2018-11-13T08:03:36-00:00 2017-12-31 KPMG LLP 1918 8th Avenue Suite 2900 Seattle WA 98101 990 2017-01-01 910565539 Virginia Mason Medical Center VIRG 2062236600 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 2018-11-13 15:09:32 PS P 3BF9F3C1D5421FE41D537B7E0F61F32192DE8497 3BF9F3C1D5421FE41D537B7E0F61F32192DE8497 2017 2019-02-21 02:37:17Z Gary Kaplan MD 1100 Ninth Avenue Seattle WA 98101 1334303805 false X www.virginiamason.org X 1934 WA Virginia Mason Medical Centers mission is to improve the health and well-being of the patients it serves through the delivery of high quality, cost-effective care. 15 13 6164 503 29105778 14145068 6696602 10669637 940092603 984977092 35098808 43691212 8525879 8675137 990413892 1048013078 8501417 5673919 0 541442911 559316610 0 0 434368593 464451204 984312921 1029441733 6100971 18571345 1127061112 1144991066 673959782 655117011 453101330 489874055 X Virginia Mason Medical Centers the Medical Center mission is to improve the health and well-being of the patients it serves through the delivery of high quality, cost-effective care. Continued on Schedule O. false false 877646348 984460337 Health Care Services. The Medical Center is a tertiary regional referral center which serves a patient community that includes Seattle and its surrounding suburbs, Western Washington and Alaska. The main campus located in Seattle includes a hospital, an outpatient clinic, centers of excellence including the Center for Hyperbaric Medicine, Digestive Disease Institute, Floyd Delores Jones Cancer Institute, Heart Institute, Neuroscience Institute and Urology. The Medical Center also operates eight regional clinics, and Bailey-Boushay House, a 35-bed skilled nursing facility. During 2017, the Medical Center recorded 11,293 hospital inpatient admissions, 23,176 emergency room visits and 895,780 clinic visits. The Medical Center provided charity care and unreimbursed Medicaid services to a total of 7,621 patients. Continued on Schedule O. 22662810 1750000 409062 Education and Research. The Medical Center is an independent academic medical center with a graduate medical education program that trains over 120 residents and fellows in nine accredited programs in anesthesiology, internal medicine, general surgery, diagnostic radiology, preliminary surgery, transitional year, urology, pain management, and female pelvic medicine/reconstructive surgery. The Medical Center is also affiliated with the University of Washington for training of subspecialties in the areas of anesthesiology, orthopedics, obstetrics, gynecology and urology. The Medical Center also provides training in clinical nursing education, allied health fields, and continuing medical education. In addition, the Medical Center conducts medical research through its affiliate Benaroya Research Institute at Virginia Mason, a scientific research institute qualified under Section 501c3 of the Internal Revenue code. Continued on Schedule O. 248700 107693 Community Health Education and Services. The Medical Center contributes to the health of the community through sponsorship of community health education and services. Community health education includes classes, forums, presentations and other programs held during the day and evening in the Medical Center neighborhood clinic communities and the Seattle main campus. The Buse Diabetes Teaching Center provides a nationally recognized education program which includes classes covering every aspect of diabetes care including how to support long term health lifestyle habits and avoid long-term complications. The education programs are open to everyone with diabetes and their family members. Scholarships are available. In 2017, the Medical Center provided 11,000 toward support of the Buse Diabetes Teaching Center. Continued on Schedule O. 3923919 3923919 904481777 true true false true false false false false false true true false false false true true false true false false true false false false false false true true true false true true false false false false false false false true true true false false false false true true false false false false true 568 0 true 6164 true true true false false false false false false false false false X 15 13 true false false false true true true true true false true true true true true true true true true true false GA OR X MaryAnne Olmstead 2066257371 1100 Olive Way Suite 605 Seattle WA 98101 Tod Hamachek Director, Chair 002.00 002.00 X X 0 0 0 Robert Bob Lemon Director, Treasurer 002.00 004.00 X X 0 0 0 Dorothy H Mann PhD Director, Secretary 002.00 002.00 X X 0 0 0 James Jamie Orlikoff Director 002.00 004.00 X 0 0 0 Jane Blodgett Director 002.00 002.00 X 0 0 0 Lewis Lonnie Edelheit PhD Director 002.00 002.00 X 0 0 0 Julie Morath RN Director 002.00 002.00 X 0 0 0 Carolyn Corvi Director, Vice Chair 002.00 004.00 X X 0 0 0 Mary McWilliams Director 002.00 002.00 X 0 0 0 Michelle Griffin Director 002.00 002.00 X 0 0 0 Gregg Meyer MD Director 002.00 002.00 X 0 0 0 John Oppenheimer Director 002.00 002.00 X 0 0 0 Kevin Schemm Director 002.00 002.00 X 0 0 0 Asha Sharma Director 002.00 002.00 X 0 0 0 David Williams Director 002.00 003.00 X 0 0 0 Gary Kaplan MD Chairman, CEO 050.00 005.00 X 1127597 0 68995 Suzanne Anderson President 050.00 004.00 X 648716 0 136326 Craig Goodrich Senior Vice President, CFO 050.00 002.00 X 333767 0 36934 Katerie Chapman Senior Vice President, Patient Care Services 050.00 X 398550 0 98505 Lucy Glenn MD Chief of Radiology 050.00 X 592992 0 55167 Michael Glenn MD Chief Medical Officer 050.00 X 1624338 0 129327 Fred Govier MD Chief of Surgery 050.00 X 698146 0 35446 Joyce Lammert MD Medical Director, Hospital 050.00 001.00 X 486335 0 26476 William Poppy Senior Vice President, CTO 050.00 X 430527 0 47295 Donna Smith MD Medical Director, Clinic 050.00 X 481373 0 111822 Shelly Powell Vice President, Patient Care Services 050.00 X 255391 0 37174 Michael Gluck MD Chief of Medicine 050.00 X 612218 0 49888 Denise Dubuque Vice President, Patient Care Services 050.00 X 241020 0 34252 Cindy Rockfield Vice President, Patient Care Services 050.00 X 214739 0 30953 Santokh Gill Vice President, Patient Care Services 050.00 X 210216 0 46181 Ingrid Gerbino MD Chief, Primary Care 050.00 X 346915 0 27831 Steve Schaefer Senior Vice President, Support Services 050.00 X 297620 0 44772 Christopher L Fellows MD Physician 050.00 X 1462666 0 66349 Richard A Kozarek MD Physician 050.00 X 1005513 0 91464 Rajiv Sethi MD Physician 050.00 X 1297068 0 34967 Steven Bayles Physician 050.00 X 937000 0 36623 Jean-Christophe Leveque Physician 050.00 X 935316 0 32514 Sarah Patterson Executive Sensei, Former Key Employee 050.00 002.00 X 335198 0 44946 Steve Rupp MD Physician, Former Key Employee 050.00 X 289154 0 35733 Charleen Tachibana RN Sr VP, Quality and Safety, Former Key Employee 050.00 X 1071506 0 93628 Catherine Potts MD Physician, Former Key Employee 050.00 X 232679 0 27255 16566560 1480823 1303 true true false Crothall Healthcare Inc 955 Chesterbrook Blvd Suite 300 Wayne PA 19087 Staffing Services 14323501 AMN Healthcare Inc PO Box 281939 Atlanta GA 30384 Staffing Services 2744121 Skanska USA Building Inc 221 Yale Ave N Ste 400 Seattle WA 98109 Construction Services 1070670 Vera Whole Health Inc 605 Fifth Ave S Suite 150 Seattle WA 98104 Healthcare Services 2418170 First Choice Health PO Box 94041 MS 310170 Seattle WA 98124 Third Party Administrator Services 2267767 65 10669637 10669637 Net Patient revenues 561499 573155966 573155966 Retail Services 561499 13836337 416004 13420333 Pharmacy 561499 25179820 25179820 Medicare/Medicaid Payments 621300 372804969 372804969 984977092 22231459 14772031 7459428 128571 128571 628 628 1666847 2062922 -396075 -396075 -408925 12850 301234337 3182189 283085344 18148993 3182189 21331182 21331182 2112525 1142461 970064 970064 Cafeteria 722100 3512582 3512582 Parking 721110 4261303 352275 3909028 Medical Records 561499 312580 312580 14055 14055 8100520 1048013078 971556759 29105778 36680904 5673919 5673919 0 0 0 11676877 8308943 3367934 0 474454940 417045892 57409048 24845245 21838970 3006275 18401985 16175345 2226640 29937563 26315118 3622445 1654177 1454022 200155 2435748 2435748 525870 525870 182153 182153 0 52347569 46013513 6334056 5383711 4732282 651429 225384180 198112694 27271486 15865470 13945748 1919722 0 29062502 25545939 3516563 2904254 2552839 351415 0 470244 413344 56900 30604056 26900965 3703091 0 41946535 36845836 5100699 6679712 5871467 808245 Taxes 29840669 29840669 Medical Purchased Services 633328 556695 76633 Dues and subscriptions 