919750 CERNER CORPORATION PO BOX 410451 KANSAS CITY MO 64141 IT SERVICES 3192192 DIVERSIFIED RADIOLOGY 938 BANNOCK STE C300 DENVER CO 80204 RADIOLOGISTS 2481575 DENVER HEALTH & HOSPITAL AUTHORITY PO BOX 40411 DENVER CO 80204 TRAUMA SURGEONS 2320517 62 2937462 2937462 Net Patient Service Revenue 900099 140750599 139258065 1492534 Medicare/medicaid 900099 33625566 33625566 EQUITY IN EARNINGS OF SUBSIDIARIE 900099 26878116 26878116 PROVIDER FEE INCOME 900099 8344202 8344202 MANAGEMENT FEE INCOME 900099 3929602 3929602 3630708 121437 3495769 13502 217158793 7075909 -55 7075964 5253289 4676711 576578 576578 576578 159651105 142502498 226308 17148607 -226308 16922299 16922299 MISCELLANEOUS REVENUE 900099 999018 998770 248 CAFETERIA REVENUE 900099 685646 685646 1684664 246355705 213155758 4988248 25274237 X 13680421 13680421 2159123 718919 1440204 300000 300000 53998166 36323353 16116199 1558614 1886809 1322642 525004 39163 4984171 3137368 1747459 99344 4719425 3275127 1348285 96013 1018070 1018070 163155 163155 6282 6282 7243 7243 845007 845007 22130569 13778971 8341859 9739 1556738 115938 1440800 3040188 1088451 1951737 611089 109020 502069 2506740 525077 1981663 276929 161703 115226 176242 73016 103226 1085615 1085615 13389295 12272222 1117073 843794 6245 837549 Medical & other supplie 29533937 28706981 824946 2010 Bad debt expense 9071156 9071156 Repairs & Maintenance 8773356 147366 8625990 Provider Fee Expense 4336804 4336804 470452 295119 175333 181570776 130231514 49527136 1812126 7534 7222 25930557 31806057 7969948 5908343 19502961 22205002 7209974 7290497 4043795 4658408 334270381 160342629 154573823 173927752 333178183 367542317 7638024 13373974 13756254 21516664 5107540 5100963 578918593 653337199 34148376 34289308 115117204 115117204 207692 0 290252 26453 2989882 2711864 152753406 152144829 X 414886837 492053708 11278350 9138662 426165187 501192370 578918593 653337199 X 64784929 10279990 -37736 X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 6282 6282 0 Part II-B, Line 1: A PORTION OF THE DUES VAIL HEALTH HOSPITAL PAYS TO COLORADO HOSPITAL ASSOCIATION ARE FOR LOBBYING ACTIVITIES. 3787148 296823 587695 4671666 3343361 369350 74437 3787148 3511532 86600 -254771 3343361 3507859 50000 10337 56664 3511532 3343253 218740 54134 3507859 0.00000 0.80140 0.19860 0 1 1 6200687 6200687 198356959 68957597 129399362 1734525 1028877 705648 108958206 88493992 20464214 19020004 1862163 17157841 173927752 Unamortized bond issuance cost 2711864 2711864 X 247827824 10279990 4676711 14956701 232871123 13484582 13484582 246355705 172800641 4676711 4676711 168123930 13446846 13446846 181570776 Part V, Line 4: PERMANENTLY RESTRICTED NET ASSETS HAVE BEEN RESTRICTED BY DONORS TO BE MAINTAINED IN PERPETUITY. THESE ENDOWMENTS ARE HELD BY VAIL HEALTH SERVICE FOUNDATION FOR THE BENEFIT OF VAIL HEALTH HOSPITAL AND HAVE BEEN RESTRICTED FOR THE FOLLOWING PURPOSES: (1) FOR SUPPORT OF JACK'S PLACE, A CANCER CARING HOUSE. (2) FOR SUPPORT OF THE PROGRAMS AND CAPITAL PROJECTS OF VAIL HEALTH HOSPITAL. Part X, Line 2: VAIL CLINIC, INC. DBA VAIL HEALTH HOSPITAL IS EXEMPT FROM INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND A SIMILAR PROVISION OF STATE LAW. ACCORDINGLY, NO PROVISION FOR INCOME HAS BEEN MADE IN THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS. THE ORGANIZATION IS SUBJECT TO FEDERAL INCOME TAX ON ANY UNRELATED BUSINESS TAXABLE INCOME. THE ORGANIZATION FILES TAX RETURNS IN THE U.S. FEDERAL JURISDICTION. THE ORGANIZATION HAS NO UNCERTAIN TAX POSITIONS AT OCTOBER 31, 2017 AND 2016. Part XI, Line 2d - Other Adjustments: DIRECT RENTAL EXPENSES 4,676,711. Part XI, Line 4b - Other Adjustments: REVENUE PASSED THROUGH FROM CHA TRUST FOR WORKER'S COMPENSATION 113,430. BAD DEBT TREATED AS EXPENSE FOR TAX PURPOSES 9,071,156. GRANT EXPENSE NETTED AS REVENUE, TREATED AS EXPENSE FOR TAX PURPOSES 4,299,996. Part XII, Line 2d - Other Adjustments: DIRECT RENTAL EXPENSES 4,676,711. Part XII, Line 4b - Other Adjustments: BAD DEBT TREATED AS EXPENSE FOR TAX PURPOSES 9,071,156. GRANT EXPENSE NETTED AS REVENUE, TREATED AS EXPENSE FOR TAX PURPOSES 4,299,996. EXPENSE PASSED THROUGH FROM CHA TRUST FOR WORKER'S COMPENSATION 75,694. Central America and the Caribbean 0 0 INVESTMENTS N/A 13373973 0 0 0 0 0 0 13373973 0 13373973 1 0 1 1 0 0 Schedule F, Part I, Line (1), Column (F): Investments consist of funds that are invested in underlying hedge funds through a legal entity domiciled offshore. These investments represent less than 5% of Vail Health Hospital's total investments. 