2488316 2187230 301086 Bad Debt Expense 403304 403304 15639406 13747043 1892363 1029441733 904481777 124959956 0 29859041 35668436 20372506 36856285 110928926 121882978 17329093 18036101 6757348 7027552 1104057982 554015896 566161457 550042086 325532983 351371087 50119758 24106541 1127061112 1144991066 110669791 116024091 89303 99542 309091104 287037163 136534519 136559090 117575065 115397125 673959782 655117011 X 431922000 462910636 16152666 21653289 5026664 5310130 453101330 489874055 1127061112 1144991066 X 18571345 11635209 6566171 X false true X true true true X 0.00000 0.00000 0.00000 X 133386 175480 48767 108767 182153 284247 1029259580 1586599944 1029441733 1586884191 1000000 1000000 250000 250000 1000000 1000000 1000000 1000000 4000000 6000000 138835 154766 275782 284247 853630 250000 250000 250000 250000 1000000 1500000 119335 108173 163134 175480 566122 II-A A Virginia Mason Medical Center, EIN 91-0565539, 1100 Ninth Avenue, Seattle, WA 98101. Electing Member. Grassroots Lobbying Expenditures 133,386 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. Virginia Mason Medical Center pays membership dues to Washington State Hospital Association, a portion of which was used for legislative and lobbying activities. Virginia Mason Medical Center also pays membership dues to other professional health care organizations, a portion of which may be used for legislative and lobbying activities. II-A A continued Virginia Mason Institute, EIN 26-3763656, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. Lobbying Expenditures 0. Excess Lobbying Expenditures 0. II-A A continued Virginia Mason Health System, EIN 91-1351110, 1100 Ninth Avenue, Seattle, WA 98101. Non-electing member. Lobbying Expenditures 0. 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. Lobbying Expenditures 0. 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. Grassroots Lobbying Expenditures 42,094 Direct Lobbying Expenditures 60,000. Excess Lobbying Expenditures 0. false 14623410 480797 2089543 572858 16620892 13913976 230872 1031493 552931 14623410 14366911 541000 -427461 566474 13913976 14515607 61150 350255 560101 14366911 13453135 1797810 735338 14515607 0.57000 0.28000 0.15000 true false 40852921 40852921 614384341 212218963 402165378 22144527 14856595 7287932 406163614 325902446 80261168 20512579 1037892 19474687 550042086 Financial derivatives and other financial products Closely-held equity interests Federal income taxes Due to affiliates 9873994 Third Party Payor 9540953 Professional Liability 18010000 Accrued Retirement Expenses 72672448 Asbestos Abatement 384608 Deferred Rent Credits 4915122 115397125 X 1062310470 11635209 15637962 27273171 1035037299 12975779 12975779 1048013078 1023493861 7027907 7027907 1016465954 12975779 12975779 1029441733 V 4 Support health care mission of Virginia Mason Medical Center and research mission of Benaroya Research Institute at Virginia Mason. X 2 U.S. GAAP requires management to evaluate tax positions taken by the Medical center and recognize a tax liability or asset if the Medical Center 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 Medical Center and has concluded that as of December 31, 2017 and 2016, 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 Medical Center is subject to routine audites by taxing jurisdictions however, there are currently no audits for any tax periods in progress. The Medical Centers management believes it is no longer subject to income tax examinations for years prior to 2014. XI 2d Additional Pension Adjustment 6,566,172 Virginia Mason Institute Revenues 9,071,790 XI 4b Rental expenses 2,062,923 Financial reclasses 16,840 Cost of Goods Sold 1,142,461 Non-operating expenses 15,538,752 Rebate transfers 551,665 Equipment Transfers 73,906 XII 2d Virginia Mason Institute Expenses 7,027,908 XII 4b Rental expense 2,062,923 Financial reclasses 16,840 Cost of Goods Sold 1,142,461 Non-operating expenses 15,538,752 Rebate transfers 551,665 Equipment Transfers 73,906 East Asia and the Pacific Program Services Education 144075 Europe Including Iceland and Greenland Program Services Education 7454 North America Program Services Education 25255 Central America and the Caribbean Program Services Education 2658 South Asia Program Services Education 1361 180803 180803 false false false false false false Part I Line 3 Expenditures are actual expenses incurred in the region based on individual expense reports and tracking of expenditures by the department. true true X true X 0000000300.000000000000 false true true true false true true 7621 8156130 8156130 0.00790 12264 71325190 49769793 21555397 0.02090 19885 79481320 49769793 29711527 0.02880 8 1501 567977 107693 460284 0.00040 16 1016 12092936 7142257 4950679 0.00480 2656225 2656225 0.00260 24 2517 15317138 7249950 8067188 0.00780 24 22402 94798458 57019743 37778715 0.03660 true 5436525 202688244 239364641 -36676397 X true true 1 1 Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 virginiamason.org HAC.FS.00000010 X X X X A A 1 false false true X X X X X X X X X 16 true true false true X virginiamason.org X true 16 true virginiamason.org false true X 0000000300.000000000000 X X true true X X X true X virginiamason.org/FinancialAssistance X Virginiamason.org/FinancialAssistance X VirginiaMason.org/FinancialAssistance X X X X X X true X false X X X true X false false Group Virginia Mason Medical Center Line Part V, Section B, Line 5 Through Public Health - Seattle King County, the Medical Center conducted key informant interviews with community coalitions and organizations, education and government agencies about assets and resources that help their communities thrive, as well as concerns and health needs within their communities full list of organizations in CHNA summary. Group Virginia Mason Medical Center Line Part V, Section B, Line 6a The Medical Center worked with the following other hospital facilities in working on the current CHNA 1 EvergreenHealth 2 CHI Franciscan Health 3 GroupHealth 4 MultiCare 5 Overlake Medical Center 6 Seattle Cancer Care Alliance 7 Seattle Childrens 8 Snoqualmie Valley Hospital District 9 Swedish and 10 University of Washington Medicine. Group Virginia Mason Medical Center Line Part V, Section B, Line 11 Access to dental care was identified as a health need, but the Medical Center lacks the personnel to address this issue and it is being addressed by other organizations, such as NeighborCare. 8 Virginia Mason Federal Way 33501 First Way S Federal Way WA 98003 Outpatient Medical Center Virginia Mason Lynnwood 19116 33rd Ave W Lynnwood WA 98036 Outpatient Medical Center Virginia Mason Issaquah 100 NE Gilman Blvd Issaquah WA 98027 Outpatient Medical Center Virginia Mason Kirkland 11800 NE 128th St Suite 300 Kirkland WA 98034 Outpatient Medical Center Virginia Mason Bellevue 222 112th Ave NE Bellevue WA 98004 Outpatient Medical Center Virginia Mason University Village 2671 NE 46th St Seattle WA 98105 Outpatient Medical Center Virginia Mason Bainbridge Island 380 Winslow Way E Bainbridge Island WA 98110 Outpatient Medical Center Bailey Boushay House 2720 East Madison Seattle WA 98112 Skilled Nursing Facility Part I Line 3c Full or partial discounts may be provided to patients who are not otherwise eligible for Charity Care, i.e., with gross family incomes above three hundred percent 300 of the federal poverty guidelines adjusted for family size. Such discounts may be provided to patients with catastrophic costs or conditions when circumstances as determined by the Medical Center indicate that full payment may cause extraordinary financial hardship to the patient or the patients family. The Medical Center shall determine, on a case by case basis, whether a patient qualifies as Medically Indigent pursuant to its policy and shall, through Patient Financial Services, determine the amount of the discount, if any. Determinations shall be made expeditiously after submission of financial information by the patient, but shall not be subject to any appeal rights. Part I Line 7 The Medical Center used the direct expenses and revenues of the hospital to calculate the cost-to-charges ratio for the amounts included in the table reflected in Part I. The cost-to-charge ratio used was derived using Worksheet 2, Ratio of Patient Care Cost-to-Charge ratio per the instructions. Part III Line 2 The Medical Center calculated the bad debt expense based on the actual write-offs for bad debt expense incurred during the year. The bad debt write-offs as a percentage of total write-offs is allocated to the total deductions from revenue recorded for the year. Part III Line 4 The Medical Center provides an allowance for potential uncollectible patient accounts receivable whereby such receivables are reduced to their estimated net realizable value. For accounts receivable associated with patients who have insurance coverage, the Medical Center analyzes contractually due amounts based on historical collection experience and provides an allowance for uncollectible accounts based on aging and other relevant factors, if necessary. For accounts receivable associated with self pay patients, the Medical Center records an allowance for uncollectible accounts in the period of service based on aging, historical collection experience, and other relevant factors. There are various factors that can impact the collection trends, such as changes in the economy, which in turn have an impact on unemployment rates and the number of uninsured and underinsured patients, the increased burden of co payments to be made by patients with insurance, and business practices related to collection efforts. These factors continuously change and can have an impact on collection trends and the estimation process. The difference between the standard or contractual rates and the amounts actually collected after all reasonable collection efforts have been exhausted is charged off against the allowance for uncollectible accounts. The following information summarizes the changes in the allowance for uncollectible accounts during the year ended December 31, 2016 Allowance for uncollectible accounts at beginning of the year 6,075,000 Write-offs of accounts deemed uncollectible 9,268,000 Provision for bad debt 9,566,000 Allowance for uncollectible accounts at the end of the year 6,373,000. For the year ended December 31, 2017 Allowance for uncollectible accounts at the beginning of the year 6,373,000 Write-offs of accounts deemed uncollectible 4,579,000 Provision for bad debt 12,634,000 Allowance for uncollectible accounts at end of the year 14,428,000. Part III Line 8 The Medical Centers calculation of the Medicare shortfall related to Hospital-based inpatient and outpatient shortfall is 36,676,397. The Medical Center employs over 410 physicians who provide professional services to patients which are not covered in this number. In addition, the Medical Center operates satellite clinics and ambulatory surgery centers which are not reported in the Medicare cost report. For all of its patient services, the Medical Center utilizes a comprehensive electronic cost reporting package which uses the directly assigned general ledger costs and allocates all overhead costs to operating costs using a model inspired by the Medicare cost report. This model with the Medical Centers calculation shows a Medicare shortfall of 30 million which is not included in the tradional cost report primarily due to shortfall of Medicare professional fees versus costs. Part III Line 9b The Medical Centers mission is to improve the health and well-being of the patients it serves. To ensure the Medical Center continues to have the resources to fulfill its mission, it must balance the financial needs of its patients with those of the Medical Center. In all instances, the Medical Center will treat our patients with dignity, compassion and respect. The Medical Center expects payment in full upon receipt of the patients first billing. Patients will receive monthly Medical Center statements upon determination of the patients private responsibility. A Virginia Mason Clinic statement will be sent representing the professional component of services provided. If services were provided or processed at the downtown campus except the Health Resources Building, which is not licensed as part of the hospital, a Hospital statement will also be sent representing the facility/technical component of services. As outstanding balances age, statement messages dunning, collection letters and/or telephone calls may be used at appropriate intervals as determined by the Medical Center. Delinquent accounts may be forwarded to a third party where a series of collection contacts letters and phone calls will be initiated. Delinquent self pay accounts that have not been paid in full or established an approved installment payment plan may be referred to a collection agency. This occurs approximately 130 days from determination of patient responsibility. The Patient Financial Services management team has responsibility for determining under what circumstances a balance may be referred for collection agency resolution. The Medical Center recognizes there are occasions when a patient is not financially able to pay their medical bill in full. Those patients who indicate they are experiencing financial hardship will be offered the opportunity to apply for charity care assistance. Collection activity will be suspended pending eligibility determination. If the patients income is greater than 300 of the current years federal poverty guideline FPG and the patient is determined not be be medically indigent, charity is denied and alternative payment arrangements are discussed. If the patients income is less than 300 of the current years FPG, the patient will complete the charity application and send supporting documentation. If charity determination is approved, the charity care discount is applied to the outstanding account balance based on the FPG determination and a confirmatory letter is sent to the patient. If charity is denied, the Medical Center will send a denial letter to the patient with information on the patients appeal rights. A summary report of collection activities taken will be provided to the Medical Center Board on an annual basis per the Washington State Hospital Association WSHA guidelines. Part VI Line 2 The Medical Center conducts a Community Health Needs Assessment CHNA every three years. The CHNA can be found at VirginiaMason.org/connectingwithourcommunities. Our CHNA drives our community work and serves as a guideline to help us achieve three basic goals 1 Improve the communitys health status and overal qualify of life 2 Reduce health disparities within the community and 3 Increase access to preventive services. The latest CHNA was published in 2016. It was developed in partnership with Public Health - Seattle and King County. The Medical Centers 2016-2018 CHNA is an updated and expanded version of the collaborative CHNA. It includes secondary data from a variety of local, state, and federal agencies, including Public Health - Seattle and King County. It also includes key informant interviews with individuals representing publich health, city government, the healthcare safety net, cultural communities, schools, and health advocacy. A 2016-2018 CHNA Implementation Strategy was also developed and serves as a living document to guide our community benefit program. Our community benefit program focuses our resources on the needs of the community and the strengths of the Medical Center. Some examples A Subsidized Health Services Every community needs certain health care services that typically cost more to deliver than the provider of the services receives. These subsidized health services are part of the Medical Centers mission because they are needed in the community and otherwise would not be available to meet patient needs. They include 1 Emergency Department open to all 2 Bailey-Boushay House BBH, an inpatient and outpatient center for people living with HIV/AIDS and other complex diseases 3 Partnership with Publich Health-Seattle King County to provide the Edward Thomas House respite program for homeless adults in King County 4 Partnership with Project Access Northwest PANW to provide specialty care services to community clinic patients and premium assistance to low income patients. B Uncompensated Care As a nonprofit organization, the Medical Center is committed to serving patients who are uninsured, underinsured or otherwise unable to pay for their medical care. C Research The Medical Center conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. Part VI Line 2 continued D Education 1 The Medical Center is a premier teaching hospital that offers postgraduate education programs through its Graduate Medical Education Department GME. All GME postgraduate training programs are accredited by the Accrediation Council on Graduate Medical Education ADGME. 