1 1 X 1 X 1 X 1 1 0 0 1243940 1243940 0.00690 15888476 13237032 2651444 0.01460 17132416 13237032 3895384 0.02150 932304 932304 0.00510 958807 958807 0.00530 26603 3140 23463 0.00010 14860456 14860456 0.08180 16778170 3140 16775030 0.09230 33910586 13240172 20670414 0.11380 1 9071156 25141917 40945924 -15804007 X 1 1 1 VAIL VALLEY SURGERY CENTER AMBULATORY SURGERY CENTER 0.50180 0.49820 1 1 VAIL CLINIC INC PO BOX 40000 VAIL CO 81658 WWW.VAILHEALTH.ORG 010911 X X X VAIL CLINIC INC 1 0 0 1 X X X X X X X X X 15 1 0 0 1 X https://www.vailhealth.org/about/research X 1 15 1 https://www.vailhealth.org/about/research 0 1 X 100.000000000000 350.000000000000 X X X X X 1 1 X X X X 1 X https://www.vailhealth.org/patients-visitors/financial-assistance X https://www.vailhealth.org/patients-visitors/financial-assistance X https://www.vailhealth.org/patients-visitors/financial-assistance X X X X X X 1 X 0 X X X X 1 X 1 1 VAIL CLINIC, INC. Part V, Section B, Line 5: IN CONDUCTING THE CHNA FOR EAGLE COUNTY, VAIL HEALTH HOSPITAL GATHERED DATA FROM A VARIETY OF SOURCES. PRIMARY DATA COLLECTION INVOLVED DATA FROM THREE DIFFERENT SURVEYS CONDUCTED IN EAGLE COUNTY, INCLUDING:1. VAIL HEALTH HOSPITAL COMMUNITY STAKEHOLDER QUESTIONNAIRE,2. EAGLE COUNTY IMMIGRANT SURVEY, AND3. THE EAGLE COUNTY PUBLIC HEALTH COMMUNITY HEALTH ASSESSMENT SURVEY.THE CHNA PROVIDES A DETAILED ANALYSIS OF THE CURRENT STATE OF HEALTH IN EAGLE COUNTY. THIS INFORMATION IS COMPARED TO BOTH LOCAL SURVEY FINDINGS REGARDING PERCEIVED HEALTH NEEDS AMONG RESIDENTS, AS WELL AS STATE AND NATIONAL BENCHMARKS TO HELP IDENTIFY COMMUNITY HEALTH NEEDS. THIS ANALYSIS ASSISTS IN DETERMINING AREAS OF COMMUNITY HEALTH IMPORTANCE AND POTENTIAL AREAS FOR EITHER IMPROVEMENT TO CURRENT PRACTICE OR NOVEL ENDEAVORS FOR THE ORGANIZATION TO ADDRESS COMMUNITY HEALTH NEEDS. THIS ASSESSMENT USED PRIMARY DATA COLLECTION COUPLED WITH SECONDARY DATA ANALYSIS TO IDENTIFY AND PRIORITIZE THE HEALTH NEEDS OF EAGLE COUNTY. VAIL CLINIC, INC. Part V, Section B, Line 11: DESCRIBE HOW THE HOSPITAL IS ADDRESSING THE SIGNIFICANT NEEDS IDENTIFIED IN THE MOST RECENT CHNA:1. ACCESS TO CARE - VAIL HEALTH HOSPITAL (VHH) HAS COMMITTED TO INCREASING ACCESS TO PRIMARY CARE CLINICS INCLUDING ADJUSTING COST STRUCTURES. VHH'S WALK IN CLINICS HEALTH CLINICS ARE IN VARIOUS STAGES OF DEVELOPMENT2. CANCER - INCREASE COLORECTAL SCREENING AWARENESS IN EAGLE COUNTY THROUGH A COUNTY WIDE MARKETING CAMPAIGN3. HEART DISEASE - CONSIDERATIONS FOR INCREASED COVERAGE OF THE CARDIAC CATHETERIZATION LAB WILL BE BASED ON PATIENT VOLUME AND COMMUNITY NEED.4. UNINTENTIONAL INJURY - VHH WILL PROVIDE FUNDING TO THE THINKFIRST PROGRAM TO EXPAND INJURY PREVENTION ACTIVITIES AS THERE IS A CURRENT LACK OF SIGNIFICANT ADULT INJURY PREVENTION PROGRAMS. VHH IS ALSO CURRENTLY RESEARCHING THE INFLUENCE OF THE RECENT LEGALIZATION OF MARIJUANA MAY HAVE ON THE PATTERNS OF AND SEVERITY OF SKI AND SNOWBOARD INJURIES5. CHRONIC LOWER RESPIRATORY DISEASE - THIS AREA WILL BE WATCHED CLOSELY AND SHOULD INCIDENCE RATES RISE AND PATIENT DEMAND INCREASE, EXPANDING THE SERVICE LINE WOULD BE CONSIDERED BY THE ORGANIZATION.6. MENTAL HEALTH - VHH HAS RECENTLY COMMITTED TO BRINGING A TELE-PSYCH PROGRAM TO VHH AND RESIDENTS OF EAGLE COUNTY. THIS PROGRAM WILL ALLOW FOR DIRECT COMMUNICATION BETWEEN MENTAL HEALTH SPECIALISTS AND LOCAL PROVIDERS AND PATIENTS.7. SUBSTANCE ABUSE - VHH WILL CONTINUE THE PROMOTION OF SCREENING BRIEF INTERVENTION AND REFERRAL FOR TREATMENT (SBIRT) AS A STANDARD OF CARE AT VHH. VHH WILL ALLOCATE RESOURCES TO CONTINUE PROVIDING SBIRT SCREENING AND INTERVENTION DUE TO DECREASED GRANT FUNDING. VAIL CLINIC, INC. Part V, Section B, Line 23: SCHEDULE H, PART V, SECTION B, LINE 22D, 23 & 24:DISCLOSURE UNDER REV. PROC. 2015-21THE MAXIMUM AMOUNTS THAT CAN BE CHARGED TO FINANCIAL ASSISTANCE POLICY-ELIGIBLE INDIVIDUALS FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE - AMOUNTS GENERALLY BILLED (AGB) APPLIED TO THE REQUEST FOR THE APPROVAL FOR APPROVED FINANCIAL ASSISTANCE DISCOUNT.HOSPITALS WERE REQUIRED TO MAKE REASONABLE, GOOD FAITH EFFORTS TO COMPLY WITH DRAFT 501(R) IRS