2 The Medical Centers GME program partners with Public Health - Seattle King County Health Services Division, providing 12 residents for the Eastgate Public Health Center. E Community Partnerships The Medical Center is a member of the King County Community Health Needs Assessment Collaborative, a partnership that includes all King County hospitals, Public Health - Seattle King County, and the Washington State Hospital Association. In addition to collaborating on the future CHNAs, this partnership has formed Hospitals for a Healthier Community HHC and is researching and planning collaborative community benefit activities that will comprehensively address community health issues. F Community Health Improvement Services 1 Community health education, such as Nutrition and Fitness for Life pediatric program and classes in the Buse Diabetes Teaching Center. 2 Nutrition and fitness education at Marys Place, a day shelter for homeless women and children 3 Providing education informatioin through our pediatric departments and community events to parents regarding firearm safety in homes where their children visit and play 4 Membership and partnership in regional Firearm Tragedy Prevention Network 5 Healthy cooking demonstrations at Plymouth Housing Group 6 Health fair sponsorships in the community 7 Free flu shots and health screenings for uninsured/underinsured and the homeless 8 Partnership with WithinReach to provide health care resources to families 9 Partnership with Washington Green Schools to provide green sustainable curriculums and training in public schools 10 Partnership with NeighborCare to provide funding for expanded housing and mental health care 11 Providing resources to Refugees Northwest and International Rescue Committee to assist refugees and immigrants with access to health care 12 Partnership with the Seattle/King County clinic to provide flu shots during their four-day free health clinic and 13 Bereavement support through our Separation and Loss Services. Part VI Line 3 The Medical Center informs and educates patients and persons who may be billed for patient care about their eligibility for assistance under federal, state, or local government programs or under the Medical Centers charity care policy at various points beginning with scheduling and continuing through the patient billing process. At scheduling, if a patient indicates they are without insurance and unable to pay for the services, their account is flagged for a Patient Account Specialist to contact them to discuss assistance. At arrival for an appointment, the Medical Centers admissions lobby areas have signage regarding availability of charity care, a copy of the charity care policy and information regarding who to contact for assistance. During the arrival process, the Medical Centers admissions personnel will confirm ability to pay. If financial need or financial hardship is indicated, the Medical Center Financial counselors will work with the patient to determine whether Medicaid, state program options, or charity care would be appropriate. The Medical Centers charity policy and financial assistance contact information is also included on patient bills. The Medical Centers Patient Guide to Fees and Billings include information on charity availability and contact information to initiate an assessment. The brochure is available in all patient lobbies for the patient to pick up. The brochure is also sent out by Patient Account Services staff based on a patients expressed concerns either via phone or letter. The Medical Centers website also includes information about charity availability and the contact number to initiate an assessment. Part VI Line 4 In 2017, the Medical Center served over 229,743 individuals in its hospital and medical centers. The Medical Centers service area encompasses the communities where its facilities are located and where 75 percent of its patients reside King County, the southwest region of Snohomish County, and Bainbridge Island in Kitsap County. Residences of the Medical Center patients 2017 data are 1 Seattle 68,340 2 Seattle Suburbs King County outside of Seattle 91,736 3 Snohomish County 7,215 4 Bainbridge Island 9,370 5 Service area total 176,661 6 Other Washington State 45,742 7 Rest of the Northwest 4,367 8 Rest of United States 2,740 8 Other 233 for a total of 229,743. Part VI Line 4 continued The service area King County population is 2,188,649. The age and racial/ethnic profile of the total population was as follows 1 Total population 2,188,649 2 Under 18 years 446,484 3 Age 18-64 1,457,641 4 65 years or older 284,524 5 White 68 6 Hispanic 9.7 7 Black 6.8 8 Asian 18.2 9 American Indian/Alaska Native 1 10 Native Hawaiian/Pacific Island .9 11 Two or more races 5.1. According to the United States Census Bureau, the median household income for King County 2012-2016 was 78,800 with 9.3 living below the poverty level. Within King County, median income was lowest for blacks and American Indians/Alaska natives and in urban south King County. In King County, poverty rates are highest in White Center/Boulevard Park, several central and Southeast Seattle neighborhoods and Auburn. In March 2017, the unemployment rate in King County was 3.5 percent, down from 4.9 percent in March 2016. Part VI Line 5 The Medical Centers community benefit program is designed to improve our communitys health status and overall quality of life, reduce health disparities within the community and increase access to prevenitve servcies. To accomplish this, our organization contributes time, energy and money in the areas of improving health, providing free and subsidized care, health professionals education and research. Part VI Line 5 continued Uncompensated Care. As a non-profit organization, the Medical Center is committed to servicing patients who are uninsured, underinsured or otherwise unable to pay for their medical care. Under the Medical Centers charity care policy, free or reduced-cost medically necessary care after all health insurance has been exhausted is provided to individuals making up to 300 percent of the federal poverty level in keeping with the Washington State Hospital Association voluntary guidelines on billing the uninsured. In 2017, the Medical Center provided charity care to 7,621 patients at a cost of 8,156,130. In additioin, the Medical Centers unreimbursed Medicaid was provided at a cost of 31,094,124. Part VI Line 5 continued Community Health Improvement Services. Improving health and quality of life extends beyond diagnosis and treatment. It also requires community health education and outreach services. Health improvement and outreach services provied by the Medical Center include the following 1 community health education, such as classes in the Buse Diabetes teaching Center 2 free health screenings at community health fairs 3 free flu shots and health screenings for the homeless in conjunction with United Way of King Countys Community Resource Exchange 4 sponsorship of many professional facilitated support groups, including diabetes prevention and management 5 bereavement support through our Seapration and Loss Services and 6 leadership roles in several community organizations, which focus on health care. Part VI Line 5 continued Health Professions Education. The Medical Center strongly supports medical education to ensure our patients and the community benefit from advances in medical care. The Medical Center is a premier teaching hospital that offers postgraduate education programs through its Greaduate Medical Education Department GME. All GME postgraduate training programs are fully approved by the Accreditation Council on Graduate Medical Education ADGME. The Medical Center trains more than 120 residents and fellows annually. The Medical Centers GME program is partnered with Public Health - Seattle King County Health Services Division, providing 12 residents for the Eastgate Public Health Center, as well as providing residents at the Carolyn Downs Family Medical Center, Pike Market Medical Clinic and North Publich Health Center. The Medical Centers collaboratioin with the Eastgate Public Health Center combines the Medical Centers commitment to teaching and community benefit through an innovative public-private program which allows residents to be more involved in the care of the underserved and uninsured. The Eastgate clinic is the largest of three county publich health clinics in east King County and offers a variety of primary care services to adults and children. Approximately 50 percent of patients seen at the clinic do not have insurance or the means to pay, and approximately the same percentage do not speak English and require interpretive services. This resident clinic improves overall