REGULATIONS THAT HAD BEEN ISSUED PRIOR TO 2016, WITH COMPLIANCE OF THE FINAL ISSUED REGULATIONS BY NO LATER THAN NOVEMBER 1, 2016. THE HOSPITAL CONSULTED WITH THEIR OUTSIDE ACCOUNTING FIRM TO HELP INTERPRET THE REGULATIONS AS THE HOSPITAL DEVELOPED A POLICY IN COMPLIANCE WITH THE IRS REGULATIONS. THE REVISED POLICY NOW INDICATES THAT THE HOSPITAL WILL USE THE LOOK BACK METHOD IN DETERMINING AMOUNTS GENERALLY BILLED FOR EMERGENCY OR OTHER MEDICALLY NECESSARY CARE AND FAP ELIGIBLE PATIENTS SHALL NOT BE CHARGED MORE THAN AGB. BOARD APPROVAL OF THE REVISED POLICIES TOOK PLACE IN LATE 2016 AND THE FINANCIAL ASSISTANCE POLICY WAS APPROVED IN FEBRUARY, 2017.INITIAL IMPLEMENTATION OF THE NEW POLICY BEGAN IMMEDIATELY, WITH THE LIMITATION OF CHARGES BEING IMPLEMENTED IN 2017. ANY PATIENT THAT RECEIVED LESS THAN 100% FINANCIAL ASSISTANCE WAS RECALCULATED USING AGB AND THEN THE APPROVED AMOUNT PER THEIR ELIGIBILITY WAS APPLIED. ANY REFUNDS THAT REQUIRED ISSUANCE WERE MADE BASED UPON THIS REVIEW.THE HOSPITAL HAS TAKEN MEASURES TO PREVENT OVERSIGHTS OF THIS NATURE FROM REOCCURRING BY PROVIDING MORE TRAINING TO ALL EMPLOYEES WHO HAVE PATIENT CONTACT REGARDING BILLING MATTERS, SUCH AS FINANCIAL COUNSELORS, BILLING PERSONNEL, CUSTOMER SERVICE REPRESENTATIVES, AND PATIENT ACCESS REPRESENTATIVES. THE HOSPITAL HAS ALSO INCREASED THEIR RESOURCES AROUND FINANCIAL ASSISTANCE COUNSELORS BY ADDING MORE FTES TO SUPPORT THIS ACTIVITY. 15 1 - VAIL VALLEY SURGERY CENTER (VAIL) PO BOX 1270 VAIL CO 81658 AMBULATORY SURGERY CENTER JV 2 - SHAW PAVILION (EDWARDS) PO BOX 40000 VAIL CO 81658 CANCER CENTER, PHYSICIAN OFFICES 3 - EDWARDS MEDICAL CENTER PO BOX 40000 VAIL CO 81658 PHYSICIAN OFFICES, PHYSICAL, THERAPY, SUPPORT SERVICES 4 - VAIL VALLEY SURGERY CENTER (EDWARDS) PO BOX 1270 VAIL CO 81658 AMBULATORY SURGERY CENTER JV 5 - AVON URGENT CARE PO BOX 40000 VAIL CO 81658 URGENT CARE 6 - BEAVER CREEK MEDICAL CENTER PO BOX 40000 VAIL CO 81658 FOR ON-MOUNTAIN ACCIDENTS AND ILLNESSES OF BC GUESTS, PHYSICAL THERAPY 7 - US BANK BUILDING (VAIL) PO BOX 40000 VAIL CO 81658 PHYSICIAN OFFICES, PHYSICAL THERAPY, SUPPORT SERVICES 8 - GYPSUM URGENT CARE PO BOX 40000 VAIL CO 81658 URGENT CARE, SUPPORT SERVICES 9 - EAGLE HEALTH CARE CENTER PO BOX 40000 VAIL CO 81658 PHYSICIAN OFFICES, PHYSICAL THERAPY 10 - HOWARD HEAD FRISCO PO BOX 40000 VAIL CO 81658 PHYSICAL THERAPY 11 - HOWARD HEAD SILVERTHORNE PO BOX 40000 VAIL CO 81658 PHYSICAL THERAPY 12 - HOWARD HEAD GYPSUM PO BOX 40000 VAIL CO 81658 PHYSICAL THERAPY 13 - HOWARD HEAD AVON PO BOX 40000 VAIL CO 81658 PHYSICAL THERAPY 14 - JACK'S PLACE (EDWARDS) PO BOX 40000 VAIL CO 81658 CANCER CARING HOUSE 15 - HOWARD HEAD BRECKENRIDGE PO BOX 40000 VAIL CO 81658 PHYSICAL THERAPY SCHEDULE H, PART I, LINE 7: THE ORGANIZATION USED A COST-TO CHARGE RATIO FOR LINES 7A & 7B. THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES. THE INFORMATION FOR LINES 7E, 7F, AND 7I WAS DERIVED FROM INFORMATION IN THE GENERAL LEDGER AND OTHER FINANCIAL DATA RELATED SPECIFICALLY TO THE VARIOUS TYPES OF COMMUNITY BENEFITS.LINE 7I INCLUDES AN AMOUNT ($8,700,000) PROVIDED TO VVMC DIVERSIFIED SERVICES DBA VAIL HEALTH CLINICS, A RELATED ORGANIZATION WHICH IS A GROUP OF PHYSICIAN PRACTICES AND URGENT CARE FACILITIES LOCATED IN A RURAL AREA IN EAGLE COUNTY, COLORADO. VAIL HEALTH CLINICS IS ABLE TO PROVIDE IMPROVED COMMUNITY ACCESS TO HEALTHCARE SERVICES, ALLOWING ALL MEMBERS OF THE COMMUNITY TO BE SERVED.SCHEDULE H, PART I, LINE 7, COLUMN FBAD DEBT EXPENSE INCLUDED ON FORM 990, PART IX, LINE 25 BUT EXCLUDED FOR PURPOSES OF CALCULATING PERCENTAGES IN THIS COLUMN EQUAL $9,071,156. Part III, Line 2: THE ORGANIZATION ANALYZES ITS PAST HISTORY AND IDENTIFIES TRENDS FOR EACH OF ITS MAJOR PAYER SOURCES OF REVENUE TO ESTIMATE THE APPROPRIATE ALLOWANCE FOR DOUBTFUL ACCOUNTS AND PROVISION FOR BAD DEBTS. MANAGEMENT REGULARLY REVIEWS DATA ABOUT THESE MAJOR PAYER SOURCES OF REVENUE IN EVALUATING THE SUFFICIENCY OF THE ALLOWANCE FOR DOUBTFUL ACCOUNTS. Part III, Line 4: SEE PAGE 10 AND 11 OF THE ATTACHED AUDITED FINANCIAL STATEMENTS FOR THE FOOTNOTE DESCRIBING BAD DEBT EXPENSE. Part III, Line 8: IRS REVENUE RULING 69-545, WHICH ESTABLISHED THE COMMUNITY BENEFIT STANDARD FOR NONPROFIT HOSPITALS, STATES THAT IF A HOSPITAL SERVES PATIENTS WITH GOVERNMENT HEALTH BENEFITS, INCLUDING MEDICARE, THAT THIS IS AN INDICATION THAT THE HOSPITAL OPERATES TO PROMOTE THE HEALTH OF THE COMMUNITY. THIS IMPLIES THAT TREATING MEDICARE PATIENTS IS A COMMUNITY BENEFIT. OUR COMMUNITY INCLUDES PATIENTS COVERED BY MEDICARE. WE SHOULD GET CREDIT FOR THE REIMBURSEMENT SHORTFALL THAT RESULTS FROM SERVING THIS SEGMENT OF OUR COMMUNITY.THE MEDICARE ALLOWABLE COST COMPUTATION INCLUDES THE COSTS FOR BOTH THE MEDICAL CENTER AS WELL AS THE MEDICAL CENTER'S APPLICABLE SHARE OF THEIR JOINT VENTURE'S COSTS. THE MEDICAL CENTER'S MEDICARE ALLOWABLE COST IS DERIVED FROM THE MEDICARE COST REPORT. THE JOINT VENTURE'S MEDICARE ALLOWABLE COST IS COMPUTED USING A COST-TO-CHARGE RATIO. THE MEDICARE COST COMPUTED FOR THE JOINT VENTURE IS $1,819,347. THE REMAINING $39,126,577 OF ALLOWABLE COST IS FROM THE MEDICAL CENTER'S MEDICARE COST REPORT.THE ORGANIZATION USED A COST-TO CHARGE RATIO FOR LINES 7A & 7B. THE COST-TO-CHARGE RATIO WAS DERIVED FROM WORKSHEET 2, RATIO OF PATIENT CARE COST-TO-CHARGES. THE INFORMATION FOR LINES 7E, 7F, AND 7I WAS DERIVED FROM INFORMATION IN THE GENERAL LEDGER AND OTHER FINANCIAL DATA RELATED SPECIFICALLY TO THE VARIOUS TYPES OF COMMUNITY BENEFITS. LINE 7I INCLUDES AN AMOUNT ($8,700,000) PROVIDED TO VVMC DIVERSIFIED SERVICES DBA VAIL HEALTH CLINICS, A RELATED ORGANIZATION WHICH IS A GROUP OF PHYSICIAN PRACTICES AND URGENT CARE FACILITIES LOCATED IN A RURAL AREA IN EAGLE COUNTY, COLORADO. VAIL HEALTH CLINICS IS ABLE TO PROVIDE IMPROVED COMMUNITY ACCESS TO HEALTHCARE SERVICES, ALLOWING ALL MEMBERS OF THE COMMUNITY TO BE SERVED. Part III, Line 9b: ANY EXTRAORDINARY COLLECTION ACTIONS IN PROGRESS AT THE TIME AN INCOMPLETE APPLICATION IS RECEIVED MUST BE SUSPENDED. SUCH COLLECTIONS MAY BE INITIATED OR RESUMED IF A COMPLETED APPLICATION IS NOT RECEIVED OR AFTER A REQUEST FOR ADDITIONAL INFORMATION IS NOT RECEIVED AFTER 30 DAYS OF NOTIFICATION. UPON APPROVAL OF A FINANCIAL ASSISTANCE REQUEST, VHH SHALL: TAKE REASONABLE MEASURES TO VACATE OR REVERSE ANY EXTRAORDINARY COLLECTION ACTIONS, SUCH AS LIFTING A LIEN AND REMOVING ADVERSE INFORMATION ON CREDIT REPORTS. Part VI, Line 2: WE LOOK AT THE POPULATION AND BENCHMARK PRODUCTIVITY DATA TO DETERMINE THE DEMAND IN OUR PRIMARY SERVICE AREA BY PHYSICIAN SPECIALTY. THEN WE LOOK AT MARKET DATA TO DETERMINE THE CURRENT NUMBER OF PROVIDERS IN OUR PRIMARY SERVICE AREA. WE WORK CLOSELY WITH OUR PHYSICIAN PARTNERS IN OUR COMMUNITY TO IDENTIFY IF WE HAVE A SHORTAGE OF PROVIDERS AND TO DETERMINE THE BEST WAY TO FILL THAT NEED. IN FY12, WE ALSO STARTED A FORMAL COMMUNITY HEALTH NEEDS ASSESSMENT REQUIRED BY THE IRS THAT WAS COMPLETED IN FY13, AND THIS WAS UPDATED IN FY15 AND COMPLETED IN FY16. Part VI, Line 3: CONTACT INFORMATION FOR OUR FINANCIAL COUNSELOR IS PROVIDED AT REGISTRATION AND DISCHARGE FROM THE PATIENT ACCESS DEPARTMENT, AS WELL AS ON BOTH OUR BILLING STATEMENTS AND ON OUR WEBSITE. ADDITIONALLY, PATIENTS CONTACTING THE HOSPITAL THROUGH CUSTOMER SERVICE OR PATIENT ACCOUNTING ARE DIRECTED TO THE FINANCIAL COUNSELOR FOR ASSISTANCE. Part VI, Line 4: OUR PRIMARY SERVICE AREA IS IN EAGLE COUNTY AND THE SURROUNDING FOUR COUNTY REGION IN THE RURAL MOUNTAINS OF COLORADO. MANY PATIENTS DRIVE UP TO 70 - 80 MILES TO ACCESS OUR SERVICES. WE HAVE SEVERAL CLINICS LOCATED THROUGHOUT OUR PRIMARY SERVICE AREA PROVIDING URGENT CARE, EMERGENCY SERVICES, AND PHYSICAL REHAB TO MAKE OUR SERVICES MORE ACCESSIBLE. WE ALSO GET A PORTION OF OUR BUSINESS FROM THE SURROUNDING FIVE COUNTIES, AND FROM COLORADO FRONT RANGE RESIDENTS VISITING OUR RESORT COMMUNITY. Part VI, Line 5: INFORMATION IMPORTANT TO DESCRIBING HOW THE ORGANIZATION FURTHERS ITS EXEMPT PURPOSE BY PROMOTING THE HEALTH OF THE COMMUNITY: WE PROVIDE SEVERAL FREE AND LOW COST GENERAL HEALTH SCREENINGS, CARDIAC SCREENINGS, AND CANCER SCREENINGS TO THE COMMUNITY. WE ALSO PROVIDE FREE EDUCATION IN SCHOOLS AND COMMUNITY MEETINGS FOR A VARIETY OF TOPICS INCLUDING: HEAD AND SPINAL CORD INJURY PREVENTION PROGRAMS, HELMET SAFETY, CAR SEAT SAFETY, DIABETES, HEART HEALTH, AND NUTRITION. WE PARTICIPATE IN COMMUNITY COALITION BUILDING MEETINGS IN TOWN HALLS AND COUNTY MEETINGS.WE CONTRIBUTE TO DISASTER PREPAREDNESS PLANNING AND TRAINING WITH LAW ENFORCEMENT, FIRE DEPARTMENTS, COUNTY HEALTH OFFICIALS, SCHOOLS, AND OTHER HEALTH CARE PROVIDERS IN THE COMMUNITY. WE ALSO PARTICIPATE IN COUNTY FLU COALITION