health in the community and gives back to our community in a meaningful way. The Medical Center serves as an internship site for students in a variety of other health programs, such as nursing, pharmacy, respiratory therapy and laboratory technology. Part VI Line 5 continued Subsidized Health Services. Every community needs certain health care services that typically cost more to deliver than the provider of these services receives. These subsidized health services include Bailey-Boushay House BBH, a nursing residence and Adult Day Health center for people living with HIV/AIDS. Part VI Line 5 continued Research. The Medical Center conducts medical research through its affiliate, Benaroya Research Institute at Virginia Mason BRI. BRI is a non-profit biomedical research institute that works to unlock the mysteries of the immune system. Its team of world-renowned scientists is focused on identifying causes and cures for devastating diseases including diabetes, arthritis, heart disease and cancer. In 2017, the Medical Center provided 1,750,000 to support research activities at BRI. Part VI Line 5 continued Environmental Improvements. The Medical Centers environmental stewardship initiative, EnviroMason, provides the framework for making unique energy and waste management decisions, such as setting policies on reliability and use, making efficiency improvements, supporting capital planning and infrastructure design, and encouraging employee participation and innovation. In 2013, the Medical Center hired a full time sustainability director. In 2007, the Medical Center became the first hospital in the Pacific Northwest to eliminate garbage cans and Styrofoam use and begin composting food waste. Since 2011, our energy conservation projects have saved over 4.5 million kilowatt hours per year. Between 2011 and 2017, the Medical Center diverted more than 6,400 tons of waste from the landfill. We accomplished this by expanding recycling across our facilities improving our electronics recycling providing composting to all lunch and break rooms implementing a construction debris recycling program recycling the fiber from our shredded office paper and reprocessing medical supplies that can be reused. Additonally, the Medical Center was the first hospital in the region to implement an operating room OR recycling program. Part VI Line 5 continued EnviroMasons team approach extends from strong support from senior leadership to active engagement of our team members. Team engagement is facilitated by the Virginia Mason Production System VMPS, our Green Team and special sustainability events. One of the elements of the VMPS is our Everyday Lean Idea ELI system, which is a tool for every team member to test, implement, and share process improvement ideas. The Green Ideas category of the system enables team members to test sustainabillity ideas in their department, and to share them across the organization. Our Green Team is a cross-disciplinary group of more than 50 volunteers from across our organization. They meet monthly to share and work on environmental sustainability initiatives and issues. Their goal is to reduce the environmental impact of the Medical Centers operations by educating and empowering team members to make more sustainable choices. EnviroMason special events also help us engage our team members and Green Team with sustainability efforts. We sponsor events such as our farmers market, community supported agriculture CSA program, efficient light bulb giveaways, commuter information days, mercury thermometer exchanges, and a variety of Earth Day events. The Medical Center signed on to the national Healthy Food in Health Care Pledge. As an organizatioin dedicated to preserving health, the Medical Center is reducing our carbon footprint in operations through energy efficiency commute trip reduction landfill diversion activities, like recycling, composing, and food donations and buying local goods and services. Part VI Line 5 continued Medical Staff. The Medical Center has 637 members on its active hospital staff, including Medical Center physicians, and other community providers. Part VI Line 5 continued Accountability to the Community. The Medical Center is accountable to the public through its Board, the voting members of which are community members who represent the diverse populations and needs of the communities served by the Medical Center. The Medical Center is also accountable to the community through its sole voting member, the Health System, whose Board is composed primarily of community members. In furtherance of its commitment to responsible governance practices, the Medical Centers Audit and Compliance Committee, compose entirely of community members of the organizations Board, is charged with the overseeing the selection and discharge of the Medical Centers independent financial auditors and oversight of the Medical Centers compliance programs. In addition, the Medical Center has chartered a Governance Committee, responsible for reviewing and evaluating the organizations corporate governance policies and guidelines, and providing oversight of procedures for disclosure and management of conflict of interest. The voting members of the Governance Committee are independent community members of the Medical Centers board. As a further mechnism for community involvement and leadership, the Medical Center has established a Board of Governors, an advisory body of community representatives. The Board of Governors regularly participates in extensive tours of various areas of the Medical Center facilities and becomes involved in forums for in-depth discussion of issues of importance to these organization and the communities they serve. Bailey-Boushay House, a division of the Medical Center which provides day health and skilled nursing facility services to individuals living with HIV/AIDS, also has an advisory board comprised primarily of representatives of the community who provide input and guidance on serving the community. Part VI Line 5 continued Use of Financial Surpluses. All financial surpluses from the operation of the Medical Center are usesd exclusively to further its charitable purposes. No individual receives any portion of the organizations respective surplus as a result of ownership or any other insider relationship. The Compensation and Benefits Committee of the Medical Center Board, which directs the performance review and approves the compensation and benefits of the Medical Centers senior leadership, is composed entirely of community members of the Board who have no financial ties to the Medical Cener, either directly or through family or business relationships. Part VI, Line 7 WA true VIRGINIA MASON HEALTH SYSTEM 1100 NINTH AVENUE SEATTLE WA 98101 911351110 501c3 3337906 Operating Support BENAROYA RESEARCH INSTITUTE AT VIRGINIA MASON 1201 NINTH AVENUE SEATTLE WA 98101 910653422 501c3 1750000 Operating Support PUBLIC HEALTH SEATTLE KING COUNTY 401 FIFTH AVE S SEATTLE WA 98104 916001327 501c1 81000 General Support PROJECT ACCESS NORTHWEST 1111 HARVARD AVE SEATTLE WA 98122 204377921 501c3 75000 General Support YWCA OF SEATTLE KC SNOHOMISH CTY DEVELOPMENT DEPT 1118 FIFTH AVE SEATTLE WA 98101 910482890 501c3 54370 General Support JDRF NORTHWEST CHAPTER 1215 FOURTH AVE S SEATTLE WA 98161 231907729 501c3 53250 General Support AMERICAN HEART ASSOCIATION 710 SECOND AVE STE 900 SEATTLE WA 98104 135613797 501c3 37500 General Support WHY NOT YOU FOUNDATION 3200 CARILLON POINT KIRKLAND WA 98033 464784365 501c3 32000 General Support GIRLS ON THE RUN PUGET SOUND 1404 E YESLER WAY 201 ATTN KERIN BR SEATTLE WA 98122 841618574 501c3 26900 General Support SEATTLE CENTER FOUNDATION 05 HARRISON ST 302 ATTN CATHY SANDE SEATTLE WA 98109 911003385 501c3 24000 General Support INTERNATIONAL RESCUE COMMITTEE 1200 SOUTH 192ND STREET SUITE 101 SEATAC WA 98148 135660870 501c3 17500 General Support NATIONAL MULTIPLE SCLEROSIS SOCIETY 192 NICKERSON ST STE 100 SEATTLE WA 98109 910742424 501c3 17500 General Support BELLEVUE DOWNTOWN ASSOCIATION 400 108TH AVE NE STE 110 BELLEVUE WA 98004 916183167 501c3 15000 General Support NORTHWEST KIDNEY CENTERS PO BOX 3035 SEATTLE WA 98114 916057438 501c3 15000 General Support SEATTLE SYMPHONY ORCHESTRA PO BOX 21906 SEATTLE WA 98111 910667412 501c3 15000 General Support MARYS PLACE SEATTLE 1830 9TH AVE SEATTLE WA 98101 272087950 501c3 13000 General Support BAINBRIDGE ISLAND DOWNTOWN ASSOCIATION 120 MADRONE LANE N STE 203 BAINBRIDGE ISLAND WA 98110 911390519 501c3 10025 General Support FRANCISCAN FOUNDATION PO