PLANNING. WE PROVIDE ON-THE-JOB TRAINING FOR NURSING, EMT AND PARAMEDIC STUDENTS FROM COLORADO MOUNTAIN COLLEGE IN OUR FACILITIES. WE ALSO OFFER A SAFE DRUG DISPOSAL PROGRAM.WE RECOGNIZE CANCER SURVIVORS AT OUR LOCAL COUNTY RODEO. WE OFFER FIT FOR SURVIVAL, AN EXERCISE PROGRAM FOR CANCER PATIENTS. WE HAVE A TEAM OF NUTRITION EXPERTS WHO HELP THE COMMUNITY PROTECT ITSELF AGAINST CANCER THROUGH ITS PRESENCE AT LOCAL HEALTH FAIRS, PUBLISHING NUTRITION ARTICLES IN THE LOCAL PAPER, AND OFFERING MONTHLY COOKING CLASSES, CANCER SUPPORT PROGRAMS, AND GROUPS. JACK'S PLACE IS OUR CANCER CARING HOUSE THAT ALLOWS CONVENIENT AND COMFORTABLE ACCOMMODATIONS FOR CANCER PATIENTS, CAREGIVERS, AND FAMILY MEMBERS FREE OF CHARGE.YOGA AND TAI CHI CLASSES ARE ALSO OFFERED AT JACK'S PLACE. THE ARTS IN HEALING PROGRAM PROVIDES REGULAR MUSICAL PERFORMANCES, VISUAL ART EXHIBITS AND WORKSHOPS, AND PERFORMANCES TO ENHANCE THE OVERALL HEALTHCARE ENVIRONMENT FOR OUR PATIENTS, VISITORS AND STAFF. WE ALSO PARTICIPATE IN PET PARTNERS, A THERAPY ANIMAL PROGRAM. WE OFFER CHILDBIRTH AND LACTATION CLASSES TO THE COMMUNITY.SURPLUS FUNDS ARE USED TO INVEST IN COMMUNITY NEEDS - WE CONSTRUCTED AN AMBULATORY SURGERY CENTER IN EDWARDS, AS WELL AS INVESTED IN NEW MEDICAL EQUIPMENT. WE DONATED $4,299,996 TO FUND BIOMECHANICAL RESEARCH, DONATED $40,000 DIRECTLY TO THE US SKI TEAM, AND PARTIALLY FUNDED THE SALARIES AND OTHER EXPENSES OF LOCAL SCHOOL ATHLETIC TRAINERS TO PROMOTE LOCAL ATHLETE DEVELOPMENT. WE DONATED $8,700,000 TO VAIL HEALTH CLINICS TO SUBSIDIZE PHYSICIAN SPECIALTIES TO WORK IN EAGLE COUNTY, WHO WOULD OTHERWISE NOT BE ABLE TO PRACTICE AND PROVIDE THOSE SERVICES TO THE COMMUNITY AND DONATED $384,894 TO MOUNTAIN FAMILY HEALTH CENTERS TO SUBSIDIZE THEIR FEDERALLY QUALIFIED HEALTH CLINIC. Part VI, Line 7, Reports Filed With States CO 1 Steadman Philippon Research Foundation 181 W Meadow Dr Ste 1000 VAIL CO 81657 880245022 501(C)(3) 4299996 PROGRAM SUPPORT Vail Valley Partnership PO Box 1130 VAIL CO 81658 840535997 501(C)(3) 7500 SPONSORSHIP Vail Breast Cancer Awareness PO Box 4043 AVON CO 81620 841515602 501(C)(3) 8000 SILVER SPONSORSHIP LUNCHEON BENEFIT Youthpower 365 PO Box 309 VAIL CO 81658 841442909 501(C)(3) 10000 STAR DANCING GALA SPONSORSHIP Starting Hearts PO Box 4318 AVON CO 81620 273008262 501(C)(3) 25000 SPONSORSHIP Education Foundation of Eagle County PO Box 18533 AVON CO 81620 841585417 501(C)(3) 25000 PROJECT FUNWAY Mountain Family Health Centers 2700 Gilstrap Ct Glenwood Springs CO 81601 840742145 501(C)(3) 384894 PROGRAM SUPPORT United States Ski Team 1 Victory Lane Box 100 Park City UT 84060 846030639 501(C)(3) 40000 ANNUAL RIGHTS AND ANNUAL MESS COURSE FEES VVMC Diversified Services PO Box 40000 VAIL CO 81658 261167922 501(C)(3) 8700000 PROGRAM SUPPORT Walking Mountain Science Center PO Box 9469 AVON CO 81620 841436731 501(C)(3) 5000 TASTE OF NATURE SPONSORSHIP Vail Valley Foundation PO Box 6550 AVON CO 81620 742215035 501(C)(3) 5000 BLACK DIAMOND BALL TABLE SPONSORSHIP Sonnenalp of Vail Foundation PO Box 4401 VAIL CO 81658 841442704 501(C)(3) 5000 GOLF SCRAMBLE Denver Health Foundation 655 Broadway Suite 750 Denver CO 80203 841085196 501(C)(3) 10000 2017 NIGHT SHINE GALA Colorado Mountain College Foundation 802 Grand Avenue Glenwood Springs CO 81601 742393418 501(C)(3) 9700 VVMC Scholarship Round Up River Ranch PO Box 8589 AVON CO 81620 204632248 501(C)(3) 5000 Sponsor for A Grateful Harvest Event Colorado Mountain Medical 108 S Frontage Rd W Ste 101 VAIL CO 81657 89700 SUBSIDIZE FOR OB SERVICES 15 1 Part I, Line 2: MANAGERS AND DIRECTORS REGULARLY MONITOR ACTIVITIES AND THE USAGE OF GRANT FUNDS. X 1 1 X X X X 1 1 0 0 0 0 0 1 0 DORIS KIRCHNER PRESIDENT, CEO AND BOARD MEMBER 506948 0 149700 0 37787 0 13010 0 22728 0 730173 0 0 0 JERRY GREENBERG MD BOARD MEMBER & PHYSICIAN 611900 0 46875 0 5895 0 13250 0 40999 0 718919 0 0 0 FREDERICK SMITH CHIEF ADMINISTRATIVE OFFICER 238028 0 50250 0 3268 0 10168 0 39288 0 341002 0 0 0 TED SIROTTA CHIEF FINANCIAL OFFICER AND ASST TRE 301244 0 30000 0 4796 0 1770 0 31219 0 369029 0 0 0 PATRICIA HARDENBERGH MD PHYSICIAN 488445 0 170591 0 3736 0 9603 0 36822 0 709197 0 0 0 LAWRENCE GAUL MD PHYSICIAN 352191 0 8600 0 4454 0 12251 0 17462 0 394958 0 0 0 ALEXANDER URQUHART MD PHYSICIAN 433499 0 200 0 23837 0 13250 0 32649 0 503435 0 