BOX 1502 TACOMA WA 98401 911145592 501c3 10000 General Support ROBERT VASEN FOUNDATION 2807 102ND AVE SE BELLEVUE WA 98004 208656415 501c3 10000 General Support CCFA NORTHWEST 9 LAKE BELLEVUE DR BELLEVUE WA 98005 136193105 501c3 9500 General Support FOUNDATION FOR EDMONDS SCHOOL DISTRICT PO BOX 390 LYNNWOOD WA 98046 911296816 501c3 7500 General Support AMERICAN CANCER SOCIETY 2120 FIRST AVE N SEATTLE WA 98109 131788491 501c3 6000 General Support GAY CITY 517 E PIKE ST SEATTLE WA 98122 911685822 501c3 5500 General Support BALLARD HIGH SCHOOL FOUNDATION PO BOX 17626 SEATTLE WA 98127 911811275 501c3 5000 General Support BLOODWORKS NORTHWEST 921 TERRY AVE SEATTLE WA 98104 SEATTLE WA 98104 911019655 501c3 5000 General Support DIRECT RELIEF 27 S LA PATERA GOLETA CA 93117 951831116 501c3 5000 General Support FOUNDATION FOR HEALTH CARE QUALITY 705 SECOND AVE SUITE 703 SEATTLE WA 98104 911419327 501c3 5000 General Support HOUSTON FOOD BANK 535 PORTWALL ST HOUSTON TX 77029 742181456 501c3 5000 General Support NORTHWEST PARKINSON'S FOUNDATION 400 MERCER STREET STE 502 SEATTLE WA 98109 911923159 501c3 5000 General Support PANCREATIC CANCER ACTION NETWORK 1500 ROSECRANS AVE STE 200 ATTN FIN MANHATTAN BEACH CA 90266 330841281 501c3 5000 General Support SEATTLE CHILDREN HOSPITAL PO BOX 24049 SEATTLE WA 98124 910564748 501c3 5000 General Support SEATTLE CITYCLUB 240 SECOND AVE S STE 208 SEATTLE WA 98104 911148262 501c3 5000 General Support SOLID GROUND PO BOX 31066 SEATTLE WA 98103 237421892 501c3 5000 General Support THE 5TH AVENUE THEATRE 1326 5TH AVE STE 735 SEATTLE WA 98101 911087612 501c3 5000 General Support 34 Part I Line 2 The funds provided to Virginia Mason Health System and Benaroya Research Institute at Virginia Mason are for operational support or specific activities. Assistance provided to other non-profit organizations consisted of donations made to support specific events sponsored by the recipient organizations. X X true true X X X X X false true false false false false false false false Gary Kaplan MD Chairman, CEO 1103978 285 23334 27255 41740 1196592 Suzanne Anderson President 628038 98 20580 105470 30856 785042 Katerie Chapman Senior Vice President, Patient Care Services 391716 122 6712 70689 27816 497055 Lucy Glenn MD Chief of Radiology 573804 19188 43337 11830 648159 Michael Glenn MD Chief Medical Officer 686960 8 937370 116095 13232 1753665 563673 Fred Govier MD Chief of Surgery 678718 240 19188 14846 20600 733592 Joyce Lammert MD Medical Director, Hospital 467090 25 19220 14846 11630 512811 Sarah Patterson Executive Sensei, Former Key Employee 318342 200 16656 14846 30100 380144 William Poppy Senior Vice President, CTO 366409 50 64068 14845 32450 477822 Steve Rupp MD Physician, Former Key Employee 287651 284 1219 14846 20887 324887 Donna Smith MD Medical Director, Clinic 462542 57 18774 86096 25726 593195 Charleen Tachibana RN Sr VP, Quality and Safety, Former Key Employee 419860 348 651298 80470 13158 1165134 344554 Catherine Potts MD Physician, Former Key Employee 218242 25 14412 14846 12409 259934 Shelly Powell Vice President, Patient Care Services 253776 235 1380 14846 22328 292565 Michael Gluck MD Chief of Medicine 592808 190 19220 19304 30584 662106 Denise Dubuque Vice President, Patient Care Services 238338 102 2580 14846 19406 275272 Cindy Rockfield Vice President, Patient Care Services 213782 57 900 14845 16108 245692 Christopher L Fellows MD Physician 1439333 4145 19188 45526 20823 1529015 Richard A Kozarek MD Physician 933228 8 72277 70603 20861 1096977 50000 Santokh Gill Vice President, Patient Care Services 209308 8 900 14845 31336 256397 Rajiv Sethi MD Physician 1296888 180 9806 25161 1332035 Ingrid Gerbino MD Chief, Primary Care 328420 81 18414 18617 9214 374746 Craig Goodrich Senior Vice President, CFO 328675 132 4960 14845 22089 370701 Steven Bayles Physician 918586 18414 14845 21778 973623 Jean-Christophe Leveque Physician 904846 30200 270 9806 22708 967830 Steve Schaefer Senior Vice President, Support Services 294967 73 2580 14845 29927 342392 Part I Line 1a Social club dues are provided to two members of the senior leadership team who use the club memberships for business purposes. These payments are treated as non-taxable. Part I Line 1b All invoices for payment of social club dues and associated monthly expenses are paid pursuant to the Medical Center Business Expense Policy and Social Club Dues Policy. 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 Richard Kozarek, M.D. received a payout of 52,299 from a Supplemental Executive Retirement Plan. Michael Glenn, M.D. received a payout of 918,182 from a Supplemental Executive Retirement Plan. Charleen Tachibana received a payout of 614,038 from a Supplemental Executive Retirement Plan. Suzanne Anderson accrued benefits of 90,625 in a Supplemental Executive Retirement Plan. Katerie Chapman accrued benefits of 55,844 in a Supplemental Executive Retirement Plan. Michael Glenn, M.D. accrued benefits of 101,250 in a Supplemental Executive Retirement Plan. Donna Smith, M.D. accrued benefits of 71,250 in a Supplemental Executive Retirement Plan. Charleen Tachibana accrued benefits of 65,625 in a Supplemental Executive Retirement Plan. Richard Kozarek, M.D. accrued benefits of 50,000 in a Supplemental Executive Retirement Plan. A Washington Health Care Facilities Authority 911108929 93978HSS5 2017-08-31 287837574 Refund/Redeem bonds false false false A 287837756 2428792 285381174 27790 true false false true A false false true true false false false true A false false false true false false false true A true Part I Line A Column C 93978HSD8, 93978HSE6, 93978HSF3, 93978HSG1, 93978HSH9, 93978HSJ5, 93978HSK2, 93978HSL0, 93978HSM8, 93978HSN6, 93978HSP1, Part I Line A Column C continued 93978HSQ9, and 93978HSR7. Part I Line A Column F The proceeds of the Series 2017 bonds will be used for the purpose of providing part of the funds necessary to 1 refund, on an current basis the Authoritys revenue bonds, Series 1997B Bonds, the Series 2007A Bonds, the Series 2007B Bonds, and the Series 2007C Bonds and 2 pay costs of issuance of the bonds. The 1997B bonds were reissued December 1, 2007. The original bond proceeds were used to 1 finance or reimburse the Medical Center for the costs of constructing, remodeling and/or acquiring Health Care Facilities 2 fund the initial deposit to the Reserve Accounts for the Bonds 3 pay the premium for the Insurance Policy and 4 pay certain of the other costs of issuing the Bonds. The Series 2007A Bonds, the Series 2007B Bonds and the Series 2007C Bonds were originally issued December 1, 2007. The original bond proceeds of the reoffered 1997B Bonds together with the proceeds of the Series 2007 bonds were to be used for the purpose of providing part of the funds necessary to 1 refund, on an advanced and current basis, and to redeem the Authoritys revenue bonds, Series 1997A 2 reissue, refund, on a current basis and replace the Series 1997B Bonds as a variable rate obligation 3 reimburse the Medical Center for, or pay, the costs of acquiring, constructing, remodeling, renovating and equipping certain health care facilities 4 pay interest on the Series 2007 Bonds during construction 5 fund the initial deposits into respective debt service reserves for the Series 2007 bonds 6 pay the cost of credit enhancement, if any, and 7 pay issuance costs. Part II Line 3 Difference between Part I, column e and Part II, line 3 is investment earnings. Part II Line 7 Difference between Part II, Line 7 and Form 8038, line 24, is due to lower issuance costs than the estimated cost included in the proceeds. Joan Lange Sister of Robert Lemon, Director 98388 Employee false Columbia Hospitality Inc Entity more than 35 owned by John Oppenheimer, Director Provision of Services true CHI-VM LLC Entity more than 35 owned by John Oppenheimer, Director 2584905 Provision of Services false Part IV Line 1a Name of Interested Person Joan Lange Part IV Line 1b Relationship Sister of Robert Lemon, Director Part IV Line 1c Amount of Transaction 98,388 Part IV Line 1d Description of Transaction Employee of Medical Center Part IV Line 1e Sharing of Revenues No Part IV Line 2a Name of Interested Person Columbia Hospitality, Inc Part IV Line 2b Relationship Entity more than 35 owned by John Oppenheimer, Director Part IV Line 2c Amount of Transaction 0 Part IV Line 2d Description of Transaction Provision of management and hospitality services to Medical Center Part IV Line 2e Sharing of Revenues Yes Part IV Line 3a Name of Interested Person CHI-VM LLC Part IV Line 3b Relationship