0 0 JEFFREY RESNICK MD PHYSICIAN 332988 0 18750 0 4576 0 13250 0 20087 0 389651 0 0 0 NELSON PRAGER MD PHYSICIAN 583614 0 43875 0 10340 0 0 0 5370 0 643199 0 0 0 CHARLES CREVLING FORMER CFO AND ASST TREASURER 0 0 0 0 300000 0 0 0 0 0 300000 0 0 0 Part I, Line 1a Ted Sirotta received temporary housing in a rental unit until a permanent residence could be purchased. This amount is included as taxable income during the 2016 calendar year. Part I, Lines 4a-b SEVERANCE PAYMENTS: CHARLES CREVLING RECEIVED A SEVERANCE PAYMENT OF $300,000 DURING THE 2016 CALENDAR YEAR. 457F PLAN: Doris Kirchner participated in a SERP during the year. The 457(f) amount was $31,900 and vesting of percentages specified in the written agreement occurs on October 1 of each year. Part I, Line 7 Non Fixed and Bonus Payments: Incentive Bonuses are calculated as a percent of base compensation. The determination of whether or not a payout is made is based on company financial performance and on individual performance reviews conducted by the CEO and the compensation committee. Certain physician productivity bonuses are paid based on relative value units (RVUs) which are an indication of the employee's productivity or level of effort. Other physician bonuses are based on satisfaction of criteria defined in employment agreements. A COLORADO HEALTH FACILITIES AUTHORITY 840752932 19648A4N2 2015-10-21 104038243 RENOVATION & EXPANSION OF HOSPITAL 0 0 0 B COLORADO HEALTH FACILITIES AUTHORITY 840752932 2012-06-06 19052899 REFUND SERIES 2001 0 0 0 A 104915416 921241 24658515 79335660 0 0 0 1 B 3935695 19052899 303592 18749307 2012 1 0 1 1 A 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 B 0 0 0 0 0.00000 0.00000 0.00000 0 0 1 A 0 1 0 0 0 0 0 0 1 B 0 0 0 1 0 0 0 0 1 A 1 B 1 Date Rebate Computation Performed Issuer Name: COLORADO HEALTH FACILITIES AUTHORITY Date the Rebate Computation was Performed: 06/01/2017 SCHEDULE K, PART I, COLUMN (E) FOR BOND A AND PART II, LINE 3: THE TOTAL PROCEEDS OF THE 2015 ISSUE A EXCEEDS THE ISSUE PRICE REPORTED IN PART I, COLUMN (E) DUE TO INVESTMENT EARNINGS ON THE PROCEEDS. Form 990, Part I, Line 1 VAIL HEALTH WILL CONTINUE ITS DEVELOPMENT AS AN INDEPENDENT, NONPROFIT HEALTH CARE SYSTEM, PROVIDING SUPERIOR HEALTH SERVICES ALIGNED TO THE NEEDS OF EAGLE COUNTY RESIDENTS AND VISITORS, WORLD-RENOWNED ORTHOPAEDIC SERVICES, REGIONAL CANCER SERVICES AND EMERGENCY SERVICES. VAIL HEALTH WILL INTEGRATE AND ALIGN SERVICE OFFERINGS WITH OUR PHYSICIAN PARTNERS TO MAXIMIZE: -FLEXIBILITY AND RESPONSIVENESS TO PATIENT NEEDS, INCLUDING PREVENTIVE HEALTH SERVICES -EXCELLENCE IN SPECIALIZED CARE SUPPORTED BY COMPREHENSIVE RESEARCH AND EDUCATION -CONTINUOUS QUALITY IMPROVEMENT THROUGH INVESTMENT IN TECHNOLOGY, FACILITIES AND STAFF DEVELOPMENT VAIL HEALTH WILL PROVIDE THESE SERVICES IN AN ENVIRONMENT THAT ENABLES AND SUPPORTS TRUST AND RESPECT. Form 990, Part III, Line 4a KEY METRICS OF VAIL HEALTH HOSPITAL FOR FISCAL YEAR ENDED 10/31/2017 INCLUDE: INPATIENT ADMISSIONS EXCLUDING NEWBORNS: 2,070 PATIENT DAYS: 6,080 TOTAL SURGERIES: 3,006 AS PART OF THE MASTER FACILITY PLAN EFFORTS, THE CONSTRUCTION ON THE WEST WING CONCLUDED IN 2017, AND INCLUDED THE COMPLETION OF A NEW PRE-OPERATIVE/RECOVERY SUITE, A NEW STERILE PROCESSING FACILITY, AND A PATIENT/FAMILY WAITING ROOM ON THE 3RD FLOOR. EAST WING CONSTRUCTION HAS BEGUN AND WILL TAKE PLACE FROM 2017-2020. VHH ENJOYED CONTINUOUS ACCREDITATION STATUS THROUGHOUT FYE 2017. VHH WAS RECOGNIZED BY THE NATIONAL ORGANIZATION OF STATE OFFICE OF RURAL HEALTH (NOSORH) AND THE CHARTIS CENTER FOR RURAL HEALTH/IVANTAGE HEALTH ANALYTICS FOR OVERALL EXCELLENCE IN OUTCOMES AND PATIENT SATISFACTION, REFLECTING TOP QUARTILE PERFORMANCE AMONG ALL RURAL HOSPITALS IN THE NATION. VHH SUCCESSFULLY PASSED THE LEVEL III TRAUMA DESIGNATION WITH NO CITATIONS. THE MAIN LAB SUCCESSFULLY PASSED THE COLLEGE OF AMERICAN PATHOLOGY (CAP) ACCREDITATION INSPECTION. FAMILY BIRTH CENTER WAS ACKNOWLEDGED, FOR THE SECOND CONSECUTIVE YEAR, AS ONE OF AMERICA'S BEST HOSPITALS FOR OBSTETRICS BY THE WOMEN'S CHOICE AWARD. VHH INSTALLED 50 AUTOMATED EXTERNAL DEFIBRILLATORS IN EAGLE COUNTY IN PARTNERSHIP WITH STARTING HEARTS. VHH AND SPRI LAUNCHED THE TOGETHER CAMPAIGN, WITH A GOAL OF RAISING $75,000,000 TO FUND THE ONGOING MASTER FACILITY PLAN. VHH GAVE $20,700,000 BACK TO