Entity more than 35 owned by John Oppenheimer, Director Part IV Line 3c Amount of Transaction 2,584,905 Part IV Line 3d Description of Transaction Provision of management services to Medical Center Part IV Line 3e Sharing of Revenues No Form 990, Part III, Line 1 The Medical Center provides integrated health services through a teaching hospital licensed for 336 beds and multi-specialty group practice of approximately 554 employed physicians, offering both primary and specialized care, through a regional network of neighborhood clinics and ambulatory surgery centers. The Medical Center also operates Bailey-Boushay House, a skilled nursing facility and day health center serving the HIV/AIDS community. The Medical Center patient care services are integrated with and enhanced by education and research activities which includes a graduate medical education program providing training to over 125 residents, fellows and medical students each year. In addition, the Medical Center sponsors training programs for pharmacy and a variety of other health services such as nursing, respiratory therapy, physical therapy, speech and language therapy and laboratory technology. Form 990, Part III, Line 4a The Medical Center is committed to subsidizing certain health services due to the demonstrated need for these services in the community. Since 1992, the Medical Center has addressed the treatment of HIV/AIDS by operating Bailey-Boushay House Bailey-Boushay, a 35-bed skilled nursing facility. The first facility in the nation built specifically for the care of people living with AIDS. Bailey-Boushay now also serves other individuals who need intensive nursing care, many of whom are Medicaid recipents. In addition to the care provided to its residential population, Bailey-Boushay provides day health services to 368 clients annually, allowing them to live independently with HIV/AIDS. The Medical Center also offers emergency services 24 hours a day, 7 days a week. The department is staffed by board-certified emergency physicians, physician assistants and certified emergency nurses. The Medical Center is committed to providing necessary medical services regardless of a patients ability to pay and without discrimination as to race, color, creed, national origin, religion, sex, sexual orientation, disability, age, source of income, or any other class protected by federal or Washington state law, or who have an emergency medical condition. The Medical Center is a participating hospital in the Washington State Medicaid Contracting Program. Charity Care is provided according to a patients gross family incomes at or below 300 of the Federal poverty guidelines adjusted for family size. Fulll or partial charity care may be provided to paitents with gross family incomes exceeding 300 of the federal poverty level when circumstances indicate that full payment may cause financial hardship so as to significantly harm the patient or patients family. Patients without health insurance are eligible for a twenty-five percent 25 discount on medically necessary services under the Medical Centers Discounts for Uninsured Patients Policy. Charity care was provided at a cost of 8,156,130 during the year, along with 31,094,124 of Medicaid contractual allowances. Charity care does not include bad debts which is the amount the Medical Center is not paid by patients deemed able to pay their bills. Form 990, Part III, Line 4b The Medical Centers graduate medical education program maintains education affiliation agreements with community clinics under which the Medical Centers residents provide care to patients at clinics serving low-income and uninsured patients. The Medical Center has an affiliation with Eastgate Public Health Clinic operated by Seattle and King County Public Health to provide a resident clinic 4-days a week under the supervision of Medical Center physicians. This affiliation has expanded access to health care for King County residents and enhanced the educational opportunities of internal medicine residents. The Clinical Nursing Education CNE program offered 44 CNE events in 2017 to 862 attendees. Participants include nurses the primary audience - RNs and LPNs and advanced practice registered nurses CNS, CNL, ARNP, as well as patient care technicians, nursing students, nurse technicians, respiratory therapists, social workers, educators, dietitians, specialized technicians e.g. GI Techs, Donation Techs, Radiation-Oncology Techs, medical assistants, medical technologists, administrative assistants, chaplains, bereavement coordinators and physicians. The Medical Center also serves as an internship site for students in a variety of allied health programs such as nursing, pharmacy, respiratory therapy, physical therapy, occupational therapy, social work, sleep disorders, speech and language therapy, radiology and laboratory technology. Successful relationships have been built with vocational training programs for medical assistants as well. The Medical Center provides strong support for continuing medical education CME. The Medical Centers CME program is accredited by the Accreditation Council for Continuing Medical Education ACCME and was last reaccredited in 2016, receiving Accreditation with Commendation. In 2017, the CME department sponsored 39 courses either full-, half-, or multi-day totaling 505.50 hours of instructions. These activities were attended by 1,080 participants, including 539 physicians. In 2013, CME was approved by the American Board of Medical Specialties Portfolio Program, permitting Virginia Mason to endorse and award AMA PRA Category 1 Credit TM for quality improvement projects for physician Maintenance of Certification MOC Part IV credit. In 2017, 1 physician completed a project. During 2017, 44 one-hour Grand round presentations were presented at the Medical Center, with the on-site audience averaging 114 attendees weekly. The Grand Round series is also broadcast via videoconference to the organizations satellite locations and to 8 off-site health care systems throughout Alaska and Washington State. The CME department supports 23 additional Regularly Scheduled Series in including 13 different Cancer Care tumor boards, Clinical Cardiovascular, Imaging, Competencies and Incidents, Vascular Surgery, GI Radiology, GI Pathology, Pharmacy and Therapeutics, and Schwartz Rounds. During the year, 622.75 hours of instruction were offered through these 23 series. Cumulative participation hours tracked for these 23 series totaled 6,032, of which 4,844 were physician attendance hours. Approximately 12 of our investigators have faculty appointments at the University of Washington, including 6 at the professorship level. The Medical Center also maintains a medical library to support its education and research activities. Form 990, Part III, Line 4c The Medical Center provided support of Separation and Loss which provides services for adults and children ages 7-18 whose loved one has died as the result of a sudden, violent death by criminal act homicide, including terrorism, suicide or other types of violent death. Services available include therapy groups, short-term therapy, psychiatric consultation and medication management, community, workplace, family and school crisis response and professional training. In 2017, the Medical Center provided 130,000 toward support of Separation and Loss. Form 990, Part III, Line 4d The Medical Center provides funds and in-kind services to community organizations which are consistent with the Medical Centers charitable purpose. A list of community donations is included on Schedule I. The following is a description of selected recipients and is not all-inclusive. 1 The Medical Center supported Go Red for Women Heart Awareness and the Annual HealthWalk which benefited the American Heart Association AHA in 2017. AHAs mission is building healthier lives, free of cardiovascular diseases and stroke, with the goal to improve the cardiovascular health of all Americans by 20 percent, and reduce deaths from cardiovascular diseases and stroke by 20 percent, but the year 2020. 2 The Medical Center was a sponsor of the JDRF Gala to benefit the Juvenile Diabetes Research Foundation JDRF in 2017. The JDRFs mission is to find a cure for diabetes and its complications through the support of research. 3 The Medical Center was a sponsor of National Multiple Sclerosis Society Dinner of Champions, Annual Luncheon and Annual Walk in 2017. The vision of national Multiple Sclerosis Society is a world free of Multiple Sclerosis. 4 The mission of Northwest Kidney Centers is to promote optimal health, quality of life and independence of people with kidney disease through patient care, education and research. The Medical Center provided support to Northwest Kidney Centers in 2017 through sponsorship of the Breakfast of Hope and the Discovery Gala, which raised funds for charity care, diabetes support services, and Kidney disease research. Form 990, Part VI, Section A, Line 1a The governing body delegates to an Executive Committee comprised of the Chairman, Vice Chairman, Secretary and Treasurer the authority of the Board of Directors in the management of the corporation to act only in time sensitive or emergency situations as determined by the Executive Committee, such authority to be exercised in time periods between regularly scheduled meetings of the Board of Directors. All members of the Executive Committee are members of the governing body of the corporation. The Executive Committee does not have the authority to amend, alter or repeal the Bylaws, elect, appoint or remove any member of the Executive Committee or any director or officer of the corporation amend the articles of incorporation adopt a plan of merger or adopt a plan of consolidation with another corporation authorize the sale, lease or exchange all or substantially all of the property and assets of the corporation not in the ordinary course of business authorize the voluntary dissolution of the corporation or revoke proceedings therefore adopt a plan for the distribution of the assets of the corporation amend, after or repeal any resolution of the Board which by its terms provides that it shall not be amended, altered or repealed by the Executive Committee or terminate the Chief Executive Officer. The Executive Committee also periodically evaluates the effectiveness of Virginia Mason Medical Centers VMMC systems for resolving internal conflicts. The Board also delegates to the Executive Committee the authority of the Board to make all appointments and reappointments to the Medical Staff of the hospital. Form 990, Part VI, Section A, Line 2 Family relationship between key employees Michael Glenn, MD and Lucy Glenn, MD. Form 990, Part VI, Section A, Line 6, 7 Virginia Mason Health System VMHS is the sole corporate member of the Medical Center. VMHS as the sole member has the following approval rights 1 election and approval of Directors and Officers of the Board of Directors 2 approval of the appointment of the Chief Executive Officer 3 removal of Directors and Officers of the Board of Directors 4 approval of all long-range plans proposed by the Board of Directors 5 approval of the annual capital and operating budgets proposed by the Board of Directors 6 approval of the borrowing of funds where the amount is in excess of Ten Million dollars 7 approval of the sale, lease, exchange, mortgage, pledge or disposal of all or substantially all of the property and assets 8 approval of all amendments to the Articles of Incorporation or Bylaws and 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 VMMC Form 990 and 990-T preparation process including 1 selection, engagement, and performance of an independent tax preparer 2 review of the annual draft Form 990 and 990-T tax returns, and 3 recommending the final Form 990 and 990-T tax returns for review to the VMMC Board of Directors. At the ACC September meeting, management provided the ACC with an initial draft of the Form 990 and the tax return reviewer presented an overview of the Form 990 preparation process. Following the September meeting, the ACC Chair updates the Medical Center Board on the Form 990 preparation. 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, and provided to the Board for review of the final Form 990 prior to filing. The final Form 990 and 990-T tax returns are provided to each member of the Board of Directors via electronic delivery by posting on a secure website which allows online viewing of Board documents. Form 990, Part VI, Section B, Line 12c The Governance Committee of the Board has accountability for oversight of the process for disclosure, evaluation and management of conflicts of interest involving any member of the Board, executive leadership or key employees Covered Person. Pursuant to the Conflicts 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 1 received a copy of the Conflicts of Interest Policy 2 has read and understands the Policy 3 has agreed to comply with the Policy and 4 understands that the Medical Center 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 the Medical Centers 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 Conflicts of Interest Policy requires that copies of the Conflict of Interest Questionnaire completed annually by each Covered Person and any 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 resolution 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, a committee composed solely of independent directors of VMHS none of whom have a conflict of interest, is accountable for setting reasonable total compensation packages for each Medical Center executive, including the CEO, officers and key employees Executives consistent with the Medical Centers 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 Medical Center Executives. The Committee assesses performance against these goals. The Committee selects and engages a qualified independent compensation consultant to review and analyze the total compensation and benefits packages to the Executives. The Committee as part of its analysis obtains from the compensation consultant appropriate comparability data including total compensation paid by similarly situated for-profit and non-profit health care organizations for positions that are functionally comparable to each of the Executives. With respect to those Executives below the level of Chair/Chief Executive Officer, the Committee requests that the Chair/Chief Executive Officer work with the compensation consultant to formulate a compensation recommendation for each such Executive, consistent with VMHSs compensation philosophy and principles. Consistent with VMHSs compensation philosophy and principles, the Committee approves total compensation packages for each of the Executives based on information presented to the Committee, reasonableness and the best interests of the Medical Center. The Committees decisions regarding compensation for each Executive are documented in written resolutions and minutes of the Committee. The Committee promptly reports its action to the Board whose reports are reflected in the Boards minutes. The Executives that were reviewed in 2017 were Chief Executive Officer, President, Chief Financial Officer, Senior Vice Presidents, Vice Presidents, Physician Chiefs, Clinic Medical Director, Hospital Medical Director, and Chief Medical Officer. Form 990, Part VI, Section C, Line 19 The organizations Articles, Bylaws, Conflict of Interest Policy, and Financial Statements are made available upon request. Form 990, Part XI, Line 9 Additional Pension Adjustment 3,734,454 Capital Donations 1,400. 1000 Madison LLC 1100 Ninth Avenue Seattle WA 98101 204018216 Real Estate WA 1840346 27685620 VMMC 1005 Spring Street LLC 1100 Ninth Avenue Seattle WA 98101 204816736 Real Estate WA 2066098 3737838 VMMC Health Resource Services LLC 1100 Olive Way Seattle WA 98101 262800994 Group Purchasing WA 11497185 7772247 VMMC Puget Sound High Value Network LLC 1100 Ninth Avenue Seattle WA 98101 472840780 Medical Network WA 28928 VMMC Virginia Mason Health System 1100 Ninth Avenue Seattle WA 98101 911351110 Fundraising WA 501c3 7 N/A true Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 Education/Research WA 501c3 10 VMMC true Benaroya Research Institute at Virginia Mason 1201 Ninth Avenue Seattle WA 98101 910653422 Research WA 501c3 4 VMHS false Yakima Valley Memorial Hospital Association 2811 Tieton Drive Yakima WA 98902 910567263 Health Care WA 501c3 3 VMHS false National Purchasing Partners LLC 1100 Olive Way Seattle WA 98101 203470995 Group Purchasing WA N/A Unrelated 14895122 7158593 false 14901250 true 0.50000 false true true false false false false false false true true false false false true true true false false Virginia Mason Medical Center 1100 Ninth Avenue Seattle WA 98101 910565539 X 133386 48767 182153 1029259580 1029441733 648719 162180 0 0 0 Virginia Mason Institute 1100 Ninth Avenue Seattle WA 98101 263763656 0 0 0 7028082 7028082 4429 1107 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 1200 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