THE COMMUNITY THROUGH CHARITY CARE; EVENTS AND OUTREACH EFFORTS; PROGRAMS LIKE THINKFIRST; AND FINANCIALLY SUPPORTING GROUPS LIKE STARTING HEARTS, MIND SPRINGS HEALTH, CASTLE PEAK SENIOR CARE, HOMECARE & HOSPICE OF THE VALLEY, MOUNTAIN FAMILY HEALTH, SPRI, VAIL-SUMMIT ORTHOPAEDICS FOUNDATION, EAGLE COUNTY SCHOOLS, AND THE EDUCATION FOUNDATION OF EAGLE COUNTY. SHAW CANCER CENTER CREATED A POSITION FOR AN ONCOLOGY FINANCIAL NAVIGATOR TO PROACTIVELY IDENTIFY PATIENTS IN NEED AND DEVELOP A PLAN TO HELP THEM MEET THEIR COSTS OF CARE. Form 990, Part VI, Section A, line 6 VAIL HEALTH SERVICES IS THE SOLE MEMBER OF VAIL CLINIC, INC. DBA VAIL HEALTH HOSPITAL. Form 990, Part VI, Section A, line 7a VAIL HEALTH SERVICES, THE SOLE MEMBER OF VAIL CLINIC, INC. DBA VAIL HEALTH HOSPITAL, APPOINTS BOARD MEMBERS OF THE HOSPITAL'S BOARD OF DIRECTORS. Form 990, Part VI, Section A, line 7b THE FOLLOWING GOVERNANCE DECISIONS ARE ALSO SUBJECT TO APPROVAL BY THE SOLE MEMBER: - APPOINTING AND REMOVING THE PRESIDENT OF THE CORPORATION - AMENDING OR APPROVING ALL AMENDMENTS TO THE CORPORATION'S ARTICLES OF INCORPORATION OR BYLAWS - APPROVING BUDGETS - APPROVING UNBUDGETED EXPENDITURES IN EXCESS OF $100,000 - APPROVING UNBUDGETED BORROWINGS IN EXCESS OF $1,000,000 - VOLUNTARY DISSOLUTION, MERGER, CONSOLIDATION OR BANKRUPTCY - APPROVING SALE OF ASSETS IN EXCESS OF $1,000,000 - CREATING A SUBSIDIARY OR AFFILIATE - SELECTING PUBLIC ACCOUNTANTS - ESTABLISHING INVESTMENT POLICIES - ESTABLISHING POLICIES ON THE DISTRIBUTION AND USE OF FUNDS - ADDING/DELETING MAJOR PROGRAM/SERVICE LINES Form 990, Part VI, Section B, line 11b THE FORM 990 IS PREPARED BY A THIRD PARTY BASED ON DATA PREPARED AND SUBMITTED BY THE ACCOUNTING DEPARTMENT. THE DRAFT FORM 990 IS REVIEWED BY MEMBERS OF THE ACCOUNTING DEPARTMENT PRIOR TO ITS FILING. THE REVIEW INCLUDES READING IT FOR ACCURACY OF DISCLOSURE AND COMPARING THE NUMBERS TO THOSE IN THE AUDITED FINANCIAL STATEMENTS. A COPY OF THE FORM FORM 990 IS PROVIDED TO THE BOARD OF DIRECTORS BEFORE FILING WITH THE IRS. Form 990, Part VI, Section B, line 12c DURING FY 17 CONFLICT OF INTEREST SURVEYS WERE NOT CIRCULATED WHILE THE CURRENT POLICY WAS BEING REVIEWED, HOWEVER THE SURVEY PROCESS WAS COMPLETED DURING JULY 2018. PROCESS FOR MONITORING COMPLIANCE WITH CONFLICT OF INTEREST POLICY: THE CONFLICT OF INTEREST POLICY APPLIES TO VAIL HEALTH HOSPITAL (VHH) BOARD MEMBERS, OFFICERS, MEDICAL STAFF, LICENSED INDEPENDENT PRACTITIONERS, VOLUNTEERS, AGENTS, CONTRACTORS AND EMPLOYEES. ALL BOARD MEMBERS, MEDICAL STAFF, NURSE PRACTITIONERS, PHYSICIAN ASSISTANTS, AND EMPLOYEES OF VHH ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS OF INTEREST BY COMPLETING A CONFLICT OF INTEREST ELECTRONIC QUESTIONNAIRE UPON HIRE OR APPOINTMENT AND THEN ANNUALLY. BOARD MEMBERS AND AGENTS MUST COMPLETE AND SUBMIT CONFLICT OF INTEREST ELECTRONIC QUESTIONNAIRE TO THE CHIEF ETHICS AND COMPLIANCE OFFICER UPON HIRE OR APPOINTMENT AND THEN ANNUALLY. VOLUNTEERS MUST COMPLETE AND SUBMIT DISCLOSURE FORMS TO THE MANAGER OF VOLUNTEERS WHEN THEY BEGIN PROVIDING SERVICES TO VHH AND THEN ANNUALLY. IF DURING THE YEAR ANY NEW POTENTIAL CONFLICTS OF INTEREST ARISE, COVERED PERSONS MUST REPORT THE POTENTIAL CONFLICTS OF INTEREST IMMEDIATELY (AND PRIOR TO UNDERTAKING ANY ACTIVITY THAT MAY RAISE A POTENTIAL CONFLICT OF INTEREST). THE CHIEF ETHICS AND COMPLIANCE OFFICER, THE VOLUNTEER SERVICES PROGRAM MANAGER AND THE COMMITTEE SHALL CONSIDER THE FOLLOWING FACTORS WHEN REVIEWING COMPLETED DISCLOSURE FORMS: - WHETHER THE COLLEAGUE OR AN IMMEDIATE FAMILY MEMBER IS A PARTY TO, OR MAY DIRECTLY OR INDIRECTLY BENEFIT FROM, A PROPOSED AGREEMENT OR TRANSACTION INVOLVING VHH; - WHETHER THE COLLEAGUE'S DESIRE FOR, OR EXPECTATION OF, DIRECT OR INDIRECT EXTERNAL ECONOMIC ADVANTAGE COULD DISTORT A VHH DECISION OR ACTIVITY; - WHETHER THE COLLEAGUE OR AN IMMEDIATE FAMILY MEMBER IS ENGAGING IN AN ACTIVITY, BUSINESS, OR TRANSACTION IN WHICH VHH IS LIKELY TO ENGAGE; - WHETHER THE COLLEAGUE'S OUTSIDE ACTIVITIES MAY CONFLICT WITH RIGHTS OF, OR THE COLLEAGUE'S OBLIGATIONS TO, VHH OR VHH'S PATIENTS; - WHETHER THE CONFLICT OF INTEREST CAN BE CURED OR MANAGED BY RECUSAL OR OTHER APPROPRIATE ACTION; - WHETHER THERE IS AN APPEARANCE OF A CONFLICT OF INTEREST. Form 990, Part VI, Section B, line 15 REVIEW OF CEO OR TOP MANAGEMENT OFFICIAL COMPENSATION: A FORMAL EXTERNAL REVIEW IS CONDUCTED EVERY YEAR. EXECUTIVE COMPENSATION WAS LAST FORMALLY REVIEWED IN 2017 BY SULLIVAN COTTER. THIS REVIEW EVALUATES TOTAL COMPENSATION OF THE EXECUTIVE AGAINST COMPENSATION DATA FOR THE SAME OR SIMILAR JOB BY INDUSTRY, REVENUE SIZE AND GEOGRAPHIC LOCATION AND OTHER FACTORS TO ENSURE THAT THE COMPENSATION PAID IS APPROPRIATE AND REASONABLE. THAT INFORMATION IS THEN REVIEWED BY THE COMPENSATION COMMITTEE AND THE BOARD OF DIRECTORS. INTERNAL REVIEWS ARE PERFORMED AS WELL AT TIME OF HIRE AND ON AN ONGOING BASIS USING COMPENSATION SURVEYS. REVIEW OF OTHER OFFICER OR KEY EMPLOYEES COMPENSATION: A FORMAL EXTERNAL REVIEW IS CONDUCTED EVERY YEAR. OTHER OFFICER AND KEY EMPLOYEE COMPENSATION WAS LAST FORMALLY REVIEWED IN 2017 BY SULLIVAN COTTER. THIS REVIEW EVALUATES TOTAL COMPENSATION OF THE INDIVIDUAL AGAINST COMPENSATION DATA FOR THE SAME OR SIMILAR JOB BY INDUSTRY, REVENUE SIZE AND GEOGRAPHIC LOCATION AND OTHER FACTORS TO ENSURE THAT THE COMPENSATION PAID IS APPROPRIATE AND REASONABLE. THAT INFORMATION IS THEN REVIEWED BY THE COMPENSATION COMMITTEE AND THE BOARD OF DIRECTORS. INTERNAL REVIEWS ARE PERFORMED AS WELL AT TIME OF HIRE AND ON AN ONGOING BASIS USING COMPENSATION SURVEYS. Form 990, Part VI, Section C, line 19 THE GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS ARE AVAILABLE FOR VIEWING BY THE PUBLIC FOR VALID BUSINESS PURPOSES. THESE DOCUMENTS, POLICIES, AND FINANCIAL STATEMENTS ARE AVAILABLE FOR VIEWING UPON REQUEST. FORM 990, PART VI, SECTION B, LINE 16B: WRITTEN POLICY RELATED TO JOINT VENTURE ARRANGEMENTS: VAIL HEALTH HOSPITAL DOES NOT HAVE A DOCUMENTED WRITTEN POLICY, HOWEVER, THE ORGANIZATION TAKES APPROPRIATE MEASURES AND HAS PROCESSES IN PLACE TO ENSURE THAT ANY PARTICIPATION IN JOINT VENTURE AGREEMENTS ARE EVALUATED EXTENSIVELY IN ORDER TO SAFEGUARD THE ORGANIZATION'S EXEMPT STATUS. Form 990, Part IX, line 11g Other fees: Program service expenses 3,935,656. Management and general expenses 1,466,975. Fundraising expenses 9,739. Total expenses 5,412,370. REPAIRS/MAINTENANCE SERVICES: Program service expenses 1,224,046. Management and general expenses 554,738. Fundraising expenses 0. Total expenses 1,778,784. CONSULTING SERVICES: Program service expenses 264,917. Management and general expenses 3,568,246. Fundraising expenses 0. Total expenses 3,833,163. PHYSICIAN FEES: Program service expenses 7,347,790. Management and general expenses 125,500. Fundraising expenses 0. Total expenses 7,473,290. LAUNDRY SERVICES: Program service expenses 66,846. Management and general expenses 782,353. Fundraising expenses 0. Total expenses 849,199. CONTRACT CLINICAL LABOR: Program service expenses 939,716. Management and general expenses 0. Fundraising expenses 0. Total expenses 939,716. FOOD SERVICES: Program service expenses 0. Management and general expenses 1,844,047. Fundraising expenses 0. Total expenses 1,844,047. Form 990, Part XI, line 9: Net revenue passed through from the CHA Trust for Worker's Compensation -37,736. VVMC DIVERSIFIED SERVICES PO BOX 4000 VAIL CO 81658 261167922 HEALTH CARE CO 501(c)(3) Line 10 VHS 1 VAIL HEALTH SERVICES FOUNDATION PO BOX 4000 VAIL CO 81658 742505662 SUPPORT VHH CO 501(c)(3) Line 12b, II VHS 1 SHAW OUTREACH TEAM PO BOX 4000 VAIL CO 81658 383710853 FUNDRAISING CO 501(c)(3) Line 12d, III-O VHS 1 VOLUNTEER CORPS OF THE VAIL VALLEY MEDICAL CTR PO BOX 4000 VAIL CO 81658 113730281 SUPPORT VHH CO 501(c)(3) Line 12c, III-FI VHS 1 VAIL HEALTH SERVICES (VHS) PO BOX 4000 VAIL CO 81658 262648461 HOLDING CO. CO 501(c)(3) Line 12c, III-FI N/A 0 VAIL VALLEY SURGERY CENTER PO BOX 1270 VAIL CO 81658 030419967 HEALTH CARE CO VHH RELATED 44022420 17652039 0 0 0.50180 VHS MANAGEMENT SERVICES INC 181 W MEADOW DR STE 100 VAIL CO 81657 262647982 HEALTH CARE CO VHS C 1 1 1 1 1 0 1 0 0 0 1 0 1 1 1 1 1 1 1 0 Vail Valley Surgery Center LLC A 2140907 ACTUAL AMOUNT VVMC Diversified Services B 8700000 ACTUAL AMOUNT Vail Health Services Foundation C 2937462 ACTUAL AMOUNT Vail Valley Surgery Center LLC D 1996243 LOAN AMOUNT VVMC Diversified Services D 334386 LOAN AMOUNT Vail Valley Surgery Center LLC F 24305247 ACTUAL AMOUNT Vail Valley Surgery Center LLC Q 17052703 ACTUAL AMOUNT VVMC Diversified Services Q 3177000 ACTUAL AMOUNT Vail Valley Surgery Center LLC R 5187544 ACTUAL AMOUNT